BusinessDay 11 Apr 2018

More details of MTN Nigeria IPO 

coming in next few months – CEO 

... Eyes mobile services to boost margins 

... Forms partnership with Ecobank for Africa 

ENDURANCE OKAFOR 

MTN aims to list its 

Nigerian unit in an 

initial public offering 

(IPO) this year, 

plans for the IPO are well advanced 

and the company would 

provide exact details in the next 

few months its group chief executive 

Rob Shuter said yesterday. 

“We are well advanced with 

the Nigerian listing. If market 

conditions are appropriate we 

should conclude it this year,” 

Shuter said in Lagos after MTN 

signed an agreement with Eco- 

Continues on page 4 

L-R: Emezino Afiegbe, country manager, Nigeria, Visa; Uzoma Dozie, chief executive officer, Diamond Bank 

plc; Barbara Anozia, general manager, enterprise business unit, MTN; Niyi Ajao, executive director, business 

development, NIBSS; Deji Awokoya, general manager, Beat FM; Yemi Saka, West Africa consulting leader, 

Deloitte and Touche, and Tomi Ogunlesi, corporate brand manager, Interswitch, at the unveiling of Tech Fest 

at Diamond Bank plc head office, in Lagos, yesterday. 

Pic by Pius Okeosisi 

NEWS YOU CAN TRUST I **WEDNESDAY 11 APRIL 2018 I VOL. 15, NO 30 I N300 @ g 

Early rains seen raising Nigeria’s 

midcrop cocoa output by 15% 

May increase position in global rankings Prices up 26% 

JOSEPHINE OKOJIE 

Nigeria has seen 

its cocoa output 

increase by 15 percent 

despite huge 

numbers of old and 

worn-out cocoa trees across 

major producing states in the 

country, as farmers commence 

midcrop harvest soon. 

Farmers link the increase 

in production to early rainfall 

Inside 


Alta Semper eyes two more 

investments after N6bn 

Health Plus deal P. A7 

L-R: Hajara Adeola, MD/CEO, Lotus Capital Limited; Patience Oniha, director-general, Debt Management 

Office (DMO); Tumi Sekoni, associate executive director, FMDQ OTC Securities Exchange, and Kayode 

Akinkugbe, MD/CEO, FBN Merchant Bank, during the listing ceremony for the N100.00bn Federal Roads 

Sukuk, on FMDQ OTC Securities Exchange in Lagos, yesterday. 

Pic by Olawale Amoo 

DMO embarks 

on inspection of 

roads financed by 

N100bn Sukuk 

... listed on FMDQ OTC exchange 

HOPE MOSES-ASHIKE & 

IHEANYI NWACHUKWU 

Officials of the Debt Management 

Office, Federal 

Ministry of Power Works 

and Housing, Federal Ministry 


Belemaoil makes case 

for US presence in 

PH to boost investor 

confidence 

... US ties setting up ‘Business Liaison 

Office’ in PH to free, fair and peaceful 

elections in the state next year 

IGNATIUS CHUKWU 

Belemaoil, Africa’s first and 

only community-owned 

oil company, has led a 

group of investors in Rivers State, 

Continues on page 42

2 

BUSINESS DAY 

C002D5556 

Wednesday 11 April 2018

Wednesday 11 April 2018 C002D5556 BUSINESS DAY 

3

4 BUSINESS DAY 

C002D5556 

Wednesday 11 April 2018 

Commodities 

Brent Oil 

$70.61 

Cocoa 

US $2,524.00 

Biggest Gainer 

Mobil 

N178.5 5.00pc 

NSE 

40,499.04 

Biggest Loser 

Total 

N233.8 -1.18pc 

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2,485,353.84 +0.78pc 

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BUY SELL 

360.00 363.00 

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434.00 444.00 

FOREIGN EXCHANGE TREASURY BILLS 

Market Spot $/N 3M 6M 

I&E FX Window 360.38 0.38 -0.27 

CBN Official Rate 305.55 13.27 14.26 

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5 Years 

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Confusion as Buhari, Lai Mohammed provide 

conflicting timeline for ending rice importation 

BUNMI BAILEY 

Confusion has continued 

to trail the 

administration of 

Muhammadu Buhari 

as both the 

President and Minister of Information 

have given out different 

dates for the country’s attainment 

of rice sufficiency. 

The President had said during 

his New Year speech to Nigerians 

that the country will end the importation 

of rice in 2018 and be 

self-sufficient in rice production, 

while Lai Mohammed, minister 

of information recently said that 

Nigeria will become self-sufficient 

in rice production by 2020. 

During the New Year speech, 

the President made a promise 

that importation of rice will be 

completely stopped in 2018 to 

encourage local production and 

to fully diversify the economy 

through agriculture. 

“Rice imports will stop this 

year. Local rice, fresher and 

more nutritious will be on our 

dishes from now on,” President 

Buhari said. 

However this statement is 

conflicting with that Lai Muhammed’s 

statement on Easter 

Early rains seen... 

Continued from page 1 

which has helped in boosting the 

country’s cocoa pod production 

in recent months. 

“Most of the cocoa pods I have 

seen across major cocoa producing 

states so far are bigger and 

better than that of last year midcrop 

when most of the pods were 

shrinking and this is because of 

the early rainfall,” Sayina Rima, 

president, Cocoa Association of 

Nigeria (CAN) said in a telephone 

response to questions. 

“Even though we recorded 

pest outbreak early this year in 

some states we are going to have 

better midcrop harvest in 2018. 

Our output will increase by 15 

percent in the 2017/2018 cocoa 

midcrop season. Also, we now 

have more young people coming 

into cocoa farming than we had 

in the past. This has also helped 

to increase our midcrop output. 

“This increase in output will 

only be sustained if farmers get 

the right agro chemicals to address 

the challenges that come 

with heavy rainfall,” Rima said. 

He stated that Nigeria recorded 

60,000MT output for the 

2016/2017 midcrop season. 

This means that, 15 percent 

of 60,000MT is 9,000MT, implying 

that the 2017/2018 midcrop 

Monday at a press briefing in 

Lagos. 

“Nigeria will achieve selfsufficiency 

in rice production by 

2020 with sustained implementation 

of the Anchor Borrowers’ 

Programme,” Muhammed said. 

Industry players have attributed 

their disparity to the statistics 

that each of them had at that 

time of their speeches. 

“I think two of them are looking 

at the same coin but from 

different sides. The president is 

looking at the statistics he had 

which gives an impression that 

we are not importing much rice 

into the country anymore, so 

you can simply say we can stop 

importing rice this year but Lai 

Muhammad knows that there is 

still a lot of smuggling based on 

the statistics that he has,” Emmanuel 

Ijewere, vice president 

of the Nigerian AgriBusiness 

Group (NABG) said in a phone 

interview with BusinessDay 

According to recent data, 

importation of rice into Nigeria 

dropped drastically but other 

neighbouring countries such 

as Benin, Cameroun, Niger and 

others have seen their parboiled 

rice imports increasing. 

Ironically, these countries 

L-R: Olulana Loyinmi, head, contribution and bond remittance department, Pencom; Peter Aghahowa, head, corporate 

communications department, Pencom, and Aliyu Asmau Mustapha, head, third party department, Integrated Personal 

Payroll and Information System (IPPIS), at the quarterly Pension desk officers workshop, in Lagos, yesterday. 

harvest would be 69,000MT 

(60,000MT plus 9,000MT). 

Nigeria has two cocoa harvests 

which includes the smaller 

midcrop from April to June, and 

the main crop from October to 

December. 

The midcrop normally accounts 

for about 30 percent of 

Nigeria’s cocoa output while 

the main crop accounts for the 

mostly consume white rice (another 

variant of the staple), 

whereas they import more parboiled 

rice which in consideration 

of their population can 

last them for a decade, yet their 

imports continue to rise yearly. 

Data provided to BusinessDay 

by a source preferring anonymity, 

showed that Benin republic 

with an estimated population 

of 11 million people, imported 

609,893 metric tonnes of parboiled 

rice from India in 2017, 

while Niger, with an estimated 

population of 21 million people, 

imported 98,179 metric tonnes, 

and curiously, Nigeria, with a 

population of 186 million imported 

8,726 metric tonnes. 

Also, data by the Thai Rice 

Exporters Association shows 

that Benin Republic’s imports 

from Thailand from January to 

November 2017 stood at 1.64 

million metric tonnes, a 32 percent 

increase from 1.24 million 

metric tonnes within the same 

period in 2016, and an increment 

of 104.45 percent from 805,765 

metric tonnes exported to Benin 

republic in 2015. Cameroun also 

imported 663, 667 metric tonnes 

of parboiled rice from Thailand 

between January and November 

remaining percentage. 

“The cocoa pods are bigger 

and better now than that of last 

year because of the early rainfall. 

This will increase our 2018 

midcrop output. Last year, the 

late rainfall affected our output 

but this year it has been very 

different,” Robo Adhuze, chief 

operating officer, Centre for 

Cocoa Development Initiative 

2017, a 47.64 percent increase 

from 449, 513 within the same 

period in 2016, and 449, 297 

metric tonnes in 2015. 

“Rice has been on technical 

ban before,” said Tunji Owoeye, 

managing director, Elephant 

Group Plc, who was previously 

the chairman of Nigeria’s rice 

importers association. 

“This is not new and has been 

part of the medium term plan. 

And in any case, since the inauguration 

of this administration, 

there haven’t been rice imports.” 

This seems to be normal trend 

as in the past administration as 

the Goodluck Jonathan government 

vowed to end importation 

of rice before the end of his 

tenure in 2015, saying the attainment 

of self-sufficiency in rice 

production by Nigeria was a top 

priority of his administration. 

“It is pure politics. The same 

thing that happened during Jonathan 

administration is what is 

happening now. They have their 

political reasons (rice cartels).If 

the present administration implements 

this policy, their opponents 

from other political parties may 

get the money that the rice cartels 

are offering,” Africanfarmer 

Mogaji, CEO, X-Ray Farms, said. 

told BusinessDay in a telephone 

interview. 

“Farmers are very happy 

with the development. Also, the 

prices are better than that of last 

year,” Adhuze said. 

Nigeria has lost its position 

in the comity of cocoa producing 

nations when its production 

declined from 240,000MT in 

2014/2015 season to 190,000MT 

More details of MTN... 


bank to form a partnership on 

mobile banking across Africa. 

MTN plans to list its Nigerian 

unit on the Premium Board of the 

Nigerian Stock Exchange (NSE) 

which has firm’s likes of Dangote 

Cement Plc, Zenith Bank Plc and 

FBN Holdings Plc. 

Standard Bank Group Limited 

and Citigroup Incorporated 

had been advising Africa’s largest 

mobile-phone company on the 

disposal of as much as 30 percent 

of the Nigerian unit. 

MTN Group also plans extensive 

local marketing to target 

Nigerian investors as part of a retail 

offer and institutional book-build, 

which may also involve selected 

international institutions. 

MTN Group agreed to list the 

Nigerian unit on the Nigerian Stock 

Exchange this year as part of a June 

2016 agreement to pay a $1 billion 

fine for missing a deadline to disconnect 

unregistered subscribers 

amid a security crackdown. 

Gbenga Oyebode, a renowned 

lawyer and boardroom guru was 

also appointed chairman of the 

board committee on MTN floatation. 

MTN Group said in a note preceding 

its recently released financials 

for the year ended December 

31, 2017 that the application to the 

Nigerian Stock Exchange (NSE) 

will commence in due course and 

“management has already initiated 

its Corporate Governance Rating 

Scoring with the NSE with a view to 

listing on the NSE’s Premium Board.” 

The Nigerian stock market rose 


in 2015/2016 season, pushing 

the country to seventh position 

globally. 

Farmers across the country’s 

main producing states are very 

optimistic that Nigeria’s production 

will increase at the end of 

the 2017/2018 season but are 

worried about the adulteration 

of agro chemicals in the country. 

“I am optimistic that my output 

this year will be higher. The 

weather has been favourable, 

the rains have started early and 

this is a sign of good harvest. But 

what we require now is chemicals 

to handle the issue of pest and 

diseases which are more common 

in wet season. This might 

be a major challenge to us, as 

most of the agro chemicals in the 

country are fake and adulterated,” 

Hakeem Adebisi, a cocoa farmer 

in Ajebandele in Ondo State. 

“Currently, we sell a kilogram 

of cocoa for N650 at the farmgate. 

While a metric ton is sold 

between N650, 000 to N680,000 

depending on your bargaining 

ability,” Adebisi said. 

In the international market, on 

year-on-year basis, global average 

price of cocoa has increased 

by 26 percent from $1961 per 

metric ton in April 2017 to $2462 

per ton in April 2018, according 

to data from the International 

Cocoa Organisation (ICO).


5

6 BUSINESS DAY C002D5556 

NEWS 

Obaseki, Indonesian President, others tackle 

barriers to sustainable trans-continental trade 

Governor of Edo State, 

Godwin Obaseki, 

the President of Indonesia, 

Joko Widodo, 

coordinating minister for 

Maritime Affairs, in Indonesia, 

Luhut Pandjaitan, and 

president/CEO, PT Pertamina 

(Persero), Elia Massa Manik, 

on Tuesday, at the ongoing Africa 

Indonesia Forum in Bali, 

highlighted the barriers to sustainable 

trade between Africa 

and Asian country and proffered 

home-grown solutions 

to the challenges. 

With the theme: “Developing 

sustainable Trade and 

Investment Cooperation Between 

Indonesia and Africa,” 

the panel session, moderated 

by director, Standard Chartered 

Bank, Anthonia Okoh, 

focused on agriculture, technical 

cooperation, financing, 

strategic industries, manufacturing 

and digital economy. 

Sharing the Edo State experience, 

Obaseki told his 

co-panellists and participants 

the successes being recorded 

through reforms in critical 

government institutions, such 

as the creation of an Edo Geographic 

Information Service 

Agency to create a land data 

bank, the repositioning of the 

Ministry of Physical Planning 

and Urban Development and 

the synergy between the state 

and the Royal Majesty, the 

Oba of Benin, Oba Ewuare II, 

to remove the encumbrances 

in land acquisition, a major 

factor of production. 

“Our land reforms are 

yielding positive results as 

more investors have expressed 

their desire to set up factories 

in Edo State. We have 

strengthened the institutional 

framework for physical development 

management in 

the state and a few days ago, I 

gave a directive to the Ministry 

of Physical Planning and Urban 

Development to ensure a 

48-hour turnaround time for 

approval of building plans in 

the state, within the next six 

months. 

“We have also tasked the 

Edo State Geographic Information 

Service Agency 

to ensure that Certificates 

of Occupancy (C of O) and 

Rights of Occupancy (R of 

O) are issued to applicants 

within thirty (30), days of application,” 

the governor said. 

He assured the Asian 

investors of his administration’s 

commitment to an 

investment-friendly climate 

that has supported the best 

oil palm companies in Nigeria 

and called on investors 

to leverage on the growing 

positive socio-economic 

outlook of Edo State. 

“Both Okomu Oil and 

Presco plc have embarked 

on very ambitious projects 

to expand their plantations 

in the state, and are currently 

doing well in the Stock 

Market. These achievements 

are tied to the friendly investment 

climate we have 

created for businesses in our 

state, and with the Benin Industrial 

Park, the Gelegele 

Seaport, the Benin Modular 

Refinery and our robust 

bouquet of agricultural programmes, 

Edo is indeed, the 

best place to invest,” he said. 

Welcoming participants 

to the event, the Indonesian 

President, stressed the gains 

inherent in extensive relations 

between his country 

and Africa. 

With its vast and abundant 

fertile soil, Indonesia is 

a major global key producer 

of a wide variety of tropical 

agricultural products. Palm 

oil is particularly important 

to Indonesia, as the country 

is the world’s biggest producer 

of the commodity, 

providing about half of the 

world’s supply. 

For Africa, agriculture accounts 

for up to 60 percent 

of all jobs on the continent 

and more than 50 per cent 

of GDP in many African 

countries. In this sense, discussion 

on sustainable and 

holistic agriculture management 

is crucial for both 

sides’ economic and social 

benefits, the organisers said. 

On financing, the organisers 

of the event explained that 

“financing is one of the key 

components in trade and investment 

cooperation, Indonesia 

continuously explores 

innovative ways to strengthen 

economic relations with African 

countries. One example is 

that since 2015, Indonesia has 

been implementing the National 

Interest Account (NIA) 

program to boost Indonesia’s 

trade and investment, particularly 

to untapped markets, 

including Africa. 



7

8 

BUSINESS DAY 

C002D5556 



9



C002D5556 

COMMENT 

SMALL BUSINESS HANDBOOK 

comment is free 

Send 800word comments to comment@businessdayonline.com 

Corporate governance and the promise of SME 

EMEKA OSUJI 

Dr Emeka Osuji 

School of Management and 

Social Sciences 

Pan Atlantic University 

Lagos. eosuji@pau.edu.ng @Emyosuji 

Small and Medium Enterprises 

(SMEs) are very 

simple organizations. Their 

operating systems and 

management processes 

are not as complicated as those of 

big corporates. Sometimes, this 

simple nature of the management 

and systems of SMEs makes some 

think that corporate governance is 

something for every other entity but 

the SMEs. It is sometimes also felt 

that the costs and time required to do 

the right things in corporate governance 

are too high for SMEs. And the 

biggest culprits in this line of thinking 

are actually the SMEs themselves. 

They often wonder what corporate 

governance has to do with a small, 

especially family business in which, 

quite often, the difference between 

the owner and the business is highly 

blurred. That feeling is not hard to 

appreciate if we recognize that over 

99 per cent of the 37 million SMEs 

in the country in 2013, was of the 

microenterprise category – mostly 

unregistered sole traders. The truth 

however is that good corporate governance 

is as important to an SME 

as it is to the mega corporation, 

scale differences notwithstanding. 

The only difference is that big 

corporates may require to go the 

full scale small enterprises find the 

critical minimum that is good for 

their survival. 

Corporate governance has to do 

with the system of management and 

control established in a company. 

These relate to the proper management 

of the enterprise including 

the relationship among members, 

the board and stakeholders as well 

as the company and its publics, 

including creditors and customers. 

It is also concerned with internal 

control processes. Effective corporate 

governance framework will 

promote internal discipline, accountability 

and transparency. No 

matter how small a company may 

be, corporate governance should 

be taken seriously. The lack of it is 

one of the reasons funding often 

eludes SMEs. Lenders are not just 

looking for companies with strong 

cash flows, they are also interested 

in the structure of a company. This 

includes how company leadership 

relates to the board, observes laid 

down procedures and promotes 

accountability. These elements are 

more likely to found where good 

corporate governance is a priority. 

Therefore, proper corporate governance 

is essential in resolving the 

funding challenges faced by SMEs. 

This has implications for the growth 

of these small businesses and their 

ability to contribute their quota to 

We do not in any way 

suggest that SMEs should 

implement the full range 

of corporate governance 

regulations applicable to 

big corporates. However, we 

insist that they adopt and 

implement basic governance 

rules that are not just 

appropriate but also take 

account of their size, level 

and stage of growth and 

sophistication 

the development of the country. Good 

corporate governance is the first sign 

of a well-managed enterprise because 

it presupposes the existence of proper 

systems and controls that ensure accountability 

and transparency. 

Companies may grow without 

structures but growth may be unsustainable 

without structures. It 

is the structures in an organization 

that support attempts to scale up operations 

in response to growth. Part of 

effective corporate governance is the 

proper delineation of duties, which is 

very important not just to directors, 

managers and shareholders but also 

to funding sources, such as banks 

and other categories of fund providers. 

A clear understanding of roles 

is important for all classes of SMEs, 

including owner-managed institutions. 

By reducing the potential for 

conflict, it improves trust and loyalty, 

helping management to focus on its 

corporate objectives. These elements 

are important ingredients for the attainment 

of the goals of SMEs as the 

engine of economic growth, agents 

of high employment and politicalsocial 

stability in a country. 

Strategic planning and such 

forward-looking plans benefit immensely 

form good corporate governance. 

When boards meet regularly 

and interact intensely with management, 

they are able to marshal out 

proper direction for an entity. This is 

even more so effective when boards 

contain independent directors who 

can tell it as it is. Unfortunately, 

independent directorship has not 

gained the relevance it deserves as a 

check on board-capture of companies 

in Nigeria. However, properly 

selected independent directors bring 

extremely high value to organization 

though their dispassionate and honest 

contributions to board decisions 

not tainted with vested interest. They 

provide the SME with additional 

skills, more balanced and objective 

views on all issues, thereby bringing 

improved transparency and objectivity 

in management decisions. 

We do not in any way suggest 

that SMEs should implement the 

full range of corporate governance 

regulations applicable to big corporates. 

However, we insist that 

they adopt and implement basic 

governance rules that are not just 

appropriate but also take account of 

their size, level and stage of growth 

and sophistication. An effective 

governance strategy does certain 

basic things for an entity: it helps to 

identify and manage risk; promotes 

innovative thinking and new product 

development and enhances organizational 

reputation. No company is 

too small to implement some modicum 

of corporate governance best 

practice, because all organizations 

need leadership harmony, which 

begins with clear and publicised 

roles for the board, and channels 

of delegated authority, including 

delegated authority to commit the 

company in expenditure. Wellgoverned 

enterprises have properly 

held and managed board meetings 

where such critical issues as the 

budget and financing are discussed, 

documented and strategies for effective 

monitoring are elaborated. 

Companies, big and small are 

in business to create value for the 

shareholders. This happens through 

effective market development, risk 

recognition and management, including 

effective disaster recovery 

and continuity plans that ultimately 

positively impact growth. Appropriate 

levels of good corporate 

governance suited to a company’s 

stage of growth enhances corporate 

reputation and patronage. Here lies 

the colour of the bottom-line at the 

end of the day. 

Send reactions to: 

comment@businessdayonline.com 

NONSO OBIKILI 

Dr Nonso Obikili earned his Ph.D. in 

economics from Binghamton University 

in 2013. He is also a research associate 

at Economic Research Southern Africa 

and Stellenbosch University. He blogs at 

nonsoobikili.wordpress.com and tweets 

at @nonso2. 

Air travel in Africa can be 

notoriously difficult relative 

to most other parts of the 

world. Tickets are significantly 

more costly for similar flight 

times and distances. The historical 

reasons for this air travel difficulty 

in Africa are numerous. From governments 

which restricted market 

access for private participation while 

trying to protect inefficient state-run 

airlines, to the requirement for difficult 

and costly agreements to expand 

to new destinations. The difficulty in 

air travel also has other unforeseen 

costs most notably in reduced links 

between countries, lost trade and investment, 

reduced tourism, and the 

associated jobs that are not created. 

Notwithstanding these challenges, 

the continent is witnessing 

a steady growth in its air traffic. According 

to the 2017 passenger traffic 

results released by International Air 

Transport Association (IATA) in 

February, African traffic rose by 7.5 

percent compared to 2016. Given 

the rise in air passenger traffic, it 

will be short-sighted for airports 

to rely solely on income from airport 

charges. Lower airfare can be 

achieved if they paid more attention 

to what in aviation economics is 

Thinking about aviation infrastructure in Africa 

known as non-aeronautical assets 

i.e. income from retail, car parks, 

hotels etc. Sectors such as tourism 

and hospitality would also benefit. 

A 2012 report about South African 

airports gives real life meaning 

to this submission. The report 

reveals that in 2010/11, non-aeronautical 

revenue grew by 22 percent 

to $185 billion, close to half of total 

revenue generated by the country’s 

aviation industry. 

The challenges of interconnecting 

flights and opportunities in nonaeronautical 

revenue, are not news 

to many governments. Over the last 

few years there have been renewed 

efforts to change the fortunes in Africa’s 

airports through concessions 

and public-private partnerships. 

These efforts would be a win-win 

situation at best. 

If the passenger numbers rise, 

necessary investments will need to 

be made to expand and improve 

Africa’s air transport infrastructure. 

This will require investments not 

just from governments but from the 

private sector as well. 

It is in this context that the Airports 

Council International (ACI) 

Africa hosts its annual conference. 

This year’s conference is 

appropriately themed “Business 

Transformation and Sustainable 

Development of African Airports” 

and amongst other things hopes 

to tackle key questions with regards 

to investment, safety, and 

environmental concerns around air 

infrastructure. 

Mind you, one key factor behind 

the higher costs of tickets in Africa is 

the relatively small number of passengers, 

the costs of airport infrastructure, 

and the difficulty in attracting long 

term private sector investment. 

Indeed, if a few passengers have 

to indirectly pay for infrastructure 

built using short term financing then 

the burden can get quite large given 

that more of the costs will need to be 

included up front in ticket prices. For 

instance, a $250m airport terminal 

which handles one million passengers 

a year and is financed with a tenyear 

facility that charges eight percent 

per year will result in an added cost of 

about $36 per ticket for the financing 

repayments alone. Increasing the 

facility to twenty years reduces the 

impact per ticket to about $25 per 

passenger even at the same interest 

rates. This will of course reduce ticket 

prices which should positively influence 

passenger numbers, triggering a 

virtuous cycle. 

The key strategy for private sector 

investment therefore, involves 

lengthening the financing terms for 

airport infrastructure. Longer term 

financing implies lower ticket costs as 

infrastructure costs are more spread 

out. Accessing long-term financing 

will however require institutional 

arrangements to deal with the risks 

involved. Extra financing options 

outside of ticket prices also play a 

vital role in airport infrastructure 

financing. 

That is why issues on business 

partnerships aimed at improving 

extant services or creating new revenue 

facilities and resources would 

take the centre stage at the ACI 2018 

conference. It is hoped that experts 

and investors meeting at the event 

would also look critically at the different 

roles that partners can play 

in the transformation and development 

of the industry through business 

innovation in airport retail and 

other such avenues. 

Of course, earlier versions of 

such meetings have yielded desired 

fruits, producing some of the current 

growth experienced in the industry, 

while creating enabling environments 

for consolidation. Before the 

issues of investments, safety standards 

and environmental concerns 

had been focus of deliberations, 

especially as they interface with 

infrastructure. 

As a direct gain from previous 

ACI conferences, Africa has made 

significant strides in improving its 

safety record with regards to aviation. 

For instance, in 2016 there were 

no fatal accidents in sub-Saharan 

Africa according to the International 

Civil Aviation Organization (ICAO), 

the region’s best performance in a 

decade. Certainly, there is still room 

for improvement. As passenger 

numbers increase, continued special 

attention will have to be paid 

to maintaining and improving the 

safety records in African aviation. 

I will be watching out for the 

panel discussion on tax-free shopping 

which is the first source of 

non-aeronautical revenue in most 

airports around the world. It is a 

problematic issue as its future is 

uncertain in many airports given the 

new national and regional regulations 

such as the ban on the sale of 

cigarettes, and alcohol or the limitation 

of transport of purchases by air 

carriers. 

I’ll very much like to see how 

the panellists - Keith Spinks, Secretary 

General, The European Travel 

Retail Confederation and Mr SherifToulan, 

Chief Executive Officer, 

International Duty-Free Trading & 

Agencies - would approach the topic 

in the light of the present situation 

and the future outlook of airport tax 

free shopping which continues to be 

one of the best supports for airports 

sustainability. 

The conference will hold in Lagos 

from the 14th to the 20th of April at 

the Lagos Oriental Hotel and will 

hopefully result in ideas and solutions 

for providing aviation infrastructure 

for an expanding African 

aviation sector. 


comment@businessdayonline.com


COMMENT 

C002D5556 

BUSINESS DAY 11 

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Forensic accounting practice in Nigeria: Beyond mediocrity 

OMAGBITSE BARROW FCA 

Francis Kehinde Emeni (PhD) 

Emeni is associate professor, Department 

of Accounting, University of 

Benin & research fellow, Institute of 

Chartered Accountants of Nigeria 

(ICAN). 

Given the prevalence 

of corruption 

in Nigeria, 

there is the need 

to thoroughly 

understand forensic accounting 

in our national life. “Forensic” 

is the application 

of scientific methods and 

techniques to the investigation 

of crime, and provision 

of evidence for use in a court 

of law. Therefore, forensic 

accounting can be said to 

be a specialty practice area 

of accounting that describes 

engagements that result from 

actual or anticipated disputes 

or litigation. You cannot fight 

crime successfully without 

the help of forensic accountants. 

In the United States of 

America, the term “forensic 

accountants” is generally 

used for Certified Public Accountants 

(CPA). For you to 

be a forensic accountant, 

you must be a member of the 

only chartered accounting 

body in the USA known as 

Certified Public Accountants. 

Just as you can’t just 

graduate from the medical 

school and claim to be a surgeon 

but must first undergo 

professional training in the 

area of interest, likewise you 

can’t just jump from being 

a graduate of accounting to 

being a forensic accountant 

– otherwise it will only 

breed mediocrity. Forensic 

accounting is a specialty 

area in accounting. All big 4 

accounting firms (PricewaterhouseCoopers, 

Ernst & 

Young, Deloitte, KPMG) have 

departments for forensic accounting 

and investigations. 

Those who join these departments 

come from Chartered 

Institute of Accountants 

created by their respective 

countries and recognized by 

the International Federation 

of Accountants (IFAC). 

Aligning my thought with 

that of Bozkurt (2000), in 

Nigeria, the main important 

law enforcement agencies 

involved directly in combating 

white-collar crimes 

are the Police Special Fraud 

Unit, EFCC and ICPC. I am 

not sure these law enforcement 

agencies do train their 

investigators in the specialized 

usage of forensic 

accounting. On the other 

The point I am making is that 

if we allow mediocrity in the 

accounting profession, in this 

case forensic accounting, and 

make it just a means of earning 

money and social prominence, 

we will slowly destroy what ICAN 

was meant to do 

hand, if we look at the western 

countries, particularly 

the USA, the law enforcement 

agencies like FBI and CIA have 

properly marshalled their pool 

of special agents with forensic 

accounting backgrounds, 

who are the backbone of their 

financial crimes squad. They 

investigate with professional 

acumen complex financial 

crimes like money laundering, 

cyber crimes, financial 

institution fraud and other 

economic crimes. In our own 

little way, Nigeria has enacted 

an Act of parliament setting 

up the Institute of Chartered 

Accountants of Nigeria (ICAN) 

which is producing highlytrained 

forensic accountants 

just as we have in Canada (Institute 

of Chartered Accountants) 

and UK (ACCA, ICAEW). 

The point I am making is 

that if we allow mediocrity 

in the accounting profession, 

in this case forensic accounting, 

and make it just a means 

of earning money and social 

prominence, we will slowly 

destroy what ICAN was meant 

to do. Idealism and patriotism 

have now become suspect 

words and the fault lies somewhere 

in the cynical attitude 

non-chartered accountants 

now seem to encourage in the 

accounting profession. 

So, here is raising my cup 

against any before the National 

Assembly seeking to 

proliferate the accounting 

profession in the country. 

May mediocrity not be enshrined 

in the constitution 

of Nigeria via Bills sponsored 

in the National Assembly 

promoting proliferation of 

the accounting profession in 

the country. Unfortunately, a 

look at proliferation of the accounting 

profession creates 

tasteless and voyeuristic glee 

with which unpatriotic Nigerians 

and their accomplices 

are feasting on the accounting 

profession. 

The Institute of Chartered 

Accountants of Nigeria, established 

by an Act of Parliament 

in 1965, as expected, 

has forensic, audit and investigating 

faculty. ICAN 

registers, trains and issues 

certificates to qualified members. 

Forensic accountants 

trained by the Institute are 

awarded Certified Forensic 

Accountants of Nigeria 

(CFAN) certificates. It should 

be noted that only chartered 

accountants are qualified to 

be forensic and investigative 

auditors. The reason a 

forensic accountant must 

first be a chartered account- 

ant is simply that, as earlier 

stated, forensic accounting 

is a specialized area in accounting. 

The forensic accounting 

investigation poses 

substantial risk. For example, 

a forensic accountant that 

lacks the rudiments of accounting 

and professional 

experience that can be obtained 

from the Institute of 

Chartered Accountants can 

destroy an organization and 

even compound the social 

and economic problems in a 

country. 

Given the prevalence of 

corrupt practices in mostly 

developing economies, having 

forensic accountants is 

highly desirable, but this 

should not be seen as an 

opportunity to be fishing on 

Nigerians under the guise of 

promoting Bills to duplicate 

forensic accounting practice. 

There is no need to duplicate 

efforts mostly on the altar of 

mediocrity. Nigeria must always 

come first before selfish 

interests. The genuine professionalism 

of ICAN, the Association 

of National Accountants 

of Nigeria, the big 4 audit 

firms and the International 

Federation of Accountants 

must be sustained. Nigeria 

must remain great without 

dilution of excellence in our 

professional life. 


comment@businessdayonline.com 

IZUKA NKEONYE 

Dr Nkeonye is a wellness physician 

@ Dennis Ashley Wellness Clinic. 

In these days of economic 

hardship and 

turmoil, turning 

things around is more 

likely to happen with a 

healthy population. Wellness 

according to the World 

Health Organization “…. is a 

state of complete physical, 

mental, and social wellbeing, 

and not merely the 

absence of disease or infirmity.” 

Another definition 

which we can relate to in 

the Nigerian sense, put forward 

by Alex Jadad, is the 

ability to adapt and selfmanage 

when individual 

communities face physical, 

mental or social challenges. 

Wellness in its true sense is 

an on-going process, a way 

of life. 

The question is: how do 

Nigerians stay well? For 

all classes of Nigerians, it 

Wellness in a nutshell 

pays to eat balanced meals, 

each day. A balanced diet 

is one that cuts across 

all food classes. The less 

processed it is, the better. 

It should have a complex 

carbohydrate like yam or 

brown rice, some protein 

like beans, fats like red oil, 

in small quantity. One can 

now have some oranges or 

any other fruit after that 

meal, which adds to fibre 

content the body would 

need. Making healthy food 

choices is important because 

it can lower one’s 

risk of heart disease, some 

types of cancer, and it will 

contribute to maintaining 

a healthy weight. 

The next step in keeping 

well is drinking lots 

of water. The body is 70% 

water and needs water for 

its processes. Water in prepared 

food, vegetables and 

fruits count as well. 

The third step is exercising. 

This helps in maintaining 

fitness, weight control 

and boosting wellness including 

boosting the individual’s 

mood. If there’s a 

challenge with going to the 

gym, one can turn his/her 

daily activities into exercises. 

For instance, executives 

can ditch the lift and take 

the stairs, they could take 

brisk walks in their neighbourhood, 

and they could 

get involved in a substantial 

amount of house chores. 

The fourth step is having 

adequate sleep. The average 

sleep duration for adults 

aged 18 to 64 should be 7 

to 9 hours per night. Due 

to the huge role sleep has 

on regulating a lot of the 

body’s processes, chronic 

sleep insufficiency leads to 

weight gain or loss, reduced 

immunity and increased risk 

for hypertension and cancer. 

The fifth step is keeping 

a positive mental health. 

The benefits of this ensures 

one realizes his/her 

full potential, copes well 

with life stresses, increases 

work productivity and contributes 

meaningfully to 

society. 

Some of the steps already 

mentioned above are essential 

in achieving this 

goal. Others are connecting 

with others, staying positive, 

helping others and 

developing coping skills. 

Please seek help from your 

doctor or psyche specialist 

if you suffer from or experience 

any of the following: 

substance or alcohol 

abuse, having low or no 

energy, withdrawing from 

people and usual activities, 

experiencing severe 

mood swings that cause 

problems in your relationships, 

thinking of harming 

yourself or others, inability 

to perform daily tasks like 

taking care of your kids or 

getting to work or school 

amongst others. 

The last but not the least 

is having regular health 

checks. Usually these 

checks are based on complaints 

the individual may 

have in addition to evaluating 

risks for certain diseases. 

This evaluation is 

based on the individual’s 

age, lifestyle and family 

history. 

Every Nigerian is encouraged 

to adopt these 

practices gradually, until it 

becomes a lifestyle. This is 

wellness in a nutshell. 


comment@businessdayonline.com

12 


BUSINESS DAY 

C002D5556 

EDITORIAL 

PUBLISHER/CEO 

Frank Aigbogun 

Ending herdsmen-farmer conflict is a national priority 

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 

While the deadly 

clashes between 

herdsmen and 

farmers continue 

to escalate 

around the country and especially 

in the North-Central states, the 

government continues to pretend 

to be helpless in resolving the problem. 

But the necessity of resolving 

the conflict is even more urgent 

as the conflicts threaten not only 

food and agriculture security, but 

the unity, peaceful coexistence and 

harmony of the country. 

There have been several studies 

carried out on how to permanently 

resolve these conflicts. Some of 

these reports were commissioned 

by successive governments while 

some have been produced by 

independent groups. One of such 

non-commissioned report is one 

done by the International Crisis 

Group, a transnational non-profit, 

non-governmental organization 

that carries out field research on 

violent conflicts and advances 

policies to prevent, mitigate or resolve 

them, has done a good job of 

tracing the root causes, evolution, 

impact and implications of these 

conflicts as well as recommending 

measures to end them. The report, 

‘Herders against Farmers: Nigeria’s 

Expanding Deadly Conflict’, 

produced in September 2017, “is 

based on interviews conducted in 

September 2016 and July 2017 with 

a range of actors and stakeholders, 

including leaders and representatives 

of pastoralist and farmer organisations, 

officials of federal and 

state governments, security officers, 

leaders of civil society organisations 

and local vigilante groups, as well as 

victims of the violence in Adamawa, 

Benue, Borno, Ekiti, Enugu, Kaduna 

and Nasarawa states”. 

Regarding the principal causes 

and aggravating factors behind 

the escalating conflicts, the Group 

identifies climatic changes (frequent 

droughts and desertification); 

population growth (loss of northern 

grazing lands to the expansion of human 

settlements); technological and 

economic changes (new livestock 

and farming practices); crime (rural 

banditry and cattle rustling); political 

and ethnic strife (intensified by the 

spread of illicit firearms); and cultural 

changes (the collapse of traditional 

conflict management mechanisms), 

but also a dysfunctional legal 

regime that has allowed crime to go 

unpunished and, consequently, has 

encouraged both farmers and herders 

to take laws into their own hands. 

To resolve these conflicts, the 

International Crisis Group suggests 

five steps which include, in the short 

term: 

“Strengthen security arrangements 

for herders and farming communities 

especially in the northcentral 

zone: this will require that 

governments and security agencies 

sustain campaigns against cattle 

rustling and rural banditry; improve 

early-warning systems; maintain 

operational readiness of rural-based 

police and other security units; 

encourage communication and 

collaboration with local authorities; 

and tighten control of production, 

circulation and possession of 

illicit firearms and ammunition, 

especially automatic rifles, including 

by strengthening cross-border cooperation 

with neighbouring countries’ 

security forces; 

“Establish or strengthen conflict 

mediation, resolution, reconciliation 

and peacebuilding mechanisms: 

this should be done at state and local 

government levels, and also within 

rural communities particularly in 

areas that have been most affected by 

conflict;“Establish grazing reserves 

in consenting states and improve 

livestock production and management 

in order to minimise contacts 

and friction between herders and 

farmers: this will entail developing 

grazing reserves in the ten northern 

states where governments have 

already earmarked lands for this purpose; 

formulating and implementing 

the ten-year National Ranch Development 

Plan proposed by a stakeholders 

forum facilitated by the UN 

Food and Agriculture Organization 

(FAO) in April 2017; and encouraging 

livestock producers’ buy-in through 

easier access to credit from financial 

institutions.” 

In the longer term, it suggests 

the federal and state governments 

should consider the following: 

“Address environmental factors 

that are driving herders’ migration 

to the south: this will require stepping 

up implementation of programs 

under the Great Green Wall Initiative 

for the Sahara and the Sahel, a trans- 

African project designed to restore 

drought-and-desert degraded environments 

and livelihoods including 

in Nigeria’s far northern belt; and 

developing strategies for mitigating 

climate change impact in the far 

northern states; 

“Coordinate with neighbours 

to stem cross-border movement of 

non-Nigerian armed herders: Nigeria 

should work with Cameroon, Chad 

and Niger (the Lake Chad basin 

countries) to regulate movements 

across borders, particularly of cattle 

rustlers, armed herders and others 

that have been identified as aggravating 

internal tension and insecurity 

in Nigeria.” 

These recommendations contain 

no ambiguity. The government 

should put them in a basket, together 

with other such recommendations, 

like the report of the Gabriel Suswamled 

Committee on Grazing Reserves 

set up by former President Goodluck 

Jonathan’s government in April 2014, 

and even by committees set up by the 

Buhari government, weigh them, 

sieve the chaff and implement the 

substance. 

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 

Charles Anudu 

Tunji Adegbesan 

Eyo Ekpo 

ENQUIRIES 

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www.businessdayonline.com


COMPANIES 

& MARKETS 

Company news analysis and insight 

BUSINESS DAY 13 

FCMB Opens Flexx Hub at 

LASPOTECH, Hands-over 

Reconstructed School Gate 

Pg. 14 

Lafarge Africa’s alarming leverage 

responsible for first loss in 5 years 

BALA AUGIE 

lion, which represents a 

145.05 percent surge from 

N104.70 billion it incurred 

the previous year. 

Lafarge Africa is making 

frantic efforts toward 

reducing financial leverage 

as it plans to raise N131.97 

billion in rights issue to 

refinance debt and fund its 

expansion plans. 

Analysts at Cordros Capital 

have reiterated their 

SELL rating on the stocks 

of the cement maker as they 

expect investors to react to 

the delayed results. 

Cost of sales ratio stood 

at 83.03 percent in the period 

under review, the highest 

in five years since Business- 

Day started compiling data. 

Cost of sales increased by 

38.72 percent to N248.78 

billion in the period under 

review. 

This means the company 

is spending more on input 

cost to produce each unit 

of product. 

The surge in cost of sales 

or production cost was due 

to a N19.20 billion impairment 

of property plant and 

equipment incurred in the 

fourth quarter of the year 

A breakdown of the PPE 

shows the sum of N12.4 

billion involves cost of 

the evacuation road under 

construction at UNICEM 

and N3.3 billion cost of 

ASHAKACEM kiln preheater 

project, according 

to notes to the financial 

statement. 

Because PPE is a one off 

event that is not expected to 

recur, Lafarge Africa could 

see an improvement in cost 

of sales ratio. 

Gross profit margin, a 

measure of efficiency, fell to 

16.96 percent in December 

2017 from 18.50 percent 

Lafarge Africa Plc 

is grappling with 

spiralling cost of 

production as 

rising interest on 

borrowing wiped out all 

of earnings, leaving the 

cement maker in a loss 

position. 

For the year ended December 

2017, Lafarge Africa’s 

posted a loss after 

tax of N34.60 billon from 

a profit position of N16.89 

billion the previous year, the 

worst results in five years 

since BusinessDay started 

compiling data. 

A N43.02 billion finance 

costs or interest expense in 

the income statement in 

the period under review 

swallowed all of operating 

profit of N7.88 billion, 

which inevitable resulted 

in the loss. 

It is glaring that Lafarge 

Africa is exposed to financial 

risk as its debt pile 

has resulted in increased 

interest payment hence 

suppressing bottom line 

(profit). Consequently, risk 

of stockholders return is 

increased. 

Times interest coverage 

is 0.18 times operating 

profit in the period under 

review, which means the 

cement maker’s ability to 

meet interest expenses are 

questionable. 

The margin of safety for 

times coverage ratio is 1.50 

times, a figure lower than 

this signals amber light. 

Total debt in the balance 

sheet stood at N256.54 bilas 

at December 2017. A 

higher ratio means a firm is 

efficient. 

