BusinessDay 28 Mar 2018

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NEWS YOU CAN TRUST I **WEDNESDAY 28 MARCH 2018 I VOL. 15, NO 20 I N300 @ g 

Milost’s Equity Subscription Agreement 

puts SEC’s oversight in spotlight 

Tenure elongation 

for Oyegun, others 

illegal – Buhari 

INNOCENT ODOH, Abuja 

IHEANYI NWACHUKWU & 

LOLADE AKINMURELE 

Nigeria’s apex capital 

markets regulator 

needs to wake up 

to its responsibility 

following what 

appears a classic “pump and 

dump” strategy initiated in the 

stock market by Milost Global 

Inc, various analysts Business- 

Day spoke to say. 

Securities and Exchange 

Commission (SEC) has as part 

of its roles to protect investors, 

particularly the retail investors 

who have been reeling from the 

activities of the purported USbased 

private equity firm. 

Though, SEC said it is monitoring 

developments and investigating 

affected parties which 

will be followed by sanctions, 

industry players are worried by 

the regulator’s docile reaction. 

“The buck stops with the SEC 

but it looks as though they are 

not playing their role and are not 

asking the right questions about 

Milost,” a source familiar with 

the matter said. 

“The statement issued by 

Milost explaining the MESA is 

fraught with factual inconsistencies 

and rather than provide 

L-R: Uaboi Agbebaku, company secretary/legal adviser, Nigerian Breweries plc; Kufre Ekanem, corporate affairs 

adviser, Nigerian Breweries plc; Tinuade Awe, executive director, regulation, The Nigerian Stock Exchange; Jordi 

Borrut Bel, managing director, Nigerian Breweries plc; Grace Omo-Lamai, human resources director, Nigerian 

Breweries plc; Franco Maria Maggi, marketing director, Nigerian Breweries plc, and Tony Ibeziakor, acting divisional 

head, listing business, The Nigerian Stock Exchange, when Borrut Bel beats the closing gong on the 

floor the Exchange in Lagos, yesterday. 

clarity of how it works, confused 

me the more,” the source said of 

Milost’s signature investment 

strategy in the Nigerian companies 

it has showed interest in, a 

scheme called the “Milost Equity 

Subscription Agreement.” 

The MESA instrument is 

aimed at funding “undervalued 

publicly quoted companies all 

Continues on page 4 

President Muhammadu 

Buhari, has declared that 

the one- year tenure elongation 

granted by the National 

Executive Committee (NEC) 


Atiku flags off presidential election 

‘consultations’ in Port Harcourt 

... Says APC has destroyed Nigeria 

IGNATIUS CHUKWU 

Former vice president, 

Abubakar Atiku, who 

fled the All Progressives 

Congress (APC) few 

months ago, has opened up on 

his ex-party, accusing the ruling 

party of destroying Nigeria. 

Atiku, who flagged off what he 

called ‘consultation’ in the Government 

House in Port Harcourt 

before Gov Nyesom Wike and 

national PDP boss, Uche Secondus, 

said he is offering himself 

to set the country on the path of 

growth after what he called the 

serial failure of the APC. 

He said that since 2015, the 

APC Federal Government has 

destroyed the education, health 


Inside 

Bayelsa, Century 

Group partner 

for OML 46 oil/gas 

development P. 4 

UBA expands London presence as UK subsidiary 

gets wholesale banking licence P. 37

Wednesday 28 March 2018 

2 BUSINESS DAY


BUSINESS DAY 

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NEWS 

10,000 applications flood Innoson Motors’ 

job recruitment exercise in 24 hours 

... Local automaker shuts job website over surge 

MIKE OCHONMA 

An estimated 10,000 

applications was received 

less than 24 

hours by Innoson 

Vehicle Manufacturers 

(IVM) following an announcement 

by the local assembler 

to employ 3000 Nigerians by 

the end of the year. 

The astronomical surge in the 

number of applications received 

by the local auto maker forced 

the management to abruptly shut 

down the job recruitment exercise 

official website which was 

supposed to be open to prospective 

job seekers till April 6, 2018. 

Innoson had in a statement 

on its official Twitter handle last 

Monday said the board of directors 

of Innoson Vehicle Manufacturing 

Company Limited approved 

the recruitment exercise 

as it plans the expansion of its 

factory in Nnewi, the second 

largest city in Anambra state. 

Cornel Osigwe, Head Corporate 

Communications, Innoson 

group, said during a telephone 

chat with BusinessDay on Tues- 

day disclosed that that the first 

batch of new intake will see the 

employment of 1007 workers in 

April 2018. 

The company listed positions 

needed as follows welding 

engineers, automotive painters, 

plasterers and auto electricians. 

Other job vacancies exist for 

mechanical engineers, administration, 

account and public relations 

and quality control officers 

including marketing executives. 

According to the image maker 

of Innoson group, in order to 

contribute towards the success 

of Nigeria’s automotive industrial 

development agenda, the 

company has also acquired 

100,000 square meters of land on 

the outskirts of Owerri, the Imo 

State capital near the airport. 

He stated that as part of it 

expansion drive which will facilitate 

the creation of thousands 

of skilled and unskilled jobs in 

the state and its environs, the 

Innoson auto assembly plant in 

Owerri will have the capacity to 

assemble 60,000 vehicles a year. 

In an email sent to our reporter 

on Tuesday, Luqman 

Mamudu, retired director in 

charge of policy and planning 

said that the automotive policy 

was designed to anticipate such 

expansion and a program for 

support is inbuilt in the relationship 

between NADDC and BOI. 

According to him, “There is no 

better evidence than this that the 

Nigerian automotive program is 

working. Innoson has enjoyed 

considerable patronage as it continuously 

improves on quality. This 

employment is one of the automotive 

program objectives. The good 

thing is that innoson operates at 

the CKD level. Others plants are 

poised to follow. The industry will 

experience upsurge in demand 

by the time the automotive credit 

purchase scheme is realized.’’ 

Recall that early this year, the 

Nigerian Army went into partnership 

with IVM to conceptualize, 

design, modify and produce 

armoured fighting vehicles and 

other military hardware. 

At a meeting between Tukur 

Buratai, the chief of army 

staff, and Innocent Chukwuma, 

chairman and chief executive of 

Innoson Vehicles Manufactur- 

ing Company Limited, the army 

chief said that the essence of the 

meeting was to further formalize 

the business relationship 

between the Nigerian Army and 

IVM. The Army acquired over 

70 more variants of the Innoson 

vehicles which were deployed 

in the North East for Operation 

Lafiya Dole. 

Other specific areas of partnership 

between the Nigerian 

Army and the company include; 

immediate supply 100 vehicles, 

supply of appropriate gears, 

engines and chassis required for 

immediate modifications and 

repairs of armoured fighting vehicles 

in the North East Theatre 

of Operations. 

In 2016, Innoson signed a 

Memorandum of Understanding 

(MoU) with the Nigerian Air 

Force for the development and 

promotion of joint activities to 

sustain the maintenance of the 

Nigerian Air Force Air Assets 

and other associated Aerospace 

Ground Equipment (AGE) to 

enable the Nigerian Air Force to 

continuously carry out its constitutional 

obligations to the nation. 

Bayelsa, Century Group 

partner for OML 46 oil/ 

gas development 

DIPO OLADEHINDE 

The Bayelsa State Government 

as a key stakeholder 

in the oil and gas industry 

has made giant strides to effectively 

and efficiently harness her 

interest in a thousand ways, most 

notably through its oil company 

(Bayelsa Oil Company Limited) 

and its partners in OML 46 Atala 

field. 

The field was discovered, 

drilled, cased but not completed 

in 1982 by Shell Petroleum Development 

Company (SPDC). 

In 2004, it was farmed-out to 

the Bayelsa State Government 

and operated by the Bayelsa State 

Oil and Gas Company. 

This field was dormant for 

over a decade as the Bayelsa 

State Oil Company sought out 

adept ways to fund, develop and 

produce the asset. 

This challenge was not peculiar 

to the Bayelsa State Oil Company 

as she was among a league 

of State owned Oil companies 

that had been unable to develop 

fields they farmed into. 

In the turn of the year 2018, 

its fortunes changed as it along 

with her funding and technical 

partner- Century Exploration 

and Production Limited (CEPL) 

successfully defied the paradigm 

and false belief in the Nigerian 


Milost’s Equity Subscription Agreement puts... 

Continued from page 1 

around the world and is a hybrid 

of debt and equity,” Milost said in a 

statement Monday. 

BusinessDay was made to understand 

that Milost gives a company 

cash in exchange for equity 

at a 50 percent premium to the 

market price of the stock. Milost 

then agrees with the company that 

if the share price drops below the 

50 percent premium, the latter is 

liable to pay the price difference 

to Milost. 

Confusingly, the company is 

not required to pay cash but issue 

more equity to Milost. 

The company will also pay 

Milost 10% – 20% discount to the 

5-days Volume Weighted Average 

Price (VWAP) as a penalty. 

An email to Milost seeking better 

clarification about MESA went 

unanswered. A BusinessDay reporter 

currently in New York called 

Milosts listed phone number three 

times to request an appointment . 

Each time, a lady picked the call 

and said she was connecting BusinessDay 

with someone to talk to. 

But as soon as she connects, the 

phone keeps ringing then goes into 

a voice mail. 

BusinessDay also made enquiries 

from two different people in New 

York, one who works in a big private 

equity firm and another, a journalist 

who reports for a leading business 

news platform, none of them was 

aware of Milost Global Inc., which 

says it is headquartered in New 

York and has more than $25 billion 

in committed capital, according to 

information from its website. 

“It looks like a classic Pump and 

Dump, whereby the owners of the 

shares to be sold to Milost pump 

the share price of the stock and 

when it rallies they split the gains 

with Milost,” one source said on 

condition of anonymity. 

“That’s why they are going for 

penny stocks and avoiding blue 

chip stocks with liquidity that is 

difficult to pump,” the source said. 

According to Milost, the cash 

given to the company as equity 

can only be used as working capital 

while debt can only be used to 

acquire cash-generating assets. 

Milost called MESA “the Messiah of 

growth and the impartial arbiter of 

stock and value disparities.” 

According to Mandla J. Gwadiso, 

also known as MJ, who founded 

Milost Global Incorporated in 2015 

and serves as its Managing Partner, 

the idea behind MESA is that they 

help a company cash in on its intrinsic 

value rather than its market 

value, assuming that the former is 

higher than the latter. 

For example, a company’s stock 

can be trading at N5 per share even 

though the company may believe it 

is actually worth N7. They will then 

issue equity at the price of the N7 

instead of N5, hoping that this will 

eventually get the market to price 

it at its intrinsic value. 

“We do not know for sure how 

this instrument will work in Nigeria 

especially for companies with 

significant minority shareholdings,” 

one analyst familiar with the 

matter said. 

“Does the Nigerian investment 

law also allow for an equity 

holder of a quoted company to 

get compensation for loss of value 

of the stock at the expense of other 

shareholders? Also, will the shares 

issued to Milost come from the 

unauthorized share capital or will 

L-R: Tola Osinubi, executive director, FCMB Capital Market; Bola Onadele. Koko, MD/CEO, FMDQ OTC Security 

Exchange; Godwin Ehigiamusoe, MD, LAPO Microfinance Bank, and Jude Chiemeka, MD, United Capital 

Securities Limited, at the official bond listing ceremony when LAPO MfB became the first microfinance bank in 

Nigeria to raise a Bond at the Capital Market in Lagos. 

Pic by Olawale Amoo 

it come from existing shares?” the 

analysts asked further. 

Milost Global has taken the 

investing community off-guard 

with its announcement that it intends 

to invest billions of naira in 

companies that had been either 

left for dead or close to being dead. 

Critics question their investment 

capabilities and question 

the ingenuity of their claims to 

invest close to $2 billion in Nigerian 

companies from Japaul oil services 

to Resort Savings and loans. 

Japaul seems to be regaining 

some grounds after sliding last 

week on the back of media reports 

questioning the ingenuity of the 

Milost deal. 

Japaul’s share price rose 2.9 

percent to 70 kobo on Tuesday, 

according to Bloomberg data, 

lifted by trading volumes of 80.28 

million. 

Meanwhile, Unity bank- reported 

to have been in talks with 

Milost over some $1bn potential 

financing- has refuted claims by 

the PE firm that it agreed to delist 

in Nigeria to have its stock traded 

in the U.S. 

“No,” a unity bank source told 

BusinessDay when asked if the 

bank planned a delisting on the 

NSE. “They were putting pressure 

on us to sign the MESA but we resisted 

and never signed any agreement 

whatsoever,” the source said 

on condition of anonymity, unable 

to speak publicly. 

“We are a regulated company 

and only had tentative discussions 

with Milost as we did with other 

investors amid a hunt for capital,” 

the source said. 

Unity bank’s share price fell 4.44 

percent to N1.29 on Tuesday, according 

to Bloomberg data.


BUSINESS DAY 

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Leadership 

BUSINESS DAY 

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SHAPING PEOPLE INTO A TEAM 

The two-time Oscar Winner and former fitness 

guru on what led her from acting to activism 

Born to a famous father and a mother who took her own life, Fonda overcame a tough childhood to find success as an actress and then greater purpose as an activist. She won two 

Oscars in the 1970s, became a fitness Guru in the 1980s, focused on nonprofit work in the 1990s and has since 2005 returned to acting, most recently in “Grace and Frankie.” 

Early in your life you studied 

at a school founded 

by Emma Willard, a women’s 

rights advocate. Did 

that early experience, and 

Mrs. Willard’s example, help shape 

your life? 

Being at an all-girls high school for four 

years — a school that had very high 

academic standards and wonderful 

teachers — was an important thing for 

me. I think it really helped me at a difficult 

time in life. 

Did the Fonda name help or hinder 

you early on? 

My first 10 years were spent in California, 

going to school with other children 

who had parents in the entertainment 

business: producers, directors, heads 

of studio, cinematographers. So the fact 

that my father was an actor was something 

I never even thought about. It was 

normal, and nobody paid attention. 

When I was 10, we moved to the East 

Coast, and suddenly I realized, because 

of how I was treated, that there was 

something special about me. It made 

me a little self-conscious. Some people 

wanted to be my friend because my 

father was Henry Fonda; some people 

didn’t like me because my father was 

Henry Fonda. There was both good and 

bad. When I became an actress, the fact 

that my father was a movie star was an 

advantage — no question — because 

people paid more attention to me than 

they would have if I were just another 

actress. Also, internally, I wanted to be 

sure that I wasn’t getting parts because 

I was Henry Fonda’s daughter, so I 

worked harder. Instead of taking one 

class a week, I would take four, so no 

one could say I was a dilettante. But then 

because of roles I’d had, I was put into a 

slot: nice girl next door. When I had the 

chance to go to France to make a movie 

with René Clément and get away from 

the shadow of my father, I jumped at it. 

Why did you choose acting and 

then activism? 

I became an actress because I didn’t 

know what else to do! I was fired as 

a secretary; Lee Strasberg [the acting 

coach] told me I was talented; and I 

had to earn a living. That was the way I 

thought about it: It was a job. The activism 

wasn’t until I was 30. There was 

a lot going on in the world and I was 

pregnant, which makes a woman like 

a sponge, very open to what’s going on 

around her. It was around that time that I 

began to realize that I wanted to change 

my life and participate in trying to end 

the war. I lived in France, I was married 

to Roger Vadim, I had a young daughter, 

and I left it all and went to America to 

become an activist. 

Did you face sexism in your career? 

Well, I wasn’t paid as much as my 

male co-stars. I felt very judged by how 

I looked, and it made me extremely 

uncomfortable for a long time. We’re 

talking about the late 1950s and early 

1960s, and at that time objectification 

and sexism were all around you in the 

movie business. There wasn’t a sense 

that you could do anything about it. It 

was just life. There were directors who 

tried to have sex with me before they 

would give me a job, but I would just 

laugh. It wasn’t until later, with the rise 

of the women’s movement in America, 

that this began to change. 

How did you choose projects 

through your career? 

At first I was just grateful to get offers. 

I had very little confidence in myself. 

c 

I came up at the same time as Warren 

Beatty, and I remember him going 

to Hollywood saying, “These are the 

only directors I will work with.” And 

I thought, I would never do that. I’m 

lucky if anybody wants to work with 

me. The word “no” was not really part 

of my vocabulary. It took me 60 years to 

realize that “no” is a complete sentence. 

But for a long time I had no agency, no 

volition; if someone offered me a role, I 

took it. I wasn’t very happy in my career 

because of that. When I was about 33 — 

and very much an activist — I decided 

I was going to leave the business. I told 

a friend, Ken Cockrel, a black lawyer in 

Detroit, where I was learning to organize 

with the United Auto Workers, “I think 

I’m going to quit Hollywood. I don’t 

like the parts I’m being offered, and I 

want to become a full-time organizer.” 

He said, “Don’t! Stop right there! The 

movement has plenty of organizers but 

no movie stars. You have to keep acting 

and to pay more attention to your 

career; the movement needs you to 

do that.” That’s when I decided to start 

making my own movies — the first was 

“Coming Home” — and really began to 

find joy in my work. 

During tough times, how do you 

practice resilience? 

I believe you either are resilient or you 

aren’t; it’s something you’re born with. 

During my childhood, I could have gone 

down a dark hole, but my resilience 

was like radar constantly scanning 

the horizon, picking up on heat from 

anybody who could give me love or 

teach me something. Resilient people 

can turn their wounds into swords 

and plowshares. They can become the 

strongest and most powerful warriors 

for good. God comes to us through our 

scars and our wounds, not our awards 

and our acclamations. This is a broad 

generalization, but in my experience, 

women tend to be more resilient and 

men more fragile. 

War often stems from fragility ... 

Globally, in the current culture, maleness 

is not toxic, but the social manifestation 

of maleness we call “masculinity” 

is toxic. Unless we can change this, 

we’re not going to survive as a species. 

This is not bombast or rhetoric. This 

is real. It’s the reason why the earth is 

being destroyed. It’s not that men are 

inherently evil; it’s that they have to constantly 

prove themselves. I first realized 

it when the Pentagon Papers came out, 

and later, with Doris Kearns Goodwin’s 

biography of Lyndon Johnson: One of 

the reasons the Vietnam War was prolonged, 

even when presidents and their 

advisers knew we could not win it, was 

because the men felt they would lose 

their masculinity if they pulled out. That 

just hit me, and I have never forgotten it. 

I jokingly call it “premature evacuation.” 

This is the problem. 

Which actors do you most admire? 

There is a group of actresses that I think 

are at the very top of brilliance: Meryl 

Streep, Annette Bening, Nicole Kidman. 

There are lots of others, but those are the 

ones I bow down to for their capacity 

to embody the human being they are 

portraying. It’s no longer acting. They 

become the person. 

That’s what Lee Strasberg taught ... 

Well, so did lots! Sandy Meisner, Uta Hagen, 

Stella Adler, there were — and still 

are — a lot of teachers who, in various 

ways, help the actor learn a technique 

to make it possible to enter someone 

else’s reality. 

Which character among the many 

you’ve played are you proudest of? 

I think Bree Daniels, in “Klute,” but 

also Gertie Nevels, in “The Dollmaker,” 

for which I won an Emmy. She was a 

hillbilly. She was as different from me 

as a human being can be. And I worked 

really hard to enter her reality. I’m very, 

very proud of that, as well as “Klute.” 

Tell me about the two organizations 

you launched: the Women’s Media 

Center and the Georgia Campaign 

for Adolescent Power & Potential. 

I co-founded the Women’s Media Center 

to help amplify women’s voices in 

the media. Movies, magazines, books, 

television and poetry help create our 

2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate 

consciousness, our awareness of who 

we are. When one part of humanity’s 

voice is missing, when women’s voices 

are stifled or inaudible, everyone suffers. 

How can we understand the world in 

which we live — what is wrong with it, 

what is right with it, how we can make it 

better — if we don’t hear the entire story? 

Women see things differently than 

men. Things affect us differently. War, 

famine, bankruptcy, health — there 

are so many things women respond to 

differently, and if our voices are missing, 

it’s a huge gap. When you go into a dark 

movie theater and look at a huge LED 

screen but you’re missing from that 

screen — you never see yourself, your 

story, your concerns, your beliefs — 

you feel diminished, you become less. 

So that’s why we feel it’s important to 

try to change that, and there are many 

efforts to do that in the United States 

now. I started the Georgia Campaign 

for Adolescent Power & Potential in 

1995. As we know now, adolescence is 

a distinct developmental stage of life, 

and very critical to who you become 

later as an adult. We work with both boys 

and girls now; it’s important that they 

have a full understanding of how their 

body works, of how they can protect it 

from diseases and harm. They must be 

aware that they have the right to stand 

up to protect their body. Attitudes about 

sexuality, sensuality and relationships 

are often confused because the United 

States is still a Puritan country in many 

ways. For example, we look at adolescent 

pregnancy from a moral point of 

view instead of a “health” point of view, 

which is terrible. 

What’s one thing you want to do 

that you have not done yet? 

I would like to build myself a small cabin 

that is totally off the grid. I would like to 

have chickens — I love chickens — and 

rabbits, and my dogs, and silence. I 

would like it to be high on a mountain, 

with trees. And, though I don’t think I’m 

skilled enough as a writer, I would like to 

write a book — my last one — that would 

make a difference. 

(Gabriel Joseph-Dezaize is the editor 

in chief of Harvard Business Review 

France.)



C002D5556 

COMMENT 

SMALL BUSINESS HANDBOOK 

EMEKA OSUJI 

Dr Emeka Osuji 

School of Management and 

Social Sciences 

Pan Atlantic University 

Lagos. eosuji@pau.edu.ng @Emyosuji 

It is no longer an issue for debate 

that majority of Nigerians are not 

part of the economic prosperity of 

their country. That is a sad reality 

of our time. Despite the massive 

growth, consistently recorded over several 

years, a lot of people are standing on 

the side-lines and listening to the sweet 

and dizzying story of economic growth in 

their country. They hardly feel the fruits 

of growth. Growth without development 

(that’s what it is) happens often, especially 

in economies driven by enclave 

sectors like oil, and when the people are 

not the central issue in governance. An 

inclusive society is one that promotes 

citizen’s participation in its economic, 

financial and political-social activities. 

Such a society offers adequate opportunities 

to all citizens to produce and share 

in the national cake. An inclusive society 

is economically democratized. 

Another reality of our society is that 

over 40 million Nigerians have nothing to 

do with the banks.They have no access to 

the services of banks. They are said to be 

excluded from the financial system. And 

these two features of our system are not 

discoveries or new developments that 

just happened. They have been with us 

for a long while. Therefore, those in PDP 

have no reason to gloat at the facts, and 

Poverty reduction in war zones 

yields suboptimal results 

those on the driving seat at the moment, 

the APC, need not worry, when these 

points are made. It is not for the good 

of the opposition nor a point against 

the incumbent. This has been the reality 

of the Nigerian condition for decades, 

albeit progressively deteriorating from 

one administration to the other. Progressive 

immiseration of the people is a 

natural consequence of doing the same 

wrong thing every time, and refusing or 

failing to see the error. 

As I have said elsewhere in this 

column, what political leaders do in 

Nigeria is to push the can. Nobody really 

picks it up to see what is inside that 

is creating so much problem, and then 

decisively try to resolve it. Or how does 

one explain the fact that power outages, 

which are a Taboo in Ghana, is normal 

in Africa’s largest economy? Is it because 

two past leaders of Ghana (Prime Minister 

Dr K.A. Busia and President John 

Kufour were all students at prestigious 

Oxford University in England where 

power outage is an exception while 

those of Nigeria and those of Nigeria 

studies with lanterns. In Nigeria, politicians 

only heckle those in power out 

of office and once they get into power, 

their standard of performance becomes 

the failuresof the administration they replaced. 

And this is not an APC creation. 

From the time of Muritala Mohammed 

the trend has been to demonise those in 

power, get them out and point to their 

non-performance as a benchmark for 

your own failure.They should not be 

queried about anything they failed to do 

as long as the deposed administration 

didn’t do it better. 

When we discovered that the military 

did not mean well for Nigeria, the 

term looting the treasury was coined to 

The challenge now is that 

it is difficult to talk about 

poverty alleviation as the 

country is engaged in a war 

that regularly turns out large 

number of destitutes 

characterize what they were doing with 

public revenue. They had fallen into the 

same sins for which they seized power 

by force. So we chased them out and 

installed civilian regimes that ended up 

more profligate and corrupt than the 

military. Since then, irrespective of tribe 

and tongue, Nigerians have been worse 

for it. The reasons are simple. First it is the 

same people we chase out of one administration 

that constitute the sole of the next 

because there is no ideological boundaries 

in Nigerian politics. Second, we have a 

political structure that swallows anything 

good; anything honourable, and vomits 

the dregs of the earth. Hence, many Nigerians, 

especially in the rural areas, pass 

through this life without anything good to 

say about their citizenship – a phenomenon 

they never understood, having had 

no real contact with government and the 

benefits of surrendering their collective 

sovereignty to the state. 

These economically excluded Nigerians 

are at best, observers of the prosperity 

of their country having been structured to 

the periphery of the economic goings on. 

At worst they are poor, sick, and ignorant; 

and probably all of those combined in 

Africa’s richest country. They are the ones 

often haunted by the establishment, for 

one non-existent crime or the other. They 

are also the ones, who, as passengers of the 

Land Use Act at 40: Time for abrogation 

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ubiquitous okada rides all over town, are 

frequently fatally knocked down or badly 

wounded in the numerous city ride accidents 

we witness. And if that fails and they 

escape accidents, they are molested and 

randomly shot for refusing to pay N20 to 

the police at illegal checkpoints. They are 

also the ones that are regularly arrested 

and their wares confiscated by urban 

renewal and environmental sanitation 

marshals of governments that failed to 

provide for their well-being, in the first 

instance, but turn round to wonder why 

they engage is survivalist activates, like 

street trading. These are the excluded 

citizens, in whose interest government 

has established microfinance banking 

system which operators have sadly 

turned to microcommercial banking- doing 

the same old wrong things that made 

the banks fail. 

Nigeria has an adult population 

of over 96.4 million of which about 60 

million live in the rural areas. About 23 

million of these adults have no formal 

education and mostly dependent on 

subsistent businesses and farming. A 

large proportion of the people operate 

in the informal sector having little or no 

dealings with formal sector institutions, 

such as banks and insurance companies. 

Our inherited colonial past compels certain 

attributes for beneficial interaction in 

the formal sector, including some level of 

education. This has been one of the push 

factors driving the people away from the 

banks, insurance companies and other 

nonbank financial intermediaries. Accordingly, 

the ranks of those financially 

excluded remains very high despite fairly 

extensive efforts of government at improving 

the situation. 

At 41.6 per cent, financial exclusion 

Nigeria is lagging behind Rwanda at 11 

per cent, South Africa at 13 per cent, 

Ghana at 25 per cent and Kenya at 17 

per cent. In like manner, the number of 

Nigerians living in poverty has continued 

to rise. From 17.1million in 1980, 

the number had risen to 112.5million 

in 2010, according to the survey carried 

out by the National Bureau of Statistics. 

It was in reaction to the continued slide 

into poverty of a large part of the Nigerian 

population that government in 2005 

introduced the policy on microfinance 

as a poverty reduction strategy. It has 

since followed this up with the creation 

of several financial facilities targeted at 

the informal sector and the introduction 

of some legislation innovations to drive 

the process. A collateral Registry is now 

available to facilitate the use of movable 

assets as collateral for loans. Great efforts! 

The challenge now is that it is difficult 

to talk about poverty alleviation as the 

country is engaged in a war that regularly 

turns out large numbers of destitutes. It 

has also become very difficult to evaluate 

the success of such programmes as 

many countervailing forces continue to 

work against our poverty reductionefforts. 

Some have even suggested that it 

is no use talking about poverty reduction 

in this state of war. Boko Haram attacks, 

which have been complemented by 

the Fulaniherdsmendestroying farms 

and farming villages, makes a mess of 

our poverty reduction efforts.The war 

breeds destitution in geometric progression 

while we curb poverty in arithmetic 

progression. We must end the killing of 

innocent Nigerians if we are to reduce 

economic exclusion in Nigeria. 

Send reactions to: 

comment@businessdayonline.com 

CHUDI UBOSI 

Ubosi is Principal Partner, Ubosi Eleh+ Co, 

(A firm of Estate Surveyors & Valuers) 

Forty years ago, (precisely March 

29, 1978) a tipping point was 

reached in how land was 

thenceforth to be owned and 

administered in both urban and nonurban 

areas in Nigeria. The Land Use 

Decree (now Act) of 1978 came into 

being. 

Consequent to this Act, “all land 

comprised in the territory of each State 

in the Federation is hereby vested in 

the Governor of the State and such land 

shall be held in trust and administered 

for the use and common benefit of all 

Nigerians in accordance with the provisions 

of this Act” the opening paragraph 

of the Act reads - Section 1 (i) 

Land, worldwide is a critical factor 

of existence & production making its 

ownership, allocation, distribution and 

utilization critical issues in the creation 

of wealth, social and economic wellbeing 

for both individuals and societies 

and in effect, making it a subject matter 

that cannot be overlooked. 

Among key objectives of the Act 

were to remove the bitter controversies 

that arose over title to land, to assist the 

citizenry, irrespective of status to realise 

the ambition and aspiration of owning 

land within the country, to assist the 

government in the exercise of power of 

eminent domain or power to compulsorily 

acquire land for public purposes. 

The Act also intended to curtail the 

activities of speculators over land. 

Forty years afterwards, can it be said 

that the Act has achieved its objectives? 

The continuous numerous calls from 

many quarters to amend the Act with 

plausible arguments that it has apparently 

failed in its objectives is an 

indicator as to the success or otherwise 

of the Act. In fact, one of the sevenpoint 

agenda of late President Umaru 

Yar’adua’s short-lived government was 

an amendment of the Land Use Act. 

It is worth showing how the Act 

has failed in its objectives and made 

land ownership and title transfer even 

tougher. For starters, bitter controversies 

and conflicts still arise or exist 

over title to land; the Act has definitely 

not made it any easier for citizens to 

own land. 

Sections 21 - 22 of the Act prohibits 

the alienation of either a customary 

right of occupancy or a statutory right 

of occupancy via an assignment, mortgage, 

transfer of possession, sublease, 

or otherwise without the consent of the 

Governor. The above stated provisions 

have resulted in a plethora of issues 

relating to transfer of property transactions. 

Coupled with this is the confusing 

provision that the Consent of the 

Governor should be obtained before 

the transaction is consummated. 

Firstly, the process of obtaining 

the Governor’s consent is expensive. 

Many States have seen it primarily as a 

revenue generating activity and so the 

total cost of that exercise is sometimes 

as high as 15 percent of the deemed 

value of the subject property. 

Further, even though there have 

been improvements to the process in 

some States, it still takes a long time to 

obtain the consent, which significantly 

delays the completion of land related 

transactions. 

Additionally, the requirement to 

seek the Governor’s consent for mortgage 

transactions has also proved to be 

an impediment in the introduction of 

financial tools such as mortgage backed 

securitisation, which requires an element 

of certainty in terms of the rights to the 

underlying securities in the mortgages 

to be securitised. 

As a result of the above stated issues, 

amendments have been proposed to 

alleviate the burdens currently faced by 

investors in the real estate market and to 

provide property investment incentives 

but not much has been achieved in this 

regard. 

According to a survey carried out in 

2012, the second greatest challenge facing 

22% of Nigerians that wanted to invest 

in real estate was reported to be the difficulty 

in obtaining titles. This is followed 

by 18% that cite cost and time involved 

in regularizing real estate transactions. 

This lack of understanding of the laws 

and procedures surrounding real estate 

and real estate transactions is borne 

primarily out of the poor workability of 

the Land Use Act. 

Data from the World Banks Ease of 

Doing Business 2017, indicate that regarding 

property registration in Nigeria, 

it takes an average of 77 days to achieve. 

59.7 days in sub-Saharan Africa and 22.4 

days in high income Organization for 

Economic Cooperation and Development 

(OECD) countries. Registering 

properties in sub-Saharan Africa in general 

and Nigeria in particular is evidently 

tough as demonstrated by the Report. 

At an average of 10.10%, Nigeria is 

among sub-Saharan Africa countries 

with the highest cost of registration as a 

percentage of property value. The average 

in sub-Saharan Africa is 8.00% and 

4.20% in high income OECD countries. 

A quick scan of the report further 

reveals that property registration in some 

select countries - Nigeria ranked 182 out 

of 190 in 2016 and 182 in 2017, which 

shows there has been no appreciable 

improvement in the ease of registering 

properties in Africa’s most populous 

nation. 

Still on property registration, in 

2016, Kenya ranked 122 of 190, China 

42, South Africa 100, Ghana 76, India 

140, and Brazil 130. In 2017, Kenya 

moved a step up to 121, China stayed 

same at 42, South Africa went southwards 

to 105, Ghana came down to 77, 

India improved by two places to 138 

and Brazil also improved by two places 

to 128. A cursory study indicates how 

much work needs to done to improve 

and make the regulatory framework 

conducive for registering property. 

Yet, this is a country, based on 

United Nations data, has a housing 

deficit of over 17 million units. To bridge 

this shortfall, 900,000 units must be 

added to the housing stock annually. 

But based on available data (National 

Bureau of Statistics) less than 100,000 

are supplied. 

The true and committed resolution 

of these issues must start with amendments 

to the Land Use Act. Section 15 

of the Act provides that during the term 

of a Statutory Right of Occupancy, the 

holder shall have the sole right to and 

absolute possession of all the improvements 

on the land. Such right and possession 

only relates to improvements 

that the holder still cannot transfer, 

assign or mortgage without the prior 

consent of the Governor or would lose 

if in breach of terms and conditions of 

the Certificate of Occupancy. 

Again, this clearly creates a problem 

of security of title because though it 

is conventional in Nigeria to grant a 

Certificate of Occupancy for a period 

of ninety-nine years. There is nothing 

in the Act that prevents the Governor 

from granting an interest of a lesser 

period. Section 8 of the Act only enjoins 

the Governor to grant a right of 

occupancy for a definite or fixed term. 

Where the right covers a short term then 

it amounts to economic risk to embark 

on massive improvements because of 

the atmosphere of uncertainty induced 

by the Section 16. 

The Act has equally failed to curtail 

the activities of land speculators, as 

one of its objectives. Large tracts of undeveloped 

lands are still not under the 

control of the Governors of the States 

and land speculators are cashing in on 

this seeming lapse by holding down 

vast lands out of use until such a time 

as it would be very profitable to dispose 

on the market - a practice that hampers 

development in diverse ways. 

Ruling family members in many 

communities (popularly called omo 

oniles) who control large traditional 

lands engage in land profiteering. They 

also create undue conflicts that result 

in costly land litigations and in many 

cases, physical clashes leading to deaths 

and sacking of villages. This a situation 

the Act was meant to curtail but has not 

helped in any way. The result is that the 

cost of land continues to rise astronomically 

and land speculation has become 

even more rife. 

Concurrently, the harsh economic 

climate in the country with rising cost 

of living has put Nigerians in dire straits 

such that many who have access to 

land whether by inheritance, previous 

purchase, or by family or communal allotments 

and are more readily inclined 

to disposing them to meet immediate 

survival needs cannot easily do so because 

of lack of access to title. Though 

the land belongs to them they still have 

to approach the Governor of the State 

in which their land is situated to obtain 

title to facilitate a sale. 

To be continued. 


comment@businessdayonline.com


COMMENT 

C002D5556 

BUSINESS DAY 11 

comment is free 

Send 800word comments to comment@businessdayonline.com 

Strengthening the financial sector through regulation 

UCHE UWALEKE 

Uche Uwaleke is the Head of 

Banking & Finance department at 

Nasarawa State University Keffi 

Reporting on the Finance 

and Insurance Sector 

(dominated by Financial 

Institutions) in its 

latest Gross Domestic 

Product figures with respect to 

Q4 and full year 2017, the National 

Bureau of Statistics noted 

that ‘’Financial authorities face a 

number of key challenges, including 

maintaining financial stability; 

ensuring long-term finance for stable 

economic growth; promoting 

greater access to financial services 

for both households and small 

and medium-sized enterprises 

(SMEs); and fostering a competitive 

financial industry. Striking the 

appropriate balance in achieving 

these objectives through financial 

supervision and regulation is an 

important policy issue for financial 

regulators’’. The NBS was stating 

the obvious. Indeed, the financial 

crisis that took the world by 

storm over the course of 2008 had 

several causes. But many agree 

that the chief culprit was deficient 

regulation of the financial system, 

coupled with fraud and a failure of 

market discipline. 

Going by recent developments, 

traces of these challenges have 

persisted in the Nigerian financial 

sector. Reports say the latest offsite 

supervision of Deposit Money 

Banks by the Nigeria Deposit Insurance 

Corporation revealed an 

increase in fraud cases from 231 

in 2016 to 320 in 2017 attributable 

to weak internal controls and corporate 

governance in many of the 

banks. The issue of weak corporate 

governance in the banking industry 

equally came to the fore not 

too long ago with the disclosure by 

the Governor of the Central Bank 

of Nigeria, Godwin Emefiele, that 

corporate governance practices 

in the industry left much to be 

desired, a development that is 

capable of undermining financial 

stability by heightening vulnerability 

of financial institutions to 

external shocks. 

Speaking during the CBN- 

Financial Institutions Training 

Centre Continuous Education 

Programme for Directors of Banks 

and Other Financial Institutions 

sometime last year, Emefiele noted 

that “the financial industry still 

harbours weaknesses in governance, 

exemplified by instances 

of unclear rendition of returns, 

corporate governance abuses, 

such as unreported losses, huge 

exit packages for directors, insider 

non-performing loans, over-domineering 

executive management, 

contravention of regulatory/prudential 

guidelines and lending 

limits, poorly appraised credits 

and weakening of shareholders”. 

This, he blamed, on the failure of 

banks’ boards in carrying out their 

oversight functions. 

These revelations by the CBN 

Governor only point to the fact 

that the Corporate Governance 

That said, it bears repeating 

that a key objective of financial 

regulation is to increase 

the effective functioning 

of the financial system in 

order to maintain financial 

stability which is in sync with 

macroeconomic stability 

Code for Banks and Discount Houses 

issued by the CBN in October 

2014 has been observed more 

in the breach. Little wonder the 

industry is characterised by high 

non-performing loans in excess 

of the regulatory threshold of five 

per cent with some of the DMBs 

reported to be operating at lower 

than the minimum liquidity requirement. 

To buttress this, the result of a 

stress test conducted by the CBN in 

2017 on the state of banks in Nigeria 

had indicated a potential for high 

contagion risk given that the Capital 

Adequacy Ratios (CARs) of three 

banks (including two Systemically 

Important Banks) were below the 

regulatory threshold. 

To be sure, stability of the financial 

sector in Nigeria is a longstanding 

responsibility of the CBN 

requiring effective regulation. In 

recognition of this, the apex bank, 

especially in recent times, has 

adopted a number of measures to 

get the financial institutions play by 

the rules. For example, in response 

to the rising Non-Performing Loans 

(NPLs) and the attendant weakening 

and erosion of the capital base 

of Deposit Money Banks in the 

country, it barred DMBs with NPLs 

above 10 per cent from paying dividends 

to their shareholders. The 

apex bank had also in November 

2016 imposed fines on four banks 

for committing various regulatory 

infractions which included ‘’violating 

regulatory guidelines on antimoney 

laundering/combating the 

financing of terrorism, rendition 

of reports on politically exposed 

persons and failure to conduct enhanced 

due diligence on directors 

of some customer firms’’. It would 

seem however that the fines are not 

serving as sufficient disincentive to 

the culprit financial institutions in 

view of the fact that they pale into 

insignificance when compared to 

the benefits derived from flouting 

extant laws. 

It is in this light that the current 

Bill before the National Assembly 

seeking for an Act to amend the 

Banks and Other Financial Institutions 

Act (BOFIA) is welcome. 

The BOFIA amendment Bill is 

not only seeking to increase the 

penalties for infractions and make 

them sufficiently punitive to deter 

corporate governance breaches, 

it is equally targeting individuals, 

including chief executive officers, 

managers and directors of banks, 

in order to discourage individual 

misconduct, insider abuses and 

other unethical practices. It goes 

without saying that it is one thing 

to make laws and have regulations 

in place; enforcement action is 

another kettle of fish. Experience 

has shown that financial institutions 

often exploit loopholes in the 

BOFIA to perpetrate unwholesome 

acts. To this end, the CBN should 

be empowered in the proposed 

BOFIA amendments to apply appropriate 

sanctions including the 

power to revoke licences of noncompliant 

financial institutions 

where necessary. 

At another level, the need to 

have a proper co-ordination among 

the various financial markets regulators 

(CBN, SEC, PenCom, NAI- 

COM) cannot be overstressed. 

The Financial Services Regulation 

Committee (FSRCC) is largely perceived 

as inactive which is why the 

CBN should champion the resuscitation 

of this body by making it 

more visible through the structuring 

of a robust financial framework 

that would adequately harmonize 

regulations and promote stability 

in country’s financial system. 

That said, it bears repeating that 

a key objective of financial regulation 

is to increase the effective 

functioning of the financial system 

in order to maintain financial stability 

which is in sync with macroeconomic 

stability. It is pertinent 

to recognize therefore that the financial 

authorities cannot achieve 

this without the cooperation of the 

operators and individual actors in 

the financial markets. Without any 

doubt, government regulations 

can help provide the framework 

within which these private participants 

can carry out their activities. 

However, in the final analysis, it is 

the actions of these stakeholders 

that will ultimately make or mar 

financial sector stability. 


comment@businessdayonline.com 

Religion, Christian spirituality and our naked public square 

OMAGBITSE BARROW FCA 

Omagbitse Barrow is a Strategy & 

Innovation Consultant and author 

of “My Fun Finance Story Book” @ 

gbitsebarrow 

Many observers of the 

Christian faith in our 

country and society 

are very concerned 

about the high level of Christian 

religiousity and the un-correlated 

high levels of immorality, prejudice, 

indiscipline, corruption 

and everything wrong with our 

“public square” – the values that 

guide our national discourse and 

development. In his classic book 

that examines the relationship 

between religion, culture, politics 

and American Society, Richard 

Neuhaus posits that secular America 

has deliberately “de-God-ed” 

the American society removing 

religious instruction from public 

schools and national life, with dire 

consequences for morality and the 

existence of modern America. In 

our case, our religious activities 

are still thriving, in fact the drums, 

whistles and bells of religious 

worship are beating and chiming 

more loudly in our public offices, 

schools and in every corner of the 

country in such a frenzy that it 

looks like there is not only interreligious 

competition, but indeed 

intra-religious competition. Yet, 

our morality and all indices that 

measure societal development 

continue to be at an all-time low. 

What could possibly be wrong 

– definitely there is something 

lacking in our spirituality. 

The discussions we had at the 

2018 Lenten retreat at Lux Terra 

Chaplaincy in Abuja made this 

connection clearer, and I believe a 

wider audience of Nigerians need 

to share in this understanding, 

so that indeed we may clothe our 

naked public square and set our 

country on the path to restoration 

– a path that requires Christian 

spirituality much more than the 

religious activities to which we 

have become accustomed. To 

create the clarity, we must understand 

the relationship between 

Christian religion and Christian 

spirituality; the key elements 

that make Christian spirituality 

unique; and then explore how 

Christian spirituality can transform 

our naked public square. 

Religion consists of all the 

devotional and worship activities 

as well as all the institutional arrangements 

that facilitate these 

acts of devotion and worship that 

try to connect us with the higher 

Spiritual being, God. So, all our 

prayers, fasting, observances, singing, 

sacraments, Catechism, Bible 

School, Sunday Mass and Services, 

Fellowship, Church Structures and 

Hierarchy, Novenas, Tithing, Offering, 

Harvest, etc. are all part of the 

Christian religion. Spirituality is the 

communion with the higher spiritual 

being – God, that gives meaning 

to our lives, directs our conduct 

and keeps us one with God. It is the 

God-consciousness that translates 

into a creative energy that affects 

how we perceive everything (the 

lens through which we view the 

world), and how we relate with 

God and all of God’s creation. 

Spirituality represents the ultimate 

goal of our lives and is the 

purpose of our existence, while 

religion is the process to attaining 

that goal or purpose – to buttress 

this, the catechism of the Church 

says that the purpose of a Christian 

is to ‘know God, love Him, do His 

Will and be with Him in eternity”. 

So Christian religion that is devoid 

of this deep Christian spirituality 

is not an authentic religion – it is 

empty ritual – the kind of empty 

ritual that Jesus himself complained 

was at the heart of Pharisaic 

behaviour when he was on 

earth. Religion plays an important 

role in promoting spirituality, but 

like Stephen Covey said, “we must 

begin with the end in mind” and 

I extend to – “we must do everything 

with the end in mind”. Like 

the Pharisees and ancient Israel, 

our public square has been taken 

over by people and activities that 

are overtly religious but apparently 

not deeply spiritual in an 

authentic Christian sense. 

Authentic Christian spirituality 

is characterized by a number 

of distinct features compared to 

other “spiritualities” that exist. 

When Nigerian Christians start 

to strive to “do everything” in 

line with these elements, then 

our public square and national 

fortunes will start to transform. 

Firstly, it is that God is our Father 

– a loving, compassionate, 

merciful and just Father. Also, 

that Jesus is His Son, our Lord 

and Saviour, and that through 

Jesus’ life, death and resurrection 

we are co-heirs to God’s Kingdom. 

Thirdly, is that we should 

be Christ-like, hence the word 

“Christian” – this means that we 

are to be imitators of Christ, to 

live out his virtues and values of 

love, mercy, compassion, even 

love for our enemies and adversaries 

who wish to hurt us. Also, 

we are saved by God’s Grace, not 

by our personal efforts – so, all 

that we have and are, and ever 

hope to be is because of the abundant 

Grace God gives us in spite 

of failures. Finally, but not exhaustively, 

is the centrality of the 

cross – the sign of Jesus’ passion 

and suffering, the sign of God’s 

abundant love for humanity, and 

the call that we too must “carry 

our crosses each day and follow 

him” and be prepared to suffer 

pain, losses and failure like our 

Christ and the early Christians did 

in pursuit of the ultimate heavenbound 

goals. 

So if Christian religion is to 

make a difference in our society 

as it did in Europe when the early 

Christians transformed the world 

based on Christian values, Nigerian 

Christians must challenge 

themselves as they continue in 

their religious activities to focus 

on some of these deeper spiritualities 

and some of the symptoms 

of our naked public square– ethnic 

bigotry and hatred; religious 

intolerance and vigilantism ; 

prosperity preaching, hate speech 

and violence against our enemies, 

mind-boggling corruption, crass 

materialism and acquisitiveness 

and many other ills that seem to be 

a reflection perhaps of some of our 

traditional African spirituality and 

the new spirituality of ‘mammonism” 

and not authentic Christian 

spirituality. 


comment@businessdayonline.com

12 


BUSINESS DAY 

C002D5556 

EDITORIAL 

PUBLISHER/CEO 

Frank Aigbogun 

EDITOR-IN-CHIEF 

Prof. Onwuchekwa Jemie 

EDITOR 

Anthony Osae-Brown 

DEPUTY EDITORS 

John Osadolor, Abuja 

Bill Okonedo 

NEWS EDITOR 

Patrick Atuanya 

EXECUTIVE DIRECTOR, 

SALES AND MARKETING 

Kola Garuba 

EXECUTIVE DIRECTOR, OPERATIONS 

Fabian Akagha 

EXECUTIVE DIRECTOR, DIGITAL SERVICES 

Oghenevwoke Ighure 

ADVERT MANAGER 

Adeola Ajewole 

MANAGER, SYSTEMS & CONTROL 

Emeka Ifeanyi 

HEAD OF SALES, CONFERENCES 

Rerhe Idonije 

SUBSCRIPTIONS MANAGER 

Patrick Ijegbai 

CIRCULATION MANAGER 

John Okpaire 

GM, BUSINESS DEVELOPMENT (North) 

Bashir Ibrahim Hassan 

GM, BUSINESS DEVELOPMENT (South) 

Ignatius Chukwu 

HEAD, HUMAN RESOURCES 

Adeola Obisesan 

Avoiding a looming debt trap 

In August 2016, Nigeria and 

China spoke of a planned 

loan of $20bn from China to 

Nigeria. It was during the visit 

of President Muhammadu 

Buhari to China where he held 

meetings with Chinese President Xi 

Jinping. There was a caveat, though. 

The Chinese gave stringent conditions. 

