BusinessDay 13 April 2018
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NEWS YOU CAN TRUST I **FRIDAY <strong>13</strong> APRIL <strong>2018</strong> I VOL. 15, NO 32 I N300 @ g<br />
Oando shares appreciate by 10%<br />
as technical suspension lifted<br />
... 178m shares on bid<br />
BALA AUGIE<br />
suspension on the trading of the<br />
company’s shares was lifted for<br />
a second time by the Nigerian<br />
Stock Exchange (NSE).<br />
The shares of the company<br />
Inside<br />
Continues on page 33<br />
Wale Tinubu, CEO, Oando<br />
To the relief of Oando<br />
shareholders, investors<br />
and the general<br />
public, the technical<br />
Mobile ecosystem to be<br />
worth over $50bn to<br />
W/African economy by 2022<br />
... 50% of impact<br />
attributed to Nigeria<br />
KEMI AJUMOBI<br />
Recently, the GSMA released<br />
The Mobile Economy<br />
West Africa <strong>2018</strong> re-<br />
Continues on page 35<br />
Senate suspends pro-Buhari<br />
senator for 90 legislative days<br />
OWEDE AGBAJILEKE, Abuja<br />
The Senate on Thursday<br />
suspended the senator<br />
representing Delta Central<br />
Continues on page 35<br />
Eagles brand soars on back<br />
of investor confidence<br />
The scarcity of Nigerian<br />
passports at<br />
immigration offices<br />
nationwide has worsened<br />
with resultant<br />
hardship for citizens intending<br />
to procure the document for<br />
overseas travel.<br />
A source close to the passport<br />
office who craved anonymity<br />
told <strong>BusinessDay</strong> that Nigerian<br />
L-R: Sina Alimi, deputy CEO, PanAfrican Capital Holdings; Obinna Anyanwu, CWEIC country head for Nigeria;<br />
Abdul Quadirr, CWEIC head of business development; Chris Oshiafi, CEO, PanAfrican Capital Holdings;<br />
Richard Burge, CWEIC chief executive, and Eric Okoruwa, managing director, PAC Capital, as PAC Holdings<br />
enters strategic partnership with CWEIC.<br />
Passport scarcity worsens as<br />
Immigration owes foreign printers<br />
Spends N24bn per annum on printing booklets abroad<br />
IFEOMA OKEKE<br />
BD INVESTIGATIVE SERIES<br />
international passports are currently<br />
scarce because the immigration<br />
service owes its foreign<br />
technical partners huge debts<br />
running into billions of naira.<br />
“We are at the mercy of these<br />
technical partners who have<br />
refused to produce and print out<br />
the passports booklets because<br />
the government owes them. They<br />
have insisted that until the government<br />
pays its debt, they will not<br />
produce passports for Nigeria.”<br />
<strong>BusinessDay</strong> checks show<br />
that the passport booklets are<br />
presently being produced by Iris<br />
Smart Technology Nigeria (ISTL)<br />
through its parent company, Iris<br />
Corporation, based in Malaysia.<br />
A company in Netherlands is<br />
responsible for the bio-metrics<br />
and security details inserted<br />
into the passports, while a South<br />
African firm provides the ink<br />
used for the printing done on<br />
the passports.<br />
The source explained that last<br />
Continues on page 4<br />
FOLUSO GBADAMOSI<br />
The technology<br />
advocate
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
2 BUSINESS DAY
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
BUSINESS DAY<br />
3
4 BUSINESS DAY<br />
C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
NEWS<br />
Nigeria Eurobond sales face<br />
higher refinancing risks – Fitch<br />
MICHEAL ANI<br />
Nigeria’s growing use<br />
of the international<br />
capital markets may<br />
increase refinancing<br />
risk as the amount<br />
of international debt coming due<br />
rises, US based rating agency,<br />
Fitch said .<br />
“Borrowing in foreign currency<br />
in international markets, exposes<br />
sovereigns to Foreign Exchange<br />
(FX) refinancing risk and a potentially<br />
higher debt service/GDP burden<br />
in the event of local currency<br />
depreciation,” it said.<br />
“Although it can appear cheaper<br />
if domestic interest rates are<br />