Sales moved increased 

by 36.13 percent to N299.15 

billion in the period under 

review to N219.74 billon as 

at December 2017. 

Lafarge Africa shares 

have gained 2 percent, underperforming 

the NSE ASI 

Index. 

Foreign reserve may hit $50bn by year end — CBN 

The Governor of 

the Central Bank 

of Nigeria (CBN), 

Godwin Emefiele, 

on Monday expressed optimism 

that the nation’s 

foreign reserves would grow 

to 50 billion dollars before 

the end of the year. 

Emefiele said this at the 

25th Seminar for finance 

correspondents and business 

editors with the theme: 

“Sustaining Economic 

Growth Beyond Recession”, 

in Uyo. 

Emefiele, represented by 

Mr Edward Adamu, Deputy 

Governor, Corporate Services, 

said the reserves would 

continue to grow following 

the recent accretion the nation 

had recorded. 

He said that the economic 

recovery would 

consolidate as the sentiments 

improved in the 

macro economy and supported 

by proactive monetary, 

trade, industrial and 

fiscal policies. 

The governor also said 

the apex bank expected a 

continued uptick in Gross 

Domestic Product (GDP) 

growth with a positive spillover 

to improved unemployment 

rate. 

On the foreign exchange 

market, he said the rate stability 

would continue. 

“As we entrench and 

sustain the transparency 

in the FX market, as foreign 

FX reserves accretion 

continues, market 

confidence and improved 

sentiments remain. 

“We expect that the exchange 

rate will not only 

be stable but would begin 

to appreciate against major 

currencies. 

“The adverse competitiveness 

outcome which 

such appreciation may entail 

will be adequately mitigated 

by proactive policies 

to ensure that our balance 

of payments position is not 

undermined.” 

According to him, there 

is also need for strong policy 

coordination. 

“Finally, we expect a redoubling 

of strong policy 

coordination, collaboration 

and cooperation which 

flourished during the very 

difficult times,” he added. 

He said that the need was 

greater now than ever for a 

robust policy coordination 

between the key aspects 

of economic policymak- 

ing space to sustain the 

recovery. 

This, he said, would include 

fiscal, monetary, exchange 

and trade policies, 

which must be targeted at 

protecting farmers to boost 

agricultural outputs and 

support local companies. 

Emefiele said it would 

also enhance manufacturing 

and industrial capacities, 

to diversify the economy 

away from oil and fossil 

fuels.

14 

BUSINESS DAY 

COMPANIES & MARKETS 

C002D5556 


FCMB Opens Flexx Hub at LASPOTECH, 

Hands-over Reconstructed School Gate 

First City Monument 

Bank (FCMB) has 

deepened its youths 

empowerment and 

development drive by 

opening a Flexx Hub, specially 

designed automated branches 

to cater for the banking needs 

of students on campuses, at the 

Lagos State Polytechnic (LASPO- 

TECH), Ikorodu on April 9, 2018. 

In addition, the Bank has handed 

over the main gate of the institution 

which it reconstructed 

as part of its Corporate Social 

Responsibility (CSR) initiatives 

to the management of the school. 

The FCMB Flexx Hub also 

serves as anexclusive banking 

arena where basic banking 

transactions can be carried out 

by the Bank’s customers who 

hold its youth account, known 

as Flexx. This is the fourth of such 

structure to be unveiled by FCMB 

in Nigeria and will further solidify 

its existing relationship with the 

youth segment in a sustainable 

manner. 

It is one of the innovations 

of the financial institution to 

simplify banking services and 

Okechukwu Enelamah, 

minister for 

industry, trade and 

investment, is expected 

to lead discussion at 

the Redeemer’s Men’s Fellowship, 

Region 19 Men’s 

Conference. 

The theme of the conference 

is, ‘The Nigeria Dream 

Beyond Oil’ and will take 

place at RCCG Dominion 

Sanctuary, Ogba-Ikeja, Lagos 

on Saturday May 12, 2018. 

Speaking ahead of the 

maiden Regional Men’s Conference, 

Brown Oyitso, pastor 

in charge of the region, 

explained that the idea is to 

get the church involved in 

setting agenda for national 

development. 

“Our vision is to raise distinct 

men of excellence and 

impact by not only creating 

the right platform for engagement 

but at the same time 

setting the agenda for positive 

engagement that will impact 

on the lives of our members 

and the country at large,” he 

said. 

Among distinguished 

speakers expected at the Conference 

are Kayode Pitan, 

managing director of Bank 

of Industry, and Opeyemi 

Agbaje, CEO of Resources 

and Trust Company (RTC) 

Advisory Services Ltd. 

On what to expect at the 

event, Amos Emovon, regional 

men’s coordinator, 

noted that for an economy 

a testament to FCMB’s dedication, 

commitment and unwavering 

support to Nigerian 

youths. FCMB believes this 

innovative idea of having hubs 

within campuses would bring 

banking closer to their target 

market and also position their 

bank to support their dreams 

and aspirations. The FCMB 

Flexx Hub provides holders of 

the Flexx account the privilege 

to enjoy extra benefits, such 

as wifi, charging ports etc. The 

Flexx proposition has been 

designed to meet the overall 

financial and other socio-economic 

needs of young people 

from the age range of 16 to 

25years. This is summarized 

in the description of Flexx as, 

“An app, a card, an account”, 

features which give account 

holders the freedom to bank on 

the go, using the Flexx Mobile 

App and also using *329#. 

The opening of the FCMB 

Flexx Hub at LASPOTECH included 

series of exciting, empowering 

and rewarding activities for 

the students and other attendees. 

There were appearance and performances 

by popular celebrities 

and motivational speakers. Good 

music, game shows, dancing 

competitions as well as talent 

contests, during which participating 

students and other youths 

won various gifts, featured at the 

unveiling event. 

Declaring the Flexx Hub 

open, the Executive Director, 

Business Development of FCMB, 

Mrs. Bukola Smith, said that the 

development will go a long way 

to promote financial inclusion 

among students of LASPOTECH 

Ikorodu, surrounding academic 

institutions and communities. 

According to her, ‘’what the 

establishment of FCMB Flexx 

Hub has brought to the fore for 

our teeming young customers 

is to see banking as simple. We 

want them to adopt mainstream 

financial services early in life 

in our financial inclusion campaign, 

while using the Flexx Hub 

as a vehicle. The goal is to inspire 

and empower them and in the 

process, reinforce FCMB’s values 

as simple, reliable and a helpful 

financial institution anchored on 

the culture of excellence’’. 

Trade minister leads discussion on ‘The Nigeria 

Dream Beyond Oil’ at Men’s Conference 2018 

that has depended majorly on 

revenues from oil, there is no 

better time than now to discuss 

alternative investment 

opportunities in the country. 

“Participants in this year’s 

edition of the conference will 

be exposed to opportunities 

in other sectors of the Nigerian 

Economy beyond oil. There 

will be breakout sessions on 

Agriculture, Real Estate, Energy, 

SME and Information 

Technology, among others.” 

The RMF Region 19 Conference 

is expected to become 

an annual gathering of 

men representing all RCCG 

provinces under the region. 

It is designed as an annual 

platform for empowerment 

and networking. 

Business Event 

L-R: Nnamdi Ilodiuba, president, Institute of Safety Professionals of Nigeria; Frank Ero, general 

manager, Alpha Mead Security Systems and Technology (AMST), and Reginald Anyawu, oresident, 

‎National Industrial Safety Council of Nigeria (NISCN), at the Securex West Africa Conference in 

Lagos. 

L-R: Segun Oduyemi, Lagos regional sales director, Nigerian Bottling Company; Rita Osayamen, 

one of the lucky winners of Coca-Cola’s “Score a Trip to Russia” promo; Soji Omoigui, senior brand 

manager, Coca-Cola Nigeria Limited, and Eduardo Pontual, Nigeria Franchise Director (South) 

Coca-Cola Nigeria Limited, during the official presentation in Lagos. 

L-R: Ituah Ighodalo, senior pastor, Trinity House; Tunde Bakare, guest speaker and Olayide Bakare, at 

the Word & Power Conference of Trinity House in Lagos. 

L-R: Emmanuel Agu, portfolio manager, mainstream, Lager and Stout brands NB Plc; Former 

BBNaija Housemates, Oluwabamike Olawumi, and Tope Teddy Adenibuyan, and Oluseun 

Lawal, brand manager,“33” Export & Stout NB Plc, during a courtesy at the Nigerian Breweries 

Headquarters, Courtesy of Legend Extra Stout. 

L-R: Funmi Sowemimo, sisi oge contestant; Nike Okundaye, founder/CEO, Nike Art Gallery Ltd; 

Owoyemi Kabirat, sisi oge contestant, and Hemait Nahar, general manager, Lush hair Extensions, 

at the 2018 sisi oge hair braiding festival sponsored by Lush hair Extension held in Lagos.


BUSINESS DAY 

15 

CITYFile 

A cross-section of Female Artisans, during the inauguration of residential capacity building programme for female artisans in Abuja. NAN 

Police recover 425 

firearms, extend deadline 

KEHINDE AKINTOLA, Abuja 

The joint enforcement task force 

constituted by Ibrahim Idris, the 

Inspector General of Police (IGP), 

has recovered 425 illegal and prohibited 

firearms from the public. 

The recoveries, according to the police, 

were made as follows: Benue 47, Borno 32, 

Kaduna 70, Nasarawa 35, Lagos 200, FCT 78, 

Taraba 56, Rivers 140, Adamawa 14, Katsina 

198, Abia 1,280, Kogi 67 and Delta 12. 

The categories of the prohibited arms include 

artillery — apparatus for the discharge 

of any explosives of gas diffusing projectile, 

rocket — weapons, bombs and grenades. 

Others are machine-guns and machinepistols, 

military rifles, those of calibers 

7.62mm, 9mm, .300 inches, revolvers and 

pistols whether rifled or unrifled (including 

flint-lock pistols and cap pistols), pump action 

guns and other firearm/lethal weapon 

fabricated to kill. 

The IGP recently gave a February 22 to 

NDLEA arrests 25, seizes 122kg of banned drugs 

National Drugs Law Enforcement 

Agency (NDLEA) has arrested 

25 suspects and seized 

122.78kg of banned drugs in 

Gombe since January. 

Aliyu Adole, state commandant of the 

NDLEA in Gombe, said that the agency 

FCTA releases guidelines for commercial vehicles 

March 14 deadline for the return of prohibited 

firearms to police. 

Jimoh Moshood, the force spokesman, 

who released the statistics while briefing 

newsmen on the ongoing recovery of prohibited 

firearms, in Abuja on Monday, said 

the deadline had been extended to April 30, 

with effect from April 9. 

“The IGP has graciously extended the 

ultimatum for another 21 days with effect 

from April 9 to April 30. This is as a result of 

impressive compliance by Nigerians across 

commands in the country and also to grant 

public request for an extension.” 

The spokesman added that the recovery 

was achieved by members of the joint task force 

constituted by the inspector-general of police. 

He said firearms recovered include: 

114 AK 47 rifles, 17 English made pistols, 

27 pump action guns, 28 barrel gun, 21 

locally made revolver guns, Sub Machine 

Guns (SMG), two General Purpose Machine 

Guns, (GPMG). 

Moshood added that some of the arms 

Transport Secretariat of the Federal 

Capital Territory Administration 

(FCTA) has released more 

guidelines for commercial vehicles, 

operating within Abuja. 

Kayode Opeifa, the transport secretary of 

FCTA, released the guidelines after a meetalso 

secured the conviction 20 of suspects 

who are serving various prison terms. 

“Within this period, we removed 

122.78kg drugs from circulation. In March 

alone, we recovered 92.39kg compared 

with February when we had 543g,” he said. 

Adole called on all stakeholders to join 

ing with all the Licensed Taxi Operators, 

Monday, in Abuja 

According to him, all commercial vehicles- 

high capacity buses, mini/mid buses, 

taxis, tricycles and motorcycles must carry 

red number plates. 

“All passenger service (commercial) 

were returned voluntarily, while some 

were recovered by the team. He noted that 

extension of deadline for surrendering of 

prohibited firearms was based on impressive 

turnout recorded so far. 

He warned that after the expiration of 

the deadline, the force would arrest and 

prosecute those keeping such arms. 

The spokesman said no one would be 

arrested for voluntarily returning firearms 

acquired illegally. 

He explained that “this operation which is 

still ongoing among other purposes, is aimed 

at full enforcement of the Firearms Act.” 

On the success of the exercise in the commands, 

Moshood said 12 state commands 

recorded successes since the beginning of 

the directive. He added that “all state commands 

have made good successes in the area 

of recovery of illegal and prohibited firearms. 

He explained that the force was mopping 

up prohibited firearms in the country 

to ensure the safety of lives and property of 

Nigerians. 

in the fight against drug abuse. He also 

urged parents and guardians to warn their 

children against joining gangs which, he 

said, encouraged drug abuse. 

“I am advising you to talk to your children. If 

you do not talk to them, somebody outside the 

family will talk to them and it will be dangerous. 

vehicles must be registered in Abuja and 

must carry FCT number plate with effect 

from October 1, 2018. All taxis operating 

within the FCT must be air-conditioned on 

or before October 1, 2018. 

“All passenger service (commercial) vehicles 

must carry two (2) valid certificate of 

‘I rob stranded motorists 

with toy gun’ 

JOSHUA BASSEY 

A 

20-year man arrested by operatives 

of Rapid Response Squad (RSS), an 

anti-crime outfit of Lagos State police 

command has confessed to the use of a toy 

gun to rob stranded motorists around Adeniji 

Adele end of the Third Mainland Bridge. 

The suspect, Rilwan Wasiu from Oyo 

State was arrested at Adeniji Adele under 

bridge around 10:00 pm while fighting with 

his girlfriend. 

The officers according to report sighted 

the suspect beating his girlfriend late at 

night by the road side. The officers stopped 

to mediate in the dispute when a toy gun fell 

off the body of the suspect. 

The suspect had attempted to run away 

immediately the toy gun fell off his body 

when he was promptly apprehended and 

taken to the RRS headquarters. 

Wasiu had initially claimed that he picked 

up the toy gun from where he was sleeping 

under the Adeniji Adele Bridge. “I found the 

toy gun where I was sleeping. I was going to 

destroy it before the misunderstanding with 

my girlfriend”. 

On further interrogation, the suspect 

disclosed that he belonged to a three-man 

robbery team dispossessing stranded motorists 

and passers-by around Adeniji Adele end 

of Third Mainland Bridge of their belongings. 

According to him, his two other gang 

members include Salami and Sakiru and 

that they operate at night after working as 

bus conductors during the day. 

Chike Oti, spokesperson of the Lagos 

police command said that the deployment of 

more police officers to checkmate the activities 

of criminals on the Third Mainland Bridge 

was paying off. The suspect has been transferred 

to FSARS for further investigations. 

EFCC arrests man with 

fake $400,000 notes 

Economic and Financial Crimes Commission 

(EFCC) has arrested one Samson 

Otuedon with fake $400,000 notes. 

Spokesman of the commission, Wilson 

Uwujaren, disclosed this in Abuja on Monday. 

Uwujaren said the suspect was arrested 

at Masaka in Karu local government area of 

Nasarawa State on Saturday for currency 

counterfeiting. 

“Otuedon, who specialised in counterfeiting 

foreign currencies, was apprehended following 

an intelligence report on the activities 

of a syndicate of fraudsters, duping unsuspecting 

victims in the Masaka area of the state. 

“The commission, upon the receipt of the 

report, swung into action by putting the area 

under surveillance, an action that led to the 

eventual arrest of the suspect on Saturday. Upon 

arrest, over $400,000 were recovered,” he said. 

The EFCC spokesman said the suspect 

told interrogators that the fake dollars were 

given to him by other members of his syndicate 

based in Lagos. 

Otuedon was alleged to have confessed to 

the crime, and also admitted that the syndicate 

used fake dollars for money doubling. 

Uwujaren said Otuedon would be 

charged to court as soon as investigations 

were concluded. 

road-worthiness from FCT Computerised 

Roadworthy Test Centre issued in the last 9 

months,’’ he said. 

Opeifa said that drivers of all passenger 

service (commercial) vehicles must be in 

possession of a valid driver’s licence and 

must be certified by the secretariat in line 

with relevant FCT Regulations. 

He added that owners of the Passenger 

Service Vehicle (PSV) must show evidence 

of tax payment in the FCT.

16 

BUSINESS DAY 

C002D5556 


Politics 

& Policy 


Offa massacre: Saraki canvases 

improved security infrastructure 

SIKIRAT SHEHU, Ilorin 

The President of the Senate, 

Bukola Saraki has 

called for the general 

improvement on the 

securityinfrastructure 

of the country to forestall incessant 

attacks on Nigerians. 

Saraki, who made the call in 

Offa , Offa local government area 

of Kwara State, when he paid a 

condolence visit to the Olofa of 

Offa, Oba Muftau Gbadamosi Esuwoye 

on the recent bank robbery 

incident in the town, said that Nigeria’s 

security challenges are as a 

result of the country’s inadequate 

response to security. 

Armed robbers numbering 

about 15 had last week Thursday 

attacked five banks and police 

station in Offa, killing 17 people 

including nine policemen in the 

process. 

Saraki said: “All the issue had 

to do on how we will improve on 

our security infrastructure. It is 

clear that we are not responding 

adequately to this. That is why 

we organized a security summit 

sometime ago to address the issue 

and to work closely with the 

executive and see how we can find 

solution to the security problems 

in the country. 

“We on the legislative arm are 

ready to come up with the real 

design to improve on the security 

challenges, whether it is the 

human resources, equipment, 

whether it has to do with funding 

and legislation. There is also the 

issue of the actual structure of the 

police. 

“This issue requires a very radical 

and serious minded approach. 

Unless we address this we will 

continue to have this kind of scenario 

where a bunch of criminals 

will hold a town for two hours and 

carry out this mayhem. There is no 

society that will really allow this 

APC, Buhari sinking, now desperate - PDP 

INNOCENT ODOH, Abuja 

Ahead of the 2019 general 

elections, the main 

opposition party in 

Nigeria, the People’s 

Democratic Party (PDP) has 

warned Nigerians that the ruling 

All Progressives Congress (APC) 

and its President Muhammadu 

Buhari are already sinking following 

their inability to provide 

the deluge of promises they 

made to Nigerians. 

The PDP warned Nigerians 

that President Buhari and the 

APC have embarked on alleged 

Buhari should 

resign as petroleum 

minister - Sen. 

Alasoadura 

C002D5556 

Head of APC technical committee, Simon Lalong, Plateau state governor presenting report to APC national 

chairman, John Oyegun at APC national secretariat Abuja, Friday evening. 

kind of thing to happen. 

“We condole with the families of 

both the civilians and the policemen 

that died during the incident. 

In a place like Offa that is very 

vibrant in commerce, we must 

address security challenge so that 

people can continue to carry out 

their normal activities. 

“The police must see this as an 

institutional issue. It is not personal. 

On our part as legislators 

we are ready to do anything that 

will empower them.” 

Responding on inviting the 

military for assistance, Saraki posited 

that, “there is no society that 

delegates the responsibilities of 

the police to the military. Because 

it also has its own fallbacks; the 

number of the military is very thin. 

They are in most of the states of the 

federation. This makes it difficult 

for them to protect the territorial 

integrity of the country.” 

In his submission, the Olofa of 

measures aimed at hoodwinking 

Nigerians in their desperate 

bid to remain in power after 

they have been thoroughly discredited. 

In a streak of coordinated 

press releases by the National 

Publicity Secretary of the party, 

Kola Ologbondiyan, the PDP noted 

that it has become incumbent 

on the opposition to alert Nigerians 

on the fiendish machinations 

of the APC to allegedly deceive 

the people and foist on them a 

failed government in 2019. 

The PDP statement on 

Sunday April 8, lambasted 

theAPC,and Presidency over 

Offa, Oba Mufutau Gbadamosi 

harped on the need for the establishment 

of state police. 

The monarch said: “It will be 

better for the Federal Government 

to establish state police. With that 

they will be closer to the people 

and to the state government. This 

is the fourth time that we will 

experience this kind of robbery 

attacks in the last ten years. 

“One of the major problems 

of the police force is inadequate 

manpower. We discover that in 

Offa local government area here 

the number of policemen is not 

up to 50. 

“Anytime we have something 

like this there will be no reinforcement 

anywhere. So what we need 

is manpower. The state government 

can afford to buy us armoured 

personnel carrier (APC), 

it can afford to build more police 

station but if the manpower is not 

there it is not enough. 

19 

“What the Federal Government 

needs to do is to employ as many 

graduates looking for jobs into 

the police force, Army, Air Force 

and the Navy. There is a lot of 

unemployed graduates that are 

ready to join these military and 

para-military forces. There is no 

security at all in the country. If you 

were here on that fateful day you 

will know what I am saying. 

“I don’t want to believe that 

it is a question of sophisticated 

weapons; it is the question of ‘we 

cannot go there because we are 

not enough.’ 

“We have always been involving 

local security, but you know these 

criminals when they come they 

always catch people unawares. 

There is risk attached to the use of 

local hunters, because by the time 

we get them involved because of a 

day like this, the police will arrest 

them and say they are carrying 

Dane guns,” he said. 

what it described as “Procured 

Endorsements”following the 

visit of a group of religious leaders 

on the aegis of Arewa Pastors, 

who paid a courtesy visit to President 

Buhari last week and threw 

their support to the President 

The PDP said the visit was 

a stage-managed political endorsement 

by the APC adding 

that the Buhari Presidency, by 

procuring individuals who masqueraded 

as religious leaders, 

was hypocritical and disgusting 

signs of desperation. 

It said the Buhari Presidency’s 

hiring of supposed Arewa Pastors 

was a second attempt to orchestrate 

fake endorsements ahead 

of the 2019 election, recalling 

the recent Martin Luther King 

Jr. saga. 

PDP said both procured endorsements, 

which had turned 

out to be fake, are, to say the 

least, despicable and betray the 

nervousness of a sinking leadership, 

desperately trying to save 

its face, having been rejected by 

the people. 

“It is heartrending that because 

of the desperation of one 

man, the integrity of Nigeria’s 

seat of power has again been 


BUSINESS DAY 

CYNTHIA EGBOBOH, Abuja 

17 

YVAN unveils 2019 

presidential candidates 

The Young Visioneers Association 

of Nigeria (YVAN) 

at the weekend unveiled a 

number of potential Nigeria 

presidential candidates. 

Ezekiel Temitope Oladimeji, 

president of YVAN at the first annual 

national conference held in 

Abuja, explained that YVAN is not 

a political party but an association 

of determined youths with the aim 

of supporting the young aspirants 

for the various positions both in the 

states and national levels. 

He said “The young Visioneers association 

of Nigeria is not a political 

party but we are an association set 

to promote and support the Young 

Nigerians who are set to take up various 

positions in government both in 

states and federal government”. 

The potential candidates include 

Daniel Akinlami, Clement Jimbo, 

Donald Igwegbu, Nicholas Felix, 

Matthias Tsado, Jaya Gaskia, Ahmed 

Buhari, EragbeAnslem, Abubakar Alkali. 

However, these applicants’ political 

parties are yet to be disclosed. 

Ezekiel stressed further the need 

for the youths to participate rather 

than be spectators in Nigeria politics, 

stating that every youth should be 

bold and seek to improve, build and 

deliver a better Nigeria. 

“We must make a solemn decision 

to play on the field of politics 

in Nigeria, to be involved and not 

be spectators anymore. We must 

gladly seek and render services to 

improve and build a better Nigeria”, 

he said. 

“The time has come for us to settle 

for and embrace the change that 

has come upon us, let us change 

our perception, our respect for law 

and order as the law must change to 

favour its citizens also”. 

Donald Ike Igwegbu, a presidential 

aspirant, said that he is 

committed to transforming Nigeria’s 

potentials and future developmental 

goals into a present day 

reality through strong leadership 

with zero tolerance for corruption 

and lawlessness. 

“I am in the race for the office of 

the president of the Federal Republic 

of Nigeria because I am genuinely 

committed to fast forwarding our 

country’s potentials and future 

developmental goals into a present 

day reality through strong leadership 

with zero tolerance for corruption 

and lawlessness” 

Ahmed Buhari, a presidential aspirant 

explained that his declaration 

was borne out of the desire to see a 

true change in Nigeria,adding that 

his core values are to create a united 

nation despite diversity, create a 

more effective security and promote 

an economically viable country. 

“I have had this desire to run 

as a presidential candidate since 

2016, because I want to see a true 

change in Nigeria with a core value 

of ensuring a united nation, effective 

security and economic viability”.

18 BUSINESS DAY C002D5556 Wednesday 11 April 2018 

Politics 

& Policy 

2019: Experts blame poor policies for high 

crime rate, warn Nigerians to vote wisely 


Experts have blamed 

the harsh economic 

conditions in the 

country for high 

crime rate. They are 

of the opinion that the increasing 

cases of unemployment and 

extreme poverty are contributing 

immensely to the high level of 

crime in Nigeria especially the 

capital Abuja. 

They warned that as the nation 

goes into election in 2019, if 

the right people are not elected 

in positions of authority in the 

country then the hardship may 

intensify. 

Law Mefor, a Forensic/ Social 

Psychologist, told Business Day 

in a chat that increasing poverty 

and crime are positively correlated 

stressing that “the higher 

the poverty rate the more crime 

in the society.” 

He said further that the crime 

rate in Abuja is made worst by the 

too many slums around the area 

and the mass unemployment. “In 

the FCT less than 2 percent of the 

people who consider themselves 

as living in Abuja don’t actually 

live there. They live in urban 

slums and they migrate from the 

slums and they are not enjoying 

it and they can do anything 

to come to the city center. So 

people are under very serious 

social pressure in the FCT and 

the slums have a way of fueling 

crime. 

“More criminality is bred in 

the ghettoes across the world not 

just is not a Nigeria. But if you 

L-R, Ketil Karisen, EU ambassador to Nigeria and ECOWAS, Mahmood Yakubu, chairman INEC and Fabio Bargiacchi, 

vice president, EU Partnership for Democracy (EPD) during the international conference on ‘Opportunities 

and Challenges in the Use of Technology in Elections’ held in Abuja. picture by TUNDE ADENIYI. 

look at Abuja, Abuja has more 

slums than most cities and they 

have not made the slums habitable 

for the people, so all manner 

of people can live there and 

that is a criminal environment,” 

he said. 

He added that the situation 

is compounded by the failure of 

the police authorities to enforce 

the law and establish deterrence 

saying, “In every society one instrument 

that holds the society 

together is the law because law 

provides the deterrence and if 

you have laws that cannot be enforced 

then there is no law at all. 

“We don’t have enough policing, 

police are undertrained, 

understaffed, under- motivated, 

undermanned and under motivated,” 

he said. 

He also said that the loss of 

values has led to poor parenting 

and the general breakdown the 

of values in the society are the 

real factors as so many people 

who are deprived easily take to 

crime adding that crime appear 

rewarding in the country because 

the society no longer ask 

how people make their money. 

He also mentioned poor modeling 

as another factor where the 

role models in the society are 

usually people with questionable 

character but who are seen 

flaunting their ill-gotten wealth. 

He added that the solution is 

in a comprehensive economic 

package that will remove most of 

the people from poverty adding 

that Nigerians must be wise in 

their choice of leaders in 2019. 

Also contributing, a develop- 

ment expert, Hussaini Abdu, said 

there is a strong relationship ship 

between economy and crime, 

stressing that it is not possible 

for people to go through a certain 

level of deprivation whether 

political or social deprivation 

without creating the boomerang 

effect. “Once poverty level is 

high and unemployment is high, 

as humans’ people resort to existential 

survivalist instincts. But 

that is not to say that once you 

have unemployment then automatically 

there will be crime.” 

“Poverty has been with the 

Nigerians since the 80s. With 

the introduction of SAP, the life 

of the people has virtually become 

synonymous with poverty 

and as corruption becomes s 

major lubricating element in our 

economy,” he added 

On the role families play in 

bring about crime he said “Families 

are not independent of the 

social setting of the society. So 

values, culture, conventions, 

principles are actually shaped by 

the larger socio economic condition 

of our society. So the more 

economic crisis you experience 

the more it affect the values of 

the society.” 

He said that government can 

respond to sad situation with 

massive investment in human 

capital saying, “When the development 

of infrastructure is 

more than the development of 

the people the infrastructure 

will be destroyed. Infrastructure 

development must be commensurate 

with the development of 

the people,’’ he added. 

Be violent in your spirits against injustice, Adedayo counsels Nigerians 

…Calls for restructuring 

AKINREMIFEYISIPO, Ibadan 

Nigerians have been 

urged to be violent 

in their spirits against 

the unjust system 

currently being run in the country. 

A former Special Adviser on 

Media to the governor of Oyo 

State and former governor of 

Enugu State, Festus Adedayo, 

said this became necessary, 

since it is obvious that government 

would not concede to a 

restructuring of Nigeria as being 

advocated. 

Delivering this year’s Synod 

Lecture of the Anglican Church, 

Ibadan Diocese, held at St. David’s 

Anglican Church, Ijokodo, 

Ibadan said Nigerians have fasted 

and prayed to God enough 

to change the unjust system 

of government which has kept 

them down socially, economi- 

Festus Adedayo 

cally and politically, but the time 

had come for them to physically 

manifest it by rejecting the unjust 

system and damn those who are 

behind it. 

“It is obvious that President 

Muhammadu Buhari, being one 

of the offspring of those who 

designed this unitarist-federalist 

constitution that is affecting Nigeria’s 

progress, will never allow 

a restructuring of the country. 

The bible tells us that the Kingdom 

of God suffereth violence 

and the violent takes it by force. 

While I am not advocating that 

you should take up armaments 

against the system, you should 

however be violent in your spirits 

against this political and 

economic system of injustice in 

Nigeria,” he said. 

In the lecture, entitled Restructuring 

Nigeria: Possibilities 

and Challenges, had in attendance 

Joseph Akinfenwa, a reverend, 

Bishop of Ibadan Anglican 

Diocese and a cross-section of 

clergymen who had gathered for 

this year’s Synod. 

Adedayo traced the history 

of restructuring and agitations 

by Nigerians for the righting of 

systemic wrongs from the anticolonial 

struggle for independence, 

to the Clifford Constitution 

of 1922, the 1947 Richards Constitution, 

Macpherson Constitution 

of 1951, Oliver Lyttelton 

Constitution of 1954, down to 

the 1960 Independence and 1963 

Republican constitutions 

In the lecture, noted “having 

faced decades of dislocation of 

their socio-political progress 

which reflects in gross poverty 

in the midst of apparent plenty, 

massive governmental corruption 

which has become the most 

visible face of the country within 

and outside its shores, rising cost 

of living, decline in educational 

standard and high level of insecurity, 

among a plethora of other 

existential challenges, it is only 

logical that Nigerians would be 

desirous of reinventing their 

country. Late novelist, Chinua 

Achebe, in his book, There was a 

country, must have been one of 

those who unwittingly provoked 

this nostalgia when, in the book, 

he painted a Nigeria that was 

once a prosperous land,” he said. 

“Agitations for restructuring of 

Nigeria are based on the notion 

that Nigeria, as it is currently 

constituted, is not working. The 

consensus of opinion is that, refederalising 

Nigeria will entail 

not only returning Nigeria to 

the 1960 and 1963 constitutions 

where each of the three regions 

was autonomous and there was 

a healthy rivalry among them, 

restructuring is also perceived as 

the process of redemption of the 

historical mistakes of the 1966 

military coup,” he submitted. 

Adedayo said that, whichever 

of the types of restructuring that 

Nigerians may adopt, “it is obvious 

that the country cannot 

continue like this. The time to do 

something that will reform the 

current status quo is now.”


C002D5556 

BUSINESS DAY 

Buhari should resign as petroleum minister - Sen. Alasoadura 

In this interview with OWEDE AGBAJILEKE, Chairman, Senate Committee on Petroleum Upstream, Senator Tayo Alasoadura (APC, Ondo State), speaks 

on issues in the petroleum industry, reordering of elections’ sequence, insecurity in some parts of Nigeria and other national issues. Excerpts: 

19 

Politics 

& Policy 

What is happening to the remaining 

three Petroleum Industry 

Bills in the National Assembly? 

The Petroleum Industrial 

Governance Bill 

(PIGB) has just been 

passed by both chambers 

of the National 

Assembly. For the other three 

PIBs, we have been assured by 

our consultant that the draft will 

be submitted to us so that we can 

start work on it. I am anxious but 

the Senate President is even more 

anxious than I am because we are 

already in an election year when 

people devote half of their time 

to electioneering and half at the 

Senate. Those of us who will lead 

this bill will need the input of our 

colleagues and as such, we are so 

much in a hurry. 

We recently experienced one of 

the longest fuel scarcities in Nigeria. 

What was the cause? 

One, Nigerians are wicked people. 

We are the enemies of ourselves. 

Some stakeholders in the oil industry 

are wicked. They want to 

increase the fuel price and the 

government is saying no. The government 

has done it once and it will 

not want to do it again. So the oil 

industry people decided to sabotage 

the effort of the government. 

All the fuel used in Nigeria today 

is being imported by NNPC alone. 

The fact that they have been able to 

bring the scarcity down to this level 

should be commended. Nigerians 

are so wicked that they take fuel 

meant for this country to other 

smaller African countries because 

of the higher price. The price of fuel 

in Nigeria is about 50 percent lower 

than in neighboring countries. It is 

easy for smugglers to take it to other 

countries than bring it here. That is 

causing us problems because they 

bribe their way and at the end, they 

still make more money than they 

make here. Even the fuel that is being 

imported by NNPC now, half of 

it is not being used here. 

Some have urged the Federal 

Government to either lease or 

sell the refineries. Will you support 

this move? 

I believe in privatization. We need 

the people that built the refineries 

to come and run them. We 

might still retain shares but we 

should not be in charge. We spend 

millions of dollars to repair the 

refineries every year and we get 

nothing from it. 

What is happening to modular 

refineries? 

Only one person has been able to 

start a modular refinery in Bayelsa 

State and I know that close to 30 

licenses were given in the last 

one year. 

Do you support calls for President 

Buhari to resign as Minister 

of Petroleum? 

I have said it before and I will say 

Alasoadura 

it again that he should resign as 

Minister of Petroleum. He doesn’t 

have to be the minister because he 

is the minister of all the ministries. 

He needs time for other things. I 

believe the reason there were issues 

between the GMD of NNPC 

and Minister of State for Petroleum 

was because the GMD believes he 

is answerable to the President and 

not to the Minister of State. 

Will you support the President if 

he decides to re-contest in 2019? 

Of course I will support him because 

of his love for Nigeria as 

well as his candour and integrity. 

He may have people who are rubbishing 

his administration; the 

cabal who will be doing things that 

he will not do, but nobody is free 

of fault. Politics is a thankless job. 

What is your reaction to the Electoral 

Act Amendment Bill, which 

reordered elections sequence in 

the country? 

I don’t support the action of the 

National Assembly because there 

is a law that says INEC shall fix 

election dates and sequence of 

elections. Yet we came and said we 

are making corrections. I am not 

a part of it but as democrat, when 

the majority agree on something, 

I am bound by it. But as a person, 

I do not support it and if I have my 

way, I will make sure that that bill 

is not passed. Again a lot of time, 

the minority might be right. 

There was a bill that Mr. President 

refused to assent to recently, 

the one that will be doing the work 

of police, civil defense and the 

rest. I was the lone voice on the 

day it was being passed who said 

it amounts to duplication. I also 

said that a lot of people working 

for government today are not being 

paid salaries, so to create another 

agency that will be doing the same 

work is not necessary because it 

is just another avenue for government 

to spend unnecessarily. But 

because I was in the minority, my 

voice was drowned and when Mr. 

President declined to sign the bill, 

I was happy. 

Ibrahim Magu is still acting as 

EFCC chairman despite a court 

judgment that supports Senate’s 

decision not to confirm him. Do 

you think this is right? 

One thing I believe 

is that if Buhari 

was not president 

at this time, there 

would have been 

a full scale war in 

Nigeria because of 

the way the Boko 

Haram people 

were spreading 

before he came 

It is illegal and it is something that 

a democratic government must not 

do. It is the duty of the Senate to 

confirm Mr. President’s appointees 

and where such confirmations are 

withheld, it is the duty of the President 

to replace such people so that 

there will be no vacuum. We have 

rejected Magu but Mr. President is 

still using him. There will be a time 

in the history of this country where 

it will be written and then blames 

will be allotted. 

What will make the implementation 

of the 2018 budget different 

from previous ones? 

It is left for the Executive to do 

the needful. The Executive won’t 

submit the budget on time and yet 

they expect us to pass it by end of 

December. That is not possible, 

unless they don’t want us to do 

our work but just to stamp it as it 

is presented to us. If we have to 

work on it, then it must be brought 

early enough. 

Are you worried with the way the 

Federal Government is handling 

the security issue in the country? 

I am worried about the killings, 

taking people lives is wrong no 

matter the offence or grievance. 

The justice system in developed 

countries has eradicated taking of 

lives, instead of that they sentence 

them to life imprisonment so 

that they will not be able to harm 

the society anymore. For some 

people to decide to wake up and 

kill others is a serious crime. It is 

uncalled for. You will see people 

killing innocent children who have 

done nothing, I think it is complete 

insanity. People think it is because 

of land issue and so on. But the 

use of drugs is very important in 

analyzing the reason why they 

are doing this, especially in the 

Northern part of Nigeria, it is an 

unbearable factor. 

So you don’t see religion as a 

factor? 

Which religion? Look at the girls 

that were kidnap in Dapchi recently, 

are they not mostly Muslims? 

The Boko Haram who adopted 

them, are they not also Muslims? 

So this is not religion at all. How 

many Christians have lost their 

lives since the insurgency started? 

It is mostly Muslims because the 

damage is worse there. These are 

people who are insane and are 

hooked on drugs, people who live 

in hallucinative world. It is not 

good for anybody to take people’s 

lives. 

The security agencies are overwhelmed 

with all the challenges. 

There is Boko Haram, herdsmen 

crises, Niger Delta militancy and 

avengers. These are the challenges 

the President has been facing 

since he came into office. One 

thing I believe is that if Buhari was 

not president at this time, there 

would have been a full scale war 

in Nigeria because of the way the 

Boko Haram people were spreading 

before he came. If they had 

been allowed to continue, by now 

we would have been in real war. 

Religious war does not end. That 

the President has been able to 

decimate Boko Haram to the way it 

is today is worth applauding. 

The reason for the herdsmen 

attack is the desertification crisis 

in the North. The desert has taken 

the livelihood of vast majority 

of Nigerians who live on rearing 

animals. That is what has pushed 

the herdsmen down South and it is 

the repercussion that we are experiencing. 

Those they have come to 

meet are farmers and by pushing 

their animal through the farms, 

there is bound to be conflict. So 

the conflict is about survival. The 

herdsmen have been in Nigeria 

for long, it is the drying up of Lake 

Chad that is causing this. We need 

to restore the North to green land. 

It has been done in Egypt, Saudi 

Arabia, Dubai and the rest. Dubai 

was a desert 30years ago. But it was 

grassed. Let us look for money and 

re-grass the North. 

But is it government’s responsibility 

to put money into private 

business? 

Who made Dubai great? Who 

made Egypt great? It is government’s 

responsibility to do that. 

So the permanent solution is going 

back to the North and doing what 

civilized countries have done to 

deserts, reclaiming the land so 

that it can be useful to the people. 

If this is done, nobody will leave 

the North and go to South to graze.


Politics 

& Policy 

Ekiti guber: APC will fail badly if it gives ticket to Fayemi, Ojudu or Oni – Olowo 

A governorship aspirant of the All Progressives Congress (APC) for the July election in Ekiti, in this Interview with INNO- 

CENT ODOH, Ajayi Olowo, a lawyer of many years practice assures that he is out to provide fresh hands and fresh ideas 

for the service of the people of Ekiti. He also sounds confident he will win the APC primaries. Excerpts: 

What new ideas can you 

bring to the table as you vie 

for the governorship position 

under the APC? 

My ideas are 

encapsulated 

in my 

ten-point 

agenda, 

we have agriculture in a 

modernise form that can 

provide employment for 

the youth and the elderly. 

Ekiti is an agrarian state; we 

have enough land that can 

encompass agriculture such 

that we will be better off. 

We have programmes for 

qualitative education that 

will be supported by government. 

We are not planning 

free education, but qualitative 

education that will be 

subsidized by government 

because free education is a 

mirage. It worked in those 

days but is no longer necessary. 

We are looking at 

transport infrastructural 

programme. We can even 

have light rail between Ekiti 

and neigbouring states. If 

we win the election we will 

have a sort of homogeneity 

in the development of the 

South West. 

There is nothing wrong in 

the Oodua group having rail 

connectivity in all the states 

in the South West. Then we 

are looking at sanitation 

and water resources because 

they are intertwined. We 

have three dams in Ekiti and 

one of them, the Egbe Dam 

alone according to World 

Bank sources can serve Ekiti 

state and Ondo states perennially 

without changing 

the water yet our people are 

drilling boreholes. When 

we were growing up in the 

earlier 60s we met pipe born 

water, why is it now that our 

politicians are drilling boreholes? 

How many boreholes 

will you drill to solve the 

problem of the people? 

One of the reports of the 

World Bank about three 

years ago said that Ekiti is 

the most openly defecated 

area, where people openly 

defecate anywhere. We have 

traveled to civilized environments 

why can’t we build 

public toilets across board? 

That will even provide employment. 

All these we are 

talking about we will do 

them through Public Private 

Participation (PPP) such that 

they will provide jobs and 

reduce communicable diseases 

and that will provide 

utmost sanitation for the 

populace. 

So we are looking at the 

situation where we can make 

the society better. We are 

not just going to ask people 

to come to us; we will be 

holding town hall meetings 

regularly to interact with the 

people. It is not a situation 

where when you go to government 

House you become 

overlords. 

Some of these lofty ideas 

you have are capital intensive. 

Ekiti State is barley 

an agrarian state, can it 

generate enough funds to 

run this infrastructure or 

do you have an intension 

going borrowing? 

No, all we need to do is Public 

Private Participation; 

we know we are not an oil 

producing state. When Ekiti 

is receiving about N3 billion 

from the federation account 

some states like Delta will 

be receiving about 12 or 

26 billion. But we will do 

development through PPP 

such that Private investors 

will invest. We will do what 

is called “build, operate and 

transfer.” People can have 

concession for over 30 years 

and then return the same to 

government. The essence of 

governance is to make life 

better for the people not to 

Olowo 

play overlord over them. If 

it is about getting perquisites 

of office, I don’t think I am 

one of those attracted by 

the perquisite of office. In 

my many years as a professional 

accountant, Industrial 

relations expert and very 

successful litigation lawyer 

in Abuja, I think I can feed 

my family. I go over sea on 

holiday with my family and 

three of my children are 

graduates. So I don’t want 

public office for personal 

aggrandizement. 

APC is opposition party in 

your state and you have a 

very fiery governor, Ayo 

Fayose, who is battling to 

ensure that APC does not 

see the light of the day in 

Ekiti. We understand that 

the governor has endorsed 

is deputy to succeed him. 

How do you intend to tackle 

this challenge? 

That is not a threat because 

even in the rank of PDP, 

the ambition of Fayose has 

decapitated the PDP in Ekiti 

state to the extent that a lot 

of big wigs in the party are 

moving away from the PDP 

to join the Third Force and 

the SDP. Fayose’s deputy Prof 

Olusola Elekan is from my 

town, Ikere Ekiti Municipal 

local government and where 

Elekan comes from, he does 

not have the popularity that 

matches mine. 