They wanted to name their 

officials into the management of 

the fund and demanded articulated 

repayment plans, including terms 

and conditions. Nigerian officials 

were to discuss and agree with the 

China Ministry of Commerce. 

The Federal Government announced 

through the Minister of 

National Planning, Udoma Udo 

Udoma, that the Federal Government 

had put in place a team of 

experts that was working with the 

Chinese on the modalities. The 

China Eximbank was to fund the 

loan. The Federal Government 

has not said much subsequently 

on this considerable loan expected 

from China. Chinese president Xi 

Jinping had affirmed at the China 

follow-up conference on the implementation 

of the follow-up actions 

on the Johannesburg Summit of the 

Forum on China-Africa Cooperation 

(FOCAC) the determination of 

the Chinese to maintain cordial and 

supportive relations with Africa. 

It was the first time the Chinese 

were playing hardball with Nigeria 

over credit. The matter has been on 

hold since. 

Since 2015, Nigeria has increased 

the embrace of the Chinese that the 

government of Olusegun Obasanjo 

commenced. Before the stalemate 

on the $20b loan, Nigeria in April 

2016 spoke of a $6bn infrastructure 

projects loan from the Chinese. It was 

also to include a currency swap deal. 

There were neither details of the size 

of the swap nor any information to 

date. Federal officials spoke of inviting 

the Chinese to provide funding for 

local industries. 

There was a loan of $4.5bn for 

mechanisation of agriculture in April 

2017. Agriculture Minister Chief Audu 

Ogbeh alongside Governor Abdulazeez 

Yari of Zamafara State spoke 

of the credit after briefing President 

Buhari on the outcome of their visit 

to China. 

Ogbeh stated, “We signed an 

agreement which engages all the 

states including the Federal Capital 

Territory for the procurement of 

strategic machinery for rural development 

and agriculture. The Chinese 

were willing to supply us these things 

on a long-term basis, 20 years credit 

on an interest rate of one percent per 

annum.” 

Ogbeh articulated the basis for 

the romance with China. He said, “Of 

all the partners we have, the Chinese 

have shown the willingness to see us 

out of our problems because about 30 

years ago they were in the same crisis. 

They see us as people in the same circumstances 

they were then, and they 

are willing to help us get out of it, and 

we appreciate it. The president does.” 

Channel noise around his visit 

beclouded assimilation and discussion 

of the message of immediate 

past American Secretary of State Mr 

Rex Tillerson. As he travelled to five 

African countries including Nigeria, 

Mr Tillerson raised the concerns of 

the United States on the increasing 

debt profile of African nations. He was 

worried about the fact that majority 

of the loans were with China and the 

terms of engagement were not clear. 

The unfortunate injection of geopolitics 

in Mr Tillerson’s concern 

robbed it of its credibility, urgency and 

importance. The situation is doubly 

regrettable as the sack of the foreign 

secretary from his elevated position on 

his way back from Nigeria prevented a 

proper engagement of the issue. 

Citizens need to pay closer attention 

to the debt matter and task the 

Government over it. 

The Debt Management Office 

recently reported a 79.25 percent 

increment in the nation’s debt stock 

within 330 months, moving up from 

N22.2tn in June 2015 to N21.73tn in 

December 2017. External debt rose 

to 26.64 percent of the portfolio from 

its previous share of 20.04 percent. 

The reliefs are that the debt manager 

assures that the loans are still 

within manageable limits while the 

external component rose by deliberate 

action of the restructuring of the 

debt portfolio. DMO chose to increase 

our foreign against domestic debts to 

reduce exposure to the high-interest 

rates of local liabilities. 

The reassurances of the Debt Management 

Office would ordinarily be 

comforting but for history. Nigeria got 

into a debt bind in the 1980s despite 

similar assurances. It was not until 

the Obasanjo presidency that we were 

able to negotiate a costly reprieve to 

pay off the debts. 

There are claims and counterclaims 

in the states about the deployment 

of non-utilisation of borrowed 

funds, many of them from China. We 

are not keeping to the terms of many 

of the projects. The Lagos light rail 

project has overshot both its time 

and cost, for instance, compared to a 

similar project in Addis Ababa, Ethiopia 

that cost less and covered a longer 

distance. The Chinese funded both. 

We call for a proper accounting 

for all the loans Nigeria has borrowed 

from China. How much is at stake? 

What projects served as justification? 

What is the status of those projects? 

More importantly, what were the 

terms of the loans? This accounting 

should cover Federal and State Government 

loans. A national conversation 

on the loans should follow. We 

must avoid going down the same ugly 

road of the 1980s. 

EDITORIAL ADVISORY BOARD 

Dick Kramer - Chairman 

Imo Itsueli 

Mohammed Hayatudeen 

Albert Alos 

Funke Osibodu 

Afolabi Oladele 

Dayo Lawuyi 

Vincent Maduka 

Wole Obayomi 

Maneesh Garg 

Keith Richards 

Opeyemi Agbaje 

Amina Oyagbola 

Bolanle Onagoruwa 

Fola Laoye 

Chuka Mordi 

Sim Shagaya 

Mezuo Nwuneli 

Emeka Emuwa 

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COMPANIES 

& MARKETS 

Company news analysis and insight 


ARM places BUY ratings on 

Seplat’s stocks 

Pg. 14 

MRS’ shareholders fund to hit 

N23.23bn after bonus issue 

...Posts pre-tax loss of N996.61m in FY17 

Stories by BALA AUGIE 

The shareholders’ 

fund of MRS Oil 

Nigeria Plc could 

increase hit N23.23 

billion after a bonus 

issue as the company recorded 

a pre-tax loss brought 

on by receding sales and rising 

interest expense. 

The downstream oil and 

gas giant has proposed to issue 

one new equity bonus share 

for every five existing shares 

subject to approval of the appropriate 

authorities. 

The proposal shall be 

cleared in the annual general 

meeting to be held on August 

1, 2018, MRS said in a filing to 

the Nigerian Stock Exchange 

on Monday. 

MRS has 254 million ordinary 

shares outstanding at 

N0.50. When the number of 

shares is multiplied by nominal 

shares (N0.50), it will translate 

to ordinary share capital of 

N127 million in the balance 

sheet at the moment. 

After the bonus issue, the 

number of shares will increase 

to 304 million at N0.50 each. 

When the number of shares 

is multiplied by the nominal 

value of shares, it will translate 

an industry expert who doesn’t 

want his name mentioned 

because of the sensitivity of 

the matter. 

“This is because import 

maintained that they cannot 

sell at the current N145 per litre 

when landing costs is N176,” 

the industry expert. 

MRS Oil was hard hit by the 

aforementioned challenges as 

sales dipped by 2.32 percent to 

N107.08 billion in December 

2017 from N109.03 billion the 

previous year. 

Drilling down the figures 

shows income from Premium 

Motor Spirit (PMS), which 

GSK shareholders to get N8.52bn special dividend 

One of the largest 

consumer goods 

and healthcare 

firms in Nigeria 

will pay a juicy bonus to its 

shareholders. 

GlaxoSmithKline Nigeria 

Plc will distribute a N8.52 billion 

special dividend in 2017, 

according to information 

it posted on the website of 

the Nigerian Stock Exchange 

(NSE) 

The payout came on top 

of N480 million in regular 

dividends for 2017, equal to all 

of the company’s profit. 

The company said the 

windfall will be paid from 

retained earnings brought 

forward and profits of the 

sale of drinks segment as at 

December 2016. 

A breakdown of GlaxoSmithKline’s 

financial statement 

showed the company 

realised N21 billion from the 

sale of the drink business, 

to N152 million ordinary share 

capitals. 

Since a bonus issue is a 

recapitalization of reserve, 

and ordinary share capital is 

a component of free reserve, 

shareholders’ fund will hit 

N23.23 billion after the bonus 

issue, from N22.16 billion the 

previous year. 

Bonus issues are given 

to shareholders when companies 

are short of cash and 

shareholders expect a regular 

income. Shareholders may sell 

the bonus shares and meet 

their liquidity needs. 

Downstream oil and gas 

which translated into a profit 

after tax and special dividend 

of N3.23 billion after deducting 

expenses relating to the deal. 

Analysts say investors have 

been scrambling to buy the 

firm’s stock on the expectation 

GSK 

firms in Africa’s most populous 

nation had caveat that 

the tough and unpredictable 

macroeconomic environment 

could hinder them from rewarding 

shareholders. 

The delay in payment of 

subsidy arrears have hindered 

firms from paying interest on 

loans borrowed from bank 

while a change in the current 

template that saw NNPC 

become sole importer of petroleum 

products deal a blow 

on revenue. 

“NNPC is the sole importer 

and they are just getting products 

from the corporation, said 

make up 58.59 perccent of total 

revenue, fell by 16.20 percent 

to N62.64 billion in the period 

under review. 

The combination of huge 

finance cost and rising operating 

expenses resulted in a 

96.92 percent drop in operating 

profit to N101.21 million 

in December 2017 from N3.28 

billion the previous year. 

MRS Oil recorded a loss 

before tax of N996.61 million 

in the period under review 

from a profit position of 

N2.28 billion the previous 

year as a finance cost of 

N1.21 billion swallowed all 

of operating income. 

Perhaps more worrisome 

is the company’s 0.08 times 

interest ratio that is lower 

than the generally acceptable 

average of 1.50 times earnings. 

This means the MRS Oil’s ability 

to meet interest expenses 

may be questionable while 

it is not generating sufficient 

cash flows. 

The downstream oil and 

gas giant recorded a profit 

after tax of N1.38 billion as at 

December 2017, thanks to a 

tax credit of N2.38 billion. 

MRS Oil’s share price 

closed at N27 as of 2:00pm 

close of trading in Lagos, valuing 

it at N6.85 billion. 

in share price appreciation. 

Dividend yield (DY) has 

catapulted to around 30 percent 

on a share price of N25.50 

(2:00pm close of trading on 

Friday) immediately after 

the announcement as investors 

expect a high minimum 

required rate of return. 

While the Nigerian consumer 

goods and healthcare 

firm is rewarding shareholders 

with a bumper dividend, 

its earnings have missed analysts’ 

expectations as rising 

cost of production suppressed 

margins. 

Net income dipped by 

45.02 percent to N486.43 million 

in December 2017 from 

N4.20 billion the previous 

year. 

A 156.81 percent surge 

in cost of raw material consumed 

dealt a great blow on 

margins as gross margins 

dipped to 27.79 percent in 

December 2017 from 62.30 

percent as at December 2016. 

Net margin, a measure of 

efficiency, fell to 3.02 percent 

in December from 29.20 percent 

the previous year. This 

means the company has not 

been translate each Naira 

of sales into profit for shareholders. 

GlaxoSmithKline’s shares 

have gained 18 percent since 

last year, outperforming the 

NSE ASI of 8.44 percent as of 

close of trading on Friday. 

Shareholders back 

NAICOM’s directive 

to insurance 

operators on huge 

management 

expenses 

Shehu Mikail, National 

President, Constance 

Shareholders Association 

of Nigeria (CSAN) 

has declared support for the 

National Insurance Commission’s 

(NAICOM) directive 

to insurers to cut their huge 

management expenses. 

Mikail told the News 

Agency of Nigeria (NAN) on 

Monday in Lagos, that the 

cut would end unnecessary 

expenditures embarked on by 

some insurers as well as enhance 

dividend payment and 

boost investors’ confidence in 

the sector. 

He said the association 

was happy with the new directive 

by Mohammed Kari, 

the Commissioner for Insurance 

(CFI). “This means that 

companies would no longer 

spend unnecessarily to the 

extent that they would not be 

able to attend to claims settlement 

and give good returns on 

investments,’’ Mikail said 

He noted that a data recently 

obtained from the Nigerian 

Insurers Association 

(NIA), revealed that a whopping 

N264.15 billion was spent 

as management expenses in 

five years. 

“The data in 2012 financial 

year showed that N48. 22 billion 

was incurred on management 

expenses. 

“About N48.59, N53.83, 

N52.12, and N61.39 billion 

in 2013, 2014, 2015 and 2016 

respectively, bringing the total 

amount spent as management 

expenses to N264.15 billion in 

five years. 

“At a time the industry is 

targeting one trillion premium 

income in 2020, and 15 per 

cent of N350 billion expected 

premium income annually is 

being expended on management 

expenses. 

“These management expenses 

included underwriting 

expenses, salaries, rents 

and others excluding commissions 

paid to agents and 

dividend payments within the 

periods,’’ he said. 

The CSAN president further 

said that it was worrisome 

that four insurance firms in 

2016 financial year had their 

management expenses higher 

than the gross premium generated. 

According to Mikail, the 

data showed that Old Mutual 

Life Assurance Company Limited, 

which had N1.30 billion 

as gross premium, spent N1.83 

billion, Spring Life Assurance 

Plc, which had N32 million 

spent N105,282 million

14 

BUSINESS DAY 

COMPANIES & MARKETS 

C002D5556 


ARM places BUY ratings on Seplat’s stocks 

Business Event 

BALA AUGIE 

Analysts at ARM 

Securities Limited 

have placed 

BUY ratings on 

Seplat Petroleum 

Development Company Plc. 

(Seplat)’s stocks, citing improved 

cash flow generation 

and higher receipt from crude 

oil lifted from OML 55 as the 

major reasons for the recommendation. 

“Given the foregoing, we 

see the potential for a strong 

run up in Seplat’s shares over 

2018 as the pieces fall into 

place,” said analysts at ARM 

Securities. 

“Consequently, we place 

a BUY recommendation with 

an upgraded FVE of N952.81/ 

share (up from N663.85/ 

share). On basis of valuation, 

Seplat is trading at a 2018 P/E 

and P/CF of 7.2x and 2.8x relative 

to African peers of 21.1x 

and 7.01x respectively,” said 

Analysts at ARM 

The leading indigenous Nigerian 

oil and gas exploration 

and production Company return 

to profitability after lower 

oil price and incessant attacks 

on oil facilities by Niger Delta 

militants on Forcados terminal 

subsea crude export 

pipeline resulted in significant 

drop in revenue in 2016. 

Seplat posted a net income 

of $265.13 million in 

December 2017 from a loss of 

N116.09 million in 2016. 

The company has $450 million 

in free cash flow in 2017, 

which represents a 275.75 

percent surge from $119.76 

million recorded as at December 

2016. 

Net cash flow from operating 

activities spiked by 161.40 

percent to $447 million, from 

$171.59 million recorded last 

year. 

The political bedlam in the 

Niger Delta region between 

January 2016 and February 

2017 disrupted production 

and forced Seplat to cut down 

on spending as it incurred $33 

million in capital expenditure 

in 2017. 

This compares with a record 

spend of $321 million 

in 2014 when oil prices were 

around $100. See Chart. 

“Seplat will continue to 

exercise discretion over spend 

Selectively considering production 

drilling opportunities 

in the existing portfolio 

with a view to reinstating a 

work programme designed 

to capture the highest cash 

return opportunities committed 

capex in 2018 isv currently 

minimal,” said the company 

in its 2017 financial statement 

presentation. 

The company has a free 

cash flow yield of 29.71 percent, 

which means it is in good 

financial health. 

Free Cash Flow Yield is an 

indicator that compares free 

cash flow and market cap. It is 

a representation of the income 

(free cash flow) created by an 

investment. 

A yield of 12 percent 

means that a company is 

generating 12 percent of its 

Market Capitalization in free 

cash flow yearly. Generally, 

higher yields are more appealing, 

because they indicate that 

investors pay less for each unit 

of cash flow. 

Tony Okpanachi, managing director, Development Bank of Nigeria (DBN) Plc, (l) and Aliyu 

Abdulhameed, managing director, NIRSAL Plc, at the signing of a Memorandum of Understanding 

on Agricultural Lending between the two companies at NIRSAL Headquarters in Abuja 

L-R: Olumide Okunola, senior health specialist, IFC; Eyong Ebai, general manager, GE Healthcare, 

West and Central Africa; Felix Ogedegbe, medical director, Cedarcrest Hospitals; Folabi Ogunlesi, 

managing partner, Vesta Healthcare, and Ibrahim Wada, founder/vice chairman, Nisa-Garki Group, 

at the commissioning of Cedercrest’s 90-bed multi-speciality hospital in Abuja 

How to sustain success of pension reforms - Trustfund 

SEYI JOHN SALAU 

Continuous retiree engagement 

has been 

identified as key in the 

promotion of the Contributory 

Pension Scheme (CPS) 

and the overall success of the 

pension reforms in Nigeria. 

The Pension Reform Act 

2004 was the institutional basis 

for pension in both private and 

public sector of the country. 

Prior to the reform, the Defined 

Benefits Scheme was overwhelmed 

with huge pension 

liabilities from inadequate 

budgetary provision by government, 

which did not take into 

cognizance increases in salary 

and pension and resulted into 

delay of pension payment and 

death of retirees. 

Obiora Ozoekwem, regional 

manager, TrustFund Pension 

said during the company’s preretiree 

and retiree forum, in 

Lagos, that the young industry 

needs regular engagement with 

retirees to bridge the knowledge 

gap and increase penetration 

of the pension scheme in the 

country. 

“This industry is very young, 

barely 10 years and modifications 

are coming out on a daily 

basis; the only way they can 

get accurate information and 

update is by having this kind 

of engagement with them. So 

that one-on-one they can give 

us feedback on what they want 

us to improve on, and we can 

always update them on new 

things in the industry.” 

According to Ozoekwem, the 

retiree forum offers opportunity 

to interact with retirees. “When 

somebody leaves his place of 

work, information available to 

the individual becomes minimal, 

if we cut them off without 

engaging them regularly, a gap 

grows,” said Ozoekwem as he explained 

that feedbacks ensured 

improved retiree pensions. 

“Retirees get statement of 

account through e-mail, and 

also help TrustFund to educate 

their clients on the importance 

of programmed withdrawal over 

annuity. 

He said the essence of the forum 

was also to intimate retirees 

on the various investment portfolios 

available to them under 

the programmed withdrawal 

scheme. 

“The essence of the programme 

is to let them know 

that if money is not given to 

everyone, it is for people that 

retire within certain period. 

The second reason is the new 

investment structure for those 

still working, before now our 

investment functions were 

standard; we only allowed certain 

investment like the money 

market, equity market, and few 

other bonds like FGN and state 

bonds,” he stated. 

Under the contributory pension 

scheme, Ozoekwem said 

clients are profiled based on 

their lifespan allowing them for 

benefit from pension pays with 

increased income. 

“There is a new function in 

place where customers have 

been profiled according to age; 

so you have the right now to say 

I don’t want my money to be 

invested in fund one; or I don’t 

want my money in fund one, 

please move it to fund two. What 

this means is that for people with 

longer years to work, they can 

opt for investment that will give 

higher returns but come with 

minimally higher risks,” Ozoekwem 

said. 

Before the pension reforms, 

the private sector hardly benefits 

from retirement schemes, while 

the management of the old pension 

scheme in the public sector 

was largely weak, inefficient, less 

transparent, cumbersome, and 

dogged by corruption. 

L-R: Adedotun Owolabi, nutrition manager, Friesland CampinaWamco; Jesufemi Ololade, junior brand 

manager, Three Crowns; Oluwakemi Longe, 2017 Three Crowns Milk Mum of the year; Omolara Banjoko, 

senior brand manager, Three Crowns Milk and Seyi Olusore, fitness instructor, during the Three Crowns 

Cardio dance session held in Police College GRA Ikeja Lagos. 

L-R: Akuoma Omeoga, Brakeswoman Bobsled; Seun Adigun, team captain & driver Bobsled; Philip 

Akesson, country manager, Travelstart Nigeria; Bukky Akomolafe, commercial manager, Travelstart 

Nigeria; Simidele Adeagbo, Skeleton, and Ngozi Onwumere, Brakewoman Bobsled, during a 

courtesy visit to the Travelstart office shortly after their return from the 2018 Winter Olympics.


BUSINESS DAY 

15 

CITYFile 

Administrative 

block of newly 

constructed 

camp for 

Internally 

Displaced 

Persons 

(IDPs) by the 

Presidential 

Committee 

on Flood 

Relief and 

Rehabilitation 

that was destroyed 

by fire 

in Shendam, 

Plateau State. 

NAN 

No going back on ban of cult 

activities in A’Ibom - Udom 

ANIEFIOK UDONQUAK, Uyo 

Akwa Ibom state government says 

its position on cultism and other 

related vices is not open for negotiation 

as anybody found guilty 

shall face the full wrath of the law. 

Governor Udom Emmanuel stated this at 

the 8th matriculation ceremony of the Akwa 

Ibom State University (AKSU). The state government 

recently outlawed 33 cult groups 

identified by the police in the state to have 

been involved in killings, maiming and kidnapping 

of innocent citizens of the state, with 

Ukanafun and Etim Ekpo local government 

areas as major the enclaves of the cultists. 

Udom assured the students that government 

was working hard to improve facilities at the 

university and advised them to adopt dialogue 

in resolving issues whenever there is dispute. 

Represented by Victor Inuka, the commissioner 

for education, he charged the staff 

Graduate arrested with 762kg of cannabis 

IDRIS ABUBAKAR MOMOH, Benin 

A 

graduate of Ambrose Ali University, 

Ekpoma, Edo State, has been arrested 

by the operatives of National 

Drug Law Enforcement Agency 

(NDLEA) for involvement in illicit drugs 

transaction. 

The suspects, Iredia Austine, a graduate 

of Geophysics, was arrested with 82 bags of 

dried weeds suspected to be cannabis sativa 

weighing 762kg. 

Buba Wakawa, commander of the 

NDLEA in Edo, said on Monday that the 

762 kg of cannabis seized from Austine was 

the second of drugs hidden inside ceiling 

within one week. Wakawa said that the 

substance was discovered inside the ceiling 

of the suspect’s house at Ohiomah Street, 

Iyeu Otuo in Owan East local government 

area of the state. 

According to him, the suspect in his statement 

claimed to have bought the drugs for 

and management of the university to do their 

best to improve academic and administrative 

standards in the school. 

“As a young university, you must do the 

best you can to make it shine and rank among 

the best universities in the world,” he said. 

Eno Ibanga, the vice chancellor of the 

university, said the school was on the right 

track, stating that its programmes have been 

accredited by the National Universities 

Commission (NUC) and professional bodies 

where such accreditations are required. 

According to him, students admitted into 

the university have no reason to perform poorly, 

stressing that the institution on its part has 

improved facilities for to encourage learning. 

Ibanga charged the students to make 

good use of the opportunity offered them 

for excellent performance in order to achieve 

their dreams. He also warned the matriculating 

students that examination malpractices, 

cultism and any form of anti-social activities 

sale so as to raise money to sponsor his master’s 

degree programme. The commander 

said that the suspect was arrested at his residence 

in Otuo based on intelligence report. 

He explained that during a search operation, 

officers discovered 82 bags of suspected 

cannabis sativa concealed inside the ceiling 

of his house with a total weight of 762kg. 

“This is a criminal act that is punishable 

by the NDLEA Act. It is unjustifiable to engage 

in the criminal act under any pretext,” 

the commander said. 

During interrogation, the suspect claimed 

ownership of the drugs, stating that this is the 

largest quantity of drugs he had purchased 

in a single transaction. 

“I studied Geophysics at Ambrose Ali 

University, Ekpoma, and completed my 

National Youth Service Corps (NYSC) in 

January 2018. 

“I started selling cannabis in 2011 when 

I gained admission into the university. After 

my graduation, I stopped selling cannabis 

have been proscribed and the university has 

zero tolerance for such activities. 

“I must as a matter of seriousness warn 

the new students against any form of antisocial 

activities. Cultism has been proscribed 

by Akwa Ibom State Government. Examination 

malpractice/misconduct has been 

outlawed in Nigeria. Each of them carries a 

seven-year term. 

“The joy of matriculation is short-lived 

because it only marks the beginning of 

an eventful life. The joy of convocation is 

more lasting because it launches you into 

the world of real independent experiences. 

Strive to make good grades and be part of this 

group during convocation in a few years to 

come,” he said. 

A total of 2035 students drawn from six 

faculties participated in the matriculation 

which took place at the university main 

campus, Ikot Akpaden in Mkpat Enin local 

government area of the state. 

but the temptation arose when I purchased 

form for my master’s degree programme 

at the University of Port Harcourt. It was 

circumstances that made me to be selling it 

and this is the largest quantity of cannabis I 

have bought at a time,” he said. 

The commander said that preliminary investigation 

revealed that the suspect bought 

the drugs during harvest season and stored 

it in the ceiling for sale during peak season. 

He said that investigation would soon be 

concluded for the suspect to be arraigned 

in court. 

Wakawa said that the command discovered 

two clandestine warehouses in the state 

where 5,650 kilo grammes of dried weeds suspected 

to be cannabis sativa were recovered. 

“The first warehouse contained 4,200 

kilo grammes of cannabis while the second 

warehouse contained 1,45kilo grammes of 

suspected cannabis,” he said, adding that 

a 64-year grandfather had been arrested 

in connection with one of the warehouses. 

Ambode tasks civil 

servants on time mgt. 

Governor Akinwunmi Ambode has 

urged civil servants in Lagos to embrace 

time management in order to 

raise their productivity. 

Ambode gave the charge during a twotraining 

for senior civil servants, saying 

improper time was a major reason why 

some civil servants missed deadlines and 

recorded low productivity. 

The governor was represented at the 

training by Benson Oke, his commissioner 

for establishments, training and pensions. 

According to Ambode, “although it’s not 

uncommon for people to occasionally miss 

deadlines due to emergencies “but if you 

find that it becomes a regular occurrence, 

your time management skills definitely 

need improvement.” 

Speaking further, he said “even though 

you’re in a hurry to get everything done, 

you’ll inevitably end up wasting your time 

thinking of how you’re going to finish everything 

on time instead of focusing on the 

task ahead of you. Unfortunately, this will 

only make things worse. 

However, if you have good time management 

skills, you won’t reach this stage. Since 

you won’t have a backlog of work waiting to 

be completed, you’ll be able to focus and 

finish your tasks in a timely manner without 

becoming distracted,” Ambode explained. 

He also identified stress and anxiety as 

the products of poor time management, 

explaining that it was common for people 

to feel helpless and stressed when they are 

pressed for time. 

“In situations like this, most people 

panic and start to feel like they just don’t 

have enough hours in the day to get the 

work done. This can only add to their stress. 

Unfortunately, this is another classic sign of 

ineffective time management skills. Instead 

of focusing on how much work you have left 

to do, always try to focus on the task ahead. 

This will help you keep the stress at bay and 

allow you to get things done much more 

effectively,” the governor said. 

LASCOPA assures protection 

for consumers 

JOSHUA BASSEY 

Kemi Olugbode, general manager, Lagos 

State Consumer Protection Agency 

(LASCOPA), says the new agency 

will do everything necessary to protect the 

rights of consumers of goods and services. 

Olugbode led members of her team on an 

inspection visit to Kellogg Tolaram, at Lagos 

Free Trade Zone. The visit was in response 

to a video which went virile on social media 

portraying Kellogg product as ‘fake’. The video 

was said to have been sent to LASCOPA by 

a concerned consumer, last week. 

She said the agency was resolute in its effort 

to stamp out abuse of consumers’ rights 

as well as ensure that they get value for their 

money and redress whenever their rights 

were infringed upon. 

The GM said the agency’s concern was 

consumers’ satisfaction. She said that 

LASCOPA had invited the management of 

Kellog Tolaram for a meeting and that the 

inspection visit was a follow-up measure. 

She assured that LASCOPA would always 

carry out a thorough investigation before 

reaching a conclusion on any issue bordering 

on violation of customers’ rights. She 

urged consumers to take advantage of the 

services of the agency whenever their rights 

were violated. 

Vani Malik, the general manager of Kellogg 

Tolaram, said that her company would 

always give priority to consumers’ satisfaction. 

She said that international standards 

were observed in the production of Kellogg’s 

corn flakes which according to her, has become 

the delight of consumers.

Herdsmen attacks: 

Now that Danjuma 

has spoken 

18 

16 BUSINESS DAY C002D5556 Wednesday 28 March 2018 

2019: Obasanjo is Nigeria’s political ‘oracle’, any 

candidate he supports will win - NUP chairman 


Ahead of the 2019 elections, 

former President 

Olusegun Obasanjo 

now sits as oracle that 

may determine victory 

for candidates and political parties 

especially the presidential election, 

a development that seems to 

suggest why many are flocking to 

his inspired Coalition of Nigeria 

Movement (CNM). 

This disclosure was made by the 

National Chairman of the National 

Unity Party (NUP), Perry Opara, 

who told BusinessDay in an exclusive 

interview on Saturday that the 

former President is a catalyst to the 

new found consciousness of the 

Nigerian people to install good governance 

in 2019 stressing that “in 

2019, whoever Obasanjo supports 

will win the presidency of Nigeria.” 

Opara noted that he and his 

party, the NUP are at the forefront 

among those who are working 

with the Obasanjo’s CNM, the 

Nigerian Intervention Movement 

(NIM), faith-based organizations, 

Civil Society Organisations, professional 

bodies, student groups, 

trade unions, market women, the 

media, international organisations, 

socio-cultural organisations and the 

Nigerians in the Diaspora under the 

platform of “The People First Grand 

Coalition.” 

The NUP chairman, who recently 

led leaders of the other political 

parties and other interest groups 

to a meeting with Obasanjo said he 

supports the Obasanjo movement 

whole heartedly because it stands 

a chance to take Nigeria to the right 

direction. Other political party leaders, 

who joined Opara for the visit 

to Obasanjo included; Chairman 

of the Better Nigeria Progressive 

Party, (BNPP),Godswill Iheanyichukwu 

Nnaji, National Chairman 

of People’s Alliance for National 

L-R: Namadi Sambo, a former vice president; Uche Secondus, national chairman of the People’s Democratic Party (PDP) and 

Atiku Abubakar, a former vice president, at the PDP public discourse on nation building at the Transcorp Hilton Hotel, Abuja. 

Development & Liberty (PANDEL) 

Abah Lewis, the national Chairman 

of the Re-build Nigeria Party 

(RBNP), Japhet Anyanwu, National 

Secretary of African Democratic 

Congress (ADC) Sa’id Baba Abdullahi, 

the Secretary of the Inter- 

Party Advisory Council (IPAC), Sam 

Eke,religious leaders among others. 

Opara warned that any politician 

or political party that ignores 

Obasanjo in 2019 will do so at their 

own peril, saying Obasanjo’s CNW 

has already attracted over 3 million 

members in just three weeks of inception 

even as he posited that the 

membership of CNM could hit 30 

million before the elections which 

is enough to defeat any candidate 

in an election. 

“Obasanjo is the Nigerian political 

Oracle, which must be consulted 

in any presidential election. He has 

led Nigeria three times before and 

when he brought Yar’Adua in 2007 

against the permutations of everybody 

Yar’Adua won. He brought 

in Jonathan in 2011 and against all 

permutation Jonathan won despite 

not having the structures, and in 

the last election in 2015, Obasanjo 

joined forces with President Muhammadu 

Buhari and brought him 

in,” he noted. 

When asked whether Nigerians 

will still trust Obasanjo considering 

the fact that the previousleaders 

he allegedly selected for Nigerians 

seem to have failed, Opara pointed 

out that Obasanjo is only interested 

in improving the economy of Nigeria. 

He said “I have had personal 

interaction with Obasabjo and he 

is an elderly man what else is he 

looking for? 

“He is not looking for money 

and fame, he is not looking to build 

houses, he is not thinking of buying 

cars. He is thinking of how the 

economy of Nigeria will be better 

and even the deaf and blind are 

aware that we are not doing well, 

there is hardship in the land. I 

have had personal interaction with 

Obasanjo and I have come to the 

realisation and conviction that what 

the man wants is the economy of 

Nigeria to be better. 

“So long as the economy of Nigeria 

is good he will be with the 

person. Even when he brought 

Jonathan to power, he found out 

that the government was being 

reckless, they were not doing what 

they are supposed to do and that 

government collapsed. He has 

told President Buhari to do something 

about the economy and I am 

thinking that if a miracle happens 

and the economy turns around and 

Nigerian hardship reduces, the killing 

in various parts of Nigeria, the 

terrorism reduce, he may have a 

change of mind to support Buhari. 

“So Obasanjo can be trusted, he 

can be believed and Nigerians have 

a way of believing in him because 

he has shown the way three times. 

He brought out Yar’ Adua, they followed, 

he brought out Jonathan, the 

followed him, he supported Buhari 

and the people followed. I am sure 

that in 2019, whoever OBJ supports 

will win the presidency of Nigeria.” 

2019: Business 

tycoon drums support 

for Ortom 

JAMES KWEN, Makurdi 

As the 2019 elections draw 

nearer, a Makurdi based 

business man and Tax 

consultant, Peter Tyough 

has appealed to people of Benue 

state to return Governor Samuel 

Ortom back to the Benue Peoples 

House in view of his sterling performance 

in office. 

Tyough in a press statement 

made available to newsmen in 

Makurdi, pointed out that it is only 

when Ortom is given a second term 

that he will consolidate on the 

achievements already recorded. 

He noted that the state under the 

leadership of Governor Ortom has 

witnessed unprecedented turnaround 

in sectors such as health 

care delivery, education, massive 

infrastructural facilities as well as 

improvement in agricultural sector 

like never before. 

According to business who holds 

the Chieftaincy titles of “Akinde 

U Kwande” and “Tsar U Kyurav” 

worldwide, in spite of the security 

challenges confronting Benue State 

at the moment, the Governor has 

well registered his imprint on the 

sand of history. 

He maintained that the demonstration 

of courage in handling 

state affairs during the volatile 

situation the State has found herself 

in is enough conviction that 

the Governor on divine mandate 

hence, he should be given another 

tenure to continue with the good 

work of repositioning Benue State. 

In a related development, Chibee 

has called on the electorate to 

vote for only credible, purposeful, 

resourceful, visionary and dynamic 

candidates who will not abandon 

them once they get elected. 

He therefore, made case for the 

election of the incumbent Chairman, 

Benue State Internal Revenue 

Service, Mimi Orubibi-Azape as the 

next Senator for Benue North East 

Senatorial District. 

Buhari is desperate to grab land for Fulani herdsmen - PDP chieftain 


Following the incessant Fulani 

herdsmen attacks in parts of 

Nigeria, especially in Benue, 

Plateau, Taraba states and 

other parts of the Middle Belt, a 

chieftain of the People’s Democratic 

Party (PDP) and a public affairs analyst, 

Katch Ononuju, has alleged that 

President Muhammadu Buhari is 

desperate to hand over land belonging 

to indigenous peoples of Nigeria 

to foreign Fulani, warning that if he 

is not stopped, Nigeria might plunge 

into anarchy. 

Ononuju told BusinessDay in an 

exclusive chat that the Fulani herdsmen 

crisis is intensified by increasing 

desertification and Boko Haram 

violence in the North east, stressing 

that the Buhari government has no 

adequate strategy to combat the 

crisis other than to allegedly allow 

his Fulani kinsmen to invade land 

of indigenous Nigerians for grazing. 

“Buhari is allowing Fulani from 

Niger, from Mali to kill Nigerians and 

there is no way to explain it. Foreigners 

are being imported from outside 

the country and what do they do? 

They kill indigenous Nigerians in their 

land. This is a despicable thing anybody 

can do security wise,” he alleged. 

The PDP chieftain also alleged 

that the security agencies are handicapped 

because Buhari has refused 

to give them the right signal to act. 

He said, “As I am talking to you the 

Miyetti Allah has completely intimidated 

both the police and the army 

because of Buhari’s body language. 

We don’t want that. But if we don’t 

stop the Fulani they will continue to 

attack and kill Nigerians.” 

He noted that Nigerians were very 

Ononuju 

expectant of Buhari and they tried to 

embrace him without knowing that 

Buhari had other ideas adding that 

in a more fundamental sense the 

crisis is about the Fulani reaction to 

the consequence of democracy. “I 

see Fulani as a group without the 

numbers to cover the bases they use 

to occupy. Under dictatorships, they 

were the say- all -masters, but under 

democracy, you notice how they lost 

control in places like Nasarawa. The 

indigenous people in the Middle Belt 

have started marshaling control over 

their affairs, which led to the assertion 

of their rights over land which has 

unsettled the Fulani.” 

When reminded that the Fulani 

herdsmen are only requesting for 

land for grazing, he said “Nobody 

will donate a land he does not own. 

You see 5,000 hectares is like calling 

for a local government. The problem 

that the Fulani have is desertification, 

climatic changes, coupled with Boko 

Haram activities in the north east. 

That is now what is forcing them to 

seek greener areas and the greenest 

area closest to Hausa land where 

they currently hold authority over the 

Hausa is the Middle belt. 

“As I am talking to you, Fulani 

have bought deeply into the Mambilla 

but the Jukuns are resisting them. 

That is why the Fulani are fighting. If 

you give the whole of Nigeria to them 

without adding Benue, Taraba and 

Plateau, they will not accept it. They 

need that part to gain access to the 

basin of the Benue, that is why they 

are fighting and the fight is most 

likely to continue.


C002D5556 

BUSINESS DAY 

17 

2019: The scramble for Plateau State takes new dimension 

HOPE IKWE DOSUNMU, Jos 

As 2019 election fast 

approaches and Nigerians 

gear up for the 

forthcoming elections, 

politicians and political 

parties in Plateau state are beginning 

to strategize, capitalising 

on their strengths and the weaknesses 

of rival parties. 

The ruling All Progressives Congress 

(APC) in the state led by 

Governor Simon Lalong strongly 

believes that the works of the present 

administration are the lucky 

card that the party can play to win 

the game. 

The chairman of the Vote Lalong 

Again (VOLA) team, IliyaAjang, is 

of the opinion that they need no 

much strategy as the work of the 

governor will speak for him. 

“This administration has constructed 

22 new roads of more than 

20km each in the 17 Local Government 

Areas of the state. Governor 

Lalong has continued with the 

project of the last administration, 

initiated project of road construction 

to Mararaba Jama, Miango 

Road, State and Federal Lowcosts, 

Donkat Bali and Tudunwada Ring 

R o a d ”. 

Speaking on agriculture, he said 

the Fertilizer Blending Plant that 

was abandoned in Bokkos with just 

22 staff for eight years has been revamped 

and now has 234 workers 

running three shifts per day under 

the leadership of Lalong. 

“We are not only supplying fertilizer 

to Plateau State but to the neigbouring 

Nassarawa State and we 

are moving towards food security in 

the state. In fact farmers are saying 

this is the best administration ever, 

they have access to fertilizer easily 

and value has been added to their 

farm produce,” he added. 

Ajang also said that the works of 

Lalong is visible for the electorate 

to see in the area of education as 

many PTA teachers paid N5000 to 

N10000 per month and could not 

give their best have been employed 

as 800 teachers and 200 non- teaching 

staff were recently employed. 

Simon Lalong 

He also noted that the present 

administration has scored a point 

in peace and stability in the state 

saying “we have a peace agency 

started in Plateau State by this 

administration; we have achieved 

peace in Plateau State that is why 

the president is using Plateau State 

as a model for other states in the 

country”. 

On the issue of Obasanjo’s coalition, 

Ajang said “I concur that the 

coalition is dead on arrival. I have 

seen PDP break into two, some 

are joining SDP so nobody is talking 

about Obasanjo’s coalition. 

Ironically after former President 

Obasanjo said that President Buhari 

should go and rest, he later 

confessed that Buharisucceeded 

where they have failed when the 

modular refinery was commissioned 

in Bayelsa. It is the same 

Buhari constructing tarred road 

in Otuoke the former President 

Goodluck Jonathan’s village”. 

According to him the only opposition 

he believes the ruling APC 

has in Plateau State is PDP “because 

we dethroned them and can 

be seen as the party present but not 

to be feared. Plateau people know 

them, what they could not do we 

are doing, during the PDP administration 

in the state projects were 

concentrated in only one ethnic 

group but now projects are spread 

all over the 17 Local Government 

Areas in the state. The PDP is weak 

and may just be strategizing for 

many years to come”. 

The People’s Democratic Party 

(PDP) however in its reaction, 

believes that the ruling party in 

the state has failed woefully adding 

that this failure is to its advantage. 

The Plateau State Secretary of 

PDP Emma Tuang said the past 

administration of Jonah Jang of the 

PDP initiated most of the projects 

that the President Buhari came to 

commission. Tuang said “their failure 

is a campaign in the favour of 

the PDP. We are maximally happy 

that there is complete disenchantment 

and Nigerians have tasted the 

bitter aspect of change in Plateau 

State. We have no problem; we 

are fully ready to remove Lalong 

come 2019”. 

Tuang, said that over 20 candidates 

have indicated interest in 

contesting for governorship of the 

state on the platform of the PDP but 

will only be taken seriously when 

they have purchased the Expression 

of Interest form stressing that 

“PDP is a fertile ground. The bad 

eggs in PDP are now in APC, PDP 

is not afraid of anything”. 

He however believes that the 

Obasanjo’s coalition is an uphill 

task and queried why Obasanjo, 

who he said is a respected elder 

statesman and was part of the APC 

change, is distancing himself from 

it. He stated that “politics need a 

lot of structures on ground. Winning 

elections is at the ward level 

and people bought into the APC 

change because they needed a 

c h a n g e ”. 

He therefore stated that the 

APC on the Plateau cannot use the 

power of incumbency to win election 

adding that “the change has 

given the worse and people should 

vote according to their conscience 

and protect their votes, nobody 

needs to be told.” 

The Action Democratic Party ( 

ADP), a party gaining recognition 

on the Plateau prides itself as being 

a party distinct from the ruling APC 

and the major opposition party, 

the PDP. 

Chairman of the party in Plateau 

state, Nanyah Daman, said 

the party is adopting the “Option 

A Four” system of party primaries 

where every card carrying member 

will have a say in the election and 

selection of candidates. “Before 

now political parties allow money 

bags to hijack politics but this 

system that is determined by the 

popularity of a candidate allows for 

the best candidate with the know 

how,” he said. 

Nanyah, who enumerated the 

party’s ideals as all inclusive, youth 

and women driven, party supremacy 

and candidate’s popularity 

said “ADP believes in all- inclusive 

governance, President Buhari and 

Governor Lalong are known for 

nepotistic appointments. Every 

tribe will be included in the ADP 

government on the Plateau”. 

“The reappointment of commissioners 

is ridiculous. Out of 

the previous 17 commissioners 

only 6 did not return, the governor 

increased the commissioners to 23 

with no youth. We are the ones that 

solicited for a change of cabinet 

because the previous ones were not 

performing but the whole process 

is now a total failure”. 

“Elective positions and appointments 

will be given to women 

and youths 25 percent each and 

ADP believes in party supremacy. 

NPN and NPP chairmen were very 

powerful in 1979. Solomon Lar got 

feedback from the people generated 

from the grassroots then and 

projects emanated from the people 

themselves unlike what we have 

today that you see abandoned 

project because the project is not 

necessarily what the people need 

but the initiative of the government,” 

he added. 

The chairman said ADP is ready 

to take over power from APC on 

the Plateau because of the failure 

of the government adding that 

employment of teachers in the state 

benefitted the Goemai extract, the 

ethnic group of Governor Lalong 

or people who paid their ways in. 

The recent suspension of tricycle 

riders in the state according to 

Daman is an action that will work 

against Lalong in 2019 stressing 

that “even those belonging to APC 

said they will vote ADP”. 

Nanyah said that the ADP fits 

well into the description of former 

President Obasanjo’s coalition 

even though they are not part of 

the coalition saying “we are a third 

force and fast growing party with 

structure and our presidential 

candidate just turned 37. Obasanjo 

is a booster to the party as “even 

PLAISEC is commending us for 

bringing in the force and we do not 

have recycled faces”. 

He therefore advised Plateau 

people not to repeat the mistake 

of 2015 and “not to throw away the 

baby with the bath out of annoyance. 

We should allow this new 

baby to grow to industralize Plateau, 

boost agriculture and allow 

faster development” he said. 

I am not dragging leadership of PDP with Ladoja in Oyo, says Makinde 

AKINREMI FEYISIPO, Ibadan 

A 

governorship aspirant 

under the platform 

of Peoples Democratic 

Party (PDP), in Oyo 

State, Oluwaseyi Makinde has 

declared that he is not dragging 

the leadership of the party with 

a former Governor of the state, 

Senator Rasidi Adewolu Ladoja. 

Contrary to insinuations in 

some quarters, Makinde said 

Ladoja being a former Governor, 

at all times is still his leader considering 

his political experience, 

age and influence. 

According to him, the former 

Governor remains my father politically 

and there is no need for 

him to drag the leadership of the 

party with him. 

Speaking at the maiden interactive 

session he organised for 

executive members of the party 

cut across the 351 wards and the 

33 local government areas of the 

state held in Ibadan, the state 

capital he said: “Some people said 

I am dragging the leadership of 

the party with Senator Ladoja, it is 

not so. He is still the leader of the 

party in the state and my leader 

in Oyo state”. 

He said that the party members 

should work toward ensuring that 

the aim of the party to send the 

ruling All Progressives Congress 

(APC) away in 2019 come to past. 

Makinde said: “What we want to 

do is to send APC away in 2019. After 

that, we will call ourselves and 

move forward. I am not here to 

declare my governorship ambition 

but to ensure that I interact with 

party executives. The essence of 

Oluwaseyi Makinde 

this meeting is to interactive with 

them, the party executives. All the 

33 local government areas in Oyo 

State. We have the opportunity to 

meet them and interact with them 

from our various local government 

areas. 

“I am a member of the party, I 

am entitled to interact with them, 

the executive of the party, when 

it is time for me to formally declare, 

we have done it before, we 

know how to do it. Declaration 

is not something that you do in 

the corner of your room. It is to 

tell the people what you have for 

them. Politics is all about conflict 

and resolution, there may be challenges 

but we will address them 

as family across board within the 

party so that we can move forward 

and face the APC. 

“All of us need to go and read 

the constitution of our party. So I 

am begging all of us, that don’t let 

us fight ourselves. Let us ensure 

we work together, work for peace 

to reign. I have called Senator Ayo 

Adeseun, I have called Jumoke 

Akinjide and I have sent text message 

to Senator Ladoja. 

“I am begging you to come out 

and let people know that we are 

ready to chase APC out of power.” 

At the interactive session were 

leaders of the party among whom 

were Jacob Adetoro, Ex- Speakers 

of the State House of Assembly, 

Moroof Atilola and Kehinde 

Ayoola, Aderemi Ayodele, Dotun 

Oyelade, Bisi Olopoeyan and other 

leaders of the party in the state.


Herdsmen attacks: Now that Danjuma has spoken 


A 

popular adage says that 

he who brings home termites-infested 

firewood 

should not complain 

when the lizards pay him 

a visit. 

Former Chief of Army Staff, 

Theophilus Yakubu Danjuma, a 

retired lieutenant general of the 

Nigerian Army, is a man reputed for 

his taciturnity. But the deleterious 

exigencies facing the nation occasioned 

by the insidious spread of the 

herdsmen violence across the country 

particularly in his home state of 

Taraba, have triggered a rare outburst 

from the former Minister of Defence. 

Speaking at the maiden convocation 

ceremony of Taraba State University 

in Jalingo, the Taraba State capital, 

on Saturday March 24, Danjuma, who 

received the award of honorary Doctor 

of Science from the University, 

alleged that the Fulani herdsmen killings 

unleashed on Taraba citizens and 

parts of Nigeria with the tacit support 

and cover by the Nigerian military is 

nothing but grim attempt at ethnic 

cleansing of the indigenous Nigerian 

people by foreign bandits. 

Danjuma then warned that “the 

ethnic cleansing must stop now otherwise 

Somalia will be a child’s play”. 

He also admonished the people of 

Taraba and all the indigenous people 

of Nigeria to rise and defend themselves 

against attacks by marauding 

herdsmen in some parts of the country, 

or continue to suffer casualties. 

“You must rise to protect yourselves 

from these people; if you depend on 

the armed forces to protect you, you 

will all die. “I ask all of you to be on the 

alert and defend your country, defend 

your state,” he advised. 

An enraged Danjuma charged the 

people to resist any attempt by the 

Fulani herdsmen in whatever guise to 

grab ancestral land of the indigenous 

Nigerians even as he denounced the 

military authorities accusing them of 

complicity in the violent incidents by 

providing protection for the killers. 

“This ethnic cleansing must stop in 

Taraba, and it must stop in Nigeria. 

These killers have been protected by 

the military; they cover them and you 

must be watchful to guide and protect 

yourselves because you have no other 

place to go,” he said. 

Danjuma’s anger is coming on 

the heels of the incessant Fulani 

herdsmen attacks in parts of Nigeria, 

especially in Benue, Plateau, Taraba 

states and other parts of the Middle 

Belt, in the last three months, which 

have killed close to 1,500 people and 

displaced many others. 