high, as in Nigeria, which used the<br />
proceeds of its February issue to<br />
refinance more expensive nairadenominated<br />
debt, it generally<br />
involves a net increase in risk,” The<br />
global rating agency added.<br />
Nigeria’s external debt as at<br />
December 31st 2017, touched<br />
$18.9 billion, according to data<br />
provided by its Debt Management<br />
Office (DMO).<br />
The federal Government<br />
through the ministry of finance<br />
in February <strong>2018</strong>, successfully<br />
sold $2.5 billion of Eurobonds to<br />
compliment the $3 billion it raised<br />
in November last year, as part of<br />
its on-going debt restructuring<br />
strategy aimed at increasing external<br />
debts from 23 percent to 60<br />
percent, and cutting down on domestic<br />
debts from 77 to 40 percent.<br />
Patience Oniha, Director General<br />
of Debt Management Office<br />
(DMO), said that “for government<br />
to plan execute its plan enunciated<br />
by the Economic and Recovery<br />
Growth Plan (ERGP), Medium<br />
Term Economic Framework<br />
(MTEF) and other associated fiscal<br />
strategies, it has to spend and borrowing<br />
is a mechanism to do that”.<br />
Also, the DMO said “borrowing<br />
has stimulated the economy<br />
and has helped lift it out of the<br />
recession”.<br />
More recently, sub Saharan<br />
African countries have shown<br />
increased appetite to tap from the<br />
Passport scarcity worsens as Immigration...<br />
Minister of Interior, had directed<br />
for the domestication of the production<br />
of the passport booklets.<br />
Dambazau said he had set<br />
up a committee, headed by the<br />
Comptroller-General of the Nigeria<br />
Immigration Service, to look<br />
into the local production of the<br />
document and resolve the challenge<br />
posed by its scarcity.<br />
He said the committee was<br />
also charged with the responsibility<br />
of exploring ways of starting<br />
the local production of the<br />
passport booklets, in view of the<br />
numerous advantages.<br />
A visit to passport offices in<br />
the Ikoyi and Festac suburbs of<br />
Lagos showed applicants on a<br />
long queue for passports.<br />
One of the applicants who<br />
identified herself as Mary said<br />
she had been coming to Ikoyi for<br />
the past two months and the im-<br />
Continued from page 1<br />
year, the government had promised<br />
to explore local production<br />
as part of plans to save cost and<br />
ease the lingering scarcity of<br />
the document but has failed to<br />
execute same.<br />
He added that with the scarcity,<br />
government may not be able<br />
to realise its set target for revenue<br />
generation as it did last year.<br />
For two months now, Nigerian<br />
Immigration Service (NIS) has<br />
been unable to issue passports<br />
nationwide.<br />
<strong>BusinessDay</strong> gathered that<br />
two days ago, a new batch of passports<br />
were provided at Ikoyi office<br />
but they likely will be exhausted<br />
by today.<br />
Recall that Sunday James,<br />
spokesperson for the Nigeria Immigration<br />
Service, last year said<br />
Abdulrahman Dambazau, the<br />
international Debt market finance.<br />
This also continued through<br />
in first quarter <strong>2018</strong>(1Q18), with<br />
issues from Kenya (USD2 billion),<br />
Cote d’Ivoire (EUR1.7 billion) and<br />
Nigeria (USD2.5 billion). Ghana’s<br />
parliament last month approved<br />
plans for a Eurobond issue.<br />
The International Monetary<br />
Fund recently warned that emerging<br />
economies face the mounting<br />
risk of a debt crisis, as their pace<br />
of borrowing in the international<br />
capital markets increases.<br />
Since 20<strong>13</strong>, the median ratio<br />
of public debt to gross domestic<br />
product in low-income countries<br />
has risen <strong>13</strong> percentage points to<br />
hit 47 per cent in 2017, according<br />
to new research by the IMF.<br />
The research found that 40 per<br />
cent of low-income developing<br />
countries face “significant debtrelated<br />