You mean Fayose cannot 

use his incumbency power? 

Apart from Fayose having 

immunity, he does not have 

any incumbency power. Is it 

incumbency power that his 

security aides can be withdrawn 

just by a stroke? So he 

does not have incumbency 

power that can be used over 

any body. What they used 

when Jonathan was in government 

that incumbency 

power at the center is not 

available to Fayose at the 

moment. Even the current 

President Muhammadu Buhari 

is not as prependalistic 

as the former president. 

But all the same I don’t see 

Fayose able to use the security 

agents to manipulate 

the election against people 

like us. By virtue of section 

214 of the 1999 constitution 

as amended, Fayose 

does not have control over 

the commissioner of police 

so he cannot manipulate 

anything. 

You sound so confident 

about your ambition in the 

APC but right now the party 

at the national level and 

some states are in crisis. 

If the crisis at the national 

level is being replicated in 

some of the states, what 

chance do think that party 

has in wrestling power 

from the PDP in Ekiti state? 

I don’t know about crisis at 

the national level neither do 

I know of crisis in Ekiti state, 

maybe I am naïve. I think in 

Ekiti we are cohesive. In my 

interaction with delegates 

who will vote in the primaries 

on the May 5 so far, APC 

is one family and we remain 

cohesive. I don’t see this 

primary election serving 

as a divisive mechanism 

among us that is my own 

view. One of the cardinal 

points of my programme 

is to ensure that the party 

is strong, stronger than the 

government because if we 

have a party stronger than 

the government then you 

have the will of the people 

happening all the time, not 

the will of any minority in 

power. So whatever division 

you see at the federal level 

I don’t see it affecting what 

will happen in Ekiti State 

You have about 36 aspirants 

to the APC governorship 

position in the state 

including former Governor 

Kayode Fayemi, Senator 

Femi Ojudu, Segun Oni 

and others. It is going to be 

a very fierce contest. Do 

you think that the permutations 

in Ekiti State are kind 

to your candidature? 

Yes, when you look at those 

big names you mentioned it 

depends on a lot of factors. A 

lot of people looking at Ekiti 

from outside probably don’t 

understand the nitty-gritty 

of the politics on ground in 

Ekiti state. There are three 

senatorial districts, Segun 

Oni, Fayemi, are from the 

north senatorial districts. 

Ojudu is from the centre. 

The centre had three slots, 

Niyi Adebayo (1999-2003) 

Fayose, who is the present 

governor has served two 

terms. In the north senatorial 

district, Fayemi has had 

a term, Segun Oni has had 

a term but the southern 

senatorial district, where I 

come from they have not had 

a term. That is why there is 

a group that is agitating for 

Southern Agenda. That a 

southern candidate should 

emerge otherwise they will 

do a protest vote. But I don’t 

predicate my candidature on 

southern agenda, but they 

are clamouring for fairness. 

I so much trust APC 

should consider southern 

aspirants because what is 

good for the goose is good 

for the gander. Out of the 

36 aspirants, there are 17 

from the Southern zone 

which means they battle 

will be fiercer and the votes 

could be more divided which 

means that any of us that 

wants to emerge we have 

to push for votes from the 

centre and the north. 

I don’t see Fayemi defeating 

me in the APC primaries 

I am telling you authoritatively 

but if the party makes 

a mistake and a proper primary 

is not done and if the 

flag is given to Fayemi the 

APC will lose badly in Ekiti 

State. Ojudu cannot win the 

election neither will Oni win 

the election that is why we 

need fresh hands people like 

us who have not stepped on 

toes, or alluded to one crime 

or the order, people who can 

come clean. 

APC, Buhari sinking, now desperate - PDP 


ridiculed as the world 

watched religious bodies 

and groups in the country 

disowning the procured 

band. 

“The fact that this disgraceful 

drama came barely 

a week after our nation 

suffered an international 

show of shame over President 

Buhari’s presentation 

with a procured award 

fraudulently linked to Martin 

Luther King Jr., speaks 

volumes of this administration’s 

proclivity for falsehood, 

lies and deception. 

“Having failed to gain 

any endorsements from 

reputable international figures, 

such as Bill Gates and 

the Martin Luther Kings 

Jr. group, the APC and 

the Presidency have now 

shamelessly resorted to 

cheaper ways and means, 

particularly, along the unregulated 

and porous religious 

and sectional lines. 

“It is now overtly manifest 

that the Buhari administration 

is ready to even 

stage anything, no matter 

how ignoble, including 

fake rescue missions, to 

deceive Nigerians. 

“It would be recalled 

that the PDP had earlier 

alerted Nigerians of plots 

by the Federal Government 

to engage in orchestrated 

endorsements as 

well as issuing of false 

performance indices. 

“These disgraceful endorsements 

are being coordinated 

by three presidential 

aides, a cabinet 

minister from the southsouth 

and certain officials 

of the APC, a project for 

which billions of naira 

have been earmarked. 

“This cabal is also responsible 

for the renting 

of crowds, who are usually 

conveyed in buses, trucks 

and trailers, to fill the space 

during President Buhari’s 

visits to various states of the 

federation, as witnessed in 

Benue during the last visit 

of Mr. President. 

“That President Buhari 

could be begging for endorsements 

only points 

to the fact that he and his 

cabal have lost the support 

of Nigerians whom his administration 

has subjected 

to horrible economic hardships, 

traumatic bloodletting 

and a bleak future. 

If President Buhari and 

his dysfunctional APC had 

performed to the least 

expectations of Nigerians, 

even by implementing the 

littlest of their numerous 

fake campaign promises, 

they would have no need 

for mundane gimmicks 

of procuring awards from 

well- known street quacks 

ahead of the elections. 

“We charge all credible 

groups in the country to 

be at alert and resist any 

attempt by the Presidency 

and APC to induce them 

to compromise their integrity, 

as well as guide 

against plots to use money 

to infiltrate and divide 

their ranks. 

“The APC and Buhari 

Presidency must admit 

that their time is up as 

Nigerians are now rallying 

with the repositioned PDP 

in the national quest to rescue 

our dear nation from 

the incompetent, failed 

and deceptive administration 

of the APC, come 

2019,” the g statement said.


21

BUSINESS DAY C002D5556 Wednesday 11 April 2018 

Wednesday 11 April 2018 C002D5556 


23



Leadership 

SHAPING PEOPLE INTO A TEAM 

How organic wine finally caught on 

GEOFFREY JONES 

If you can’t remember the last time 

you had a glass of organic wine, 

you are hardly alone. Overall, 

less than 5% of the world’s vineyards 

are organic. In the United States, the 

world’s largest consumer of wine, 

only 1% of wine sold by volume is 

organic. The paltry market for organic 

wine around the world belies the 

fact that over the past half-century, 

countless organic winegrowers and 

vintners have dedicated great effort 

to creating a larger market for the 

category, without much success. 

Meanwhile, plenty of other organic 

products, including vegetables, milk 

and tea, have become widely consumed. 

Why the difference? 

We set out to understand how 

and why the category of organic wine 

has largely failed to emerge, even as 

demand for other organic goods has 

soared. Through historical research 

and many interviews, we found several 

ways in which early stumbles in 

the organic wine market created marketing 

problems that the industry still 

struggles to overcome. However, we 

also found that the recent success of a 

related category — biodynamic wines 

— shows a possible way forward. 

EARLY STRUGGLES 

Since the advent of agricultural 

chemicals in the 19th century, a variety 

of people have warned of the risks 

to public health and the environment 

that could result from their use. However, 

these critics largely struggled 

to attract an audience until the late 

1960s, when organic farming, natural 

food stores and organic food startups 

started to gain traction. The organic 

wine industry first achieved significant 

scale a decade later, motivated 

by the prospect of creating a product 

that was environmentally friendly 

and possessed a clear “terroir,” or 

the flavor and aroma associated with 

the environmental conditions of a 

particular vineyard. 

Early organic wine was not well 

received in the marketplace, for a 

number of reasons. First, the conventional 

wine industry saw it as 

a threat. They refused to recognize 

the industry associations of organic 

winegrowers, and cast doubt on the 

marketing claims they were making 

— that organic wine was of higher 

quality and free of potentially harmful 

chemicals. 

Organic wine was not strongly embraced 

by distributors and retailers, 

either. The product was perceived as 

more prone to spoilage since it typically 

lacked added sulfites. As a result, 

many distributors and retailers were 

hesitant to sell it. Even as organic 

supermarkets grew in popularity, they 

were reluctant to stock organic wine. 

Organic wine also needed to overcome 

a persistent reputation for poor 

quality. Early organic (and no-addedsulfite) 

winemaking experiments 

had resulted in some wines turning 

vinegarlike. These wines garnered 

bad reviews, but puzzlingly, the reputation 

for poor taste continued even 

as organic wines began winning prestigious 

awards. Consumers appeared 

to imagine a trade-off between wine 

quality and doing good for the environment. 

This trade-off was not 

present in, say, organic vegetables, 

because there was a widespread belief 

that products grown without pesticides 

had personal health benefits. 

However, wine was more associated 

with pleasure than health. A 2014 

study showed that adding the word 

“organic” to the label of a wine bottle 

was associated with a 20% reduction 

in price, even though other organic 

goods routinely sell at a price premium. 

This perceived lower quality — 

and the lower price that organic wine 

usually commanded — squeezed 

organic wine producers, as organic 

wine was typically more expensive to 

make than conventional wine. 

Adding further problems, there 

were few common standards for the 

definition of “organic” wine, which 

was also variously called “natural,” 

“raw” or “sustainable.” As organic 

wine standards were being developed 

in Europe and the U.S., heated 

debates arose regarding the use of 

sulfites. European legislation finally 

emerged for organic wine in 2012, 

allowing producers to add sulfites up 

to a certain maximum level. However, 

in the United States, the Department 

of Agriculture disallowed the use of 

added sulfites in organic wine. 

THE TURNAROUND 

By the 2010s, organic wine had 

become popular in fine-dining restaurants 

in major cities like Paris and 

New York. The celebrated, Copenhagen-based 

restaurant Noma featured 

a wine menu made up entirely of 

organic wines. And retailers like Sweden’s 

Systembolaget, the state-owned 

alcohol monopoly, aggressively 

expanded the sale of organic wine 

by prominently displaying bottles in 

shops. While 6% of the wine sold at 

Systembolaget in 2011 was organic, 

by 2016 it was over 20%. 

What changed? The “purity” in 

taste and the charm of local winemaking 

traditions often associated 

with organic wine proved to be powerful 

marketing tools that helped turn 

the category around. The product was 

increasingly in demand by individuals 

who sought artisan-made wines 

with clear terroir, and who desired to 

consume products with as few added 

chemicals as possible. In an increasingly 

globalized 21st-century world, 

organic wine has become a potent 

symbol of localized culture strongly 

tied to the past century. 

Biodynamic wines, in particular, 

have secured a special reputation 

for quality. These were organic wines 

grown in a distinctive way. Controversial 

Austrian philosopher Rudolf 

Steiner had established the principles 

of biodynamic farming in the early 

1920s. Following Steiner’s belief that 

the universe is interconnected, planting 

and other activities are coordinated 

with the movements of celestial 

bodies like the moon and the planets, 

and special compost preparations 

are buried in the soil and sprayed on 

the plants. Biodynamic agriculture 

started gaining broad traction in the 

1970s, especially in Europe, where 

followers created some large businesses, 

such as the German natural 

foods retailer Alnatura. No one knows 

exactly how these methods work. The 

story seems to be about more than 

simply relabeling the product (and so 

escaping the unwanted associations 

of organic wine). Some wine experts 

say that biodynamic techniques support 

the health of the plant, while 

others believe the key advantage is 

simply that biodynamic winegrowing 

is extremely demanding, and 

so requires greater attention to the 

vines. What is known is that some of 

the world’s most sought-after, awardwinning 

and expensive bottles of 

wine are biodynamic. 

New category creation is not easy. 

The development of common norms, 

agreed definitions and cognitive 

legitimacy are contested processes. 

The case of organic wine provides 

important lessons about what to 

avoid when starting down this path. 

One is that it’s important to achieve 

quality early on, as negative reputations 

linger. A second lesson, for 

products traded across geographies, 

is to do everything possible to avoid 

multiple, conflicting standards. A 

third lesson, for categories based on 

claims of sustainability, is that consumers 

might want in theory to help 

the environment, but they will not 

sacrifice quality to support the cause. 

(Geoffrey Jones is the Isidor Straus 

professor of business history at Harvard 

Business School and the faculty 

chair of the school’s Business 

History Initiative. Emily Grandjean 

is a research associate at Harvard 

Business School.) 

c 

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

BUSINESS DAY 

C002D5556 

Wednesday 04 April 2018 

25 

Isaka-Kigali electrification 

feasibility 

study proposed 

Page 27 

Lagos-Badagry 

rail project idles as 

gridlock persists 

World rail 

freight news 

round-up 

Page 27 

Page 27 

CCECC, Access Bank, FBN biggest Toyota buyers 

...As BusinessDay’s reporter wins ‘2017 Best Motoring Journalist Of The Year’ back-to-back 

Stories by MIKE OCHONMA 

Construction giant; 

Chinese Civil Engineering 

& Construction 

Company 

(CCECC), 

Access Bank and First Bank of 

Nigeria plc have emerged as 

the three corporate institutions 

that purchased the highest 

number of Toyota brand of 

vehicles in Nigeria between 

January 1 and December 31, 

2017. 

This was one of the major 

highlights of the last 2017 

Toyota Nigeria Limited customer 

and motoring journalists 

awards nite held last week 

Thursday at the Civic Centre, 

Victoria Island, Lagos. 

Although the specific number 

of vehicles purchased 

by both CCECC, Access and 

First Banks were not disclosed 

during the night of glitz and 

razzmatazz, checks by our motoring 

reporter revealed that 

in 2017, some Toyota Nigeria 

dealers smiled to the banks 

with delivery of huge number 

of Hilux pick-up vehicles units 

to CCECC for its site construction 

solutions needs across 

the country. 

Similarly, there are very 

strong indications that both 

Access Bankand First Bank of 

Nigeria which came second 

and third respectively in the 

2017 vehicle purchase ranking 

may have bought majorly 

a very large number of passenegr 

vehicles to meet their 

staf needs. 

While this is the first time 

the Chinese construction giant 

emerged the highest suitor 

for the Toyota brand since the 

inception of the award in 2005, 

the same may not be said of 

the two financial institutions 

which have in the past Toyota 

Awards won the different prices 

in the customer category. 

In the motoring journalists’ 

category, Mike Ochonma, motoring 

editor of BusinessDay 

Newspapers emerged as the 

‘2017 Best Motoring Journalists’. 

Also adjudged past winner 

in some of the past editions 

of the award, the most 

travelld motoring journalist 

in the country also clinched 

the award in the 2016 edition. 

Theodore Opara of Vanguard 

Newspapers came second 

while Rasheed Bisiriyu finished 

third. 

Addressing the guests that 

gathered at the venue of the 

event, Kunle Ade-Ojo, managing 

director, Toyota Nigeria 

Limited, he stated that the 

awards nite has become a tradition 

for the franchisee to celebrate 

its customers and our 

key stakeholders on annual 

basis. This is just a modest way 

of showing our appreciation to 

them for the tremendous support 

we have enjoyed, and still 

enjoying from them. The loyalty 

of our customers through 

thick and thin is an eloquent 

testimony of their love for the 

Toyota brand and of course for 

us as a company. 

In his submisission, ‘’At Toyota 

(Nigeria) Limited, we cherish 

our relationship with our 

customers. This relationship 

has stood the test of time and 

has endured over the years. Our 

customers have demonstrated 

on several occasions that they 

are not only ardent lovers and 

patrons of the Toyota brand but 

passionate advocates as well. 

The least we could do therefore 

is to set aside a day like this to 

celebrate them and showcase 

our token of appreciation’’. 

The managing director expressed 

delight with the Toyota 

dealers in particular for their 

passion, loyalty and the ‘know 

how’ for the promotion of the 

brand in Nigeria, adding that 

other stakeholders have remained 

partners in progress 

over the years. 

Ade-Ojo pointed out that, 

the dealers have also worked 

assiduously to deliver superior 

quality products and services 

in terms of safe, comfortable, 

and affordable automobile experience 

to our teeming customers 


‘’We cannot overlook the 

dedication and commitment 

of the members of the Toyota 

family in the implementation 

of the strategic imperative of 

meeting our customers expectations 

and sustaining the 

number one position of Toyota 

in Nigeria’’. He stated. 

While commending the 

board of directors whom he 

described as been fantastic in 

their unwavering support to 

TNL, Kunle Ade-Ojo noted that 

the staff has been fabulous in 

their contributions to the success 

and survival of the company 

in the face of unprecedented 

harsh operating environment. 

The Toyota Awards he told 

the audience has come a long 

way and dating back to 2005. It 

has become one of the strategic 

tools of bonding with Toyota 

Nigeria and its partners and 

has helped in growing the rank 

of its customers and the company 

said, it is proud to say that 

Toyota has the highest number 

of valuable customers in Nigeria. 

There were raffle draws 

during the night where lucky 

winners went home with juicy 

prizes like laptop, phones 

while many others won consolation 

prizes. 

L-R: Kunle Ade-Ojo, managing director, Toyota Nigeria Limited with Mike 

Ochonma, motoring editor, BusinessDay, receiving award as the (Best Motoring 

Journalist of The Year 2017) in Nigeria from Toyota Nigeria Limited, and Henry 

Ojuoko, head, dealer development and special projects during the company’s 

annual award nite last Thursday in Lagos. 


New Ikeja bus 

terminal to 

move 200,000 

passengers daily 

The Lagos state government 

has declared that it is committed 

to bringing sanity 

and orderliness in the transport 

system of the metropolitan city 

with with an estimated population 

of 20 million people. 

Ladi Lawanson, the State 

Commissioner for Transpotation 

re-echoed this determination 

last week while conducting 

transport journalists round the 

Ikeja Bus Terminal that was recently 

commissioned by President 

Muhammadu Buhari. 

The Lagos State Commissioner 

for Transportation, Ladi 

Lawanson said that the 13 bus 

terminals will checkmate the 

menace of “one chance” kidnapping 

and accidents associated 

with the current commercial bus 

regime in the State. 

According to Lawanson, 

“constructions are ongoing in 

Governor Ambode 

13 different bus terminals across 

the state to leverage their various 

operations. 

“We have Alapere bus shelter, 

Ilupeju bus depot, Yaba bus terminal, 

Anthony bus depot, Maryland 

bus terminal, Agege bus 

terminal, Ojota bus terminal, 

Oyingbo bus terminal, Tafawa 

Balewa Square Bus Terminal and 

other proposed corridors. 

Conceptualised and built by 

Planet Projects Limited, the ultra-modern 

Ikeja Terminal is a 

key transport infrastructure constructed 

to improve efficiency in 

system connections, reduce traffic 

congestion caused by ongoing 

street loading and dropping 

off of passengers, reduce environmental 

pollution and improve 

security and safety of the 

commuting public. 

Describing the Ikeja Bus Terminal 

as a small component of 

the big picture of multimodal 

transport system planned by the 

government, the Transportation 

commissioner added that contrary 

to negative insinuations in 

some quarters that the new facility 

is a bus stop, the new bus 

terminal comes with all the facilities 

and amenities obtainable 

in any part of the world. Some 

of the facilities he said include a



C002D5556 

Vehicle importers to save 35% on IYCN platform 

…As Import Your Car Nigeria launches in Lagos 

MIKE OCHONMA 

If everything works according to 

planned and in line with the good 

intentions of those behind the 

initiative, prospective importers of 

vehicles from diiferent parts of the 

world can save 35percent as cost in 

the process of bringing in their vehicles 

into the country.This 

This was made known recently by 

the management of Import Your Car 

Nigeria; an internationally licensed 

car broker that officially opened 

shop for business in Lagos to offer 

services to those seeking a reliable 

and affordable car acquisition and 

importation option without any hassles. 

The automobile brokerage service 

provider while launching in 

Lagos to offer all car dealers and customers 

promises to offer transparent 

option to the buying public to enable 

them to get the best deal on all vehicles 

of their choice. 

Import Your Car Nigeria is an automobile 

brokerage company that 

provide the platform with solutions 

for intending car buyers searching for 

the lots, bidding or buying process, 

shipment to Lagos and local custom 

clearing. Auto buyers can save up to 

35% as compared to local car prices 

when they bid, buy and ship through 

Import Your Car Nigeria. 

Licensed both by the government 

and major auto auction companies 

in the United States and Canada, 

Import Your Car Nigeria offers professional 

advice and act as your one 

point contact locally in Nigeria. 

Speaking at the launch, Ada Atoba, 

general manager, sales & operation 

of Import Your Car Nigeria, said 

the primary aim of the company is to 

enable more Nigerians own the car of 

their choice based on their budgets. 

According to the general manager, 

“Our drive is based on the need 

to create alternatives that are reliable, 

affordable and assuring to auto buyers. 

So, our main drive is service especially 

with the constant increase in 

the cost of acquiring decent automobile 

vis-a-vis the purchasing power of 

Nigerians”, she said. 

In her words, “We see our relationship 

with our fleet and individual 

clients more as partnership as 

against just business relationship. We 

want you to get the best deal on your 

automobile of choice, be it for private 

use, commercial use, retail purpose 

or organizational use. Hence, it is 

almost impossible to beat our deals. 

We advise, support and, deliver value 

satisfactorily.” 

On the procedure of purchasing 

a vehicle through IYCN, Atoba said: 

“it’s just a simple process. First it’s 

either you visit our website site www. 

importyourcar.ng, call 08021-811- 

811 or visit our corporate office in Lagos 

Nigeria at Suite 212, Ikeja Plaza, 

81 Mobolaji Bank Antho ny way Ikeja 

Lagos’’. 

Customers are to visit the company’s 

website www.importyourcar.ng 

and fill out the customer order form 

to be accompanied by a refundable 

commitment fees and subsequently 

expect a response from IYCN within 

one to two days business days with 

three options of the preferred car, 

the location, sales mode either, buy it 

now or bid options. 

The company official stated that 

some of the car dealers and customers 

that have patronised the services 

of IYCN have variously described the 

company as “a solution to owning a 

car of choice”. 

She declared that IYCN want to 

be the leading source of automobile 

acquisition and importation in 

Nigeria and West Africa, making life 

easier for auto buyers and optimistic 

that the company targets to account 

for 10% of entire vehicles imported to 

Nigeria. 

‘’We agree on our max bid taking 

into consideration all costs to Lagos 

plus customs clearance cost. And 

with your go ahead, we bid or buy on 

your behalf and arrange all logistics 

to get your car to Lagos. Typically, 

delivery to Lagos after buying and 

paying for lot ranges between 45-60 

days’’. She concluded. 

New Ikeja bus terminal to move... 

Continues from page 25 

food court, waiting lounge, Wifi 

and other internet and communication 

facilities. 

The Ikeja facility is part of the 

massive and aggressive bus reform 

strategic plan that will also 

see to the construction of other 

13 different bus terminals which 

will employ an estimated 3000 

youths in the state. 

As at the time of filing this 

report, BusinessDay was told 

that 800 buses scheduled to be 

assembled and imported from 

Brazil and designed to suit the 

Nigerian road conditions are to 

be purchased and injected into 

the transportation project by the 

middle of the year. 

The commissioner added that 

the state government is coming 

with multimodal and integrated 

transportation system which will 

take care of about four million 

people on a daily basis across the 

state to cater for Lagos residents 

of especially lower and middle 

classes, who cannot afford to 

fund their own cars every day. 

He noted that the state’s 

growth was exponential as an 

emerging megacity and Nigeria’s 

premier economic centre, saying 

that “Lagos, no doubt, requires 

an integrated transport system 

to meet the demand of its over 

20 million citizens and fulfil its 

aspiration as Africa’s foremost 

business and entertainment 

city.” 

The commissioner further 

explained that the state Gov. 

Akinwunmi Ambode was passionate 

to provide residents with 

transportation system of international 

standards which would 

be responsive to the core need 

of Lagos residents and teeming 

visitors. 

Also speaking, , Biodun Otunla, 

managing pirector, Planet 

Projects said that the country has 

paid less attention to transport 

in the country, adding that the 

Ikeja terminal bus is the flagship 

and will move more than 200,000 

passengers daily.The Ikeja terminal 

bus is sitting on a land size 

of 10,000 square metres. 

While responding to questions 

from the newsmen, Biodun 

Otunla, managing pirector, 

Planet Projects lamented that 

the country has for a very long 

time paid less attention to transport 

needs in the country, adding 

that the Ikeja terminal bus is 

the flagship and will move more 

than 200,000 passengers daily. 

The terminal bus is sitting on a 

land size of 10000 square metres.


C002D5556 

BUSINESS DAY 

27 

Local and global rail news as it breaks 

Lagos-Badagry rail project idles as gridlock persists 

…Business opportunities along the corridor stalled 

Stories by MIKE OCHONMA 

The slow pace of work on the 

on-going Lagos-Badagry blue 

rail project linking Marina 

and Okokomaiko to meet with the 

set out integrated transportation 

initiative of Lagos state and the lack 

of push to deliver it on record time 

has been described as one of the 

factors piling up traffic along the 

corridor which has become a recurring 

decimal. 

As at the time of filing this report, 

BusinessDay’s transport reporter 

who drives through the corridor can 

authoritatively report that hoodlums 

and destitutes have taken over 

the newly constructed rail terminals 

along the Lagos-Badagry expressway. 

The goal of the rail project is to 

reduce traffic gridlock in the Lagos 

metropolis by providing additional 

passenger capacity along the 

Okokmaiko to Marina corridor to 

facilitate development of economic 

activities as well as promote the use 

of public transportation along the 

Lagos-Badagry axis. 

Almost on daily basis are wailings 

and lamentations by road users 

crossing the rail corridor on account 

of criminals using the facilities as a 

resting place by day and sometimes 

attacking passers-by at night. 

Awarded in 2009, the project, 

handled by the China Civil Engineering 

and Construction Company, 

CCECC, and which involves 

the expansion of the previous fourlane 

highway to ten lanes as well as 

a metro rail line from Orile-Iganmu 

to Okokomaiko, is expected to be 

completed in 2019. 

The blue line rail project is a 27 

kilometer rail road with thirteen stations 

from Okokomaiko to Marina 

is undergoing construction right in 

Mitsubishi Corp subsidiary 

MTF Logistics has 

leased 62 flat wagons 

from EVR Cargo subsidiary WagonPro. 

The freightliner operated 

its first service from Willesden in 

London to Barrington near Cambridge 

delivering spoil for Lynch 

o March 22. 

They are to be used on container 

services between the Port 

of Muuga and Koidula on the 

Russian border. EVR Cargo already 

cooperates with MTF Logistics 

on two intermodal routes. 

German Rail (DB) Cargo has 

begun operating a weekly service 

carrying new cars between Kornwestheim 

in Germany and the 

Port of Barcelona. Comprising 22 

wagons with capacity for 250 cars, 

at 685m the train is the longest 

1435 mm freight service to be handled 

by RENFE, which is responsible 

for providing traction from Le 

Soler in France to Barcelona. 

Medway of Portugal is due to 

begin operating on April 4 a daily 

container service for its parent 

MSC, linking the port of Sines 

the middle of the expressway which 

government is currently expanding 

and redeveloping into a ten-lane international 

gateway. 

It would recalled that in April 

2008, the Lagos State Government 

approved ₦70 billion for construction 

of the Okokomaiko-Iddo-Marina 

Line, with an estimated completion 

date of 2011. 

However, the project suffered 

many delays due to funding shortfalls. 

The opening date was revised 

to June 2013, then December 2016, 

then 2017. As of November 2016, 

only 16 km of the 27 km Blue Line 

had been completed. 

The contract was awarded to the 

China Civil Engineering Construction 

Corporation (CCECC),[17] with 

advisory services being provided by 

CPCS Transcom Limited. 

The Blue Line will run 27.5 km 

from Marina to Okokomaiko, with 

13 stations and an end-to-end journey 

time of 35 minutes. It will operate 

over a secure and exclusive 

World rail freight news round-up 

with Sevilla in Spain and with 

capacity for 100 TEU per return 

journey. Traction Rail will be responsible 

for hauling the service 

in Spain, where customers will 

be able to undertake customs 

clearance at the terminal in Sevilla. 

As the UK government issued 

the invitations to tender 

for the West Coast Partnership 

passenger franchise, the Rail 

Freight Group published a position 

paper for stakeholders and 

right-of-way, with no level crossings 

and no uncontrolled access by pedestrians 

or vehicles. 

The route will run on the surface 

in the central reservation of the Lagos-Badagry 

Expressway between 

Igbo-Elerin Road (Okokomaiko) 

and Iganmu. The line will then be 

elevated from Iganmu along the 

south side of the expressway passing 

the junction with Eric Moore 

Road, crossing just south of the National 

Theatre to Iddo, then south to 

Lagos Island with a terminal at Marina. 

A Maintenance and Storage 

Facility (MSF) will be constructed at 

Okokomaiko, with a track connection 

from the Blue Line to the depot. 

A key element of the infrastructure 

will be a 800 meter 4-track railway 

bridge spanning the Lagoon 

from Lagos-Island to Iddo Nigeria 

Railway Corporation (NRC) Treminal 

on the Mainland. 

In the areas of investment opportunities, 

the blue line corridor 

is expected to have over 1000 station 

parking spaces. Opportunities 

exist for investors on Public Private 

Partnership basis through a design 

build operate and transfer (DBOT) 

model to provide parking along the 

whole corridor or to select a strategic 

group of parking locations. 

There will also be commercial 

advertisement opportunities on 

rail cars and electronic digital ad 

displays on passenger information 

systems. 

Electronic and print medium 

billboards at station platform areas 

and top of station buildings along the 

rail corridor. There are also opportunities 

for branded station bus stops, 

shelters and taxi parking ranks. 

Investment opportunities also 

exists to develop shopping facilities 

for fast food, newspapers and 

confectionery kiosks, flower stalls, 

vending machines, ATM Centres 

and other commercial activities 

within station concourses, and interchange 

areas to take advantage 

of passenger movements. 

bidders setting out the freight 

sector’s key requirements from 

the West Coast Main Line, which 

carries around 90 000 freight 

trains a year. RFG wants to see 

‘fair allocation’ of capacity south 

of Crewe to be released by the 

transfer of long-distance passenger 

services to High Speed 

2, while infrastructure and operations 

north of Crewe should 

‘meet the needs of all users’. 

Connected to the national 

network by 14∙2 km of new railway, 

a terminal has been opened 

to handle materials for the construction 

of Mexico City’s new 

international airport, comprising 

two unloading tracks that 

will be used by a fleet of 375 

hopper wagons hauled by 10 

locomotives. The 1∙46bn pesos 

cost of the project has been met 

by Mexico City terminal railway 

Ferrovalle and the airport authority. 

Ferroexpreso Pampeano of Argentina 

has begun movements of 

alfafa from Villa Mercedes in San 

Luis province to the port of Bahía 

Blanca, the first train comprising 

18 wagons loaded with 260 tonnes 

for export to Saudi Arabia. This 

follows a two-year programme of 

renewals on 15 km of track, undertaken 

by the San Luis provincial 

government with the aim of developing 

rail freight traffic. 

Czesław Warsewicz succeeded 

Krzysztof Mamiński as PKP Cargo 

President on March 27, and as a 

result stepped down from the supervisory 

board. Leszek Borowiec 

has been named finance director. 

Isaka-Kigali electrification 

feasibility 

study proposed 

The governments of Tanzania 

and Rwanda have 

commissioned a feasibility 

study into electrification of the 

long-planned 521 km cross-border 

rail link between Isaka and 

Kigali. 

Provisionally estimated to cost 

$2·5bn, the line is intended to 

connect the landlocked countries 

of Rwanda and Burundi with the 

inland container terminal at Isaka 

in Tanzania, which is linked to 

Dar es Salaam by an existing metre 

gauge line. 

At present, around 80 percent 

of Rwanda’s international trade 

passes through Tanzania, although 

a rail link running north 

through Uganda is also envisaged. 

Meeting in Kigali in March, 

the two countries’ transport ministers 

agreed to establish a Project 

Implementation Unit to oversee 

construction, which is expected 

to begin later this year under the 

terms of a bilateral agreement 

signed by presidents Paul Kagame 

and John Pombe Magufuli in 

January. 

According to Rwanda’s Minister 

of State for Transport Jean de 

Dieu Uwihanganye, the electrification 

study will be overseen by 

the Rwanda Transport Development 

Agency and the Joint Technical 

Monitoring Committee. 

Electric operation would reduce 

the railway’s environmental impact 

as well as permitting higher 

speeds; passenger trains would 

be able to operate at up to 160 

km/h instead of 120&nspb;km/h, 

while freight trains could be accelerated 

from 80 km/h to 120 

km/h. 

Makame Mbarawa, Tanzania’s 

Minister for Works, Transport & 

Communication said that open 

tenders would be called for construction 

of the cross-border line. 

With tendering expected to take 

‘at least three months’, he hoped 

that a preferred bidder could begin 

mobilisation in August. ‘We 

believe that the foundation stone 

will be laid in October’, he anticipated. 

With the cross-border line to 

be built to 1,435 mm gauge, Tanzania 

has initiated the construction 

of a standard gauge line to 

replace its existing network. 

Work is already underway on 

an initial 207 km section between 

Dar es Salaam and Morogoro, 

and last year state railway infrastructure 

authority Reli Assets 

Holding Co awarded a $1·92bn 

contract to Yapı Merkezi to build 

the next 336 km from Morogoro 

to Makutupora, north of Dodoma. 

This leaves a gap of around 

500 km between Makutupora and 

Isaka to be closed.


Tax Issues 

Tax amnesty: FIRS, Finance Ministry yet 

to disclose costs of generating N20bn 

IHEANYI NWACHUKWU 

In eight months to March, 

Nigeria is said to have 

generated not less than 

N20billion from 262 taxpayers 

who declared their 

assets under the Voluntary Assets 

and Income Declaration 

Scheme (VAIDS) by the Federal 

Government. 

Though the deadline for the 

Voluntary Assets and Income 

Declaration Scheme expired on 

March 31, 2018, and the overall 

success of the scheme cannot 

be measured yet, but analysts 

are asking questions on “how 

much” the Federal Government 

authorities spent in generating 

the said N20billion in eight 

month. 

While the Federal Government 

considers requests for an 

extension of the tax amnesty 

programme launched in July 

2017; it is worth noting that President 

Muhammadu Buhari had 

empowered the taxman who 

now has the will and the data to 

go after tax evaders who failed 

to take advantage of the tax 

amnesty programme. 

Federal Government aimed 

to raise at least additional $1billion 

(N360billion) into its coffers 

as tax revenue while bringing 

in 4 million new tax payers into 

the tax net. 

“On the federal level, people 

have declared and paid N20billion; 

and one thing I will let you 

know is that based on the experiences 

of other countries, usually 

people wait till the last minute. In 

terms of applications received 

at the federal level, about 262 

applications. 

“So far paid is N20billion 

and people are still in the process 

of putting together their 

facts and in the next two or 

three weeks, the figures will be 

different,” the Executive Chairman, 

Federal Inland Revenue 

Service, Babatunde Fowler said 

on a live television programme 

early last month. He added that 

the government had identified 

properties worth over N2trillion 

in Abuja whose owners were not 

paying taxes. 

Kemi Adeosun, Minister of 

Finance said that the Federal 

Government was reviewing the 

requests by the states and the 

private sector. 

“The Federal Government is 

reviewing the numerous extension 

requests by states and the 

private sector, which have cited 

some logistic challenges, such as 

non-availability of the declaration 

forms in some states and the 

declaration of public holidays 

to commemorate Easter,” the 

minister had said, adding that 

indicted individuals and groups 

still risk forfeiture of their assets 

and prosecution. 

While Nigeria’s tax amnesty 

targeted increased tax compliance 

and revenue, by deepening 

tax penetration and granted 

taxpayers a time-limited opportunity 

to regularise their tax 

status without penalty. 

“The importance of this 

scheme cannot be over-emphasised 

as Nigeria’s tax/GDP 

ratio stands as one of the lowest 

globally amid the need to shoreup 

non-oil revenue in the face of 

rising debt burden”, according to 

United Capital analysts in their 

recent commentary. 

“Earlier, the Ministry of 

Finance had insisted it will 

‘name-and-shame’ defaulters 

that did not take advantage of 

the scheme. Recent indication, 

however, suggested authorities 

are considering an extension of 

the deadline, casting shadows 

on their next move. Overall, we 

encourage the government to 

consolidate efforts to deepen 

tax revenue by balancing the 

need to send the right signal to 

defaulters and addressing the 

technical challenges hampering 

compliance”, United Capital 

analysts noted. 

Beyond VAIDS: taxpayers want clear, fair 

tax systems for improved compliance 

STEPHEN ONYEKWELU 

I 

really have no problems paying 

taxes. It is the price we pay 

for living in a civilised society 

but I have problems when 

nothing is clear. Something as 

simple as knowing when I should 

file my taxes with clear procedures 

to be found online” Majiri Otobo, 

CEO Kui Care, an indigenous 

natural hair products company 

told BusinessDay in an exclusive 

interview. 

Faced with the challenge of 

raising its tax revenue to a level 

that is reflective of the economic 

activities in the Nigeria and fluctuating 

crude oil prices taxation has 

become a necessary source of government 

revenue. To attain this, 

on July 1 2017, the Federal Government 

of Nigeria introduced its 

second tax amnesty programme 

in two years – the Voluntary Assets 

and Income Declaration Scheme 

(VAIDS). This amnesty period 

ended in March 31, 2018. 

This was a time-bound opportunity 

for taxpayers to regularise 

their tax status relating to prior 

periods in exchange for clemency 

from overdue interests and penalties 

and the assurance that the 

will not face criminal prosecution 

for tax offences. 

According to a report from 

Andersen Tax Nigeria, a multinational 

tax consulting and advisory 

firm, “while the Scheme may not 

have achieved its revenue target 

of $1 billion, it succeeded in raising 

tax awareness in Nigeria to an 

all-time high. For the first time, 

many economically active people 

who were not bothered about 

taxation started seeking guidance 

on what they needed to do 

to improve their tax compliance 

level” the report stated. 

Experts say to sustain this 

momentum, it is important for 

tax administrators to continue 

with the tax awareness efforts and 

also create efficient tax systems to 

make tax compliance easier. It is 

not enough to urge taxpayers to 

be more compliant, certain inherent 

issues such as lack of fairness, 

certainty of tax treatments, 

transparency and accountability 

should be addressed as they contribute 

to non-compliance. Also, 

taxpayers should ensure their financial 

affairs are well structured 

and appropriate records are kept 

to easily ascertain their tax when 

required. On this they need to 

consult tax professionals. 

For potential taxpayers with 

incomplete records, especially 

those in the informal sector, the 

tax laws empower the tax authorities 

with other alternatives 

apart from the available records 

to determine tax payable. The 

turnover tax approach can be 

adopted where the turnover 

can be determined, otherwise, 

a presumptive tax approach can 

be employed. 

These are discretionary 

methods but must be applied 

fairly to encourage taxpayers to 

come forward. The administrators 

should also champion the 

resolution of grey areas and inconsistencies 

in the tax laws. Even 

where the tax officials discover 

areas of non-compliance during 

an audit, the aim should be to 

correct and educate the taxpayers 

such that no further liability 

will arise on the same issue in 

subsequent tax audits. This will 

require a change in attitude of tax 

administrators. 

In advanced economies, taxation 

constitutes a major source 

of government revenue and is 

an acceptable practice among 

their citizens. Taxation is also 

employed in other ways such as 

tariffs that protect local industries 

from foreign competition, checking 

undesirable practices and 

fostering inclusive development 

through asymmetric application. 

These economies also show 

that taxation is a veritable source 

of funding for sustainable development, 

perhaps with its added 

advantage of empowering the citizens 

to demand more accountability 

from governments and as 

well constraining governments 

towards more transparency and 

efficient utilisation of funds. Apparently, 

making development 

everybody’s business fosters 

better growth. 

Tax to Gross Domestic Product 

(GDP) ratio (total tax collected 

as a percentage of the market 

value of all officially recognised 

final goods and services produced 

within a country in a given 

period), and the tax contribution 

to a country’s revenues are good 

indicators of efficient tax systems. 

In 2016, tax revenue in the 

European Union was 40 percent 

of GDP (France 47 percent, UK 

35 percent) and accounted for 

around 90 percent of government 

revenues. Tax is usually about 

26 percent of GDP in the US and 

accounts for about 85 percent of 

government revenue. 

Nigeria’s tax to GDP ratio of 6 

percent depicts the poor state of 

taxation in the country while at the 

same offering the opportunity to 

significantly increase government 

revenues. 

Business structure and tax 

implications 

Introduction 

The fallacy that taxes are 

a one-way street for organizations 

engaged 

in for-profit activities 

often unravels before them, in 

practice, when they become 

inundated with demands by 

several relevant tax authorities 

for taxes and levies collectible. 

The implication of this for businesses 

is the discovery that they 

had not properly given their 

formal business structure due 

consideration at inception. A 

case in point is a subscriber 

to a newly established business, 

who makes a U-turn, 

shortly after formal registration, 

on realizing that the firm 

has obligations to both the 

State tax authorities and Federal 

authorities as well, much 

against the original intention 

of being obligated only to one 

tax authority, as far as possible. 

For such subscriber, who 

may have originally intended 

to keep things simple, being 

caught in the web of analyzing 

transactions for purpose of 

determining which relevant 

tax authorities should collect a 

particular tax type and its associated 

filing can be unnerving. 

This, therefore, provides 

scope for practical guidance 

and proper delineation of taxes 

according to business structure. 

Business Structures according 

to the Tax laws 

The Nigerian tax system 

recognizes the profits of a trade 

or business of an enterprise as 

taxable in the hands of the individual 

who is considered the 

sole proprietor of the business. 

This type of business structure 

usually require one subscriber 

for registration with the Corporate 

Affairs Commission. 

Partnerships also fall under 

this category as the individuals 

that make up the partnerships 

of the enterprise have their 

share of profits taxed in their 

hands, as individuals as well. 

The taxation of sole proprietors 

and partnership, therefore, lie 

with the State Internal Revenue 

Service, which is within the 

purview of the Personal Income 

Tax Act. Other taxes such 

individuals may also be liable to 

pay are Stamp duties, Capital 

gains, Hotel Consumption Tax 

etc. on relevant transactions 

chargeable to such tax under 

the law. 

On the other hand, a business 

with more than one Subscriber 

and Directors may be 

a Company limited by shares 

or a publicly quoted company. 

The relevant tax authority or 

authorities such business is 

obligated for tax purpose is 

the Federal Inland Revenue 

Service and the State Internal 

Revenue Service (as the case 

may be under the operations of 

the Pay-As-You-Earn Scheme). 

Other taxes to which the 

company is obligated include 

Stamp Duties, Capital Gains, 

Value Added Tax, National 

Information Technology Development 

levy, Petroleum 

Profits Tax, Tertiary Education 

Tax etc. 

Structuring for effectiveness 

The World Bank report on 

the ease of doing business 

read with the ease of paying 

taxes by PwC still has Nigeria 

a far cry away from the set of 

Countries with leading practices. 

To complicate this further 

through lack of sensitization 

of the types of formal business 

structures available and one 

that is fit-for-purpose even 

impacts on the ability of the 

business to effectively meet its 

primary goal. 