The civil war veteran in his latest 

statement perhaps has confirmed 

the fear of many Nigerians who have 

expressed concerns that President 

Muhammadu Buhari has deliberately 

refused to take decisive actions 

against his Fulani kinsmen. 

It also becomes even more dangerous 

for indigenous communities 

following the recent attempt by the 

Nigerian Police to allegedly mop up 

illegal arms within Nigerian indigenous 

communities whereas it has 

allegedly allowed the Fulani herdsmen 

to carry about all manner of 

dangerous weapons with which they 

carry out their dastardly acts, which 

suggest that the herdsmen could be 

perfecting an ethnic agenda with 

state backing. 

The gale of dereliction of duty or 

more appropriately, the alleged connivance 

of the security operatives with 

the Fulani herdsmen began to gain 

real currency during the unprovoked 

attacks in Enugu state in April 2016. 

When the Fulani herdsmen attacked 

Ukpabi Nimbo in Uzo-Uwani Local 

Government Area of the State in 2016, 

the Governor, Ifeanyi Ugwuanyi, reportedly 

told a bemused nation that 

before the attacks, he had received 

security reports and mobilised all 

the security agencies to nip it in the 

bud. But to his chagrin the herdsmen 

invaded the community and killed 

close to 60 people and disappeared 

without a trace even with the presence 

of the security forces. Suddenly the 

security operatives sprang to action 

when a group of youths decided to 

raise issues and began indiscriminate 

arrests of the youths. 

In Agatu, Benue State in February 

2016, the Fulani attacked the 

community allegedly in the full glare 

of security forces and killed about 

500 people, displacing many others. 

No arrests were made. The killings 

continued and the Fulani allegedly 

claimed brazenly that they must be 

given grazing land at a point and 

sometime later, they wanted cattle 

colony but the indigenous communities 

are rising up to the challenge. 

Then the one that perhaps took the 

most share of barbarity in recent times 

were the attacks in Logo, KatsinaAla 

and Guma local governments in the 

same Benue state, in January 2018, 

where 73 were killed and their bodies 

mutilated. While the 73 victims 

were being given mass burial, the 

state authorities, especially the Minister 

of Defence, Mansur Dan Ali and 

Inspector General of Police, Ibrahim 

Idris, were quoted to have blamed 

the Benue state government for the 

anti-open grazing law enacted by the 

state government. 

President Buhari came under 

intense criticisms for his alleged 

lackadaisical approach to the herdsmen 

crisis. Then he woke up from 

his slumber and embarked on visits 

to areas heavily affected by the crisis. 

He visited Taraba, he visited Plateau, 

Nasarawa and Benue States to assuage 

the feelings of the traumatised. 

But even as he visited these states, the 

violence heightened and more people 

were killed. 

Benue state governor, Samuel 

Ortom, has been reduced to a wailing 

governor, as his people have been 

rendered hopeless amidst the security 

threats facing them in their ancestral 

land. His frustration led to the call for 

state police as he accused the federal 

security agencies of looking the other 

way while is people are massacred. 

The governor at a point called on his 

people to defend themselves. 

And in quick succession, Plateau 

state, the traditional battle field of the 

Fulani attacks over the years, again 

came under devastating attacks last 

week, even after Buhari had paid a visit 

to the state to address the lingering 

crisis there. Residents of the state had 

said that the pattern and sophistication 

of the Fulani militia invasions and 

attacks in Plateau suggest that it was 

a choreographed attacks by people 

recruited and paid for their services. 

Kogi State, whose governor, Yahaya 

Bello, had promised to provide 

Danjuma 

thousands of hectares of land for 

the Fulani cattle-rearers, had a taste 

of the Fulani fury last week when a 

traditional leader and about 10 others 

were killed and their homes razed, yet 

the security agencies are sitting still. 

Some Nigerians have also joined 

the list of those calling for self-defence 

against the Fulani herdsmen rampage, 

but this admonition can only 

lead to an uglier scenario and a possible 

reprisal against the Fulani, which 

may cause anarchy in the country. 

An analyst, who wished to remain 

anonymous, recently posited that the 

victims of Fulani herdsmen should 

embark on reprisals. He said, “It takes 

courage to defend oneself. If we start 

attacking them with whatever we have 

then Buhari will sit up because there 

will be internal mutiny in the army. It 

only takes a people that have guts to 

lead the attack and you will see that 

others will follow. 

“A reprisal attack by the south on 

the herdsmen will surely trigger a 

serious war that will sink Nigeria. It 

takes a people that have the audacity 

to start killing the herdsmen and you 

see others follow and by then Buhari 

will sit up or Nigeria will break.” 

The political backlash of the alleged 

Buhari’s inaction and tacit 

support of the military to the Fulani 

is now glaring. Recalled that former 

President Olusegun Obasanjo, had 

issued a letter in January to Buhari, 

accusing the President among other 

things of failing to curtail Fulani 

herdsmen rampage. Then in February, 

another former military President 

Ibrahim Babangida also in a letter to 

Buhari, warned about the incessant 

attacks and predicted that it is capable 

of triggering unprecedented crisis that 

may sink the country if not addressed. 

They former leaders condemned 

He also admonished 

the people of Taraba 

and all the indigenous 

people of Nigeria to rise 

and defend themselves 

against attacks by 

marauding herdsmen 

in some parts of the 

country, or continue to 

suffer casualties 

Buhari’s actions and advised him not 

to seek reelection in 2019 elections. 

Now Danjuma, appearing more 

direct and brutal in his accusations 

of the security support for killers and 

to a great extent labeling the President 

Buhari as backing the murderers, analysts 

said that Buhari does not stand 

a chance in the 2019 elections if he 

seeks reelection stressing that these 

retired army officers are kingmakers 

in Nigeria and now that they have 

discredited Buhari, his reelection bid, 

though yet to be declared, is already 

in shambles. 

A member of one of the political 

parties, who wished to remain anonymous, 

had told BusinessDay that 

Buhari’s electoral fortunes have been 

greatly diminished by the untamed 

Fulani violence across the country. 

He stressed that the class of retired 

generals have concluded plans to 

work with civil society organisations, 

religious groups, professional bodies, 

market women, and political parties, 

student groups on the need to unite 

and unseat Buhari, who they largely 

regard as a “repugnant and nepotistic 

leader.” 

From Benue state BusinessDay 

can deduce that Buhari’s recent visit 

to the state and his interaction with 

the people and their governor have 

exposed to the people that Buhari 

is probably too dangerous to be 

trusted with power for a second term 

following the herdsmen crisis. The 

Benue citizens, who told Buhari the 

bitter truth, are perceptively tilting 

towards anti-Buhari position in the 

2019 election. 

BusinessDay gathered that Plateau 

is also agog with a burgeoning anti 

-Buhari sentiment and Kogi people 

are at the moment said to be having 

a rethink about the Buhari choice 

following the latest attacks in the 

state while Taraba state BusinessDay 

gathered will reject him again in 2019. 

Elder statesman and a chieftain 

of the Pan- Yoruba socio- cultural organization, 

Afenifere, Ayo Adebanjo, 

also accused Buhari of aiding and 

abetting the Fulani to kill Nigerians. 

Adebanjo said this while participating 

in a gathering of ethnic nationalities 

in recent times, organised by leaders 

drawn from the Niger Delta, South 

West, South East and the Middle Belt. 

Adebanjo said: “I accuse the president 

of aiding and abetting the cattle 

rearers to kill us and I mean it. I don’t 

want Adesina (President’s Spokesman) 

to come and say it’s not true. 

What the President should do to 

refute my accusations is to declare 

the cattle rearers a terrorist organisation. 

How many people did IPOB kill 

before he declared them a terrorist 

organisation? 

“It should not take him anything 

to disarm the cattle rearers. They 

don’t rear cattle with ak47. The people 

must be disarmed and arrested,” he 

declared. 

The People’s Democratic Party 

(PDP) said the call by the former 

minister of defence, Danjuma, that 

Nigerians should defend themselves 

against killers, is yet another testimony 

of the tragic situation which 

the Buhari Presidency and the All 

Progressives Congress (APC) have 

dragged the nation. 

The party said General Danjuma’s 

statement justifies its stand that the 

Buhari Presidency and the dysfunctional 

All Progressives Congress 

(APC) must be held responsible for 

our agonizing state, adding that, 

Nigerians are now daily paying the 

supreme price because of the failures 

of a grossly incompetent leadership 

and a deceitful ruling party. 

The PDP, in a statement issued by 

its National Publicity Secretary, Kola 

Ologbondiyan, on Sunday, said the 

pronouncement, coming from an 

army general, a former chief of army 

staff and former defence minister 

of Danjuma’s status, is weighty and 

directly reflects the ugly situation in 

the country under the APC. 

It said the fact that citizens and 

communities across the country are 

now resorting to self-defence is also 

a clear demonstration that Nigerians, 

across board, have completely lost 

confidence in President Buhari and 

the APC. 

“Nigerians are no longer feeling 

secured in their land. Our country 

has, in close to three years, assumed 

a status of killing field where defenceless 

citizens are despoiled, raped and 

mowed by insurgents and marauders 

in Benue, Taraba, Yobe, Gombe, Kaduna, 

Adamawa, Borno, Plateau, Nasarawa, 

Rivers, Enugu, Kogi, among 

other states. 

“Unfortunately, the Buhari-led 

APC federal government remains 

aloof and has failed to take decisive 

steps that will apprehend the masterminds 

of the carnage. 

“Instead, what we are witnessing 

are complete government insensitivity, 

allegations of complicity and 

compromise of security around soft 

targets and dishing out of false information, 

as was the case in Benue, 

Yobe, Taraba and other states where 

Nigerians have come under heavy 

attacks from marauders. 

“More intriguing is that the Presidency 

and the APC Federal Government 

have refused to come out clear 

on their roles in the alleged compromising 

of security in troubled areas, 

particularly the reported withdrawal 

of troops from Dapchi prior to the 

abduction of the schoolgirls. 

“Nigerians are also yet to see the 

action taken by President Buhari 

against the Inspector General of 

Police, IGP Ibrahim Idris, for flouting 

the presidential orders that he should 

relocate to troubled Benue in the heat 

of attacks on the state,” he said. 

The die is cast and if the Nigerian 

populace heeds the advice of Danjuma, 

there is enough anger to exploit 

to inflict perhaps the most heinous 

attacks against the herdsmen, with 

unimaginable consequences.


C002D5556 

BUSINESS DAY 

19 

ECOWAS Court Registrar laments dangers of unequal 

application of instruments on civil, political rights 


The ChiefRegistrar 

of the Community 

Court of the 

Economic Community 

of West 

African States (ECOWAS 

Court) Tony Anene-Maidoh 

has blamed the unequal 

application of international 

and regional instruments 

that confer civil and political 

rights on citizens for the resort 

to opposition, litigations 

and social unrest by citizens 

in ECOWAS Member States. 

Anene-Maidoh said this 

during a United Nations 

organized panel discussion 

on the Adjudication of Civil 

and Political Rights held in 

Dakar, Senegal, a statement 

issued by the media officer of 

the ECOWAS Court Ovadje 

Elohor, made available to 

BusinessDay at the weekend 

said. 

He said “when civil and 

political rights are not guaranteed 

to all as part of equal 

protection of laws, or when 

such guarantees exist on 

paper but are not respected 

in practice, opposition, legal 

action and even social unrest 

may ensue.” 

Anene-Maidoh characterised 

Civil and Political Rights 

as a fundamental part of 

international human rights 

and considered as first generation 

rights that guarantee 

equal protection under the 

law for citizens. 

The Chief Registrar, who 

spoke on Jurisprudence of 

the “ECOWAS Court of Justice 

on Civil and Political 

Rights”, said that ECOWAS 

has through a plethora of 

regional and international 

instruments mainstreamed 

the respect and protection 

of human rights in the sub 

region and provided the necessary 

legal framework for 

the promotion, protection 

and respect of human rights. 

“Among them are the 

ECOWAS Protocol on Democracy 

and Good Governance 

which guarantees the 

political rights of Community 

citizens particularly in the 

context of full participation 

in their government, free, fair 

and transparent elections 

as well as the African Charter 

on Human and Peoples 

Rights which guarantees 

Political Rights,” he said. 

He said further during 

the one -day discussionthat 

the Court has relied on the 

provision of the regional 

Protocol on Democracy and 

Good Governance, the African 

Charter and the International 

Covenant on Civil and 

Political Rights in enforcing 

political rights. 

In demonstration of this 

disposition, he said that the 

Court has held that human 

rights protection constitutes 

a cardinal and fundamental 

value for the Community 

thereby contributing to an 

emerging human rights regime 

in West Africa exemplified 

by the rigour of its 

pronouncements that has 

attracted international acclaim, 

citing various cases 

decided by the Court. 

Through these pronouncements, 

he said there 

is an increasing consciousness 

among Community 

citizens and other persons 

within the jurisdiction of 

Member States that they 

have access to a regional 

court to seek redress for human 

rights violation without 

exhausting local remedies 

while Member States are 

aware that they can be held 

accountable for their treaty 

obligations, the statement 

added. 

In discharging its fourfold 

mandate, the Chief 

Registrar said that the Court 

has also tried to maintain 

good relations with the national 

courts of Member 

States by insisting that it 

would not entertain matters 

reserved for the domestic 

court or metamorphose 

into a domestic court by emphasizing 

its international 

character. 

“A key element of the relationship 

between the ECO- 

WAS Court of Justice and the 

National Courts of Member 

States is the constant dec- 

laration of the Court that it 

is not an Appellate Court or 

Court of Cassation over the 

domestic Courts of Member 

States,’ the Chief Registrar 

added, citing a very long line 

of cases through which it has 

affirmed the mantra that it 

is not an Appellate Court,” 

he said. 

The ECOWAS Court 

was set up under the 1993 

ECOWAS Revised Treaty 

originally as a Community 

court but with the amendment 

of its 1991 Protocol by 

Supplementary Protocol A/ 

SP.1/01/05 of January 2005, it 

was given the jurisdiction to 

determine cases of violation 

of human rights that occur in 

any Member State. 

The Supplementary Protocol 

also granted individuals 

and corporate bodies 

direct access to the Court, in 

respect of certain causes of 

action, an amendment that 

granted the court four (4) 

distinct mandates- a Community 

Court, an Arbitration 

Tribunal, an ECOWAS Public 

Service Court and a Human 

Rights Court. 

Hacking allegations: PDP slams 

Presidency over alleged false claims 


The People’s Democratic 

Party (PDP) 

has denounced 

the Presidency for 

falsely accusing it of hacking 

into President Muhammadu 

Buhari’s personal data in the 

run up to the 2015 general 

election. 

The party said President 

Buhari’s handlers decided 

to concoct the fabrications 

just to divert public attention 

from the overwhelming 

national and international 

rejection of their administration 

particularly the 

Bill Gates’ verdict on the 

economy. 

PDP National Publicity 

Secretary, Kola Ologbondiyan, 

in a statement on Saturday, 

said the Presidency, 

in its haste to dish out lies, 

failed to realize that contrary 

to its claims, the report they 

relied upon did not even 

mention the PDP or any of 

its officials and that it even 

exonerated former President 

Goodluck Jonathan as 

having no knowledge of the 

alleged scam. 

“Since the PDP has never 

been involved in hacking 

into the any person’s data, 

we decided to peruse the 

documents and publications 

in the Guardian UK 

relied upon by President 

Buhari’s senior special assistant, 

Shehu Garba, only 

to discover that none of them 

alluded to any involvement 

of the PDP or any of our officials 

or members, directly 

or indirectly of being in any 

way whatsoever a part of the 

said saga. 

“It is incontrovertible that 

the documents had clinically 

stated that, “there is no suggestion 

that Jonathan knew 

of the covert operation.” 

Nigerians must therefore 

be shocked at the extent the 

Buhari-led Presidency can 

go in its penchant for beguiling, 

contrivance, deceit, 

fabrication and lies. 

“Like a bunch of famished 

broom, it is clear that the 

sinking Buhari Presidency 

has become desperate in its 

bid to divert public attention 

from its multifarious failures 

and damning verdicts from 

national and international 

figures,” the PDP said. 

The main opposition party 

said further that it is laughable 

for the Presidency to 

say that the PDP is afraid of 

elections stressing that this 

is the same Presidency that 

recently informed Nigerians 

that President Buhari was 

delaying his declaration for 

2019 for fear of political opponents. 

“Who is afraid of election? 

Is it the PDP or the 

President’s All Progressives 

Congress (APC) that has 

failed to conform with its 

constitutional provision of 

constituting a Board of Trustees 

(BOT); a party which is 

so afraid to conduct even 

internal election and had 

to extend the tenure of its 

executives because its stuck 

2019 presidential candidate 

is even afraid of other possible 

contestants within its 

fold? 

“From the actions of the 

APC, it is manifest that the 

party is not only mortally 

afraid of elections but engaging 

in all manner of shenanigans 

to suppress opposition 

in our nation. 

“Nigerians are aware of 

the show of shame in Kano 

state, earlier today, when the 

APC Federal Government, 

out of fear of our soaring 

support from Nigerians, 

used the police to attack 

our members and stopped 

our mega rally in Gaya Local 

Government Area of the 

state. 

“Our message to the Presidency 

and the APC is that 

lies, propaganda and use of 

force will not save them from 

the looming electoral disgrace 

as Nigerians are tired 

of their misrule and are now 

rallying on our repositioned 

PDP to salvage our nation 

come 2019,” the PDP said. 

Oyo APC candidates for LG, LCDA 

elections emerge through consensus 


Candidates of the 

All Progressives 

Congress (APC) 

for the proposed 

May 12 election into the 33 

Local Government and 35 

Local Council Development 

Areas of Oyo State were 

elected through indirect 

primaries. 

The State Governor, Abiola 

Ajimobi; Speaker of the 

House of Assembly, Michael 

Adeyemo; State Chairman 

of the APC, Akin Oke; his 

Deputy, Isiaka Alimi; and 

Secretary, Mojeed Olaoya, 

supervised the election, 

which took place at Lafia 

Hotel, Ibadan. 

The names of the consensus 

chairmanship candidates 

were read at the occasion, 

while councillorship 

aspirants were directed to 

visit their LGs and LCDAs 

to check those that also 

emerged through the consensus 

arrangement. 

Addressing delegates at 

the event, the governor said 

that the consensus arrangement 

was adopted in line 

with Section 20A, Subsection 

1,2,3 and 4 of the party’s 

constitution. 

He said that the section 

empowers party’s leaders 

and stakeholders across the 

state to deliberate and reach 

Abiola Ajimobi 

a consensus on how to pick 

candidates for elections, 

in order to avoid what he 

called bad blood within the 

party’s hierarchy. 

The governor explained 

that the desire of the party’s 

leadership to forestall rancour 

and the determination 

to go into the election as a 

united entity informed the 

adoption of the consensus 

arrangement. 

Ajimobi said, “The adoption 

of consensus was a 

decision of the party’s stakeholders 

to avoid disunity 

and acrimony that could 

lead to failure. 

“Let us thank God for the 

peaceful outing. You will see 

that most election primaries 

have always been very rancorous, 

but in our own case, 

it was very peaceful and was 

conducted in line with the 

constitution of our party. 

“Particularly, if you look 

at page 74, Sections 1,2,3,4 

of our constitution it was 

clearly stated that once you 

have elected members from 

the wards to the various 

levels of the party organs, 

you can have them as a collegiate 

group. 

“They can then become 

delegates that will participate 

and vote at a designated 

location for candidates 

of their choice; and that is 

what we have done today. 

“We have been able to 

bring together all elected 

party members, National 

and State Assembly members 

representing the state, 

including leaders from the 

local government and ward 

levels. We all agreed to have 

consensus candidates.” 

The governor said that the 

party also consulted women 

leaders, youth groups and 

other stakeholders before 

the emergence of the candidates. 

He expressed confidence 

that the APC would be the 

party to beat during the 

election giving its cohesion 

and rancor-free primaries 

ahead of the election.

20 

BUSINESS DAY 

C002D5556 


Supported 

Financial inclusion, a catalyst 

for Nigeria economic growth 

ENDURANCE OKAFOR 

At a time when Nigeria’s 

economic 

growth is at a fragile 

state, financial 

inclusion could not 

be more important. Financial 

inclusion means individuals 

and businesses, irrespective of 

their income level, have access 

to affordable and useful financial 

services and products which 

are beneficial to them and the 

economy at large. 

Nigeria recorded 1.92 percent 

Gross Domestic Product 

(GDP) growth year-on-year 

in the fourth quarter of 2017, 

representing the third consecutive 

expansion in the positive 

trajectory after exiting its worst 

recession in second quarter of 

last year. 

Although the growth remains 

fragile and not inclusive. Analyst 

are however of the opinion that 

financial inclusion can be a catalyst 

to achieving inclusive growth 

in Africa’s largest economy. 

Given that low-income earners 

constitute a significant portion of 

the population and have a huge 

chunk of the economy’s idle 

funds, increased access promotes 

capital accumulation, credit creation, 

increased economic activity, 

and increased investment. 

The World Bank cited out the 

fact that a bank account is a step 

to broader financial inclusion. 

Therefore an establishment of 

an account relationship can 

pave way for the customers to 

avail the benefits of a variety of 

financial products, which are 

not only standardized, but are 

also provided by institutions 

that are regulated and supervised 

by credible regulators that 

ensures safety of investment. 

Bank accounts can also be 

used for multiple purposes, 

such as, making small value 

remittances at low cost and purchases 

on credit. As such bank 

account provides the account 

holder not only a safer means 

of keeping his/her fund but also 

provides access to use of other 

low cost and convenient means 

of transaction. 

For the regulator, transparency 

in the flow of transactions 

makes monitoring and compliance 

easier, while for the economy, 

increased financial makes 

capital accumulation easier and 

more transparent. 

And this in a long run will 

lead to economic growth and 

development, as the government 

will also be able to generate 

revenue from transactions 

that it monitor. Analysts that 

gave their view on the issue were 

however of the opinion that the 

larger money in the economy 

are in the informal sector and 

it can impact positively on the 

economy of Nigeria if only they 

can be included. 

The World Bank however, 

stated that 59 percent of the 2 

billion adults worldwide who 

do not have access to a basic account 

cited lack of funds as the 

barrier to opening one. 

An expert who spoke to BusinessDay 

was of the opinion that 

the high cost of running the affairs 

of the bank are the reasons 

why access to financial services 

in the country are expensive, 

although he said the banks are 

doing their best to ensure they 

bring down the costs of operating 

and having a bank account. 

Consequence of financial 

inclusion on the other hand is 

to minimize the scale of economic 

activities that can be 

financed and hence, limiting the 

potentials for higher economic 

growth. 

The Nigeria government in 

its quest to ensure a larger number 

of its citizens are financially 

included has introduced different 

policies and strategies that 

can help achieve this aim and 

they include; the adoption of the 

rural banking programme in the 

late 1970. This was introduced 

by the Central Bank of Nigeria 

(CBN) in 1977 with the aim of 

achieving one branch bank in 

each of Nigeria’s local government 

areas. 

One of the critical initiatives 

in this same direction was 

the incorporation of Financial 

System Strategy (FSS2020). The 

initiative represents a holistic 

and strategic road map and 

framework for developing the 

Nigerian financial sector into a 

growth catalysts that will enable 

Nigeria be one of the 20 largest 

economies by 2020, as compiled 

from the CBN website. 

Nigeria currently have 58.4 

percent financial inclusion rate 

but it wish to achieve 80 percent 

and 20 percent exclusion rate 

by 2020. 

“The target is attainable, 

considering the current level 

of technology in the banking 

sector, as it makes possible to 

reach people who were initially 

unreachable and the insurance 

companies too are taking 

leverage of technology,” Ayo 

Akinwumi, Head of Research 

FSDH merchant bank told BusinessDay 

by phone 

Heritage Bank empowers 5, 544 pupils on financial literacy to secure economy 

As part of efforts to support 

the Central Bank 

of Nigeria’s Financial 

Literacy Day, which 

marks the Global Money Week, 

Heritage Bank Plc empowered 

5, 544 (pupils and teachers) in 

11 secondary schools across 

the country. 

The CBN’s Financial Literacy 

Day is a globally celebrated 

event to promote savings, drive 

Financial Inclusion, invariably 

gain a higher standard of life 

and secure the economy, which 

is the crux of the Bank’s financial 

literacy programs. 

For the fifth year running, 

Heritage Bank has successfully 

commemorated the CBN 

Financial Literacy Day. 

This year, CBN directed 

Heritage Bank to adopt schools 

in Benue, Adamawa, Jigawa, 

Plateau, Imo, Bayelsa and Ogun 

States for Financial Literacy 

workshop and the day afforded 

5, 544 participants (teachers 

and students) with financial 

education. 

The workshop was premised 

on the Global Money Week 

theme: “Money Matters Matter”. 

Students and teachers 

were taught several concepts 

including; the role and management 

of money, needs and 

wants, benefit of budgeting, 

spending and savings. Whilst, 

others include savings with a 

financial institution, the basics 

of financial education and Heritage 

Bank savings product for 

young persons (Bud Account). 

Addressing some of the 

participants, the CEO/MD 

of Heritage Bank, Ifie Sekibo 

reiterated the importance for 

young Nigerians to financially 

and economically equipped for 

the development of the nation. 

According to him, Nigerian 

youths and those around the 

world need to be fortified economically 

via financial literacy 

knowledge acquisition, which 

will foster the importance of 

understanding savings culture 

and entrepreneurship. 

In line with its mission to 

create, preserve and transfer 

wealth across generations, 

Sekibo said Heritage Bank 

developed the HB Bud Savings 

Account to help its customers 

to create wealth for the children 

and provide them a future 

of financial independence. 

“As a bank committed to 

creating, preserving and transferring 

wealth from one generation 

to the next, we have 

consistently maintained our 

position as the leading brand in 

financial inclusion initiatives 

by leveraging on CBN’s mandate 

to impact schools across 

the geopolitical zones and improve 

financial inclusion,” the 

MD reiterated. 

According to him, opening 

a savings account for a child is 

one of the best ways to introduce 

him/her to that concept 

of saving at an early age. 

He explained that one of the 

ways the bank has continued 

to promote savings amongst 

children is the introduction of 

“My day as a banker” which is 

also the Heritage Bank’s unique 

way of promoting financial literacy 

among children, which is 

the core of the HB Bud Savings 

Account, specially designed to 

promote savings habit among 

children and youths. 

Meanwhile, other senior 

employees of the bank visited 

other select schools in 

the country as directed by the 

apex bank to promote financial 

literacy. 

According to Heritage Bank, 

today’s children and youth 

should become empowered 

economic citizens, capable of 

understanding the importance 

of saving, and equipped with 

the skills to be employed and 

create their own livelihoods. 

The bank wants young people 

to learn to manage their money 

wisely. By empowering children 

and youth, Heritage Bank 

can help them create a positive 

wave that will expand from 

themselves, to their families, 

to entire communities and the 

economy at large.


C002D5556 

BUSINESS DAY 

21 

Supported 

Who should lead the delivery 

of digital financial services? 

IBUKUN TAIWO & 

OLAYINKA DAVID-WEST 

There’s an ongoing debate 

on who should 

be licensed to deliver/lead 

the digital 

financial services 

race, especially mobile money 

operations. At the moment, we 

have three interested parties: 

i) independent Mobile Money 

Operators (MMOs); ii) deposit 

money banks (DMBs); and 

iii) mobile network operators 

(MNOs). 

The current licensing guideline 

permits MMOs and DMBs 

to lead and run non-bank led 

and bank-led models respectively. 

However, while MNOs 

are permitted to forge partnerships 

with licensees, they are 

prohibited from leading mobile 

financial services. 

However, there is a strong 

argument for a cross sectional 

mix of the three in order to drive 

financial inclusion. 

First of all, let’s restate the 

magnitude of the problem that 

lies ahead of us. 

The problem: Nigeria has over 

40 million adults living day to 

day without access to financial 

services. Nigeria has a target of 

crunching exclusion to an all 

time low of 20 percent by 2020. 

Financial services sector capacity: 

With 24 providers and a 

total combined network of about 

6000 branches, banks have been 

able to successfully onboard 

31.4 million unique individuals 

into the formal financial service 

ecosystem. At the moment, 

banking services are the entry 

point into the financial services 

ecosystem with bank accounts 

being the metric unit of financial 

inclusion. Notwithstanding 

banking’s position as the dominant 

financial services provider, 

the ecosystem includes insurance, 

pensions and investments. 

In comparison to the establishment 

of bank branches, the 

advantage of mobile money 

operations is that extending it 

via an agent network requires 

relatively less capital. Globally, 

mobile money has championed 

financial inclusion efforts because 

it runs on a cheaper and 

flexible model that thrives in 

even rural and remote areas, 

provided telecommunications 

services exist. So far, our licensed 

mobile money providers have acquired 

3.8 million mobile money 

customers, many of whom are 

already formally banked. 

Together, these two provider 

segments - banks and MMOs - 

have been able to reach about 

41 percent of the population 

with another 10 percent being 

served by informal providers 

like thrift collectors, alajo and 

esusu. Since 2012, there has not 

been any significant progress 

in financial inclusion as the 

rate of inclusion seems to have 

plateaued and even receded 

slightly between 2014 and 2016. 

Teaching us an important lesson 

- not only do we have to get 

access to people, but we have to 

keep them transacting by providing 

appropriate and relevant 

products and services. 

Then we have the Mobile 

Network Operators aka telcos 

who are not only actors in the 

financial inclusion equation, 

but have dominated the industry 

in other markets. Their 

telecommunications network 

are the rails upon which mobile 

financial services function and 

both entities - the banks and the 

MMOs - employ in the services 

to customers. 

Which model works best, 

bank-led or telco-led – or a hybrid, 

where banks, telcos and 

independents play separate and 

non-overlapping roles? That’s a 

debate for a future article. But 

the financial inclusion mandate 

we have is quite clear. That is, 

enabling poor people access the 

financial services they need to 

improve their lives and escape 

the scourge of poverty. In a country 

like Nigeria where so many 

people live excluded from financial 

services, if we remove mobile 

services, the number of excluded 

people would shoot up further. 

So it’s not about banks or telcos: 

the key issue to keep at the fore is 

how do we transform lives? 

Which brings us to the original 

question albeit with more 

context. Seeing as financial inclusion 

has plateaued, and there 

is still a ticking clock on the 

national strategy, who should 

lead the delivery of DFS? 

It is not as though, telco 

participation is a magic bullet 

to financial inclusion. There 

are additional market facing 

barriers. Allowing proper telco 

participation will solve only one 

of these which is access (and 

even that is not an easy feat 

as resources would need to be 

deployed into the development 

of agents through conversion 

of existing retail stores and 

franchises, and mass rollout of 

additional service points). There 

still remain several other barriers 

- affordability, agent liquidity, 

awareness and so on (see 

our 2016 State of Market report 

for an exhaustive list). 

Ironically, even if telcos were 

suddenly allowed to lead mobile 

money operations, the agents 

at the edge of the market would 

still need banks for their liquidity 

needs. Seeing as the majority 

of transactions agents facilitate 

is cash in, cash out (CICO), 

when an agent runs out of physical 

cash but has e-money on 

account, s/he would head to the 

bank to get more cash or rebalance. 

Whichever way we look 

at it, we still need collaboration 

to fulfil our collective agenda of 

inclusion. 

In short, the blend of models 

and solutions has to be right, 

and that can only be achieved 

through real world evidencebased 

research and experimentation. 

The best scenario for 

progress involves synergy and 

collaboration. All three players 

have strengths and advantages 

acquired over time which would 

benefit the ecosystem in our 

quest to quell high financial 

exclusion. 

The truth remains, addressing 

financial inclusion in Nigeria 

is a Herculean task and taming 

the monster requires all hands 

on deck. If our benchmark series 

(which we published several 

weeks ago) taught us anything, 

it is that there are several ways 

to skin a cat. What worked for 

country A is not guaranteed to 

work for country B, but we won’t 

know until we start trying. After 

all, in this age of digital, the 

mantra of success is - fail fast 

and fail forward. 

It’s a brave new world. Technology 

companies such as Amazon, 

Alphabet Inc, Alibaba and 

Facebook/WhatsApp have already 

begun creeping into the 

financial services space. And it 

seems to be a global movement. 

So the answer to the question 

of who leads DFS delivery 

is - everyone. Banks, MMOs 

and telcos. We need all hands 

on deck. 

Olayinka David-West and 

Ibukun Taiwo are members 

of the Sustainable and Inclusive 

Digital Financial 

Services initiative of the 

Lagos Business School

C002D5556 

22 BUSINESS DAY Wednesday 28 March 2018 

In association with 

ag@businessdayonline.com 

Absence of paste processors 

costs tomato farmers N10bn loss 

Stories by JOSEPHINE OKOJIE 

The absence of functional 

tomato paste processing 

facilities in Nigeria has 

resulted in an estimated 

loss of N10 billion since 

the start of the 2018 dry season 

farming, the commodity growers 

association has said. 

“This season alone our members 

have lost N10 billion due to poor 

market and lack of guaranteed off 

takers. The open market cannot 

mop-up all the harvest,” Sani 

Danladi Yadakwari, national 

general secretary, Tomato Growers 

Association of Nigeria (TOGAN) 

said in a statement made available 

to BusinessDay. 

The off-takers, which are 

processing plants operations have 

stalled as billions of naira worth of 

investments made in them have 

failed on account of ineffectual 

implementation of the tomato policy. 

“Our farmers have continued to 

remain in perpetual poverty and the 

poverty level will continue to rise if 

the necessary steps are not taken,” 

Yadakwari said. 

The Dangote Tomato Processing 

Factory, which is the biggest paste 

and concentrate manufacturer in 

Nigeria, started in February 2016 

suspended operation in May 2017 

owing to lack of fresh tomatoes due 

the outbreak of Tuta Absoluta, a 

Lawrence Kent, senior programme manager, Bill & Melinda Gates Foundation; James Anbua, Benue state commissioner 

for Agriculture; Nteranya Sanginga, director-general, International Institute for Tropical Agriculture (IITA);May-Guri Saethre, 

deputy director-general-research &development, IITA and Alfred Dixon, leader-cassava weed management project at the 

Cassava Weed Management Project Annual Review & Work planning meeting at IITA ,Ibadan recently. 

devastating pest of the commodity. 

Since then, the $20 million factory 

that needs about 40 trailer loads 

of fresh tomatoes daily, equivalent 

to 1,200 tons for production has 

not been able to off-take from 

thousands of farmers it has entered 

an agreement with. 

“Dangote Farms and Savannah 

Foods who have off-take 

arrangements with farmers have 

remained handicapped, unable to 

produce and their factories shut 

down as these packers of triple 

concentrate in country rely heavily 

on importation at the detriment 

of Nigeria farmers and industries,” 

Yadakwari said. 

“These Indigenous factories 

whom off-take tomatoes from 

farmers are shutting down because 

of lack of buyers, because theses 

packers would rather import from 

China and other countries,” he 

further said. 

Nigeria currently produces 1.5 

million tons of tomatoes per annum, 

with 0.7 million metric tons postharvest 

losses. Tomato demand in 

Nigeria is put at 2.2 million metric 

tons per annum, leaving a gap of 

700,000 metric tons, according to 

official data from the country’s 

Agricultural Ministry. 

Nigeria is the 13th largest 

producer of tomatoes in the world 

and second after Egypt in Africa, yet 

the country is the largest importer of 

tomato paste globally as the country 

is still unable to meet local demand. 

According to industry data, 

Nigeria is said to import an average 

of 150,000 metric tons of tomato 

concentrate per annum at a 

staggering value put at $170 million. 

The TOGAN secretary appealed to 

President Buhari to come to the rescue 

of tomato farmers in the country, 

adding that the association is not asking 

for subsidy from the government but 

for the full implementation of the 

tomato policy to allow local processors 

commence operation. 

Since the implementation of 

the tomato policy in May 2017, 

the Federal Government is yet to 

implement the policy of zero import 

duty on greenhouses, ban on the 

importation of tomato concentrate 

through land borders and increase 

in the tariff on tomato paste or 

concentrates through the seaports 

from five percent import duty to 50 

percent as well as a levy of $1,500 per 

metric ton payment. 

Key players say that the impact 

of the policy is yet to take effect due 

to the ineffective implementation 

of the policy, noting it as the major 

problem affecting the country’s 

tomato industry. 

Cros Agro secures AfDB/Grow Africa funding support 

Cros Agro Allied Limited, 

a member of BlackPace 

Group, with huge 

investments in potato, 

pulses and ginger value chain in 

Nigeria and Rwanda, has been 

selected for funding by Grow Africa 

and the African Development Bank 

(AfDB) joint venture to scale up its 

agric-investments in Nigeria and 

Rwanda. 

The fund support will help 

Cros Agro increase its number of 

investments along the potato, pulses 

and ginger value chain in both 

Nigeria and Rwanda. 

“Cros Agro Allied limited has 

been selected on the basis of its 

inclusive investments in potato, 

pulses and ginger in Nigeria and 

Rwanda,” the statement signed 

by both William Asiko, executive 

director, Grow Africa and Atsuko 

Toda, director-agricultural finance, 

African Development Bank said 

in a statement made available to 

BusinessDay. 

“The partnership between Grow 

Africa and AfDB aims to increase 

private sector investment along 

pre-agreed priority value chain 

in selected African countries in 

alignment with the economic 

transformation targets set by the 

bank in its long term strategic plan,” 

the statement added. 

Speaking on the offer by both 

institutions, Olusegun Paul Andrew, 

executive chairman, BlackPace 

Group said, “We are pleased to 

be part of this funding initiative 

put in place by these worldclass 

institutions and this clearly 

shows the level of commitment 

these institutions have placed in 

expanding the scope of investment 

in the agricultural sector in Africa. 

It is truly an amazing initiative and a 

welcome development.” 

“Whilst working towards this 

funding support, we are keen to 

fast track the implementation of 

our multi-million dollar potato 

processing facilities in both Nigeria 

and Rwanda. Increase our processing 

capacity at the Potato Chips factory 

to 500kg an hour as well as complete 

our 5000kg potato fries and potato 

flakes factory in both Nigeria and 

Rwanda in record time. 

“Off course this will go a long way 

in ensuring Africa’s food security 

agenda whilst creating jobs and 

stimulate economic activities in both 

countries and in the continent at 

large,” Andrew further said. 

According to the executive 

chairman, through the loan support, 

the firm will be advancing some of 

its key projects which include their 

potato farm projects, pulses and 

ginger projects in Kaduna as well 

as Katsina. 

“Cros Agro potato farm projects 

in Plateau state and Rwanda will 

receive huge boost by this funding 

thrust,” he said. 

WorldFish mulls research centre 

for fish production in Nigeria 

Wo rldFish, an 

international 

research organisation 

that harnesses 

the potential of fisheries and 

aquaculture to reduce global 

hunger and poverty is considering 

establishing a research centre in 

Nigeria to develop fish farming and 

aquaculture production. 

David Sheare, director- 

International Partnership, 

WorldFish stated this during a two 

day international stakeholders 

workshop in Abuja recently. 

In a statement made available 

to BusinessDay, Sheare said that 

the wish of the organisers of the 

workshop is to see necessary 

modalities developed for the 

establishment of a Nigerian 

Worldfish Development Centre. 

He explained that any country 

desirous of making success of its 

development programme must pay 

attention to priority, partnership 

and pipeline. 

In his keynote address, Heineken 

Lokpobiri, minister of state for 

Agriculture assured Nigerians that 

the government is poised to develop 

fish farming and aquaculture in 

Nigeria in order to overcome 

malnutrition and create wealth for 

women and young people. 

Lokpobiri commended 

WorldFish for selecting Nigeria 

as a focal country in his research 

development programme. 

“As you know, Nigeria is a large 

fish consuming nation and a net 

importer of fish and fisheries 

products,” Lokpobiri said. 

Nigeria’s current fish production 

is put at 1.03million metric tons, 

according to data from the National 

Bureau of Statistics (NBS). The 

country’s annual fish demand 

is estimated at 3.4 million MT, 

implying that the country has a 

demand-supply gap of 2.4 million 

MT. 

In his welcome address, 

Muhammed Muazu, directorfisheries 

and aquaculture, Federal 

Ministry of Agriculture described 

the country as the largest producer 

of catfish; hoping that with the 

capacity that will brought to the 

country by WorldFish, Nigeria will 

soon become a force to be reckoned 

with in area of tilapia production.

Wednesday 28 March 2018 C002D5556 


ag@businessdayonline.com 

‘Nigeria agric sector is responsive to incentives’ 

JOSEPHINE OKOJIE 

Bismarck Rewane, 

chief executive officer, 

Financial Derivative 

Company has said that 

the Nigeria agricultural 

sector is responsive to incentives 

such as interest rate, logistics and 

exchange rate amongst others. 

Rewane made the assertion at 

the recently held Nigeria-Britain 

Association seminar with the theme 

‘Agriculture: The New Goldmine.’ 

“The agricultural sector 

performed because it does not 

depend on foreign exchange and 

it is responsive of exchange rate as 

people were forced to grow more,” 

he said. 

“Nigeria’s agricultural value 

chain is underdeveloped and the 

focus has continued to remain on 

crop production.” 

He stated that the sector is 

expected to grow between four and 

five percent in 2018 and various 

opportunities exists across the 

The Oyo State government has 

paid compensations to about 

77 families whose lands were 

acquired recently for mass 

production of cassava in Otu near 

Iseyin. 

Isaac Ajiboye Omodewu, Oyo state 

commissioner for Lands, Housing, and 

Survey, presented the cheques to the 

beneficiaries at a brief ceremony in 

Otu, Itesiwaju Local Government Area 

of the state recently. 

Omodewu, an indigene of Otu 

himself, lauded the governor for 

abiding by the law and demonstrating 

that the state believes in the peace and 

security of its citizens. 

“It is the vision of the Oyo state 

governor to bring investors into the 

state and that is why he took it upon 

himself to ensure peace and security 

in the state for the comfort of the 

investors,” he said. 

“The community has agreed to 

release the land to the government 

and their compensations are being 

paid accordingly today. 

He said further that the 

compensation exercise has become 

necessary in view of the dictates of 

the land use act which puts all lands 

entire value chain while calling 

for policy consistency to drive the 

growth. 

In his presentation, Antti 

Ritvonen, country manager, 

Dizengoff Nigeria said that despite 

Cassava production: Oyo 

compensates land owners in Otu 

Adeniyi Aromolaran, secretary, Nigeria-Britain Association; Antti Ritvonen, country 

manager, Dizengoff Nigeria; Francisca Odega, head information & trade, 

Nigerian Export Promotion Council; Funmi Onabolu, president, Nigeria-Britain 

Association; Idiat Folorunsho, zonal manager, South-West Bank of Agriculture; 

Prince Falade, chairman-agric& agro allied group, LCCI and Edward Abraham, 

treasurer, Nigeria-Britain Association during the Nigeria-Britain agricultural 

seminal held in Lagos recently. 

in the state in charge of the state, 

but added that the onus is on the 

state government to compensate 

those whose lands are acquired for 

development. 

Wale Majolagbe, director of finance, 

Lexcel Group, and the representative 

of Allied Atlantic Distilleries, one of 

the investors of the mass cassava 

production said, “Since Oke-Ogun 

supplies most of the cassava we use, we 

decided to move to the 4,000 hectares 

of land available here for expansion.” 

“Activities will start on the land by 

the first week in April and the ethanol 

production plant will be ready in the 

next two years,” Majolagbe said. 

In his response to the gesture, 

AbdulFatai Niyi Adeagbo, chairman, 

Itesiwaju Local Government 

commended the state governor for 

promptly paying compensation to the 

owners of the acquired lands. 

He also counselled all beneficiaries 

to make judicious use of the fund. He 

assured the state government and 

the investor that the people in the 

community will work in close harmony 

with all stakeholders to guarantee 

the growth and development of the 

community and the state as well. 

the abundance of arable land in 

the country, only a small portion 

is being used for production and it 

is not efficiently utilised. 

“Nigeria potential in agric is 

really huge. If things are done 

‘Government must invest in agric 

to reduce unemployment’ 

YOMI AYELESO, Akure 

Olatunji Akomolafe, 

founder, Village Pioneer 

Project (VPP) has called 

on government at all levels 

to invest massively in agriculture to 

help address the country’s rising 

unemployment rate. 

Akomolafe made this assertion 

recently while playing host to 

students of Oro Community High 

School, who were on the farm for 

excursion. 

“When I returned from Germany 

in 1984, the youth unemployment 

was on the rise in the country and 

I thought the only way to combat 

youth unemployment, youth 

hopelessness, and joblessness was 

to create an avenue for training, 

production and research in 

agriculture where they will be able 

to learn the possibilities to be selfreliant,” 

Akomolafe said. 

“Agriculture is the most potent 

tool to combat the unemployment 

in Nigeria. It is important to choose 

integrated agriculture, which is 

having many agricultural activities 

right and resources efficiently 

utilised, Nigeria will be a global 

power house in food production,” 

Ritvonen said. 

“Nigeria ranks low in 

mechanisation in Africa and 

globally and this has continued 

to limit the country’s productivity. 

Yields can increase significantly 

through use of high quality seeds, 

inputs good farming practice and 

use of farm machines,” he said. 

He emphasized the need for 

farmers training on modern farm 

techniques and practice. 

Also speaking during the 

seminal, Funmi Onabolu, president, 

Nigeria-Britain Association said 

“We need to help people see the 

economic dimension and the 

opportunity in agric and its various 

value chains. Also how funds can be 

leverage for the sector.” 

“We hope that through 

interaction like can start taking 

advantage of the opportunities in 

the various value chain to ensure 

food security,” Onabolu said. 

together, starting from cultivation, 

multiplication, production 

processing, and utilization of waste 

to achieve the entire recycling of 

agricultural products. This is what 

we have been doing to reduce 

unemployment in the last 34 years,” 

he further said. 

He noted that agriculture is the 

most potent tool that can generate 

employment opportunities to the 

unemployed graduates, urging 

government to make the environment 

conducive for agribusinesses to 

thrive. 

He said his Village Pioneer Project; 

a non-government organisation was 

created 34 years ago to address the 

issue of youth employment in the 

country. He explained it was put 

together to exposed young Nigerians 

to agribusiness after their education 

and also trained them on the need to 

be self-reliant. 

While saying that over 3,000 

youths had been trained in various 

aspects of agribusinesses by the 

organisation, which had in turn 

made them financially independent, 

added that agriculture, is the future 

of the country. 

Oyo, investors 

collaborate on 

reforestation 


Oyo State government has 

signed a Memorandum of 

Understanding (MoU) with 

private investors on the need 

for reforestation of the degraded forest 

reserves in the pacesetter state. 

To this end, the Oyo state 

government is trying to restore 

depleted forests in the state through 

the collaboration with investors to 

ensure afforestation, while increasing 

the country’s forest cover. 

Oyewole Oyewumi, Oyo state 

commissioner for Agriculture, Natural 

Resources and Rural Development, 

speaking during the 20I8 International 

Day of Forest (IDF) held recently, said 

the move is yielding positive result, 

explaining that the degraded forests 

were as a result of illegal felling of trees 

in the state. 

He disclosed that government 

has placed surveillance on the forest 

reserves to apprehend those who are 

involved in illegal act. 

He however warned members of the 

public to desist from illegal tree felling 

and indiscriminate bush burning. 

Oyewumi, speaking through 

Ajimobi, Adetokunbo Adekunle, special 

adviser on Agriculture to Governor 

noted that the importance of trees in 

our society cannot be over-estimated, 

explaining that environment without 

availability of trees is prone to hazard 

and it is advisable for all to plant at 

least a tree so as to ensure a greener 

environment. 

While planting the trees to 

commemorate 2018 International Day 

of Forest, Oyewumi however called on 

all and sundry to imbibe tree planting, 

adding that planting of trees is now 

necessary in order to achieve greener, 

healthier, happier and sustainable 

environment. 

Speaking also during the IDF, David 

Oladiipo, patron of the International 

Institute of Tropical Agriculture (IITA) 

forest Centre, in his lecture with the 

theme ‘Forest for Sustainable Cities,’ 

explained that every 21st of March 

has been set aside to celebrate the 

International Day of Forest by the United 

Nations (UN) due to the importance of 

tree to humanity which cannot be over 

emphasized, noting that deforestation 

in Africa is as a result of inadequate 

sensitization and awareness which is 

making the environment dryer. 

Oladiipo, maintained that 

afforestation is a collective responsibility 

as the government cannot do it alone 

and consequently called on the state 

government to implement a policy at 

which approval must be given before 

land can be cleared. 