challenges”, up from 21 per<br />
cent just five years ago<br />
According the global agency,<br />
maturities of this debt might appear<br />
manageable in the near term,<br />
but public financial management<br />
(PFM) in the region is often weak,<br />
meaning that capacity to manage<br />
refinancing risk is an important<br />
factor in our SSA sovereign credit<br />
assessments.<br />
Tapping international capital<br />
markets can be an important<br />
financing option where liquidity<br />
in local funding markets is low.<br />
Long-dated international issuance<br />
can extend repayment schedules<br />
(Kenya and Cote d’Ivoire’s 1Q18<br />
deals both featured 30-year tranches).<br />
Market access that allows for<br />
opportunistic international debt<br />
issuance is therefore beneficial for<br />
SSA sovereigns.<br />
However, the rise in debt since<br />
2011, growing use of commercial<br />
funding, and in some cases currency<br />
depreciation have increased<br />
debt servicing costs in some countries.<br />
Seven of the 18 Fitch-rated<br />
SSA sovereigns had general government<br />
interest payments/revenues<br />
above 15 percent last year,<br />
the highest since at least 2000.<br />
Weak PFM could increase the<br />
challenge of transitioning from<br />
concessional to commercial fund-<br />
ing, and of managing the associated<br />
risks, such as exposure to<br />
tighter global monetary policy and<br />
the capacity to navigate interest<br />
rate and currency risks.<br />
It may also make Eurobond<br />
repayments and rollovers challenging,<br />
if market conditions were<br />
to deteriorate.<br />
World Bank data shows that<br />
Fitch-rated SSA sovereigns excluding<br />
South Africa will need to repay<br />
international public and publicly<br />
guaranteed bonds totalling USD6.5<br />
billion in 2019-2023, up from<br />
USD1.4 billion in 2014-<strong>2018</strong>.<br />
PFM in these regions have seen<br />
some improvement, and IMF programmes<br />
often include efforts to<br />
strengthen it. In Cote d’Ivoire, for<br />
example, improved PFM under the<br />
country’s 2016-2019 programmes<br />
has helped reinforce the sovereign’s<br />
financing flexibility.<br />
But PFM weaknesses in the region<br />
are still apparent, for example<br />
in the tendency to accumulate arrears<br />
and the use of state-owned<br />
enterprises for quasi-fiscal operations.<br />
In some cases, such as<br />
the Republic of Congo (CC) and<br />
Rene Awamberg, global head of client relations, Afrexim Bank (l), with Donald Duke, former governor, Cross River<br />
State, at the Afrexim Bank-Russian Export Centre’s road show to boost Africa’s aviation infrastructure, in Abuja. NAN<br />
migration officers kept saying the<br />
passports are currently scarce.<br />
“I was supposed to travel to<br />
England last week but I was unable<br />
to travel because I have not been<br />
issued my passport. It took me over<br />
two weeks to get captured and now<br />
it is taking me another one month<br />
and a week to get my passport.<br />
This is so frustrating and I wish the<br />
government can quickly look into<br />
this and help us,” Mary said.<br />
Another applicant who identified<br />
himself as Ifeanyi said his<br />
three children were supposed<br />
to go for vacation in the United<br />
States but couldn’t because their<br />
passports were not ready 5 weeks<br />
after applying.<br />
<strong>BusinessDay</strong> observed that<br />
touts are using the passport scarcity<br />
as an opportunity to exploit<br />
applicants by collecting as much<br />
as N20, 000 to N25, 000 from ignorant<br />
Nigerians who are desperate<br />
to get their passports.<br />
Mozambique (RD), PFM deficiencies<br />
have resulted in a lack of<br />
transparency in the public finances<br />
and contributed to recent defaults.<br />
SSA Eurobond maturities are<br />
spread out over the next decade,<br />
but weak PFM still means there are<br />
risks associated with them.<br />
Weak PFM also means that<br />