The following are recommended 

for purpose of enlightening 

potential business 

owners vis: At CAC/FIRS/ 

LIRS: At successful completion 

of name search at the Corporate 

Affairs Commission, make 

available information about 

key statutory obligations such 

newly established business is 

likely to meet upon successful 

registration. This has become 

necessary since the Commission 

has provided the option 

to Subscribers to register their 

businesses directly without the 

aid and advisory of accredited 

agents of the Commission. 

The information should include 

all the taxes the business 

type are likely to encounter 

and filing obligations along 

with its frequency. 

At FIRS/LIRS: 

Seamlessly notify the newly 

registered business, by email 

and through other cost effective 

means, of their registration 

as taxpayers together 

with downloadable forms for 

them to fill and submit at the 

relevant tax office closest to 

their business. 

Remind newly notified 

taxpayers of the various types 

of taxes they are liable to pay, 

due dates, filing and frequency 

as well as key points of offences 

and penalties. 

Practitioners/Consultants: 

Provide advisory on the tax 

obligations of the formal business 

structure the subscriber 

wishes to register; and Do all 

things that would enable the 

new business become and 

remain tax compliant as soon 

as the business is registered. 

Conclusion 

Provision of a conducive 

business environment for a 

successful business outing 

depends more on the business 

owners than government and 

its regulatory authorities. The 

pathway for delivering this 

success in business begins 

with getting its formal structure 

right, which could very well 

serve as proxy to its business 

optimization behaviour.


In Association 

with 

C002D5556 

BUSINESS DAY 

29 

Banks credit to vulnerable 

sector, a focus for CBN 

Stories by HOPE MOSES-ASHIKE 

One of the considerations 

of the 

Monetary Policy 

Committee 

(MPC) which 

met last week was the level 

of credit to the private sector, 

which they found very low and 

unsatisfactory. 

The level of credit in the 

domestic economy channelled 

to productive private 

sector is critically below the 

levels required to place the 

economy on the path of balanced, 

sustainable, and inclusive 

growths. 

The volume of credit between 

November and December 

last year till February this 

year is put at N16 trillion. 

“For us to push for growth, 

deposit money bank must 

one way or the other be en- 

couraged to grant credit to 

those who need credit”, said, 

Godwin Emefiele, governor 

of the Central Bank of Nigeria 

(CBN). 

Addressing the media after 

the MPC meeting, Emefiele 

said the details as to the guidelines 

that will be unfolded by 

the CBN through the deposit 

money banks to increase credit 

to the private sector to catalyze 

credit in the economy will 

be made available in due cost. 

However he said it is important 

to know that CBN 

will continue to adopt more 

conventional monetary policy 

approach that will streamline 

with the Bank’s development 

finance objectives to accelerate 

credit to the week, “to 

the needy, to priority sectors 

of economy at a single digit 

interest rate with a view to ensuring 

that we play our own 

role to catalyze growth in the 

country”. 

The greatest challenge of 

the 17.3 million Micro, Small 

and Medium-Scale Enterprises 

(MSMEs) SMEs in operation 

is the poor access to 

affordable financing; leading 

to an estimated financing gap 

of about N9.6 trillion. 

“From time to time the 

banking supervision department 

that primarily supervises 

or that have direct oversight of 

the operations of banks put in 

place policies that will encourage 

credit”. 

In recognition of the importance 

of financing for economic 

growth and given its 

understanding of the implication 

of risk management in 

credit allocation, the Central 

Bank adopted a two prong 

approach to resolve the insufficient 

credit flow to the private 

sector and concomitantly accomplish 

its development 

finance function. 

The first of the two ap- 

proaches include a de- risking 

of bank lending to the private 

sector through a wide-range 

of credit guarantee schemes 

undertaken by the Bank. The 

second involves direct intervention 

initiatives in key high 

impact sectors including agriculture, 

MSMEs, manufacturing, 

and power. 

Banking sector credit to the 

private sector is expected to 

grow to N16.7 trillion in 2018, 

representing a growth of 6.34 

percent from N15.7 trillion 

recorded in 2017 according to 

FSDH Research. 

The improvement in 

the macroeconomic and 

business environment; improved 

consumers’ confidence; 

and the drop in 

the yields on the Nigerian 

Treasury Bills (NTBs) are 

the main drivers of the expected 

credit growth. 

Reeling out the achievements 

of the Bank, Emefiele 

said the sum of N393.5 billion 

had been released to 478 large 

scale agricultural projects 

since inception in 2010, even 

as the Bank was poised to 

disburse up to N400 billion at 

only 9.0 percent interest rate 

under the Real Sector Support 

Facility (RSSF), adding that the 

strategic initiative was targeted 

at projects in manufacturing 

and agriculture, given the 

mutual interdependence of 

both sectors for the complete 

industrialization of agro-allied 

business. 

Heritage Bank commits to 

sustainable growth, profitability 

Heritage Bank Plc, 

Nigeria’s Most Innovative 

Banking 

Service provider, 

has restated its commitment 

to sustainable growth and 

profitability despite the prevailing 

adverse macro-economic 

environment. 

The bank said in statement 

issued over the weekend by 

Fela Ibidapo, Divisional Head, 

Corporate Communications 

of the bank that, “Its ambition 

to emerge as a systemic important 

bank in the Nigerian 

banking industry remains its 

underlying corporate growth 

strategy.” 

According to him, the 

foundational element of its 

growth strategy: People, Partnership 

and Process have 

been recalibrated to match 

the rapidly changing needs of 

its customers especially as it 

deploys full steam retail banking 

franchise. 

He said the bank was on 

a growth track and was not 

unmindful of the headwinds 

facing the domestic economy, 

adding that it is very optimistic 

that the Heritage Brand will 

continue to soar over the current 

economic tide through its 

collective efforts to remain an 

enduring institution. 

Ibidapo said the bank 

would continue to grow by 

appealing to key client segments 

especially in the retail 

space and also focus on underpenetrated 

banking segments 

while building loyalty amongst 

the bank’s existing customer 

base. 

The statement said the 

bank was committed to building 

an enduring and resilient 

banking franchise in the 

country, remarking that in 

the midst of the seemingly 

stormy realities presented by 

events within the political and 

economic environments, the 

bank will continue to pursue 

its strategic aspiration of not 

only being stable but also being 

sustainable in earnings and 

profitability in its growth plan. 

The Divisional Head, Corporate 

Communications remarked 

that the bank was 

committed to deploying its 

resources towards the delivery 

of innovative banking solutions 

to its customers as well 

as create and transfer wealth 

to all its stakeholders. 

CIBN advocate sustained monetary, fiscal policy for economic growth 

Although the prevailing 

conditions that 

characterised the 

economic dynamics 

in 2017 assumed a positive 

trend on the average on 

international markets with 

rising stocks, Nigeria’s economic 

indices also improved 

significantly in year, which 

has necessitated the call for 

a sustained monetary and 

fiscal policies by the Chartered 

Institute of Bankers of 

Nigeria (CIBN) to sustain the 

economic growth trajectory in 

Nigeria as witnessed in 2017. 

The economy rebounded 

after five consecutive quarters 

of contraction in the second 

quarter of the year with 

a marginal growth in Gross 

Domestic Product (GDP) of 

0.6 percent. However, the 

economy grew at 1.92 percent 

(year-on-year) in real terms, in 

the fourth quarter of 2017. The 

inflation rate which peaked at 

18.72 percent in January 2017 

consistently dropped reaching 

15.37 percent in December 

2017, the lowest in 19 months. 

While rendering the report 

of his stewardship at the CIBN 

2017 Annual General Meeting 

(AGM) 2017, the president 

of the institute Segun Ajibola 

said the policies put in place 

by government are proving, as 

indicated in the World Bank 

Ease-of-Doing-Business Report 

2018, which placed Nigeria 

in the 145th position among 

190 economies, 24 positions 

better than the 169th position 

the nation ranked in the 2017 

report. 

According to Ajibola, the 

year also saw the launch of 

numerous government and 

regulatory agencies’ policies 

and initiatives intended to 

boost the Nigerian economy. 

“The CBN opened a foreign 

exchange window especially for 

Small and Medium Enterprises 

(SMEs) in order to improve 

activities of the sector. The apex 

bank also opened a special 

foreign exchange window for 

investors and exporters. The 

‘Investors and Exporters’ (I&E) 

FX Window’ was created to 

boost liquidity in the forex market 

and ensure timely execution 

and settlement for eligible 

transactions,” he stated. 

To further facilitate access 

of SMEs to finance, the then 

Acting President of Nigeria, 

Yemi Osinbajo in May 2017 

assented to the Security Transactions 

in Movable Assets Bill, 

2017 and the Credit Reporting 

Bill, 2017 as passed by the National 

Assembly. 

The CBN also sustained 

its intervention in the country’s 

foreign exchange market 

through Dollar injection in 

the year under review. As at 

August 2017, it was estimated 

that a sum of $9.964 billion had 

been injected by the apex bank 

since the intervention. This 

inflow of liquidity translated 

to significant improvements 

in domestic production as well 

as boosted revenue and profits 

for local manufacturers which 

aided the country’s recovery 

from recession in the second 

quarter of 2017. The global 

banking industry witnessed 

fundamental changes in 2017 

with Financial Technology 

(FinTech) redefining activities 

and operations in the industry. 

Although cryptocurrency had 

been around since 2009, the 

year 2017 marked its emergence 

into the mainstream.

C002D5556 

30 BUSINESS DAY Wednesday 11 April 2018 

In association with 

ag@businessdayonline.com 

Nigeria’s cassava producer status dented 

as starch, flour imports hit $654mn 

JOSEPHINE OKOJIE AND BUNMI BAILEY 

Despite being world’s 

largest cassava 

producer, Nigeria is 

among the top global 

importers of cassava 

by-products such as starch, flour 

and ethanol. 

A recent sectorial report by the 

Manufacturers Association of Nigeria 

(MAN) shows that the country 

imported a $654 million (N235.4 

billion) worth of cassava by-products 

in 2017. 

Development stakeholders 

attributed to the low quality of 

cassava flour and technology gaps in 

the processing of these by-products 


Nigeria industries have continued 

to import, starch, flour and ethanol 

in large quantities as they claim 

that not much local starch and flour 

meets their standards, saying that 

the market has failed to constantly 

supply high quality starch and flour. 

This puts pressure on the 

country’s foreign exchange reserves, 

money that could have been saved 

if the country could tap into the 

opportunities in cassava production. 

“Quality and technology are 

the major issues still driving the 

importation of these by-products,” 

said Tunde Oderinde, team leader, 

Market Development Programme 

in the Nigeria Delta (MADE), a body 

promoting Nigeria cassava value 

chain development in a response to 

questions. 

“Technology is a major issue 

and our local processors are not 

investing, most of them just go to a 

fabricator to pick things up in shelves 

without paying much attention to the 

right quality the industries who are 

users of these by-products wants.” 

“We need an integrated mill 

where the quality and granular of 

these by-products are uniform and 

consistent without having colour,” 

Oderinde said. 

According to MAN sectorial 

data, Nigeria’s demand for starch 

is put at 600,000MT and supply is 

24,000MT with imports accounting 

for 576,000MT (96 percent) yearly. 

Also, local demand for HQCF is put at 

504,000MT and supply is 60,480MT, 

with importation accounting for 

443,520MT (88 percent) yearly. 

Similarly, ethanol demand is put 

at 350 million MT and local supply 

is 10.5 million MT, while imports 

accounted for 339.5 million MT (97 

percent) yearly. 

Starch and cassava flour are used in 

many across food and beverage firms 

for the production of caramel, biscuits, 

bread and confectioneries. It is also 

used in pharmaceutical and non-food 

industries such as batteries firms, gum 

and super glue, among others. 

“We in the pharmaceuticals 

industry import heavy tonnage of 

corn starch because the modified 

cassava starch does not meet up with 

the acceptable pharma standards,” 

Orimadegun Agboade, chairman 

and managing director, Orfema 

Pharmaceutical Industry Limited 

told BusinessDay. 

Union Dicon is one company 

showing massive interest in starch, 

having acquired 15,000 hectares of 

land in Ebonyi to produce cassava, 

starch and other food products. 

“Nigeria mostly operates in the 

upstream cassava sector rather 

than the downstream, which limits 

advantages the country can get,” 

AfricaFarmer Mogaji, CEO, X-Ray 

Farms Consulting Limited said. 

“The price of fresh cassava tuber 

from the farm is higher than the price 

of imported processed cassava chips. 

Our cassava yield is still low even if 

we are the largest producers, there 

is no equipment for planting and 

harvesting,” Mogaji said. 

“We need to competitive and 

this requires a lot of investments in 

the various value chains. We need 

to increase the productivity of our 

smallholder farmers from an average 

of 12 metric tons per hectare to 24 

metric tons per hectare to drive 

down the price of fresh tubers, 

thereby making our by-products 

price competitive,” he added. 

Nigeria is the largest producer of 

cassava in the world with about 46 

million metric tonnes and an average 

yield per hectare between 10.6 to 15 

metric tonnes. 

The biggest challenge confronting 

farmers is low yield per hectare. 

“Farmers are not getting the yield 

they are supposed to get and this 

makes them not to break even. If 

the production of cassava is not 

attractive, farmers will not expand 

their production areas,” said Abdulai 

Jalloh, project leader, African Cassava 

Agronomy Initiative. 

He said that some of the limiting 

factors to increased productivity in 

cassava production are poor weed 

control and high cost of farm inputs. 

Research across the globe show 

that some countries have started 

using micro-nutrients to upscale 

cassava yields to about 100 metric 

tonnes per hectare with starch 

content of cassava up-scaled to 38 

percent in Indian and 40 percent in 

Malaysia. 

Jalloh stated that If Nigeria must 

take advantage of the high potentials 

in cassava production; farmers need 

varieties with high starch content, 

adding that government must initiate 

policies that would boost cassava 

production in the country. 

Cassava requires less labour than 

all other staple crops. However, it 

requires considerable post-harvest 

labour because the roots are highly 

perishable and must be processed 

into a storable form soon after 

harvest, experts say. 

Drip irrigation seen as solution to dry season farming challenges 


As effect of the dry season 

begins to take its toll 

on cultivated farmlands 

across the country, 

farmers have been urged to 

embrace drip irrigation method 

as a way out of the challenge and 

deliver better crop yield. 

“Undoubtedly one of the most 

critical issues at the onset of the 

dry season beside insects and 

pests is the question of irrigation. 

And it is the same headache with 

every farmer at this period of the 

year whether large, medium or 

the small holder farmer. I believe 

drip irrigation provides the best 

solution to this problem,” Oscar 

Walumbe, integrated country 

project manager, Dizengoff Nigeria 

said on sidelines of the recent 

farmers’ summit held in Abuja. 

“Drip irrigation offers the 

most cost effective and efficient 

irrigation method that can be 

adapted by farmers across the 

country whether large, medium 

or small holders, to address the 

perennial problem associated 

with dry season farming. It is 

one sure method if well managed 

that guarantees all year round 

farming to enable increased crop 

production as well as deliver better 

crop yield” Walumbe said. 

He posited that the method 

holds the proverbial magic key 

as “the most efficient and cost 

effective method capable of 

ensuring better crop yields for the 

Nigerian farmer.” 

The drip method allows water 

to drip and drop from pipes 

running through the farm. The 

process helps to conserve water 

and properly pass moisture to 

soil and thereby boost yield. It 

also makes even distribution 

of fertilizers to crops possible 

through the process of fertigation. 

Underlining the advantages 

of the drip irrigation system 

propagated by Dizengoff, Walumbe 

disclosed that beside its simplicity 

in terms of installation, “it is 

gravity operated with heavy duty 

drippers with wide water passages 

to prevent clogging. 

“It uses water in the most 

efficient way, it is flexible and 

suitable to adapt to different water 

sources. It is equally adaptable to 

any soil and weather conditions, 

just as it enables fertigation - that 

is the process by which fertilizers 

are applied through the irrigation 

system. 

Walumbe who drew attention 

to the increasing devastating 

impact of changes in the weather 

predicted more difficulties in the 

environment and urged farmers 

to move away from dependence on 

rain fed agriculture and embrace 

irrigation farming, as the way out 

the challenges ahead. 

“Changes in the weather are 

increasingly making it difficult 

to plan farming tasks with any 

certainty, and this on its own has 

huge impact on production. I would 

expect that farmers will take that 

decision to embrace the irrigation 

method, in this instance the drip 

system which is cost effective and 

actually more efficient farming 

method,” he added. 

No plastic fish in Nigeria, says NAFDAC 

LAIDE AKINBOADE-ORIERE 

The National Agency 

for Food and Drug 

Administration and 

Control (NAFDAC), on 

Friday denied the circulation of 

plastic fish in Nigeria. 

In a statement issued by 

NAFDAC Abuja, the regulatory 

agency said, after a thorough 

investigation and analysis of some 

suspected plastic fish samples in 

her laboratory, it was discovered 

that there is no such fish in Nigeria. 

According to the agency, the 

investigation was triggered by a 

report from a Nigerian consumer 

in Abuja that he bought a fish and 

discovered that it refused to cook 

when it was set on fire for several 

minutes. 

“The suspected sample of the 

fish after thorough investigation 

was confirmed to contain protein 

and fat which is normal for fish,” 

the statement states. 

“The fish was however found to 

be unwholesome due to serious 

bacterial contamination,” the 

statement added. 

NAFDAC therefore, encourages 

Nigerians to watch carefully the 

kind of fish they buy, it is, however, 

important to stress that there is no 

plastic fish in Nigeria. 

It would be recalled that few 

weeks ago, there has been the 

circulation of suspected plastic 

fish in some parts of the world 

in the social media. There is, 

however, no single case found in 

Nigeria so far. 

NAFDAC therefore, call on 

Nigerians to report any suspected 

unwholesome product including 

fish to the nearest NAFDAC office 

for further investigation.

Wednesday 11 April 2018 C002D5556 

BUSINESS DAY 31 

ag@businessdayonline.com 

Stakeholders launch Nigeria’s version of RSPO for oil palm 


Stakeholders in the 

Nigerian oil palm industry 

have launched the 

national interpretation 

of the Roundtable on 

Sustainable Palm Oil (RSPO) for 

the country. 

RSPO requires palm oil 

producing countries to develop their 

respective national interpretation 

of the RSPO principles and criteria 

which stakeholders in the oil palm 

supply chain would be accessed and 

endorsed for RSPO certification. 

For Nigeria oil palm firms to be 

able to source finance from financial 

institutions and the International 

Finance Corporation (IFC), it must 

have the RSPO certification, which 

is a requirement for them. 

“The RSPO is developed by a 

set of principles and criteria that 

defines practices for sustainable 

palm oil production. These 

standards address the legal, 

economic, environment and 

social requirements of producing 

sustainable palm oil,” Fatai Afolabi, 

facilitator, RSPO Initiative Nigeria, 

said at a recent press briefing held 

in Lagos. 

“This would ensure that oil palm 

plantation owners minimise their 

environmental footprint and that 

basic rights of local land owners, 

farm worker and indigenous people 

are fully respected,” Afolabi said. 

According to the Stakeholders in 

the palm oil supply chain, the RSPO 

national interpretation will help 

build sustainability in the country’s 

palm oil industry. 

Since losing its position as one 

of the world’s largest palm oil 

producers, efforts are being geared 

to ensure that the country takes 

back its place in the comity of 

crude palm oil producing nations 

and one of such ways is the launch 

of the country’s RSPO national 

interpretation. 

“We need to start producing 

palm oil in a sustainable way if 

we are to take back our position 

in global palm oil production,” he 

said. 

Nigeria currently produces 

about 970,000 metric tons of 

CPO, while local consumption is 

estimated at 2.7 million tons per 

annum, indicating an estimated 

demand-supply gap of over 1.7 

million MT. 

Ogun poultry farmers seek government incentives 

...accuses SON of complicity in production of substandard feeds 

RAZAQ AYINLA, Abeokuta 

Worried by unfavourable 

attention given to local 

poultry production in 

the country, farmers 

under the auspices of Poultry 

Association of Nigeria, Ogun State 

(PANOG) have requested government 

at all levels to assist farmers with 

incentives to help develop the 

country’s poultry value chain. 

The call to develop the entire 

value chain of poultry production, 

according to PANOG was borne 

out of sincere desire to grow the 

subsector from the production of 

quality feeds at reasonable prices 

which would jerk up production, 

reduce prices of eggs and chickens, 

and serve as a natural panacea to 

imported poultry products. 

Speaking at an interactive session 

aimed at ‘Providing Optimum Feed at 

Optimum Price’ which was organised 

by PANOG recently in Ijebu-Ode, 

Blessing Alawode, chairperson, 

explained that smuggling of imported 

poultry products was possible when 

the production capacity of poultry 

farmers in the country is too low and 

the prices are not competitive. 

“Government needs to offer 

incentives for farmers who produce 

soya beans and other inputs that 

are used for poultry feeds and 

other industrial purposes, to help 

feed producers drive down their 

production cost which translates to 

other value chain in the subsector,” 

Alawode said. 

She declared that the less 

attention paid to poultry industry 

by government remains the major 

challenge facing the industry and this 

is affecting pricing which is making 

Nigeria’s poultry products less 

competitiveness at the international 

market. 

Alawode stated that until cogent 

incentives in form high-yielding 

soya bean seeds and farm produce 

that form part of poultry feeds 

ingredients, unhindered access to 

farm implements and provision of 

other relevant infrastructure, the 

production capacity of farmers would 

remain same and the smuggling of 

imported poultry products would 

rise again due to low production 

capacity. 

“There should be high-yielding 

seeds and seedlings to farmers, in 

that respect, the focus of government 

should not only be on rice and other 

food crops, but there should be 

holistic approach to all farm produce 

and agricultural production that are 

used for the production of other raw 

materials and goods. 

“In Ogun State for instance, the 

government has acquired tractors and 

farm implements which are located in 

Local Government Secretariats but for 

the farmers to get these implements 

for agricultural purposes, it is hell. 

“That is why we call on 

government to help us and being 

about policies that addresses all 

these challenges,” she added. 

James Durosaro, Animal and 

Poultry Nutritionist, who was one of 

discussants, accused the Standards 

Organization of Nigeria (SON) of 

not leaving to expectations in terms 

of standards and regulations on 

poultry feeds, as all sorts of feeds 

are allowed into the market which 

affects production of quality eggs 

and chickens. 

He stated that if SON has been 

given proper monitoring such act 

ought to have been prevented. 

“In US, we have maize grade I, 

maize grade II, but in Nigeria, there 

is nothing like that. Anybody can 

just supply anything without proper 

checking. For instance, Nigeria has 

the best soya in the whole world, yet 

it is being exported and what we have 

is Genetically Modified (GMO) to 

replace the one we have. 

“In most cases, SON do more of 

theoretical aspects in monitoring. If 

proper monitoring has been in place, 

a lot of manufacturers would have 

been charged to court,” Durosaro said. 

Cadbury Nigeria launches healthy lifestyle 

programme for children, families 

Cadbury Nigeria Plc has 

announced the launch 

of a healthy lifestyle 

programme aimed 

at bringing nutrition education, 

active play and fresh foods to at-risk 

children and their families in Nigeria. 

Cadbury Nigeria joins nine 

other countries in the Mondelez 

International family in this initiative, 

which will involve a $50million 

multi-year commitment to promote 

healthy lifestyles and address obesity. 

In a statement, Amir Shamsi, 

managing director of Cadbury West 

Africa, said it was the first-ever 

Mondelez International Foundationfunded 

effort in Nigeria. 

“The programme, which will run 

over a three-year period, is targeted 

at nearly 6,000 children and families 

in nine schools. It will operate in 

Cadbury Nigeria (Ikeja and Ondo) 

and focus on nutrition and healthy 

lifestyle,” he said. 

Shamsi stated that the foundation 

would partner Helen Keller 

International to teach about 6,000 

children the importance of proper 

nutrition, physical activity and 

gardening through in-school and 

after-school activities. 

“Making a positive impact on 

the people and the planet is at the 

core of who we are,” added Sarah 

Delea, president of the Mondelez 

International Foundation, in a 

statement. 

“Since 2012, our partners and 

their programmes have been 

transforming the lives of more than a 

million children around the globe by 

increasing their nutrition knowledge, 

physical activity and access to fresh 

fruits and vegetables. The addition 

of seven new programmes further 

builds on our commitment to help 

communities thrive and improve the 

well-being of school-age children 

and their families.” 

Speaking on the partnership, 

Kathy Spahn, president and CEO 

of Helen Keller International, said: 

“We are proud to partner again 

with the Mondelez International 

Foundation to implement nutrition 

education and healthy lifestyle 

projects in Nigeria. We came together 

in Indonesia to improve the wellbeing 

of children and their families. 

We’re excited to now bring our 

combined expertise to Nigeria to 

encourage and instil healthy habits 

in children from an early age.” 

Cadbury Nigeria has a rich 

heritage of robust corporate social 

responsibility (CSR) programmes, 

and has, for decades, been supplying 

potable water to its immediate host 

community in Agidingbi, Ikeja, 

Lagos State, Nigeria, among other 

initiatives. 

Edo LGA plans oil palm plantation to boost revenue 

IDRIS UMAR MOMOH, Benin 

Ok oro Ekogiawe 

Sylvester, chairman 

of Orhionmwon Local 

Government Council, 

has promised to increase the LG 

owned palm oil plantation by 10,000 

hectares to boost revenue. 

Sylvester, who gave the hint 

in Abudu, the administrative 

headquarters of Orhionmwon, 

during an interactive session with 

some senior staff of the council also 

promised to secure 20,000 hectares 

of land for the cultivation of plantain, 

cassava, coco yam and maize. 

He said the gesture was part 

of his administration priority to 

revamp the economic fortune of 

the council through sustainable 

agriculture. 

The chairman promised that 

the management of Presco Plc and 

Okomu oil Plc will be approached 

with a view to improve on the existing 

council palm oil plantation, adding 

that milling machines would be 

installed at the already existing 

council palm oil plantation in Abudu. 

While noting that the locality 

is predominantly farmers, he 

added that the indigenes will be 

encouraged to be more focus in 

their farming, while government will 

provide the enabling environment. 

He also added that investors will 

be encouraged to take advantage of 

the abandoned farm lands in the 

locality to invest in any area of the 

agricultural sector. 

The council boss, who however 

warned that his administration will 

not tolerate idleness and laziness, 

noting that the only way for the 

council to be less dependence on 

the monthly allocation from the 

Federal Government is to invest in 

agriculture and agribusiness.



C002D5556 

E-mail: insurancetoday@businessdayonline.com 

Making Nigeria’s micro insurance initiative an 

adaptation mechanism for the underprivileged 

Stories by 

Modestus Anaesoronye 

A 

the nation’s insurance 

industry firms 

up arrangements and 

licensing protocols 

to kick start micro 

insurance in Africa’s largest 

populated country, experience 

across other markets are providing 

the needed guidance for easy 

take off. 

According to experts, micro 

insurance will pave the way 

that will not only bring the poor 

out of poverty, but also sustains 

them above the poverty line and 

support market growth. 

They also believe that to meet 

the needs of the customers and 

drive the business profitably 

remains the greatest challenge 

faced by those in the development 

and financial inclusion 

community. 

Feelers from the market show 

that, a number of conventional 

insurers are looking at how to 

come into the main stream micro 

insurance business in line 

with the National Insurance 

Commission’s policy guidelines. 

According to sources while 

about five new firms have put 

in preliminary application for 

licensing, not up to three conventional 

players have resolved 

to get new license. 

During a workshop Increasing 

Access to Inclusive Insurance, 

co-organised by the MiN 

and the Pakistan Microfinance 

Network (PMN) last week, Michael 

J. McCord, Managing 

Director of the MicroInsurance 

Centre at Milliman, emphasised 

how the use of insurance could 

bring about change to the underserved, 

and the need to create 

products that help protect 

their interests. 

Understanding the client and 

their needs is crucial, and a lack 

of this often leads to misconceptions 

in product design, which is 

ultimately detrimental to both 

the client and provider. That 

is why microfinance providers 

have been identified as a stakeholder 

well-placed to develop 

suitable and affordable products 

for clients and insurance companies, 

using their proximity 

with and knowledge of the target 

client to ensure tailored and effective 

products. 

Katharine Pulvermacher, 

executive director of the MiN, 

gave an overview of the role of 

the microinsurance industry 

globally and within the Pakistani 

context, emphasising how inclusive 

insurance provides crucial 

underpinning for sustainable 

development. 

It is designed to meet the 

needs of emerging consumers 

and plays a critical role in 

preventing households from 

falling back into poverty after 

a financial shock. It is therefore 

an important enabler in the 

economic and social development 

of a country and in the 

achievement of the United Nations’ 

Sustainable Development 

L-R: Richard Borokini, DG, CIIN; Sian Fisher, CEO Chartered Insurance Institute UK; Funmi Babington-Ashaye, President 

Chartered Insurance Institute of Nigeria; Ladipo Ajayi, past president, CIIN; Yeside Oyetayo, rector, College of Insurance & 

Financial Studies and John Bissell, COO, CII UK during Collaboration meeting between Chartered Insurance institute of Nigeria 

and Chartered Insurance Institute, UK recently in London. 

Goals (SDGs). 

As a risk mitigation strategy 

microinsurance is a tool that 

can considerably reduce losses 

for low-income people and 

provide solutions that are accessible, 

affordable and sustainable. 

She further highlighted 

how the growth of the inclusive 

insurance sector needs to be 

supported through the development 

industry infrastructure 

including data collection and 

research. 

The panelists highlighted the 

importance of client awareness 

and designing simple products 

that generate value. 

Roshaneh Zafar, founder 

and managing director of Kash 

Foundation, explained the rationale 

for introducing micro-health 

insurance products. 

Kashf Foundation, Pakistan’s 

largest microinsurance program, 

with over 1.5 million lowincome 

individual policy holders, 

contributes to 29 percent of 

the total microinsurance market 

in Pakistan. 

Roshaneh accentuated the 

need for client awareness and 

education and shared the tripartite 

view of the benefits drawn 

from the provision of microinsurance 

to the clients, microfinance 

providers and insurers. 

She highlighted how the three 

need to work together in order 

to develop successful products 

that create value. 

Rehan Butt, group business 

director of MicroEnsure briefed 

the guests on the global success 

of MicroEnsure achieved 

by designing of simple, value 

driven but robust products and 

distribution channels to deliver 

insurance products along with 

value added benefits that also 

generate client awareness. 

Babington-Ashaye led-CIIN advances collaboration with CII 

London on human capital development for industry 

Collaboration towards 

building required human 

capital that will 

remain relevant and 

contribute to the emerging developments 

in the global insurance 

market has received a boost, following 

a strategic meeting between 

the Chartered Insurance 

Institute of Nigeria (CIIN) and 

the Chartered Insurance Institute 

(CII), London. 

Both bodies met last week at 

the London office of the CII to 

advance discussion on building 

stronger relationship, knowledge 

sharing and best practice as well 

as other areas that both bodies 

could work together to engender 

human capital development and 

education for the benefit of the insurance 

industry. 

Funmi Babington-Ashaye, 

President of the Chartered Insurance 

Institute of Nigeria (CIIN) 

who led the Nigerian delegation to 

the meeting was received by Sian 

Fisher, CEO of the CII, UK; John 

Bissell, COO and Carmen Powell, 

strategic adviser to the CEO of CII. 

After presentations by both 

bodies, they agreed on areas of 

collaboration, that will enable the 

CIIN explore options/suggestions 

from CII London in order to get 

exemptions at Advanced Diploma 

level of the CII London examinations, 

and also earn maximum 

credit points. 

Also agreed to be considered 

was collaboration for M.Sc. Insurance/Risk 

Management with 

the University of Lagos, where 

there will be exchange of already 

prepared curriculum so that the 

prgramme can be considered for 

exemptions by CII London. 

The meeting also agreed to 

look at recognising the Center for 

Insurance and Financial Manage- 

ment (CIFM) as an institution of 

prior learning 

Other areas of collaboration 

include resuscitation of staff exchange 

programme to enhance 

capacity building, as well as run 

CII certification programmes and 

train the trainers at the CIFM. 

Meanwhile, CII after the meeting 

promised to send the CIIN a 

response to all the agreed areas of 

collaboration after due consideration 

by its board. 

Carmen Powell, strategic adviser 

to the CII, CEO during his presentation 

gave a snapshot of CII 

operations in Nigeria, saying the 

UK body has only 145 members in 

Nigeria, which included 63 Associates 

and 19 Fellows. 

The institute however acknowledged 

that it had limited interactions 

with the regulator, students, 

affiliate institutes, educational organistions 

and corporate bodies in 

Nigeria. 

According to him, it is imperative 

that CII works together with 

the CIIN to grow membership in 

Nigeria since it had decided that 

Africa was key to its successful 

international operations. The CII 

seeks to double its 13,000 overseas 

membership quickly, Powell 

stated.


Pension Today 

C002D5556 

BUSINESS DAY 

In Association with 

33 

Chinedu Ekeocha: 

Banker and pension 

reform exponent 


Ralph Waldo Emerson, 

the 19th 

century American 

essayist, 

philosopher 

and poet, once said, “The 

purpose of life is not to be 

happy. It is to be useful, to 

be honorable, to be compassionate, 

and to have it make 

some difference that you 

have lived and lived well.” 

Chinedu Ekeocha, 

Managing Director/CEO, 

Diamond Pension Fund 

Custodian Limited (DPFC), 

certainly fits into the above 

description. 

Right from his early days 

in banking and for some 

whose core objectives is to 

among others ensure that 

every person who worked 

in either the Public Service 

of the Federation, Federal 

Capital Territory, States and 

Local Governments or the 

Private Sector receives his/ 

her retirement benefits as 

and when due, and ensure 

that they save to cater for 

their needs in old age. 

Ekeocha who has over 

26 years work experience 

has distinguished himself in 

management of people and 

resources, having successfully 

managed Diamond PFC 

for the last 7 years, making it 

a PFC known for high service 

quality. 

Prior to appointment 

as MD/CEO, he gained 

broad Banking and Finanvaluable 

experiences to 

the working realities of the 

roles, processes, products 

and people play in service 

delivery and efficiency. 

He is a Banking and Finance 

graduate with an MBA 

(Financial Management) 

degree, with strong affinity 

for Business Development, 

Product Development, Retail 

Banking, Banking Operations, 

Payment Cards 

and Alternative Channels, 

Strategy and Support. 

He is an Alumnus of 

the Lagos Business School 

having completed the Senior 

Management Program 

(SMP) in 2009. 

As he celebrates his golden 

jubilee, we join in congratulating 

him and wishing 

him many happy returns of 

Chinedu 

Ekeocha, 

managing 

director/CEO, 

Diamond Pension 

Fund Custodian 

(DPFC) Limited 

with his wife 

Ijeoma Ekeocha 

and their son 

Chimdindu 

Ekeocha during 

his 50th Birthday 

Celebration at 

their Residence 

in Lagos 

L-R: Iyke Nzeocha; Charles Beluonwu, MD/CEO - Chanel Investment Coy Limited; Sam Ulaikire; Chinedu 

Ekeocha, MD/CEO, Diamond Pension Fund Custodian Limited; Afam Ezekwugo; Seye Kosoko, Pastor, 

RCCG - Mercy Place, Agungi; Jude Anele, and Reginald Nnanna Anunobi during Ekeocha’s his 50th 

Birthday Celebration at their Residence in Lagos. 

time now in pension, Ekeocha, 

who turned 50 years 

recently, has been known for 

one thing: passion for helping 

others navigate through 

their challenges to be happy. 

The passion he has shown 

in the protection of people’s 

pensions has left no one in 

doubt about his love for people’s 

welfare and humanity 

in general. He has played 

creditably his own role in 

bringing stability, reliability 

and trust to the scheme, 

cial Services experience 

in various roles, such as, 

Team Lead, Operations 

Work Stream - Project 

Sparkle (An Organisational 

Change Project); Group 

Head, Cards and Channels; 

Head, Branch Operations 

Services; Head, 

Operations Diamond Pension 

Fund Custodian Ltd; 

Branch Business Manager; 

Head, Transaction Banking; 

Head of Operations. 

These positions provided 

the day. We hope he will continue 

to rededicate himself 

to the noble task of serving 

humanity through his work 

and will work assiduously to 

popularise the Contributory 

Pension Scheme(CPS) so 

that all Nigerians including 

the informal sector would 

come to embrace it as the 

surest way to secure their 

future and provide for themselves 

in old age when they 

no longer have the strength 

to work. Ad multos annos! 

Chinedu Ekeocha, MD/CEO, Diamond PFC Limited surrounded by members of his staff during his 50th 

Birthday Celebration at his Residence in Lagos. 

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 

African Insurance CEOs seek technological 

optimization to unlock market potential 

…as Continental Re CEO summit goes to Namibia 

Stories by 


No fewer than 

100 insurance 

CEOs 

and regulators 

are at 

Strand Hotel in Swakopmund, 

Namibia for the 

5th CEO Summit organised 

by Continental’s Reinsurance 

to look at how 

technology could transform 

insurance business 

in the continent. The 

theme of the summit is 

“Insurance and adaptation 

in the face of technological 

change in Africa”. 

The Continental Re’s 

CEO Summit is hosted in 

different countries each 

year, and this is the first 

time it’s being held in Namibia, 

with epresentation 

from over 20 African countries 

(both Anglophone 

and Francophone). 

Speaking at the Summit, 

Femi Oyetunji, group 

managing director, Continental 

Re noted, “This 

year, we are focusing 

on technology because 

nearly everything in business 

now is governed by 

technological advancements. 

For the industry 

to fully optimize its potentail, 

players need to 

adopt technology in all 

processes to help drive 

penetration. Historically, 

the insurance industry has 

been slow to adopt technology 

compared with 

other sectors and this is 

stifling its growth.’’ 

Charles Murito, chief 

executive officer, Google 

Kenya, gave an address 

on digital transformation 

within the insurance 

sector and noted that “to 

help drive acquisition, 

retention as well as the 

servicing of claims, insurance 

companies need 

to become fluid, seamless 

and assistive by using 

technology to enhance 

their operations.” 

According to a recent 

report by Timetrics, the 

Namibian insurance industry 

grew in terms of 

gross written premium at 

a review-period CAGR of 

L-R: Akin Ogunbiyi, chairman, Mutual Benefits Assurance Plc and Fola Daniel, former commissioner for 

Insurance at an Mutual Benefits event in Lagos recently 

10.8 percent and insurance 

penetration stood 

at 7.9 percent, which was 

higher compared to other 

African countries in 2013, 

such as Kenya (3.4 percent) 

and Morocco (3.0 

percent). 

Other topics that were 

discussed at the 2018 sum- 

mit were: the changing 

regulatory framework and 

fundamentals of instituting 

a regulatory compliance 

strategy, how players 

can catalyse insurance 

technology for sustainability 

and how players in 

the sector can optimise 

the current media environment 

for exposure. 

Since 2013, Continental 

Reinsurance has been organising 

the CEO Summit 

event every year for insurance 

industry leaders and 

other strategic stakeholders 

to network, share ideas 

and best practices. 

Continental Reinsurance 

is a composite reinsurer, 

writing business 

in more than 50 countries 

across the African 

continent. Established 

in 1985 and listed on the 

Nigerian Stock Exchange 

(NSE) in 2007, Continental 

Reinsurance provides 

support to over 200 insurance 

companies in Africa 

with its main offices in 

Nigeria, Cameroon, Kenya, 

Côte d’Ivoire, Tunisia 

and Botswana. It also has 

a specialist subsidiary – 

Continental Property and 

Engineering Risk Services 

(CPERS) – registered in 

South Africa. 

NAICOM confirms Augustine Ebose MD/CEO, Anchor Insurance 

Industry regulator, the 

National Insurance 

Commission (NAI- 

COM) has confirmed 

Augustine Osegha Ebose as 

the new Managing Director 

Anchor Insurance Company 

Limited. 

The Board of Directors 

had forwarded his name to 

NAICOM as the nominee for 

the position stemming from 

the last Board meeting and a 

thorough selection process 

anchored on the company’s 

succession plan. 

Before his new appointment 

Ebose was the company’s 

Executive Director 

overseeing the business 

and marketing chains of the 

company. 

Ebose started his working 

career with Erikana 

Nigeria Limited in 2000 to 

2001 as a Marketing Officer 

engaged in the sales 

of the company’s products. 

Thereafter, he moved to 

Alliance & General Insurance 

Company Limited 

where he served in various 

capacities from 2001 to 

2004 which he joined as 

an Executive and to rose 

to the position of Branch 

Manager due to his productive 

contributions to 

Augustine Ebose 

the growth of the company 

with his responsibilities 

covering clientele servicing, 

special risk marketing 

with emphasis on oil & gas, 

corporate and product development 

and general administration 

of the branch. 

In 2004 he moved to 

Capital Express General Insurance 

Company Limited 

as a Manager to develop 

the Public Sector, Oil & Gas 

segment by identifying and 

developing strategies to 

deepen the Company’s market 

share. 

He left the services of 

Capital Express in 2006 to 

start his business sojourn 

with Standard Alliance Insurance 

Company Plc from 

November 2006. Here, he 

garnered extensive experience 

and created a niche 

for himself in the market. 

Augustine started as Deputy 

Manager/Group Head; Public 

Sector saddled with the 

responsibility of starting 

and developing the Public 

Sector Group to enviable 

level and identifying 

business opportunities for 

the company and was promoted 

to Manager Public 

Sector, Oil & Gas & Telecoms 

in 2007. 

In the same year 2007, 

he was again upgraded to 

Principal Manager/Divisional 

Head, Public Sector, 

Energy and Technical due 

to his knack for success 

and achieving set targets 

with the added function of 

formulating corporate and 

product developments. 

In 2008, he was elevated 

to Assistant General Manager/Divisional 

Head, Public 

Sector, Energy & Telecoms, 

and rose to the position 

of General Manager/Divisional 

Head, North & South- 

West regions overseeing 

Public Sector, Energy, technical 

and Emerging Markets 

as a result of his outstanding 

results and expansion 

of these portfolios. He left 

the service of the company 

in December 2016 to join 

Anchor Insurance Company 

Limited as Executive Director, 

Business Development 

and Marketing. 

Augustine is a graduate 

of Delta State University, 

Abraka and University of 

Ado -Ekiti, Ado-Ekiti where 

he obtained B.Sc (Economics) 

and MBA (Business Administration) 

respectively. 

He is awaiting his formal 

graduation for a Doctorate 

Degree in Business Management 

from University of 

Liverpool, Liverpool, United 

Kingdom. 

He is a member of several 

professional associations 

amongst which are Chartered 

Insurance Institute of 

Nigeria (CIIN), Chartered 

Institute of Stockbrokers 

(CIS); and has attended 

courses and seminars locally 

and overseas amongst 

which are Executive Management 

course at the Lagos 

Business School and Management 

Course for CEOs 

at South African Academy 

of Learning, Pretoria. He is 

happily married with children. 

Insurance Underwriting and Communication: 

How to maximize your insurance benefit 

Chukwuedo 

Lack of proper understanding 

about the 

operations of insurance 

companies are 

why many people still do 

not trust or want to take up 

insurance policies. 

If you have at least basic 

knowledge of how insurance 

runs, filing of claims, 

do’s and don’ts in insurance, 

then you will find out that 

insurance is not different 

from any other contract 

out there. 

This therefore means 

that if you pay your premium 

promptly, and keep your 

own side of the contract, you 

will enjoy the benefit of an 

insurance service. 