Monarch tasks Nigerians on sustainable agribusiness 

SIKIRAT SHEHU, Ilorin 

To ensure efficient food 

security and economic 

development in Nigeria, 

a monarch has charged 

Nigerians on investing in sustainable 

agribusiness ventures. 

Haliru Ndanusa Yahaya, emir 

of Shonga, made the charge in a 

paper entitled: ‘Harnessing the 

Potential of Traditional Institutions 

for Integrated Agricultural and Rural 

Development in Nigeria’ delivered at 

a seminar organized by Agricultural 

and Rural Management Training 

Institute (ARMTI). 

“Agricultural provides the 

foundation for economic growth and 

development in several countries 

around the world. The obas, emirs 

and chiefs in Nigeria can exploit the 

same potentials by empowering their 

farmers and youths, by so doing, the 

wealth that will be generated will 

drastically reduce rural poverty and 

we will attain the growth we looking 

for,” Yahaya said. 

“We right now we have thinktank 

in traditional institutions; 

hence they have to be well utilized 

for greater opportunities. Now we 

have generals, lawyers, engineers, 

doctors, ambassadors among others 

as traditional rulers who can be 

consulted by the government if it 

knows what it wants to do,” he said. 

The keynote speaker expressed 

dismay over incessant killings owing 

to disputes between farmers and 

herdsmen, urging the government 

to constantly engage the various 

parities through dialogue. 

“Human intelligence is what 

is failing us in this country, Boko 

Haram can hide here, but you do not 

know he is there. Therefore, we need 

surveillance and regular dialogue. 

Our attitudes must change if we must 

get right and succeed in this country, 

because we are still not there,” he 

added. 

“Abroad we are different human 

beings, here we are different. We 

are known for the best and highest 

of something bad or lowest and 

the least of something good. We 

should change that narrative and our 

attitude is what we have to change.” 

In his opening remarks, Danatuz 

Nwampa, the chairman, ARMTI 

Board of Governors described the 

theme as a timely consideration at 

this present time in our nation. 

“This is the time for us to 

consolidate and strengthen and fully 

utilize our traditional institutions 

and realise that the traditional rulers 

hold the potentials to unlock the 

solution to the major problems 

confronting us today as they are 

closer to the grass roots. 

“We find problems and needs 

in the agriculture and rural sector



FOR THE RECORD 

Full text of Northern groups’ communiqué 

on issues affecting region 

The Summit of Northern Groups 

was held at Arewa House, Kaduna 

on Saturday, 24th March, 

2018. 

It was convened to assess 

the security, economic and political circumstances 

of the North and Northern 

communities in other parts of Nigeria. 

Specifically, it reviewed the worrying 

state of insecurity “under which virtually 

all Northerners live”. 

It also deliberated the “worsening 

economic fortunes” of the vast majority 

of Northerners and the options that are 

available to the North as it prepares for 

the next general elections. 

Read full text of communique issued 

at the end of the meeting: 

“The Summit noted that in spite of 

notable successes by the Buhari administration 

against the Boko Haram insurgency 

in the North East, many Northern 

communities still live under its threat. 

In many other parts of the North, communities 

are routinely exposed to attacks 

from shadowy killers, and suspicion and 

anger at known and suspected killers are 

pitching Northerners against each other. 

Armed bandits terrorize rural communities 

almost at will, while kidnappings 

and abductions have assumed alarming 

notoriety as crimes. The nation’s security 

and law and order assets are stretched 

beyond points where they can’t provide 

even the most elementary confidence 

and protection of citizens. The North has 

rarely been so exposed to multiple and 

varied threats. 

The economy of the North continues 

to deteriorate in spite of the evident willingness 

of Northerners to work hard and 

earn legitimate incomes. Its basic infrastructure 

suffers massive deficits in funding 

while its growing population starves 

from lack of critical investment in human 

capital development. Federal government 

spending is severely tilted against 

the North, while most State governments 

only pay lip service to real development 

in their states. 

Agriculture shows limited glimpses 

of recovery, but almost entirely through 

efforts of peasants and antiquated processes. 

The North is completely deindustrialized, 

while the rest of the nation 

moves towards sustainable growth and 

development. There is no evidence of 

bold thinking, strong political will and/ 

or serious concern by any leadership at 

any level to reverse the alarming decline 

of the Northern economy. 

Since 2015, Northerners have occupied 

positions with the potential to make decisive 

differences in the economy, security 

or political fortunes of the region. The 

hopes that leaders who have exercised 

power since 2015 will reverse the abuse 

and neglect of the region in the previous 

decade have been betrayed. Weak 

governance, gross insensitivity and unacceptable 

levels of incompetence have 

been compounded by battles of attrition 

in which northerners have sapped each 

others’ strength. 

Weak and incoherent responses to 

provocations from other parts of the 

country around the imperatives of revisiting 

the foundations and structures 

of the Nigerian state have created the 

false image of a North without its own 

positions beyond survival as the parasite 

of Nigeria. The historic gains in Northern 

political unity secured by Northern votes 

in the 2015 elections have been wasted by 

the poor management of conflicts between 

and among Northern communities. 

Today Northern communities are 

erecting barricades against members 

of other communities, as well as and 

politicians who have failed to lead and 

make impacts in lives of the poor and the 

vulnerable are daily feeding the people 

with hate and resentment instead of 

searching for genuine and lasting solutions. 

In a region with enough resources 

for every community or trade, our people 

are now fighting for morsels, while leaders 

think of new ways to turn our misery 

into electoral capital. 

The Summit, having undertaken a thorough 

analysis of the state of the North and 

our communities, therefore: 

URGES all leaders, elders and communities 

to seek peaceful resolutions of 

conflicts between and among communities. 

Lives lost, injuries suffered and 

losses incurred in any community must 

be redressed firmly and fairly. The roots 

of co-existence and inter-dependence 

in all Northern communities are much 

deeper than the barricades being erected 

around communities. All persons who 

are involved in killings and crimes against 

communities must be brought to book. 

DEMANDS immediate and decisive 

steps to improve the security of lives 

and economic assets in the North by the 

federal and state governments. Too many 

communities are at the mercy of attacks 

from sundry groups of criminals who appear 

to have unchallenged access to space 

and weapons. 

APPEALS to Northern Governors and 

President Muhammadu Buhari to set in 

motion serious initiatives towards achieving 

higher levels of trust among Northern 

communities which is vital for the imperatives 

of peace and justice. 

INSISTS that the routine denial of the 

rights of the North to its fair share of budgetary 

allocations by the federal government 

must cease from the 2018 budget. 

Northern representatives in the National 

Assembly must live up to their oaths to 

protect the rights of their constituencies 

to equity in the allocation of national 

resources. 

WARNS that no Northern politician 

should expect to be voted for in the next 

general election unless they demonstrate a 

willingness to champion a massive assault 

on poverty and underdevelopment in the 

North. In this regard, most political office 

holders from the North are hereby served 

notice that they have failed the test to lead 

the region towards economic recovery 

and growth. 

ASSERTS the rights of all Northerners 

to examine all options in political choices 

they will make in 2019. The leadership 

selection process must be critically 

interrogated to present the best leader 

to Nigeria as a whole. No one should 

take the North for granted, and it is not 

for sale. It will resist shedding its blood 

for any candidate, and will critically 

scrutinize all politicians who will seek 

our mandate. At this stage, all options 

are on the table, and politicians who 

have betrayed the hopes and mandates 

of our people should be prepared to 

suffer rejection, in the same manner the 

votes of the North rejected the attempt 

to continue with impunity, corruption 

and indifference of the previous regime. 

ADVISES all Northerners to be alert 

to plans to weaken the region through 

the manipulation of our fears and vulnerability 

and our ethno-religious differences. 

There must be vigilant scrutiny 

of opportunities for manipulation by 

outsiders of our present challenges. We 

must stand up and unite against those 

who kill villagers in Kogi, in Zamfara, 

in Benue, in Adamawa, in Borno, in 

Kaduna, in Taraba and in every village 

or town. No Northern blood is more precious 

than others, and we can only heal 

if we adopt common positions to finding 

solutions to our problems. 

INVITES attention of the rest of Nigeria 

that the North knows its interests and 

place and will defend them in the context 

of Nigeria. Our people are willing and 

eager to put our union as a nation on the 

table and discuss with other Nigerians the 

relative values of ALL options and negotiate 

them with responsibility and respect. 

CAUTIONS the Presidency and members 

of the National Assembly and Governors 

to resist the temptation to abuse 

the political process in pursuit of their 

personal ambitions. 

COMMITS to sustaining the strong 

interests behind this Summit through 

other activities and actions which will 

strengthen Northern unity and prepare 

it to extract the maximum benefits from 

the 2019 elections. 

The Summit welcomes the release of 

the Dapchi girls, and urges the government 

to intensify efforts to secure the 

release of all other abducted Nigerians. 

It calls on the government to ensure 

that no abductions occur again, and all 

communities are sufficiently protected 

and young Nigerians are free to acquire 

education without fear.” 

Signed 

Professor Ango Abdullahi, CON 

Chairman ACF Political Committee 

Convener, Northern Elders Forum 

Dr. Yima Sen 

Northern Elders Forum (NEF) 

Amb. Ibrahim Mai Sule 

Arewa Consultative Forum (ACF) 

Engr. Bello Suleiman 

CODE Group 

Mataimaki Tom Maiyashi 

Arewa Research Development Project 

(ARDP) 

Zannah Hassan Boguma 

Borno Elders Forum 

Nafiu Baba-Ahmed 

Supreme Council for Shariah in Nigeria 

Dr. Ibrahim Yakubu Lame 

Northern Union 

Yerima Shettima 

Arewa Youth Consultative Forum (AYCF) 

Alh. Mohammed Bello Kirfi, CON 

North East Forum for Unity and 

Development 

Pastor Aminchi Habu 

United Christian Leaders Eagle Eye 

Forum (UCLEEF) 

Balarabe Rufai 

Coalition of Northern Groups 

Isa Tijjani 

Labour Veterans Association 

Rev. Bitrus Dangiwa 

CAN Northern Chapter 

Umar Ahmed Zaria 

Jama’atu Nasiril Islam (JNI) 

Alh. Buba Adamah 

Arewa People Unity Association 

Bilkisu Oniyang 

Arewa Initiative For Good Governance 

Abdul-Azeez Suleiman 

Northern Emancipation Network


Pension Today 

C002D5556 

BUSINESS DAY 

In Association with 

25 

‘What India, Ghana micro 

pension could teach Nigeria’ 

trepreneurial way. Among 

them are Ashish Aggarwal 

and Samuel Waterberg. Ashish 

set up Invest India Micro 

Pension Services in 2008. In 

2014, Enviu founded People’s 

Pension Trust in Ghana after 

vigorous market validation 

of the solution and appointed 

Samuel as its CEO. Both 

companies introduced tailormade 

pension products for 

the informal sector and were 

amazed by the promising 

outcomes resulting from their 

pilots. Ashish recalls victoriously, 

“One month after we 

started testing, 20,000 Indian 

women subscribed to save for 

a pension.” 

“Financial inclusion goes 

beyond having money or 

saving during your working 

life; it’s about giving people 

the opportunity to live with 

dignity,” says Ashish. 

Therefore, Samuel advises 

all upcoming entrepreneurs 

to ‘just start’: “Don’t wait until 

all the right tools are in place, 

but use what is already there 

and learn by doing. Keep in 

mind it’s a long-term process.” 

Develop the market 

around your product 

Even though there was 

a demand for the product, 

when both entrepreneurs 

started, they knew the pension 

market in their country 

was young and for the informal 

sector nearly nonexistent. 

It was up to them to 

develop the entire eco-system 

that was needed to reach their 

customers. With no leading 

examples available, they 

needed to build customer 

awareness, develop processes 

and best practices, distribution 

systems, IT-systems and 

partnerships from scratch. 

Samuel’s first steps in developing 

the micro pension 

company were therefore to 

bring on board resourceful 

partners necessary to mobilize 

the market. 

“We engaged with the government 

to discuss how to apply 

pension regulations to the 

informal sector,” he explains. 

“Then we needed to find patient 

investors that are willing 

to accept the risk, are in it for 

the long run and can bring 

in the required expertise. 

Partnerships with some of the 

largest pension companies in 

the Netherlands really created 

a solid fundament.” 

Retain your customer 

through trustworthy partnerships, 

user-centered 

product design, and patience 

An opened account 

doesn’t guarantee a saving 

customer, certainly not for 

the long run. “But as soon as 

a customer is saving for more 

than 5 years, he’ll stay for an 

unlimited period of time,” 

Ashish remarks. So how do 

you gain, and retain customers 

in a voluntary pension 

fund? 

Firstly, as micro pension 

companies you have to prove 

your trustworthiness. “Some 

of our customers were saving 

with institutions that defaulted 

and lost the customers’ 

savings,” Samuel explains. 

“As a result, few people trust 

saving institutions.” 

To gain trust, Samuel and 

Ashish work with respected 

partners and guarantee transparency. 

This latter is possible 

thanks to digitalization. All 

transactions can be tracked 

and the customer can see its 

real-time balances anytime, 

anywhere. In Ghana, the customer 

can also withdraw 50 

percent of their annual savings. 

This helps them to see 

that withdrawing their money 

is easy and that their money is 

still in their account”. 

Secondly, both entrepreneurs 

made it clear ‘you need 

to manage your customer’: 

Create understanding, make 

saving as easy as possible, 

and offer incentives. Both 

entrepreneurs offer financial 

education modules to create 

awareness and use reminders 

and digitized payment 

processes to automatically 

withdraw the money from 

someone’s mobile wallet. The 

product is tailor-made, thus 

customers have the flexibility 

to save more or less, even on 

a daily basis. 

Both entrepreneurs tested 

multiple incentive mechanisms. 

In some counties, Indian 

governments double the 

pension savings of customers 

and give an insurance guarantee. 

In Ghana, the company 

targets saving groups. Samuel 

explains, “If you see someone 

else is saving, social pressure 

makes you to save as well.” 

But there is still a long way 

to go to fully understand the 

customers. There is no cookiecutter 

solution. Therefore you 

need to be patient to find out 

what works and what doesn’t. 

Listen to your customers well 

and never assume you know 

better. 

Deploy available technology 

Use technology. Digitalization 

has made it easier to 

standardize processes and 

connect with the customer. 

From the start, the biometric 

system in India, and later 

also in Ghana, had a major 

role in getting the business up 

and running. This technology 

helps to identify customers 

and so ease withdrawals.The 

Biometric System is a technological 

system that uses 

information about a person 

to identify that person. This 

system eases the processes 

within micro pension companies. 

Soon mobile technology 

also came up, which became 

a major tool to achieve 

scale in India and Ghana. 

“Through the mobile phone, 

we are able to collect money, 

to communicate, to advise, 

and to educate our customers,” 

Samuel reveals. “We are 

able to reach our customers 

everywhere!”Both features 

have been, and continue to be 

key to serve the growing group 

India and Ghana’s pension 

industry have very 

interesting lessons that 

Nigeria could learn as 

Africa’s most populous 

nation plans its micro pension 

scheme. While both countries 

experience according to a 

report by Enviu, shows that, 

building micro pension companies 

required the development 

of an eco-system for a 

completely new market. And 

that, finding ways to retain 

customers, and use of innovative 

technology and partnerships 

are key to achieving 

success. But like all initiatives, 

you have to start somewhere, 

the report said. 

Below is an excerpt of the 

report: 

During the Global Financial 

Inclusion Week initiated 

by Accion on Thursday 

November 2nd, 2017,Enviu 

in collaboration with micro 

pension companies ‘Invest 

India Micro Pension Services’ 

and ‘People’s Pension 

Trust’organized a webinar. 

Both pension companies 

developed a tailor-made pension 

product for workers in 

the informal sector in India 

and Ghana respectively. 

The report summed up five 

main lessons learned to keep 

in mind when entering the 

micro pension’s space: 

Just start! 

Worldwide, there are currently 

1.8 billion workers in 

the informal sector without 

a pension. Most of them live 

in low- and middle-income 

countries, where informal 

workers don’t have access 

to a pension arrangement. 

These people literally have 

to work till they die and rely 

heavily on family support. 

Pension products for the informal 

sector have the potential 

to help generations break 

through this poverty cycle and 

strengthen local economies at 

the same time. 

Yet, only a few daring and 

trailblazing individuals are 

addressing this issue the enof 

customers. 

Establish long-lasting 

partnerships 

Creating cost-efficiency 

and understanding the customer 

needs remain challenging. 

That is where partnerships 

come in. Partners who 

are already involved in the 

market and eager to join you 

in working towards financial 

inclusion. 

People’s Pension Trust 

partnered with Ghana’s most 

popular mobile phone company 

from the beginning, 

allowing them to scale their 

customer reach, and therefore 

their impact. “Other important 

partnerships were with 

Unions, Cooperatives and 

Community-Based Organizations, 

which are efficient ways 

to approach and educate your 

target group through their 

leaders,” Samuel adds. 

Ashish also used partnerships 

to develop the 

product, the IT, the distribution, 

and the helpline. 

He explains: “By being the 

glue of the project, we can 

control the cost per unit and 

per product, and work on 

our cost-efficiency.” 

Thus setting up micro pension 

companies requires a 

long breath. You manage 

someone’s savings for a period 

of 20-30 years. “That 

is a serious responsibility,” 

Ashish remarks. “That is why 

you have to prepare for the 

long-run from the beginning. 

In fact, success is your biggest 

risk.” 

Today, Invest India Micro 

Pension Services serves 

800,000 clients and recently 

merged its operations into 

UTI Asset Management Company, 

one of its investors and 

a key product partner. 

People’s Pension Trust 

Ghana serves 10,000 clients 

and has been growing rapidly 

since its official license late 

2016. Both companies are 

dreaming big and are therefore 

looking for partnerships, 

because together is more! 

RC634453 

Diamond Pension Fund Custodian Limited 

1A, Tiamiyu Savage Street, Victoria Island, Lagos State. 

Tel: 01-4613753, 2713680, 2713954 

Fax: 01-2713955 

Email: info@diamondpfc.com 

Website: www.diamondpfc.com 

This section is 

created to increase 

awarness and deepen 

knowledge about 

the contributory 

pension scheme. 

If you have enquiries 

or contributions, 

send to this e-mail: 

diamondpfcbusday@yahoo.com



C002D5556 

E-mail: insurancetoday@businessdayonline.com 

L-R: Edwin Igbiti, managing director/CEO, AIICO Insurance Plc; Fatai Adegbenro, executive secretary/CEO, NCRIB; Shola Tinubu, 

managing director/CEO, Scib Nigeria and Co Ltd; Simon Chikumbu, chairman, AON Benfield Africa; Paul Griessel, chief executive 

officer, AON Benfield Africa during a cocktail party by Scib and AON with clients in Lagos. 

Technology to trigger higher 

penetration for insurance 

…as firms target distribution, premium collection 

…develops online portal, App for products 

Stories by 

Modestus Anaesoronye 

Nigeria’s quest for 

increased market 

penetration and 

enhanced contribution 

to GDP in 

the nation’s insurance industry 

may not be far away again, given 

current technological revolutions 

going on in the market. 

BusinessDay findings show 

that there are strategic efforts 

and investment in technology 

by insurance companies towards 

better distribution of products, 

collection of premium and customer 

interaction, which analysts 

say is the way to go for the sector. 

According to analysts, while 

these efforts are capable of increasing 

product accessibility, 

particularly beyond the cities 

where most insurance companies 

have offices and intermediaries, 

it will excite the middle 

class and the youth age population 

who are technology savvy. 

Insurance penetration to 

GDP in Nigeria according to 2016 

figures from the Nigerian Insurers 

Association is 0.27 percent 

despite population of 180 million 

people, abysmally low when 

compared to South Africa’s 14.2 

percent during the same period. 

However, while a lot of progress 

has been made earlier in 

the area of motor Third Party Insurance 

being completed online 

without a face to face contact, latest 

developments in the market is 

advanced technology where Apps 

have been development to products 

including travel insurance 

and personal accident policies. 

Akinola Odusami, promoter, 

Bidding Electronic Portal Odusami 

said it is obvious that Nigerians, 

particularly the elites 

are now getting used to buying 

goods and services online, pointing 

that a further step to create 

confidence and trust will impact 

positively on insurance industry 

growth. 

Owolabi Salami of ensure 

Insurance Plc said everybody is 

moving towards technology to do 

almost everything, and so as an 

industry we don’t have a choice 

but to key in. 

“Imagine that right on your 

phone you buy airline ticket, pay 

for it and is delivered to you; you 

buy an inverter and is delivered to 

you wherever you want it, so why 

not insurance”. 

Salami said “we had relied 

on agency network to sell insurance 

for so long, but today, it has 

become cumbersome, we don’t 

have the number to cover the 

population area, and it is becoming 

expensive” 

He said, insurance companies 

have begun to make a lot of 

investment in technology, to not 

only reduce business acquisition 

cost, but to also achieve accessibility. 

“At ensure, we have gone beyond 

online portal for our products, 

we have gone step ahead 

to have an App that enable us 

sell right on your phone motor 

third party, travel insurance and 

personal accident policies. 

At least 35 percent of insurance 

companies in the market 

have been able to develop online 

platforms that help customer 

interaction at different levels, for 

example buying motor policy 

online, verifying policy online, filing 

claims online, renewal among 

other things. 

Remi Babalola, chairman, 

Law Union & Rock Insurance had 

said that with 92 million segment 

of the population as active users 

of the mobile phone, insurance 

business communication needs 

to change in order to achieve 

phenomenal growth in the insurance 

industry and financial 

service sector. 

Babalola also said information 

available shows that the millennials 

have the capacity and are in 

fact influencing purchasing decisions 

as well as how companies 

conduct business. 

“Insurers must therefore be 

ready to tailor their marketing 

strategies to align with the digital 

natives in order to achieve improved 

performance.” 

He further stated that the 

insurance industry needs to embrace 

the strategic significance 

of social channels. “We need to 

be where the customer is and be 

part of the conversation where 

they interact, exchange opinions 

and levy complaints.” 

IEI-Anchor Pension strengthens 

capacity for improved customer service 

…as AUM grows to N75bn 

One of the fastest growing 

Pension Fund 

Administrators(PFAs) in 

the country, IEI-Anchor 

Pension Managers Limited has 

strengthened its human and technological 

capacities to deliver efficient 

and quality service to her 

clients. 

The company, which did not see 

its late entry into the pension business 

as a disadvantage said “We 

chose 2018 with the theme “Get The 

Edge”. We know we are not amongst 

the biggest PFAs, but this makes us 

smarter and nimble in our responsiveness 

to client needs. 

That is the Edge, stating that the 

Customer is the main thing and 

making the “main thing” the main 

thing. 

Glory Etaduovie, managing director/CEO 

of the Company said 

its skills from marketing, contributions, 

investment, benefit payments 

and retiree management have been 

sharpened to deliver value. “There is 

a lot of pension business ignorance 

out there, so we will engage in a lot 

of advisory services, too. “ 

According to him the IEI-Anchor 

Pension has grown its Asset under 

Management (AUM) from N47 billion 

in 2015 to over N75 billion currently, 

with wider clients outreach in 

most states. 

“Our investment returns for the 

activities for 2017 was above the 

year‘s inflation figures which stood 

at 16.54 percent on the average, 

while overall returns outperformed 

the MPR rate of 14 percent all year 

round. This helped us to reposition 

the effects of long tenured previously 

lower Government bonds 

yields where most PFAs are overweighted.” 

On agitation by some people and 

why many are not forthcoming with 

enrolling in the Contributory Pension 

Scheme (CPS), Etaduovie said 

“Many people only start to prepare 

for retirement as late as age 45 to 50 

years. That is why their agitation and 

worries are heightened. Their quality 

of life long before retirement and 

proactive self-development adds 

value to what one will be before and 

at pensionable age.” 

“If we get it right, our agitations 

will be minimal and our pension will 

be waiting for us and not the reverse 

alongside much agitation. Remember, 

they say that the kettle of water 

you wait for to boil, takes longer 

time.” 

“Pension money only augments 

who and what we have been. It 

should not be the main thing. Pension 

money is not business capital. It 

is not for house building. It is not for 

skill acquisition. As much as possible, 

these should be achieved earlier 

depending on our strengths and capacity. 

What is wrong is sitting down 

and waiting for Pension without 

other previous initiatives many long 

years before retirement.” 

On expectation of the public, he 

said “the industry is evolving and responsive. 

Sometimes we tend to be 

in a hurry and miss out on the bigger 

and longer lasting picture. After 

ascertaining safety and fair returns 

on the funds, there are many other 

fundamentals to development the 

industry is rising up to. 

Business as usual not sustainable, 

says Lloyd’s Chairman 

If you thought that the Lloyd’s of 

London insurance and reinsurance 

market had changed in the 

last decade, it’s likely nothing 

compared to the change we will see 

over the coming years, as the world’s 

oldest re/insurance market accepts 

the fact its model has become unsustainable. 

Bruce Carnegie-Brown, chairman 

of Lloyd’s admitted that as 

much as in the annual results pack, 

Glory Etaduovie 

which revealed the market fell to an 

aggregated pre-tax loss of £2 billion 

in 2017. 

The underwriting loss was significant, 

at £3.4 billion for the year, as 

the results were driven down by the 

impact of the major losses from hurricanes 

and catastrophes in the second-half 

of the year which delivered 

a major loss bill of £4.5 billion to the 

Lloyd’s market and its underwriters. 

While the impact of the catastrophes 

was significant last year, the fact 

remains that Lloyd’s remains an expensive 

place to do business and as a 

result, losses can tip it into unprofitability 

relatively easily. 

Lloyd’s operates on an expense 

ratio of around 30 percent, with 

2017’s results showing acquisition 

expenses contributing 27 percent 

to the combined ratio and administration 

expenses 12.5 percent. The 

combined ratio in 2017 rose to 114 

percent, but the goal going forwards 

will be to bring that down, through 

greater efficiency.


C002D5556 

BUSINESS DAY 

27 

E-mail: insurancetoday@businessdayonline.com 

SCIB, Aon Benfield seek more value 

services for Nigeria market 

Stories by 

Modestus Anaesoronye 

SCIB Nigeria & Co. 

Ltd and their foreign 

partner, Aon 

Benfield, a global 

reinsurance 

broker with subsidiary in 

South Africa have reaffirmed 

their commitment 

to create more value for 

their clients in the Nigerian 

market. 

Relationship with both 

companies spanning 

eight years now, was further 

strengthened recently 

when both companies 

hosted their clients and 

business associates in Nigeria 

in a cocktail, which 

offered opportunity for 

networking and knowledge 

sharing. 

Shola Tinubu, managing 

director/CEO, SCIB in 

his welcome remarks said 

SCIB/Aon Benfield have 

been in business partnership 

for almost 8 years now 

and within these period 

have had the opportunity 

to provide value added 

service to some of their 

esteemed clients. “Our 

achievements in these 8 

years have been tremendous 

providing solutions 

through existing and new 

products.” 

Tinubu said looking 

forward, “we will continue 

to leverage on our 

respective strengths and 

global capabilities to bring 

solutions to the Nigerian 

market and the economy 

as a whole.” 

“We will continue to 

support the industry from 

a reinsurance perspective, 

not just in terms of pricing 

but products and recoveries 

solutions.” 

The Aon Benfield team 

was led its chairman, 

Simon Chikumbu and accompanied 

by other top 

executives of the company. 

Victor Mushaya, executive 

head, Aon Benfield Africa 

in Johannesburg South 

Africa, said the company 

seeks to provide value to insurance 

companies when 

the purchase reinsurance 

covers. 

L-R: Segun Bankole, AGM/head, Corporate Communications & Brand Management, Sovereign Trust 

Insurance Plc; Niyi Odusi, executive director, Retail and Branch Operations, STI Plc; Sikiru Idowu Salami, 

captain Ibadan Golf Club and Babajide Olatunde-Agbeja, chairman, Boff & Co. Insurance Brokers at the 

on-going 6th Sovereign Trust Insurance Plc Open Golf Tournament in Ibadan, Oyo State. 

“The way we approach 

reinsurance purchase is by 

making sure that when the 

client is taking decision to 

buy reinsurance, they are 

fully informed about all the 

options they have, not only 

that, but also ensure they 

have appreciation of their 

financial position.” 

He said with that knowledge, 

the purchase then 

becomes an added value 

to the capital employed, 

rather than just a cost to 

their business. “It becomes 

a kind of borrowing capital 

from reinsurance to aid 

their business.” 

Mushaya who could not 

hide his feelings said the 

major challenge with the 

Nigerian market today is 

product rates. 

“The issue of rate in 

Nigeria is a concern to 

us, because we know that 

even the companies’ results 

are also affected because 

the underwriting is 

not properly done. Insurance 

is not about collecting 

premium, but making 

sure that the different 

aspects of the transaction 

before accepting the 

business have been done 

properly.” 

According to him, Premium 

is one aspect, but 

risk management is a key 

element of the transaction. 

“Nigerian market has 

regularly suffered one or 

two major losses every year. 

The reinsurance market is 

also feeling the pain, and i 

think there is that awareness 

both for reinsurers 

and the local market that 

something has to be done 

to correct the situation.” 

“Even at the lower level, 

I think the market should 

start to look at the basics 

of risk management and 

start applying them in future 

transactions. This is 

what we expect the market 

to take up and address because 

it is not a sustainable 

situation.” 

On the relationship 

with Nigerian companies, 

Mushaya pointed out that 

“Nigerians are warmth 

people and eager to understand 

how we operate. 

Continental Re gross premium rises 32% 

Continental Reinsurance 

Plc said 

the consolidated 

gross premium for 

the group rose by 32 per 

cent from N22.4 billion in 

2016 to N29.7 billion in 2017 

financial period. 

The company said the 

increase was mainly driven 

by strong aggregated growth 

from its operations in Africa. 

It noted that the underwriting 

profit, despite 

mixed performances at regional 

level, rose by 213 per 

cent to N1.3 billion from 

N414 million in 2016, which 

was buoyed by the group’s 

increasing focus on underwriting 

discipline and 

benign claims experience 

in the principal Nigerian 

market. 

Throughout 2017, the 

statement said the African 

insurance market continued 

to experience the residual 

effects of prior years’ business 

turbulence, stemming 

from the sharp slowdown 

of key economies impacted 

by the widespread foreign 

exchange crunch arising 

from low commodity prices. 

Femi Oyetunji, GMD, 

Continental Re, explained 

that, “2017 represents yet 

another year characterised 

by headwinds emanating 

from the challenging economic 

environment. Localised 

volatility and periodic 

downturns are an inherent 

feature of doing business 

in Africa.” 

“Our performance reflects 

resilience deliberately 

imbued through a 

determined focus on portfolio 

diversification that 

broadens our revenue base 

and ultimately smoothens 

performance cycles. This 

strategy continues to pay 

off, and despite the group’s 

underwriting result being 

moderated by considerable 

reserve strengthening for 

our Eastern operations and 

unfavorable loss experience 

impacting our yet to mature 

Southern operations, performance 

fundamentals 

were maintained at good 

levels.” 

Profit before tax remained 

positive at N3.6 billion 

though lower by 23 per 

cent than that for 2016 due 

to the non-recurrence of the 

substantial foreign currency 

revaluations that boosted 

the prior year result. 

The group’s results were 

bolstered by a strong contribution 

of investment 

and other income which at 

N6.6bn reflects a healthy 37 

per cent increase over 2016. 

Within the reporting period, 

A.M. Best affirmed the 

group’s rating of B+ (good). 

The rating report highlights 

Continental Re’s 

very strong balance sheet 

strength, adequate operating 

performance and neutral 

business profile as positive 

factors. 

It notes the company’s 

balance sheet strength, 

recently augmented by a 

capital injection of $10m 

late in 2017 to support the 

company’s strategic initiatives, 

as having strong riskadjusted 

capitalisation, 

which is expected to remain 

at very strong levels over the 

medium term. 

In 2016, the management 

introduced new and 

enhanced strategic proposals 

meant to chart the future 

course for the company 

through to 2020. 

Oyetunji said, “Our bold 

transformation initiatives, 

building on the journey we 

began in 2011, are aimed at 

reinforcing the company’s 

growth and profitability 

objectives for years to come. 

We are well prepared to 

meet the inevitable challenges 

that are encountered 

due to the nature of reinsurance 

business. We continue 

to pursue lofty growth and 

profitability ambitions and 

are structuring and reconfiguring 

ourselves to adapt 

our business and operating 

model to tide us over and 

ride any rough patches.” 

213 Capital partners PenOp on 

investment risk management 

HOPE MOSES-ASHIKE 

213 Capital, an Investment 

and Risk 

Advisory firm, has 

collaborated with 

the Pension Fund Operators 

Association of Nigeria 

(PenOp) to provide targeted 

training sessions to 

the investment and risk 

managers across the pension 

landscape. 

According to Susan 

Oranye, executive secretary 

of the association, 

the training which has 

taken place is considered 

very timely considering 

the emerging changes 

in the Nigerian financial 

market. She went further 

to highlight the fact that 

the program provided 

participants with an indepth 

understanding of 

the evolving investment 

risk landscape, with a view 

to optimizing the performance 

of the various 

fund managers, as well 

as ensuring international 

best practice standards 

continue to be the norm 

within the industry. 

She highlighted that 

as an association, PenOp 

is very keen on continuous 

improvement and 

with initiatives where they 

collaborate with subject 

matter experts such as 213 

Capital in this instance, 

the industry will continue 

to boast of dynamic fund 

managers, positioned to 

support Nigeria’s economic 

growth with long-term 

capital, while enhancing 

value for the contributory 

pension scheme (CPS) 

participants. 

According to the managing 

partner of 213, Ayodele 

Onawunmi, the pension 

industry remains a critical 

player in the transformation 

of the Nigerian financial 

market, and partnerships 

such as these reflect 

positively on the readiness 

of the industry.


28 BUSINESS DAY 

In Association 

with 

Adopting financial principles 

way to success 

… Ecobank, Heritage bank engage youth 

Stories by HOPE MOSES-ASHIKE 

More deposit 

m o n e y 

banks are 

keying into 

the financial 

literacy programme of 

the Central Bank of Nigeria 

(CBN) to teach the youth 

financial principles. 

Financial Literacy campaign 

is an initiative of the 

Central Bank of Nigeria 

(CBN) and Junior Achievement 

Nigeria (JAN), in partnership 

with Bankers’ Committee. 

Ecobank Nigeria’s managing 

director, Charles Kie 

said early adoption of financial 

principles is the 

panacea to success. He advised 

students and youths to 

imbibe financial principles 

at an early stage of their 

life as this will help them 

manage their resources effectively 

in the future. Kie 

spoke on the theme “Money 

Matters”, during a lecture 

session with students at 

Edgerley Memorial Secondary 

School, Calabar, Cross 

River State. 

“To become successful 

in future, you need to be 

financially literate by developing 

skills of budgeting and 

saving, make good financial 

decisions and use financial 

institutions to manage your 

finances. You have to open 

a bank account for your expenses 

and savings and it is 

also important you find and 

learn from financial mentors”, 

Kie said. 

He reiterated that “for us 

at Ecobank the ability to reach 

out to the young ones by 

encouraging them to adopt 

banking services, while also 

tutoring them on the various 

advantages of banking is at 

the centre of our financial 

inclusion strategy”. 

The bank Managing Director, 

who was represented 

by the regional manager, advantage 

team, South-South, 

Ecobank Nigeria, Godwin 

Eton, further took the student 

through a session of basic 

money management skills; 

needs and wants; money 

management techniques; 

budgeting; spending and saving; 

different types of financial 

accounts; merits of saving 

with a financial Institution; 

Important banking terms 

and regulators of the financial 

sectors, among others. 

Ecobank Nigeria took part 

in financial literacy training 

for different schools across 

the country as part of its commitment 

to the 2018 Financial 

Literacy Day meant to mark 

the Global Money Week held 

between March 12 and 18. 

Top management of the Bank 

Charles Kie, Ecobank 

Nigeria’ managing director 

went to different schools to 

tutor and mentor students 

and youths on basic money 

management skills. 

Heritage Bank Plc also 

empowered 5, 544 (pupils 

and teachers) in 11 secondary 

schools across the country, 

as part of efforts to support 

the CBN’s Financial Literacy 

Day, which marks the Global 

Money Week. 

For the fifth year running, 

Heritage Bank has successfully 

commemorated the 

CBN Financial Literacy Day. 

This year, CBN directed 

Heritage Bank to adopt 

schools in Benue, Adamawa, 

Jigawa, Plateau, Imo, Bayelsa 

and Ogun States for Financial 

Ifie Sekibo, managing 

director/CEO, Heritage 

Bank 

Literacy workshop and the 

day afforded 5, 544 participants 

(teachers and students) 

with financial education. 

Addressing some of the 

participants, Ifie Sekibo, 

managing director/CEO of 

Heritage Bank, reiterated the 

importance for young Nigerians 

to financially and economically 

equipped for the 

development of the nation. 

According to him, Nigerian 

youths and those around 

the world need to be fortified 

economically via financial 

literacy knowledge acquisition, 

which will foster the 

importance of understanding 

savings culture and entrepreneurship. 

Baobab rebrands Microcredit to 

unleash customers’ potentials 

Baobab Microfinance 

Bank Nigeria, a 

subsidiary of Microcredit 

Group, a 

leading financial inclusion 

group operating across Africa 

and China has rebranded 

to unleash potentials of its 

customers. 

Formerly Microcredit Nigeria, 

Baobab as a new identity 

comes with four commitments 

- to offer simplified 

services to its customers to 

allow them to focus on what 

really matters, Baobab symbolises 

access to innovation 

for its customers and their 

employees, as they digitise 

more and more of their operations, 

Baobab revolutionises 

the banking experience 

for its customers by placing 

them at the heart of what 

they do and above all, Baobab 

exists to help customers 

unleash their potentials. 

The company has 13 

years after its foundation, 

refreshed its brand and visual 

identity to reflect the expansion 

of the product range 

beyond the provision of credit 

to micro-entrepreneurs. 

The company, which now 

serves over 650,000 customers 

across 10 markets, has 

evolved significantly and 

now provides a wider service 

offering which addresses a 

broader range of customers. 

Kazeem Olanrewaju, executive 

officer of Baobab Microfinance 

Bank, said since 

2010, the bank has developed 

a network of seven branches 

in Kaduna and Lagos, and 

currently serving more than 

65, 000 customers. 

He said the company and 

its dedicated staff are committed 

to deliver value for 

a sustainable benefit of the 

customers, their families and 

businesses. 

“To do so, he said the 

company offers a wide range 

of products: loans, savings 

plans and savings accounts, 

and innovative products such 

as TAKA, a nano-loan which 

offered to existing customers 

by SMS and which is available 

immediately with no 

further documentation. 

Olanrewaju an new product 

called ‘AJO account’, a 

monthly savings plans of over 

3, 6, 9 or 12 months which 

allows a customer to choose 

any period convenient for 

him, while enjoying a high 

remuneration rate from six 

to 100 per cent of his monthly 

contribution. 

He disclosed that the bank 

would deploy digital banking 

mechanisms to guarantee 

their customers an uninterrupted 

banking experience. 

“The whole idea is to have 

a bank with you anywhere 

you are: in your home, as you 

travel, in your business place. 

The conventional bank that 

you have today is such that 

you need to go to the bank. 

That is what we’re taking 

away. When you hear the 

word ‘digital bank’, it’s the 

fact that we’re saying that 

you can operate your bank 

at any time. If you like, wake 

up in the midnight, the bank 

is available for you. So that’s 

one of the things we shall be 

doing differently,” Olanrewaju 

said. 

Fidelity Bank gives out N13m to customers in March 

Fidelity Bank plc has 

given out a total of 

N13 million and consolation 

prizes to its 

customers across the county 

for their loyalty and for participating 

in the savings scheme 

designed to encourage savings 

culture and to uplift their 

lifestyle. 

Beneficiaries of the fund 

comprises of customers from 

six geo-political zones such 

as South East, South South, 

South West, Abuja, North and 

Lagos region. 

During the 5th monthly 

draw of the ‘Get Alert in Millions’ 

reloaded promo held 

at the Lagos Island branch, 

under the supervision of Lagos 

State lottery board and the 

Consumer Protection Council 

(CPC), two customers from 

each region won N1 million 

each except Lagos where I 

customer won N2 million and 

another customer won N1 

million making a total of N3 

million in that region. 

Additionally, 18 consolation 

prizes were given to 

customer from each region 

including six refrigerators, six 

generators and six television 

sets. 

Nnamdi Okonkwo, managing 

director, said with this the 

bank has so far given out a 

total of N81 million cash prizes 

to 153 winners and numerous 

consolation prizes. 

Represented by Richard 

Madiebo, divisional 

head, retail banking, he 

said, “more people will win 

in the coming draws. We 

have the star prize of N10 

million that will sum up the 

promo. The most important 

thing for us is to reward our 

customers”. 

Oknonkwo explained that 

the 5th monthly draw was 

7th in the series of the promo 

which the bank introduced 10 

years ago. 

Among the winners in 

N1 million category are 

Chukwuemeka Umeji from 

Iweka road, Onitsha branch, 

Marry Okonkwo form Obosi 

branch in Anambra State, 

Andrew Chuar from Rivers 

State University of Science and 

Technology, Sani Sule from 

NPA Warri branch, Onijanu 

Segun Oladele from Ilorin 

branch,and Ago Dinebari Victor 

from Akure. 

Others include Suliyat 

Olajumoke Shitu, a businesswoman 

from Gwagwalada 

branch, Henry Ekene Udeh 

from Mararaba branch, Fridnant 

Emmanuel from Yola 

branch, Sunday Aja Sule 

from Kaduna refinery branch 

and Damilare Emmanuel, a 

software engineer from Saka 

Tinubu. Okechi Isreal Nwaobilor 

smiled home with N2 

million. 

Fidelity bank last year, 

unveiled the “Get Alert in 

Millions Savings Promo Reloaded” 

to boost its commitment 

to its customers in the 

face of the present economic 

realities.

BUSINESS DAY 

C002D5556 


29 

Transnet seeks rail 

deals in Nigeria, 

across Africa 

Page 31 

2018 Hyundai 

Accent debuts 

with new 

looks 

Page 30 

Lagos moves 

to revamp 

water transportation 

Page 30 

Lagos-Ibadan 

rail tracks 

laying begins 

April 

Page 31 

Irregular maintenance reduces car value 

Stories by MIKE OCHONMA 

Either consciously or 

lack of proper guidance, 

returns on investment 

(RoI) on 

vehicles have continued 

to impact negatively for 

many vehicle owners and fleet 

operators out of ignorance on 

how best to keep their vehicles 

in good condition. 

You can go anywhere you 

want to at any time in the comfort 

of your four wheels. Stereo 

blaring, the wind in your hair, 

your rooftop down and you’re 

living the life. 

That paint job won’t remain 

gleaming forever if you don’t 

wash and wax your car regularly 

or that engine may not respond 

at the turn of your key in the 

morning because just as we eat, 

exercise, maintain physical hygiene, 

go for medical check-ups 

and rest our bodies as human 

beings to stay healthy, so do we 

also need to care for our cars 

to ensure they remain on the 

roads and out of the mechanic 

workshop. 

Anyone who’s ever had to 

pay a lot of money to fix their 

car for something that could 

have been prevented or managed 

properly often regrets it so. 

It is important to know the crucial 

regular maintenance tips to 

keeping cars in top shape and 

prevent minor issues before 

they become bigger. 

Following what the manual 

says is one of the best ways to 

extend the life of your vehicle 

and may save you a lot on vehicle 

repairs. After all, no one 

knows your car better than the 

BKG Exhibitions Nigeria 

Limited has announced 

that the 2018 edition of 

the Lagos International Motor 

Fair will be held from May 7-12. 

Ifeanyi Agwu, Managing Director 

of the BKG Exhibitions Nigeria 

Limited, who gave the indication, 

said the auto fair would attract 

more participants from other 

parts of the country, apart from 

Nigerians coming to showcase 

their auto products and services. 

He said the event would 

provide an avenue for all autolinked 

businesses to promote 

their products to boost patronage 

that could accelerate the development 

of the industry and the 

manufacturer. 

You drive a brand different 

from what your friend drives, 

you may have similar symptoms 

of a problem; however, 

they may not necessarily have 

the same solutions. Also, a garage 

expert may tell you one 

thing, however, insist on what 

the manufacturer says in the 

owner’s manual, especially regarding 

servicing the vehicle, 

oil change, how to know your 

fluids are the right colour and 

levels, and the proper grade of 

fuel to use. 

Listen to your car. You may 

know little about cars, but anything 

out of the ordinary would 

catch your eye. Look out for a 

scratch by your door, a bent and 

swollen or flat tyre. 

This would enable you to 

economy. 

Speaking with motoring jourspot 

any faults on time before 

it escalates into a major repair. 

Driving with a bad tyre can 

damage your car’s rims and 

suspension. Check the threads 

to ensure they aren’t threadbare. 

Also, if left undetected for 

long, a worn out wiper would 

cause a lot of scratches on your 

windshield, thereby causing 

damage to your windscreen 

and you may have to spend a lot 

to fix your screen. 

It’s very important to listen 

to what your car is saying. When 

you sneeze repeatedly, it may 

be a sign you’re getting sick. 

So just like those signs, a noise 

or shake from your car may be 

a sign that something is wrong 

somewhere. 

Check under the hood. The 

most important parts of your 

car are mostly in the bonnet. 

Fluids, belts, hoses, battery, 

keep an eye on them regularly. 

Your car depends on fluids 

to run effectively and most of 

these fluids have dipsticks so 

it’s quite easy to check the levels 

periodically. Check your oil 

levels so as to help protect and 

extend the life of your engine. 

Check your belts for wear and 

fraying on the belt edges. 

Visit a qualified and professional 

mechanic. Even though 

you brush your teeth daily, you 

still visit the dentist for a checkup. 

Likewise your car. Have a 

pro service your car as instructed 

by the car manual. There are 

just some things that involve 

the services of a professional to 

spot out. 

BKG auto exhibition holds in Lagos depite high prices 

nalists in Lagos, he 

said the event would 

come in two categories 

that includes exhibition 

of automobiles 

and auto parts. 

“There will be 

good participation 

by automobile parts 

manufacturers from 

many countries such 

as China and Turkey. 

We want to make it a 

number one event in 

Africa in terms of auto 

motor and spare parts 

fair,” Agwu said. 

He said the response by Nigerian companies deal- 

Mitsubishi makes 

top-range ASX look 

more special 

Mitsubishi has given 

the flagship of its ASX 

line-up, the GLS with 

constantly variable belt-drive 

transmission, a fairly unsubtle 

facelift to differentiate it from its 

siblings and make it look more 

special. 

It gets a new grille with more 

chrome, new LED daytime 

running lights, a revised front 

bumper with sporty honeycomb 

air intake, a new rear bumper 

with a diffuser and carbon-fibre 

inserts and an LED rear fog 

light. New 18 inch diamond-cut 

alloys wheels round off the new 

GLS exterior package. 

Inside, there is a redesigned 

centre console with geometric 

trim elements, two USB ports 

and a mobile phone tray with 

a removable padded liner. The 

finish on the centre stack and 

the power window switch panels 

in the doors has been upgraded, 

while the soft-feel leather seats 

(including the matching knee 

pads on the sides of the centre 

console) gets a new design with 

red contrast stitching. 

The Mitsubishi ASX GLS 

CVT comes with a three-year or 

100,000km warranty, and a fiveyear 

or 90,000km service plan 

with 15,000km service intervals 

depending on the market. 

ing in automobiles and related matters towards 

the 2018 Lagos motor show had been encouraging. 

For instance, he named some of the companies 

that had confirmed their participation in the 

event as Toyota Nigeria Limited, Coscharis Motors, 

PAN Nigeria Limited and GAC Motors Nigeria, 

among others. 

Agwu said, “It’s looking good. We want to step 

up the tempo of the entire package of the event 

this year so that it will be a win-win situation for 

all participants, visitors and the country’s auto industry 

as well as the economy.” 

He maintained that the development of the 

nation’s economy was largely dependent on the 

auto industry and urged all those connected to 

the sector and managers of the economy to take 

it seriously. “We cannot revive the economy without 

reviving the auto sector,” the BKG boss said.



C002D5556 

2018 Hyundai Accent debuts with new looks 


Hyundai has officially 

launched the fifth generation 

of its popular Accent 

small car in Africa and Middle 

East markets, building on the 

strengths of previous models with 

the brand’s latest design and engineering 

innovations while also 

maintaining Accent’s unbeatable 

value proposition for buyers. 