upward pressure on government<br />
debt will persist, as it limits the capacity<br />
to implement consolidation<br />
plans and to contain spending and<br />
mobilise domestic revenue sources<br />
more fully.<br />
“We expect median SSA general<br />
government debt to be broadly<br />
stable this year at 52.6 percent of<br />
GDP, following a rise of over 20pp<br />
in the preceding six years. This<br />
reflects improved commodity<br />
prices and fiscal consolidation in<br />
some countries, including those<br />
with IMF programmes. (The total<br />
agreed amount of the IMF’s<br />
outstanding arrangements with<br />
SSA countries rose nearly fivefold<br />
between end-2014 and end-2017,<br />
largely in response to the commodity<br />
price shock,” Fitch said.<br />
A source at the office also told<br />
Business that Nigerians who<br />
reside outside the country have<br />
had to reschedule their flights in<br />
order to secure their passports.<br />
While NIS still provides revenue<br />
for the government by collecting<br />
passport fees from people,<br />
they have failed to provide services<br />
to the people paying for it.<br />
<strong>BusinessDay</strong> calculates that<br />
Nigeria through the Nigeria Immigration<br />
Service (NIS) is paying<br />
over N24 billion to Malaysia,<br />
Netherlands and South African<br />
based firms for production of its<br />
international passports.<br />
For Lagos state, on a daily basis,<br />
Ikoyi which issues the highest<br />
amount of passport, gives out an<br />
average of 800passports but has<br />
over 1000 as demand while Festac<br />
and Ikeja issue 1000 passports<br />
daily with over 1,400 demanded.<br />
Abuja issues out an average of<br />
500passports daily, with over 800<br />
Base effect<br />
moderates<br />
inflation to<br />
<strong>13</strong>.34% in March<br />
… Analysts forecast single<br />
digit inflation rate in H2<br />
ENDURANCE OKAFOR<br />
Nigeria’s inflation eased<br />
to <strong>13</strong>.34 percent, yearon-year<br />
in March <strong>2018</strong>,<br />
amid base effect and declining<br />
petrol prices, which is the lowest<br />
inflation rate since March 2016.<br />
It is also the fourteenth consecutive<br />
disinflation since January<br />
2017, as compiled from the<br />
National Bureau of Statistics<br />
(NBS).<br />
The rate moderated by 0.99<br />
percentage points in March<br />
from 14.33 percent recorded in<br />
the previous month. Although,<br />
the <strong>13</strong>.34 percent inflation rate<br />
recorded in the period under<br />
review remains well above the<br />
6-9 percent preferred band.<br />
“The slowdown in inflation<br />
is as a result of a combination<br />
of factors; largely reflecting<br />
Continues on page 33<br />
demands. Kano, Asaba, Ogun<br />
and Ibadan which also ranks top<br />
in demand for passports issue<br />
out 500 passports altogether with<br />
almost 1000 demanded.<br />
Other states in Nigeria issue<br />
out an average of 2,000 passports<br />
daily with over 3,000 demanded.<br />
This implies that on a daily<br />
basis, passport offices across Nigeria<br />
issue out nothing less than<br />
4,800 passports daily.<br />
<strong>BusinessDay</strong>’s checks show<br />
that for five working days in a<br />
year, passport offices across Nigeria<br />
issue out about 1,248,000<br />
passports.<br />
Government spends about<br />
N19, 500 for the production of<br />
one passport.<br />
Last year, the NIS generated<br />
N38 billion as revenue locally.<br />
Sources close to NIS said the<br />
government can earn more than<br />
this amount if it produces passports<br />
locally.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong> C002D5556 BUSINESS DAY<br />
5
6 BUSINESS DAY C002D5556<br />
NEWS<br />
Airport-Oshodi road ready<br />
December - Lagos<br />
JOSHUA BASSEY<br />
Governor of Lagos<br />
State, Akinwunmi<br />
Ambode, says the<br />
ongoing reconstruction<br />
of the Murtala<br />
Muhammed International<br />
Airport road linking the Oshodi<br />
Transport Interchange<br />