The book, ‘Insurance 

Underwriting and Communication’ 

written by Etemmua 

Chukwuedo, an insurance 

professional provides 

insight into key aspects 

of the business and how 

consumers can equip themselves 

with necessary skills 

to enjoy the full benefit of 

insurance. 

After more than 30 years 

in the insurance industry, 

Chukwuedo who believes 

that knowledge gap is the 

obstacle to insurance penetration 

in Nigeria said “The 

aim of writing this book is 

to enlighten the populace 

about what insurance is all 

about and why insurance 

should be incorporated 

into personal, family, corporate 

body or government 

budgets. 

“The book will be of immense 

benefit to anyone 

desirous of getting information 

about insurance. 

It would provide anyone 

information concerning 

where to go for better services, 

how to go about it and 

how to get premiums that 

will be cost effective”. 

To providers of the service, 

Chukwuedo noted that 

the book will be invaluable 

for underwriters, marketers, 

insurance students, agents 

and everyone who wishes 

to know what insurance is 

all about.


BUSINESS DAY 

35 

SHIPPING LOGISTICS MARITIME e-COMMERCE 

Foreign investors seek opportunities 

in $450m Tomaro Industrial Park 

…As promoter targets to complete first project in nine months 

Stories by 

UZOAMAKA ANAGOR-EWUZIE 

There are indications 

that investors 

from China 

and Europe have 

expressed intention 

to buy into the vision 

and goals of the promoter of 

the $450 million Tomaro Industrial 

Park and Free Trade 

Zone, by seeking out possible 

investment opportunities in 

the zone. 

Tomaro Island, which was 

officially granted a Free Trade 

Zone (FTZ) status in 2017 by 

the administration of President 

Muhammadu Buhari, 

is an industrial zone with a 

number of investments covering 

the oil and maritime sectors, 

especially in the areas like 

ship building yard, strategic 

oil tank farm, 20,000 barrel 

per day modular refinery and 

hotels. 

The FTZ will be designed 

on the Western side to attract 

people who will be into 

manufacturing; they can bring 

in raw materials, manufacture 

and export outside Nigeria 

without paying duty and can 

only pay duty, if they export 

into Nigeria. 

“There are investors, who 

were in discussion with us 

and they want to buy into 

the vision that we have in 

Tomaro. When the American 

government gave us the grant, 

investors mostly Chinese and 

Europeans sent in letters of 

intent to do business with us 

L-R: Emmanuel Ihenacho, chairman of Integrated Oil and Gas; Eloho Francis, senior manager of 

NEPZA; Uchenna Ihenacho, group project manager of Integrated Oil and Gas and Darki Yakuba, 

assistant comptroller, Customs and Excise, headquarters Abuja, during an inspection visit to the 

Tomaro Free Zone in Lagos by officers of the Nigeria Customs Service (NCS), recently. 

but at that time we were not 

keen because we were still 

trying to get all our approvals 

in place and sorting out other 

issues,” Emmanuel Ihenacho, 

chairman of Integrated Oil 

and Gas, said last week when 

the officers of the Nigeria Customs 

Service (NCS), paid an 

inspection visit to the Island. 

As the owners of the Free 

Zone, Ihenacho said that, they 

are ready to go back to those 

proposals and give them the 

necessary attention required. 

According to him, getting 

the needed expertise in executing 

the proposed projects 

in the Island would not be an 

issue, because the company 

can get the persons that have 

skills needed to execute their 

projects. 

BusinessDay understands 

that the United State Government 

through the United 

States Trade and Development 

Agency (USTDA) gave 

the promoter of Tomaro project, 

the sum of $797,343 from 

its Industrial Development 

Grant. 

The grant was said to be 

specifically used to finance 

the detailed analysis of supporting 

technologies and engineering 

for the implementation 

of the 20,000bpd crude oil 

refinery in the Tomaro FTZ. 

“Free Zones have their 

area of specialties. Some have 

facility for integrating Floating, 

Production, Storage and 

Offloading (FPSO), but in 

Tomaro, we want to build a 

slipway for our ship building 

yard as well as modular 

refinery. The yard will build 

and repair ships, starting from 

smaller vessels to building 

bigger ones in the future. We 

are doing this because Nigeria 

has, for a very long time 

wanted to be a builder of ships 

but no facility has succeeded,” 

Ihenacho said. 

On why Tomaro is investing 

in refinery, Ihenacho said 

that Nigeria needs a lot of 

modular refineries to be sufficient 

in refining petroleum 

products for domestic use. 

The benefit of building our 

own refinery is unimaginable 

because it will help to cut 

down the cost of transporting 

the crude to refineries abroad 

and the transport to bring the 

refined products back into the 

country. 

“For instance, USA has 

developed lots of small scale 

refineries. They have about 

60 modular refineries in Texas 

alone, which is just one state 

in USA. The idea is to become 

self-sufficient instead 

of exporting crude to other 

countries and losing jobs to 

those countries. 

“So, if we are able to cut 

transport cost, the pump price 

of refined products would be 

cheaper. In building refineries, 

Nigeria will become a hub 

for selling refined oil instead 

of selling crude. This means 

that Nigeria’s economy will 

expand by attracting greater 

benefits,” he added. 

So far, construction has 

commenced at the Eastern 

side of the industrial park, 

where investment in the 

building of 30 strategic storage 

and product supply tank 

farms, will be located. 

The tank farm project consists 

of 30 tank bases with 

storage capacity of 500 million 

liters of fuel. Given the capacity, 

the Nigerian National Petroleum 

Corporation (NNPC), 

will be able to draw fuel for 15 

days from the facility when 

there is ups and down in fuel 

supply in Nigeria. 

According to Ihenacho, 

the on-going industrialisation 

in the free zone will 

create job opportunities for 

people and cause technology 

transfer for Nigerian engineers. 

“However, in the next 

nine months, there would be 

a project that would be worth 

commissioning in Tomaro 

Industrial Park. 

Aside from building an 

integration yard to enable the 

construction of oil facilities 

like the FPSO, Ihenacho said 

the Island will in the future, 

become the operational base 

of an aviation firm known as 

‘Genesis Aviation,’ which is 

housed in a lease facility in 

Ikeja, but expects to build a 

hanger in the Island for its 

helicopters. 

The Free Zone will also 

have about three to five star 

hotels for the International 

Oil Companies operating in 

the Island to house their staff 

before airlifting them to their 

various offshore bases. It will 

also have warehouses, plants, 

office and manufacturing 

facilities. 

“The shipyard will have 

multiplier effects on the nation’s 

economy because it will 

involve ship building, bringing 

revenue to the steel and oil 

industries. The best thing that 

we would have wanted was to 

develop our steel industry by 

having Ajaokuta functioning, 

but in the meantime, we can 

make do with importing the 

steel required to make the 

ship building yard operational,” 

he explained. 

Commenting, Eloho Francis, 

senior manager of the Nigeria 

Export Processing Zone 

(NEPZA), who described facilities 

in Tomaro Island as big 

move for Nigeria especially 

judging by what the modular 

refinery and tank farm facilities 

will offer to the nation’s 

economy, said the facility will 

become a hub for fuel manufacturing 

and distribution. 

She said that the Free Zone 

would not only help to address 

the reoccurring issue of 

fuel scarcity in Nigeria but also 

become a success that would 

bring investment into Nigeria. 

LADOL boss, Jadesimi wins 2018 Young African CEO Award in Abidjan 

Amy Jadesimi, 

managing director 

of the Lagos 

Deep Offshore 

Logistic Base (LADOL), has 

won the Young African CEO 

of 2018 award at the Africa 

CEO Forum held in Abidjan, 

recently. 

Jadesimi was nominated 

alongside other notable 

CEOs, but was chosen by a 

jury of pan-African professionals, 

who selected her as 

the winner. 

“Thank you for this great 

honour. LADOL is an industrial 

Free Zone in Lagos, 

Nigeria. We are best known 

for our logistics base and 

shipyard, which is one of 

the largest in West Africa. 

LADOL is committed to 

driving Sustainable Industrialisation 

and creation of 

benefits from the USD12 

trillion expected growth in 

global GDP from private 

sector pursuing sustainable 

business opportunities,” 

Jadesimi said in her acceptance 

speech 

She told the West African 

audience that LADOL 

is currently playing host 

to Total’s Egina Floating, 

Production, Storage and 

Offloading Vessel, which its 

six fabricated modules were 

being integrated into Egina 

FPSO in LADOL’s Free Zone. 

“The FPSO project is a 

game changer for Nigerian 

local content and industri- 

L-R: Dougie Brew, director, Communications, Corporate Affairs and Sustainable Living, Unilever 

Africa; Robert Karanja, B Team Africa Lead; Nadia Khamis, B Team senior manager (Regional 

Development); Stephen Chege, director, Corporate Affairs, Safaricom; Paul Polman, CEO, Unilever; 

Samuel Makoma, group COO, KCB Group; Amy Jadesimi, managing director, LADOL and Nathalie 

Delapalme, executive director, Mo Ibrahim Foundation at the just concluded Africa CEO Forum held 

in Abidjan, Ivory Coast, recently. 

alisation. This is because 

the market is now poised 

to create 50,000 new jobs 

across the country through 

increased private investment 

and development of 

high quality capacity,” she 

added. 

The AFRICA CEO FO- 

RUM, organised by Jeune 

Afrique Media Group in 

partnership with the International 

Finance Corporation, 

has over the last six 

years, become the top event 

for decision-makers and 

investors from the African 

private sector. It brings together 

over 1,000 African 

and international opinion 

leaders from more than 60 

countries.

36 BUSINESS DAY C002D5556 Wednesday 11 April 2018


37



Live @ The Stock Exchange 

Top Gainers/Losers as at Tuesday 10 April 2018 Market Statistics as at Tuesday 10 April 2018 

GAINERS 

Company Opening Closing Change 

MOBIL N170 N178.5 8.5 

DANGCEM N252 N255 3 

INTBREW N49.15 N51.5 2.35 

WAPCO N41 N42.4 1.4 

DANGSUGAR N21.45 N22 0.55 

LOSERS 

Company Opening Closing Change 

TOTAL N236.6 N233.8 -2.8 

UNILEVER N55 N53.1 -1.9 

FO N40 N38.6 -1.4 

ZENITHBANK N26.9 N26.35 -0.55 

GUARANTY N43.5 N43 -0.5 

ASI (Points) 40,499.04 

DEALS (Numbers) 4,222.00 

VOLUME (Numbers) 388,277,458.00 

VALUE (N billion) 4.208 

MARKET CAP (N Trn 14.628 

Nigeria equity market halts two-day 

losing streak, rebound by 0.17% 

MICHEAL ANI 

Activities in the 

Nigerian stock 

market saw a 

positive turn 

around, as market 

indicators on Tuesday 

rebounded by 0.17 percent, 

following gains from Mobil 

and Dangote Cement. The 

market had recorded a loss 

for two straight trading days. 

All-Share Index appreciated 

by 69.86 points or 0.17 

per cent to close at higher at 

40,499.04points compared 

to 40,429.18points it recorded 

the previous trading day. 

The appreciation recorded 

in the share prices 

of Dangote Cement, International 

Breweries, ETI, 

Lafarge Africa, and Nigerian 

Breweries were mainly responsible 

for the gain recorded 

in the Index. 

Similarly, the Market 

Capitalisation appreciated 

by N25billion or 

0.17 percent to close at 

N14.63trillion, compared 

with N14.607trillion recorded 

on Monday. 

The three most actively 

traded stocks were Sovereign 

Trust Insurance 

(82.45mn), Zenith Bank 

(43.98mn) and Skye Bank 

(37.45mn). 

An analysis of the price 

movement table indicated 

that Mobil led the gainers’ 

table with a gain of N8.50 to 

close at N178.50 per share. 

Dangote Cement came 

second with N3 to close at 

N255, while International 

Breweries increased by 

N2.35 to close at N51.50 per 

share. 

Lafarge Africa chalked 

up N1.40 to close at N42.40, 

while Dangote Sugar appreciated 

by 55k to close at N22 

per share. 

On the flip side, Total 

recorded the highest loss 

to lead the losers’ chart, 

dipping N2.80 to close at 

N233.80 per share. Unilever 

lost N1.90 to close at N53.10, 

while Forte Oil dipped N1.40 

to close at N38.60 per share. 

Zenith Bank dropped 

55k to close at N26. 35, while 

GT Bank decreased by 50k 

to close at N43 per share. 

Sovereign Trust Insurance 

was the toast of investors 

with an exchange of 

82.46 million shares valued 

at N16.53 million. 

It was followed by Zenith 

Bank with 43.98 million 

worth N1.16 billion, while 

Skye Bank accounted for 

37.46 million shares valued 

at N24.26 million. 

Flour Mills says rights issue 111% subscribed 

Flour Mills of Nigeria 

Plc has announced 

the results of its recently 

concluded 

N39.9billion Rights Issue 

of 1,476,142,418 ordinary 

shares of 50 kobo each at 

N27 per share on the basis 

of 9 new shares for every 16 

shares. 

The Rights Issue, which 

is the first and only share 

issuance under Flour Mills’ 

N40 billion Rights Issue 

Programme, was well received 

by the Company’s 

broad retail and institutional 

shareholder base, 

with a subscription level of 

111percent. 

Commenting on the 

success of the Rights Issue, 

Paul Gbededo, the Group 

Managing Director of Flour 

Mills, stated that the strong 

appetite exhibited by shareholders 

in the Rights Issue 

was a strong vote of confidence 

in the Company. 

“The Rights Issue is aimed at 

strengthening our balance 

sheet and positioning the 

Company for sustainable 

growth. We value the strong 

level of support shown by 

our shareholders and our 

focus remains on growing 

and building long-term value 

for all stakeholders”. 

Flour Mills of Nigeria will 

use the proceeds from the 

Rights Issue to settle part 

of its outstanding overdraft 

and short term debt obligations. 

The significant investor 

demand demonstrates 

the strength of the Flour 

Mills’ brand, thriving shareholder 

goodwill and robust 

access to the equity capital 

market. 

The newly issued shares 

are currently in the process 

of being listed on The Nigerian 

Stock Exchange, and 

trading of the shares will 

commence shortly thereafter. 

Stanbic IBTC Capital 

Limited acted as the Lead 

Issuing House whilst FB- 

NQuest Merchant Bank 

Limited and Zenith Capital 

Limited acted as Joint Issuing 

Houses to the Rights 

Issue. 

GTBank shareholders approve 

dividend payment 

… We will continue to lead the future of banking – Agbaje 

Iheanyi NwACHukwu 

The shareholders 

of Guaranty Trust 

Bank Plc (GT- 

Bank) on Tuesday 

April 10, 2018 at the company’s 

28th annual general 

meeting (AGM) approved 

for the Board of Directors 

to pay dividend of N2.40per 

share, which brings the 

bank’s total dividend paid 

for 2017 financial year to 

N2.70. 

At the AGM, the shareholders 

received and approved 

the audited financial 

statements of the bank 


31, 2017 and the reports 

of the directors, auditors, 

and statutory audit committee. 

Guaranty Trust Bank Plc 

recorded profit before tax 

(PBT) of N200.2billion for 

the 2017 financial year, representing 

a growth of 21.3 

percent over 165.1billion 

posted in the corresponding 

year ended December 

2016. 

This was contained in 

its audited financial results 


31, 2017 presented to 

shareholders at the meet- 

For the full year 

ended December 

2017, Lafarge Africa 

Plc declared a 

dividend of N1.50 per share 

totaling N13bn. This represents 

a 43peercent increase 

growth relative to the dividend 

paid in 2016. 

Lafarge Africa Plc notified 

the Nigerian Stock 

Exchange (NSE) and the 

general public that at the 

meeting of its Board of 

Directors held on Friday 

April 6, 2018, the Board 

resolved that subject to 

the ratification of members 

at the Annual General 

Meeting of May 16, 

2018, a dividend of N1.50 

kobo per share will be 

paid to shareholders from 

ing. 

A review of the results 

showed positive performance 

across all financial 

indices as its gross earnings 

for the year grew by 1.1 

percent to N419.2billion 

from N414.6billion reported 

in the December 2016; 

driven primarily by growth 

in interest income as well 

as e-payment revenues. 

“Given the gains recorded 

in 2017 and continuing 

improvements in key 

Segun Agbaje, managing 

director/chief executive 

officer, GTBank Plc 

Lafarge Africa to pay N13bn in dividends 

the 2012/2013 pioneer 

profit of the Company and 

not subject to deduction of 

withholding tax in respect 

of the year ended December 

31, 2017. Bruno Bayet, 

Chief Financial Officer 

Lafarge Africa Plc also disclosed 

this in a statement 

on Tuesday. 

In addition, the company’s 

recurring EBITDA 

doubled to N57.6 billion. 

The CEO of Lafarge Africa 

Plc Michel Puchercos attributed 

the strong margins 

in the Nigerian business to 

cost initiatives and more favourable 

pricing. 

Puchercos stated that 

Lafarge Africa Plc’s industrial 

operations in 2017 

were stable with plants op- 

macro-economic indicators, 

it is widely expected 

that the monetary and fiscal 

authorities will consolidate 

on the 2017 gains in 

2018,” Osaretin Demuren, 

chairman GTBank Plc 

said at the annual general 

meeting held in Lagos. 

In line with this expectation, 

the bank is 

optimistic about the future, 

as Demuren said 

the bank “will continue 

to position ourselves to 

take advantage of the immense 

opportunities in 

all the markets in which 

we operate in order to 

grow our earnings, improve 

profitability and 

deliver returns to our esteemed 

shareholders”. 

Segun Agbaje, Managing 

Director/Chief Executive 

Officer, GTBank Plc 

said, “We will continue to 

lead the future of banking, 

not just because we will 

continue to pursue technological 

advancement 

and digital capabilities 

that keep us ahead of the 

curve, but because we will 

always stay true to the values 

of hard work, transparency, 

integrity and putting 

the customer at the center 

of everything that we do.” 

erating at high reliability 

levels. He also noted that 

the energy optimization 

plan for the company has 

been successful with increased 

use of Alternative 

Fuel and Coal to offset gas 

shortages in operations in 

the West while plant operations 

in the eastern and 

northern part of the country 

relied mainly on gas and 

coal. He said these logistic, 

commercial and operational 

initiatives helped to 

sustain market share in the 

year under review. 

The expected recovery 

in the macroeconomic 

environment in Nigeria is 

likely to have a positive impact 

in the overall cement 

market in Nigeria.


BUSINESS DAY 

39



C002D5556 

Live @ the Stock exchange 

Prices for Securities Traded as of Tuesday 10 April 2018 

Company 

Market cap(nm) Price (N) Change Trades Volume Company 

Market cap(nm) Price (N) Change Trades Volume 

PRICES FOR MAIN BOARD SECURITIES (Equities)


Abacha loot: Adeosun refutes reports 

on over $16m payment to lawyers 

HARRISON EDEH, Abuja 

Nigeria’s minister 

of finance, Kemi 

Adeosun, has refuted 

claims that 

payment of over $16 million 

was made to lawyers working 

with the Federal Government 

on the restitution of Abacha’s 

loot being facilitated by the 

Swiss government. 

Adeosun, refuting the 

claim in a statement issued 

by Oluyinka Akintunde, her 

media assistant on Tuesday, 

refuted the claim in some 

section of the media that fees 

were paid to two lawyers for 

the recovery of Abacha funds. 

Adeosun said in the statement, 

“The attention of the 

Honourable Minister of Finance, 

Kemi Adeosun, has 

been drawn to false media 

reports of a “strongly-worded 

letter to the President” objecting 

to the payment of $16.9 

Buhari seeks Senate’s approval for 26 nominees 

OWEDE AGBAJILEKE, Abuja 

President Muhammadu 

Buhari has 

sought the approval 

of Senate for the confirmation 

of appointment of 

26 nominees. 

The nominees include: 

23 federal commissioners 

for the National Population 

Commission (NPC), two 

non-legal practitioners as 

members of the Federal Judicial 

Service Commission 

and one national commis- 

CHANGE OF NAME 

I, formerly known and addressed 

as Daniel Wills Osagie now wish 

to be known and addressed as 

Daniel Osagie. All former documents 

remain valid. General Public 

please take note. 

CONFIRMATION OF NAME 

This is to inform the general 

public that Edefu Ikenna 

Azubuike and Onwunabon 

Ikenna Azubuike refers to same 

and one person. All former 

documents bearing any of the 

two names remain valid. General 

public please take note. 



as Mrs Lois Ifeyinwa 

Onori now wish to be known 

and addressed as Miss Lois 

Ifeyinwa Bartholomew. All former 

documents remain valid. 

General Public please take note. 



as Miss Ndidi Racheal 

Nkonyenme now wish to be 

known and addressed as Mrs 

Obidalo Racheal Nkonyenme. 

All former documents remain valid. 


CORRECTION OF NAME 

This is to inform the general public 

that my name was wrongly written 

as Ezejimadu Ugochukwu instead 

of my correct name which is Ezeji 

Ugochukwu Marcellinus. All banks 

and genral public please take note. 

million fees to two lawyers for 

the recovery of Abacha funds.” 

The minister dissociated 

herself and the Federal Ministry 

of Finance from a media 

report in the said reports that 

she described as misleading, 

stating, “I had at no time written 

any letter to the President 

or any member of the Federal 

Executive Council (FEC) on 

the payment of lawyers for 

the Abacha recovery.” 

Also, Adeosun refuted 

the flawed media reports of 

controversy surrounding the 

Abacha recovery, disclosing 

that $322,515,931.83 was received 

into a Special Account 

in the Central Bank of Nigeria 

on December 18, 2017, from 

the Swiss Government. 

Clarifying further, she 

said: “For the avoidance of 

doubt, there is no controversy 

concerning the recovery of 

the Abacha monies from the 

Swiss Government.” 

constitutes health hazards 

to millions of residents. 

In a bid to address this 

challenge, the government 

last year finalised a deal 

with Visionscape Sanitation 

Solutions to collect and 

manage domestic wastes to 

the exclusion of PSP operators 

who, before the advent 

of Visionscape, collaborated 

with Lagos Waste Management 

Authority (LAW- 

MA) to collect and dispose 

of wastes in the state. 

The exclusion drew flaks 

from the operators who 

went to court to challenge 

the action of the government. 

The court subsequently 

gave the parties the 

option of out of court settlesioner 

for the Independent 

National Electoral Commission 

(INEC). 

The requests were contained 

in three separate letters 

read by Senate president, Bukola 

Saraki, on the floor of the 

upper legislative chamber on 

Tuesday. The Senate had embarked 

on two-week Easter 

break on March 29, 2018. 

The NPC nominees include: 

Nwanne Nwabuisi 

(Abia State), Clifford Zirra 

(Adamawa), Chidi Ezeoke 

(Anambra), Isa Buratai (Borno), 

Charles Ogwa (Cross 

River), Richard Odibo (Delta), 

Okereke Onuabuchi 

(Ebonyi), Olusegun Aiyejina 

(Edo), Ejike Ezeh (Enugu), 

Abubakar Danburam 

(Gombe), Uba Nnabue 

(Imo), and Abdulmalik Durunguwa 

(Kaduna). 



as Akinlosotu Kehinde 

Precious now wish to be known 

and addressed as Adeyosoye 

Kehinde Precious. All former 

documents remain valid. General 

Public please take note. 

CONFIRMATION OF NAME 

This is to inform the general 

public that Juliet Olisa Akpan, 

Juliet Oluwakemi Ada-Obi Olisa 

and Juliet Oluwakemi Akpan 

refers to same and one person. 

All former documents bearing 

any of the two names remain 

valid. General public please 

take note. 



as Miss Adefeye Folashade 

Omowunmi now wish to be 

known and addressed as Mrs 

Fadele Folashade Omowunmi. 

All former documents remain valid. 




as Godwin Obinna Felix- 

Onuwudiuruba now wish to 

be known and addressed as 

Godwin Obinna Felix-Ubah. All 

former documents remain valid. 


C002D5556 

BUSINESS DAY 

41 

NEWS 

Economy, Dangote Group struggling 

to get talents in finance -Dangote 

CHUKA UROKO 

Nigerian economy 

and big 

ticket businesses 

like Dangote 

Group are 

struggling to get talents in 

finance, especially with the 

rapid changes in business 

and technology, Aliko Dangote, 

president/chief executive 

of Dangote Group, says. 

Dangote Group has a revenue 

projection of over $30 

billion in 2020, which underpins 

an increasing need 

to have people with business 

agility to deal with changes in 

business models, a situation, 

Dangote says, poses more 

challenges to his company. 

The business mogul, who 

played host to a visiting team 

from the Association of Certified 

Chartered Accountants 

PSPs join Visionscape as contractors to tackle wastes in Lagos 

JOSHUA BASSEY 

Visionscape, the 

metropolitan waste 

manager Lagos 

State signed a deal 

with to collect and manage 

wastes, is opening the space 

for Private Sector Participants 

(PSPs) as contractors 

to jointly tackle the challenge 

of wastes in the state. 

Lagos, a city with an estimated 

population of 21 

million people, is said to 

be generating about 13,000 

metric tons of waste daily. 

But the ineffective manner 

this huge waste is being 

managed has continued to 

pose a challenge to the government 

and residents, as it 

(ACCA) led by Helen Brand 

OBE, told the visitors that 

his company did not have 

enough ACCA professionals 

in its employ. 

Dangote, who received an 

ACCA-award in recognition 

of his continuing support 

as a key employer of ACCA 

members, acknowledged the 

relevance of its members, 

pointing out that an ACCA 

member with an entrepreneurial 

mindset was more 

solution-driven than others 

in similar profession. 

The ACCA chief executive, 

who acknowledged 

Dangote’s concerns, told 

him about the results of the 

‘ACCA employer-led global 

research, social mobility, 

purpose and the profession,’ 

which revealed that social 

mobility is transforming the 

potential talent pool for professional 

accountants. 

Brand OBE highlighted 

the seven quotients developed 

from ACCA’s research 

titled ‘Professional Accountants: 

The Future’ and how the 

ACCA qualification ensured 

the sustainability of these skills 

through the recent changes in 

the qualification and its association’s 

work around policy 

development through its professional 

insights. 

Taiwo Oyedele, partner/ 

head of tax, West Africa, PwC, 

affirmed that policy contribution 

was even more practical 

with business owners 

and entrepreneurs, adding 

that the highest risk of doing 

business was inconsistency 

of government policies. 

But Dangote noted that 

the future was bright globally, 

assuring that he would 

continue to work towards 

wealth creation, as the future 

in Africa was huge. 

He disclosed that the 

profitability of Dangote 

Group doubled during recession 

due to the urgency for 

cost effectiveness that was 

created, and was considering 

doing more business outside 

Africa from 2020, as the African 

environment tended to 

pose barriers for businesses. 

According to Dangote, 

“developing capabilities is 

critical to the growth of businesses 

and the economy in 

Nigeria and the future is the 

small and medium (SMEs).” 

Brand OBE highlighted 

further the ‘Professional Accountants 

and The Future’ 

follow-up research titled 

‘Generation Next,’ with particular 

emphasis on the finding 

that 81 percent of over 

18,000 young professionals 

in over 150 countries saying 

they want to own their businesses 

at some point. 

ment. 

Findings by BusinessDay 

reveal that although over 

200 trucks and machinery 

had been brought in since 

Visionscape sealed the deal, 

the company has yet to fully 

develop capacity in terms of 

manpower and equipment 

to collect waste from residences. 

Checks show that 

many areas of the state are 

still replete with refuse spilling 

over waste bins placed 

in street corners and junctions. 

Kehinde Bamigbetan, 

commissioner for information 

and strategy, confirmed 

to journalists, on 

Monday, an arrangement 

whereby the PSPs were joining 

Visionscape in the implementation 

of the Cleaner 

Lagos Initiative (CLI) of government. 

“With this, the state is 

getting cleaner,” Bamigbetan 

said, while responding 

to question bordering 

on the waste situation. 

Also affirming this, John 

Irvine, managing director/ 

CEO of Visionscape, said 

existing PSPs willing to work 

with his company were being 

engaged as Waste Collection 

Operators (WCOs). 

According to Irvine, the 

WCOs will be working directly 

for Visionscape as 

contractors; they will be 

monitored and paid by Visionscape.


C002D5556 


NEWS 

Belemaoil makes case for US presence in... 


with the backing of the Rivers 

State government, to make the case 

for heavy US presence in Port Harcourt 

by setting up a ‘US Business 

Liaison Office’ in Port Harcourt. 

The US government however 

says such consideration could only 

gain traction if Rivers State could 

have free, fair and peaceful elections 

that are now around the corner in 

2019 with primaries starting this year. 

The founder/president of 

Belemaoil, Jack-Rich Tein Jr, who 

led a team of investors to hand in the 

appeal at the corporate headquarters 

of the indigenous oil company 

on Odili Road in Port Harcourt on 

Tuesday, April 10, 2018, said Port 

Harcourt remained the hub of Nigeria’s 

oil and gas industry. 

Saying there was urgent need 

to rescue the oil city and save the 

bulging youth population to avoid 

political instability in Africa’s largest 

population, Tein said the US has 

much to do to help some few courageous 

investors like Belemaoil 

pumping huge funds to prove that 

Port Harcourt can rise again. 

He unveiled the Belema Model 

that shows intricate designs and 

schemes to integrate the oil host 

communities in oil operations as a 

way to restore the once-cherished 

love and trust between the oil industry 

and host communities, saying 

the presence of the US in Port 

Harcourt would simply complete 

the rebuilding process and cause 

DMO embarks on... 


of Finance and Office of the 

Accountant-General of the Federation 

have started the inspection of 

the roads being financed with the 

Sovereign Sukuk issued in 2017. 

The proceeds of the N100 billion 

Sukuk were designated for 

the financing of 25 road projects 

across the six geopolitical zones of 

the country. 

From the list of Road Projects 

made available to the public when 

the Sukuk was issued, these were 

major roads that will facilitate the 

movement of people, goods and 

services, thereby contributing to 

economic growth and development. 

It would be recalled that the 

current Muhammadu Buhari administration 

had prioritised investment 

in infrastructure as a major 

focus in its plans for the growth of 

the economy and job creation. 

The Sukuk represents a promise 

kept and a step forward in Nigeria’s 

drive for the development 

of infrastructure, which is in line 

with the Economic Recovery and 

Growth Plan (ERGP) launched by 

the Government in 2017. 

The team visited the Abuja- 

Abaji-Lokoja Road, the Obajana- 

Okene Road, the Suleja-Minna 

Road and the Kaduna Eastern 

Bypass Road. 

During the Inspection, the 

Team assessed progress on the 

work that had been done as well 

as ongoing rehabilitation and 

construction works on the roads. 

The Team interacted with the 

various contractors handling the 

projects. The inspection revealed 

that significant amount of work 

had been done and the contractors 

expressed their appreciation 

for the Sukuk which assured them 

of prompt payment for work done. 

The Sukuk has incentivised the 

contractors to accelerate work on 

a mass return of investors to the 

Garden City, the acclaimed hub of 

the Gulf of Guinea. 

Explaining the model for peace 

and prosperity in the Niger Delta so 

as to make case for US presence in 

the oil region, the founder talked 

about creating wealth both for the 

company and the communities. 

He pointed to the employment of 

3,000 youths by Belemaoil from the 

communities; and award of 374 

scholarships at a go to indigenes 

with beneficiaries going home 

same day with their cheques. 

He also talked about certified 

water from water projects to places 

that never saw good water in over 600 

years of existence; roads built by USmade 

bulldozers; and the building of 

what he called the Technology Centre 

to groom technically sound youths. 

On the medium and long term, the 

Belema president mentioned mouthwatering 

figures including 36,000 jobs 

to be created in three years and 60,000 

in 10 years with plans to create $1.4bn 

value in over 240,000 homes. 

To achieve this, he said Belema 

must increase value and production 

to 2000 per cent in the next 

10 years from the present 12,000 

bpd from OML 55 acquired from 

Chevron in 2013. He added that 

the company would need to work 

with at least 240 vendors. 

The benefits would go to all in 

terms of peace, increase in oil output, 

more investors and stability in 

the Niger Delta again with business 

More details of MTN Nigeria IPO coming in... 


by 42percent last year, and is up 5.9 

percent year to date. 

MTN crossed major huddles 

to the Nigeria unit listing after 

three different Emergency General 

Meetings (EGMs), BusinessDay 

gathered. 

At the meetings, the group got 

the nod of different categories of 

shareholders to proceed for the 

listing on the NSE. 

At the latest Emergency General 

Meeting, issues of complaints by 

different categories of shareholders 

and that of shares managed by 

IBTC, among others were resolved. 

MTN said last month in a 

note preceding its financials for 

the year ended December 31, 

2017, that Nigerian operations 

maintained positive momentum 

during the year, with the overall 

macroeconomic environment 

stabilising and the increased oil 

price and production offering 

some relief, with data revenue 

increasing by 86.6percent. 

The Nigerian operations had 

revenues of R36 billion, while 

EBITDA margin (excluding the 

impact of the regulatory fine) declined 

to 38.9 percent. 

Shuter said MTN has struck 

an agreement with pan-African 

lender Ecobank to offer mobile 

banking across Africa, enabling 

both companies to leverage each 

other’s assets. 

The move comes as telecoms 

Jack-Rich Tein Jr (l), founder/president, Belemaoil, hosting F. John Bray, US Consuler-General, in Port Harcourt. 

the selected roads because of the 

confidence that the Government 

had dedicated funds already in 

place to pay them upon completion 

of milestones. 

Of particular significance was 

the fact that the funds from the 

Sukuk had made it possible to 

construct the Okene Bypass, a new 

road which would ensure a safer 

and more convenient journey for 

travellers and residents by moving 

traffic away from the township 

and reducing congestion on the 

roads within the town. Similarly, 

the Kaduna Eastern Bypass, whose 

construction had been delayed by 

inadequate funding, will ease traffic 

within the Kaduna metropolis, 

while also improving the travel 

experience for persons transiting 

through Kaduna to other towns. 

According to information made 

available, the Government delegation 

will inspect all the Sukukfinanced 

Roads to confirm that the 

Sukuk funds have been utilised as 

planned. 

operators choosing the oil region 

once more. 

Placing a definite appeal, the oil 

magnate said: “We cannot do it alone. 

We appeal to the US to establish presence 

here in the form of Business 

Liaison Centre in Port Harcourt.” 

The Rivers State Commissioner 

of Commerce and Industry, Nancy 

Nwankwo, who added a push, described 

the founder of Belemaoil 

as a highly respected investor who 

garnished his business process with 

high dose of philanthropy. “He is 

very passionate for local communities. 

He has done so well in the state.” 

She said Gov Nyesom Wike has 

so far done so much in the area 

of security and infrastructure to 

boost investments. “The region 

was neglected for long and it was 

about importation of contractors 

and marginalisation of the local 

people. Rivers State is a business 

hub, blessed with so much in terms 

of assets and natural resources. Our 

hands are open for investors.’ 

In his response, the Consul-General, 

F. John Bray, urged the people 

and government of Rivers State to 

work on the image of the state in terms 

of security to attract businesses. He 

regretted that the state tended to post 

the worst electoral violence during 

the 2015 elections (which went into 

endless re-runs and court disputes 

with more violence each time). 

He hinged any attempt to consider 

the plea of the business group 

and the state government on posting 

a positive image of free, fair and 

peaceful elections next year. 

Analysts believe that this debut 

Sukuk has breathed new life into 

old projects and provided funding 

for new ones. It is, therefore, a 

financing instrument that is very 

appropriate for the development 

of infrastructure. 

The N100 billion “7-Year 16.47 

percent Ijarah Sukuk due 2024” 

was listed at The Nigerian Stock 

Exchange and the FMDQ OTC 

Securities Exchange yesterday April 

10, 2018 for better secondary market 

trading and liquidity for investors. 

The Sukuk Bond admission on 

FMDQ platform demonstrates 

Federal Government of Nigeria 

unrelenting commitment to the 

development of Nigeria’s infrastructure 

sectors through the Nigerian 

debt capital markets (DCM). 

To formally welcome the listing 

of the pioneer Sukuk to its platform, 

the OTC exchange held a memorable 

ceremony to commemorate 

and honor the issuer, the FGN, 

represented by the Director General 

of the DMO, Patience Oniha, 

along with key representatives 

from the DMO. 

Also present at the Ceremony 

were the co-sponsors to the issue 

on FMDQ and Registration 

Members of the OTC Exchange, 

FBNQuest Merchant Bank Limited, 

represented by its Managing 

Director/CEO, Kayode Akinkugbe 

and Lotus Financial Services Limited, 

represented by Hajara Adeola, 

Managing Director/CEO, and 

other parties to the issue. 

Welcoming the guests to the 

Ceremony, Emmanuel Etaderhi, 

Senior Vice President, Economic 

Development Division, FMDQ, 

congratulated the issuer and cosponsors 

to the issue. 

He reiterated the OTC Exchange’s 

commitment to continue 

to support the initiatives of the 

DMO towards the development 

of a highly liquid, deep and welldeveloped 

DCM in Nigeria. 

Patience Oniha, Director-General 

of the DMO, during the issuer’s 

special address, stated: “the DMO 

operators are expanding mobile 

services to boost margins and access 

new revenue streams. 

The two entities, with an extensive 

footprint on the continent, 

have signed a Memorandum of 

Understanding to develop their 

partnership agreement, which 

will allow them to innovate and 

enhance access to affordable financial 

services via MTN Mobile 

Money and Ecobank Banking 

services. 

Shuter said the South African 

telecoms group was targeting 

60 million customers via mobile 

services over the next three years, 

up from 23 million now across the 

14 markets where it has launched 

the product. 

“Ecobank has very similar aspirations 

to us,” he said. 

Ecobank, which operates in 36 

African countries, has said it expects 

its digital banking platform to 

boost its customers to 100 million 

from 13 million by 2020 and that 

it will focus expansion on existing 

markets via low cost mobile 

services to tap customers on lower 

incomes. 

Ade Ayeyemi, CEO of Ecobank 

said: “Combining Ecobank’s innovative 

digital banking range with 

MTN’s enormous subscriber base 

means that virtually every African 

can now have an instant bank account, 

savings accounts, loans and 

make instant remittances on their 

mobile phone.” 

in pursuit of its objectives to diversify 

the sources of government 

funding and deepen the domestic 

capital market successfully issued 

the debut N100.00bn 7-Year Sovereign 

Sukuk on September 26, 

2017. The purpose of the Sukuk is 

to integrate ethical investors into 

the domestic securities market, 

establish benchmark for pricing 

of Sukuk by other domestic issuers 

and offer investors the opportunity 

to earn returns while contributing 

to the infrastructure development 

of the country.” 

Delivering the Registration 

Member (Listings) remarks, Kayode 

Akinkugbe, highlighted, “we 

are pleased to have advised the 

FGN on its N100.00bn debut Sukuk 

issuance, and despite fairly volatile 

market conditions, we leveraged 

FBNQuest Merchant Bank’s superb 

distribution platform to successfully 

distribute about 65percent 

of the offer. The N100billion 

Sukuk issuance is the first attempt 

by the Federal Government to 

raise funds through non-interest 

instrument in the capital markets 

for infrastructure development.” 

Similarly, co-sponsor and Registration 

Member (Listings), Lotus 

Financial Services Limited, represented 

by Hajara Adeola, during 

her remarks stated, “The FGN 

N100billion Sukuk has been instrumental 

in financing road projects, 

while ensuring socio-economic 

development and financial inclusion. 

With this listing, the Sukuk 

will trade like other FGN securities 

through registered brokers and 

dealers on the Exchanges.” 

Tumi Sekoni, Associate Executive 

Director, Capital Markets, 

FMDQ, whilst giving the closing 

remarks, applauded the issuer for 

achieving this milestone, stating 

that this was another highly laudable 

step by the Sovereign, through 

the DMO towards supporting the 

growth and development of the 

nation’s DCM.


LCCI celebrates Business Excellence at 

2018 commerce, industry awards 

Lagos Chamber of 

Commerce and Industry 

(LCCI) has 

concluded plans to 

honour excellence in business 

at its 2018 Commerce 

& Industry awards slated for 

May 1, 2018, in Lagos. 

This year’s edition, 

which is the 5th in the series, 

promises to be an improved 

edition and hopes to 

attract major players in the 

various sectors of the Nigerian 

economy. 

Muda Yusuf, directorgeneral, 

LCCI, said: “The 

objective of the annual 

awards is to recognize, celebrate 

and promote private 

and public institutions that 

have exhibited the core 

values of best business 

practices, growth through 

innovations, business sustainability 

and have positively 

impacted the society.” 

He added that “the LCCI 

Commerce and Industry 

Wapic holds conference call 

today as earnings surge 

BALA AUGIE 

Wapic Insurance plc, 

an underwriter 

in the country, 

will hold a teleconference 

call for investors and analysts 

today at 2pm Nigeria 

time, (1pm London/3pm 

Johannesburg/9am New York) 

with its senior management, 

to announce the unaudited 

financial results for the period 

ended December 31, 2017. 

The 2017 unaudited financial 

statement showed gross 

premium income spiked by 23 

percent to N9.81 billion in December 

2017, from N8 billion 

the previous year. 

Underwriting profit surged 

by 304 percent to N1.53 billion 

in the period under review 

from N381 million as of December 

2016, while net underwriting 

income increased 

‘Leader’s ability to create a social architecture 

is key competitive advantage’ 

SEYI JOHN SALAU 

Leaders and administrators’ 

ability in the 

church and secular 

workplace to create a 

social architecture has been 

said to be the key for competitive 

advantage to generate 

intellectual capital for capacity 

building of staffers, while 

followers need direction, trust 

and hope from their leaders 

to stay ahead of the curve. 

Johnson Odesola, assistant 

general overseer, 

admin and personnel, Redeemed 

Christian Church 

of God (RCCG), made this 

submission at the international 

conference of RCCG 

Administrators 2018, 

themed ‘No Bounds.’ 

According to Odesola, 

No Bounds is a phrase that 

triggers a feeling or quality 

Awards prides itself as a 

credible platform where 

winners emerge through 

a painstaking selection 

process supported by robust 

research and market 

intelligence. Some of 

the awards categories to 

be won at the prestigious 

event include: Award for 

Excellence in sectors of the 

economy such as Banking, 

Insurance, Health Care, 

Manufacturing, Real Estate, 

Aviation, Pharmaceuticals, 

Education, Media 

among others. 

“The LCCI aims to celebrate 

deserving corporate 

organisations and public 

institutions that have made 

remarkable contribution to 

the development of commerce 

and industry, and 

the economy at large. Good 

corporate governance is 

also a major consideration 

in the evaluation of nominees 

for the award.” 


in December 2017, as against 

N4.94 billion the previous year. 

Profit before tax increased 


in December 2017, from N1.19 

billion the previous year. 

“I am delighted about our 

results and the growth we 

were able to achieve in all key 

performance metrics. Our 

full year 2017 performance 

reflects the strength and resilience 

of an organisation that is 

focused on delivering on its financial 

commitments,” Yinka 

Adekoya, managing director, 

WAPIC Insurance, said. 

“We have made significant 

investment in technology to 

enhance our operational efficiency 

and overall customer 

experience, which we expect 

will impact our bottom line in 

a sustainable manner going 

into the future,” Adekoya said. 

of no limits to something or 

not to be limited, loosen, 

leave someone to their own 

devices, to be at liberty to 

do something. 

Odesola said, “An interesting 

extension of the 

traits theory of the leader’s 

performance suggests that 

certain traits are necessary 

requirements for leadership 

but that they do not 

guarantee it.” 