Highlights of the new model 

include a completely new exterior 

design and comfortable high-tech 

interior. More efficient powertrains 

deliver an outstanding combination 

of performance and fuel 

economy, with a choice of 1.4-liter 

or 1.6-liter engines, including a 

diesel available in some markets, 

matched to a six-speed transmission 

in either manual or automatic. 

Other advances include reduced 

cabin noise and remarkably 

improved driving dynamics, both 

helped by a stronger bodyshell and 

a selection of the latest safety and 

convenience features offered either 

as standard or as options. 

The All-new Accent is also 

slightly longer and wider than 

the previous model, including an 

increased distance between the 

front and rear wheels, giving occupants 

more leg and shoulder 

room. 

“It makes several key improvements 

on the previous model, 

which was already an excellent 

cally grouped by function. Other 

convenience features available 

include a proximity key with push 

button start, dual USB charging, 

and auxiliary input jacks. 

Standard safety features include 

electronic stability control, 

traction control and anti-lock 

brakes, as well as emergency stop 

signal, which automatically flash 

the brake lights when the driver 

brakes heavily. Available options 

include a six-airbag system, static 

bending headlights to provide 

better illumination of the road 

through corners, and auto cruise 

control. 

The body is stronger than the 

previous model, with torsional 

rigidity improved through the 

increased use of advanced high 

strength steel and structural adhesives. 

The New-generation Accent 

features several improvements to 

the front side members and inner 

side sill for improved collision 

protection. 

Front crumple zones have 

been increased, front side airbags 

also upgraded, and reinforcements 

added to improve the car’s 

collision energy management 

performance, especially in small 

overlap crashes. It includes many 

of the latest auto innovations 

available, immediately setting a 

new benchmark for its segment. 

“It offers something exceptional 

to car buyers, and will continue 

the Accent success story.” 

said Mike Song. 

Lagos moves to revamp 

water transportation 

… As pilot operations of Ikorodu ferry terminal commences 

In line with its commitment to 

facilitate an effective and efficient 

integrated transportation 

system, the Lagos state government 

has commenced pilot operations 

at its Ferry terminal at Ipakodo 

in Ikorodu. 

With this development, there 

has been a turnaround renovation 

of the Ikorodu Terminal to upgrade 

the facility to a world-class, robust 

and accessible hub for the water 

transportation and other ancillary 

services that would engender convenience 

and safety, efficiency and 

effectiveness in water transportation 

experience for both the commuters 

and operators in the state. 

The terminal, when fully operational, 

will primarily provide an 

umbrella shelter for ferry logistics 

with ample and safe space for operators 

to load and offload passengers, 

goods and services. 

They will provide for the convenience 

of operators as well as 

the commuters, safety considerations 

like water ambulances 

and emergency rescue and water 

maintenance in collaboration with 

Lagos State Waterways Authority 

(LASWA). 

The facilities will also provide 

for recreation and shopping, banking, 

foodcourt, parking, customer 

services, security, and well-maintained 

conveniences. 

A pilot operation at the terminal 

is essentially for boat and ferry 

operators and their passengers to 

have a feel of the facility ahead of 

kick-off next month. 

Reacting on the development 

Amina Agboola, the Director of 

Corporate Services, Ikorodu Terminal, 

said, “Our role is to work 

with the operators to ensure that 

this facility is maximised to help 

develop and grow water transportation 

in Lagos. We are very keen 

to provide efficient, safe and world 

class water transport solutions in 

Nigeria.” 

Agboola added; “Indeed, the 

safety of operators, commuters, 

our team and visitors, is a strategic 

priority for us. We have put in place 

intelligent control measures which 

will reduce or eliminate hazards 

within the terminal. These measures 

will also take care of delays, 

eliminate rush, human errors, improve 

connectivity and provide a 

better customer experience. Our 

Water ambulance service and rescue 

team are prepared to respond 

within the shortest time possible to 

any emergency situation.” 

On his part, Andrew Lana, chief 

executive officer, Halo-Waters (Nigeria), 

operators of commercial 

water transport ( Lagos WaXi), 

said, “It’s a milestone in the journey 

of putting in place efficient 

inter-modal human and goods 

transportation system and specifically 

in-land water ways transportation 

by the Lagos state through 

the provision of infrastructure and 

enabling environment that engender 

continuous private sector investments 

in the sector. 

The users of the terminal shall 

experience world class customer 

service, given the facilities and services 

promised by the operators 

of the terminal and commercial 

boats. 

“As an operator, we are excited 

that finally, outbound and inbound 

passengers can experience 

convenient, safe and reliable water 

transport service in Ikorodu”, he 

added. 

Pirelli’s Cyber Car heralds fresh innovation in tyre technology 

Pirelli, one of the leading 

global trye makers has 

recorded fresh breakthrough 

in tyre technology. 

It is called Cyber Car and it’s 

a tyre that connects the rubber 

with the car and provides 

loads of information and 

data. 

Under the arrangement, 

the tyre can relay information 

such as air pressure, internal 

temperature, and tread 

depth. All of the information 

comes via a tiny sensor that 

Pirelli said weighs less than 

an ounce. But, the tyre won’t 

just look at data; it will help 

make adjustments for drivers, 

too. 

Also, the tyre can communicate 

with the car to 

car and very popular with customers,” 

said Hyundai’s Head of 

Operations for Africa and the Middle 

East, Mike Song. “Design and 

engineering are completely fresh, 

ensuring a car that looks superb, is 

enjoyable to drive, with high levels 

of safety, and will be economical 

to own.” 

The design exhibits confidence 

and sophistication, delivering 

a new interpretation of design 

language. This includes Hyundai’s 

signature cascading grille – a design 

element being introduced 

across the brand’s product range. 

The grille is flanked by wraparound 

headlights and optional 

LED signature daytime running 

lights, while sharp character lines 

run the length of the car to the 

slim LED wraparound tail lights. 

The interior continues the 

modern, confident, sophisticated 

theme of the exterior. A driveroriented 

layout with intuitive 

controls combines with improved 

interior roominess, high-quality 

materials and premium technology 

features. Premium, soft-touch 

materials in key points create an 

inviting and comfortable environment 

for the driver and passengers. 

A wide instrument panel 

prominently features a standard 

backup camera system via the 

touchscreen LCD display. Beneath 

the screen, the control panel 

is laid out in a horizontal design 

with buttons and controls logiactivate 

the ABS and traction 

control systems when needed, 

and soon-to-come cars will 

be able to adjust their setups 

based on the tyre’s identification. 

The tyre can provide the 

vehicle accurate weight figures 

to display a more exact driving 

range, which is especially useful 

for electric cars. 

In terms of maintenance, 

it can let drivers know about 

specific information on tread 

wear and when a rotation is required. 

Pirelli will offer a suite 

of services such as roadside assistance 

and valet. 

The company said the very 

first cars with the Pirelli Cyber 

Car tyres are coming this year, 

as several manufacturers are 

working to integrate the system 

into their vehicles’ computer systems. 

In addition to sending the information 

to your car, the information 

from the tyres will also go 

to the Pirelli Cloud and drivers 

will be able to get messages via a 

smarphone app. 

In Nigeria, the Pirelli range 

of tyres has remained as one of 

the most sort-after brand among 

car owners, and available in 

many service outlets scattered 

all over the country. In the past 

few weeks, the Pirelli trye brand 

as part of the Infinity group have 

opened a number of service centres 

in Ajah, located in Lagos, followed 

by the opening of other 

service outlets in Abuja, Nigeria’s 

capital and recently followed with 

another center in Kaduna.


C002D5556 

BUSINESS DAY 

31 

Local and global rail news as it breaks 

Lagos-Ibadan rail tracks laying begins April 


Barring any technical 

hitches, the laying of 

tracks along the on-going 

Lagos to Ibadan rail project 

would commence next 

month. This is even as the federal 

government said, it is committed 

to delivering the project 

by the beginning of 2019. 

According to Rotimi Amaechi, 

Minister of Transportation 

said at the last monthly inspection 

tour of the Lagos-Ibadan 

rail projects that some of the 

obstacles identified were oil 

and gas pipelines, water pipelines, 

Apapa/Ijora Bridge, power 

lines, sewage, and railway 

station and staff quarters in Lagos 

amongst others. 

Amaechi stated further that 

discussions were ongoing with 

Lagos State Water Corporation, 

Nigerian National Petroleum 

Corporation (NNPC) and Federal 

Ministry Power and Housing 

with a view to finding out 

how to relocate their respective 

utilities so as to pave right of 

way for the project. 

He commended China 

Civil Engineering Construction 

Corporation (CCECC) for 

accelerating the pace of work 

and expressed hope that the 

December dateline set for the 

commissioning would come to 

fruition. 

As at the time of filing this 

report, there was no response 

to telephone calls and text messages 

sent by our reporter to Leo 

Yin, project manager of CCECC 

to confirm the contractors readiness 

to commence laying of 

pipes in April as assured by the 

South Africa’s national port 

and freight-rail operator 

has set its sights on acquiring 

new projects across the 

continent. Checks reveal that 

Transnet SOC Ltd. has drawn 

up a list of 18 African nations, 

including Nigeria where it wants 

to do business and is targeting at 

least five transactions this year. 

In Nigeria for instance, 

Transnet is part of a larger consortium 

that includes General 

Electric Co. that is negotiating a 

30-year concession to overhaul 

and operate about 3,500 km of 

railway. 

In Benin republic, Transnet is 

in talks about a long-term relationship 

with the state terminal 

company and is in the process of 

appointing transaction advisers 

Transnet has also submitted 

expressions of interest for 

railway lines in Ghana, while in 

Senegal, it is looking at a project 

to rehabilitate a railway line from 

Dakar to a new iron-ore mine. 

In Zimbabwe, the company 

and a South African-based 

transportation minister. 

The minister said that part 

from moving the Abeokuta 

Railway station to a virgin land 

in order to reduce demolition 

of structures along the railway 

corridors, he disclosed that a 

committee headed by Unman 

Abubakar, chairmain, Nigerian 

Railway Corporation, has 

been set up to give an update 

on the removal of all obstacles 

on the Lagos to Ibadan standard 

gauge project. 

Last month, the federal 

government jettisoned plans 

to demolish about 1,400 

buildings in Abeokuta for the 

$1.5bn Lagos-Ibadan rail project 

due to what it described as 

huge compensation cost. 

Amaechi told newsmen after 

a meeting with officials of the 

China Civil Engineering Construction 

Company (CCECC) 

that the compensation cost to 

owners of properties in Abeokuta, 

which runs into N2.8 billion, 

will overshoot the budget 

for the project. 

The committee tasked with 

the rail project suggested that 

they should review the location 

of the train station in Abeokuta 

to avoid the area where we 

have too many buildings. 

According to the minister, 

“If you observe, when we visited 

the area where we have 

so many buildings on the 

proposed station site of the 

Lagos-Ibadan rail project in 

Abeokuta, to the left of that 

area is a huge expanse of land 

that has fewer or no structures 

on it’’. 

The avoid any compensation 

cost, the contractor was advised 

to look at the possible option of 

going towards the left instead of 

Transnet seeks rail deals in Nigeria, across Africa 

Britain’s Department for 

Transport (DfT) has invited 

promotors and investors 

to come forward with 

financially-credible projects 

to build new lines or enhance 

the rail network, starting with 

a new southern rail link to 

London Heathrow Airport. 

The government wants to 

increase investment in the rail 

network, while relieving the 

burden on taxpayers and rail 

users, by taking advantage of 

new ideas, such as the Heathrow 

proposal, and create “real 

contestability” in the market. 

The so-called market-led 

proposals (MLP) could come 

from ports, train operators, 

property developers, investors, 

or consortia. Examples 

of MLPs include a new line to 

serve a new housing estate, reconsortium 

of Zimbabwean 

investors residing abroad won 

a contract to recapitalise the 

struggling National Railways of 

Zimbabwe. The idea being that 

the partnership develops into a 

long-term joint venture between 

Transnet and NRZ. 

Other potential African projects 

includes Zambia where 

Transnet signed a memorandum 

of understanding to lease 

going through the MKO Abiola 

complex and running through 

buildings behind it. 

It doesn’t involve any new 

engineering structure as all the 

CCECC need do is move towards 

the left of the MKO Abiola 

complex so that, the path of 

the standard gauge project will 

avoid the area with too many 

houses. 

“If we agree to go towards the 

left of the MKO Abiola complex, 

then we won’t be paying N2.8bn 

as compensation to property 

owners because we would have 

avoided were we have a concentration 

of too many houses, 

and that would have reduced 

the project cost eventually. And 

by that, we will allow the people 

to live in peace. It is not yet a 

directive. It is an option I asked 

the contractor to study’’. The 

minster stated. 

pose terminal at the port of Maputo, 

Mozambique, which have 

been approved by its board and 

await ministerial approval. 

The reason for this is that 

Transnet wants to expand outside 

its sluggish home economy 

and diversify beyond its traditional 

business of bulk commodities. 

The company, which already 

operates in other African countries 

including Mozambique and 

Botswana, set aside R20 billion 

for acquisitions and could get as 

much as 25% of its revenue from 

outside South Africa within six 

years, Chief Executive Officer Siyabonga 

Gama said in 2016. 

Elsewhere in the world, the 

company has plans for a trip to 

Saudi Arabia within the next 

couple of months and is also 

looking in Oman, in addition to 

India and Indonesia. 

The state-owned company is 

also looking for opportunities in 

the Middle East, India and South 

Asia and wants to boost revenue 

exponentially. 

Britain seeks private 

investment 

in rail network 

rolling stock to Zambia Railways, 

and aims to have the transaction 

concluded by July 

In Kenya, the company will 

seek to operate the first three 

berths at the port of Lamu, 

which is being built by a Chinese 

company. 

The company has several 

deals already in the works, including 

the purchases of stakes 

in a car terminal and multipuropening 

a line, and installing 

a traffic management system. 

Heathrow Airport is already 

served by London Underground’s 

Piccadilly Line and a 

main line connection to London 

Paddington. 

The government plans to 

build a second main line link 

to the Great Western Main 

Line to provide a service to 

Slough and Reading. The DfT 

and Heathrow Airport are now 

inviting ideas for a southern 

link. 

Heathrow Southern Railway 

Ltd (HSRL), an independent 

venture, has already 

put forward a proposal to 

construct a 13km line from 

Heathrow to Staines to allow 

the introduction of a service 

from Heathrow to Richmond, 

Clapham Junction and London 

Waterloo, and direct 

services from Guildford and 

Woking via Heathrow to London 

Paddington. HSRL says 

the link would be used by 

33,000 passengers/day and 

could be completed by 2025. 

The DfT will hold a rail investment 

opportunity event in 

May to promote MLPs while 

the government expects first 

proposals to be submitted in 

June and July, and to provide 

an initial response in the autumn.

32 BUSINESS DAY C002D5556 


SHIPPING LOGISTICS MARITIME e-COMMERCE 

We will rate clearance, marine 

sides of port operations - Apampa 

SOJI APAMPA is a co-founder of the Convention of Business Integrity, which represents Maritime Anti-Corruption Network 

(MACN) in Nigeria. In this interview with CHUKA UROKO and AMAKA ANAGOR-EWUZIE, he gives an insight into the reform 

that MACN is carrying out in Nigerian seaports in partnership with the Federal Government steering committees to reduce 

the propensity for port corruption and instil professional ethics among service providers and port users. Excerpt. 

The committee 

Since 2011/2012, the 

Federal Government 

has been involved with 

reforms at the ports. They 

have selected five ports 

and they are Tin-Can Island, Apapa, 

Onne, Calabar and Port Harcourt 

ports to look at. The government 

has been looking at how to reduce 

the propensity for corruption in 

those ports together with the United 

Nations Development Programme 

(UNDP), Independent Corrupt 

Practices Commission (ICPC), 

Technical Unit on Government 

Anti-Corruption Reforms (TUGAR), 

Shippers’ Council and other 

agencies at the port like Customs 

and Immigration. 

These agencies have formed a 

steering committee that is looking at 

how to improve services by coming 

out with Standard Operating 

Procedure (SOP) that spells out 

what people should expect from 

Customs officials. How the official 

would respond when dealing with 

port users and make provision for 

unsatisfied customers to make 

complaint. Not only have they 

identified those things, but they 

have been able to document the 

standard operating procedure, 

which is now online at a site called 

www.pssp.ng, which is www. 

portservicesupportportal. ng 

At this site, port users can report, 

and find the SOP for all the agencies 

at the ports including the terminal 

operators. On top of all of these, 

the most important thing is that 

the actors have to behave with 

professional ethics. The Maritime 

Anti-Corruption Network, which is 

the network of some of the biggest 

shipping companies that represents 

about 25 percent of global tonnage, 

have come together to form the 

Network, which has been financing 

a process of training about 1,000 

port officials on professional ethics. 

So, they are sensitised on what 

it is they are supposed to be doing 

in terms of their SOP but also what 

their colleagues around the world 

are doing. This is what we have been 

doing since 2012 and that training 

has reached 1,000 trainees. 

Proliferation of government 

agencies at the ports 

The steering committee is a 

committee of government and 

all the committee members 

are government agencies. The 

Maritime Anti-Corruption Network 

is supporting the works of the 

steering committee which is made 

up of about nine government 

Soji Apampa 

agencies or so government agencies 

that are at the port apart from the 

terminal operators. The committee 

members have tried to streamline 

the responsibilities of each of those 

agencies and that was why they 

came up with the SOPs, so when you 

see Immigration or Customs you 

will know what they are expected 

to do. 

But the tragedy is neither the 

ship captains, who are calling our 

ports, nor the operators at the ports 

seem to be adequately aware of 

these things. We have cause to test 

this procedure. For example, there 

was a report by one of the members 

of MSC shipping line, late last year 

that their vessel was arrested at 

Forcados, and was given an illegal 

charge of about $8,000 to pay, 

which they decided to complain 

through the Shippers Council. 

The Council took it up and within 

48 hours, that vessel was released 

and investigation commenced 

immediately. 

So, that is the kind of agility that 

we are finding from the government 

but sadly most business people do 

not know that they can report if they 

are not getting service and the portal 

enables all the agencies to know that 

a report has been made as well as 

the nature of the report. They have 

a service level agreement that once 

a report comes in within 24 hours, 

they must acknowledge the report 

and within two to five working days, 

they must resolve it, and if it requires 

to be redressed or something that 

needs a bit more time, it must be 

resolved within 21 working days. 

But people are not using it yet 

because they do not know, which 

is why the training took place few 

weeks ago. So, people can know 

because the more people use the 

portal, the more you test the report 

and the more you test the ability of 

Nigeria to self-correct some of the 

issues that have been going on. 

Compliance level by both service 

providers and port users 

The compliance level is not 

anywhere near where we would 

have liked it. As I mentioned, both 

the port users and operators are not 

aware of the details of the SOP and 

the portal. It is imperative to make 

sure that everybody knows. 

However, the ship captains 

are reporting that safety related 

incidents have reduced. They are 

also mentioning that pre-berth 

delays have also reduced in our 

ports, that the threats to crew have 

also reduced. So, something seems 

to be shifting but how much more 

the progress we can make if many 

more people are aware, use it and 

test the political will to push through 

these changes that are taking place 

in our ports. 

Suggestions on how to ensure 

timely delivery of cargo 

I wish you had been at the training, 

you would have felt the pulse of these 

operators as they were complaining 

of the broken scanners, the fact that 

they are supposed to examine a 

40 foot container. The question is 

what can Customs do to move all 

that material and give a 100 percent 

inspection? Yet, they do not have 

the tools. This was one of the key 

messages that they want us to make 

sure that the vice president hears as 

an outcome of this project. 

Sometimes, the forklift to 

position the container becomes an 

issue. The complaint was that it is not 

just the case of Customs but all the 

operators understanding their roles 

and the SOPs have documented 

all these but they are not all aware 

of what their top echelon already 

agreed as the minimum standards. 

So, we want to test it as the 

convention of business integrity and 

in collaboration with this steering 

committee, we want to do a rating 

of the ports. We are going to rate the 

ports both on the clearance side and 

on the marine side to know how well 

they have been able to implement 

this SOPs. This is something we 

will continue to track to make sure 

that improvements are known by 

Nigerians and that it is not just 

an improvement on paper alone. 

However, all the port workers tell 

us very pathetic stories about their 

condition of service. 

We have the case of a gentleman 

shot in the eye, permanently 

disabled but he has to pay for his 

own medical bills and he is now 

asking the question, is he supposed 

to die for his own country when he 

is being offered money? So, we will 

like to encourage the government 

to look at it that if we are pushing 

for reforms around corruption, 

we should be improving workers’ 

welfare, working condition, 

providing the tools and equipment, 

and removing rotten eggs from 

the system and allow those with 

integrity to come to the surface. 

Imagine a situation where people 

are buying ranks because the feeling 

is once you reached a certain rank, 

you will start to make money. It just 

perpetuates the wrongdoing and 

entrenches it as a norm that is what 

we want to break. 

Impact of poor port infrastructure 

The situation is damaging the aim 

of port concession in my view but I 

think we need to put a spotlight on 

the activities of terminal operators, 

private jetties and other facilities 

that we do not look at when talking 

about ports. Internationally, the 

biggest challenge for Nigeria from 

the perspective of the members of 

Maritime Anti-Corruption Network 

is Bonny Port. Even though, the 

ships call on 15,000 other ports 

around the world, Bonny is still their 

biggest headache. So, we need the 

spotlight shown on it. 

And if you publish ratings on how 

all of these ports are performing, 

then, it will encourage a policy 

discussion with the government 

based on fact. For instance, you can 

establish that this port is performing 

better while another one is less 

efficient. And this is where the issue 

of equipment and the contracts 

of the operators will come in, and 

then we will start to advocate that 

the government should enforce 

the contract of terminal operators 

or change them. Unless you can 

gather such information, in policy 

research, it will be difficult to 

encourage that policy change. 

Bonny port 

The fact that in a room of 90 shipping 

companies, who run about 8,000 

vessels, the only port that they 

wanted to have a breakout session 

on was Bonny, already tells you 

something and these are global 

players. This is in the area of cost 

that is suspected to be corruptly 

levied on their vessels. So, the 

problem of Bonny Port is in the area 

of corruption. 

Ease of Doing Business Policy 

The little reform we have done 

has improved Nigeria’s rank in the 

World Bank ease of doing business 

ranking. How much more if we then 

pay attention to these other areas? 

I think that Nigeria would be great 

again. All the feedback gathered 

would be sent to the Vice President 

including what the port users are 

saying about infrastructure so that 

a plan would be put in place to 

ameliorate the problem because to 

draw attention to them, somebody 

has to put forward the raw data in 

front of the decision makers. 

Port infrastructure 

We know that the infrastructure is 

completely dilapidated and that 

Apapa-Oshodi Expressway from 

Isolo to Tin-Can is impassable. We 

know that we have more number 

of trucks coming to the port than 

we have the space to receive the 

trucks. We know that a truck might 

go through the entire process, 

reach the gate and the shipping 

company says there is one more 

charges to pay and the truck 

turned back. We know that there 

are some kinds of games possible 

because there is no sufficient 

oversight over the processes that 

we are promising to improve if we 

must improve the ease of doing 

business. These are the things 

that we are trying to highlight to 

make sure that the changes that 

we intend to achieve become 

sustainable.

PRIVATEEQUITY 

& FUNDRAISING 


Unity refutes claims of executing 

Milost’s $1bn binding offer 

C002D5556 

BUSINESS DAY 

Sahel Capital invests 

in Nigerian rice farm 

….as the farm plans to install a 

40,000 MT per year rice mill 

ENDURANCE OKAFOR 

33 

Companies&Markets 

LOLADE AKINMURELE 

The interest being generated 

by the purported 

investment of $1bn into 

Unity Bank by Milost 

Global Inc. has continued 

to elicit comments from analysts 

even as the tier two lender is 

said to have maintained its stance 

that at no time did it execute a 

binding offer with Milost to warrant 

on-going media speculations. 

A source close to the bank 

said that the Bank has remained 

unbending on its earlier position 

that no investment of $1 bn from 

Milost Global was made in Unity 

Bank Plc. 

Analysts are of the opinion that 

it will be almost impossible for the 

Executive Management and the 

Board of a financial institution 

in Nigeria to execute a binding 

offer without proper engagement 

with relevant stakeholders in the 

financial market. 

“As required in any investorinvestee 

relationship, preliminary 

and confirmatory due process 

must be followed before such 

investments can be affirmed”, 

said a source familiar with the 

transaction. 

The Bank had in a previous 

statement informed that although 

it has been involved in series of engagements 

with several prospective 

investors including Milost, 

the Bank did not execute a binding 

offer with Milost to warrant such 

PE WORD OF THE WEEK 

speculations that are currently in 

the press. 

Part of the statement had enjoined 

all its stakeholders to be 

very cautious of negative news that 

were circulating in some local media 

while noting that it was fully 

aware of all regulatory steps and 

requirements on such investment 

proposition and the imperative to 

comply with them. 

The Bank is said to have been 

focusing on its recapitalization 

drive and had pledged to continue 

to engage stakeholders on subsequent 

developments and achievements 

in this regard. 

Unity bank’s share price fell 

4.44 percent to N1.29 on Tuesday, 

according to Bloomberg data. 

Milost Global Incorporated on 

Monday accused Unity Bank of 

lying and said the tier two lender 

agreed to delist from the Nigerian 

Stock Exchange (NSE), and move 

its primary listing to the USA. 

The Bank source refuted the 

claims. 

Bloomberg had on March 19, 

2018 reported that Milost was 

looking to inject as much as $1 

billion (about N360billion) to recapitalise 

Unity Bank Plc. 

Milost said Bloomberg article 

was “very factual except that 

Milost was to acquire 30percent 

of the bank, whereas in reality 

Milost was to take a controlling 

60percent of the bank at closing, 

in a transaction that would retain 

the same board members and the 

same management for continuity 

of operations.” 

On March 21, Unity Bank Plc in 

a letter to the Nigerian Stock Exchange 

(NSE) notified shareholders 

and other stakeholders of the 

bank that it has not reached any 

agreement with Milost to warrant 

such speculation. 

The bank made further clarification 

that’s regarding its on-going 

recapitalization programme that it 

has not received any commitment 

for investment of $1billion from 

Milost Global Incorporated. 

Milost added that Bloomberg 

tried to reach them by “email but 

we didn’t respond as we don’t usually 

entertain journalists”. 

This is exactly the same manner 

they disregarded BusinessDay 

emails and calls but in their statement 

they said, “Milost Global Inc. 

wishes to clarify this due to the 

repeated unprofessional conduct 

of Business Day Nigeria...who are 

failing to verify facts and communicate 

with all sides before print.” 

“Last week, Unity Bank issued 

a false statement which denied 

signing a binding commitment 

agreement, disputing a factual and 

founded Bloomberg article that 

initially reported on the transaction”, 

according to Milost. 

“It was then agreed that Milost 

Global Inc. would start further 

due diligence on Unity Bank Plc. 

Further due diligence process 

started on the same week on the 

instruction of the Chairman of 

Milost Global Inc., Egerton Forster. 

Further due diligence was 

satisfactory and Milost issued a 

binding commitment agreement 

to Unity Bank which was approved 

by the board of Unity Bank and executed 

by both parties on November 

14, 2017,” the statement reads. 

“It is normal practice for all 

the publicly quoted companies 

which we fund to notify the market 

regulator on signature of the commitment 

letter since it has material 

effect to the stock; however, Unity 

Bank did not. Milost assumed that 

this did not happen because Unity 

had agreed to move its listing to 

the USA,” according to Milost. 

Meanwhile, another company- 

Aso Savings and Loans Plc- linked 

by media reports over a financing 

deal purportedly worth $250 

million with Milost, has also debunked 

such claims. 

“We dismiss this claim and 

wish to state that ASO had at no 

time issued any notice to Nigerian 

Stock Exchange (NSE) as purported 

in the media. ASO Savings 

& Loans Plc has not entered into 

any agreement with Milost Global 

Inc. Members of the public are implored 

to disregard the false news 

that has pervaded the media,” the 

bank said in a filing at the stock 

exchange. 

“Any change to ASO’s business 

structure or operations will be 

duly communicated by the Bank 

through the appropriate channels,” 

the bank said. 

Change of control provision 

A clause in a business contract which stipulates that if ownership of a majority of the equity of a company changes hands, then the other party to the contract 

has a right to cancel, usually without liability for paying any compensation 

Coscharis Farms, an integrated 

rice processor that started operations 

in 2014 has secured an 

investment from Sahel Capital, a fund 

manager for the Fund for Agricultural 

Finance in Nigeria (FAFIN). 

The worth of the investment was 

however not disclosed. 

The investment in Coscharis Farms 

came at the right time, as the farm is in 

the process of installing a 40,000 MT 

per year rice mill and wants to set up an 

irrigation system on its farm to enable 

multi‐cycle rice cultivation, according 

to Godwin Umeaka, Managing Director 

for Coscharis Farms. 

The rice mill and irrigation system 

are expected to be completed by the 

fourth quarter of the year. 

“The investment has come at a time 

when we are ready to scale up our operations 

quite significantly,” Umeaka said. 

The Nigerian rice farm currently has 

2,500hecters of land for rice cultivation, 

and it 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. This will also help meet part 

of the estimated 5.9 million MT annual 

rice demand in Nigeria. 

Coscharis Farms has benefited 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. 

Commenting on the investment, 

Cosmas Maduka, 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 

one that will also provide economic 

opportunities for smallholder farmers 

and young people in Anambra State. 

The Sahel Capital teams have 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 

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.” 

BusinessDay PRIVATE EQUITY & FUNDRAISING (Team lead: LOLADE AKINMURELE - Analysts: MICHEAL ANI, DIPO OLADEHINDE, ENDURANCE OKAFOR, DAVID IBEMERE ... Graphics: DAVID OGAR ) 

Businessday’s Private Equity and Fundraising section is a weekly publication that provides in-depth analysis on private equity trends and tracks deal activity in Nigeria. 

Email the PE & F team loladeakinmurele@gmail.com 

Continues on page 34


PRIVATEEQUITY 

&FUNDRAISING 

Private equity leaders 

to convene in Morocco 

The gathering of 

about 600+ private 

equity leaders in 

Marrakech, Morocco 

will mark 

the 15th Annual Conference 

of African Private Equity and 

Venture Capital Association 

(AVCA), scheduled to hold 

between Monday 23rd – Tuesday 

24th April 2018. 

This will mark the first time 

in nearly ten years that the 

largest African private equity 

and venture capital gathering 

globally will be returning to 

North Africa. As it will bring 

together thought leaders, investors, 

and advisors managing 

over US$1.3trn in assets. 

Hosted by AVCA, the agenda 

incorporates experienced 

industry perspectives from 

the likes of CDC Group, Coronation 

Capital, DLA Piper, 

and Verod Capital. 

This gathering will be taking 

place following other 

successful industry assembly 

in Abidjan, Accra, Addis 

Ababa, Cairo, Cape Town, and 

Lagos, the Pan-African industry 

association continues to 

showcase the fastest growing 

economies in the world by 

convening the industry in 

Morocco this April. 

Global and African dignitaries, 

investors, and business-leaders 

will discuss the 

latest developments affecting 

diverse industries and geographies 

within the private 

equity ecosystem. 

The landmark occasion 

will involve keynote addresses, 

panel discussions, investor 

and portfolio company 

spotlights, and roundtables 

from the following: 

Lamia Boutaleb, Secretary 

of State to the Minister of 

Tourism, Air Transport, Crafts 

and the Social Economy, 

Kingdom of Morocco 

Hicham Zanati Serghini, 

Chief Executive Offcer, la 

Caisse Centrale de Garantie 

Brahim Benjelloun-Toui- 

People & Perspectives 

mi, Group Executive Managing 

Director, Banque Marocaine 

du Commerce Exterieur 

Dr. Boutheina Ben 

Yaghlane, Chief Executive 

Officer, Caisse des Dépôts et 

Consignations (Tunisie)ZouhaÏr 

Bennani, Chief Executive 

Officer, Labelvie 

Adil Douiri, Chief Executive 

Officer, Mutandis 

Eric Lefort, Chief Executive 

Officer, Premium 

Mamadou Biteye, Managing 

Director, The Rockefeller 

Foundation 

Stéphane Bacquaert, Managing 

Director and Chief Executive 

Officer, Wendel Africa 

Isabelle Bébéar, Head of 

International Affairs and 

Management Programs, Bpifrance 

Investissement 

Antony Barker, Director of 

Pensions and Chief Investment 

Officer, Santander UK 

Nicolas Gauthey, Senior 

Strategist, Impact and Alternative 

Investments, AXA 

Investment Management 

Christophe Karvelis, Chief 

Executive Officer, Capzanine- 

Jeffrey Leonard, Chief Executive 

Officer, Global Environment 

Capital Company 

Vikram Raju, Executive Director 

and Portfolio Manager, 

Morgan Stanley Alternative 

Investment Partners 

Wellington Masekesa, Executive 

Assistant to the Chief 

Executive Officer, Public Investment 

Corporation 

Simon Nyakundi, Chief Executive 

Officer, Kenya Railway 

Staff Retirement Scheme 

Richard Rincón, Senior 

Investment Officer, Emerging 

Market, University of Texas 

Investment Management 

Company 

Murray Grant, Managing 

Director, Intermediated Equity, 

CDC GroupMaria Kozloski, 

Global Head and Chief 

Investment Officer, Private 

Equity Funds, International 

Finance Corporation 

Kevin Njiraini, Regional 

Lead, Private Equity Funds, 

Sub-Saharan Africa, International 

Finance Corporation 

Robert Zegers, Chief Investment 

Officer, The African 

Development Bank 

Locating the summit in 

Morocco reflects the tremendous 

growth that has taken 

place in North Africa over 

the past few years and highlights 

the country’s favourable 

business environment 

and powerful economy. 

Morocco accounts for the 

region’s largest share of private 

equity investments and 

following re-entry into the 

African Union (AU) Marrakech 

serves as the ideal 

location to celebrate the 

15th anniversary of AVCA’s 

Conference. 

The conference will focus 

on investment prospects 

within Africa, the continent’s 

infrastructure needs, how 

development finance institutions 

are supporting 

SMEs, startups as well as VC 

firms investing in them, new 

narratives driving the continent’s 

transformation, the 

rise of family offices looking 

to Africa, how African private 

equity funds are delivering 

alpha, sustainability and 

impact investing, and value 

creation via exits - all unique 

perspectives from a diverse 

range of investors shaping the 

industry and landscape. 

AVCA is a pan-African industry 

body which promotes 

private investment in Africa. 

AVCA’s diverse membership 

is united by a common purpose: 

to be part of the Africa 

growth story. With a global 

and growing member base, 

AVCA members span private 

equity and venture capital 

firms, institutional investors, 

foundations and endowments, 

pension funds, 

international development 

finance institutions, professional 

service firms, academia, 

and other associations. 

Companies&Markets 

Panoro in early talks to 

offload Aje field asset 


Oslo-listed international 

production 

and exploration 

company, Panoro Energy 

is in discussions with third 

parties about acquiring its 

16 percent stake in the Aje 

oil, gas and condensate field 

in Nigeria. 

According to international 

oil and gas media, Upstream, 

Panoro Energy is planning 

on selling its investment in 

the OML 113 oil field due 

to its high capital intensity, 

although the company remains 

objectively open for a 

farmout agreement. 

Farmout is the assignment 

of part or all of an oil, natural 

gas or mineral interest to a 

third party for development. 

The interest may be in any 

agreed-upon form, such as 

exploration blocks or drilling 

acreage. 

Panoro partook in the initial 

Aje expansion which targeted 

the field’s oil resources 

but, as a small company, it’s 

reluctant to invest in a future 

gas development that could 

cost about $400 million. 

An email sent to the address 

found on the company’s 

website seeking comment on 

Monday went unreplied. 

The proposed gas project 

could involve sending output 

to markets via the nearby 

West Africa Gas Pipeline 

(WAGP). 

The Aje Field was discovered 

in 1997 in water depths 

ranging from 100-1,500m. 

Unlike the majority of Nigerian 

Fields which are productive 

from Tertiary age 

sandstones, Aje has multiple 

oil, gas and gas condensate 

reservoirs in the Turonian, 

Cenomanian and Albian 

age sandstones. 

Five wells have been 

drilled to date on the Aje 

Field. Aje-1 and Aje-2 tested 

oil and gas condensate 

at high rates from the 

Turonian and Cenomanian 

reservoirs and Aje-4 

confirmed the productivity 

of these reservoirs and 

discovered an additional 

deeper Albian age reservoir. 

Aje-5 was drilled in 

2015 as a development 

well for the Cenomanian 

oil reservoir. The OML 113 

license has full 3D seismic 

coverage from surveys acquired 

in 1997 and 2014. 

In march 2014, federal 

government had approved 

Aje Field Development 

Plan (FDP) while in October 

2014 the Final Investment 

Decision (FID) for 

the project was made. The 

FDP describes a development 

of the Aje Cenomanian 

oil reservoir via two 

subsea wells, the new Aje- 

5 well and a re-completed 

Aje-4 well, and a leased 

FPSO, the initial 2 wells 

have been in production 

since May 2016. 

The Turonian gas condensate 

development 

phase is at the planning 

stage and will involved 3 

or 4 wells producing over 

500bcf of gas, 22MMbbls 

of condensate and 

40MMbbls of LPG. 

London based company, 

Panoro Energy holds 

high quality production, 

exploration and development 

assets in West Africa, 

namely the Dussafu 

License offshore southern 

Gabon, and OML 113 offshore 

western Nigeria.


C002D5556 

BUSINESS DAY 

35


36 BUSINESS DAY

Thursday 29 March 2018 

Bayelsa, Century Group partner for OML 46 oil/gas development 


The Bayelsa State 

Government as a 

key stakeholder 

in the oil and gas 

industry has made 

giant strides to effectively 

and efficiently harness her 

interest in a thousand ways, 

most notably through its oil 

company (Bayelsa Oil Company 

Limited) and its partners 

in OML 46 Atala field. 

The field was discovered, 

drilled, cased but not completed 

in 1982 by Shell Petroleum 

Development Company 

(SPDC). In 2004, it was 

farmed-out to the Bayelsa 

State Government and operated 

by the Bayelsa State Oil 

and Gas Company. 

This field was dormant for 

over a decade as the Bayelsa 

State Oil Company sought 

out adept ways to fund, develop 

and produce the asset. 

This challenge was not peculiar 

to the Bayelsa State Oil 

UBA expands London presence as UK subsidiary gets wholesale banking licence 

United Bank for Africa 

(UBA PLC), 

Africa’s global 

bank, announced 

today that its London subsidiary 

has obtained regulatory 

permission to carry 

out Wholesale Banking activities 

in the UK. Following 

this authorization, UBA is 

now the only Sub-Saharan 

African bank to conduct 

banking activities in New 

York and London, as well 

as in 20 other countries 

across Africa. 

Commenting on the 

landmark achievement, the 

Group Managing Director/ 

CEO, UBA PLC, Kennedy 

Uzoka said: “This authorization 

strengthens our capabilities 

in meeting the growing 

cross-border financing 

needs of our customers. 

It enhances our customer 

coverage and product offerings 

whilst positioning 

our Group as an optimal 

Company as she was among 

a league of State owned Oil 

companies that had been 

unable to develop fields they 

farmed into. 

In the turn of the year 

2018, its fortunes changed as 

it along with her funding and 

technical partner- Century 

Exploration and Production 

Limited (CEPL) successfully 

defied the paradigm and 

false belief in the Nigerian Oil 

and Gas industry that state 

owned oil companies cannot 

produce oil. 

The Bayelsa Oil and Gas 

Company and CEPL have 

successfully transformed the 

lot of the ATALA field despite 

the inherent challenge of 

funding and technical expertise. 

They deployed top drawer 

solutions and leveraged 

on a vast network of relationships 

to turn things around. 

The global energy market is 

one anchored on complex 

demand patterns and money 

moves. 

conduit for trade and foreign 

investments into and 

across Africa as well as export 

flows to the United 

Kingdom. Importantly, the 

licence will enable us to fulfill 

our aspiration of deepening 

financial intermediation 

in Sub-Saharan Africa 

and providing the muchneeded 

financial support 

to the broader real sector 

of the African economy,” he 

added. 

The CEO of United Bank 

for Africa (UK) Ltd (“UBA 

UK”), Andrew Martin noted 

further, “this enhanced positioning 

of our business is 

timely, as it comes at a time 

when the UK is seeking to 

expand trade and broaden 

economic ties with Nigeria 

and Africa in general.” 

As part of the transformation 

process, resulting 

from the authorization, 

the current name of UBA 

Capital (Europe) Ltd will 

For this reason, stakeholders 

in the sector simply 

cannot sleep. The landscape 

is ever dynamic and this explains 

why a lot of things that 

were previously thought to 

be impossible are now happening. 

There is now more 

pressure on field owners to 

develop and produce their 

assets to trigger genuine 

transformation and growth. 

It is believed that this rebirth 

initiated by the Bayelsa 

Oil Company and her partner, 

CEPL has left the door 

open for other state owned 

oil companies to look inwards 

and partner with indigenous 

companies to finance, 

operate, and develop 

erstwhile comatose assets for 

optimum youth engagement 

and improved revenue. 

Analysts say this is the 

only way out as privately 

owned indigenous companies 

are growing stronger 

thanks to their strong resolution 

to succeed as well as 

change to United Bank for 

Africa (UK) LTD. In addition 

to a full suite of treasury 

services, cash management, 

corporate lending 

and wholesale deposit offerings 

to professional and 

eligible counterparties, the 

operations of United Bank 

for Africa (UK) Limited 

now extends to all aspects 

of trade finance; issuance, 

acceptance, confirmation 

and refinancing of Letters 

of Credit of different variations, 

including SBLCs. 

UBA Plc, is a leading 

Pan- African financial institution, 

offering banking services 

to more than fourteen 

million customers, across 

1,000 business offices and 

customer touch points in 

19 African countries. UBA 

is connecting people and 

businesses across Africa 

with presence in the United 

States of America, the United 

Kingdom and France. 

the efforts of the Nigerian 

Content Development and 

Monitoring Board (NCDMB) 

to transform the capacity 

and competence pool of the 

country. 

Today, privately owned 

companies are doing very 

well in supporting the NNPC, 

NPDC and IOCs quest to 

achieve set objectives and 

this support must be utilized 

by state governments and 

state oil companies. 

The Bayelsa state success 

must be replicated as it 

is proof that the financial responsibility 

to develop and 

produce fields can be undertaken 

by indigenous companies 

and the technical knowhow 

is also not lacking. 

The blueprint of Bayelsa 

State shows that states can be 

involved in the oil business 

without spending a kobo 

of tax payers’ money but 

through quality partnerships 

geared towards a common 

good. 

L-R: Jamiu Badmos, head, health safety and environment, Ikeja Electric; Ibiene Okoleke, chief human resource officer, Ikeja 

Electric; Oluwatoyin Ogundipe, vice chancellor, University of Lagos (UNILAG); Felix Ofolue, head, corporate communications, 

Ikeja Electric, and Ben Oghojafor, deputy vice chancellor, management services, UNILAG, during the presentation of Ikeja 

Electric’s Power Play Board Game to University of Lagos in Lagos, yesterday. 

Pic by Pius Okeosisi 

C002D5556 

BUSINESS DAY 

37 

NEWS 

Remarks by Muhammadu Buhari, president, 

Federal Republic of Nigeria, at the NEC meeting 

of the apc Tuesday, March 27, 2018 

Chima, CIA president, appointed Caleb University professor 

Caleb University, 

Imota, Lagos, has 

appointed Dr. 

George Uzoma 

Chima, president and 

chairman of Council of the 

Chartered Institute of Administration 

of Nigeria, as a 

professor of entrepreneurship 

and business administration 

in recognition of his 

impacts in business and the 

academia. 

Professor Daniel Ayandiji 

Aina, the vice chancellor 

of the university and his 

team, said the appointment 

followed Professor 

Chima’s practical industry 

experience, entrepreneurial 

and business management 

expertise and academic 

prowess. 

The vice chancellor and 

his team added that the 

appointment of Chima 

would afford the Master 

of Business Administration 

(MBA) students of the 

FOR THE RECORD 

Protocols: 

I 

am delighted to once again 

welcome you to this National 

Executive Committee 

Meeting of our great party. 

As we usually do, I hope we 

will take the opportunity 

of this gathering to resolve 

outstanding issues and consolidate 

our plans towards 

making APC the strongest defender 

of the interests of our 

people. 

•In particular, I think it is 

important for me to speak 

quickly on the contentious 

issue of the tenure of our National 

and State Executive 

Officers. As we all know, a 

motion was moved at the last 

National Executive Committee 

meeting of February 27, 

2018, to the effect that when 

the tenure of the current executives 

expire in June this 

year, they should be allowed 

to continue for one year. 

•This motion was duly carried 

by a majority of members 

present at the last NEC Meeting, 

even though some of our 

party members have since 

spoken up very vehemently 

against it. Others have even 

taken the matter to court. 

•On my own part, I have 

taken some time to review 

and seek advise on the resolution. 

And what I found is that 

it contravenes both our party 

Constitution and the Constitution 

of the Federal Republic 

of Nigeria. 

•While the APC Constitution, 

in Article 17(1) and 

13.2(B), limits the tenure of 

elected officers to four years, 

renewable once by another 

election, the 1999 Constitution 

of Nigeria (as amended), in 

section 223, also prescribes periodic 

elections for party executives 

at regular intervals, which 

must not exceed four years. 

•Furthermore, Article 31 

university the opportunity 

to acquire both quality 

academic knowledge and 

practical experience of entrepreneurship 

and business 

management from the 

author of “Organisational 

Leadership Strategies in 

a Developing Economy” 

and “New Leadership Approach: 

A Paradigm Shift.” 

In his congratulatory 

message, Professor Gabriel 

Emecheta, Professor of Accounting 

and Financial 

Management and Head 

of the Department of Accounting, 

Banking and Finance 

at the university said 

Professor Chima’s appointment 

is well deserved. 

Professor Emecheta 

added that Entrepreneurship 

and Business Management 

today have gone 

beyond textbook theories. 

He stressed that Professor 

Chima is thus better practically 

equipped to teach 

of our Party Constitution provides 

that any principal officer 

wishing to re-contest or 

contest for another post, must 

resign from his current post 

at least one month before the 

election 

•In this circumstance, 

what is expected of us is to 

conduct fresh elections, once 

the tenure of the current executives 

approaches its end. 

A Caretaker Committee cannot 

remedy this situation, and 

cannot validly act in place of 

elected officers. 

•Furthermore, I think if 

we deviate from the constitutional 

provisions, we might 

be endangering the fortunes 

of our party. If the tenure of 

our party executives can be 

legally faulted, then it means 

that any nominations and primary 

elections that they may 

conduct, can also be faulted. 

•This is not to talk of divisions 

that would arise, and is 

already arising within the party, 

when some of our members 

feel that they are being 

denied the right to aspire to 

executive positions, or that 

internal democracy is not at 

play within the party. 

•I am therefore of the firm 

view that it is better to follow 

strictly the dictates of our party 

and national constitutions, 

rather than put APC and its 

activities at grave risk. 

•Fortunately, we have already 

approved a timetable 

for the holding of congresses 

and elections. I think these 

should be allowed to go forward 

and all efforts should 

now be geared towards making 

them a great success. 

•Once again, I welcome 

you all to this meeting with 

the hope that we will promote, 

always, the highest interest 

of the party and of our 

people. 

Entrepreneurship and Business 

Management, given 

his industry experience and 

immense academic ability. 

Professor Emecheta 

hinged his inference on 

Professor Chima’s distinction 

on the popular religious 

maxim that “You cannot 

be more Catholic than 

the Pope.” 

Professor Chima is a 

Management Consultant 

with over 30 years’ professional 

experience in leadership 

roles, organisational 

development, human 

resource management, entrepreneurship 

and change 

management. 

He holds a Ph.D in Entrepreneurial 

and Business 

Administration from California 

University; another 

Ph.D in Management from 

Universidad Empresarial 

De Costa Rica and Master of 

Public Administration from 

the University of Lagos.


C002D5556 


NEWS 

Bayelsa, Century... 


Oil and Gas industry that state 

owned oil companies cannot 

produce oil. 

The Bayelsa Oil and Gas Company 

and CEPL have successfully 

transformed the lot of the ATALA 

field despite the inherent challenge 

of funding and technical 

expertise. They deployed top 

drawer solutions and leveraged 

on a vast network of relationships 

to turn things around. 

The global energy market is 

one anchored on complex demand 

patterns and money moves. 

For this reason, stakeholders 

in the sector simply cannot 

sleep. The landscape is ever 

dynamic and this explains why 

a lot of things that were previously 

thought to be impossible 

are now happening. There is now 

more pressure on field owners to 

develop and produce their assets 

to trigger genuine transformation 

and growth. 

It is believed that this rebirth 

initiated by the Bayelsa Oil Company 

and her partner, CEPL has 

left the door open for other state 

owned oil companies to look inwards 

and partner with indigenous 

companies to finance, operate, and 

develop erstwhile comatose assets 

L-R: Segun Agbaje, GMD/CEO, GTBank; Segun Ajibola, president/chairman of council, The Chartered Institute 

of Bankers of Nigeria (CIBN); Herbert Wigwe, GMD/CEO, Access Bank plc/chairman, Body of Bankers’ CEO; 

Emeka Emuwa, GMD/CEO, Union Bank plc, and Bola Adesola, MD/CEO, Standard Chartered Bank, during 

a press conference to unveil The Shared Agent Network Plan-Deepening Financial Inclusion in Nigeria, held 

in Lagos, yesterday. 

Pic by Olawale Amoo 

Tenure elongation for Oyegun, others... 


to the National Working Committee 

(NWC) of the ruling All 

Progressives Congress (APC) led by 

the National Chairman, John Odigie- 

Oyegun and other executive 

members at the state level is illegal. 

President Buhari, who was 

joined by Vice President, Yemi 

Osinbanjo, made this declaration 

at the 6th APC NEC meeting in 

Abuja on Tuesday stressing that 

the tenure elongation is not only 

against the party’s constitution 

but against the constitution of the 

Federal Republic of Nigeria, which 

mandates that elections should 

be held after a four year- term for 

elected officers of the party. 

The party’s agenda for Tuesday’s 

NEC meeting was originally anchored 

on the issues of the Party’s 

recommendation for Restructuring 

and True Federalism, which 

it recently presented to the public 

for optimum youth engagement 

and improved revenue. 

Analysts say this is the only 

way out as privately owned indigenous 

companies are growing 

stronger thanks to their strong 

resolution to succeed as well as 

the efforts of the Nigerian Content 

Development and Monitoring 

Board (NCDMB) to transform 

the capacity and competence 

pool of the country. 

Today, privately owned companies 

are doing very well in 

supporting the NNPC, NPDC 

and IOCs quest to achieve set 

in February as well as the party’s 

constitution amendment. However, 

President Buhari’s declaration 

abruptly changed the agenda even 

as he charged that any of the party 

executive officers who are interested 

in continuity should resign 

and present themselves for election. 

The NEC in their last meeting 

held in February 27th in Abuja had 

decided to extend the tenure of the 

entire executive at all levels for 12 

months, a move which raised serious 

controversy as some members 

opposed the decision and filed 

court cases against the party. 

President Buhari at Tuesday’s 

NEC meeting, stressed that even a 

caretaker committee cannot remedy 

the situation and act in place 

of elected officials. 

“While the APC constitution 

in article 17 (1) and 13 (b) limits 

the tenure of elected officers to 

four years renewable by another 

election, the 1999 constitution of 

objectives and this support must 

be utilized by state governments 

and state oil companies. 

The Bayelsa state success must 

be replicated as it is proof that 

the financial responsibility to 

develop and produce fields can 

be undertaken by indigenous 

companies and the technical 

know-how is also not lacking. 

The blueprint of Bayelsa State 

shows that states can be involved 

in the oil business without spending 

a kobo of tax payers’ money 

but through quality partnerships 

geared towards a common good. 

Nigeria as amended, in section 

223 also prescribed periodic election 

for party executives at regular 

intervals which must not exceed 

four years. 

“Furthermore, article 31 of our 

party constitution provides that 

any principal officer wishing to 

re-contest or contest for another 

post must resign from his current 

post at least one month before the 

election. In this circumstance, what 

is expected of us is to conduct fresh 

election once the tenure of the current 

executive approaches its end. 

“A caretaker committee cannot 

remedy the situation and act in 

place of elected officials. Furthermore, 

I think that if we deviate from 

the constitutional provisions, we 

might be endangering the fortunes 

of our party. 

“If the tenure of our party executive 

can be legally faulted, it means 

that any nomination and primary 

election they may conduct can also 

be faulted. 

This is not to talk of divisions that 

Atiku flags off presidential election... 


and infrastructural sectors 

through poor budgetary allocations 

and releases. 

He said: “Since 2015, we have 

not seen 100 kilometres of roads 

constructed by the APC Federal 

Government anywhere in the 

country.” 

The Former Vice President 

said that the APC Federal Government 

has destroyed the foundation 

of unity and cohesion of 

the country. 

Atiku, who is said to be a 

patron of Miyetti Allah said: “I 

have never seen Nigeria so divided 

along religious, ethnic and 

regional lines. This division is as 

a result of the mismanagement 

of the APC”. 

The Presidential hopeful 

called for the unity of the country, 

saying that no component 

part of the country will progress 

alone. 

Atiku, who was the first from 

the North to support the restructuring 

of the country, called 

on Rivers PDP stakeholders to 

support his ambition to emerge 

as the party’s presidential candidate. 

Speaking as host, Gov Wike 

declared that all Nigerians must 

take up the solemn responsibility 

of sacking the non-performing 

APC Federal Government 

in 2019. 

The PDP leaders spoke at the 

Government House Port Harcourt 

on Tuesday during a visit 

by the Former Vice President 

who was in the state to consult 

with Rivers State PDP Leaders. 

Governor Wike urged all PDP 

members irrespective of their 

status to ensure that the march 

to the Presidential Villa is not 

truncated by disunity. 

He urged all PDP presidential 

aspirants to contest within acceptable 

limits as the race is not 

a do-or-die affair, but a movement 

to oust a failed APC Federal 

Government. 

“Every presidential aspirant 

must see himself as a member of 

the larger PDP family. We must 

do everything to ensure that PDP 

may arise or is already arising within 

the party when some of our party 

members feel that they are being 

denied the right to aspire to executive 

positions or that internal democracy 

is not at play within the party. 

“I am therefore of the firm belief 

that it is better to follow strictly the 

dictate of our party constitution 

rather than put APC and it activities 

at grave risk.” 

President Buhari also warned 

party faithful not to allow internal 

dissension to derail the party to 

avoid being exploited by the opposition 

saying “we should not 

allow our party to be vulnerable 

and susceptible to the opposition 

by delaying us and go to court and 

quoting appropriate constitutional 

provision from either the party or 

national constitution to delay us or 

divide us further. Please take note 

of this my statement.” 

Speaking to reporters shortly after 

the NEC meeting, APC National 

Publicity Secretary, Bolaji Abdullahi, 

who had earlier said that the 

returns to the Presidential Villa 

in 2019. 

“Only one aspirant will become 

a candidate. We will do 

everything to ensure that the 

party comes out with a candidate 

that has a track record to upstage 

the APC”. 

The governor said that he has 

received former Jigawa State 

governor, Sule Lamido, and 

now former Vice President Atiku 

Abubakar, noting that other 

aspirants would be offered the 

platform to consult with Rivers 

PDP members. 

“God will make sure that the 

right candidate emerges. When 

the right candidate emerges, we 

will team up and remove this bad 

government. 

“There is no benefit that Rivers 

State has gotten from this 

APC Federal Government. All 

the APC Federal Government is 

doing is plotting to rig the 2019 

elections, “ Governor Wike said. 

He said that the former vice 

President has the right qualification 

to fly the PDP flag, noting 

that he should extend his consultations. 

Also speaking, former Enugu 

State Governor, Okwesilieze 

Nwodo said that Atiku Abubakar 

is a detribalised Nigerian, 

with the capacity the rescue the 

country. 

Former Ogun State Governor, 

Otunba Gbenga Daniel, said Atiku 

is a true Nigerian with business 

and political links across 

the country. He said Nigeria 

needs Atiku Abubakar to revive 

the country. 

Former Vice President Atiku 

Abubakar was accompanied 

to Rivers State by former Ogun 

State Governor, Otunba Gbenga 

Daniel, former Enugu State 

Governor, Okwesilieze Nwodo, 

former Attorney General of the 

Federation, Michael Aondoakaa, 

and a Senator, Abdul Ningi. 

Atiku met with State and 

Federal Lawmakers, Caretaker 

Committee Chairmen of Local 

Government Areas and Party 

Leaders. 

party will sanction those who had 

dragged it to court over the issue 

of tenure elongation, said that the 

party will set a technical committee 

to look into President Muhammadu 

Buhari’s advice. He added that the 

decision of the NEC on tenure elongation 

stands until further notice. 

The Secretary to the Government 

of the Federation, Boss 

Mustapha, about 17 APC state 

governors and 4 other deputies attended 

the meeting. Some of them 

are; Kogi State Governor, Yahaya 

Bello; Edo State Governor, Godwin 

Obaseki; Kano State Governor, 

Abdullahi Ganduje and Ondo 

State Governor, Rotimi Akeredolu. 

Others are; Bauchi State Governor, 

Mohammed Abubakar; Jigawa 

State Governor, Abubakar Badaru 

; Kebbi State Governor, Atiku Bagudu; 

Imo state Governor Rochas 

Okorocha among others. 

Kogi state governor, Yahaya 

Bello, in his reaction said the issue 

“is a family issue” that will be 

resolved.


Lagos leather fair ‘The New 

possible’ holds May 5 - 6 

Nigeria working to improve trade relations 

with partner in Europe - ambassador 

IGNATIUS CHUKWU & DAVID EJIOHUO 

The Netherlands is 

now Nigeria’s biggest 

trade partner in 

Europe, according 

to Nigeria’s ambassador to 

the Netherlands, Ejior Ngofa, 

who says Nigeria is working 

hard to improve it. 

Ngofa made the declaration 

when he passed through 

the Port Harcourt International 

Airport and spoke with 

BusinessDay. The Elemeborn 

ambassador said the 

United Kingdom was no 

longer Nigeria’s biggest trade 

partner in Europe. 

He talked about plans to 

boost the trade partnership 

but feared that consistent 

soiling of Nigeria’s image was 

a threat to trade expansion. 

The list of Dutch companies 

in Nigeria is long, 

including Shell, Heineken, 

APM Terminal (one of the 

largest port and terminal operators 

in the world), Peak 

Milk, Unilever, etc. Many say 

the volume of trade between 

The Lagos Leather 

Fair is a first of its 

kind in Nigeria for 

all the stakeholders 

along the leather value 

chain, and was created to 

identify the challenges facing 

the industry with the 

hope to discuss possible innovative 

and sustainable solutions. 

The first edition held last 

year, and this year the fair is 

scheduled to hold on the 5th 

and 6th of May, 2018 at the 

Federal Palace Hotel, Lagos. 

Founded by Femi Olayebi 

of FemiHandbags, the fair is 

a private initiative that seeks 

to promote leather designers 

by creating a networking 

platform to showcase their 

work and eventually provide 

the much-needed training 

for artisans that would essentially 

improve the general 

quality of our finished 

products. 

Last year, over 2,500 people 

gathered for the first edition 

of the fair to learn from 

the various master classes, 

panel discussions and creative 

workshops. Attendees 

also got to shop and discover 

Made-in-Nigeria leather 

products from over 50 leather 

exhibitors. 

With the diverse local and 

international speakers such 

as Waheed Olagunju, Segun 

Awolowo, Muni Shonibare, 

Reni Folawiyo,Tokunbo Onagoruwa, 

Zainab Ashadu, 

Robert Gussoni, Nelly 

Wandji, and not least of all 

the able representative of 

the Emir of Kano, Isyaku 

Umar Tofa, the fair was educational 

and impactful. 

The leather industry has 

been identified by the Bank 

of Industry to generate an 

annual income of N24.5 billion 

with limited support 

and also have the capacity 

to create over 700,000 direct 

and indirect jobs, therefore 

implying that the industry 

has not been maximized to 

its full potential. 

According to the minister 

of science and technology, 

Ogbonnaya Onu, who spoke 

at the validation workshop 

on National Leather and 

Leather Products Policy held 

in Sokoto in January 2018, 

‘the leather industry is the 

nation’s next gold mine and 

holds the key to industrial 

growth, jobs and wealth creation’. 

He also described the 

leather industry as ‘strategic 

in view of its importance in 

the economic diversification 

of the country’. 

This year, the fair is 

themed ‘The New Possible’ 

as it will focus on the many 

possibilities and massive 

potential the Nigeria leather 

industry has to offer. To 

encourage up and coming 

designers, the “Emerging 

Designers Competition” 

has been introduced, and is 

aimed at giving young, aspiring 

leather designers an 

opportunity and a platform 

to showcase their work. The 

top 5 finalists will win a cash 

prize, a mentoring opportunity 

and a booth at the Fair. 

According to Femi 

Olayebi (founder, The Lagos 

Leather Fair), “Last year’s 

event was a real eye-opener 

for everyone. This year, we 

intend to explore the myriad 

possibilities before us 

and do what we can with 

what we have to own that 

space. The world is looking 

to Africa for answers 

and the time has come to 

position ourselves for real 

growth. At the end of the 

day it is really up to us”. 

the two countries has continued 

to rise since 2003, and 

that the Nigeria-Netherlands 

Chambers of Commerce is 

one of the oldest in Nigeria. 

Records indicate that 

trade between the Netherlands 

and Nigeria was as 

high as N80.9 billion in the 

second quarter of 2015. The 

Dutch Growth Fund is said to 

be one of the strategies Netherlands 

is using to stimulate 

Nigerian economy. “It is 

open for Nigerian businessmen 

and women to access,” 

according to an official few 

years ago. 

Now, Ngofa disclosed 

that Nigeria had had a robust 

trade and investment 

relations with the Dutch. 

The Dutch, he pointed out, 

were coming into Nigeria to 

invest because they understand 

the situation in the 

country better. 

Ngofa said, “Yes, they 

are in terms of trade, investment, 

and FTI, and we are 

working to improve on it as 

to make it more beneficial.” 

National Assembly defers 2018 

budget approval till May 

KEHINDE AKINTOLA & 

OWEDE AGBAJILEKE, Abuja 

Contrary to expectations 

that the 

N8.612 trillion 

2018 budget estimates 

would be 

passed by April, the National 

Assembly has deferred the 

approval of this year’s budget 

till May 2018. 

This comes as the legislators 

extended the lifespan 

of the capital component of 

the 2017 budget till May 31st, 


This was contained in 

a letter by the Joint Senate 

and House of Representatives 

Committee on Appropriation 

to the Accountant 

General of the Federation on 

Monday. 

Chairman, House Committee 

on Appropriations, 

Mustapha Dawaki, stated 

BusinessDay launches BusinessDay TV App 

BusinessDay videos 

are now available to 

smartphone users 

with the launch of the 

BusinessDay TV App. The app 

is available to download from 

Google Play Store. 

The app shows the latest 

BusinessDay videos, including 

high-quality analysis and 

coverage of the leading stories 

and issues in politics, business 

and finance. It also broadcasts 

culture and lifestyle features 

and a text scroller of the latest 

Businessdaynews headlines. 

Frank Aigbogun, BusinessDay 

publisher, said, “We 

see great demand for our 

video content on Businessdayonline.com, 

YouTube and 

through our mobile apps – 

video views in 2017 were up 

CHANGE OF NAME 

I, formerly known and addressed 

as Miss Awe Omotola 

Comfort now wish to be known 

and addressed as Mrs Olawoya 

Omotola Comfort. All former 

documents remain valid. General 

Public please take note. 



as Jennifer Chinwe 

Azuka-Okocha now wish to 

be known and addressed as 

Jennifer Chinwe Ebbi. All former 

documents remain valid. 

General Public please take note. 



as Miss Ashinedu Ozuem now 

wish to be known and addressed 

as Mrs Ashinedu O. Opone. All 

former documents remain valid. 




as Donald Okoh now wish to 

be known and addressed as 

Shotade Samuel Sunday. All 



11 percent. Mobile Appextends 

our journalism to the 

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demonstrating our commitment 

to subscribers by delivering 

content through new 

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partner with Kalibrate Africa 

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Hercules Venter, Kalibrate 

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the major change is actually 

reflected in the means 

to distribute it.” 

The app is available to 

download from Google 

Play store and access via 

PWA direct on mobile, tablet, 

or desktop at https:// 



as Miss Peace Aimurie 

Odin now wish to be known 

and addressed as Mrs Peace 

Aimurie Okoruwa. All former 





as Miss Isioye Suliat Akorede 

now wish to be known and 

addressed as Mrs Oreshile 

Zhulaykha Akorede Isioye. All 





as Ntafiong Glory Unwana now 


as Dominic Glory Unwana. All 



CORRECTION OF NAME 

This is to inform the general 

public that my name was 

wrongly written as Margaret 

Bebuo instead of my correct 

name which is Margaret Ewa 

Bebuo. Union Bank Nigeria Ltd 

and genral public please take note. 

C002D5556 

this at the 2018 National 

Budget Hearing in Abuja on 

Tuesday. The programme 

was jointly organised by 

the Joint Senate and House 

Committees of Appropriation. 

Although President Muhammadu 

Buhari had in his 

presentation of the 2018 appropriation 

bill to a joint session 

of the National Assembly 

on November 7, 2017, 

called for speedy enactment 

of the budget by December 

31st, 2017 to allow for the 

January to December budget 

cycle, both legislative chambers 

have blamed the late 

approval of the bill on refusal 

of heads of ministries, 

departments and agencies 

to show up to defend their 

respective budgets. 

Speaking after the Minister 

of Power, Works and 

Housing, Babatunde Fashola, 

made his presentation at 

the event, Dawaki, however, 

explained that if the budget 

is not passed by April 24th 

as assured by the Speaker, 

House of Representatives, 

Yakubu Dogara, then the 

N2.06 trillion 2017 capital 

budget would run till May 

31st, 2018. 

He said that contractors 

should continue working, 

adding that budget account 

will not be closed until 

passed and assented to by 

the president or until the 

31st of May, 2018. 

His words: “We are told 

that the office of the Accountant 

General is expected 

to close the account 

as at March ending. But we 

have written a letter yester- 

tv.businessdayonline.com 

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as Udoh Essien Robert now 


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as Miss Olarinde Jelilat Oluwatosin 

now wish to be known and 

addressed as Mrs Giwa Olarinde 

Jelilat Oluwatosin. All former 





as Miss Akintola 

Oluranti Omolara now wish to 

be known and addressed as Mrs 

Okanlawon Oluranti Omolara. 

All former documents remain valid. 




as Miss Amadi 

Jennifer Chidinma now wish to 

be known and addressed as Mrs 

Onochie Jennifer Chidinma. All 





as Patricia Odufunke 

Odujobi now wish to be known 

and addressed as Shodipe 

Peniel Ojuolape. All former 



BUSINESS DAY 

... We will not abandon constituency projects – Dogara 

39 

NEWS 

day (Monday) drawing his 

attention to the fact that the 

budget should be extended 

to May 31st. 

“But if the budget passes, 

as expected to happen 

on the 24th of April, and 

the President assents to it, 

whichever comes earlier 

then the Accountant General 

should strictly adhere to 

the content of that letter. 

“So, contractors should 

continue working. Budget 

account will not be closed 

until budget is passed or assented 

by the President of 

until 31st of May, 2018”. 

Analysts have warned 

that the delay in passing the 

2018 budget could undermine 

the effective implementation 

of the 2017-2020 

Economic Recovery and 

Growth Plan (ERGP). 

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as Salewa Victoria kupoluyi now 


as Salewa Victoria Rasaki. All 





as Miss Adeola 

Olamiji Onanuga now wish 

to be known and addressed as 

Mrs Adeola Oladimeji Awe. All 





as Miss Bukola Funmilade 

Fakorede now wish to be known 

and addressed as Mrs Bukola 

Funmilade Esemuru. All former 





as Manager Ufuoma 

Michelle now wish to be known 

and addressed as Ufuoma 

Michelle Edema. All former 





as Adebayo Tawakalitu Modupe 

now wish to be known and addressed 

as Adebayo Tosin 

Stephanie. All former documents 

remain valid. General Public 

please take note.


BUSINESS DAY 

A1

A2 

NEWS 

BUSINESS DAY 

C002D5556 

C&I Leasing reports PAT of N1.1bn in 2017 


C&I Leasing Plc 

has announced 

its audited results 

for the 

year ended 31 

December 2017, showing 

significant growth in 

the financial performance 

among other positive 

trends in the period. 

The leasing financial 

institution audited results 

showed revenue growth 

of 26 percent Year on Year 

(YoY) to N21.4 Billion in 

2017 from N17.0 Billion in 

2016 and a 21 percent YoY 

increase in Profit After Tax 

(PAT) to N1.1 Billion in 

2017 from N920.9 million 

in 2016. 

“This was achieved 

through a combination of 

more efficient utilisation of 

assets and heightened focus 

on our productivity agenda 

of growing the business 

more efficiently,” Andrew 

Otike-Odibi, CEO of C&I 

Leasing, said. 

“We saw sustained 

Flutterwave, Flywire to ease Int’l payments for Nigerians 

FRANK ELEANYA 

Flutterwave has announced 

collaboration 

with Flywire to 

streamline payment 

transactions for Nigerian 

students, patients, and businesses. 

The company is a 

payments technology company 

that provides seamless 

and secure payment solutions 

to banks and businesses 

across Africa. 

On the other hand, Flywire 

is a provider of global 

payment and receivables 

solutions for education and 

healthcare sectors, connecting 

over 1,400 businesses 

and institutions with its customers 

on six continents. 

Flywire processes billions 

in payments per year from 

220 countries and territories, 

bank transfer, credit card and 

e-wallet solutions, in over 120 

different local currencies. 

It was gathered that the 

growth in our fleet management 

and marine businesses 

and additional benefits 

and synergies from expansion 

of our lease rental portfolio. 

Across sectors, we see 

growth opportunities in the 

Banking, Power, Energy, 

Aviation, construction and 

Rail in coming periods,” 

Otike-Odibi said on the 

company’s official website, 

according to the financial 

report released on Monday. 

Also, earnings per share 

grew to 65.85 kobo which 

was up 21.6 percent YoY 

increase compared to 54.17 

kobo in 2016. 

The company’s net operating 

income grew by 29.1 

percent YoY to N7.4 billion 

compared to N5.7 billion 

in 2016. The key drivers of 

the improvement are expansion 

in the existing contracts 

in fleet management 

services, daily car rentals 

and tracking business, as 

well as the acquisition of 

4 new patrol boats and 1 

AHTS Escort vessel in fixed 

term contracts as earlier 

partnership with Flutterwave 

involves the integration of 

Rave, Flutterwave’s collections 

solution that will enable 

students, patients, and businesses 

in Nigeria to pay their 

fees and bills using their local 

cards and bank accounts. 

“Despite the billions of 

dollars being invested in international 

education, healthcare 

and business goods and 

services by Africans every 

year, the payment process 

remains complex and slow, 

with too much paperwork 

and costly information gaps,” 

the Co-founder and Chief Executive 

Officer, Flutterwave, 

Iyinoluwa Aboyeji , said. 

He added, “Our partnership 

with Flywire makes it 

possible for people in Nigeria 

and all across Africa to make 

these investments more confidently 

and hassle-free. We 

are very proud to partner 

Flywire to enable more Africans 

to become citizens of 

highlighted. 

Operating expenses 

made up of lease assets 

maintenance expense, 

Insurance, Hertz driver’s 

crew salaries, fuelling, accessories 

and other marine 

expenses grew 46.2 

per cent to N4.9 billion YoY 

compared to N3.4billion in 

2016. This growth in operating 

expenses reflects the 

significant expansion in the 

volume of the business over 

the period. 

There was a Year-to-date 

growth in total assets of 17.2 

percent to N45.0 billion in 

December 2017 which was 

driven largely by growth in 

operating lease assets with 

commensurate improvements 

in profitability already 

being experienced 

and also expected to subsist 

in coming periods as a result 

of planned future investments. 

Also, the audited results 

showed borrowings grew 

by a total of 18.5percent to 

N35.9 billion compared to 

N30.3 billion in Decem- 

the world.” 

Findings from a research 

conducted by our correspondent 

shows that Nigeria 

is the number one source of 

international students and 

patients in universities and 

hospitals from Africa. 

More so, a report by the 

Higher Education Statistical 

Authority for the 2016/2017 

academic session showed 

that 15,000 Nigerians were 

studying at universities in 

Britain and the United Kingdom, 

while another 10,000 

were studying in United 

States universities. 

According to a World 

Bank report, Nigerians spend 

$1bn annually on medical 

treatment abroad. The country 

is a thriving market for 

international payments and 

trade, exporting an estimated 

$35bn worth of goods and 

services each year, and importing 

over $30bn worth of 

goods and services each year. 

ber 2016 as a result of the 

acquisition of additional 

operating lease assets in its 

marine business. In spite 

of the increase in the level 

of borrowings, its debt efficiency 

ratios trended lower, 

reflecting the impact of better 

operational and financial 

performance, coupled with 

debt repayments in line with 

the agreed schedule as they 

expect a substantial part of 

fleet finance lease facilities 

to be paid down by 2018. 

“As a management team, 

we are continually appraising 

the opportunities 

presented by the current 

economic conditions with 

a view to optimising group 

synergies. Furthermore, 

demonstrating the benefits 

of diversification, our subsidiaries 

(Leasafric, Ghana 

and EPIC International 

FZE, United Arab Emirates) 

contributed about 24 percent 

to the Group’s revenue 

for the period, relative to 15 

percent in the same period 

in 2016,” Otike-Odibi concluded. 

L-R: Jubril Aku, chairman, SunTrust Bank; Muhammad Jibrin, managing director/chief executive officer, SunTrust Bank, and Okan 

Altasli, regional offices director, Islamic Corporation for Developement (ICD), at the signing of memorandum of understanding 

between SunTrust Bank and Islamic Corporation for the Development (ICD) in Lagos, yesterday. 


CBN, banks, others to roll out 500,000 

shared agent network 


Central Bank of Nigeria 

(CBN), deposit 

money banks, 

Mobile Money Operators, 

and Super Agents 

are to roll out a 500,000 

shared agent network 

within two years, to deepen 

financial inclusion in the 

country. 

The agreement entails an 

aggressive rollout of 500,000 

agent network within two 

years to offer basic financial 

services, such as Cash-in, 

Cash-out, Funds Transfer, 

Bill Payments, Airtime 

purchase, government disbursements 

as well as remote 

enrolment on BMS 

Infrastructure (BVN) to an 

estimated 50 million Nigerians 

that are currently under-banked 

or unbanked. 

Consequently, licensed 

Mobile Money Operators 

Local debts: Buhari seeks legislative approval 

to issue over N2trn promissory notes 

KEHINDE AKINTOLA, Abuja 

President Muhammadu 

Buhari is seeking 

approval of the 

National Assembly 

for the issuance of over N2 

trillion promissory notes to 

offset inherited local debts. 

Buhari stated this via a 

letter read by speaker, House 

of Representatives, Yakubu 

Dogara, on the floor of the 

House during Tuesday plenary. 

“I wish to convey the resolution 

of the Federal Executive 

Council (FEC) requesting 

the National Assembly 

to pass a bill to effect the 

promissory note and bond 

issuance programme to clear 

the long standing obligation 

inherited by this administration,” 

Buhari said. 

According to Buhari, the 

promissory note and bond 

issuance programme be- 

and Super Agents are expected 

to deploy financial 

services agents’ outlets immediately 

in underserved 

urban and rural areas in Nigeria, 

with higher priority in 

the Northern geo-political 

zones where financial exclusion 

is most predominant. 

The approved CBN– 

Bankers Committees’ rollout 

ratio is as follows: North- 

East 30 percent; North-West 

30 percent; North-Central 

20 percent; South-South 

7.5 percent; South-East 7.5 

percent, and South-West 5 

percent. Some of the prequalified 

CBN Licensed operators 

include Capricorn 

Digital Limited, Cellulant 

Nigeria Limited, eTranzact 

Limited, Innovectives Limited, 

Inlaks Limited, Interswitch 

Financial Inclusion 

Services Limited, Paga Tech 

Limited and Unified Payments 

Nigeria plc. 

comes imperative to clear 

these obligations that include 

unpaid issuance obligations 

to pensioners, salaries 

and promotional arrears 

to civil servants, obligations 

to pay oil marketers, contractors 

and suppliers’ debts, 

tariffs 2014, export expansion 

grant (EEG), judgment debts, 

refunds to state governments 

for projects undertaken on 

behalf of the Federal Government. 

“As you may be aware, 

section 41, subsection 1(e) of 

the Fiscal Responsibility Act 

(FRA) stipulates that the process 

of borrowing by the government 

at all tiers shall be 

applied solely towards capital 

expenditure, provide legal 

backing to clear the recurrent 

of the obligations requesting 

for amendment of the Fiscal 

Responsibility Act, via a letter 

dated 4th August 2017,” the 

letter read further. 

FCMB Capital Markets facilitates LAPO MFB’s N3.15bn bond listing on FMDQ 


FCMB Capital Markets 

Limited, the 

investment banking 

subsidiary of 

FCMB Group plc, 

has demonstrated its advisory 

and capital raising capability 

by acting as financial adviser 

and Lead Issuing House on 

the successful fundraising 

and listing of LAPO Microfinance 

Bank Limited’s N3.15 

billion bond on the FMDQ 

OTC platform. 

The bond, the first ever by 

a microfinance bank in Nigeria’s 

debt capital market, was 

priced at 17.75 percent and 

has a tenor of 5 years. The issue 

was rated A- by Agusto & 

Co and BBB+ by GCR, which 

are investment grade ratings. 

LAPO is a leading MFB 

in Nigeria that commenced 

operations in 2010. Its 

banking activities are targeted 

at micro, small and 

medium enterprises, particularly 

women and micro 

enterprise owners who it 

provides loans to build their 

businesses. 

As a financial adviser, 

FCMB Capital Markets was 

responsible for, among others, 

developing a robust 

transaction structure that 

ensures flexibility for the issuer 

and comfort for the investors, 

and assisting to obtain 

regulatory approvals. 

FCMB Capital Markets is 

one of the few financial institutions 

in the country to 

have consistently demonstrated 

the ability to structure 

transactions of this 

nature, having successfully 

executed similar complex 

deals previously. 

According to LAPO, the 

proceeds will be used to deepen 

its business in the country, 

strengthen its capital base, expand 

its branchless banking 

solutions and enter new market 

segments, including the 

launch of its agency banking 

model and the deployment of 

e-business solutions, among 

others. 

Speaking during the bond 

listing ceremony on Tuesday, 

in Lagos, the executive director 

of FCMB Capital Markets 

Limited, Tolu Osinibi, said, 

“We are excited and grateful 

at having been given 

the opportunity by LAPO 

Microfinance Bank to have 

played a leading role on this 

landmark transaction, where 

FCMB Capital Markets acted 

as financial adviser and the 

Lead Issuing House on the 

first ever bond issuance by a 

microfinance Institution in 

Nigeria’s capital markets. 

“The success of this transaction 

speaks to the institutional 

strength of LAPO and 

an affirmation of this strength 

by institutional investors that 

have trusted LAPO with the 

funds they manage.”


BUSINESS DAY 

A3

A4 

NEWS 

Afriland Properties reports 233% surge in 

PAT, shareholders approve N137.39m dividend 


BUSINESS DAY 

C002D5556 

Afriland Properties 

Plc. has 

announced a 

profit after tax of 

N1.02 billion for 

the year ended, December 

31, 2017, representing 233 

percent increase compared 

to N307 million in the corresponding 

period of 2016. 

Total assets in the year under 

review stood at N19.8 billion 

which represents 17.9 percent 

increase over N16.8 billion 

recorded in 2016. 

This was stated by the 

Board of Directors during 

the company’s 5th Annual 

General Meeting, which took 

place at the Banquet Hall of 

Lagoon Restaurant on Tuesday, 

March 27, 2018. The 

shareholders also approved 

the Board’s proposal to pay 

a sum of N137.39 million as 

dividend, translating to 10 

kobo per ordinary share. 

For the financial year 

ended 2017, Afriland properties 

plc, also recorded 11 

percent growth in revenue 

from N1.1 billion in 2016 

to N1.3 billion, while profit 

before tax increased by 96 

percent to N1.06 billion from 

N0.540billion in 2016 finan- 

cial year. 

In her address, the Managing 

Director/Chief Executive 

Officer, Afriland Properties 

Plc, Uzo Oshogwe, stated 

that “though the year under 

review was a period of unprecedented 

challenges and 

profound economic instability, 

our company was steadfast 

in our delivery and dedication 

to our clients while 

earning a good return for our 

shareholders. Our teamwork 

and intense focus reflects 

in the strong performance 

across our businesses. 

“Our purpose to improve 

lives by investing in the development, 

management 

and maintenance of worldclass 

Real Estate offerings 

across Africa, remains a driving 

force and we would continue 

to build our capabilities 

and investments in our people, 

systems and products. 

“Though the operating 

environment may not 

change significantly, we are 

confident that our strategies 

will yield even better results 

in the coming years. We are 

closely monitoring various 

policy measures being taken 

by the Government to further 

sustain the gains made 

in 2017.” 

Take cue from Secondus, beg Edo people for 

forgiveness, Ojezua advises Edo PDP, others 

Less than 24 hours after 

the national chairman 

of the People’s 

Democratic Party 

(PDP), Uche Secondus, apologised 

to Nigerians for what 

he described as “the past 

mistakes of the PDP,” chairman 

of the Edo State chapter 

of the All Progressives Congress 

(APC), Anselm Ojezua, 

has called on the Edo PDP 

members to emulate their 

national chairman and apologise 

to the people. 

Ojezua said: “Edo people 

deserve an unreserved apology 

from the Edo State chairman 

of the PDP, Chief Dan 

Orbih as well as other leaders 

of the party in the state, 

for their years of misrule. We 

need not debate the sins of 

the PDP over and again, now 

that the national chairman of 

the opposition party has courageously 

admitted to impunity 

and misrule.” 

He explained that the 

“Edo APC has in the past 

urged the Edo PDP to apologise 

for their sins which are 

still visible in all parts of the 

state, several years after they 

were voted out of office.” 

He maintained that “it 

is foolhardy and imprudent 

to continue to grandstand 

ODINAKA ANUDU 

Nigeria decided not 

to join an Africa 

free trade zone last 

week because it 

needs to carry out more consultations 

at home first, the 

government said on Tuesday. 

Other leaders agreed to 

form a zone encompassing 

1.2 billion people, but 11 

countries including the continent’s 

biggest economy, Nigeria, 

and its most-developed, 

South Africa, did not sign up. 

The omissions were a 

blow to African Union plans 

to cut back red tape and other 

barriers that have strangled 

trade between African states 

- which amounts for just 15 

percent of total commerce on 

the continent. 

“Minister of Foreign Affairs: 

The decision for President 

@MBuhari to not attend 

the #AfCFTA signing ceremony 

was taken because we 

realized more inclusive (domestic) 

consultations needed 

to take place before Nigeria 

signs,” read a message on the 

presidency’s Twitter feed. 

It did not go into any details 

on the nature of the consultations. 

South Africa did immediwhen 

your sins stare at you 

daily, from the failed dredging 

of Ikpoba River, the failed 

Edo Water Board resuscitation 

project, failed Cassavita 

Factory, failed Fruit Juice 

processing factory in Ehor, 

failed Bendel Breweries and 

Edo Line, for which billions 

of naira were either borrowed 

or allegedly spent, yet 

Edo people never had the 

benefit of seeing their actualisation, 

and enjoying the 

outcomes.” 

He argued, “If the Edo 

PDP government meant well 

for Edo people and completed 

these projects, the 

socio-economic profile of 

the state would have appreciated 

a great deal. Former 

Governor Adams Oshiomhole 

picked up a completely 

broken down state and rescued 

it from total collapse 

by aggressively fixing the 

huge infrastructural deficit 

he inherited, constructing 

schools, roads, hospitals and 

enthroning purposeful leadership. 

“Today, Governor Godwin 

Obaseki is paying the 

desired attention to industrialisation, 

infrastructure, law 

and order and job creation, 

amongst other sectors.” 

Nigeria to consult before deciding 

on African trade zone 


ately comment on its reasons 

last week. Others staying on 

the sidelines were: Botswana, 

Lesotho, Namibia, Zambia, 

Burundi, Eritrea, Benin, Sierra 

Leone and Guinea Bissau. 

Nigeria’s President Muhammadu 

Buhari was earlier 

scheduled to travel to Kigali to 

ratify the trade deal but backtracked 

on the opposition of 

the Organised Private Sector 

(OPS) who said they were not 

consulted. 

Negotiations on the free 

trade agreement started in 

2012 with an ambitious longterm 

goal of deepening trade 

among African Union countries, 

creating bigger and integrated 

regional markets for 

African products and achieving 

economies of scale among 

African manufacturers. 

The agreement removed 

tariffs on 90 percent of goods 

and liberalised trade in services 

to allow African consumers 

to have access to 

cheaper products from other 

African countries. 

Apart from allowing domestic 

firms to access bigger 

markers, the trade deal aims 

to remove tariffs and quotas 

to lower import and consumer 

prices and increase intra- 

African trade.


NEWS 

LUC: Stakeholders want return to status quo 

… House gives 2 weeks for memoranda submission, as NBA stages walk out 

JOSHUA BASSEY 

A 

wide spectrum of 

stakeholders are 

pushing for the 

suspension of the 

controversial Lagos 

Land Use Charge (LUC) 

2018 Law, and the return to 

status quo, arguing that the 

processes leading to enactment 

of the law lacked fairness 

and failed to take into 

cognizance inputs from the 

people the law will affect. 

Various speakers at a 

public hearing organised, 

Tuesday, by the Lagos State 

House of Assembly on the 

amendment of some sections 

of the law, queried the 

rationale basing the charges 

on market value and not 

rental value. 

But Akinyemi Ashade, the 

state commissioner for finance, 

said the market value 

option was for standardisation 

of the charges across different 

parts of the state, and 

to achieve transparency. 

This comes as the Organised 

Private Sector (OPS) 

comprising Manufacturers 

Association of Nigeria 

(MAN), Nigeria Employers 

Consultative Association 

(NECA), Nigerian Association 

of Chambers of Commerce, 

Industry, Mines and 

Agriculture (NACCIMA), Lagos 

Chamber of Commerce 

and Industry (LCCI), National 

Association of Small 

and Medium Scale Enterprises 

(NASME) and National 

Association of Small Scale 

Industries (NASSI) in their 

submission, proposed that 

the 40 percent permanent 

discount offered in the law 

be raised to 50 percent. 

The OPS also want the 

rate for commercial property 

slashed from 0.761 

percent to 0.4560 percent; 

rate for industrial/manufacturing 

concerns reduced 

from 0.255 percent to 0.230 

percent, and assessed value 

be determined from time to 

time by appropriate professional 

institution (within a 

period of 3-5 years) and outcome 

of and basis of assessment 

be also published from 

time to time. 

The OPS further sought 

that verified vacant lands 

and unoccupied properties 

be exempted from LUC 

and that appeal process in 

tribunal be swift and not 

subjected to bureaucratic 

processes. 

However, the Nigerian 

Bar Association (NBA), 

Ikeja branch, walked out 

of the public hearing. Also, 

a civil society group - Joint 

Action Forum (JAF) and its 

members, led by Abiodun 

Aremu, also left the sit- 

ting, and vowed to return 

to the streets on Thursday, 

March 29, in continuation 

of protests against what they 

termed “anti-people law.” 

Ogunlana Adesina, chairman, 

NBA, Ikeja branch, 

before the commencement 

of deliberations, demanded 

the postponement of the 

public hearing, citing what it 

called a 24-hour notice, sent 

to the association, which he 

claimed was too short. 

Adesina argued that the 

law, to which they had been 

invited to make inputs, had 

not been made available to 

the people, despite the NBA 

writing to this effect, to the 

office of the speaker of the 

House, Mudaishiru Obasa. 

He sought the House to 

postpone the hearing to early 

weeks of April, after the Easter 

holiday, and first make 

the law sufficiently available, 

saying, “We can’t make any 

meaningful inputs into a law 

that has not been made available 

to us. What is worth doing 

at all is worth doing well.” 

Obasa, speaker of the 

House, however, persuaded 

the NBA to allow the sitting 

proceed, arguing that the issues 

in contention in the law 

were well known. But his arguments 

failed to pacify the 

civil society group and the 

NBA, as they staged a walk 

out from the hearing. 

C002D5556 

BUSINESS DAY 

A5


A6 BUSINESS DAY 

C002D5556 

RESEARCH & 

INSIGHT 

A WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU) research@businessdayonline.com 08106395676 

Low credit, budgetary allocations to 

agric sector hamper sectoral output 

...As experts call for agric lending de-risking 

BALIKEES ROTINWA 

Deposit money banks, 

microfinance banks 

and other players in 

the financial industry 

have different ways of 

influencing economic growth. This 

is because one of the fundamental 

roles of financial intermediaries such 

as the aforementioned institutions 

is to determine the amount of credit 

to the economy and distribute such 

resources to economic agents that can 

best utilise them. 

As the main source of credit to the 

private sector, the banking sector has 

the mechanism to mobilise financial 

resources for productive investment 

needed for the realisation of the desirable 

economic growth path, and this 

implies that an efficient banking system 

makes extensive contribution to 

a nation’s economic growth through 

credit to the private sector. 

According to the National Bureau 

of Statistics (NBS), the total banks’ 

credit to private sector trended downward 

by 2.34 per cent to N15.74 trillion 

in the fourth quarter of 2017 from 

N16.12 trillion in fourth quarter of 

2016, which could be attributed to the 

economic recession witnessed in the 

country in 2016. 

Meanwhile, the amount of credit 

that is allocated to different sectors 

shows the extent of opportunities and 

risks in those sectors as evaluated by 

players in the financial sectors. In addition, 

the sectoral credit distribution 

is also an indication of the structure 

financial sector’s players have on 

ground to reclaim their loans and 

advances. 

Industry and the services sectors, 

for instance, accounted for the highest 

proportion of credit when expressed 

as a percentage of banks’ credit to 

the private sector. In the last quarter 

of 2017, both sectors accounted for 

96.64 per cent in Q4, 2017 compared 

with 96.74 per cent of the private sector 

credit in the last quarter of 2016. 

The agricultural sector was allocated 

3.26 per cent and 3.36 per cent 

of the credit to the private sector in 

the fourth quarters of 2016 and 2017 

respectively. On a quarterly average, 

the credit allocated to agriculture was 

3.27 per cent and 3.29 per cent of the 

total credits to private sector in 2016 

and 2017 respectively. 

While industry got 37.27 per cent 

of the total credits in 2016, it increased 

to 39.40 per cent in 2017. In 2016, 

the services sector received 59.46 per 

cent of credit allocated by the banking 

sector to the private sector and that 

shrank to 57.32 per cent in 2017. 

The essence of the write-up is to 

establish a nexus between credit to 

the private sector, which is the engine 

of growth of any economy and the 

growth of the economy, measured by 

the gross domestic product (GDP). 

The GDP grew at 6.99 per cent from 

N29.17 trillion in the last quarter of 

2016 to N31.21 trillion in similar period 

in 2017. 

An analysis of the contributions 

of these sectors to the GDP showed 

that, although, the agricultural sector 

received the lowest credit allocations 

from banks, the sector contributed 

more to the GDP than the industrial 

sector. In Q4, 2016, the contribution 

of the primary sector (Agriculture) to 

GDP was about 25.60 per cent, which 

increased to 26.18 per cent in the last 

quarter of 2017. 

On the contrary, the contributions 

of the industrial sector, comprising 

mining &quarrying, manufacturing, 

oil & gas, power and energy, to the 

GDP rose from 19.98 in the fourth 

quarter of 2016 to 20.38 per cent in the 

same period in 2017. The contribution 

of services to GDP was the highest, as 

the sector contributed 53.45 per cent 

in Q4, 2017. Notwithstanding, the 

contribution was higher at 54.42 per 

cent in Q4, 2016. 

An analysis done by BusinessDay 

Research and Intelligence Unit (BRIU) 

reveals that the contribution of the 

industry sector to GDP is low relatively 

to others and this may be due to a 

number of factors. 

Prominent among these constraints 

is the lack of infrastructural 

facilities, which hinder industrial 

productivity in the country. Also, since 

the country depends heavily on 

foreign technologies and technical 

know-how, this leads to the neglect 

of the domestic factor endowments. 

Apart from that, the volatility of foreign 

exchange, unavailability of raw materials 

and intermediate inputs are other 

factors causing the unimpressive 

performance of the industrial sector. 

Taiwo Ojapinwa, a senior lecturer 

in the Department of Economics at the 

University of Lagos opined that even 

though agriculture is contributing 

more to the economy than industry, 

productivity per labour in the agric 

sector compared with productivity 

per labour in industry is not significant 

considering the fact that almost 70 per 

cent of the labour force in Nigeria is 

involved in agribusiness. 

He further said that the sector 

is receiving little attention from the 

banking sector in respect of credit facilities 

because most agricultural firms 

cannot provide collaterals to back 

up their loans while their payback is 

usually long. 

The agric sector is not only deprived 

of adequate credit from banks, 

but also reasonable budgetary allocations 

from the government. Out of the 

total budgetary allocation of N7.441 

trillion and N8.612 trillion in 2017 

and 2018, the sector received about 

1.39 per cent and 1.38 per cent in the 

respective years. A sector with a key 

multiplier impact shouldn’t have been 

neglected in this manner. 

The huge disproportionate credit 

to agriculture than industry and services 

is because revenue generated 

from agriculture is relatively lower and 

it is generally known that banks lend 

against cash revenue. There are more 

risks involved in giving credits to agricultural 

sector as there is no guarantee 

of the market prices of their products 

and the sector is highly fragmented. 

The ratio of private sector credit to 

GDP, which has become an increasingly 

popular benchmark of the sustainable 

levels of credit, shows that in 

Q4, 2017, the banking sector credit to 

private sector reached 50.44 per cent 

of the country’s nominal GDP, against 

55.25 per cent in Q4, 2016. 

Ayo Akinwunmi, head, research 

department at FSDH Merchant Bank, 

posited that loans to the agricultural 

sector are highly risky and that is one 

of the major reasons they are being 

allocated the lowest portion of credit 

and the government must focus on 

de-risking the sector in order to boost 

access to adequate credit. The sector 

basically requires restructuring to be 

able to contribute to the economy. 

The private sector is essentially 

important in driving growth, creating 

jobs, generating wealth and increasing 

government revenue through 

taxation. The provision of private 

sector credit to key economic sectors 

of the economy holds great potential 

to promoting sectoral economic 

growth. Therefore, policies that ensure 

the deepening of the financial 

sector whilst reducing the cost of 

credit should be enacted. Strategies 

with the capability of enhancing the 

productivity and consequently growth 

of key sectors of economy should be 

put in place.


A7 

C002D5556 BUSINESS DAY 

Tax Issues 

Multinationals to get little 

opportunities for tax avoidance 

…as multilateral BEPS convention enters into force on July 1 

IHEANYI NWACHUKWU 

The multilateral 

convention to implement 

tax treaty 

related measures 

aimed at preventing 

Base Erosion and Profit 

Shifting (BEPS) will enter into 

force on July 1, 2018. This development 

marks a significant 

step in international efforts to 

update the existing network of 

bilateral tax treaties and reduce 

opportunities for tax avoidance 

by multinational enterprises. 

Base erosion and profit 

shifting refers to tax planning 

strategies used by multinational 

companies that exploit gaps 

and mismatches in tax rules to 

artificially shift profits to low or 

no-tax locations where there is 

little or no economic activity. 

Revenue losses from BEPS 

are conservatively estimated 

at $100billion to $240 billion 

annually, or the equivalent of 

4percent to 10percent of global 

corporate income tax revenues. 

Over 110 countries and jurisdictions 

are currently working 

in the inclusive framework 

on BEPS to implement BEPS 

measures in their domestic legislation 

and bilateral tax treaties. 

The entry into force of the 

Convention, just one year after 

the first signature, underlines 

the strong political commitment 

to a multilateral approach 

to fighting base erosion and 

profit shifting (BEPS) by multinational 

enterprises. 

The entry into force of the 

Convention on 1 July 2018 will 

bring it into legal existence in 

these five jurisdictions. In accordance 

with the rules of the 

Convention, its contents will 

start to have effect for existing 

tax treaties as from 2019. 

The Convention, negotiated 

by more than 100 countries and 

jurisdictions under a mandate 

from G20 Finance Ministers 

and Central Bank Governors, 

will modify existing bilateral tax 

treaties to swiftly implement the 

tax treaty measures developed 

in the course of the OECD/G20 

BEPS Project. 