According to the RCCG 

administrator, element of 

leadership excellence is a 

function of the right person 

being in the right place at 

the right time. 

“The fact that one person 

with certain traits becomes 

an excellent leader, 

while another with the 

same traits flounders may 

be no more than the results 

of timing and chance,” he 

C002D5556 

BUSINESS DAY 

43 

NEWS 

2019: Why I want to unseat Buhari - Moghalu 


truly usher Nigeria into the private venture capital fund rule, oil boom and bursts and 

21st century and build a better 

future for our children and N500 billion (with private class have combined to rob 

with a minimum capital of failures of the civilian political 

Former deputy governor 

of the Central youth.” 

sector co-investment to fund Nigeria of what seemed its 

Bank of Nigeria (CBN), Moghalu declared his interest 

for the presidency on to create jobs by investing in 1960. 

could attain a size of N1trn) destiny at independence in 

Kingsley Moghalu, 

says the pervasive hardship 

in the country occasion by 

poor economic management 

are reasons he intends to 

challenge President Muhammadu 

Buhari in the contest 

for the presidency in 2019. 

February 28, when he assured 

Nigerians that if elected President 

in 2019, he would lead a 

government that would unite 

Nigeria and build a stable and 

secure nation, reverse extreme 

poverty and high unemployment 

new businesses by unemployed 

youth, reform the Nigerian 

Police Force by recruiting, 

training and equipping 

a minimum of 1.5 million 

persons with improved remuneration 

to create safe and se- 

“I am standing with the 

100 million Nigerians experiencing 

crushing poverty, living 

on less than N300 a day.” 

I am here today because 33 

million of our able men and 

women are unemployed or 

Moghalu, in a statement 

with effective economic cure communities, empower underemployed, nearly 15 

on Tuesday, acknowledged 

that President Buhari, who 

declared his intention to run 

for the presidency had every 

right to seek a second term 

in office if nominated, but it 

would be up to Nigerians to 

management, and restore Nigeria’s 

standing in the world. 

The 55-year-old Anambraborn 

technocrat has, however, 

not declared for any of the 68 

registered political parties even 

as he expressed sadness that 

women with a 50:50 gender 

parity policy in political appointments, 

and initiate a 

constitutional restructuring of 

Nigeria to restore true federalism 

for stability and prosperity,” 

he said. 

million children are out of 

school, and only 60% of Nigerians 

are literate” he said during 

his declaration. 

He said that education will 

enjoy a prominent place in is 

government pointing out that 

judge his track record so far. despite Nigeria’s enormous The erudite professor of he will establish and propagate 

Moghalu, however, noted 

that he would challenge the 

President based on the record 

of increasing poverty 

and insecurity in the country, 

wealth and talents, about 180 

million people and thousands 

of businesses in the country 

were struggling to share a measly 

4,000mw of electricity. 

International Business had 

during his declaration lamented 

that nearly 60 years 

ago, the vision and hope of Nigeria’s 

founding fathers such 

through the educational system 

a foundational philosophical 

worldview for the Nigerian 

state, around which all Nigerians 

will unite in a common 

saying, “I offer my vision “My government will as Nnamdi Azikiwe, Obafemi purpose. “Education will be 

of something new, bold and 

different. I offer a new kind 

of competent, inclusive and 

effective leadership that will 

establish a productive innovation-led 

economy that 

reduces dependence on oil 

revenues, establish a public- 

Awolowo and Ahmadu Bello, 

have not materialized following 

successive years of misrule. 

He added that military 

allocated 20 per cent of the federal 

government budget, with a 

progressive increase to 30 per 

cent over eight years,” he said. 

L-R: Segun Agbaje, GMD/CEO, Guaranty Trust Bank plc; Osaretin Demuren, chairman, and Erhi Obebeduo, company secretary, 

at the 28th annual general meeting of the bank in Lagos, yesterday. 

Pic by Olawale Amoo 

said, urging the participants 

that staying with the 

status quo would not work. 

“Leadership is not an exclusive 

club for those who are 

just born with it, leaders are 

made. Although leadership 

relies on some inherited characteristics, 

it also depends on 

training and experience. 

“Indeed, many of the traits 

and abilities that are raw materials 

of leadership can be 

acquired. If you link those 

traits with an essential desire 

to achieve; nothing can keep 

you from becoming a leader. 

You may even become a great 

leader. When leadership is 

pure, it always starts with a 

need. That need sparks a passion 

within a person. That 

person acts in response to 

the need. This action moves 

others to cooperate,” Odesola 

stated. 

Delta extends empowerment scheme to more PwDs 

MERCY ENOCH, Asaba 

Delta State government 

has extended 

its Skills 

Training and Entrepreneurship 

Programme 

to 29 more persons with disabilities 

(PwDs), bringing 

to 80 the number of PwDs 

included in the job creation 

training and empowerment 

scheme under the Governor 

Ifeanyi Okowa-led administration’s 

SMART agenda 

that targets prosperity for 

all Deltans. 

The 29 persons, the second 

tranche of the PwDs, 

are to be trained and empowered 

in 2017/2018 cycle 

of the scheme. They 

were drawn from the various 

cluster groups and 

evenly distributed across 

the 25 LGAs of the state. 

They would be trained 

for a period of three to six 

months depending on their 

trade, using the community 

based vocational rehabilitation 

(CBVR) model approach 

where trainees are 

attached to relevant trainers 

in their respective communities 

of residence, clustered 

and provided with 

interpreters where necessary 

to facilitate learning 

within the stipulated time. 

The Commissioner for 

Women Affair, Community 

and Social Development, 

Williams Omatsola, made 

the disclosure while declaring 

open a one-day orientation 

course organised 

by the Chief Job Creation 

Officer in collaboration 

with the ministry, in Asaba, 

Monday, April 9. 

Williams, a reverend, 

said the governor approved 

the 29 beneficiaries as a result 

of his continuous passion 

for the welfare of the 

PwDs in the state, coupled 

with the success story of 

the first tranche of PwDs 

trainees engaged in the 

programme last year (the 

2016/2017 cycle) 

According to her, the 51 

persons who were trained in 

the first tranche (2016/2017 

cycle) were drawn from the 

various cluster groups and 

equitably distributed on the 

basis of two per LGAs across 

the state. 

“I am delighted to recall, 

here that because of 

the present administration’s 

avowed commitment 

in ensuring that all categories 

of persons are carried 

along without discrimination 

of their birth, health 

condition etc in 2016/2017 

cycle magnanimously approved, 

trained and empowered 

51 PwDs drawn 

from the various cluster 

groups and equitably distributed 

on the basis of two 

per LGAs across the state”, 

she stressed.


L-R: Akeem Oyewale, chief executive, Stanbic IBTC Nominees Limited; Stephen Falomo, director, Lagos Zonal Office, Securities 

and Exchange Commission; Inwang Akpan, head, transactional products and services, Stanbic IBTC, and Hari Chaitanya, head, 

investor services products, ‎Standard Bank South Africa, at the 2018 investor services forum organised by Stanbic IBTC in Lagos, 

yesterday. 


‘Capital flight in maritime industry alarming’ 

IGNATIUS CHUKWU & DAVID EJIOHUO 

The size of capital 

drained from the 

maritime industry 

is alarming, according 

to members 

of the Nigerian Maritime 

Security Association 

(MSPAN) who spoke exclusively 

with BusinessDay at 

the Port Harcourt International 

Airport. 

A retired commodore, 

Fred Oyedele, who serves as 

spokesman for the association, 

expressed the concern 

when he said the rate of capital 

flight in the industry was 

very huge and was better seen 

than imagined. 

According to Oyedele, the 

security of the Nigeria Maritime 

Security and Water Ways 

is nothing to write home 

about. Because of this, he said 

the Nigerian coastal and waterways 

had been turned into 

what he described as ‘the survival 

of the fittest.’ 

He pointed out that the 

Anambra to resuscitate Ojukwu Bunker to boost tourism 

EMMANUEL NDUKUBA, Awka 

Anambra State governor, 

Willie Obiano, 

has revealed plans 

to resuscitate and 

refurbish the famous Ojukwu 

Bunker, which provided a 

sanctuary to the great Ikemba 

Nnewi, Dim Chukwuemeka 

Odumegwu Ojukwu during 

the Biafran War for tourism 

purposes. 

Obiano said this in Awka, 

the state capital, on Tuesday. 

The Bunker is located in 

Amorka village in Uli, Ihiala 

Local Government Area of 

the state. 

The governor also explained 

that the Light-up 

Anambra Campaign would 

install its streetlights on the 

roads and footpaths leading 

to the Caves and the Bunker 

in the state. 

According to Obiano, 

… as security association seeks solutionw 

scope of the coastal and waterways 

was large and good 

enough for Nigerians to really 

tap from, but noted that Nigerians 

were not reaping from 

them because of ignorance, 

lack of awareness and security 

challenges. “The Nigerian 

maritime land scope and the 

Cabotage regime are very 

good and large, but Nigerians 

are not benefiting much from 

them,” he said. 

Instead, foreigners were at 

present having a field day at it, 

making their money and leaving 

little or nothing behind. 

Members of the association, 

he explained, were in 

Port Harcourt to brainstorm 

and fashion out an end to the 

loss and how the nation could 

benefit more from the industry, 

especially as it related to 

Nigerians. 

“What we intend to 

achieve now is on how we 

could harness all our human 

resources and see through 

Fidelity Bank plc has 

flagged off a Digital 

Banking Awareness 

Campaign Week as 

part of efforts to make financial 

services easy and 

accessible to its customers. 

Organised by the bank’s 

South-West directorate, the 

week-long campaign aptly 

dubbed “Go Digital” seeks 

to create awareness on its 

electronic banking products 

and services. 

Speaking at the opening 

ceremony in Lagos, regional 

bank head, Ikeja, Ken 

Opara, says the campaign is 

aimed primarily at sensitising 

customers on the attendant 

benefits of using the 

bank’s e-products. 

He harps on the need 

for banks to leverage digital 

technologies and platforms 

to provide greater convenithere 

are also plans to open 

a window into the attractive 

tourism offerings of the state 

by constructing access roads 

to the famous Ogbunike 

Cave in Ogbunike town in 

Ayamelum Local Government 

Area as well as the 

Ogbaukwu Caves and Waterfalls 

in Owerre-Ezukala 

town in Orumba South Local 

Government Area of the 

state. 

He said he planned also to 

construct concrete footpaths 

that would lead into the bowls 

of the caves to make them 

more accessible to tourists. 

“To demonstrate his administration’s 

resolve to 

harness Anambra’s tourism 

potentials, some heavily 

branded two 30-seater buses 

would soon be deployed to 

operate shuttle services to 

tourism locations in the state. 

“Anambra is home to most 

our laws with the view to 

improving on them and possibly 

blocking some loop 

holes,” he said. 

The Nigerian Security 

Partners Association was 

partnering the Navy, NIMA- 

SA, and other security agencies 

in their task to ensure that 

Nigerians and indeed the nation 

would benefit from the 

lucrative maritime industry in 

Nigeria, he said. 

“What we have decided to 

do now is to change the local 

content vote, which is small, 

and then create awareness 

among our business community 

and make them see 

reason to invest in the Nigerian 

Maritime Industry,” he 

disclosed. 

He explained that because 

the Nigerian local content 

vote was small, foreigners 

had taken advantage of it and 

were investing in the industry 

and making huge profits 

but repatriating them to their 

of the historic sites of the Igbo 

people and home to some 

of nature’s amazing works. 

Apart from the two awe-inspiring 

caves in Ogbunike and 

OwerreEzukala, Anambra 

is home to the famous Igbo 

Ukwu Bronze which has not 

only been described as the 

oldest bronze artefact in West 

Africa but as a more distinctly 

advanced bronze work than 

the contemporary bronze 

casting in Europe. The Igbo 

Ukwu Bronze is dated in the 

9th Century. 

“Anambra is also home to 

the ancient kingdom of Nri 

and Aguleri which together 

offer a rich historical insight 

into the ancestral roots of 

Ndigbo. Both Nri and Aguleri 

provide an array of historical 

sites and symbols that make 

for interesting scholarly enquiry 

while offering a rich 

tourism experience. 

countries, leaving little or 

nothing behind. 

The association, he disclosed 

further, had sent a 

‘Save Our Soul message’ 

(SOS) to the Federal Government 

to do more and ensure 

that the Nigerian Coastal Region 

and the Water Ways are 

made safe for our people to 

benefit more from it. 

To him, the security of 

the Nigerian Water Ways is 

nothing to write home about 

because its water ways and 

coastal territories is rated as 

the worst in the world, apart 

from that of Somalia. 

The security of the Nigerian 

Water Ways he advised 

must be made safe for the 

nation to benefit maximally 

from the maritime industry, 

pointing out that only the 

Navy, cannot do it alone and 

therefore must partier with 

the private maritime security 

organisations to have control 

of our territorial waters. 

C002D5556 

BUSINESS DAY 

A1 

NEWS 

WHO regional directors arrive Nigeria 

for global policy group meeting 

Fidelity Bank flags off digital banking 

awareness campaign 

Lassa fever kills three, eight new cases confirmed in five states 

ANTHONIA OBOKOH 

Nigeria Centre for 

Disease Control 

(NCDC) has confirmed 

eight new 

cases of Lassa fever and 

three deaths in five states, 

within one week. 

According to the latest 

update of situation report by 

the agency, for week 14 (April 

02-08, 2018), “eight new confirmed 

cases were recorded 

from five states – Edo (three), 

Ondo (two), Ebonyi (one), 

Plateau (one), and Taraba 

(one), with three new deaths 

in confirmed cases from 

Ondo (one), Ebonyi (one) 

Taraba (one), and a backlog 

of an old death in a confirmed 

case from Kogi State. 

“From 1st January to 8th 

April 2018, a total of 1,781 

suspected cases have been 

reported from 20 states. Of 

ANTHONIA OBOKOH 

Director-general, 

World Health Organisation 

(WHO), 

Tedros Adhanom 

Ghebreyesus, and other top 

global directors arrive Nigeria 

to hold its Global Policy 

Group (GPG) meeting. 

The GPG consists of the 

director-general, deputy director-general, 

six regional directors 

and the executive director 

of the WHO emergencies 

programme, and the meeting 

holds from April 10 to 12. 

The discussions will focus 

on WHO’s technical support 

to strengthen the country’s 

health system to achieve 

health related Sustainable 

Development Goals (SDGs) 

within the context of revitalisation 

of Primary HealthCare 

(PHC) for universal health 

coverage and humanitarian 

response in the Northeast. 

The Group is an internal 

advisory mechanism to the 

these, 408 were confirmed 

positive, nine are probable, 

1,351 are negative (not a 

case) and 13 are awaiting 

laboratory results (pending). 

“Since the onset of the 

2018 outbreak, there have 

been 101 deaths in confirmed 

cases, nine in probable 

cases. Case Fatality Ratio 

in confirmed cases is 24.8 

percent,” according to the 

report. 

Lassa fever is an acute 

viral haemorrhagic illness, 

transmitted to humans 

through contact with food 

or household items contaminated 

by infected rodents. 

Person-to-person 

transmission can also occur, 

particularly in hospital 

environment in the 

absence of adequate infection 

control measures. 

The agency notes that at 

least one confirmed case 

director-general, established 

to ensure the coherent implementation 

of decisions, 

policies and strategies of 

WHO across all levels of the 

srganisation. 

Isaac Adewole, minister 

of health, says, “Nigeria is 

honoured to host the director-general 

and regional directors 

of WHO at this auspicious 

time. 

“The presence of WHO’s 

top decision makers provides 

opportunity for Nigeria to 

strengthen collaboration between 

the WHO and the Federal 

Republic of Nigeria.” 

The WHO director-general 

will carry out a full programme 

of activities including 

field visits to relevant 

health agencies such as 

Nigeria Centre for Disease 

Control (NCDC), model revitalised 

primary healthcare, 

and he is expected to hold 

discussions with high-ranking 

government officials and 

key stakeholders. 

ent banking solutions for 

customers and, according 

to him, one bank that is the 

vanguard of this is Fidelity 

Bank. 

“The bank has continued 

to invest significant resources 

on technology thus 

enabling it to digitize and 

offer easy to use e-banking 

products and services” 

he said. Some of the flagship 

products and services 

the staff would be creating 

awareness for include the 

recently upgraded Fidelity 

Online Banking platform. 

“The new look and more 

advanced and user-friendly 

online banking platform 

comes with additional 

functionalities thus making 

financial service activities 

easier and faster for an unmatched 

customer experience,” 

he says. 

has been recorded in Edo, 

Ondo, Bauchi, Nasarawa, 

Ebonyi, Anambra, Benue, 

Kogi, Imo, Plateau, Lagos, 

Taraba, Delta, Osun, Rivers, 

FCT, Gombe, Ekiti, 

Kaduna, and Abia, making 

it 20 states across 57 local 

government areas. 

“Nine states have exited 

the active phase of the outbreak 

while 11 states remain 

active,” the report notes. 

In the reporting week 14, 

one new healthcare worker 

was affected in Ebonyi with 

one death. “Twenty-seven 

health care workers have 

been affected since the onset 

of the outbreak in seven 

states, Ebonyi (16), Nasarawa 

(one), Kogi (two), 

Benue (one), Ondo (three), 

Edo (three) and Abia (one), 

with seven deaths in Ebonyi 

(four), Kogi (one) and 

Abia (one).

A2 

NEWS 

BUSINESS DAY 

C002D5556 

L-R: Stephen Van Coller, vice president, digital services, MTN Nigeria; Ade Ayeyemi, group chief executive officer, Ecobank; Rob 

Shuter, group chief executive officer, MTN, and Patrick Akinwuntan, group executive, consumer banking, Ecobank, during the 

MoU signing between MTN Group and Ecobank Group for the provision of Pan-African Mobile Financial Services, in Lagos 

yesterday. 


FX inflow through I&E window hits $41.97bn 

HOPE MOSES-ASHIKE & SEYI JOHN SALAU 

Foreign exchange inflows 

through the Importers 

and Exporters 

Foreign Exchange 

Window (I&E Window) between 

April 2017 and April 5, 

2018, stood at $41.97 billion. 

The highest monthly foreign 

exchange inflows to 

Nigeria through the I&E window 

was recorded in January 

2018 at $6.04 billion, while 

the inflows in March 2018 at 

$5.15 billion was higher than 

the highest amount recorded 

in 2017 at $4.53 billion. 

In its monthly economic 

and financial markets outlook, 

titled, ‘Growth Prospect 

Improves but Uncertainties 

Remain,’ research analysts at 

FSDH Merchant Bank Limited 

said the rising foreign 

capital inflows into Nigeria; 

favourable crude oil price, 

and increased oil production 

had led to significant accretion 

to the external reserves. 

The merchant bank- 

Edo’s institutional reforms deepen 

development, fast-track economic growth 

Secretary to the Edo 

State government 

(SSG), Osarodion 

Ogie, says Governor 

Godwin Obaseki’s development-focused 

transformation 

in is driven by institutional 

reforms. 

Ogie said this when he 

hosted delegates from the 

Institute for Security Studies, 

Abuja, who were on a study 

tour to the state, at the Government 

House, in Benin City. 

He said the Obaseki-led administration 

would continue 

its institutional reforms to ensure 

the restoration of cultural 

values, economic growth and 

prosperity for Edo people. 

“The focus of the administration 

from the onset has 

been to create an enabling 

environment for economic 

growth by restoring law and 

ers expect inflation rate for 

March to decline to 13.49 

percent on account of base 

effect of previous year, as it 

also state that the declining 

trend in inflation rate may 

lead to a further drop in the 

yields on fixed income securities, 

particularly at the 

short-end of the yield curve. 

Ayodele Akinwunmi, 

head of research, FSDH Merchant 

Bank Limited, at the 

launch of its economic outlook 

for March, said the 30- 

day moving average external 

reserves increased by 8.76 

percent to $46.21 billion as of 

end-March 2018, from $42.49 

billion at end-February. 

However, FSDH Research 

noted that the current 

strategies of the Debt 

Management Office (DMO) 

to reduce the interest expense 

on the debt of the 

Federal Government of Nigeria 

(FGN) was working, 

stating that DMO plans to 

achieve a debt mix of 60 

percent and 40 percent for 

order, which is known to be 

a major catalyst for development. 

There is little government 

can do if there is no law 

and order,” he said. 

Speaking on the theme of 

the study group: “Cultural values 

and contemporary governance: 

challenges of ethnic 

nationalism and youth disillusionment,” 

he said, the erosion 

of institutions and morals, 

which were hallmarks of 

the military regime, account 

for human trafficking and 

other social vices. 

He added that the report 

of the study group would be 

of immense value to the state, 

as it will serve as pointers 

to areas where government 

needs to tweak its reforms 

to sustain results recorded in 

maintaining law and order. 

He stressed that the 

domestic and external debt, 

respectively. 

It observed a relative 

increase in the revenue accrued 

to the FGN from the 

Federation Account Allocation 

Committee (FAAC). 

These two factors, according 

to FSDH Research, 

have led to a drop in the 

ratio of the interest expense 

to the FAAC revenue, which 

stood at 20 percent in December 

2017. 

On its financial market 

analysis and outlook, the analysts 

said they expect a total 

inflow of about N1.85 trillion 

to hit the money market from 

the various maturing government 

securities and FAAC in 

the month of March. 

“We estimate a total outflow 

of about N594 billion 

from the various sources 

such as government securities 

and statutory withdrawals, 

leading to a net inflow 

of about N1.25 trillion. We 

expect the market to remain 

relatively liquid in April. 

smooth-working relationship 

between the state government 

and the traditional 

institutions has led to enormous 

progress in changing 

behaviours, curbing social 

vices and setting the state up 

for industrialisation. 

According to Ogie, the 

Oba of Benin has shown 

tremendous support for the 

state government and its policy 

reforms, which recently 

culminated in the placing of 

curses on human traffickers, 

a watershed in the campaign 

to curb the ugly trend of illegal 

migration and human 

trafficking in the state. 

Leader of the delegation, 

Angela Olaseni, said Edo 

State was chosen for the tour 

because it was reputed for 

undiluted culture, in tandem 

with the theme of the course. 

PAC Holdings enters strategic partnership with CWEIC 

Rainy season: NCAA issues weather hazard notice to airlines 

IFEOMA OKEKE 

Nigerian Civil 

Aviation Authority 

(NCAA) has 

issued a weather 

hazard alert to all pilots 

and airline operators indicating 

hazards associated 

with rainy season in flight 

operations at this period of 

the year. 

With this alert, air traffic 

controllers may temporarily 

close airspace when 

hazardous weather conditions 

such as severe thunderstorms, 

squall lines, microburst 

or low-level wind 

shear are observed or forecast 

by NIMET. 

The NCAA has further 

asked operators to ensure 

necessary measures are put 

in place to manage effects 

of flight delays or cancellations 

on their passengers. 

This alert, according to 

the regulatory body, is quite 

imperative at the beginning 

Diamond Bank partners MTN, Visa, Microsoft, NIBSS, others to unveil Tech Fest 

Nigeria’s technology 

space is set to 

witness a gamechanging 

experiential 

platform with the unveiling 

of Tech Fest by Diamond 

Bank plc in partnership with 

MTN, Visa, Microsoft, NIBSS, 

Deloitte and Touche, Interswitch, 

and Beat FM. 

Scheduled for Tuesday, 

15 and Wednesday, 16 May 

2018 at the Landmark event 

Centre, Oniru, Lagos, Tech 

Fest will feature the best talent 

in the Nigerian technology 

space - one of the country’s 

fastest growing sectors. The 

event will showcase technological 

solutions for businesses, 

connect technology 

providers with new markets, 

provide access-to-market opportunities 

for tech start-ups 

amongst others. 

Speaking at the official unveiling 

of the event, Diamond 

PanAfrican Capital 

Holdings Limited 

has joined Commonwealth 

Enterprise and 

Investment Council (CWEIC) 

as strategic partners. 

PAC Holdings is a proprietary 

investment company 

with a special focus on key 

sectors of the African Economy 

such as Financial Services, 

Hospitality & Entertainment, 

Real Estate, Agro-Allied & 

FMCG, Health Care and ICT 

& Media. The company has 

an extensive Commonwealth 

footprint with operations 

across Nigeria, Ghana, Kenya 

and Mauritius. 

Africa’s vast opportunities 

have seen it become the new 

hub of global investment, 

but investors still need partners 

that understand where 

to invest, and that are well 

equipped to navigate the local 

business environment. 

Relationships and a deep 

knowledge of local markets 

are PAC Holdings’ strongest 

currency – allowing them to 

create investment footprints 

of the rainy season, which 

is usually accompanied 

with severe thunderstorms 

and many other hazardous 

weather phenomena such 

as turbulence, microburst, 

low-level wind shear and 

hail events. 

The above-mentioned 

factors are known to pose 

obvious threat to aircraft 

operations. 

The advisory circular 

as approved by Muhtar 

Usman, director-general, 

NCAA-AEROMET -25, is 

based on the Seasonal 

Rainfall Prediction (SRP) 

released for the year 2018 by 

the Nigerian Meteorological 

Agency (NiMet), which predicts 

March/April and May/ 

June 2018 as the onset for 

rainy season in the Southern 

and Northern parts of 

Nigeria, respectively. 

Therefore, pilots, operators 

and air traffic controllers 

should take note of their 

responsibilities as follows: 

Air traffic controllers 

Bank’s CEO, Uzoma Dozie, 

stated, “Tech Fest for me, is 

a platform that we can share 

with our customers to help 

them get the best of technology 

and to partner together to 

run better businesses. If there 

is one thing we have learned 

at Diamond, it is that you can’t 

do everything on your own 

and you need to collaborate 

if you are going to win and be 

the best at what you do.” 

Also at the event, Emezino 

Afiegbe, country director, VISA, 

expressed his company’s excitement 

to partner with Tech 

Fest. In his words, “We are 

happy to collaborate with reputable 

firms like Diamond, MTN 

and others to make Tech Fest a 

success. We are here to provide 

support to retail customers and 

consumers to make payment 

seamlessly, securely and as 

quick as possible. We believe 

that if they can make payment 


that can be leveraged across 

the continent on clients’ behalf, 

whether institutional, 

private investors or multilateral 

partnerships. 

As strategic partners of 

CWEIC, PAC Holdings are 

looking to build new, and 

strengthen existing relationships 

with governments and 

businesses from across the 

Commonwealth. They are 

also looking to identify and 

explore new partnerships; 

whether with multinationals 

operating across countries or 

thriving SME’s that specialise 

in niche markets. 

Welcoming the new 

Strategic Partnership, 

CWEIC Chairman Lord 

Maryland said: ‘This is a 

fantastic time for PanAfrican 

Capital Holdings to 

join CWEIC. PanAfrican 

Capital’s unique local expertise 

makes them a vital 

partner to businesses and 

investors working to unlock 

value across the African 

continent. We are thrilled 

to have them on board.” 

may temporarily close airspace 

when hazardous 

weather conditions such 

as severe thunderstorms, 

squall lines, microburst or 

low-level wind shear are 

observed or forecast by 

Nimet; 

Flight Crews/Operators 

and Air Traffic Controllers 

(ATC) shall ensure adherence 

to aerodrome weather 

minima; Pilots shall exercise 

maximum restraint 

whenever adverse weather 

is observed or forecast by 

Nimet; 

Pilots/Flight crewmembers 

shall obtain adequate 

departure, en-route and 

destination weather information 

and briefing from 

Nimet Aerodrome Meteorological 

officer prior to flight 

operations. 

“Operators are therefore 

advised to ensure necessary 

measures are put in place 

to manage effects of flight 

delays or cancellations on 

their passengers. 

quickly and safely, we are sure 

that GDP will grow for not just 

the country but also prosperity 

in the region. It all starts here 

and we are happy to be part of 

this journey as we go into the 

future”. 

Telecoms giant, MTN 

through its General Manager, 

Enterprise Business Unit, Barbara 

Anozia, told newsmen at 

the event that MTN’s vision 

is to offer customers a whole 

new digital world and make 

their lives brighter using technology 

to help them grow and 

this informs their decision to 

partner with Tech Fest. 

Commenting on what to expect 

from Deloitte and Touche 

at Tech Fest, the company’s 

West Africa Consulting Leader, 

Yemi Saka said, “We at Deloitte 

and Touche understand that 

business advisory is a key aspect 

of the entire value chain of 

any entrepreneurial venture.


FT FINANCIAL TIMES 

C002D5556 

BUSINESS DAY 

A3 

World Business Newspaper 

Donald Trump renews 

attack on raids on his 

lawyer’s office 

President tweets ‘Attorney-client privilege is dead!’ after FBI action 

KADHIM SHUBBER 

Donald Trump renewed his attack 

on the FBI and Robert Mueller, 

the special counsel investigating 

Russian meddling in the 2016 US 

election, following raids targeting his 

long-time personal attorney. 

In two separate Twitter posts on 

Tuesday morning, the US president 

wrote: “Attorney-client privilege is 

dead!” before firing a second riposte: 

“A TOTAL WITCH HUNT!!!” after federal 

agents, executing search warrants 

against Michael Cohen, had raided 

several locations in New York on Monday. 

Mr Cohen’s attorney said that the 

investigators acted in part on information 

referred by Mr Mueller’s office. 

The US president’s outburst comes 

after he had angrily denounced the 

FBI and Mr Mueller in the immediate 

aftermath of the raids less than 24 

hours earlier, describing the actions 

as “disgraceful” and “an attack on our 

country”. 

On Monday, speaking after a briefing 

by his military advisers on the 

situation in Syria, following an alleged 

chemical weapons attack, Mr Trump 

said he had “just heard they broke 

into the office of one of my personal 

attorneys” and called the moves by 

investigators “a whole new level of 

unfairness”. 

When asked by reporters whether 

he might fire Mr Mueller, the president 

said: “Well, I think it’s a disgrace what’s 

going on. We’ll see what happens.” 

The action against Mr Cohen was 

first reported by The New York Times, 

which said Mr Cohen’s payment of 

$130,000 to porn star Stormy Daniels 

shortly before the 2016 election was 

one of the matters being investigated. 

Stephen Ryan, a lawyer for Mr Cohen, 

said agents had seized “protected 

attorney-client communications” in a 

series of raids executed by the US attorney’s 

office for the southern district 

of New York. 

Long-term loan could signal shift in appetite for African risk from institutional investors 

Justice department guidelines 

require Mr Mueller to consult on matters 

outside the Russia investigation 

with the attorney-general, who would 

decide whether to allow Mr Mueller to 

investigate or to refer such questions to 

other prosecutors. 

However, Jeff Sessions, the attorney-general, 

recused himself from 

the Russian matter last year following 

questions about his Senate testimony 

about his contacts with the Russian 

ambassador. His recusal means any 

decisions are now instead taken by 

Rod Rosenstein, the deputy-attorney 

general. 

Mr Trump also repeated his attacks 

on Mr Sessions on Monday for recusing 

himself. 

“He certainly should have let us 

know if he was going to recuse himself 

and we would have put a different 

attorney-general in,” said Mr Trump. 

“He made what I consider to be a very 

terrible mistake for the country. But 

you’ll figure that out.” 

Democratic Senator Chuck Schumer 

warned Mr Trump against using the 

raid to fire Mr Mueller “or otherwise 

interfere with the chain of command 

in the Russia probe”. 

“The investigation is critical to the 

health of our democracy, and must be 

allowed to continue,” said Mr Schumer 

in a statement. 

Mr Cohen is a close adviser of the 

president who has worked for the 

Trump Organization since 2007. In October, 

he appeared in front of two congressional 

committees investigating 

alleged Russian election interference. 

Several Trump associates have been 

indicted as part of the special counsel’s 

investigation, including Mr Trump’s former 

campaign manager Paul Manafort, 

deputy campaign manager Rick Gates, 

former national security adviser Michael 

Flynn, and former campaign adviser 

George Papadopoulos. All pleaded 

guilty to charges except for Mr Manafort, 

who denies wrongdoing. 

Allianz makes $120m investment 

in African infrastructure 

DAVID PILLING 

Buhari to seek second 

term as Nigeria’s 

president 

Page A4 

Allianz will become the first 

large commercial lender to 

commit long-term funding 

to an African infrastructure fund 

by making a nearly $120m 12-year 

loan to a vehicle underwritten by 

western development agencies. 

The commitment from the European 

insurer to the Emerging 

Africa Infrastructure Fund — part 

of a $385m funding round to be 

announced on Tuesday — could 

encourage other institutional investors 

to look more closely at financing 

what are generally considered 

risky African projects. 

Allianz said the deal was structured 

in such a way that its loans 

were “risk remote”, because they 

were backed by collateral in more 

than 40 projects. 

“We would only lose money if 

all the other equity investors are 

taken out,” said Claus Fintzen, 

chief investment officer for infrastructure 

debt at Allianz Global 

Investors, referring to international 

development agencies from 

Continues on page A4 

Michael Cohen has called himself a devoted supporter of Mr Trump: ‘I truly care about him and the family — more than just 

as an employee and an attorney’ © Reuters 

Volkswagen considering replacing CEO Müller 

German carmaker declines to expand on why it is exploring changes to management structure 

PATRICK MCGEE 

Volkswagen is considering replacing 

its chief executive, Matthias 

Müller, as part of an unexpected 

management shake-up announced on 

Tuesday. 

Two unscheduled releases from 

VW Group and Porsche SE, its parent 

company, said the companies were 

exploring changes to their management 

boards. 

The announcement from Volkswagen 

said the group was considering a 

“further development” of its management 

structure, including personnel 

changes. Mr Müller, it added, “had signalled 

his fundamental willingness” to 

participate in the changes, which could 

include a change in the position of CEO. 

Africa-focused Vivo Energy plans London IPO next month 

Listing could value petrol group at $4bn and break drought of Africa-related offerings 

DAVID PILLING 

Vivo Energy, which operates 

petrol stations and retail outlets 

in 15 African countries, has 

announced its intention to list on the 

London Stock Exchange next month 

in a deal that could break a drought of 

Africa-related initial public offerings. 

The listing, expected to value the 

company at $3bn-$4bn, comes after 

Helios Towers, an Africa-focused mobile 

phone tower operator, last month 

abandoned plans for an IPO because 

of weaker than expected investor appetite. 

Regional rival Eaton Towers is 

also considering dropping its listing, 

according to bankers. 

It also came amid reports on 

Tuesday that Vitol Group, the oil 

trader that owns 55 per cent of Vivo, 

was in discussions with private equity 

group Carlyle about pulling a listing 

of their joint-owned European refiner 

and petrol station operator Varo. That 

listing, on the Amsterdam stock exchange, 

was supposed to value Varo 

at €2bn. 

Christian Chammas, chief executive 

of Vivo Energy, said he could not 

comment on other listings but that 

Vivo was an Africa-focused petrol 

and retail operation that could not 

Ivan Glasenberg steps 

down from Rusal board 

as sanctions bite 

Page A5 

A separate statement from Porsche 

SE said that personnel changes at VW 

could also result in changes to the 

Porsche board, where Mr Müller oversees 

corporate strategy. 

The VW statement said the group is 

holding discussions with various executives 

amid speculation from analysts 

that Mr Müller could be replaced by 

Herbert Diess, head of the VW passenger 

car brand. 

It remains unclear why VW is considering 

a shake-up and a spokesperson 

declined to answer any questions. 

Volkswagen shares are up 4.4 per cent 

in mid-afternoon trading, extending 

gains within the past hour. 

Mr Müller became VW CEO just 

after the diesel emissions scandal was 

revealed in September 2015. The for- 

be compared with other businesses. 

He positioned Vivo as offering 

international investors exposure to a 

diverse group of mostly fast-growing 

African economies with rapidly 

expanding urban populations. “We 

are at the heart of the growth story, 

the growth of Africa’s population and 

consumer demand,” he said. 

The other big investor in Vivo, 

which was carved out of Shell’s African 

retail business in 2011, is Helios 

Investment Partners with a 44 per 

cent stake. Management owns 1 per 

cent. Under the IPO plans at least 

25 per cent of the company will be 

floated. 

If the deal gets away successfully, 

it will mark the first significant listing 

of an African-based business since 

2014, when Seplat, a Nigerian oil and 

gas group, raised $500m in a London- 

Lagos IPO. 

Since then, the “Africa rising” 

narrative has sagged amid lower 

commodity prices and greater scepticism 

about the potential of countries 

from the continent to break decisively 

from poverty. 

However, other African businesses 

are now preparing to list, bankers 

say, propelled by high demand for 

African debt offerings and more re- 

mer Porsche CEO has led a revival at 

VW, with car sales overtaking Toyota 

and shares largely recovering from the 

scandal. Mr Müller has embarked on a 

major electrification strategy to leave his 

mark on the group. He will be 67 when 

his contract expires in 2020 and has expressed 

no plans to stay on beyond then. 

“We have to look to make our top 

management more female, more international, 

and younger,” Mr Müller told 

the FT last September. “I’m German, I’m 

not female, and I’m not young.” 

Mr Müller, who was born just outside 

Karl-Marx-Stadt (now known by its original 

name of Chemnitz) in the former 

East Germany, said back then that the 

role was fun, but also challenging and 

“costs a lot of energy.” He would be 67 if 

he served through to the end of his term. 

alistic valuation assumptions. 

Aliko Dangote, founder of Nigeria’s 

Dangote Group, told the Financial 

Times he was seeking at least two 

independent directors from Europe 

for his cement business ahead of an 

expected listing in London as early as 

this year. He said he expected to float 

10-15 per cent of the business, which 

operates in more than 10 African 

countries, and raise between $1.2bn 

and $2bn. 

Liquid Telecom, which supplies 

cable fibre lines across southern, central 

and east Africa, is also expected 

to seek a listing as early as this year. 

“There are a number of companies 

that are considering coming to market,” 

said one banker with knowledge 

of the transactions. “There is interest 

from investors but there’s a high 

level of sensitivity to the quality of 

companies coming to market and 

the valuation they’re trying to attract.” 

Mr Chammas said a listing was 

a next logical step for Vivo, which 

wanted to broaden its shareholding 

and allow Vitol and Helios to monetise 

part of their investment. “We 

don’t need cash today but this will 

enable us, in the years to come, to go 

to the market for future investments,” 

he said.

A4 BUSINESS DAY 

C002D5556 Wednesday 11 April 2018 

FT 

NATIONAL 

BlackRock’s gun-free funds show ethical investing is a good bet 

The investment manager is creating options for those who want to avoid firearms 

BROOKE MASTERS 

Americans fed up with gun violence 

now have the chance to speak with 

their purses. Last week, BlackRock, 

the world’s largest investment manager, 

said it was creating several options for 

investors who want to avoid AR-15 rifles 

and other civilian firearms. 

Gunmakers and most gun retailers 

will now be excluded from BlackRock’s 

broader socially responsible mutual and 

exchange traded funds. Such funds have 

historically excluded companies that 

make cluster bombs, nuclear reactors 

and cigarettes, while favouring companies 

that are rated socially responsible. 

BlackRock’s institutional investors will 

be offered an even more targeted option: 

they can screen gun stocks out of 

their endowments and include gun-free 

index funds in their employees’ pension 

plan choices without going the whole 

hog on ethical investing. 

This level of pointed shunning is 

unprecedented for BlackRock. The 

investment manager began looking at 

the issue after the February massacre 

of 17 people at Marjory Stoneman 

Douglas High School in Florida sparked 

widespread protests against the US’s lax 

gun laws. The move also comes shortly 

after BlackRock’s chief executive, Larry 

Fink, warned companies that financial 

performance was not enough — they 

must also “make a positive contribution 

to society”. 

That is a noble idea, but investors 

have long been wary about the potential 

impact on their portfolios of trying to do 

good, while also doing well financially. 

“Sin stocks” — companies that 

sell alcohol, tobacco, weapons and 

gambling — have historically done 

better than the broader market. And 

Norway’s recent experience tends to 

back this up. Its sovereign wealth fund 

began excluding such stocks from its 

broad based equity investments in 

2004. That decision has cost it about 0.1 

percentage points a year. On the other 

hand, the fund calculated that excluding 

individual companies over specific 

environmental, human rights and other 

ethical issues had boosted its returns by 

0.04 percentage points annually. Over 

a 12-year period, the fund estimated 

that ethical investing cut returns by 

1.6 per cent compared with its equity 

benchmark. 

Allianz makes $120m 

investment 

Continued from page A3 

Britain, Sweden, Germany and 

elsewhere, which have put equity 

in the 16-year-old fund. 

Mr Fintzen added that the loan 

satisfied Allianz’s fiduciary responsibility 

to its investors. The interest 

rate was “more attractive than listed 

emerging market debt available on 

the market”, he said. 

We would only lose money if 

all the other equity investors are 

taken out 

Claus Fintzen 

Nazmeera Moola, co-head of 

fixed income at Investec, which 

manages the fund, called the Allianz 

investment “a milestone in 

terms of mobilising capital into 

infrastructure projects across the 

continent”. 

Allianz had decided to invest, 

she said, because it had understood 

there was “quite a big gap 

between perceived risk and the 

actual experience” of investing in 

African projects, which range from 

water supply in Rwanda to solar 

power in Uganda and a cement 

plant in the Democratic Republic 

of Congo. In spite of EAIF’s remit, 

which includes investing in fragile 

states, there had only been two debt 

writedowns out of more than 70 

projects in 22 countries, she said. 

Allianz’s participation could 

open the way for other insurers to 

look more seriously at investing in 

EAIF, or similar African infrastructure 

funds, she said. 

Allianz is lending €75m and 

$25m, both over 12 years. Returning 

investors to the fund, which has 

cumulative investments of about 

$1.3bn, are the African Development 

Bank and Standard Chartered 

as well as KFW and FMO, the 

German and Dutch development 

banks, respectively. 

The fund has 40 ongoing projects, 

half of which are in the power sector. 

Of those, two-fifths are in renewable 

energy, mostly solar and hydro. 

Most of sub-Saharan Africa has 

huge infrastructure shortages. Only 

35 per cent of people have access 

to electricity, against 78 per cent in 

south Asia and 96 per cent in east 

Asia and Latin America, according 

to the World Bank. It estimates that 

gross domestic product could be 

2 percentage points higher if the 

power deficit could be fixed. 

Ms Moola said that, since the 

2008 financial crisis and the imposition 

of Basel III, which imposes 

stricter capital requirements, 

banks’ appetite for lending to infrastructure 

projects in Africa had 

“completely dried up”. However, 

while there were legitimate concerns 

about the risk of default or 

regulatory changes, she said, deals 

could be structured in such a “belt 

and braces” way that they were relatively 

insulated from political risk. 

President Buhari 

Buhari to seek second term as Nigeria’s president 

Growing doubts over 75-year-old’s health and competence 

DAVID PILLING 

Muhammadu Buhari said he 

would seek re-election as 

Nigeria’s president in spite 

of doubts over the 75-year-old’s 

health and criticism of his first-term 

performance running Africa’s biggest 

economy. 

In pursuing re-election, Mr Buhari 

has bucked the advice of at least two 

former presidents who pleaded with 

him to hand over power to a younger 

man. Last month, Ibrahim Babangida, 

a former military leader, reiterated 

his attack, calling Mr Buhari an “analogue” 

president in a digital age. 

Having stated his intention to run 

in the February 2019 election, Mr 

Buhari was likely to win the nomination 

of his All Progressives Congress, 

according to analysts. Running for 

the APC against an as-yet-unknown 

candidate for the opposition People’s 

Democratic party, he would enjoy 

significant advantage in a system that 

favours incumbents, they added. 