The entry into force follows 

from the deposit of the fifth 

instrument of ratification by 

Slovenia on March 22, 2018. 

Earlier, the Republic of Austria 

(September 22, 2017), the Isle 

of Man (October 19, 2017), Jersey 

(December 15, 2017), and 

Poland (January 23, 2018) deposited 

their instruments with 

the Organisation for Economic 

Co-operation and Development 

(OECD). 

“The entry into force of 

this Multilateral Convention 

marks a turning point in the 

implementation of OECD/G20 

efforts to adapt international 

tax rules to the 21st Century,” 

said OECD Secretary-General 

Angel Gurría. 

“We are translating commitments 

into concrete legal 

provisions in more than 1,200 

tax treaties worldwide. Thanks 

to this drive by the international 

community, we are ensuring 

that multinational companies 

pay their fair share when it 

comes to fulfilling tax obligations, 

like citizens do,” Gurría 

said. 

The Convention is the first 

multilateral treaty of its kind, 

allowing jurisdictions to transpose 

results from the OECD/ 

G20 BEPS Project into their 

existing bilateral tax treaties, 

transforming the way tax treaties 

are modified. The Convention 

has been designed to 

strengthen existing tax treaties 

concluded among its parties 

without the need for burdensome 

and time-consuming 

bilateral renegotiations. 

The OECD/G20 BEPS Project 

delivers solutions for governments 

to close the gaps in 

existing international rules that 

allow corporate profits to (disappear) 

or be artificially shifted 

to low or no tax environments, 

where companies have little or 

no economic activity. 

Treaty measures that are 

included in the Convention 

include those on hybrid mismatch 

arrangements, treaty 

abuse and permanent establishment. 

The Convention also 

strengthens provisions to resolve 

treaty disputes, including 

through mandatory binding 

arbitration, which has been 

taken up by 28 signatories. 

The OECD is the depositary 

of the Convention and is supporting 

governments in the 

process of signature, ratification 

and implementation. The positions 

that each signatory and 

party under the Convention 

has adopted are available on the 

OECD website, together with 

an interactive database that 

provides insight into the likely 

impact on covered tax treaties. 

Prescriptions for an effective 

tax regime in Nigeria 

Since the approval of the 

revised National Tax Policy 

(NTP), a new air of expectations 

of a simplified tax compliance 

regime has been awaited 

with baited breath. Such expectations 

has not happened by accident 

but is rather a culmination 

of fervent yearnings for a systemic 

shift to a saner tax regime at all 

tiers of government if only to 

blunt the backward slide in Nigeria’s 

ease of doing business as well 

as ease of paying taxes. 

The urgency to birth such a 

tax system also finds its voice in 

incidences of multiple taxation 

as well as the impact of disruptive 

technologies and advanced 

innovations which has redefined 

how commerce and other related 

activities are undertaken for taxation 

purposes. 

The exigency of the current 

situation and the need to address 

same provides fodder for identifying 

the issues that continue to 

plague the tax system and the 

likelihood of recommendations 

that could mitigate or outrightly 

tackle the identified issues. 

Some challenges 

A lack of robust framework 

for the taxation of informal sector 

and high networth individuals 

continue to limit the revenue 

base creation. This is inspite of 

the fact that the informal sector 

is quite large and its activities 

are largely uncaptured for tax 

purposes. 

Secondly, the inordinate 

drive by all tiers of Government 

to grow internally generated 

revenue has led to the arbitrary 

exercise of regulatory powers 

for revenue under various guise. 

This drive, in itself, leads to increased 

cost of tax compliance 

and administration without 

necessarily bringing about com- 

mensurate increase in revenue. 

This also provides fodder for 

stakeholders that are under the 

yoke of multiple taxation. 

Another protacted issue is 

that of database fragmentation 

of taxpayers and weak structure 

for exchange of information by 

the Tax Authorities, resulting in 

revenue leakages and inefficiencies. 

The taxpayer is therefore 

able to skirt around the system 

with little or no risk of detection. 

A lack of clarity on taxing 

powers of each level of Government 

and encroachment on the 

powers of one level of Government 

by the another is also a subsisting 

challenge. This is despite 

the best of efforts by government 

through the enactment of the 

taxes and levies (Approved list 

for Collections), Laws of Federation 

of Nigeria, Cap. T2, 2004, as 

amended. 

Another challenge is the case 

of insufficient information to 

taxpayers on tax compliance 

requirements thus creating uncertainty 

and increasing noncompliance 

for policy action for 

the tax system. 

Conditions of insufficiency in, 

capacity with respect to personnel 

and training has led to delegation 

of powers of revenue officials 

to third parties by some tiers of 

government, thereby creating 

complications for the tax system; 

Other issues include: Use 

of Aggressive and Unorthodox 

Methods of tax collection; Failure 

by Government to appropriate 

funds to honour tax refund 

obligations to taxpayers; The 

non-regular review of Tax Laws 

to reflect economic realities; 

Lack of strict adherence to tax 

policy direction and procedural 

guidelines for the operation of 

various tax authorities. 

Self-employed taxpayers have 24 hours to file PIT returns for 2017 

STEPHEN ONYEKWELU 

Self-employed taxpayers 

have 48 hours 

to file their Personal 

Income Tax (PIT) 

returns for 2017 tax year as 

provided in Section 41(1) 

of the Personal Income Tax 

(PIT) Act. 

The deadline for filing 

PIT returns for the 2017 tax 

year is 31 March 2018. By 

virtue of Section 41 of PITA, 

a taxpayer is required to 

file, along with the return, a 

true and correct statement 

of the amount of income 

from every source (that 

is, earned and unearned 

income) computed in accordance 

with the provisions 

of the PIT Act and the 

associated regulations. The 

form of return shall contain 

a declaration which shall be 

made by or on behalf of the 

taxpayer that the particulars 

given in the return are true 

and complete. 

Although the provision 

of Section 41 is directed at 

all taxable persons under 

the PIT Act, many self-employed 

persons have failed 

to comply with the requirements 

of this section. 

“Furthermore, it has become 

acceptable for employers 

to fulfil this obligation 

on behalf of their 

employees, in practice. 

Nonetheless, it is important 

to note that there is no 

legal basis for the assumption 

that the requirements 

of Section 41 apply directly 

to employers alone and 

not employees” Tax Alert, 

a regular publication by 

Andersen Tax, a tax firm 

headquartered in San Francisco, 

California, United 

States stated. 

Besides, the only category 

of employees exempted 

from filing the annual returns, 

based on the PIT Act, 

are those whose only source 

of income is employment 

from which they earn N30, 

000 or less in any particular 

tax year. 

“March 31 deadline is 

for self-employed people. 

For employees of corporates 

organisations, theirs 

was due January 31. Now, 

self-employed taxpayers 

will be required to file their 

PIT returns latest March 29, 

because, March 30 is Good 

Friday” Chukwuemeka Eze, 

lecturer at Faculty of Law, 

Nassarawa State University, 

Lafia told BusinessDay on 

telephone interview. 

“Defaulters will be liable 

to a penalty of 10 percent of 

the amount due after the 

deadline and 21 percent 

interest rate. Beyond this, 

defaulters are liable to prosecution. 

However, because 

Nigeria is still fighting to 

improve the tax culture, 

prosecutions are less likely” 

Eze added. 

It is also important to 

note that the requirement 

for employers to file returns 

of emoluments paid to their 

employees under Section 

81 is different from the requirements 

under Section 

41. Hence, taxpayers who 

have not complied with the 

provisions of Section 41 

by themselves or through 

their employers should do 

so before the expiration of 

the deadline. 

Although the PIT Act 

does not provide specific 

penalties for failure to file 

returns in accordance with 

Section 41 of the PIT Act, the 

provisions of Section 94(1) 

of the Act may apply given 

its omnibus nature. 

Moreover, Section 94(4) 

of the PIT Act empowers a 

relevant tax authority (RTA) 

to institute proceedings 

or impose penalties of an 

amount equal to the income 

tax chargeable on persons 

who fail to comply with the 

requirements of a notice 

given by the RTA under the 

provisions of Section 41 of 

the PIT Act. 

Given the government’s 

recent drive for increased 

revenue collection, it may 

not be surprising to see tax 

authorities enforce possible 

penalties on erring employees, 

particularly those 

who have other sources of 

income apart from their 

employment income. More 

so, the coincidence of the 

deadline for the Voluntary 

Assets and Income Declaration 

Scheme (VAIDS) and 

the filing of annual return 

of income and claims may 

just be unusually symbolic.


A8 BUSINESS DAY


BUSINESS DAY 

A9


A8 BUSINESS DAY


BUSINESS DAY 

A9




BUSINESS DAY 

A9



Live @ The Stock Exchange 

Top Gainers/Losers as at Tuesday 27 March 2018 2018 Market Statistics as at Tuesday 27 March 2018 

GAINERS 

Company Opening Closing Change 

NESTLE N1320 N1339 19 

GLAXOSMITH N28.05 N30.9 2.85 

FO N40 N41.9 1.9 

MRS N27 N28.35 1.35 

CCNN N18.75 N19.65 0.9 

LOSERS 

Company Opening Closing Change 

SEPLAT N700.1 N665.1 -35 

MOBIL N184.5 N177 -7.5 

TOTAL N243.7 N240 -3.7 

INTBREW N57 N54.15 -2.85 

GUINNESS N105 N103 -2 

ASI (Points) 41,243.24 

DEALS (Numbers) 4,807.00 

VOLUME (Numbers) 352,889,897.00 

VALUE (N billion) 4.142 

MARKET CAP (N Trn 14.899 

FMDQ admits N3.15bn LAPO MFB SPV bond 

… validates OTC Exchange’s drive to support goals of corporates, deepen debt capital market 

Stories by 

Iheanyi Nwachukwu 

Corporate institutions 

have 

continued to 

successfully 

tap the Nigerian 

debt capital markets 

(DCM) to access stable 

long-term finance to fund 

key activities that ultimately 

translate to the development 

of the economy at 

large. 

Coming shortly on the 

heels of the recent listing of 

the Viathan Funding PLC 

Power Bond, FMDQ OTC 

Securities Exchange (FMDQ 

or the OTC Exchange) admitted 

on its platform, the 

first ever microfinance bank 

bond in Nigeria – the LAPO 

MFB SPV PLC Series 1 

N3.15bn 17.75percent. This 

is a 5-year Fixed Rate Senior 

Unsecured Bond (the LAPO 

MFB SPV Bond) under a 

N20.00bn Bond Issuance 

Programme. 

To commemorate the 

listing of the bond, a ceremony 

was held at the 

FMDQ offices on Tuesday, 

March 27, 2018, where the 

L-R: Uaboi Agbebaku, Esq, company secretary/legal adviser, Nigerian Breweries Plc; Kufre 

Ekanem, corporate affairs adviser, Nigerian Breweries Plc; Tinuade Awe, executive director, 

regulation, The Nigerian Stock Exchange (NSE); Jordi Borrut Bel, managing director/CEO, 

Nigerian Breweries Plc; Grace Omo-Lamai, human resource director, Nigerian Breweries 

Plc; Franco Maria Maggi, marketing director, Nigerian Breweries Plc and Tony Ibeziako, Ag. 

head, Listing Business Division, NSE during a Closing Gong Ceremony at The Exchange 

yesterday. 

OTC Exchange played host 

to the issuer, represented 

by Godwin Ehigiamusoe, 

Managing Director, LAPO 

Microfinance Bank Limited 

(LAPO Microfinance), 

alongside other senior executives 

from LAPO Microfinance; 

the co-sponsors to 

the issue on FMDQ, United 

Capital Plc, represented by 

Jude Chiemeka, Managing 

Director, United Capital Securities 

Limited and Tolu 

Osinibi, Executive Director, 

FCMB Capital Securities 

Limited and other parties to 

the issue. 

Welcoming the guests 

to the Ceremony, Jumoke 

Olaniyan, Associate Vice 

President, Market Architecture 

Division, FMDQ, 

applauded the issuer for 

having successfully raised 

N3.15billion from the domestic 

capital markets, and 

for indubitably setting the 

pace for other microfinance 

banks planning to raise capital 

in the Nigerian DCM. 

She further commended the 

issuer for joining the league 

of corporate entities whose 

debt profiles have been 

raised via the value-packed 

listings and quotations 

service offered by FMDQ. 

She reiterated the OTC Exchange’s 

commitment to 

continually align its strategies 

and innovation to serve 

and provide the muchneeded 

support to the players 

in the DCM. 

Speaking during his 

special address, Ehigiamusoe, 

highlighted that, the 

demand for capital from 

micro, small and medium 

businesses is high, and as a 

pro-poor financial institution, 

LAPO Microfinance is 

committed to the social and 

economic empowerment 

of low-income households 

through provision of access 

to responsive financial services 

on a sustainable basis. 

With excellent corporate 

governance, experienced 

management, committed 

staff and extensive footprints 

across Nigeria, LAPO 

Microfinance is poised to 

deliver its core mandate of 

enhancing financial inclusion 

by continuously tapping 

the Nigerian DCM 

to raise capital to improve 

lives of the underprivileged. 

Delivering the Registration 

Member (Listings) 

remarks, Chiemeka, highlighted, 

“we are delighted 

to have acted as financial 

adviser and issuing house 

in the successful execution 

of the LAPO MFB SPV 

Series 1 bond issue, which 

is the first of its kind in the 

microfinance industry. 

Coming from a successful 

2017, United Capital remains 

committed to making 

significant contributions 

to the OTC Exchange 

and to the success of our esteemed 

clients through our 

expertise in capital raising. 

We believe listing this instrument 

on the exchange 

will pave the way for other 

microfinance banks and 

allow them explore other 

funding sources available 

thereby establishing a robust 

domestic capital markets.” 

Shareholders of Africa Prudential ratify 40Kobo dividend per share 

...Approve appointment of Nnorom as director 

Shareholders of Africa 

Prudential Plc on 

Tuesday, March 27, 

2018 unanimously 

approved a dividend payment 

of forty (40) kobo per 

ordinary share at the Company’s 

5th Annual General 

Meeting (AGM) held in Lagos 

on Tuesday, March 27, 


Accordingly, all shareholders 

whose names appear 

in the Company’s 

Register of Members at the 

close of business on Friday, 

March 12, 2018 qualify for 

the dividend which is payable 

same day of the AGM. 

The company’s audited 

results for 2017 shows a total 

of N800 million will be 

paid to shareholders of the 

Company, while the Register 

of Members and Transfer 

Books was closed from 

Tuesday, March 13 to Monday, 

March 19, 2018 (both 

dates inclusive) for the purpose 

of updating Register of 

Members eligible to receive 

the dividend payment. 

At the meeting shareholders 

also unanimously 

approved the appointment 

of Emmanuel Nnorom as 

a Director of the company. 

During the year under review, 

the Board had appointed 

Nnorom as a Non- 

Executive Director. 

Eniola Fadayomi, chairman 

of the Board, Africa 

Prudential Plc who spoke 

on the appointment noted 

that Nnorom has a rich 

pedigree of experience in 

the corporate world, having 

previously served as Chief 

Operating Officer (COO) of 

UBA Plc, President Managing 

Director of Transcorp 

Plc and currently the Group 

Managing Director of the 

Heirs Holdings Ltd. Indeed, 

the appointment of Mr. Nnorom 

is like a home coming 

because, he has previously 

served as a Director and was 

also the pioneer Chairman 

of the company. 

The National Coordinator 

Emeritus, Independent 

Shareholders Association 

of Nigeria (ISAN), Sunny 

Nwosu, commended the 

company for declaring a 

dividend of 40 Kobo inspite 

of the various projects the 

company undertook in the 

year under review. He also 

lauded the company for 

working extra hard to ensure 

it remained the leading 

Registrar company in the 

country. 

“I really want to appreciate 

the management of this 

company for its doggedness 

and hard work in its activities 

in the past year, which 

has translated to the payment 

of 40 Kobo dividend, 

a significant increase from 

the 30 Kobo which we received 

last year. I especially 

want to congratulate Nnorom 

on his appointment as 

a Director. We are aware of 

his pedigree over the years 

and we know that he will 

bring in his wealth of experience 

to the fore in his 

role as a Director, and contribute 

meaningfully to the 

continuous growth of this 

company.” 

Nwosu said the shareholders 

appreciated the 

dividend considering the 

unfriendly operating environment 

and impairment 

charge for credit losses. 

Bisi Bakare, the President 

of the Pragmatic Shareholders 

Association of Nigeria, 

who also spoke at the 

meeting was full of praises 

for the management of the 

company. According to her, 

shareholders are proud of 

the achievements of the 

company especially with the 

introduction of key products 

into its bouquets such as 

Easycoop, E-records, USSD 

*4018# and VAR. She urged 

the company to do more to 

make the shareholders continue 

to smile in the coming 

financial dispensation. 

Commenting on the financial 

results for the year 

under review, the Managing 

Director/CEO of Africa Prudential 

Plc, Peter Ashade 

said that “Despite the challenging 

operating environment 

in 2017, the company 

ended the year with an impressive 

performance. 

The company recorded 

a turnover of N3.36 billion 

- a growth of 38percent over 

the previous fiscal financial 

year - and a Profit Before Tax 

of N2.06 billion which represent 

an increase of 43percent 

over the previous year”.


BUSINESS DAY 

A11


A12 BUSINESS DAY


FT FINANCIAL TIMES 

C002D5556 

BUSINESS DAY 

A13 

World Business Newspaper 

How China can avoid a 

trade war with the US 

Beijing must recognise the shift in American perceptions and make some concessions 

MARTIN WOLF 

Deutsche Bank starts 

process to find John 

Cryan’s successor 

How should China respond 

to Donald 

Trump’s aggressive 

trade policy? The answer 

is: strategically. It 

needs to manage a rising tide of US 

hostility. 

Of the events in Washington last 

week, the appointment of John Bolton 

as the US president’s principal adviser 

on national security may well be more 

momentous than the announcement 

of a “section 301” trade action against 

China. Nevertheless, the plan to impose 

25 per cent tariffs on $60bn of 

(as yet, unspecified) Chinese exports 

to the US shows the aggression of Mr 

Trump’s trade agenda. The proposed 

tariffs are just one of several actions 

aimed at China’s technology-related 

policies. These include a case against 

China at the World Trade Organization 

and a plan to impose new restrictions 

on its investments in US technology 

companies. 

The objectives of these US actions 

are unclear. Is it merely to halt alleged 

misbehaviour, such as forced transfers 

— or outright theft — of intellectual 

property? Or, as the labelling of China 

as a “strategic competitor” suggests, 

is it to halt China’s technological 

progress altogether — an aim that 

is unachievable and certainly nonnegotiable. 

Mr Trump also emphasised the need 

for China to slash its US bilateral trade 

surplus by $100bn. Indeed, his rhetoric 

implies that trade should balance with 

each partner. This aim is, once again, 

neither achievable nor negotiable. 

The optimistic view is that these are 

opening moves in a negotiation that 

will end in a deal. A more pessimistic 

perspective is that this is a stage in an 

endless process of fraught negotiations 

Robotics, semiconductors, aviation and computing among sectors on Washington’s hit list 

The Trump administration’s 

ambiguous plans to impose 

tariffs on up to $60bn in annual 

imports from China have left 

companies in the country guessing 

whether their products will end up 

on Washington’s list. 

But behind the tariffs is what 

analysts consider to be a broader 

objective from the White House to 

disrupt a high-level Chinese strategy, 

called “Made in China 2025”, 

that aims to make a number of 

companies world leaders in sectors 

such as robotics, semiconductors, 

aviation and computing. 

A crucial element of Beijing’s 

development plan has been to 

partner with foreign companies or 

acquire overseas technologies that 

between the two superpowers far into 

the future. A still more pessimistic view 

is that trade discussions will break 

down in a cycle of retaliation, perhaps 

as part of broader hostilities. 

Which it turns out to be also depends 

on China. It must recognise 

the shift in US perceptions, of which 

Mr Trump’s election is a symptom. 

Moreover, on trade, the Democrats 

are far more protectionist than the 

Republicans. 

What are the forces driving this 

shift? China’s rise has made the US fear 

the loss of its primacy. China’s communist 

autocracy is ideologically at odds 

with US democracy. What economists 

call “the China shock” has been real 

and significant, although trade with 

China has not been the main reason 

for the adverse changes experienced 

by US industrial workers. The US has 

also failed to provide the safety net 

or active support needed by affected 

workers and communities. 

Furthermore, the deal reached 

when China joined the WTO in 2001 

is no longer acceptable. As Mr Trump 

states, the US wants strict “reciprocity”. 

Finally, many business people argue 

that China is “cheating”, in pursuit of 

its industrial objectives. 

Experience shows that the complaints 

will never end. A decade or so 

ago, complaints were about China’s 

current account surpluses, undervalued 

exchange rate and huge accumulations 

of reserves. All these have 

now been transformed: the current 

account surplus itself has fallen to just 

1.4 per cent of gross domestic product. 

Now complaints have shifted towards 

bilateral imbalances, forced transfers 

of technology, excess capacity and 

China’s foreign direct investment. 

China is successful, big and different. 

Complaints change, but not the 

complaining. 

US tariffs look to torpedo China 

world leadership hopes 

DON WEINLAND AND BEN BLAND 

Page A14 

will help Chinese groups rise to 

global dominance in their respective 

industries. It is these companies the 

US is expected to take action against. 

“Planned US tariffs and investment 

restrictions are meant to hit 

China in response to what the US 

sees as unfair technology and intellectual 

property practices,” Louis 

Kuijs, head of Asia for Oxford Economics, 

said in a note. 

“The most important part of 

this seems to be to slow down the 

transfer of technology to China,” said 

Christopher Lee, S&P Global’s lead 

China corporate specialist. 

The US Trade Representative 

office has named “aerospace, information 

and communication 

technology and machinery” as industries 

that would be targeted by 

Continues on page A14 

Brussels to propose €50bn raid on ECB profits 

Plastics tax envisaged in drive to plug budget hole after Brexit 

Brussels is considering a €50bn 

raid on European Central Bank 

profits and a plastics tax to plug a 

hole in its long-term budget after Brexit. 

The European Commission’s ruling 

college will on Wednesday discuss 

ways to find new sources of revenue to 

maintain its financial firepower once 

the EU’s second-biggest net budget 

contributor leaves the bloc in 2019. 

One of the measures under discussion 

is a plan to divert profits 

made by the eurozone’s 19 national 

central banks from printing 

banknotes straight into EU coffers. 

The commission estimates the revenue 

stream could generate €56bn 

during the seven-year span of the 

next EU budget. 

More than 90 per cent of the socalled 

seigniorage profits are distributed 

by the ECB to the eurozone’s 19 

central banks that often pass a portion 

on to their national treasuries. 

The commission is considering 

an ECB cash raid as a quick way to 

Amazon signs distribution deal with French retailer Casino 

Tie-up with Monoprix arm ends speculation over US group’s ambitions 

HARRIET AGNEW 

Amazon has signed a distribution 

deal with French retailer 

Casino Group, ending months 

of speculation that the US ecommerce 

company was planning more partnerships 

or acquisitions in Europe. 

Groceries from upmarket brand 

Monoprix will be available to customers 

of Prime Now, Amazon’s highspeed 

delivery service, as Casino 

becomes the first French retailer to 

unveil an alliance with the US group. 

Casino’s shares rose more than 4 per 

cent on Tuesday morning after the announcement 

late on Monday. 

Amazon, and its success in disrupting 

sectors from bookstores to cloud 

computing and film over the past two 

decades, represents both a fear and a 

fantasy for grocers. 

It made clear its ambitions in the 

$800bn US food and grocery sector 

with the acquisition of upmarket US 

Bond yields: 

The real thing 

Like all bullies, Donald Trump (right) respects strength. Indeed, he respects China’s Xi 

MEHREEN KHAN AND 

JIM BRUNSDEN 

Page A15 

generate money for the common EU 

pot as the likes of the Netherlands and 

Austria refuse to raise their contributions 

to the €1tn EU budget after the 

UK’s departure. 

“It is one of the low-hanging fruit 

ideas for the budget” said one EU 

diplomat. Another senior official from 

a eurozone country said consultations 

had started between his national government 

and central bank over transferring 

seigniorage money to Brussels. 

The commission is also drawing up 

plans for a so-called “plastics contribution” 

to widen its spending resources. 

In January, Günther Oettinger, budget 

commissioner, said details of the plastics 

tax design would be announced 

in the commission’s formal budget 

proposal in early May. 

Brussels’ politically charged budget 

discussions often pit rich net contributors 

such as France and Germany 

against poorer beneficiaries such as 

Poland and Hungary. But the latest 

round of negotiations for the budget 

that runs from 2021 has been complicated 

by the Brexit black hole, policy 

challenges such as migration, and a 

chain Whole Foods for $13.7bn last 

June, fuelling speculation about its 

intentions in the European sector. 

Amazon has held talks with various 

players in t €222bn French grocery market. 

It first approached Monoprix about 

a tie-up several years ago and has held 

talks with several of Casino’s rivals 

including E Leclerc, France’s biggest 

food retailer by market share, last year. 

But discussions with Casino were rekindled 

recently. 

Monoprix chief executive Régis 

Schultz in dismissed the notion that 

Casino’s deal with Amazon might represent 

getting into bed with the devil. 

“The devil is already in the bed,” Mr 

Schultz told the Financial Times. “The 

competition in France is very fierce 

already and so having one more devil 

in the bed makes it more fun. Amazon 

was coming to France anyway, so you 

don’t put your head in the sand, you 

need to be sensible and strike deals. 

If it’s profitable and I can expand my 

French-led push to create eurozoneonly 

spending tools. 

While the commission is responsible 

for proposing a plan on how to 

structure the common budget, final 

decisions on its size and composition 

will rest with national governments 

which are gearing for discussions over 

the coming months. 

In response to ideas from Emmanuel 

Macron, the French president, to 

reinforce the eurozone’s crisis-fighting 

armour, the commission will in May 

announce plans for a “fiscal stabilisation 

function” to protect investment 

spending when a eurozone member 

state suffers an economic downturn. 

But the idea, which falls short of 

the French vision for a rainy-day fund, 

already risks running into opposition 

led by the Dutch and the Finns who 

want governments to fix their public 

finances rather than gain access to 

more EU-wide funding. 

In an effort to assuage the concerns 

of hawkish governments, Brussels is 

exploring a system of grants and soft 

loans that eurozone countries can access 

in times of trouble. 

business, why should I not do a deal?” 

Mr Schultz declined to outline 

terms of the tie-up but said it would 

be profitable for Monoprix from day 

one and give it access to a wider range 

of customers. Monoprix, which has a 

customer profile similar to that of Amazon’s 

Whole Foods, generated €5bn in 

sales last year. 

The service will be launched this 

year in Paris and the surrounding 

region, with Monoprix groceries available 

to buy via the Prime Now app 

and online through a dedicated virtual 

store. Amazon launched Prime in Paris 

in 2016. 

The deal is similar to a tie-up Amazon 

and UK grocer Wm Morrison 

agreed in 2016. 

Monoprix customers will receive 

two-hour free delivery for goods over 

€40, while one-hour delivery will cost 

€7.90. This compares with Monoprix’s 

requirement customers spend €130 to 

qualify for free delivery.


C002D5556 Wednesday 28 March 2018 

FT 

The powerful sound of silence 

SAM LEITH 

Not much is written about the 

subject of silence in oratory. 

We usually think of the words 

as the important thing. But, as even 

the most jobbing after-dinner speaker 

knows, the spaces between words 

help to give rhythmic power and 

emphasis to those words. You pause 

for applause. You pause for effect. You 

pause to let something sink in. 

Yet there is something that goes 

US tariffs look to torpedo 

China world leadership... 

beyond a gap in the words. The pause 

into which laughter or applause flows 

warmly is one thing. But the longer 

silence — a silence that is more of a 

chasm than a gap — has a different 

purpose: it does not invite and accommodate 

the audience, but discomfits 

and even confronts them. 

Such a chasm was present in the 

remarkable speech Emma González, 

a survivor of the Marjory Stoneman 

Douglas High School shooting, delivered 

to the March For Our Lives 

NATIONAL 

How a school shooting survivor commanded an audience by saying nothing at all 

Continued from page A13 

tariffs. More details are expected in 

early April but the White House has 

already named a number of Chinese 

companies in a 200-page report as 

examples of how the US is losing 

out against “unfair” competition 

from China. 

According to the US, these companies 

are among those that pose 

the biggest threat: 

Although it is not owned by the 

state, home appliances company 

Midea has become central to China’s 

plan for building a globally competitive 

robotics industry. In 2016 

it spent $4.2bn to buy Kuka, one of 

Germany’s top robotics groups. 

The US government views Midea 

as an example of a private Chinese 

group that appears to be carrying 

out several elements of Beijing’s 

development policy. It has received 

hundreds of millions of dollars in 

loans from policy banks to support 

its acquisition. 

One of the lenders, China Exim 

Bank, said that Midea’s robotics 

deal would “assist in optimising 

the domestic robotics industry layout, 

promote the process of multiindustry 

production automation, 

and enhance China’s intelligent 

manufacturing technology level”, 

according to the US trade office. 

State-owned ChemChina 

grabbed global attention in early 

2016 when it said it would pay $44bn 

for Switzerland’s Syngenta, one of 

the world’s largest pesticide and 

seed groups. The deal was in line 

with Beijing policy to control a list of 

technologies for crop security and to 

modernise its agriculture. 

The trade office has taken note 

of how the deal, which was in part 

backed by state banks, brought 

“4,000 employees, 33 research sites, 

and 31 production and supply 

sites” in the US under the control 

of a conglomerate that takes orders 

from Beijing. 

The acquisition also brings US 

pesticide makers such as DowDu- 

Pont and Monsanto into direct 

competition with the Chinese state, 

making ChemChina’s new, global 

reach a prime target for tariffs. 

CRRC, which is the world’s largest 

maker of rail rolling stock, and 

other Chinese state-owned rail 

groups were big beneficiaries of 

joint ventures with global industry 

leaders such as Bombardier and 

Siemens. 

In addition to supplying China’s 

fast-expanding high-speed rail and 

metro systems, CRRC has moved 

into the US market in the past few 

years winning contracts to supply 

metro trains in Boston, Chicago, Los 

Angeles and Philadelphia. 

rally on Saturday in Washington. Miss 

González started her speech with a 

bald statement, urgent, flat and without 

preliminaries: “Six minutes and 

about twenty seconds.” 

Then she expanded on it. “In a little 

over six minutes, 17 of our friends 

were taken from us, 15 more were 

injured, and everyone, absolutely 

everyone in the Douglas community 

was forever altered. Everyone who 

was there understands. Everyone who 

has been touched by the cold grip of 

gun violence understands,” she said. 

Here was pathos, and here was 

ethos. It put the unimpeachable force 

of personal experience, and of communal 

emotion, right up front. And 

she went on to further unpack the 

bare numbers: to make the facts connect 

on a human level. She described 

her long, tearful, chaotic hours in “the 

scorching afternoon sun”, and the 

impossibility of knowing then “where 

this would go”. Then, with anger: “For 

those who still can’t comprehend, 

John Cryan has been chief executive of Deutsche since 2015 but a common complaint is that he is not visionary enough 

© Bloomberg 

Deutsche Bank starts process to find John Cryan’s successor 

Chief executive of German lender under pressure amid board unrest and shareholder discontent 

MARTIN ARNOLD, PATRICK 

JENKINS AND OLAF STORBECK 

Deutsche Bank has started 

an informal process to find 

a successor for chief executive 

John Cryan amid mounting 

boardroom unrest and shareholder 

discontent over the bank’s performance 

ahead of its annual meeting 

in May. 

The search for a potential successor 

for Mr Cryan is at an early 

stage, according to people involved. 

“A final decision has not yet been 

made, but this is a topic which is 

being intensively discussed,” a 

person familiar with the situation 

said. Another person confirmed 

that a formal search for a successor 

had not yet begun, but headhunters 

had been asked informally 

to come up with a list of external 

candidates. 

Mr Cryan, who has been in 

charge of Germany’s largest lender 

since 2015, has a contract until 

2020, but has clashed increasingly 

with the chairman Paul Achleitner. 

Several members of the supervisory 

board now believe a change 

of chief executive is needed. 

Mr Cryan successfully listed a 

minority stake in Deutsche’s asset 

management arm DWS last week, 

cashing in €1.4bn, but the British 

banker has come under renewed 

pressure given the poor performance 

of Deutsche’s lacklustre 

investment bank. 

Shares in Deutsche last week 

slipped more than 10 per cent 

after chief financial officer James 

von Moltke warned that the investment 

bank faced headwinds in the 

first quarter only a few days after 

a more optimistic outlook for the 

full year that the lender gave in its 

annual report. 

One person briefed on the matter 

said that among the people approached 

about the chief executive 

job was Jean-Pierre Mustier, the 

UniCredit boss, who rebuffed the 

idea. 

A City of London headhunter 

said that a senior European banker 

was recently called in person by Mr 

Achleitner to ask if he was interested 

in replacing Mr Cryan — an 

offer he declined. 

“Who the hell would want to 

take this job?” asked the headhunter. 

“Shareholders are restless 

and there is perceived to be zero 

progress.” Deutsche and UniCredit 

declined to comment. 

The Times late on Monday 

reported that Deutsche was preparing 

to “oust” Mr Cryan and 

had sounded out Goldman Sachs’ 

vice-chairman Richard Gnodde as 

a potential successor, who according 

to the Times “is thought to have 

turned down the offer”. Goldman 

declined to comment. 

“The supervisory board is 

shocked by the events and the 

leadership performance over the 

last four to five months”, said a 

person close to one senior supervisory 

board member. Mr Cryan 

had had a good start in the job, the 

person added, but more recently 

had “dropped the ball” when implementing 

the bank’s strategy. 

At the same time, leading shareholders, 

which include two Qatari 

funds and HNA, the troubled 

Chinese conglomerate, have been 

unhappy with the performance of 

the bank for some time. One top 

investor has made clear in private 

that Mr Achleitner must produce a 

credible chief executive succession 

plan before the May annual meeting 

to head off a public row and 

potential shareholder revolt. 

Large investors have long had a 

mixed view on Mr Cryan’s performance. 

While they acknowledge 

he made good progress on sorting 

out the myriad legal legacy issues, a 

common complaint is that the chief 

executive is not visionary enough. 

“He’s not the person who will 

lead the bank into the next millennium,” 

said a person familiar with 

the thoughts of one of Deutsche’s 

biggest shareholders. 

Some people on the supervisory 

board also question the 

turnround strategy unveiled in 

March 2017, which focuses on 

costs cuts. 

“The strategy was announced 

too early. Management told a story 

without really being aware of the details 

necessary for implementation.” 

Earlier this year, the lender took 

down its 2018 cost-cutting target 

announced a year ago and flagged 

that the integration of Postbank 

was progressing more slowly than 

initially planned. 

because they refuse to, I’ll tell you 

where it went. Six feet into the ground, 

six feet deep.” 

There followed a powerful list 

of the victims of the shooting, their 

individual personalities evoked by 

the humanising details of everyday 

life: “My friend Carmen would never 

complain to me about piano practice. 

Aaron Feis would never call 

Kyra Miss Sunshine. Alex Schachter 

would never walk into school with his 

brother Ryan…” 

Siberians turn on 

officials after mall 

fire kills 64 

Locals expect death toll to rise, and Putin 

blames ‘criminal negligence’ 

MAX SEDDON 

Russian president Vladimir Putin 

blamed “criminal negligence” 

for a fire that killed 64 people 

and led to protests in the Siberian city 

of Kemerovo. 

Thousands of people filled Kemerovo’s 

central square to demand the 

resignation of local authorities over Sunday’s 

fire, Russian media reported. The 

blaze in the Winter Cherry mall was the 

deadliest in Russia in almost a decade. 

Local people said the toll could be 

even higher and accused local authorities 

of deliberately underestimating the 

number killed. 

The scale of the tragedy and local 

authorities’ response has laid bare the 

distrust ordinary Russians have for the 

government even in places such as Kemerovo, 

where Mr Putin is overwhelmingly 

popular. 

Aman Tuleev, Kemerovo’s governor, 

has run the region with an iron fist for 

more than 20 years and regularly delivers 

vote totals rivalled only in authoritarian 

mini-states such as Chechnya. Mr 

Putin received 85 per cent of the vote in 

Kemerovo in this month’s presidential 

election. 

Mr Putin, who laid flowers at the site 

of the blaze before holding an emergency 

meeting, said: “What’s going on 

here? This isn’t a military conflict, it’s 

not a sudden methane flare in a mine. 

People, children came to have fun. We 

talk about [falling] demography and we 

lose so many people. Why? Because of 

criminal negligence and delinquency.” 

Investigators have arrested five 

people, including the mall’s manager. 

Alexander Bastrykin, head of the Investigative 

Committee, an FBI-like body, 

said operators of the mall had failed to 

fix the alarm system that broke a week 

before the fire. Security guards neglected 

to unlock fire escapes or sound an alarm 

before running away, he added. 

Mr Putin declared Wednesday a day 

of national mourning. The death toll is 

the largest from a fire since 156 lives were 

lost in a nightclub in Perm in 2009, and 

the largest in Kemerovo since a mining 

accident killed 91 in 2010. 

Mr Tuleev, who had yet to meet victims’ 

relatives or visit the mall, told Mr 

Putin that only 200 people were protesting 

and he would stop the demonstration 

in the central square dominated by 

a statue of Lenin. 

“They’re not related to the dead at 

all,” said Mr Tuleev, whose 11-year-old 

niece died in the fire. “We are working 

with them, we’re telling them, ‘You can’t 

do that, it’s blasphemy, when there’s a 

tragedy and you’re trying to solve your 

own problems through that’.” 

Most of the protesters, who gathered 

at the square at 9am, stayed throughout 

the day and vowed they would not leave 

until Mr Tuleev resigned.


FINANCIAL TIMES 

COMPANIES & MARKETS 

@ FINANCIAL TIMES LIMITED 

Bond yields: The real thing 

Fed’s hawkish posture suggest move into positive territory soon 

Coca-Cola for many years 

included “real” in its 

slogan to suggest that 

its beverage was inimitable 

— even natural. 

Bond investors demand a more 

precise definition. To credit markets, 

real means an actual premium to 

expected inflation. The era of loose 

monetary policy curtailed this. Now 

US government bond yields have 

begun to cover inflationary expectations 

once again. Real yields are 

likely to go considerably higher. 

If measured on the basis of 

inflation-indexed two-year Treasuries, 

US government bonds still give 

little or no protection from future 

price increases. Most long-term 

investors want returns that exceed 

rising prices. Two-year notes offer 

none. However since September, 

five-year Treasuries have begun to 

offer a positive real yield — currently 

the highest since 2010. 

The US Federal Reserve’s hawkish 

stance on interest rates suggests 

that shorter-term real rates will also 

move into positive territory soon. 

That is bad news for equity markets. 

Bonds will increasingly be able to 

MARTIN ARNOLD 

Lloyds Banking Group has been 

ordered by a judge to award 

shares worth up to £1.35m to 

Eric Daniels, who ran the lender 

when it was rescued by UK taxpayers, 

after he won a legal claim 

that his bonus had been withheld 

unlawfully. 

A High Court judge also ordered 

Lloyds to pay a bonus worth up to 

£933,230 to Truett Tate, the lender’s 

former head of wholesale banking. 

The two men claimed that they 

should have been paid the share 

awards in 2012 after hitting targets 

linked to the acquisition of HBOS. 

Mr Daniels, who left the bank in 

2011 with a £5m pension pot, was 

responsible for orchestrating the 

takeover of rival HBOS in a deal that 

left Lloyds nursing heavy losses and 

needing a government bailout. 

The ruling is a blow for Lloyds, 

which has resisted for six years 

paying the bonuses to the two executives, 

which were likely to be 

seen as a reward for failure because 

of the disastrous outcome of the 

HBOS deal. 

The summary judgement will 

be closely analysed by the financial 

sector as a sign of how the courts 

view attempts by bankers to enforce 

their contractual rights in the light of 

tighter regulations that allow banks 

to withhold or clawback remuneration 

due to failings. 

Barristers for Mr Daniels at 20 

Essex Street chambers celebrated 

“an emphatic vindication” of his 

position. They said in a statement 

that the ruling “will have general 

relevance beyond the facts of this 

particular case to the construction of 

contractual share schemes awarded 

to employee participants, unilateral 

compete with risk capital for funds 

from investors. It is no surprise that 

money has come out of US equity 

funds this year, including another 

$24.9bn in the week ended March 

21, according to EPFR data. 

Even so, smallish positive real 

interest rates will not cause too 

much upset in wider markets. For 

one thing, the past decade has hardly 

been a normal period of comparison 

given the volume of global central 

bank purchases of government and 

corporate securities. That intervention 

has supported government 

bond prices, influencing all types 

of bonds and loans. And real yields 

of well over 2 per cent were seen in 

five-year Treasuries in the periods 

before the past two equity bear markets. 

Compared with this, a 0.5 per 

cent real yield is unremarkable. As 

such, US real bond yields could rise 

substantially higher yet. In Europe 

real yields are still a long way from 

positive territory. 

Expect more headlines about 

positive inflation-adjusted bond 

yields in the months ahead. However 

it is likely to be 2019 before the real 

pain starts to show in equities. 

Lloyds ordered to pay bonus 

to ex-CEO Eric Daniels 

powers of variation and settlement 

agreements”. 

Lloyds said: “We accept the 

court’s decision and now consider 

this matter closed.” The judge ordered 

the bank to pay Mr Daniels 

2,063,640 shares and Mr Tate 

1,424,778 shares, plus any dividends 

they would have earned since 2012, 

within 14 days. 

The court judgement cited a 

conversation in February 2012 in 

which Mr Daniels was told by Sir 

Win Bischoff, the then chairman of 

Lloyds, that “if he did not agree to 

waive the award, the board would 

not agree to pay him”. 

The award related to a 2009 sharebased 

long-term incentive plan that 

was conditional on the progress of 

integrating HBOS, including achieving 

at least £1.5bn of cost savings — a 

target the bank hit in 2011. 

Mr Daniels, who now works at 

Stormharbour, a boutique investment 

bank in the City, supported his 

claim with minutes from a meeting 

of Lloyds’ remuneration committee 

in January 2012 showing that it was 

agreed that the 2009 awards should 

vest in full. 

The remuneration committee 

went on to approve and adopt an 

amended version of the plan in February 

2012 that included a rule giving 

it general powers to adjust an award 

downwards if the performance of 

any party justified an amendment. 

Lloyds decided to award the 

HBOS integration bonus to only 

some executives and not others. It 

also blocked pay-outs to Helen Weir, 

former head of retail, and Archie 

Kane, the ex-head of its insurance 

arm. But those two executives have 

not made claims against the bank 

and it may now be too late for them 

to do so. 

Wall Street adds to global rally as trade fears ease 

Miners and carmakers shine in Europe as investors buy export stocks 

MICHAEL HUNTER 

US stocks are continuing to rally, 

building on their biggest oneday 

gains since 2015, as soothing 

noises from the White House ease 

investors’ fears that a trade war will 

hurt a robust global economy. 

Donald Trump’s move last week 

to impose tariffs on $60bn of Chinese 

imports rattled fund managers who 

have enjoyed a benign economic 

backdrop over the past year. However, 

sustained hope that China and 

the US are working to avoid a series 

of retaliatory measures is helping the 

S&P 500 rise 0.4 in opening trade on 

Tuesday, adding to Monday’s 2.7 per 

cent advance. 

The rally is global, with European 

equities powering ahead after 

a strong session in Asia. 

The Europe-wide Stoxx 600 is 

up 1.4 per cent, with the UK’s FTSE 

100 rising 2 per cent and Germany’s 

benchmark Dax gaining1.8 per cent. 

The shadow cast by trade tension 

comes at a delicate juncture 

for global equities already grappling 

with the tighter monetary 

policy, new potential regulation on 

high-flying tech companies such as 

Facebook and early signs that the 

eurozone economy may be losing 

some momentum. 

The “rally was helped by a much 

more diplomatic tone out of the 

White House,” Jim Reid, a strategist 

at Deutsche Bank, noted of Wall 

Street’s bounce. 

In Europe the Stoxx industrial 

metals index, which includes the 

continent’s steelmakers, rose 1.9 

per cent, a rise matched by an index 

tracking carmakers. In Frankfurt, 

Volkswagen climbed 2.5 per cent and 

BMW jumped 2.2 per cent. 

Given their sensitivity to the 

outlook for the Chinese economy, 

resource stocks stood out. Miners 

were prominent on the leaderboard 

for the blue-chip FTSE 100 with 

Anglo American rising 3 per cent 

and Glencore gaining by 4 per cent. 

Although European stocks found 

upward momentum on Tuesday, 

they missed out on Monday’s rebound 

and are significantly lagging 

Wall Street this year. The Euro Stoxx 

600 is down 5.6 per cent in 2018 

compared with a 0.6 per cent drop 

for the S&P 500. 

Despite this underperformance, 

analysts at HSBC cautioned against 

Hopes for trade talks power global stock rally 

Renminbi touches 7-month peak, pound shies away from month highs 

MICHAEL HUNTER AND 

EDWARD WHITE 

What you need to know 

• Hopes grow that US and 

China move to avert trade 

war 

• European stocks build on momentum 

from Asian rally 

• Wall Street firms slightly after 

biggest one-day gain since 2015 

• Renminbi firms while dollar 

holds steady, sterling shies away 

from month highs 

• Haven assets slip pressure as 

risk appetite improves 

“My expectation is that the 

US wins a small victory on tariff 

reciprocity, both countries back 

off from trade war threats, equities 

bounce back and China and the 

US sit down for a long acrimonious 

set of negotiations on the harder 

issues related to investment flows 

and intellectual property,” says 

Steven Englander, Rafiki Capital 

Management. 

C002D5556 

Masayoshi Son, chairman and chief executive of SoftBank, left, and Nikesh Arora © Bloomberg 

“The equity market damage is 

disproportionate to the amount 

of economic damage that will 

be inflicted over the short term, 

never mind the medium and longer 

term . . . much commentary 

is missing the point that rarely 

have so many lost so much over 

so little.” 

Hot topic 

Hopes that the US and China 

will avoid a full trade dispute are 

powering a global rally for stock 

markets, while the dollar holds 

steady, the renminbi rises and 

haven assets are shunned. 

European stocks are rallying 

after a strong showing in Asia and 

Wall Street’s biggest one-day gain 

since 2015. 

The S&P 500 climbed 0.2 per 

cent immediately following the 

opening bell after adding 2.7 per 

cent on Tuesday but in a sign of 

some pause in the rally, was later 

slipping between positive and negative 

territory. 

BUSINESS DAY 

A15 

buying the dip in European stocks. 

“The European market is facing a 

whole series of headwinds and uncertainties 

related to growth, monetary 

policy, political risk and now 

also protectionist rhetoric from the 

US,” they argued. “The danger is that 

these intensify rather than subside as 

we struggle into Q2. We conclude that 

the going is going to remain tough.” 

However, so far this week the 

rebound on Wall Street is setting the 

tone globally. 

Monday’s rally on the Dow Jones 

Industrial Average and the techheavy 

Nasdaq Composite represented 

their best one-day gains in 

over two and a half years. 

Stephen Englander, a strategist 

at Rafiki Capital Management, is 

expecting progress in the trade talks 

and argues that the selling on fears 

of a deeper dispute had already run 

too far. 

“My expectation is that the US 

wins a small victory on tariff reciprocity, 

both countries back off from trade 

war threats, equities bounce back and 

China and the US sit down for a long 

acrimonious set of negotiations on 

the harder issues related to investment 

flows and intellectual property.” 

Chinese officials also stepped up 

efforts to smooth tension, including 

suggesting loosening foreign 

investment restrictions and offering 

to buy more semiconductors from 

the US. That followed signs from US 

Treasury secretary Steven Mnuchin 

that he was hopeful an agreement 

between Washington and Beijing 

could be reached on trade. 

The Stoxx industrial metals index, 

which includes European 

steelmakers, is up 2.1 per cent, with 

the index tracking carmakers gaining 

2 per cent. 

The Europe-wide Stoxx 600 is 1.4 

per cent higher, Frankfurt’s Xetra 

Dax 30 is up 1.8 per cent and London’s 

FTSE 100 is 2 per cent firmer. 

Equities 

The Topix in Tokyo was up 2.7 

per cent a day after touching a 

six-month low. All major segments 

were higher but financials made 

the biggest gains, followed by the 

technology and basic materials 

segments.


A16 BUSINESS DAY

WEST AFRICA 

ENERGY intelligence 

oil gas power 


C002D5556 

BUSINESS DAY 

POWER 

Rethinking the 

energy efficiency 

option for Nigeria 

finance people 

appointments 

Page 4 

Babatunde Fashola, SAN, Hon. Minister of Power, Works & Housing, inspecting the panels of the Solar installations in the first phase of 500 

Electrified Shops under the Federal Government’s Energizing Economies Initiatives at the Sabon Gari Market, Kano State recently. 

Sonangol ditches 

Trafigura for 

Glencore, Total 

Page 6 

OPEC weekly basket price 

DAY 

PRICE 

23/3/18 65.08 

16/3/18 62.33 

9/3/18 62.52 

2/3/18 63.58 

23/2/18 63.08 

Source: OPEC 

Debrief 

OPEC still has role despite 

changing global dynamics 

FRANK UZUEGBUNAM 

Contrary to speculations, 

OPEC’s days 

are far from numbered. 

While global 

oil market dynamics 

may have changed, the Organisation 

of Petroleum Exporting 

Countries has proved that it still 

has a role to play. 

Crude oil prices fell under 

$30 a barrel for both Brent and 

West Texas Intermediate in 2016 

prompting the oil cartel to reach 

out to major non-OPEC oil producers 

instituting in January 2017 

a production cut deal meant to 

take out about 1.2 million barrels 

year average, though they have 

been mulling other benchmarks 

to gauge the success of their 

cuts. 

Compliance rate keeps increasing. 

OPEC and its allies 

achieved 138 percent of pledged 

output reductions in February 

2018, up from 133 percent in 

January and the highest since the 

deal aimed at clearing a glut began 

in January 2017. 

Currently, OPEC officials are 

drafting a document that would 

institutionalize the engagement 

with Russia and the other deal 

participants, though they have 

offered no specifics on what such 

a pact would entail. 

Trade war fears is also lendper 

day (bpd) from the market. 

Despite initial doubts and 

concerns, the deal has worked 

leading to multiple extensions. 

The Organization of Petroleum 

Exporting Countries, Russia and 

other non-OPEC producers extended 

the pact until the end of 

2018, with Khalid al-Falih, Saudi 

Energy Minister recently hinting 

that the curbs would need to continue 

into 2019 to reduce global 

inventories. 

Commercial oil inventories 

held by OECD countries fell to 

2.855 million barrels in February. 

OPEC and its allies in a production 

cut agreement have said 

they are aiming to reduce OECD 

commercial stocks to the fiveing 

a helping hand to the oil cartel. 

Oil prices rebounded due to 

growing tensions between the 

Trump administration and China 

regarding tariffs and the increasing 

likelihood of a trade war. The 

Trump administration recently 

announced plans for a variety 

of tariffs targeting an estimated 

$60 billion worth of Chinese 

goods. The move was met with a 

stock market selloff, which also 

dragged down crude oil. 

Also, the market found support 

from rising Middle East tensions. 

Saudi air defences shot 

down seven ballistic missiles 

fired by Yemen’s Iran-aligned 

Houthi militia, some of which 

targeted Saudi capital Riyadh.



C002D5556 

WEST AFRICA 

Outlook 

oil 

Angola: 

Angola’s oil industry close 

to tipping point 

A 

lack of enthusiasm 

in Angola’s 

upstream 

prospects, 

coupled with 

a steady decline in oil 

output have pushed Angola’s 

oil industry to tipping 

point. The country’s 

oil production has been 

on the wane in the past 

few years, with a plethora 

of fields that are mature 

and in decline and a lack 

of new upstream investments 

and incentives. 

Technical and operational 

issues, especially at 

its offshore fields, as well 

as a lack of upstream in- 

vestment have dragged 

output down by 250,000 

b/d in the past two years. 

Production is expected to 

average 1.58 million b/d 

in the first four months 

of this year, according to 

Platts estimates, down 

from a peak of around 1.9 

million b/d in 2008. 

Angola used to be an 

oil prize, as the search 

and scramble for deepwater 

oil and gas pushed 

majors and independent 

explorers toward the 

southern African country. 

But some of the presalt 

plays disappointed 

potential partners and 

due to volatile oil prices, 

economic hurdles and 

regulatory uncertainties, 

a number of projects were 

delayed. 

State-owned Sonangol 

has been holding active 

discussions with international 

oil companies in 

the past few months as it 

makes tweaks to the fiscal 

terms of its upstream 

contracts in its efforts to 

revive the deep offshore 

sector. 

Angola remains a keen 

prospect for deepwater 

exploration for oil companies 

but without any new 

fiscal or regulatory changes 

investment isn’t likely 

to increase, they added. 

Integral to Angola’s 

oil sector is its national 

oil company, Sonangol, 

which has endured five 

very difficult years, as the 

cash-strapped and debtladen 

company struggles 

in the low oil price environment. 

Angola’s difficulties are 

illustrated by the particularly 

steep fall in loadings 

of medium-heavy crude 

grades Hungo and Pazflor, 

both of which are 

produced from mature 

fields. 

Brief 

Iraq: 

Shell divests stake in Iraq’s 

West Qurna 1 oil field 

Shell EP Middle 

East has agreed 

to sell the entire 

share capital of 

Shell Iraq B.V (SIBV), 

which holds its 19.6 percent 

stake in the West 

Qurna 1 oil field, for $406 

million, to a subsidiary of 

ITOCHU Corporation. 

The purchaser will 

also assume debt of $144 

million as part of the 

transaction. The sale has 

received the necessary 

regulatory consent and 

has an effective date of 

December 31, 2015. 

Group, and exiting West 

Qurna 1 allows us to focus 

our resources on other assets 

in our Iraq portfolio. 

We are grateful for the 

support of the Iraqi government 

during the divestment 

process. 

“Shell remains committed 

to working with 

its partners to redevelop 

Iraq’s energy infrastructure 

by capturing associated 

gas, through the Basrah 

Gas Company (BGC) 

Joint Venture, for domestic 

and regional consumption. 

This deal maintains 

West Africa: 

West African gasoline cargoes hit 2-year high on 

increased loadings in H2 March 

West Africangrades 

gasoline 

cargoes 

loading in 

Northwest Europe (NWE) 

jumped to a two-year high 

as spot prices were boosted 

by particularly high 

volumes leaving NWE in 

the last decade of March 

for West Africa. 

FOB NWE WAF gasoline 

cargoes were assessed 

$19.75/mt higher 

at $669.25/mt, their highest 

level since 2015. 

Among the latest fixtures, 

six Medium Range 

tankers were reported on 

subjects to bring a 37,000 

mt gasoline cargo each 

from NWE to West Africa: 

the Atlantic Pegasus, 

the Green Sea and the 

Nave Jupiter to load in 

the last week of March 

from ARA; the Elka Glory 

to load around March 25 

from Donges in France, 

the Elka Sirius to load 

around March 27 from 

Mongstad in Norway and 

the Atlantic Pride to load 

around March 28 from 

Mongstad. 

Gasoline flows to West 

Africa from Northwest Europe, 

mostly the Amsterdam-Rotterdam-Antwerp 

hub, but also France, the 

UK and the Baltic, set to 

arrive in March amount 

so far to around 1,490,344 

mt. 

Since joining the project 

in 2009, Shell has enjoyed 

successful cooperation 

with its partners 

in the West Qurna 1 venture, 

which will continue 

to be operated by Exxon- 

Mobil. 

Andy Brown, Shell’s 

Upstream Director, said: 

“Iraq is an important 

country for the Shell 

the momentum behind 

Shell’s $30-billion divestment 

program and is in 

line with the drive to simplify 

our upstream portfolio 

and reshape the company 

into a world class 

investment.” 

Shell’s other businesses 

in the country will not 

be affected by this divestment.


gas 

Brief 

Libya: 

Libya to carry out gas field 

maintenance in April 

Libya will carry out 

maintenance at its 

gas fields from the 

first week of April, 

the state-owned National 

Oil Corp. said. 

Mellitah Oil and Gas, or 

MOG, a joint venture between 

NOC and Italy’s Eni, 

had originally planned 

the maintenance at its gas 

fields and processing complex 

for late February. 

However, it was delayed 

due to continued cold 

weather across much of 

Europe, since the planned 

shutdown of gas fields 

and the Mellitah gas complex 

would impact Libya’s 

gas exports through the 

Greenstream pipeline to 

Italy. 

Sources in Libya said 

the maintenance schedule 

covers the closure of 

the onshore Wafa field 

for around a week, along 

with the offshore Sabratha 

platform and Mellitah gas 

complex for 10 to 15 days. 

As a result of the complex 

closure, green stream to 

Italy will also be offline. 

Gas from Bahr Essalam 

and the onshore Wafa field 

is transported from compression 

facilities at Mellitah, 

around 100 km west 

of Tripoli, through the 

Greenstream pipeline to 

Sicily. 

Algeria: 

Algeria vows tax reform in energy 

sector, eyes shale gas cooperation 

Algeria plans to offer 

tax incentives 

in a planned new 

energy law to attract 

more investment and 

is in discussion with foreign 

energy firms including BP 

and Anadarko to exploit its 

shale gas reserves. 

Algeria is a key gas supplier 

to Europe, but growing 

domestic consumption 

has been hitting energy 

exports, the main source of 

the state budget. 

In a bid to reverse the 

fall, the energy ministry has 

started drafting amendments 

to the energy law, 

promising more incentives 

for foreign investors. 

“We will remove all 

obstacles, wage a battle 

against bureaucracy and 

change tax procedures,” 

Mustapha Guitouni, Energy 

Minister said. 

The law has been in the 

works for years and is seen 

as key to attracting more 

investment but no draft or 

details have been presented 

yet. 

Algeria was already preparing 

to exploit shale gas 

to boost output after failed 

attempts in the past years 

due to protests by residents 

of affected areas over fears 

of pollution. 

“Evaluation studies on 

shale gas potential are going 

on. This will take 5 to 10 

years,” he said, without providing 

further details. 

KELECHI EWUZIE 

C002D5556 

BUSINESS DAY 

03 

WEST AFRICA 


West Africa needs to look within her 

gas sector space for growth 

From all indications, 

West Africa’s 

gas sector 

in 2018 is 

picking up in 

various activities with the 

development of gas pipelines, 

floating liquefied 

natural gas (FLNG) platforms 

and major gas field 

projects. 

With the abundance 

of natural gas resources 

across West Africa, it is 

expected that the region 

would take the quantum 

leap to the required economic 

and infrastructural 

development. 

However report shows 

that across the region, 

countries remain chronically 

dependent on expensive 

imports of refined 

fuel and have failed to 

enjoy the benefits of gas 

as a cheaper and cleaner 

source of power. 

West Africa region 

holds hundreds of tril- 

lions of cubic feet of 

natural gas under its soil, 

enough to power itself for 

decades, not to mention 

hundreds of billions of 

dollars in exports to energy 

hungry nations across 

the globe. 

Those who know in the 

gas sector space observe 

that until now, high costs 

related to exploration and 

production combined 

with low prices, limited 

the economic feasibility 

of many natural gas projects 

in the regions. 

They pointed out such 

noticed challenges are 

now consigned to the past 

as the advent of new technological 

developments 

through offshore floating 

liquefaction infrastructure 

have made the exploitation 

and transport 

of those resources much 

cheaper and quicker to 

implement. 

Industry operators in 

their various summations 

maintain that deregulating 

the gas market and al- 

lowing market-driven gas 

prices is vital to unlocking 

further gas infrastructure 

investment across the region. 

Recent major discoveries 

in Cameroon, Gabon 

and Senegal, added to the 

major reserves held by Nigeria, 

Equatorial Guinea 

have made it even more 

evident that natural gas 

is not a resource to be ignored. 

Industry experts observe 

that it has becomes 

clear that West African 

nations must look within 

to make the best of the 

scenario in front of them. 

They need to look to Africa’s 

own market and promote 

the development of 

a natural gas-based market 

that could be the cornerstone 

of Africa’s economic 

growth. 

It is the belief of not a 

few industry close watchers 

that a shift in the paradigm 

of power generation 

and gas utilisation across 

the region could spur 

extensive economic development 

and create 

hundreds of thousands of 

jobs. 

To them, “the investment 

in natural gas fired 

power plants and transport 

infrastructure witnessed 

in the last few 

years has made the internal 

market for natural gas 

consumption grow significantly 

within the African 

domestic market”. 

Reports indicate that 

gas-to-power projects 

could come a long way in 

addressing much of the 

West Africa’s electricity 

shortfalls, but it will also 

fulfil the fundamental roll 

of environmental protection, 

as it is a much cleaner 

source of power than 

diesel. 

According to report, 

the use of natural gas 

would allow nations to 

cut down on the extremely 

expensive effort of importing 

refined oil products 

from other parts of 

the world.



C002D5556 

WEST AFRICA 


power 

Rethinking the energy efficiency 

option for Nigeria 

KELECHI EWUZIE 

It is no longer news 

that an estimated 98 

million Nigerians 

do not have access 

to grid-connected 

electricity owing largely 

to the numerous financial 

and infrastructure 

challenges bedeviling the 

power sector. 

Reports indicate that 

since the privatisation of 

the sector in 2013, all the 

successor distributions 

companies (DISCOs) 

have found it difficult to 

collect sufficient revenue 

to meet their full market 

obligations and as a result, 

the upstream sectors 

(transmission and generation 

companies, gas producers) 

do not receive full 

compensation for their 

costs. 

It is against the backdrop 

of this worrying 

situation that those who 

know in the power industry 

have insisted that for 

Nigeria to realise its full 

socio-economic potential 

as a country, there is 

need for a robust power 

infrastructure to deliver 

affordable, clean energy 

to all of its citizens irrespective 

of where they are 

located. 

They argue further that 

managers of the power 

sector must be open to a 

review of the country’s energy 

sustainability strategy 

to stand any chance 

of making progress. 

Energy conservation 

and efficiency in the opinions 

of analysts remain 

a critical tool to relieve 

pressure on energy supply. 

According to them, 

“to promote the more efficient 

use of energy in Nigeria, 

our national energy 

policies remain crucial. 

Yet, market-based methodologies 

can be an effective 

element to channel 

private decisions in the 

right direction”. 

Industry experts in the 

power sector opine that 

a combination of advocacy, 

research and development, 

energy policy 

and urban planning are 

required to overcome the 

hurdles of propagating 

the message of energy efficiency 

among Nigerians 

locally. 

A cursory look at the 

Snapshot 

96,000MW 

Estimated 

Nigeria’s 

electricity 

demand by 

2020 

trend in the power sector 

shows that there is an 

emerging ecosystem of 

private companies and 

non-profit organisations 

who are trying to bring 

power to more people 

through market-driven 

approaches such as energy 

efficiency. 

According to a World 

Bank report, Nigeria’s 

power deficit stands at 

94,500 MW while there 

are indications that Ni- 

geria’s electricity demand 

should hit an estimated 

96,000 MW by 2020. 

Analysts, however, argue 

that it will be near 

impossible to bridge the 

power infrastructure gap 

required to realise Nigeria’s 

power availability expectations 

within such a 

short time frame. The solution, 

therefore, is to find 

ways to do more with less 

energy and this is why the 

energy conservation and 

efficiency conversation is 

most critical. 

To them, “a key component 

of this approach 

to efficiency involves getting 

consumers to use less 

energy through simple 

behavioural and lifestyle 

changes”. 

It is a known fact 

that access to capital 

remains the most important 

barrier to the 

deployment of energy 

efficient technologies as 

simple equipment retrofits 

and upgrades often 

require high upfront 

investment; however, 

behaviour-based energy 

efficiency does not face 

the same funding challenges 

as capital intensive 

upgrades. 

In the opinion of industry 

close watchers 

saving energy is cheaper 

and faster than making 

energy adding that energy 

efficiency investments do 

not only bring financial 

returns to investors they 

also create public benefits 

in terms of lower greenhouse 

gas emissions, 

increased employment 

and most importantly increased 

power availability. 

“With the right leadership, 

vision and policies, 

Nigeria can use its power 

infrastructure deficit as 

an advantage as it leapfrogs 

to building the energy 

system of the future 

while connecting millions 

of people to modern electricity 

services”, they said. 

Brief 

Ghana: 

Tema to get 60MW waste-to-energy 

power plant 

Armech Africa Limited, 

a subsidiary 

of the Armech 

Group, has signed 

a public private partnership 

agreement with the 

Electricity Company of 

Ghana to construct a $300 

Europe: 

EU to fund €200M for crossborder 

energy infrastructure 

The European Commission 

(EC) will 

make €200 million 

in funding 

available for projects in 

electricity, smart grids, 

cross-border carbon dioxide 

network and gas infrastructure, 

as part of the first 

call for proposals under the 

Connecting Europe Facility 

(CEF) Energy in 2018, the 

EC announced recently. 

According to the announcement, 

the money is 

intended for projects that 

will strengthen the EU’s 

internal energy market, 

million waste-to-energy 

power plant. 

The plant will be situated 

in the Tema region, and 

once in full operation will 

have the capacity to generate 

60MW of clean energy. 

The project will be prefinanced 

by the Armech 

Group via the Industrial 

and Commercial Bank of 

China, a Chinese Multinational 

Bank, without any 

Sovereign Guarantee from 

the Government of Ghana. 

The construction will 

be done by Energy China, 

a global solutions provider 

for the power sector and 

infrastructural projects in 

China. 

“This project will represent 

the first waste-toenergy 

project in the Economic 

Community of West 

African States and there 

are plans to develop a second 

plant in Kumasi, the 

Ashanti Regional capital”, 

Andrew Quainoo, Armech 

Africa’s COO, said. 

In March 2015, the firm 

signed a Waste Feedstock 

Agreement with the Ministry 

of Local Government 

and Rural Development 

together with six other metropolitan 

and municipal 

assemblies in the Greater 

Accra Region. 

enhance security of energy 

supply, and help make Europe’s 

clean energy transition 

a reality. 

“The call for proposals 

will be open until April 26, 

2018,” the statement read. 

Since 2014, a total of €2.5 

billion in CEF grants has 

been awarded to 113 projects 

in the electricity, smart 

grid and gas sectors. 

Proposed project applications 

to the CEF can 

be either studies or construction 

works and will be 

evaluated against several 

criteria.

Wednesday 28 March 2018 C002D5556 BUSINESS DAY 05 

POLICY 

New meter regulation excites 

market for local manufacturers 

ISAAC ANYAOGU 

The new Meter Asset 

Provider (MAP) regulations 

2018 which 

came into effect on 

March 8 is causing 

palpable excitement with local 

meter manufacturers due to a 

provision that allows them supply 

30 percent of the required 

meters. 

According to the Nigerian 

Electricity Regulatory Commission, 

(NERC), Nigeria has a 

metering gap of 4,740,275. BusinessDay 

calculations show that 

30 percent of this translates to 

1,422,082.5. Further, NERC projects 

it to rise N200bn in three 

years. 

Customers would be required 

to pay a service charge along with 

the energy charge. Customers 

who choose to buy meters can do 

so through the DISCO, and upon 

certification of the premises, 

MAP shall install the meter in 10 

working days. Such customer will 

not pay for meter service charge 

again. Already, 71 Metering Service 

Providers (MSPs) have licensed 

by NERC. 

“It is a very big lift; it will enable 

the meter manufacturers to 

be busy and enhance their capacity. 

We were even agitating for 70 

per cent local content. The potential 

is there for the local manufacturers, 

but the capacity utilisation 

is low,” Kola Balogun chairman, 

Momas Electricity Meters Manufacturing 

Company Ltd, an indigenous 

meter provider told journalists 

recently. 

Balogun further said, “It will 

allow some investors to inject a 

high-value capital into the metering 

scheme, which will eventually 

lead to the liberalisation of metering, 

because there is an opportunity 

for consumers to pay and 

get meters immediately.” 

Speaking in the same vein, the 

Electricity Meters Manufacturers 

Association of Nigeria (EMMAN) 

also said the move will create 

massive employment opportunities 

for Nigerians and ensure the 

transfer of technology to Nigeria 

as well as enhance Foreign Direct 

Investments (FDIs). 

“The meter manufactures 

would ensure production of meters 

to capacity, utilise their resources 

very well and adequately. 

Not only that, it will enable them 

to employ more Nigerians from 

the teeming unemployed in the 

country,’’ Muideen Ibrahim, the 

Executive Secretary of EMMAN, 

who signed the release said. 

The key regulatory objectives 

of the MAP Regulation are 

to encourage the development 

of independent and competitive 

metering services in the Nigerian 

Electricity Supply Industry 

(NESI) and to attract private investment 

in the provision of metering 

services in the NESI. 

The MAP Regulation is significant 

because it effectively unbundles 

Nigeria’s electricity distribution 

sector, by re-allocating 

the responsibility for providing 

metering services, effectively creating 

a new class of market participants 

-Meter Asset Providers. 

Under the MAP regulation, 

DISCOs are prohibited from 

self-dealing which means that 

DISCOs and their core investors, 

including their subsidiaries, affiliates, 

directors and their relatives 

are prohibited from setting up, 

owning shares or holding directorships 

and senior management 

positions in the MAP. 

It also places an obligation on 

DISCOs to conduct an open and 

competitive bidding process. To 

ensure compliance with statutory 

requirements, procurement processes 

for metering services are 

now also subject to top-level review 

by tender auditors who will 

be engaged by the NERC to audit 

all meter service procurements 

The MAP Regulations place a 

mandatory obligation on DISCOs 

to provide payment security within 

30 days of executing an MSA 

with a MAP and the regulation 

Snapshot 

N200bn 

Estimated value 

of Nigeria’s local 

meter market in 

the next three 

years by NERC 

adopts a framework that ensures 

that commercial expectations are 

managed and contractual obligations 

are enforceable between 

the MAPs and DISCOs. 

This regulation became imperative 

following the inability 

of the DISCOs to meter their customers 

preferring to inflict on 

them estimated billings. 

Between November 2013 and 

June 2016, only about 500,000 

meters were deployed by the 11 

DISCOs within their networks 

with less than 35 per cent of that 

directly done by the DISCOs according 

to NERC. 

In 2013, NERC launched a 

programme called Credited Advance 

Payment for Metering 

Implementation (CAPMI), which 

allows electricity consumers selffinance 

of their meter acquisition 

and installation but this 

programme was discontinued in 

November 2016 because the DIS- 

COs were unable to promptly deploy 

meters to customers. 

Many Nigerians believe that 

the DISCOs’ preference for estimated 

billings removes any motivation 

to provide prepaid meters. 

Estimated billings allow customers 

the DISCOs to recover losses 

from areas collections are poor 

hence it is a preferred alternative. 

DISCOs have yet to provide a formal 

response to the regulation.



C002D5556 

WEST AFRICA 


Brief 

finance people 

appointments 

Sonangol ditches Trafigura for Glencore, Total 

Bunmi Popoola-Mordi, general manager, human resources and 

corporate services/company secretary, Total Nigeria Plc; Dan Auta 

Kaduna State commissioner for Youth and sports development a 

diretor of Total Nigeria Plc; Rufai Sirajo, the district head Makera; 

Ibrahim Yusuf; the district head of Kakuri; Shehu Tijjani; corporate 

affairs manager, Total Nigeria Plc, Albert Mabuyaku; corporate 

social responsibility manager; Total Nigeria Plc; Chinwe Ifechigha 

and the retail sales manager, Kaduna, Jafaru Jimoh. 

CSR: 

Total Nigeria PLC presents starter packs 

to beneficiaries in Kaduna state 

Total Nigeria Plc 

presented starter 

packs to graduating 

youths of its 

2016/2017 Skills Acquisition 

Program (SAP) in Makera 

and Kakuri districts of 

Kaduna State. These starter 

packs which are work tools 

required to establish them 

in small scale businesses 

were presented upon the 

successful completion of 

their respective one year 

vocational training. The 

20 graduands specializing 

in Tailoring (7), Computer 

Studies (6), Hairdressing 

(2) and Welding (5) received 

the items at Total Nigeria 

Plc Lubricant Blending 

Plant, Kaduna. 

The Skills Acquisition 

Program is a sustainable 

youth development 

scheme designed to address 

one of the company’s 

focal Corporate Social Responsibility 

pillars; Local 

and Economic Development. 

Under this program, 

less privileged youths of 

its host communities are 

trained and empowered in 

vocations of their choice 

which include but are not 

limited to Welding & Fabrication, 

Furniture Making, 

Fashion & Designing, Computer 

Studies, Hair and 

Beauty Art and Fish/Crop 

farming. Since its inception 

in 2008 this program 

has graduated 90 youths 

in Kaduna state alone. 

Upon completion of their 

training, they are presented 

with these starter 

packs and a shop with 

two years rent already 

paid. All these are aimed 

at supporting the sustainability 

of the businesses 

towards becoming stable 

startups. 

Jean Philippe Torres, 

Managing Director, Total 

Nigeria Plc, in his address 

read by General Manager, 

(Human Resources 

and Corporate Services/ 

Company Secretary), 

Bunmi Popoola-Mordi, 

implored the Makera and 

Kakuri district graduates 

to continue believing 

in their capabilities 

and strengths to become 

achievers in their different 

vocations whilst 

working hard to contribute 

positively to the 

growth and development 

of their communities. 

In response, Dan Auta, 

Commissioner for Youths 

and Sports development 

appreciated Total Nigeria 

Plc for their resilient support 

over the years. He 

urged the youths to put to 

best use, the equipments 

they have received and 

assured them the State 

Government will henceforth, 

enforce supervision 

of the program to 

ensure its success. 

Trafigura has lost 

Angola’s Sonangol 

as its key 

customer for refined 

products, 

making way for Glencore 

and Total to supply the 

country with fuel imports 

for the next 12 months. 

It marked a decisive 

shift for OPEC member 

Angola, which had been 

heavily reliant on trading 

houses like Trafigura and 

Vitol, with the former being 

very active in the country’s 

oil sector. 

The state-owned Sonangol 

said Total will 

supply the country 

with 1.2 million mt of 

gasoline in the next 12 

months, while Glencore 

will be responsible for 

imports of 480,000 mt 

of marine gasoil and 2.1 

million mt of gasoil. 

Sonangol issued a rare 

public tender in January 

seeking almost 4 million 

mt of refined products, in a 

move to diversify its supply 

sources. 

“It should be noted that 

with the results achieved in 

the tender, the country and 

Sonangol will benefit from 

a considerable reduction 

in the amounts to be spent 

on refined products in the 

next 12 months,” Sonangol 

said. 

Total is a key player in 

Angola’s upstream sector, 

operating some of its pivotal 

deepwater oil fields 

while Glencore is an active 

trader of crude oil and refined 

products in southern 

and western Africa. 

Sonangol previously 

said the tender was part of 

a “medium-term strategy 

to bring greater competitiveness 

to the Angolan oil 

import market, while the 

import segment is not liberalized”. 

The Angolan downstream 

sector is the one of 

the least diversified in sub- 

Saharan Africa. 

In November, President 

Joao Lourenco, who came 

to power in mid-2017, began 

a major shake-up at 

Sonangol by dismissing 

Isabel dos Santos as chairwoman 

and also removing 

other top executives. 

Angola’s economy, 

which depends on oil for 

about 98 percent of its export 

revenues, has been 

fragile due to the significant 

fall in oil prices since 

mid-2014, and its output 

has not grown as expected 

in the past two years, further 

hurting the economy. 

Energy trader Vitol’s traded oil volumes edged lower in 2017 

The world’s largest 

oil trader Vitol 

said that its traded 

crude and products 

volumes fell slightly 

in 2017 as it focused on its 

mid and downstream acquisitions 

and added assets 

in the United States by 

acquiring Noble Group’s 

oil business. 

The total volume was 

349 million tonnes, down 

slightly from 351 million 

tonnes the previous year, 

but staying above the 7 

million barrel per day 

(bpd) level hit for the first 

time in 2016. 

The trader added that 

crude continued to represent 

the bulk of those 

volumes with a slight rise 

to 3.6 million bpd while 

gasoline volumes fell to 

34 million tonnes from 44 

million tonnes. 

Separately, the firm 

increased its traded liquefied 

natural gas (LNG) 

and liquefied petroleum 

gas (LPG) volumes. Traded 

LNG nearly tripled to 

7.4 million tonnes per 

year (mty) up from 2.6 

mty in 2016 while LPG 

volumes fell slightly to 

14.3 mty after a strong 

rise in 2016. 

Turnover increased on 

the back of rising oil prices 

to $181 billion from $152 

billion in 2016. 

In its statement, Vitol 

said “2017 was a chal- 

lenging year, notwithstanding 

robust demand 

growth of 1.6 million barrels 

a day. Across the year, 

the pattern of demand 

and supply surprised the 

market, causing prices 

to dip in H1 2017, before 

rallying in the latter part 

of the year.” 

Among its mid and 

downstream investments, 

Vitol increased its number 

of retail stations to 

over 5,000 after buying 

Turkish chain Petrol Ofisi 

and bought an 85,000 bpd 

condensate splitter from 

Koch Supply and Trading 

in Rotterdam. 

About half of these stations 

will be in Africa after 

300 more are added via 

an agreement with Engen 

Holdings, which will also 

spread Vitol’s presence to 

nine new countries. Vitol 

also has upstream assets 

in Ghana that began production 

with a target of 

45,000 bpd.


marketinsight 

Oil prices find support in trade 

talks and Mideast tensions 

Crude oil futures 

steadied with 

support by a 

rebound in 

stock markets 

and escalating Saudi-Iran 

tensions. 

Global stocks came 

off six-week lows on optimism 

that the United 

States and China are set 

to begin trade talks, easing 

Energy major Shell 

has upgraded the 

targets for its oil 

refinery Armin 

fears about a trade war between 

the world’s two largest 

economies. 

The possibility of a 

full-blown trade war had 

weighed on the energy 

complex on fears that it 

could harm oil demand. 

Brent crude futures 

were up 9 cents at $70.54 a 

barrel while US West Texas 

Intermediate (WTI) crude 

the medium term and 

underlined the important 

role that its refining, trading, 

marketing and chem- 

futures eased 5 cents to 

$65.83. 

US President Donald 

Trump last week signed a 

memorandum that could 

impose tariffs on up to 

$60 billion of imports from 

China. 

The market also found 

support from rising Middle 

East tensions. Saudi air 

defences shot down sev- 

en ballistic missiles fired 

by Yemen’s Iran-aligned 

Houthi militia, some of 

which targeted Saudi capital 

Riyadh. 

Beyond trade concerns, 

crude was pressured by a 

rise in the number of active 

US oil rigs to a threeyear 

high of 804, implying 

further rises in production. 

In Asia, Shanghai crude 

oil futures made a strong 

debut in terms of volume 

as investors and commodity 

merchants bought into 

the world’s newest financial 

oil trading instrument. 

Hedge funds and other 

money managers raised 

their net long US crude 

futures and options positions 

in the week to March 

20 after two weeks of cutting 

bullish bets, the US 

Commodity Futures Trading 

Commission (CFTC) 

said. 

Shell sees strong growth in downstream oil beyond 2020 

icals business will play in 

the coming decades. 

The Anglo-Dutch company 

plans to invest $7-9 

billion a year across its 

downstream, and to deliver 

a return on average 

capital employed above 

15 percent as it looks to 

transform its business to 

meet what it described as 

the global shift to a lowercarbon 

energy system. 

Shell said it is aiming 

to generate strong free 

cash flows while boosting 

Shell’s resilience in the 

longer term. 

“We are making products 

from today’s technologies 

as good as they 

can be, with better fuels 

and lubricants. We are 

also helping to deliver 

tomorrow’s products, services 

and technologies. 

From battery-electric 

vehicle charging to nextgeneration 

biofuels; LNG 

for transport to hydrogen; 

and smartphone apps 

that enable more efficient 

driving,” said Shell downstream 

director John Abbott. 

Shell reiterated its expectation 

of $6-7 billion 

annual organic free cash 

flow from downstream 

by 2020, at $60/b and 

mid-cycle downstream 

conditions, with $9-12 

billion expected by 2025. 

The 2020 guidance is in 

line with the numbers at 

Shell’s November presentation, 

while the 2025 

figures suggest further 

growth into the next decade. 

Shell’s downstream 

business has been pivotal 

during the oil industry’s 

downturn since 2014, 

providing a significant 

revenue stream as the 

price of crude collapsed 

to below $30/b. 

C002D5556 

OPEC Flakes 

Compliance with 

a global deal to 

cut oil supply 

hit a new high in 

February and an inventory 

glut is shrinking fast, 

a joint OPEC and non- 

OPEC committee said, 

bringing producers close 

to the pact’s original aim. 

OPEC and its allies 

achieved 138 percent of 

pledged output reductions 

last month, OPEC 

said, up from 133 percent 

in January and the highest 

since the deal aimed 

at clearing a glut began in 

January 2017. 

The Organization of 

the Petroleum Exporting 

Countries, Russia and 

other non-OPEC producers 

have extended 

the pact until the end of 

2018, even though OPEC 

sources say the market is 

now expected to balance 

between the second and 

third quarters. 

A rapidly shrinking 

glut will fuel debate over 

how long the curbs need 

BUSINESS DAY 

OPEC supply cut 

compliance hits record 

07 

WEST AFRICA 


OPEC, Russia 

and the other 

participants in 

a production 

cut agreement should 

stop talking about any 

expiration dates for the 

deal, so that they can 

maintain flexibility on 

when to exit it, Vagit Alekperov, 

Lukoil CEO said. 

“I believe no timeframes 

are needed,” 

Alekperov said at the 

company’s Investor Day 

in London, adding that 

“the deal’s participants 

need to see how the marto 

be in place, although 

top exporter Saudi Arabia 

has said it is too early 

to discuss an exit strategy. 

A ministerial panel 

meets to review the deal 

in April. 

“The committee 

stressed that all participating 

countries should 

strive to achieve or exceed 

full conformity with 

their voluntary production 

adjustments,” the 

OPEC statement said. 

“February continued 

the accelerated rebalancing 

path witnessed in recent 

months.” 

‘OPEC coalition’s production cut deal 

should have no time frames’ 

ket will react, to see firstly 

on stocks and how the 

market will react on the 

demand increase and 

then react flexibly, to increase 

or cut output.” 

The deal calls on 

OPEC and 10 non-OPEC 

producers led by Russia 

to cut a combined 1.8 

million b/d in output to 

support oil prices and 

rebalance the market. 

The agreement went into 

force in January 2017 and 

was extended at the last 

OPEC meeting through 

the end of 2018. 

OPEC officials are 

currently drafting a document 

that would institutionalize 

their market 

engagement with Russia 

and the other deal participants, 

though they 

have offered no specifics 

on what such a pact 

would entail.



C002D5556 

WEST AFRICA 


In association with 

Nigeria lags as Japan lead in global LNG regasification capacity 

talking points 

ISAAC ANYAOGU 

Japan now has the world’s highest Liquefied 

Natural Gas (LNG) regasification 

capacity of 9.6 trillion cubic feet (tcf), 

but Nigeria with the world’s ninth 

largest proven gas reserve cannot 

convert liquid gas back to its natural 

state indicating poor strategy for domestic gas 

usage. 

GlobalData, a data and analytics company 

based in the United States who carried out the 

research also said that South Korea and China 

come next with 4.9 tcf and 3.2 tcf capacity 

respectively. 

This questions Nigeria’s strategy to liquefy 

its gas mainly for exports thus limiting usage 

locally as fuel for vehicles, shipping and rail, 

agriculture and power. Analysts say a better 

strategy would be to export and invest in 

regasification terminal to take advantage of 

cheap gas prices in an already glutted LNG 

market. 

Olufola Wusu, oil and gas lawyer who 

helped review Nigeria’s new gas policy said 

that Nigeria at the moment does not have 

one regasifacation unit which is part of the 

problem with utilisation of gas domestically, 

there are so many uses of gas but Nigeria is 

not benefiting from it. 

Traditionally, Nigeria’s gas strategy, with 

reference to LNG was primarily geared 

towards exports, however, changing LNG 

market is creating a need for a new strategy, 

says Wusu. 

Wusu further said that Nigeria’s domestic 

gas market is experiencing severe shortage 

with power plants often going offline due to 

gas supply constraints. At present, about 2,000 

megawatts capacity lie idle at 12 power plants. 

“The LNG market seems to be experiencing 

a glut, while the domestic gas market is 

still suffering an energy deficit largely due to 

an absence of critical gas infrastructure that 

no one wants to pay for. These pending gas 

projects may need to tweak their strategy and 

think of innovative ways to supply LNG to the 

domestic market,” said Wusu. 

Nigeria currently produces 8.0 bcf/ d of 

natural gas but 38 percent of this, the equivalent 

of 3.05 bcf/d is exported in the form of 

LNG by the NLNG. Thirty six percent or 2.9 

bcf/d serves as re-injection fuel and for other 

operational uses. Sixteen percent or 1.3 bcf/d 

of gas produced is dedicated for domestic 

consumption in power and industries and 

0.75 bcf/d or 10 percent is flared. 

The chief use for gas in the domestic market 

is for power generation as industries while 

needing gas, do not have sufficient capacity to 

take the volumes required to keep the market 

liquid. However, the power sector which has 

capacity is cash challenged and indebted to 

gas producers. 

Operators also decry the gas pricing 

template that compels industries to buy the 

commodity at a fixed price of $7.30/mmbtu 

while gas sells in the international market at 

$3.30/mmbtu. Local gas producers are forced 

to meet a DGSO to power plants at less $3/ 

mmbtu and are being owed billions, before 

they can sell to other parties. 

GlobalData analysis shows that Japan 

accounts for 28.3 percent of the total global 

LNG regasification capacity with 35 active 

LNG regasification terminals. South Korea 

contributed about 14.5 percent of the global 

LNG regasification capacity in 2018 and has 

six active terminals. South Korea is expected 

to add a capacity of 17.1 tcf from a planned 

terminal during the period, 2018 to 2021. 

China on the other hand has 3.2 tcf regasification 

capacity, which is 9.2 percent of 

the global LNG capacity in 2018 and has 16 

active terminals. China is expected to add a 

capacity of 2.1 tcf from 17 planned terminals 

during 2018 to 2021 

Spain is the fourth largest contributor to 

the global LNG regasification capacity with 

2.2 tcf. Next is the UK which contributes about 

2tcf to the global LNG regasification capacity 

in 2018, which is about 6 percent of the global 

LNG regasification capacity. France and India 

contribute about 1.7 tcf each, which is about 

5 percent of the global LNG regasification 

capacity.

BUSINESS DAY 

Opinion 

NEWS YOU CAN TRUST I WEDNESDAY 28 MARCH 2018 

C002D5556 

The Dapchi drama 

OPEYEMI AGBAJE 

opeyemiagbaje@rtcadvisory.com 

Dapchi is a 

town in Yobe 

State, North- 

East Nigeria, 

about 75 

kilometres south of the 

Niger Republic border. On 

19th February 2018, about 

110 girls were reported to 

have been kidnapped from 

Government Science and 

Technical College in the 

remote town, by alleged or 

more accurately, assumed 

Boko Haram terrorists. 

The story was curious 

from the very beginning, 

with credible report that 

the Nigerian military had 

withdrawn troops from the 

region, just in time for the 

terrorist to come in with 

several trucks; load and 

evacuate over 100 girls; 

and make an unhindered 

exit from the town. Several 

reports indicated that the 

“terrorists” were clothed 

in military camouflage 

and many of the students 

thought they were soldiers. 

The military did not 

deny the reported withdrawal 

of troops from Dapchi 

before the “terrorists” 

incursion, claiming instead 

that the withdrawn 

troops were to have been 

replaced by police officers, 

an arrangement the 

police authorities immediately 

claimed they were 

unaware of. The Dapchi 

incident occurred against 

a backdrop of a resurgence 

of violent attacks 

by the terrorists which 

had stripped the government’s 

claim of “technically 

defeating” or otherwise 

ending the Boko Haram 

scourge, of any credibility. 

Only recently in February, 

Boko Haram had 

released three University 

of Maiduguri lecturers and 

ten policewomen who 

it had kidnapped, from 

all accounts against payment 

of a large ransom 

in foreign currency! With 

the Buhari administration 

providing such bounties 

in direct funding to Boko 

Haram, it was not unexpected 

that the group 

would be in a position to 

organise further, more 

ambitious (and potentially 

more lucrative) attacks!) 

It was also to be expected 

that once abductions 

by terrorists were 

proven to be likely to be 

rewarded with very profitable 

ransoms, other actors 

outside and within 

government and security 

agencies, would get involved 

in the venture. In 

this context, the Dapchi 

abductions were probably 

predictable. It was also 

possible to craft scenarios 

in which government itself 

could contrive a staged 

abduction and shortly 

thereafter, rescue in order 

to boost its declining 

fortunes and popularity 

as the 2019 elections draw 

nearer. On the other hand, 

it is possible to speculate 

that the kidnapping could 

be a ploy by “enemies” 

of the government trying 

to replay the Chibok girls 

kidnapping which was 

leveraged by the then opposition 

and its domestic 

allies (in civil society) and 

foreign friends to destroy 

the Jonathan Presidency. 

Several pieces of information 

appeared to 

support the former hypothesis 

rather than the 

latter–the withdrawal of 

soldiers before the attack; 

the president’s willingness 

to draw a seemingly 

premature comparison between 

the government and 

its predecessor’s handling 

of the Chibok and Dapchi 

kidnappings, as if he was 

certain his own would end 

better; the fact that unlike 

the Chibok victims, virtually 

all the kidnapped girls 

were Muslims; and the 

controversial manner of 

return of the Dapchi girls 

to their school from where 

they were kidnapped. 

Undenied reports confirm 

that just as it appears 

troops were withdrawn to 

facilitate the entry of the 

terrorists on February 19, 

on March 21 when they 

were returned, soldiers 

and journalists were explicitly 

withdrawn to enable 

the terrorists bring 

back the Dapchi girls! 

News reports suggested 

that the only Christian 

among the Dapchi captives, 

Leah Shahibu was 

kept by the terrorists due 

to her refusal to renounce 

her faith in favour of Islam. 

The Boko Haram terrorists 

reportedly (and supported 

by images on social media) 

indeed had time to 

preach and parade round 

Dapchi before their exit 

to loud cheers from the 

local community. One 

report claimed the terrorists 

apologised for taking 

the girls saying they would 

not have taken the girls if 

they realised they were 

Muslim girls! 

Many Nigerians have 

come to the conclusion, 

rightly or wrongly, but 

certainly understandably, 

that the Dapchi kidnapping 

was staged by persons 

in or around government 

and the security agencies 

to boost the government’s 

image and perhaps extract 

resources from the public 

purse. Public scepticism 

has been re-enforced by 

the blockbuster accusation 

by General T.Y Danjuma, 

former Chief of Army 

Staff and Defence Minister 

that the Nigerian Military 

under Buhari are “colluding” 

with “armed bandits” 

(read Boko Haram 

and Fulani herdsmen) to 

carry out ethnic cleansing 

across communities in 

central Nigeria! 

General Danjuma’s accusations 

are serious and 

amount to a call on the 

international community 

to intervene in Nigeria 

to prevent full blown Somalilisation! 

His call on 

the threatened communities 

to rise up and defend 

themselves and their territories 

is unprecedented 

though understandable 

in the context unchecked 

ethnic cleansing by socalled 

“Fulani herdsmen” 

and unwillingness by the 

Buhari administration to 

take action. 

Those who love this 

country will urge President 

Buhari and his advisers 

to pull back from the 

precipice before Nigerian 

unity is irretrievably destroyed. 

The bewilderment of Bill Gates 

CHIDO NWAKANMA 

Nwakanma is a Visiting Member 

of the BusinessDay Editorial 

Board and serves on the Adjunct 

Faculty at the School of Media 

and Communication, Pan Atlantic 

University, Lagos. Email chidonwakanma@gmail.com. 

Pictures from the 

wedding of Dangote’s 

daughter 

on March 24 show 

the global wunderkind 

of technology staring in 

wonder and amazement. 

Check the photos available 

online and in the papers. 

He is bemused and transfixed. 

It was evident that Mr 

Gates had not attended a 

high profile Lagos party 

before then. Nigerian parties, 

in particular, the Lagos 

ones, are notorious for 

the scale of lavish expenditure 

as the elite compete 

to outdo themselves in 

splendour and ostentation. 

From all indications, 

the wedding dinner of Jamiu 

Abubakar and Fatima 

Dangote stood out for its 

flamboyance. 

It was difficult to move 

around the Adetokunbo 

Ademola Street, Victoria 

Island axis of the wedding 

venue, Eko Hotel 

& Suites. It was the ultimate 

roll call of the high 

and mighty. As happens 

with these elite events, 

it was easy to forget that 

the ceremony signposted 

the commencement of 

the marital journey of Mr 

& Mrs Abubakar. Photos 

of the wedding Fatiha in 

Kano and the dinner in 

Lagos focus on the prominent 

personalities present 

rather than on the couple. 

The wedding followed 

the Nigerian script. There 

weremany events, but the 

ones in Kano for the traditional 

observances, being 

the actual wedding, and in 

Lagos for a commemorative 

dinner, stood out. Nigerians 

often have a three 

or four-stage event to mark 

weddings. 

The Dangote/Abubakar 

wedding, therefore, was 

exceptional only in respect 

of the personalities 

behind the scene and the 

trappings that attended it. 

Twenty-two private jets 

reportedly landed in Kano 

for that leg of the event. 

Even as it was remarkable 

for its splendour, Nigerians 

will excuse theDangote/Abubakar 

families. 

As far as anyone can tell, 

there was no trace of public 

funds in the celebration. 

The only thing you 

can hold against it would 

be the excessive displays. 

Not like the one involving 

two governors that have 

played in two locations in 

Nigeria. 

Part of Mr Gates’ bewilderment 

must, therefore, 

be on the scale of 

the party and the profile 

of the father of the bride. 

Bill Gates seemed entirely 

taken aback. The excesses 

of that wedding were not 

in tandem with the Dangote 

persona. 

All accounts and narratives 

of Mr Dangote show 

a frugal, and even parsimonious 

entrepreneur not 

given to the proclivity of 

the Nigerian elite for offensive 

display of wealth. 

Mr Dangote is the poster 

boy of Nigerian entrepreneurship. 

He represents 

all the right values. 

He is visionary, has the 

capacity for execution and 

does not dwell on the little 

matters that so engage 

the Nigerian elite. Not for 

Dangote any notion of 

excess aboutissues such 

as celebrations. Even as 

he has private jets and can 

call them up at the whiff 

of desire, Aliko Dangote 

is famous for taking commercial 

flights. 

That event had in attendance 

no fewer than 

20 billionaires. There were 

the captains of industry 

and the chieftains of politics. 

The quantum of funds 

at the behest of guests at 

that wedding could take 

care of malaria in West 

Africa, not just Nigeria, 

and add polio to it. 

Just the previous day, 

Mr Gates told the truth to 

power in our seat of power. 

He wanted a greater focus 

on human capital development 

issues of health and 

education rather than the 

physical capital ones. He 

believes that the right policy 

choices by the political 

class would lift Nigeria. 

Gates is like his friend 

Aliko. One profile describes 

him thus: “Bill 

Gates is an economical 

man. He does not waste 

money, although he is as 

rich as Croesus, and nor 

does he waste words.” Bill 

Gates and Aliko Dangote 

are collaborating in the 

fight against malnutrition 

in Nigeria with a commitment 

of $100m and a target 

date of 2020. 

Bill Gates is now even 

more famous for spending 

his money on good causes 

than he is for founding 

Microsoft. At least to the 

poor of the world. He just 

recently wrote off Nigeria’s 

indebtedness of $76m to 

Japan. He has committed 

considerable sums to the 

fight against malaria in 

Nigeria and other countries. 

The father of Jennifer 

and Rory John agrees to 

descriptions of him as a 

geek, “when geek means 

that you’re willing to study 

things, and if you think 

science and engineering 

matter, then I plead guilty, 

gladly. Also, I kinda hang 

around with people who 

are like that.In our work, 

numbers give you the 

sense of scale, and then 

you meet the individual 

mothers and children and 

farmers. So yes, it’s good. 

If your culture doesn’t 

like geeks, you are in real 

trouble.” 

Clearly, in the worldview 

of Bill Gates, we 

need more geeks. Sitting 

there at the high profile 

dinner were many 

of Nigeria’s wealthy who 

could easily pay off the 

$76m debt to Japan that 

Bill Gates picked for our 

country. Or the millions 

on malaria eradication. 

May his example force 

the Nigerian rich to think 

philanthropy. 

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana. 

Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 

Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.

BusinessDay 28 Mar 2018

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