Mr Buhari told the APC’s national 

executive committee of his intention 

to stand shortly before he flew to London 

ahead of a meeting of Commonwealth 

heads of state. According to 

Rusal suffered another blow 

on Tuesday after the London 

Metal Exchange took steps to 

stop material produced by the Russian 

company from being dumped in its 

warehouses. 

From April 17, the LME said it would 

introduce a “temporary conditional 

suspension on placing Rusal metal” 

under warrant in warehouses unless 

the owner could prove that it would 

not constitute a breach of sweeping US 

sanctions announced on Friday. 

“The temporary conditional suspen- 

Bloomberg, he told delegates he was 

running in response to “the clamour 

from Nigerians”. In apparent reference 

to his war on corruption, he added: 

“Together we must continue to santise 

Nigeria’s political environment.” 

Under Mr Buhari’s presidency, 

Nigeria’s economy has limped out 

of its worst recession in 25 years but 

has been unable to regain much dynamism 

outside an oil sector that still 

provides the vast majority of government 

revenue. 

The country has also faced several 

serious security problems, including 

continuing activity from Boko Haram 

Islamist militants in the north-east 

and Fulani herders, whose clashes 

with settled farmers throughout the 

country have caused thousands of 

deaths. Some have blamed Mr Buhari, 

who is also a Fulani, for not taking 

more decisive action to prevent the 

violence. 

The stock market fell to threemonth 

lows after Mr Buhari’s announcement, 

signalling concern 

about four more years of similar 

policy. 

However, Dipo Salimonu, chief 

executive of a fuels storage company, 

said there was something to be said 

for continuity and “having a firm and 

Rusal suffers blow from London Metal Exchange 

NEIL HUME 

sion shall continue until further notice, 

allowing the LME to engage with stakeholders 

to determine the appropriate 

longer-term approach,” the exchange 

said in a statement. 

The LME said certain market participants 

had expressed concern that metal 

produced or supplied by Rusal after April 

6 might constitute a sanctions risk. 

“In particular, the LME notes concern 

in the market that, even though 

the General Licenses provide exclusions 

after the date of 6 April 2018, they are not 

sufficiently broad in scope to provide 

full comfort to market participants that 

metal produced and supplied within the 

incorruptible hand at the wheel”. The 

president had “staunched a lot of 

the haemorrhage of waste and theft, 

which has given Nigeria breathing 

space for new polices, such as in the 

oil and gas sector and in redesigning 

tax collection”, he added. 

Nonetheless, Mr Salimonu also 

wondered whether “because of his 

advanced age and frail health he 

would have stepped aside and let the 

party field a more dynamic candidate”. 

Mr Buhari, who had ruled Nigeria 

once before as a military leader during 

the 1980s, was the first opposition 

candidate to win power through 

democratic elections. He came into 

office in 2015 on a wave of optimism 

that he could tackle corruption, curb 

the militant activity that had paralysed 

parts of the country and get the 

economy moving again. 

Much of that early optimism 

yielded to disappointment when Mr 

Buhari took months to set a policy 

direction or even to appoint a cabinet, 

a perceived indecisiveness that 

earned him the nickname “Baba Go 

Slow”. The view that he was ineffective 

was compounded by frequent trips 

abroad for medical treatment and his 

reputation for being aloof, even from 

members of his own cabinet. 

dates of the General Licenses would not 

be subject to Sanctions.” 

Rusal is scrambling to shore up its 

finances in the wake of the sanctions, 

which have sent shockwaves through 

financial markets and driven the price 

of aluminium up 9 per cent as traders 

and consumers try to find alternative 

suppliers. 

Rusal is the biggest producer of aluminium 

outside China, supplying 3.7m 

tonnes of the metal last year. Tuesday’s 

move by the LME present another challenge 

for the company, which analysts 

say might have to rescued by the Russian 

government. 

Uber handed further 

legal blow by European 

Court of Justice 

Campaigners say decision threatens regulatory 

protection for tech companies in EU 

MEHREEN KHAN 

The European Court of Justice has 

dealt another legal blow to Uber, just 

a few months after the Luxembourg 

court ruled that the ride-hailing app 

should be regulated like a traditional 

taxi company. 

Judges at the EU’s highest court 

on Tuesday ruled that the French 

government was within its rights 

to pass a criminal law in 2014 banning 

some illegal transport services 

without first notifying the European 

Commission of its plans. 

Tech companies are granted an 

additional layer of protection from 

national legislation in the EU with 

draft laws affecting them needing to 

be approved by Brussels. 

Uber had challenged France’s 

bypassing of the notification system 

after it was taken to court by a taxi 

driver in Lille for running its Uber- 

Pop service that used unlicensed 

drivers. Uber was fined €800,000 

under the law in 2016 after two of its 

executives were found to have run an 

illegal service. 

The ECJ said the EU’s 28 member 

states were allowed to “prohibit 

and punish the illegal exercise of a 

transport activity such as UberPop 

without having to notify the commission 

in advance of the draft legislation 

laying down criminal penalties 

for the exercise of such an activity”. 

Campaigners for digital companies 

said the ruling threatens to 

reduce the regulatory protection 

that tech companies have in the EU. 

The decision is the latest against 

Uber in Europe. In December the 

ECJ ruled that Uber should be classified 

as a taxi service, rather than 

a purely digital intermediation service, 

which opened it up to tougher 

transport national legislation in 

the EU. 

Uber has been under intense 

global scrutiny after a series of 

crises, including hiding details of a 

mass data breach from regulators, 

the alleged use of spy tactics and 

its failure to report sex attacks by its 

drivers. Travis Kalanick quit as chief 

executive last year and was replaced 

by Dara Khosrowshahi. 

In London, Uber has appealed 

against a decision by the regulator 

to block the renewal of its licence 

to operate in the capital. The city’s 

transport authority plans to overhaul 

regulations for taxis, in a move designed 

to increase oversight of ridehailing 

companies such as Uber. 

The company said in a response 

to the French decision that the ruling 

would have little impact on its 

operations; the UberPop peer-topeer 

service was suspended in 2015. 

The company now works only with 

licensed drivers in most of the EU.


FT 

Rusal’s Oleg Deripaska, left, and Glencore’s Ivan Glasenberg in talks in 2006. Mr Glasenberg joined the Rusal board in 2007 © Alamy 

Ivan Glasenberg steps down from Rusal board as sanctions bite 

Latest US action against Russia hits rouble and forces Glencore chief’s hand 

NEIL HUME, DAVID SHEPPARD AND 

HENRY FOY 

Glencore chief executive Ivan 

Glasenberg has stepped 

down from the board of Rusal, 

the Russian aluminium producer 

plunged into crisis by sweeping US 

sanctions, as the impact of the economic 

broadside continued to bite, 

dragging down the rouble on fears 

of a wider economic fallout. 

The Switzerland-based miner and 

commodity trader has also put on 

hold plans to swap its 8.75 per cent 

stake in the company, controlled by 

tycoon Oleg Deripaska, for shares in 

another one of his companies. 

The moves by Glencore on Tuesday 

morning highlight the potency 

of the latest US measures, which 

have sent shockwaves through Russian 

financial markets and left Hong 

Kong-listed Rusal, the biggest aluminium 

producer outside of China, 

scrambling to shore up its finances. 

The Russian currency fell 4.6 per 

cent in early trading to Rbs63.61 

against the dollar, taking its slump 

this week to 8.5 per cent, before recovering 

slightly to trade at Rbs62.26 

at midday. 

That helped boost demand for 

Russian stocks and send the Mos- 

Trump cancels Peru trip to oversee Syria response 

President is trying to build coalition for joint action over alleged chemical strike 

KATRINA MANSON 

Donald Trump on Tuesday cancelled 

a visit to South America 

to oversee the US response to 

a suspected chemical weapons attack 

on Syria, as he attempts to build a coalition 

for action that could include a 

military strike. 

On Tuesday morning, the White 

House announced that the president 

“will remain in the United States to 

oversee the American response to Syria 

and to monitor developments around 

the world”. 

Mr Trump met with his senior 

military and defence leadership on 

Monday night to discuss plans for 

Syria, where a reported chemical 

weapons attack he has described as “a 

barbaric act” killed at least 48 people 

on Saturday. 

“We have a lot of options, militarily. 

And we’ll be letting you know pretty 

soon. Probably after the fact,” he said 

before the meeting began. He had 

earlier said he would make “major 

decisions” about whether to strike Syria 

within 24 to 48 hours. 

The moves raised expectations that 

cow market’s benchmark index up 

almost 2 per cent in early afternoon 

trading, after falling more than 8 per 

cent on Monday on fears of further 

fallout from an alleged chemical 

weapons attack in Syria and worries 

that more companies could be 

affected by further sanctions. 

A senior executive at a large 

listed Russian industrial company 

told the Financial Times that many 

corporates feared further sanctions 

being imposed upon them. “We 

are afraid, of course. All of us are. 

Nobody knows who will be next,” 

he said, speaking on condition of 

anonymity. “This is why the whole 

market has tanked.” 

Rusal has seen its shares fall more 

than 56 per cent since the sanctions 

were announced on Friday. The 

company has told its customers to 

halt all financial transactions as it 

tries to maintain operations, which 

are now in effect barred from accessing 

the US financial system. 

In a statement, Glencore said it 

was “committed to complying with 

all applicable sanctions” and was 

“taking all necessary measures in 

order to mitigate any risks” as a result 

of the US measures taken against 

Rusal and EN+, Mr Deripaska’s 

London-listed holding company. 

Mr Trump was preparing to take military 

action despite his long-running 

opposition to fighting wars overseas. 

Earlier this year, he said that US troops 

would leave Syria “very soon” as the 

number of Isis fighters dwindle, and 

has been reluctant to take action in the 

wider Syrian conflict. 

But Mr Trump has made clear 

his opposition to the use of chemical 

weapons and a year ago authorised 

unilateral missile strikes against a 

Syrian air base after reports of a sarin 

gas attack. 

His administration has repeatedly 

warned Damascus against undertaking 

chemical weapons strikes. 

Mr Trump’s administration is trying 

to co-ordinate a joint diplomatic response 

with France, the UK and Saudi 

Arabia. Mr Trump spoke to French 

president Emmanuel Macron on Sunday 

and is due to speak to UK prime 

minister Theresa May on Tuesday. 

The White House said Mr Trump 

and Mr Macron had agreed to “exchange 

information on the nature of 

the attacks and co-ordinate a strong, 

joint response”. 

One reason the US is seeking a 

ANALYSIS 

Glencore also said it was “evaluating 

the position” of its contracts 

but added they were not “financially 

material” to the company. 

As Mr Glasenberg announced his 

resignation from the Rusal board that 

he joined in 2007, Russia’s central 

bank governor called for calm, saying 

that the country’s economy and 

financial markets would adapt to the 

new conditions forced upon it by the 

sanctions. 

“Some time is needed for adaptation 

of both the financial sector 

and the economy to these changed 

external conditions,” said Elvira 

Nabiullina. 

“The events that took place on Friday 

naturally cause correction of the 

markets,” she told an investor conference 

in Moscow. “As in such cases, 

there is increased volatility in the first 

days after the events, because there 

is still a lot of uncertainty for investors, 

and market participants are not 

entirely clear of the consequences.” 

Glencore purchased $2.4bn of 

aluminium from Rusal last year under 

a long-term supply deal that is due to 

expire later this year. Analysts reckon 

this contributed around $80m to 

Glencore’s earnings before interest, 

tax, depreciation and amortisation, 

a tiny percentage of its overall profits. 

joint diplomatic response is because 

officials said it had been hard to gain 

access to the area in Douma in order 

to confirm the use of sarin gas. 

Syria’s foreign ministry said it has invited 

OPCW, the international chemical 

weapons watchdog, to send a team 

into the country to investigate the attack 

with “full transparency and [to] rely on 

credible and tangible evidence”. Russia 

has denied any such attack took place 

and has also called for an independent 

inquiry into the attack. 

The US and allies are calling for 

access to the site to conduct an investigation. 

The US ambassador to the 

UN, Nikki Haley, told the UN Security 

Council on Monday that reports indicated 

victims had foamed at the mouth 

and nose and had ashen blue skin, 

indicators that chemical weapons had 

been used. 

“Chemical weapons have been 

reportedly used dozens of times and 

this council does nothing,” she said, 

adding Syria president Bashar al-Assad 

is “doing all he can to ensure maximum 

suffering”. “There can be no more 

rationalisations for our failure to act,” 

she said. 

C002D5556 

Six questions Mark Zuckerberg 

will not like from Congress 

Facebook founder set for grilling in wake of Cambridge Analytica data 

BARNEY JOPSON AND 

HANNAH KUCHLER 

Mark Zuckerberg, Facebook’s 

founder and chief 

executive, will be assailed 

by lawmakers when he testifies on 

Capitol Hill this week about the 

Cambridge Analytica data leak, 

fake news and Russian election 

meddling. Ron Wyden, a senior 

Democratic senator and longstanding 

ally of the tech industry, said 

last week: “Mr Zuckerberg is going 

to have a couple of very unpleasant 

days before Congress.” 

Here are the six key questions 

politicians on Capitol Hill need 

to ask. 

1. Can Congress look inside 

Facebook’s advertising systems? 

Facebook has a wealth of data on 

who advertisers want to target and 

how. So far, it has only publicly revealed 

to Congress the adverts and 

targeting used by the Russian Internet 

Research Agency. If Congress 

were granted access to Facebook’s 

systems, it may be able to see more 

detailed targeting from Russian troll 

farms, as well as learn more about 

who Cambridge Analytica targeted, 

with what messages, and how much 

they spent. 

Congress could also examine 

the developers who had access to 

vast amounts of data on Facebook’s 

platform, to see if, for example, 

other analytics companies or political 

marketers were behaving in a 

similar way to Cambridge Analytica. 

But the social network is likely to 

push back, arguing that to protect 

the privacy of users and advertisers, 

it cannot grant the government 

access. 

The group would also like to 

protect its commercial intellectual 

property: the targeting system is 

lucrative and competitors would 

be keen to understand in more detail 

how it works. Some data might 

be able to be anonymised, as in a 

new elections research initiative 

launched on Monday, but that 

might also make it harder for Congress 

to try to spot bad practices. 

2. Why didn’t you report the data 

leak earlier? 

Mr Zuckerberg is vulnerable over 

Facebook’s past decisions to keep 

the data leak under wraps. The company 

realised that Cambridge Analytica 

had, in its words, “improperly 

obtained” user data back in 2015. 

But instead of reporting it to data 

protection authorities or telling affected 

users, it chose to ask the data 

analytics firm and the Cambridge 

professor who originally harvested 

the data to delete it. Facebook did 

not even ban Cambridge Analytica 

from the platform until last month. 

The social network said that was 

because it was not an advertiser in 

2015 — but it took no measures to 

ensure it could never become one. 

When Cambridge Analytica started 

using Facebook for its political campaigns, 

Facebook employees even 

worked alongside the company. 

Lawmakers will press Mr Zuckerberg 

over why Facebook did not go 

public earlier. 

3. Why can’t you tell us where the 

data have gone? 

Lawmakers will try to make 

Mr Zuckerberg squirm over Facebook’s 

blind spots. It does not know 

BUSINESS DAY 

A5 

whether Cambridge Analytica still 

has the data of up to 87m users, exactly 

how many users were affected 

and whether the data were used in 

the Trump campaign (something 

Cambridge Analytica denies). The 

social network is waiting until the 

UK information commissioner 

finishes its investigation to embark 

on its own. 

The heart of the problem is that 

once data have leaked, there is no 

way to track them. Lawmakers can 

argue that is why Facebook should 

have had tighter controls on who 

could access data and for what purpose 

— and should have developed 

better ways to detect when an app 

had started to download it. 

4. Why shouldn’t we regulate 

you? 

Beyond the risk of being abandoned 

by users, the biggest threat 

that Facebook faces is legislation 

from Congress. Facebook has long 

argued that it can police itself. Improvements 

announced last week 

were designed to prove it is being 

proactive. But Facebook also made 

a significant concession: it executed 

a U-turn by saying it now supports 

the only concrete legislative proposal 

related to its business. That bill, 

the Honest Ads Act, would require 

tech companies to keep copies of 

digital political ads, report how 

much they cost and who paid, and 

make them searchable to the public. 

The act, however, addresses only 

a sliver of Facebook’s activities and 

does not touch on consumer privacy. 

Counting in the company’s 

favour is congressional gridlock. Mr 

Zuckerberg could say he is open to 

regulation knowing that Congress 

remains divided over how to act and 

is unlikely to pass any new laws in 

this election year. 

5. How much profit will you 

sacrifice to fix this? 

Both Mr Zuckerberg and his 

second-in-command, Sheryl Sandberg, 

have vowed not to change 

Facebook’s business model. Profits 

from targeted advertising have 

made Facebook one of the largest 

companies in the world: last year 

it generated $16bn in net income 

on almost $40bn of revenue. So 

far, Facebook has made many announcements 

about its plans to 

restrict the data that developers 

can access, be it offering surveys, 

games or dating apps. It has not 

pledged to reduce the amount of 

data Facebook itself collects to help 

advertisers. 

Facebook could promise major 

changes — such as not tracking 

people’s web activity, or not using 

technologies that analyse what or 

who is in photos uploaded to the 

network — but reducing this kind 

of data collection would be likely 

to hit its bottom line. 

6. Are you the problem? 

The Cambridge Analytica saga 

has prompted the most searching 

questions to date about whether 

Mr Zuckerberg is the right person 

to lead Facebook. Lawmakers will 

be tempted to raise the ultimate 

form of accountability: the founder 

stepping down (as Travis Kalanick 

did at Uber last year). Addressing 

criticisms of naivety, Mr Zuckerberg 

has said: “I was maybe too idealistic.” 

That is unlikely to be enough 

for Congress.

A6 

BUSINESS DAY 

C002D5556 


PRIVATEEQUITY 

& FUNDRAISING 


C002D5556 

Alta Semper eyes two more investments 

after N6bn Health Plus deal 

BUSINESS DAY 

INSIGHT 

Mistakes most PE firms 

make while working with 

single family offices and 

super rich 

MICHEAL ANI 

A7 

Source: Alta Semper Capital 

LOLADE AKINMURELE AND 

ENDURANCE OKAFOR 

Alter Semper’s $18 

million (N6 billion) 

investment 

in retail pharmacy 

chain, Health Plus, 

is the first of three to come this 

year, according to the Londonbased 

private equity firm. 

In an exclusive telephone 

interview with BusinessDay, 

Zachary Fond, a director at 

the Africa-focused private equity 

firm, said there will be two 

more investments in Nigeria’s 

healthcare and retail sectors 

before the curtains draw on 

2018. 

“We plan to close two more 

deals in the consumer healthcare 

and retail sectors this 

year,” Fond said, declining to 

provide further details, given 

the sensitivity of such transactions. 

Alta Semper’s $18 million 

(N6 billion) investment in 

Health Plus in March is the 

second deal in the Nigerian 

health care space this year and 

it takes the total deal value to 

N15 billion, according to data 

compiled by BusinessDay. 

PE WORD OF THE WEEK 

jority-stake in a leading oncology, 

radiology and diagnostics 

company in Morocco. 

While no company was 

named, Alta Semper said the 

deal will be concluded in May 

2018. 

Alta Semper Capital LLP is a 

private equity firm specializing 

in growth capital and prefers 

to invest in food, beverage, 

other FMGC, supermarkets 

and retail, retail and consumer 

banks, micro finance, insurance, 

healthcare facilities & 

services, generics manufacturing, 

pharmacies, beef, poultry 

farming/processing, fertilisers, 

e-payments, mobile payments, 

diagnostics/imaging, 

M-health, telemedicine. 

It considers investments 

with a specific focus on Africa. 

Ghana, Senegal, Ivory Coast, 

Tunisia, Kenya, Ethiopia, 

Uganda, Tanzania, Mozambique, 

Egypt and Nigeria, all 

make the cut of countries Alta 

Semper plans to invest in, according 

to information on its 

website. 

Nigeria is home to one of 

the least penetrated formal 

retail markets in the world, 

despite its large and growing 

In January, there was a $25 

million (N9 billion) acquisition 

of medical diagnostics company, 

Echo Scan, by Londonlisted 

Integrated Diagnostics 

Holdings (IDH) which created 

a joint venture with Man Capital, 

the investment arm of the 

billionaire Mansour family. 

Growing demand, driven by 

favourable demographics, increased 

consumer awareness 

and evolving consumption 

patterns are big attractions to 

Nigeria’s healthcare and retail 

sectors, according to Fond. 

“Much of the healthcare 

infrastructure is confined to 

major cities, with people living 

in urban areas having approximately 

four times as much 

access to healthcare as those 

living in rural areas,” Fond said. 

Alta Semper’s investment 

in Health Plus was its first in 

Nigeria and second in Africa, 

following a US$45 million investment, 

in 2016, in Egyptbased 

consumer healthcare 

company, Macro Pharmaceuticals. 

The consumer and healthcare 

focused private equity 

firm is however said to be in 

the middle of acquiring mapopulation. 

The retail pharmacy sector 

is highly fragmented, with 

many independent drug stores 

and several patent medicine 

outlets. 

Structural challenges with 

the industry supply chain, has 

helped counterfeit pharmaceuticals 

find their way into 

over forty percent of the retail 

market, while most wholesale 

and retail sales across the 

country are still made through 

informal markets. 

Nigeria deal making has 

turned the corner this year, 

as investors get over the foreign 

exchange illiquidity that 

dogged deal flows in the last 

two years. 

In the first three months of 

2018, deals have blasted past 

the $500 million mark, according 

to data compiled by 

BusinessDay. That’s 5.2 percent 

more than total deals in 2017 

and 30 percent more than the 

$384 million worth of deals 

recorded in the whole of 2016. 

The economy expanded 

0.83 percent in 2017 after contracting 

the year before on the 

back of higher global oil prices 

and local production. 

Mandatory Redemption 

A right of an investor to require the company to repurchase some or all of an investor’s shares at a stated price at a given time in the future 

According to Usha Bhate, 

an executive director at Institutional 

Investor and a 

leading international authority on 

single-family offices, “Single-family 

offices and the extremely wealthy 

have a number of reasons for being 

unhappy with private equity firms 

even when investment results are 

solid. 

“A big issue is that many private 

equity firms are transactional while 

single-family offices and the superrich 

are often relationship oriented. 

When private equity firms build 

meaningful relationships with 

them, they are able to raise capital 

even when investment returns are 

off for a while,” he added 

A large percentage of singlefamily 

offices and a significant 

number of the super-rich (net 

worth = $500 million or more) are 

heavily investing in private equity. 

While their interest in private 

equity funds is strong, many private 

equity firms are doing a poor job of 

managing these relationships. Consequently, 

a percentage of singlefamily 

offices and the super-rich are 

disinclined to entrust more monies 

to private equity firms even when 

investment performance is good. 

A related mistake is where private 

equity firms are all about 

closing sales. 

“Even when it comes to investments, 

single-family offices and 

most of the super-rich are looking 

for solutions to their concerns,” says 

Angelo Robles, founder and CEO of 

the Family Office Association and 

author of Effective Family Office. 

“Hard sales pitches, which are 

not uncommon from private equity 

firms and other types of money 

managers, tend not to resonate with 

these investors.” 

“For private equity firms to get 

significant assets now and in the 

future from single-family offices 

and the super-rich requires they really 

understand them,” says Bhate. 

“They should make a concerted effort 

to understand their investment 

priorities and concerns.” 

A really comprehensive understanding 

can take some time to 

develop. Nevertheless, it is likely 

to be a very rewarding way to go. 

Along these lines, according to 

Peter Sasaki, managing member of 

CGS Associates, “To raise capital 

on-going from the ultra-wealthy, 

knowing their experience with 

private equity funds and direct investments, 

their time horizons, the 

returns they’re anticipating, and 

their views of lock up periods can all 

be key in framing the discussion.” 

Single-family offices and the 

super-rich have been and will likely 

continue to be a source of substantial 

capital for many private equity 

firms. By avoiding these three interrelated 

mistakes, private equity 

firms will probably be better able to 

raise capital from these exceptionally 

wealthy investors. 

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

A8 BUSINESS DAY C002D5556 Wednesday 11 April 2018 

PRIVATEEQUITY 

&FUNDRAISING 

People & Perspectives 

Fragmented healthcare sector provides investment opportunities 

With thousands of small clinics, hospitals, and diagnostic centres spread across 36 states, Nigeria’s healthcare market is extremely fragmented 

and poorly provided for. In this interview with BusinessDay’s LOLADE AKINMURELE and ENDURANCE OKAFOR, a director at Alta Semper, 

ZACHARY FOND said opportunities are there for investors with a long-term view on the healthcare sector. Excerpts: 

Health Plus investment 

Alta Semper is investing 

US$18 million 

into Health Plus. The 

investment from will 

enable Health Plus to 

continue to expand its store footprint, 

allow the Company to continue 

to invest in market-leading 

human talent, develop regional 

distribution centres in commercial 

hubs across Nigeria as well as selectively 

explore private label and 

e-commerce initiatives. 

Why Nigeria? 

The healthcare and retail markets 

in Nigeria are characterised by 

growing demand, driven by favourable 

demographics, increased 

consumer awareness and evolving 

consumption patterns. Furthermore, 

Nigeria is home to one of 

the least penetrated formal retail 

markets in the world, despite its 

large and growing population. The 

retail pharmacy sector is highly 

fragmented, with many independent 

drug stores and several patent 

medicine outlets. Furthermore, 

given structural challenges with the 

industry supply chain, counterfeit 

pharmaceuticals find their way into 

LEX Africa members from 

around the continent gathered 

at a seminar in Johannesburg 

to discuss Africa’s investment climate 

and private equity market, 

governance in Zimbabwe, and 

the future of Nigeria’s flourishing 

economy. 

Quality goods, policy reformation 

that addresses the challenges 

of doing business in Africa and a 

welcoming environment for foreign 

direct investors are just three areas 

that speak volumes about the continent’s 

growing investment potential. 

The positive perspective on the 

continent was shared at a seminar 

hosted by Werksmans Attorney’s 

and LEX Africa titled, An Outlook on 

Africa 2018. LEX Africa’s members 

from Nigeria, Zambia, Zimbabwe 

and Mozambique presented forecasts 

for each of their countries, 

delving into the economic climate, 

investment opportunities, reforms 

and challenges. 

Sternford Moyo, Senior Partner 

of Zimbabwean LEX Africa member 

Scanlen & Holderness said in 

Zimbabwe, new leadership had 

managed to present an attractive, 

stable political situation to the 

global market. 

The change in presidents also 

brought with it fresh hope for widespread 

policy reform that promoted 

ease of access for foreign direct investors 

hoping to do business in the 

country. Mr. Moyo said Zimbabwe 

had enormous opportunities in the 

areas of agriculture, energy, infrastructure 

rehabilitation and mining. 

Reformations were being applied 

to policies that previously limited 

foreign ownership in specific sectors 

of mining, to allow for a greater 

stake. 

He said Zimbabwe had untapped 

mineral wealth that could 

be accessed proper equipment and 

over forty percent of the retail market, 

while most wholesale and retail 

sales across the country are still 

made through informal markets. 

Moreover, much of the healthcare 

infrastructure is confined to major 

cities, with people living in urban 

areas having approximately four 

times as much access to healthcare 

as those living in rural areas. 

The investment into HealthPlus 

will enable the Company to capture 

the pent-up demand for high- 

An Outlook on Africa 2018 

improved technology. They key 

was to look for the potential within 

the challenges, to uncover the opportunity. 

In particular, Mr. Moyo pointed 

to flooded mines and regions within 

Zimbabwe that could be explored 

for lithium, platinum, diamonds and 

gold. He said private equity investors 

with rehabilitation resources could 

enter these areas and find great 

returns in the medium to long-term. 

Mozambican LEX Africa member 

Dr. Pedro Couto echoed Mr. Moyo’s 

sentiments. He said investor confidence 

in the sea-facing country was 

growing steadily. He urged investors 

however, to consider the long-term 

yield instead of doing quick business. 

Dr. Couto said amendments 

to laws pertaining to Foreign Direct 

Investment was proof that Mozambique 

was making itself as attractive 

as possible to the global market. 

Faster transactional processing was 

also being implemented for the international 

investment community. 

“We are going to have a Local 

Content law… It’s a pure concept of 

a law that requires three investors 

to partner with those in the local 

sector. There is no mandatory 51 

percent partnership… it is basically 

a requirement that in certain cases 

[and] in certain industries, you will 

need a Mozambique partner and 

a commitment to develop local 

business (as part of the investment 

deal).” 

In March, Brazilian mining company 

Vale announced that it, together 

with Japanese partner Mitsui 

& Co, inked USD 2.7 billion funding 

deal to finance the Nacala Logistics 

Corridor (NLC) The rail system, 

when complete, will connect the 

Mozambique-based Moatize coal 

mine, to the Nacala port and will 

thereafter link up to Zambia through 

landlocked Malawi. 

quality yet affordable healthcare 

and professional beauty supplies 

by developing regional distribution 

centres in commercial hubs across 

Nigeria, rapidly expanding the 

Company’s footprint across Nigeria 

as well as developing a wholesale 

channel and investing in private 

label and e-commerce. 

The allure of consumer goods 

and health sector 

Dr. Couto said the rail system 

would certainly extend the reach of 

exported and imported goods further 

into Africa, giving ease of access 

into Asian markets as well. 

Sharon Sakuwaha, LEX Africa’s 

Zambia partner said while the 

Zambian leg of the rail system 

— the Chipata-Petauke-Serenje 

railway — had experienced some 

delays in construction, on the policy 

side, government had mandated a 

heavy cargo and bulk goods policy 

that would see at least 30 percent 

of goods transported via rail. This 

would encourage investment in the 

rail transport sector as there was 

guaranteed traffic siphoned into 

the system. 

Osayaba Giwa-Osagie, Senior 

Partner of Nigerian LEX Africa, 

said while Africa’s largest economy 

experienced a recession in the first 

quarter of 2016, for the first time 

in 25 years, it had emerged in the 

second quarter, albeit sluggishly. 

Mr. Giwa-Osagie said the situation 

arose from lower revenues 

of oil — Nigeria’s dominant export 

— but government had tackled the 

situation by trying to diversify the 

economy. 

“Our oil production dropped to 

as low as 1.1 million barrel per day, 

but within 24 months it increased to 

2.2 million barrels per day. With the 

efforts of the government to diversify 

the economy, we’ve seen an emphasis 

on agriculture (for example), the 

economy is back now. The government 

has also worked very hard to 

reform the way business is done in 

Nigeria. At the moment structures 

are being put in place to diversify 

the economy [and] policies are being 

introduced to make it easier for 

foreign investors to come to Nigeria.” 

He said in the past four or five 

years, private equity companies 

have come into the country to buy 

Alta Semper specifically invests 

into market-leading businesses in 

defensive sub-sectors. Consumer 

and healthcare verticals fit well 

within this remit. The entire Alta 

Semper team has spent the majority 

of their careers covering these 

sectors. 

Alta Semper’s fund strategy is 

to create and preserve value by 

implementing material operational 

improvements across our portfolio 

within our selected growth markets. 

The opportunity to do so exists 

as a result of the dearth of experienced 

sector-focused investors in 

markets where businesses require 

operational knowledge as well flexible 

and patient capital. We seek to 

invest in companies that have the 

following characteristics: 

Country footprints 

into local companies. 

According to the South African 

Private Equity and Venture Capital 

Association, Nigeria outperformed 

South Africa and Kenya in recording 

the continent’s highest value private 

equity deals between 2012 and 2017. 

Nigeria recorded a total of 112.14 

deals worth USD 7.8 billion, while 

South Africa recorded 207.32 deals 

worth USD 2.8 billion and Kenya, 

100.8 deals worth USD 1.17 billion. 

Ayo Akinwumi, Head of Research 

FSDH was quoted by Business Day 

as saying: “Nigeria attracted the 

highest private equity deals in the 

continent as a result of the business 

opportunities that investors see in 

country.” 

Mr. Giwa-Osagie said the country 

was seeing private equity investment 

from all over the world, including 

New York to Senegal. “With the 

political stability, I believe Nigeria 

is the right place to come to at the 

moment (to invest). The population 

is there, you have educated people 

and you also have infrastructure 

deficit which makes it easy for 

people who have the capital and 

knowledge to come into Nigeria to 

fill in (the gaps).” 

In December last year, Deloitte 

released a survey that indicated a 

generally optimistic view of private 

equity activity in Africa. The survey 

revealed that investors anticipated a 

more positive outlook for Sub-Saharan 

Africa over the 2017-2018 period 

and despite the oil price slump from 

2014 and the continued slowdown 

in real GDP growth between 2015 

and 2016 across the African continent, 

sentiment and confidence had 

shown a strong rebound. 

The survey titled, “2017 Deloitte 

Africa Private Equity Confidence 

Survey: Translating potential into 

investment growth” revealed that 

most respondents across all three 

Alta Semper has invested in Egypt. 

We acquired a majority stake in 

Macro Holding for c. US$45million. 

Alta Semper is a frontier market focused 

private equity manager with 

a current focus on Africa. 

Africa is made up of 54 different 

countries, and is extremely diverse. 

We will invest in twelve large, diversified, 

politically stable and fastgrowing 

African economies and regions. 

We will invest only in these 

countries, where we feel there is 

appropriate risk-adjusted returns 

for investments in the Healthcare 

& Consumer industries. 

The entire team has deep connections 

to Africa including strong 

ties both personally and professionally. 

Given many of our deals 

are proprietary, out networks in 

Africa lend a significant competitive 

advantage to our firm in terms 

of sourcing, execution and portfolio 

management. 

Plans for the future 

We are looking at a number of opportunities 

across our target geographies 

Africa. Each of our target geographies 

is at a unique stage of development / 

economic diversification, growth, infrastructure 

and technology access. 

Opportunities differ across each 

country; some regions present better 

consumer opportunities, while others 

present compelling opportunities 

in healthcare. In each case, we take 

a balanced and systematic approach 

to assessing and mitigating risk vs. 

returns. 

regions were investment ready and 

expected to invest more over the 

next 12 months. 

Deloitte also predicted that competition 

for new investments would 

increase, particularly in East and 

West Africa; and consumer-focused 

sectors, which include food and 

beverages, agriculture, healthcare 

and financial services, would rank 

among top focus sectors for investors. 

Addressing the seminar, Tanya 

van Lill CEO of SAVCA said in South 

Africa, 2017 was a very tough year for 

private equity. “Funds, especially 

funds II and III, found it difficult to 

fundraise. They also found it difficult 

to agree on prices on targets and 

assets, especially with the political 

uncertainty in South Africa (pre- 

ANC national elective conference).” 

Ms. Van Lill said 2016 was a stellar 

year for exits, where over USD 

1.5 billion in returns paid out, which 

was a high for the industry in the 

past 20 years. She said a downturn 

had been experienced in 2017, but 

the mood was changing. Ms. Van Lill 

said currently investors are reporting 

a positive shift in energy with the new 

leadership in the country and the optimism 

had spread across the region. 

“When I go to international conferences, 

I don’t have to convince 

them (investors) about private equity; 

I have to convince them about 

investing in the region. [One] gets 

the sense that investors are ready to 

come to meeting with their chequebook 

and not just their notebook.” 

“According to the South African 

Private Equity and Venture Capital 

Association (SAVCA), a total of 

USD 6.5 billion has been raised for 

African private equity from 2011 to 

2016, with a total reported deal value 

over the same period of USD 22.7 

billion for 919 deals. In 2016 alone, 

145 deals were reported, totaling 

USD 3.8 billion.”

WEST AFRICA 

ENERGY intelligence 

oil gas power 


C002D5556 

BUSINESS DAY 

POWER 

New power sector 

meter regime: 

Business Questions 

finance people 

appointments 

Page 4 

Ibe Kachukwu to 

deliver keynote 

address at 

Brandzone’s ‘Light 

Up Nigeria Energy 

Conference’ 

Page 6 

OPEC weekly basket price 

DAY 

PRICE 

6/4/18 65.11 

30/3/18 66.45 

23/3/18 65.08 

16/3/18 62.33 

9/3/18 62.52 

Source: OPEC 

Debrief 

How much impact will trade 

war have on oil prices? 

FRANK UZUEGBUNAM 

Oil prices fell about 

2 percent after US 

President Donald 

Trump threatened 

new tariffs on China, 

reigniting fears of a trade war 

between the world’s two largest 

economies that could hurt global 

growth. The US president said he 

had ordered US trade officials to 

consider tariffs on an extra $100 

billion of imports from China, escalating 

tensions with Beijing. 

Crude oil prices sank after each 

round of tariffs, and while there 

are real concerns about the ripple 

effects on demand and global economic 

growth, it is unclear whether 

or not the oil and gas relationship 

will be directly targeted in a 

major way. 

Brent crude futures settled 

down $1.22 at $67.11 a barrel while 

US West Texas Intermediate (WTI) 

crude futures fell $1.48 to $62.06 

a barrel, a 2.3 percent loss. Brent 

crude dropped 2.8 percent in the 

week while US crude fell 4.4 percent, 

the biggest weekly decline 

since early February. 

The traditional supply-demand 

fundamental news was mixed. 

However, the main determinant 

of the direction appears to have 

been lower appetite for risky assets 

in response to worries over an 

escalating trade war between the 

United States and China. A combination 

of news events helped fuel 

a two-sided trade before the market 

turned decisively lower for the 

week. 

However, crude oil prices 

lacked clear direction as markets 

balanced between declining US 

inventories and potential trade 

war fears. Markets in general 

have been influenced by fears of 

a trade war between the United 

States and China as both sides 

play with proposals of multibillion-dollar 

tariffs. 

Jamie Dimon, CEO, JPMorgan 

Chase, warned that “anything that 

starts to resemble a trade war creates 

risk and uncertainty to the 

global economic system.” 

China needs the energy. Also, 

oil and gas exports have succeeded 

in cutting the US trade deficit. 

Some analysts think US oil and gas 

exports to China are too important 

for both countries. But not everyone 

agrees. 

“China can ditch American 

energy at any time because there 

is plenty of supplies elsewhere, 

whereas for the US, energy is a 

sensitive subject,” Will Yun, a commodities 

analyst at Hyundai Futures 

Corp. said. 

“If China shows its willingness 

to impose tariffs on crude, it will 

send a shock wave through markets,” 

said Min Byungkyu, a global 

strategist at Yuanta Securities Co.



C002D5556 

WEST AFRICA 

Outlook 

Nigeria: 

Qua Iboe, Forcados crude oil grades 

decouple ahead of Qua Iboe maintenance 

Ni g e r i a n 

c r u d e 

oil grade 

Qua Iboe 

strengthened 

above Forcados, 

after spending the last 

month at parity as reduced 

loadings over May 

and upcoming maintenance 

have tightened 

market fundamentals. 

Qua Iboe was assessed 

at a 20 cents/b premium 

to Forcados at a $1.10 premium 

to Dated Brent, the 

widest spread between 

the two grades since December 

28, 2017. 

These two premium 

grades in West Africa typically 

track one another 

closely and Forcados also 

tends to price above Qua 

Iboe. But the fates of the 

two grades switched this 

week with Qua Iboe pricing 

higher. 

Next month, no loadings 

are scheduled until 

May 8 for Qua Iboe, to 

make way for scheduled 

maintenance. Details 

around the maintenance 

have yet to be confirmed. 

The rise in Qua Iboe 

prices was the exception 

among the broader 

West African market. The 

other West African grades 

continued to decline to 

three-month lows on slow 

Ghana: 

Fuel prices increase by 1.5 percent in April 

The retail prices of 

petroleum products 

at the pumps 

have gone up by 

about 2 percent for the first 

pricing window this month 

(April). For the first two 

weeks of this month, consumers 

should be prepared 

to pay more for fuel they 

purchase at the various retail 

outlets for the Oil Marketing 

Companies (OMCs). 

The first pricing window 

spans from the 3rd to the 

15th of this month, April. 

The increases are as a result 

of the rise in the price 

of gasoline and gasoil for 

the period. While gasoline 

has increased by some 3.7 

percent to $646 per metric 

tonne, gasoil has gone up 

by about 3 percent to $572 

per metric tonne. 

Some major oil marketing 

companies like Total 

and Shell show that the 

demand from key Asian 

markets, namely India 

and China. 

China buys over half 

of the Angolan programs 

each month, which has 

particularly hurt heavier 

Angolan grades. Only half 

of the Angolan May loading 

program was heard 

to have cleared, further 

aggravating the sluggish 

demand for crude from 

the east. 

price of a litre of diesel, has 

gone up by 1.5 percent or 7 

pesewas. This means you 

will be paying 4 cedis 56 

pesewas for a litre of diesel 

compared to the previous 4 

cedis 49 pesewas. Similarly, 

the two companies have 

adjusted the price of a litre 

of petrol up by 1.3 percent 

or 6 pesewas which translates 

into a litre price of 4 

cedis 57 pesewas from 4 cedis 

51 pesewas. 

In March, however, the 

prices of petroleum products 

dropped in the first 

pricing window but remained 

stable in the second 

pricing window. 

Brief 

oil 

Algeria: 

Algeria seeks to cut energy 

consumption after oil earnings fall 

Algeria is offering 

motorists incentives 

to more 

than double the 

number of cars running 

on natural gas by 2021 in 

an effort to reduce consumption 

of costly imported 

fuel amid strained 

public finances. 

The North African 

country has been struggling 

with a halving since 

2014 of vital oil and gas 

revenues, which make 

up 60 percent of the budget 

and 95 percent of exports. 

Officials hope that 

making the use of liquefied 

petroleum gas (LPG) 

more attractive will reduce 

gasoline and diesel 

consumption, 2.9 million 

tonnes of which Algeria 

needs to import annually. 

The government is offering 

to cover partially 

the cost of car conversions 

for drivers, tax exemptions 

and a stable 

retail price for LPG, of 

which domestic output is 

sufficient. 

In contrast, the pump 

price of subsidised gasoline 

and diesel has risen 

about 50 percent since 

2016. 

Algeria plans to convert 

500,000 vehicles by 

2021 and 1.1 million by 

2030, said Mohamed 

Bouzeriba, head of the 

National Agency for the 

Promotion and Rationalisation 

of the Use of Energy. 

So far, only 200,000 

cars run on gas out of a 

total 6 million. 

Algeria, which has 

spent billions of dollars 

to provide cheap apartments 

and other benefits 

as a means of avoiding 

protests, is keen to tackle 

energy spending to maintain 

social order. 

Authorities also want 

to cut electricity consumption. 

State utility 

Sonelgaz still needs 

aid despite a 20 percent 

power price increase two 

years ago, the first in more 

than a decade. 

Demand for electricity 

has risen significantly in 

recent years due to infrastructure 

projects aimed 

at diversifying the economy 

away from oil and gas. 

Algeria has also been 

building thousands of 

subsidised housing units 

and connecting them to 

the power grid. 

To boost power output, 

the government plans to 

invite bids for the construction 

of three photovoltaic 

solar plants with 

a capacity of 4,000 megawatts, 

officials said. 

In an effort to save 

power, the state electricity 

company has started 

to replace public lighting 

in some towns and roads 

under an energy-efficiency 

programme. 

Officials say measures 

may also include higher 

electricity prices for firms 

in the next few years. 

“Everyone must comply 

with rationalisation, 

especially in administrative 

and public buildings, 

social housing, schools 

and mosques as well as 

with public lighting,” Energy 

Minister Mustapha 

Guitouni said.


gas 

Brief 

India: 

India sets October target for gas 

trading exchange 

India plans to set up a 

natural gas trading exchange 

as early as October 

this year to prepare 

for a surge in supply 

from India’s east coast and 

a slew of liquefied natural 

gas (LNG) terminals. 

Oil Minister Dharmendra 

Pradhan in a meeting 

with industry officials set 

a deadline of October 1 

for the country’s primary 

natural gas distribution 

regulator to set up the 

exchange, according to 

sources. 

The exchange is aimed 

at standardizing natural 

gas prices so that domestic 

prices are not set at such a 

discount to international 

market rates. 

India currently imports 

LNG at global rates 

of around $7.50 per million 

British thermal units 

(mmBtu), while the government 

sets domestic gas 

prices at $3.06 per mmBtu. 

The exchange will also 

help to reduce the risks associated 

with the pricing 

differences. 

Indian Prime Minister 

Narendra Modi has laid 

out a plan to increase the 

share of gas in India’s energy 

mix to 15 percent by 

2030 from below 6.5 percent 

now. 

India currently produces 

close to 90 million standard 

cubic meters per day 

(mscmd) of gas and imports 

another 70 mscmd as 

LNG, according to government 

figures for 2016-17. 

Norway: 

Significant gas discovery made 

offshore Norway 

New natural gas 

discoveries on the 

Norwegian continental 

shelf could 

hold “significant” quantities 

of reserves, a subsidiary of 

Austria’s OMV said. 

The Norwegian subsidiary 

said it made discoveries 

at the Hades and Iris targets 

in the Norwegian Sea. The 

company put the combined 

reserve estimate at between 

40 million and 245 million 

barrels of recoverable oil 

equivalent. 

“Hades and Iris could be 

of significant size and the 

licensees will evaluate and 

further investigate the potential 

of the discoveries,” Knut 

Mauseth, the managing director 

of OMV Norge, said in 

a statement. 

The targets are close to 

existing infrastructure from 

fields already in production 

in the Norwegian Sea. The 

Norwegian Petroleum Directorate, 

which confirmed 

the discovery, said the partners 

would progress with a 

view toward future development. 

Apart from Russia, Norway 

is the largest oil and 

natural gas producer for the 

European market, designating 

nearly all of its offshore 

output for exports. Total production 

for February, the last 

full month for which data 

are available, was down 2.2 

percent from January and 2.5 

percent lower than the same 

month last year. 

KELECHI EWUZIE 

C002D5556 

BUSINESS DAY 

03 

WEST AFRICA 


Why West Africa must drive her 

untapped natural gas supplies potential 

Natural gas 

is one of 

the most 

widely-used 

energy resources; 

it is however sad 

to note that West Africa 

with its huge natural resources 

in the last three 

decades had lagged behind 

in natural gas production. 

However, the story is 

taking a look for the better 

with governments in West 

African countries increasing 

their efforts to secure 

stable gas supply to enhance 

power generation 

capacity coupled with renewed 

interest by investors 

across the spectrum 

who are now tapping into 

the regions’ abundant 

supply. 

According to the International 

Energy Agency 

(IEA), natural gas will 

take the lead in meeting 

the world future energy 

needs, and demand will 

grow faster than oil and 

coal over the next five 

year. 

The report expounded 

on the many positives of 

the future of natural gas. 

It was based on the insatiable 

appetite for natural 

gas, the growth in natural 

gas supply and increasing 

use of natural gas in 

transportation. There are 

some 500 global companies 

exploring natural gas 

deposits throughout West 

Africa. 

The international energy 

agency projected 

that by 2022, gas demand 

will grow at 1.6 percent 

per year. By this, indication 

are that annual gas 

consumption may reach 

4, 000 billion cubic metres 

(bcm) with an almost 

90 percent of the antici- 

pated growth in demand 

coming from developing 

economies. 

Gas discoveries are 

stimulating sector growth 

and infrastructure development 

in the region 

as large percentage of 

gas production continues 

to come from Nigeria 

among other countries in 

the region. 

Growth in the sector 

will be stimulated by low 

prices, abundant supply, 

as well as its role in producing 

a cleaner energy 

source. 

Report indicates that 

the rise of West Africa 

within the natural gas 

market will be just as beneficial 

to the multinational 

corporations as it will 

to the small, local participants. 

The success of natural 

gas development is 

incumbent on the participation 

of governments, 

NGOs and the corporate 

sector. Strategic planning 

is an essential component 

in the process. 

Industry experts 

opine that even though 

Nigeria is among the 

leading countries with 

huge natural gas reserves 

in Africa in general and 

West Africa in particular, 

obstacles such as regulatory 

measures, infrastructure 

development 

and malfeasance at the 

government level need 

to be overcome in order 

to develop her vast natural 

gas resources. 

Analysts observe that 

gas exploration requires 

massive investment and 

a strategic commitment. 

So while the rewards look 

huge, the road to unlocking 

their full potential is 

still long and rocky. 

They observe that the 

challenges associated 

with developing West 

Africa’s vast natural gas 

resources are real, and 

careful consideration is 

needed in terms of how 

best to achieve the objectives 

of socioeconomic 

and infrastructural development. 

Industry close watchers 

are of the views that 

as West African countries 

move toward gas-based 

economies and deregulate 

the market, the result 

will be greater investment 

in all areas of the supply 

chain, from utilising 

flared gas to transportation 

of gas from offshore 

fields. 

To them, West Africa 

with its vast quantities of 

natural gas is well harnessed 

have the potential 

to fundamentally transform 

the global landscape 

by uplifting communities, 

and even entire regions.



C002D5556 

WEST AFRICA 


power 

New power sector meter regime: 

Business Questions 

CHIJIOKE MAMA 

Amidst the numerous 

interventions 

witnessed 

since the privatisation 

of the Nigerian 

power sector in 2013, the 

recent (March 2018) Meter 

Asset Provider (MAP) 

Regulation by NERC is 

notable for one reason; It 

is targeted at the last mile 

of the value chain which 

doubles as the revenue 

collection point for the 

preceding, problematic 

and connected stages; 

from gas supply to transformer 

installation. 

The MAP regime as envisaged 

by the regulation 

appears promising on a 

cursory look, but there 

are several points and 

questions that should be 

robustly thought through 

by both the Distribution 

companies (Discos) and 

the potential Meter Asset 

Providers (MAPs). Although 

previous regulations 

such as the Metering 

Service Provider (MSP) 

regulation has provided 

some structure to the anticipated 

Disco-MAP relationship 

and has even 

created a pool of potential 

MAPs (though with multiple, 

distinct permits), 

the new MAP regulation 

is sufficiently distinct that 

there will be little or no 

economies of experience 

to leverage on both sides. 

The novelty, nascence 

and almost fluidity paint a 

business risk portrait that 

both Discos and MAPs 

should carefully study. 

A notable fluid feature 

is that, unlike previous 

regulations from NERC, 

the MAP regulation gives 

DISCOs a lot of leeway in 

the regulatory requirement 

of engaging a Meter 

Asset Providers, which is 

both an opportunity and 

a risk for all stakeholders 

(compare with the Nigerian 

Mini Grid Regulation). 

For example, the Metering 

Service Agreement 

(MSA) and the Service 

Level Agreements (SLA) 

are two instruments that 

DISCOs and MAPs should 

use to govern their relationship. 

But their form 

and structure appears 

to be largely undefined, 

which is unsuitable for 

the complexity of this 

frontier (although NERC 

demands filing and eventual 

approval). 

Strategically speaking; 

plugging the rampant, 

last mile revenue losses, 

through effective metering 

is a great step. But this 

step calls for a huge investment. 

Confirmed demand 

for about 5 million 

meters in the 11 Discos 

means an initial capital 

investment of about $400 

million is needed, excluding 

meter installation and 

service costs, all of which 

would be amortised. Operating 

this segment of 

the sector will need a high 

level conversation on 

proper de-risking, financing 

and asset securitization. 

Plugging-in a third 

party provider of meter 

assets and metering services 

introduces a whole 

new dimension and 

unique considerations to 

the electricity business in 

Nigeria. The DISCO-MAP 

relationship that now 

needs to be birthed and 

midwifed in Nigeria has 

inherent risks and opportunities, 

and its eventual 

form and terms would 

be as negotiated by each 

DISCO, which empties 

a bucket of related core 

business queries; 

What are the best 

models for collecting 

metering service charge 

and their risks given 

wide rampant consumer 

apathy to payments and 

power theft proclivities?; 

What should form 

the core components of 

the Meter Service Agreement 

(MSA) and the 

Service Level Agreement 

(SLA) between Discos 

and MAPS in other to allocate 

risks to the parties 

best able to handle 

it?; What asset financing 

requirements should be 

factored into the MAP 

procurement bid process 

viz-a-viz the regulation’s 

required ring fencing of 

metering service charge?; 

What are the economic 

benefits of outright meter 

purchase by customers 

(to both Discos and 

MAPs) and how can it is 

incentivized? 

Other questions include; 

The MAP regulation 

is silent on the Repair 

and Replacement terms 

for out rightly purchased 

meters (Non Amortised 

meters). What are the issues 

with MAPs - Customer 

engagements in 

this scenario and the concerns 

for revenue losses 

to Discos? ; Which of the 

parties in the NERC-Disco-MAP 

nexus has the 

obligation of monitoring 


(SLA) and Meter Service 

Agreement (MSA)? There 

is an apparent (unaddressed) 

opportunity 

to create and support a 

sharing economy between 

Discos and MAPs 

for potentially interwoven 

resources. What are 

the possible models and 

how can the Meter Service 

Agreement and the 


capture it? Disco can leverage 

existing physical 

resources to accrue economic 

benefits from the 

partnership; What are the 

best securitization options/partners 

available 

to Discos for complying 

with the securitization 

requirements of the MAP 

regulation? 

The MAP regulation requires 

the procurement of 

MAPs to be concluded by 

the Discos, 120 days from 

April 03, 2018. The metering 

solution to the power 

crises in Nigeria has been 

birthed with promises of 

delivering much awaited 

relief to consumers, but 

the solution - evidently - 

has to scale and survive 

several business and political 

tests. 

Chijioke MAMA is 

CEO of MeiraCopp Nigeria 

Limited (MNL); 

a Transaction Advisory 

and Project Management 

Company and also 

a Doctoral Researcher in 

Business Management. 

m.chijioke@meiracopp. 

com 

Brief 

Tanzania: 

Tanzania launches 240MW power 

plant in bid to ease shortages 

Tanzania launched 

a power plant with 

a capacity of 240 

megawatts (MW), 

part of a plan to end chronic 

energy shortages in East 

Africa’s third-biggest economy. 

The natural gas-powered 

Kinyerezi II plant, 

which has begun operation, 

was built on the outskirts 

of Tanzania’s commercial 

capital Dar es 

Salaam by Japan-based 

Sumitomo Corp using 

combined-cycle technology 

for 798 billion shillings 

($353.72 million). 

Eighty-five percent 

of the cost was covered 

through a loan from a Japanese 

bank, a Tanzanian 

presidency statement said. 

“We expect to complete 

two more projects here in 

Kinyerezi, which will also 

employ natural gas and 

generate 600 megawatts,” 

Medard Kalemani, Energy 

Minister said. 

The government aims to 

South Africa: 

South African IPP secures 

projects totalling 620MW 

After the much anticipated 

signing 

of the REIPPPP 

Power Purchase 

Agreements (PPAs), a 

South African IPP, Pele 

Green Energy (PGE), has 

signed their outstanding 

contracts for round 3.5 and 

4 projects. 

The project’s generation 

capacity total of 620MW 

takes the company’s total 

project portfolio to 884MW. 

source more of Tanzania’s 

electricity from natural gas 

above the current 50 percent, 

authorities say. 

Tanzania boasts reserves 

of over 57 trillion 

cubic feet (tcf) of natural 

gas, but faces periodic 

power shortages as it relies 

on hydro-power dams in a 

drought-prone region for 

about a third of its 1,570 

megawatts of installed capacity. 

Last year President John 

Magufuli said the country 

needed to invest $46.2 billion 

over the next 20 years 

to revamp its ageing energy 

infrastructure and meet 

soaring electricity demand. 

Gqi Raoleka, Managing 

Director of Pele Green 

Energy, said “REIPPPP has 

enabled our emergence as 

a 100 percent Black-owned 

independent power producer, 

operating along the 

full value chain of the power 

generation sector. 

We have, thus, made 

substantial investments in 

our capabilities and therefore 

welcome the signing of 

the PPAs as this gives us an 

opportunity to firmly position 

ourselves as a globally 

competitive South African 

company.” 

Raoleka added: “We remain 

humbled by the opportunity 

our government 

has given us to continue 

to deliver clean energy to 

South African society and 

in so doing, create jobs and 

add value to the economy.”

Wednesday 11 April 2018 C002D5556 BUSINESS DAY 05 

POLICY 

Tanzania’s new $344M natural gas 

plant holds lessons for Nigeria 

ISAAC ANYAOGU 

With a population 

of over 

54 million 

and grid connected 

power 

capacity of 1,400 MW, frequent 

power outages were the norm in 

Tanzania. All these will change 

soon as the country, one of Africa’s 

top ten economies, last 

week, opened a brand new $344 

million, 167.82-megawatt natural 

gas power plant outside of 

the nation’s commercial capital, 

Dar es Salaam. 

Tanzania had always depended 

on hydropower but frequent 

droughts acted as threats 

to the country’s energy ambition. 

Along with new Kinyerezi 

II natural gas plant, the East African 

nation, in July, is embarking 

on a massive 2,100 MW hydropower 

project, to be built at 

the Stiegler’s Gorge in the Selous 

Game Reserve which would 

be completed in 2021. 

Combined with the new 

natural gas plant, Tanzania is 

expecting to solve the nation’s 

previous power woes with this 

massive development in the nation’s 

power generation capabilities. 

Analysts say the country 

may soon be able to sell off surplus 

energy to other countries. 

But what were some of the 

factors that helped the country 

on its way of realising its energy 

ambitions? Unlike many African 

countries that rely on China, 

John Magufuli, president of 

Tanzania turned attention to 

Japan. 

Japanese company Sumitomo 

Corp. constructed Tanzania’s 

new natural gas plant, and 

a Japanese bank loan covered 

85 percent of the $353.72 million 

price tag. This is significant 

because it does not come 

with exploitative terms and 

conditions Chinese loans are 

perversely reputed for which 

sometimes demands Chinese 

citizens involved from project 

design to clearing bushes, leaving 

little value for the country’s 

citizens. 

While Nigeria regales its citizens 

with a dubious claim that 

it is spending over N1.4 trillion 

a year on fuel subsidies, Tanzania 

has moved away from importing 

fossil fuels to focus on 

using their own domestic natural 

gas reserves, allowing them 

to save $4 billion between 2015 

and 2017, and therefore massively 

accelerate domestic economic 

output and capabilities. 

The adoption of natural gas and 

the shift away from HFO and 

diesel has also saved nearly $6.7 

billion just in 2015. 

In Nigeria, the government 

is making arguments on why 

it needs to maintain a fraudulent 

subsidy regime that is 

cost the country billions. With 

landing cost of petrol put at 

N171 per litre, the Nigerian 

National Petroleum Corporation 

(NNPC) incurred N37 

on each litre of fuel at a depot 

price of N133.80, leading to a 

daily subsidy of N2.046billion 

for 55million litres. The landing 

cost of petrol has been 

higher than N145, after crude 

oil prices rose to $45 per barrel 

in January 2017. This puts total 

subsidy spends since February 

2017 to February this 

year at N746.79billion. There 

is no better manual on how to 

self-destruct an economy. 

Tanzania has 57 trillion cubic 

feet of proven natural gas 

reserves, but they are mostly 

undeveloped and infrastructure 

is still unavailable. Tanzania 

will need to invest $46.2 

billion over the next 20 years 

to overhaul its outdated energy 

infrastructure and increase 

output capacity to meet with 

the developing nation’s fastgrowing 

demand for electricity. 

Nigeria has significant 

proven gas reserves of 187 Trillion 

Cubic Feet, (TCF) which 

ranks it the ninth in the world. 

But the LPG market has witnessed 

massive growth from 

less than 70,000 metric tonnes 

consumed in 2007 to about 

500,000MT currently according 

to the operators. There are 

opportunities in Nigeria with 

deeper adoption of natural 

gas both for CNG vehicles and 

other uses for domestic gas but 

the country’s energy policy is 

grossly deficient. 

“There is a strong economic, 

environmental and security 

case for use of gas in Nigeria, 

including even for Compressed 

Natural Gas (CNG) cars” said 

Chijioke Mama, energy analyst 

and founder of EnergyDatar, an 

energy intelligence firm, in a recent 

comment for BusinessDay. 

Operators say big policy 

initiatives that will encourage 

investments in manufacturing 

plants, storage facilities and jetties, 

and the promotion of gaspowered 

vehicles are required 

in Nigeria.



C002D5556 

WEST AFRICA 


Brief 

Eni offices searched in Congo 

Republic corruption probe 

Offices of Italian 

oil major Eni 

were searched 

and documents 

seized in an investigation 

by Milan prosecutors 

into alleged corruption in 

Congo Republic, the company 

said. 

Prosecutors asked the 

company to hand over 

documents relating to 

operations in Congo between 

2009 and 2014, an 

Eni spokesman said adding 

that Eni had met the 

request. 

The state-controlled 

major, under investigation 

in a separate case 

over alleged corruption 

in Nigeria, said the offices 

of two employees 

at the company had 

been raided, but gave no 

names. 

Eni said last year it was 

being investigated by Milan 

prosecutors for international 

corruption in the 

Congo Republic. 

The case revolves 

around agreements 

signed by Eni’s Congo 

subsidiary with the country’s 

Ministry of Hydrocarbons 

between 2013 

and 2015 covering exploration 

and production 

permits and the choice 

of partners in the African 

country. 

The sources said prosecutors 

were investigating 

whether certain contracts 

hid bribes to Congo 

public officials. 

“Eni has absolutely 

nothing to do with alleged 

wrongdoing regarding 

operations that 

are the object of investigation,” 

the Eni spokesman 

said. 

Eni has worked in the 

Congo Republic since 

1968. In 2016 it produced 

98,000 barrels of oil 

equivalent per day in the 

country. 

finance people 

appointments 

Ibe Kachukwu to deliver keynote address at 

Brandzone’s ‘Light Up Nigeria Energy Conference’ 

The Honourable 

Minister of State 

for Petroleum 

Resources, Emmanuel 

Ibe 

Kachikwu, will be delivering 

the keynote address at 

this year’s Brand Innovation 

Light Up Nigeria Energy 

conference with the 

theme; “Repositioning the 

energy sector for growth” 

which would hold on Tuesday 

May 15th, 2018 at the 

Oriental Hotel, Lagos. The 

annual Brand Innovation 

Conference is organized 

by Brandzone Consulting 

LLC. 

The Light Up Nigeria 

conference advisory 

board and conference 

chairperson is Tonye Cole, 

Executive Director & Co- 

Founder Sahara Energy 

Group. Other key industry 

thought leaders confirmed 

as Speakers at the upcoming 

conference include Gabriel 

Ogbechie, Managing 

Director CEO, Rainoil Nigeria 

Limited, Nkechi Obi, 

Vice Chairperson, Techno 

Oil, Joe Ezigbo Founder 

and CEO, Falcon Corporation, 

Dada Thomas, President 

Nigeria Gas Association 

and Founder/CEO, 

Frontier oil Limited, Yomi 

Awobokun, CEO, Enyo Re- 

tail Oil and Gas, and others. 

The Brand Innovation 

Conference in its 5th year, 

is an annual multi-sector 

Thought Leadership Series 

created by Brandzone 

Consulting LLC. The conference 

gathers industry 

thought leaders, global 

leaders, technocrats, government 

policy makers, 

economic experts, investors, 

regulators and experts 

from diverse sectors 

and industries annually. 

So far, the yearly event has 

become a platform for the 

dissemination of accurate 

and beneficial narrative 

around the Conference 

focus area. This year’s 

conference is primarily 

focused on the Nigerian 

Energy sector. 

The Light Up Nigeria 

conference is designed 

to draw industry experts 

across the various subsectors 

to share insights 

and knowledge on industry 

growth topics, collaborate 

and deliberate on timely 

relevant issues that would 

help to unlock opportunities 

for growth in power 

generation, transmission 

and distribution. It is 

structured to stimulate the 

downstream sector growth, 

drive energy availability 

through increased natural 

gas optimization, and the 

provision of power to enterprises. 

It would also explore 

the opportunities in building 

strong Energy brands 

as a lever for overall sector 

growth and national development. 

As Nigeria’s most 

influential industry conference, 

the annual Brand 

Innovation Conference is 

a transformation platform 

that leverages its extensive 

network of experienced 

and accomplished speakers 

for knowledge sharing, 

proffer solution to issues of 

national and economic development 

while building 

a networking platform that 

fosters collaboration and 

growth. 

Speaking on the conference, 

Chizor Malize, Managing 

Partner and Chief 

Executive Officer of, Brandzone 

and Convener of the 

Light Up Nigeria Energy 

Conference said “Energy 

plays a crucial role in the 

economic growth, progress, 

and development, as 

well as poverty eradication 

and security of any nation. 

Uninterrupted energy supply 

is a vital issue for all 

countries today. Future 

economic growth depends 

largely on the long-term 

availability of energy from 

sources that are affordable, 

accessible, and environmentally 

friendly. 

JP Morgan says it knew ex-minister linked to firm in Nigeria oilfield deal 

JP Morgan Chase has 

acknowledged it knew 

a former Nigerian oil 

minister convicted of 

money laundering would 

benefit when it transferred 

over $800 million 

of government funds to a 

company he controlled, 

according to a court document 

seen by Reuters. 

JP Morgan made the acknowledgement 

in its legal 

response to a lawsuit filed 

by Nigeria over transactions 

made by the US bank 

when Royal Dutch Shell 

and Eni bought offshore 

oilfield OPL 245 from Malabu 

Oil and Gas in 2011. 

The $1.3 billion deal has 

spawned legal cases spanning 

several countries and 

involving Nigerian government 

officials and senior 

ENI and Shell executives, 

a number of whom face 

trial in Italy on corruption 

charges next month. 

Malabu is controlled by 

Dan Etete, who was Nigeria’s 

oil minister at the time 

of the deal and was convicted 

of money laundering 

in France in 2007. 

The lawsuit against JP 

Morgan accuses the bank 

of negligence over the 

transfer of funds from a Nigerian 

government escrow 

account into which Shell 

and Eni had deposited 

money to secure OPL 245. 

It claims $875 million from 

the bank. 

In its written defense, 

filed in a British court last 

week, JP Morgan said Britain’s 

Serious Organised 

Crime Agency (SOCA), 

now renamed the National 

Crime Agency, had 

approved the transfers to 

Malabu. It denied negligence. 

The bank had previously 

said only that it “considers 

the allegations made in 

the claim to be unsubstantiated 

and without merit”. 

It was not immediately 

clear whether JP Morgan’s 

acknowledgement that it 

knew of Etete’s links with 

Malabu will have any impact 

on the trial starting in 

Milan in May. 

Eni’s chief executive is 

among those going on trial 

in Milan on charges of paying 

bribes to Etete and others, 

including sums that 

went to Malabu. Shell and 

Eni deny wrongdoing in 

relation to OPL 245. 

Shell said in April last 

year that it “always knew” 

the Nigerian government 

would compensate Malabu 

and that Etete was involved. 

It had previously 

told Reuters only that payments 

went to the Nigerian 

government. 

The lawsuit against JP 

Morgan said that although 

it received a request from 

Nigeria’s finance ministry 

to transfer funds to accounts 

controlled by Malabu, 

the bank showed gross 

negligence by not making 

further checks before allowing 

the transaction.


marketinsight 

Oil falls on Trump’s latest 

China trade threats 

C002D5556 

OPEC Flakes 

BUSINESS DAY 

07 

WEST AFRICA 


Oil prices fell 

about 2 percent 

after 

US President 

Donald 

Trump threatened 

new tariffs on China, reigniting 

fears of a trade war 

between the world’s two 

largest economies that 

could hurt global growth. 

Trump said he had ordered 

US trade officials to 

consider tariffs on an extra 

$100 billion of imports 

from China, escalating 

tensions with Beijing. 

China warned it was 

fully prepared to respond 

with a “fierce counter 

strike” of fresh trade 

measures if the United 

States follows through on 

Trump’s threat. 

Brent crude futures 

settled down $1.22 at 

$67.11 a barrel while US 

West Texas Intermediate 

(WTI) crude futures fell 

$1.48 to $62.06 a barrel, 

a 2.3 percent loss. Brent 

Lower costs and 

improved market 

conditions led 

to more oil and 

gas investments, though 

spending last year was below 

the historic average, 

analysis found. 

Wood Mackenzie, energy 

consultant group, 

found that average 

spending last year on major 

projects, those with 

commercial reserves of 

more than 50 million 

barrels of oil equivalent, 

was around $2.7 billion, 

the lowest in a decade. 

Average spending over 

the last decade was closer 

to $5.5 billion. 

Jessica Brewer, a principal 

analyst at Wood Mackenzie, 

said operators are 

crude dropped 2.8 percent 

in the week while US 

crude fell 4.4 percent, the 

biggest weekly decline 

since early February. 

spending more on mature 

basins, expansions to existing 

infrastructure or on 

projects that can be tied 

in to nearby producers. 

Less is being spent on new 

oil and gas field developments. 

“Both investors and operators 

want to see faster 

cycle times and quicker 

returns on upstream projects,” 

Wood Mackenzie’s 

Brewer said in a statement. 

“We should continue to 

see operators favoring a 

‘leaner and meaner’ path 

in 2018.” 

Nevertheless, Wood 

Mackenzie found that 

improved market conditions 

and improvements 

on where operators can 

break even in terms of the 

OPEC member Libya’s 

oil output is at around 

1.05 million barrels per 

day despite a continuing 

outage since February at 

its 70,000 bpd El Feel oilfield. 

Russian Energy Minister 

Alexander Novak 

said that an arrangement 

under which Moscow cooperates 

with the OPEC 

oil group could become 

indefinite once a current 

deal to curb oil production 

expires at the end of 

the year. 

The Organization of 

the Petroleum Exporting 

Countries and other large 

oil producers led by Russia 

have agreed to curtail 

their combined output by 

around 1.8 million barrels 

per day until the end of 

2018 to smooth out bloated 

oil inventories. 

OPEC and its allies 

should keep the cuts to 

ensure healthy price levels 

as a way to boost investment 

in the industry 

and avoid a supply and 

price shock in the long 

run, Qatar’s energy minister 

said. 

Oil, gas spending on major projects at lowest level in a decade 

price of oil led to an uptick 

in industry sentiment. The 

most competitive prospects 

are in the waters offshore 

Mexico, Norway and 

the United Kingdom. For 

natural gas, the bonanza 

could be in Iran, Norway 

and Oman. 

Separately, Angus Rodger, 

a research director at 

Wood Mackenzie, said liquefied 

natural gas in particular 

is a bright spot on 

the horizon, though questions 

remain on investment 

rigor. 

“While it is good news 

that operators have found 

ways to grow in tough 

business conditions, the 

big question is whether the 

industry is actually spending 

enough,” he said. 

OPEC celebrates NIPS 

vak said. 

“If such cooperation 

is maintained in the longer 

term, we will send a 

signal that we can undertake 

new joint actions 

to improve the market at 

any moment,” said Novak. 

He added that a new 

international organization 

could be formed 

to discuss oil markets, 

bringing in other producers. 

The Organisation 

of Petroleum 

Exporting 

Countries 

(OPEC) has dedicated 

the March edition of 

OPEC bulletin to celebrate 

Nigeria’s oil and 

gas sector and the recently 

concluded maiden 

edition of Nigeria International 

Petroleum 

Summit (NIPS). 

“There is always 

something thrilling 

about being part of innovation; 

and this Summit 

is truly innovative. I have 

no doubt that as it evolves 

into the premier platform 

for shaping petroleum 

policies in Africa; years 

from now, we will all take 

pride in saying we were 

at the first edition!” With 

Russian Energy 

Minister Alexander 

Novak 

said an arrangement 

under which Moscow 

cooperates with the 

OPEC oil group could 

become indefinite, once 

a current deal to curb oil 

production expires at the 

end of the year. 

Alexander Novak’s 

remarks come as OPEC 

and 10 non-OPEC countries 

are increasingly discussing 

a new format for 

their cooperation agreement, 

which expires at 

the end of 2018. The pact 

shows “there is a tool, 

mechanism to influence 

the market balancing 

quickly if needed, in case 

of crises similar to the 

one started in 2014,” No- 

these words, OPEC’s Secretary 

General, Mohammad 

Sanusi Barkindo, 

summarized how all of 

the participants at NIPS 

felt. 

NIPS was aimed at 

replicating in Africa the 

type of knowledge exchange, 

problem-solving 

discussions and networking 

opportunities 

which an event such as 

the Offshore Technology 

Conference (OTC) 

provides. The event was 

extremely well attended. 

Not only were discussions 

productive and 

outcome orientated, 

the inaugural edition of 

NIPS served as a tremendous 

platform to expand 

and internationalize the 

Summit going forward. 

Russia: Cooperation with OPEC 

could be indefinite



C002D5556 

WEST AFRICA 


In association with 

‘Global energy demand grew by 2.1 percent in 2017’ 

talking points 

ISAAC ANYAOGU 

Paris-based energy think-tank, the 

International Energy Agency has 

said that global energy demand 

rose by 2.1 percent in 2017, more 

than twice the previous year’s 

rate, boosted by strong global economic 

growth, with oil, gas and coal meeting most 

of the increase in demand for energy, and 

renewables seeing impressive gains. 

According to the group, over 70 percent 

of global energy demand growth was met by 

oil, natural gas and coal, while renewables 

accounted for almost all of the rest. Improvements 

in energy efficiency slowed down last 

year. As a result of these trends, global energyrelated 

carbon dioxide emissions increased 

by 1.4 percent in 2017, after three years of 

remaining flat. 

However, carbon emissions did not see 

the same level of traction. Carbon emissions, 

which reached a historical high of 

32.5 gigatonnes in 2017, did not rise everywhere. 

While most major economies saw a 

rise, others; United States, United Kingdom, 

Mexico and Japan, experienced declines. 

The biggest drop in emissions came from the 

United States, driven by higher renewables 

deployment. 

These findings are part of the International 

Energy Agency’s newest resource, the Global 

Energy and CO2 Status Report, 2017, released 

online today, which provides an up-to-date 

snapshot of recent trends and developments 

across all fuels. 

“The robust global economy pushed up 

energy demand last year, which was mostly 

met by fossil fuels, while renewables made 

impressive strides,” said Fatih Birol, the IEA’s 

Executive Director. “The significant growth 

in global energy-related carbon dioxide 

emissions in 2017 tells us that current efforts 

to combat climate change are far from 

sufficient. For example, there has been a dramatic 

slowdown in the rate of improvement 

in global energy efficiency as policy makers 

have put less focus in this area.” 

Other key findings of the report for 2017 

are oil demand grew by 1.6 percent, more 

than twice the average annual rate seen over 

the past decade, driven by the transport sector 

(in particular a growing share of SUVs and 

trucks in major economies) as well as rising 

petrochemical demand. 

In the case of natural gas, consumption 

grew 3 percent, the most of all fossil fuels, 

with China alone accounting for nearly a 

third of this growth, and the buildings and 

industry sectors contributing to 80 percent 

of the increase in global demand. 

Coal shifted from previous record of poor 

run and saw demand rose about 1 percent, reversing 

declines over the previous two years, 

driven by an increase in coal-fired electricity 

generation mostly in Asia. 

But Renewables made a strong showing 

and reported the highest growth rate of 

any fuel, meeting a quarter of world energy 

demand growth, as renewables-based electricity 

generation rose 6.3 percent, driven by 

expansion of wind, solar and hydropower. 

The group said electricity generation 

increased by 3.1 percent, significantly faster 

than overall energy demand, and India and 

China together accounting for 70 percent of 

the global increase. 

Energy efficiency improvements slowed 

significantly, with global energy intensity improving 

by only 1.7 percent in 2017 compared 

with 2.3 percent on average over the last three 

years, caused by an apparent slowdown in efficiency 

policy coverage and stringency and 

lower energy prices. 

Fossil fuels accounted for 81 percent of 

total energy demand in 2017, a level that has 

remained stable for more than three decades. 

This indicates that while the shift to renewables 

is real, fossil fuels will not be driven 

aground as an energy source any time soon.

BUSINESS DAY 

Opinion 

NEWS YOU CAN TRUST I WEDNESDAY 11 APRIL 2018 

C002D5556 

Chief Ayo Adebanjo at 90 

OPEYEMI AGBAJE 

opeyemiagbaje@rtcadvisory.com 

The title of Chief 

Ayo Adebanjo’s 

autobiography 

“Telling it as 

it is” is most 

appropriate and comprehensively 

describes 

the Afenifere colossus in 

terms of his personality 

and ethos: I think one 

thing everyone-friends, 

adversaries, opponents 

and supporters of Chief 

Adebanjo will agree on is 

his candour and frankness. 

He speaks his mind, and 

he does so with forthrightness 

and without dissimulation! 

I have had three recent 

opportunities to observe 

the great man at relatively 

close quarters – twice at 

Akure, and once in a meeting 

in his Lekki Phase 1, 

Lagos home and on all occasions, 

the attributes that 

you observe are always the 

same-boldness; direct and 

forthright communication 

without mincing words; a 

willingness to challenge 

and even to confront; and 

of course his irrepressible 

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. 

The announcement 

by EbonyLife Ltd of 

a collaboration with 

Sony Pictures Television 

to co-develop three new 

scripted TV projects comes 

at a significant moment in 

the evolution of Nollywood. 

EbonyLife and Sony Pictures 

would work on three projects 

while Sony Pictures would 

distribute them internationally. 

One of the projects would 

be a TV series inspired by the 

Dahomey Warriors. 

Mention of Dahomey Warriors 

in the announcementssparked 

the interest of movie 

parted Sir (Chief) OlaniwunAjayi; 

the crises in 

the Action Group and the 

treasonable felony trial 

of Chief Awolowo and his 

own escape to exile in 

Ghana; the AD crisis and 

especially his evidently 

troubled relationship with 

late Chief Bola Ige; his 

unsurprisingly negative 

views on former President 

Olusegun Obasanjo; and 

his experiences around 

love, courtship, marriage 

and familyoffer a depth 

of insight and context on 

multiple topics in Yoruba 

and Nigerian history and 

politics. 

The book could have 

been fuller and grander, 

but it is still a very valuable 

and important contribution 

to our recorded history. 

I congratulate Baba 

Adebanjo; my friend, AdeolaAzeez, 

his first daughter 

by his loving wife, Chief 

Mrs Christiana Adebanjo; 

and the entire family for 

his enduring health and 

his relevance and influence 

on the Yoruba and 

Nigerian polity. 

Recently I have spent 

a lot of time reflecting on 

ceaseless and perennial 

conflict in Yorubaland-in 

our communities, our traditional 

institutions and in 

our politics. Reading Chief 

Adebanjo’s autobiography 

reinforced my concerns 

on that subject. Conflict 

is off course unavoidablepolitics 

is itself about the 

negotiated and non-violent 

(hopefully) resolution 

of conflicts over power and 

interests, but in a multiethnic 

country like Nigeria 

in which ethnic, regional 

and religious interests 

actively seek hegemony 

over others, it does not 

help that the Yoruba often 

dissipate our energy and 

creativity on internal battles! 

I have indeed settled 

on a hypothesis that we 

usually wear ourselves out 

fighting ourselves inside 

Yorubaland that we are 

exhausted and thus unable 

or unwilling to confront 

the external dangers that 

confront the Yoruba people, 

until they become 

existential!!! 

That was our experience 

with series of internal 

crises that consumed 

the AG, UPN and 

AD, all of which provided 

an opportunity for conservative 

or infact retrogressive 

political groups 

usually nurtured north of 

Yorubaland (NPC, NPN, 

PDP, APC) to penetrate 

the region and subvert its 

energy and vigour, which 

for a man who has lived a 

very full and active life in 

journalism, political party 

organization, law practice, 

community affairs, 

pro-democracy advocacy 

and agitation, and to the 

ripe, old age of 90 is truly 

remarkable. 

I picked up a copy of 

“Telling it as it is” at the 

book launch on April 3, 

2018 in Victoria Island and 

I started reading it in the 

car as my driver navigated 

out of the venue. I did not 

drop the book through the 

drive back to my office in 

Lagos Island; though a 

hasty lunch on my desk; 

as I signed off on various 

letters and documents 

in the office; and until 

around 8pm same day 

when I reached the last 

page, I didn’t stop readingthe 

insights and reflections 

on multiple issues 

including his early life and 

education; his early experience 

as Action Group 

Organising Secretary in 

my Sagamu, Remo home 

town; his relationship with 

Chief Obafemi Awolowo 

and the Awo family and 

household; his lifelong 

friendship, indeed partnership 

with another long 

termAwoist,recently depolitics 

and leadership. 

The Afenifere-Obasanjo 

antagonism, for which I 

mostly blame Obasanjo, 

ensured the West derived 

modest, if not marginal 

benefits from Obasanjo’s 

eight years in power; and 

the Afenifere-Bola Ige 

conflict destroyed the 

AD and culminated in 

our recent drift and risk 

of political subjugation! 

Most debilitating has 

been the Afenifere-Bola 

Tinubu crises which 

divided Afenifere itself, 

and now presents Yorubaland 

and Nigeria with 

the real threat of external 

hegemony! 

I am not a proponent 

of ideology or principlefree 

politics just for the 

sake of achieving unity 

and avoiding conflict, but 

surely it could be possible 

and must now be 

imperative for Yoruba 

politicians and leaders to 

reserve our greatest energies 

and resourcefulness 

for development within 

the West and protection 

of Yorubaland and its 

people and interests from 

external threats. 

To Chief Ayo Adebanjo’s 

credit, no one could accuse 

him of playing the type of 

transactional, commercially-oriented, 

prebendal 

and “Afonja” politics that 

threatens to become mainstream 

fare of professional 

“oselu” in Yorubaland, a 

brand of politics that is 

devoid of purpose beyond 

self-enrichment, personal 

power,office-seeking 

and prebendal access to 

state resources; and that 

impoverishes the people 

and compromises Yoruba 

collective interest and 

heritage. Chief Adebanjo 

has been a committed 

“Awoist” his entire political 

career and for him and 

his remaining colleagues 

in the Afenifere old guard- 

Professor BanjiAkintoye, 

Senator Femi Okurounmu, 

Chief OluFalae, Papa 

Reuben Fasoranti, Hon. 

Oladipo Olaitan, DrA. 

A Akingba and others; 

they face a (probably) last 

challenge-to prevent the 

final defeat of Awolowo’s 

political, development 

and socio-cultural legacy 

in the politics of Western 

Nigeria. 

As Baba Ayo Adebanjo 

celebrates this epoch of 

his 90th birthday anniversary, 

I wish him wisdom, 

strength and power for the 

challenges that lie nearby 

and pray that he may be 

with us for longer still! 

Mo Abudu, The Wedding Party and the new Nollywood 

buffs with a political inclination 

excited by various possibilities 

evinced in the fictional country 

of Wakanda as captured in the 

Black Panther movie. It is ironical 

because the hype around 

Black Panther tended to shift 

the conversation off from our 

own The Wedding Party series 

that lit up the Nigerian cinema 

two years in a row. 

Monisola Abudu and her 

crew at Ebony Life have understandably 

made a song 

and dance of the collaboration. 

So they should. The 

Ebony/Sony Pictures collabo 

represents an essential 

landmark in the continued 

evolution of our Nollywood. 

EbonyLife says Dahomey 

Warriors “will tell the empowering 

story of the all-female 

Warriors and show the ultimate 

strength of women 

coming together, fighting 

to protect and honour their 

people.” The storyline draws 

from events in the neighbouring 

West African country of 

Benin Republic. EbonyLife 

and Sony Pictures would 

also feature an adaptation 

of the hit game show, The 

Dating Game for audiences 

in Nigeria. 

The various successes with 

The Wedding Party, her listing 

among the Top 50 women 

in entertainment by the storied 

Variety magazine and 

her new collabos with Sony 

Pictures position Mo Abudu 

as a standard bearer for the 

new Nollywood. Abudu has 

brought to bear on Nollywood 

remarkable attributes and 

skills that fetched her successes 

in consulting, energy, and 

human capital management. 

Her entry into broadcasting 

via EbonyLife TV, production 

and entertainment has been 

hugely successful. She earned 

plaudits for her chat programme 

Moments with Mo 

and even higher successes 

with a foray into Nollywood. 

EbonyLife Films debuted 

with Fifty. It premiered at 

the London Film Festival 

and grossed top Naira in 

2015. Her partnership with 

the ELFIKE Film Collective 

delivered The Wedding Party 

in 2016 and the sequel The 

Wedding Party2 in 2017. Both 

films led the rankings. 

What is the new Nollywood, 

you ask? Nollywood is 

the Nigerian movie industry 

built mostly on video format 

rather than the traditional celluloid 

of Western and Indian 

film industries. Nollywood 

upturned the tradition of producing 

films on celluloid. The 

high cost of celluloid made 

film production expensive 

and thus limited access. Nollywood 

changed this by making 

movies in readily accessible 

formats –video- thus popularising 

it and making it affordable and 

available to the populace. 

The new Nollywood came 

to be with the return to the 

cinema. It has also meant big 

budget films. The motivations 

were the search for international 

acceptance and market 

and, locally, to combat piracy 

through control of the distribution 

process. The airing of 

about 10 Nigerian films at the 

Toronto Film Festival 2016 

confirmed global recognition 

of the return of Nollywood to 

standard universal format. 

The Wedding Party films 

explored marriage as interethnic 

and inter-racial communication 

and collaboration. 

They also underlined the criticisms 

and positives of Nollywood. 

The negatives included 

over-emphasis on glamour, a 

dramatisation of the problems 

of ethnicity without offering solutions 

and a particular light on 

the undersides of Nigeria. The 

Wedding Party focuses on insecurity, 

youth unemployment 

and robbery. Unfortunately, it 

does not provide any resolution 

of that challenge, even as it 

dominates a significant portion 

of the time. No one gives the 

young man a job, nor is there 

any indication of punishment 

for the crime of stealing and 

holding up people with a gun. 

Chief among the positives 

is the productive collaboration 

that is the ElFIKE Film Collective. 

They have worked well 

together, players from various 

segments of the business, to 

deliver quality. The Wedding 

Party furthers the development 

of Nollywood in high production 

values with excellent cinematography 

and good acting, 

competent storylines, excellent 

marketing and distribution and 

adoption of tried and tested 

global standards of exhibiting 

film first through cinemas before 

releasing in other formats 

such as VCD and platforms 

such as in-flight. 

As Mo Abudu takes on her 

new challenge with Sony Pictures, 

she must lead Nollywood 

to tackle the ideological 

questions about the content of 

our films. Should Nollywood 

be a mere mirror or should it 

lead and contribute to society 

through narratives that envision 

things differently? What 

is the ideological role of film in 

Nigeria? Should there be one? 

Should the government not 

play a more involved role in the 

narratives that we share about 

our cities, about our people 

and our cultures? Should the 

various ministries of Information 

and those of Culture across 

the 36 states not pay more 

significant interest in content 

creation and collaborate with 

producers and writers rather 

than the obsession with reaping 

in levies and taxes. 

Best wishes on the new 

journeys to Mo Abudu as she 

pushes new frontiers for Nollywood. 

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 11 Apr 2018

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