will be completed by December<br />
<strong>2018</strong>.<br />
The state government<br />
flagged off the reconstruction<br />
of the airport road said<br />
to be accommodating at<br />
least 50,000 vehicles daily,<br />
in September 2017, with the<br />
aim to give motorists and<br />
foreign visitors a smooth<br />
drive.<br />
The design of the project<br />
include the reconstruction<br />
and expansion of the existing<br />
carriage to three-lane<br />
expressway on both directions,<br />
construction of twolane<br />
service road in both<br />
directions, construction of<br />
ramp bridge to provide a u-<br />
turn from Ajao Estate to the<br />
airport, construction of a<br />
flyover at NAHCO/toll gate<br />
and drainage works.<br />
Ambode, who was onthe-spot<br />
assessment of the<br />
project and other construction<br />
sites within the state<br />
metropolis, on Thursday,<br />
said everything was being<br />
done by his administration<br />
to ensure the projects were<br />
not delayed.<br />
According to Ambode,<br />
the strategic location of the<br />
airport road as entrance<br />
into the nation’s commercial<br />
city makes its quick<br />
completion a compelling<br />
obligation.<br />
“We have seen the progress<br />
of work being done on<br />
the airport road and I will<br />
like to appeal to all Lagos<br />
residents that they should<br />
bear with us. As much as<br />
possible, we will try to reduce<br />
the stress this might<br />
generate by completing it<br />
and the Oshodi Interchange<br />
by end of December. This,<br />
we hope to present to Lagos<br />
residents as Christmas<br />
gifts,” he said.<br />
The governor also assured<br />
of payment of compensations<br />
on properties<br />
with valid documents affected<br />
by the road expansion.<br />
<strong>BusinessDay</strong> gathered<br />
that compensation on properties<br />
demolished to allow<br />
right of way for the expansion<br />
of Airport-Oshodi road<br />
might cost the state government<br />
about N1 billion.<br />
At the flyover bridge in<br />
Agege, Pen Cinema, the<br />
governor commended the<br />
pace of work so far done<br />
and also promised its completion<br />
by December <strong>2018</strong>.<br />
Nigeria: 7 states have<br />
their budget public<br />
BUNMI BAILEY<br />
Out of 36 states<br />
in Nigeria, only<br />
seven states<br />
have their <strong>2018</strong><br />
budgets made<br />
public, according to BudgiT,<br />
a civil organisation that deals<br />
in budget transparency and<br />
accountability.<br />
According to the BudgiT’s<br />
report compiled by <strong>BusinessDay</strong>,<br />
27 states have<br />
signed their <strong>2018</strong> budget into<br />
law, but only seven - Delta,<br />
Edo, Kaduna, Kastina, Kogi,<br />
Kwara, and Yobe - have their<br />
budget documents published<br />
online or are in public<br />
domain.<br />
Analysts attribute this to<br />
the poor transparency and<br />
accountability level, and lack<br />
of appreciation of technology<br />
of the state governments.<br />
“When we talk about<br />
budget, it is not a private<br />
document of the government<br />
but a public one, and since it<br />
is signed into law it should be<br />
made available to the public,”<br />
Ayodele Shittu, a lecturer in<br />
the Department of Economics,<br />
University of Lagos, said.<br />
According to a transparency<br />
index by International<br />
Budget Partnership (IBP)<br />
2017, released January 30,<br />
<strong>2018</strong>, Nigeria’s budget transparency<br />
level is ranked<br />
poorly compared with other<br />
African countries. The country<br />
is ranked 80 out of 115<br />
countries, notching 17 points<br />
out of a possible 100.<br />
“It is part of what may be<br />
responsible for the underdevelopment<br />
that we are seeing<br />
in the country. Also, with<br />
the level of non-transparency<br />
it gives a lot of opportunity<br />
for misappropriation,” Ayodeji<br />
Ebo, managing director<br />
of Afrinvest, said. Ibrahim<br />
Tajudeen, head of research,<br />
Chapel Hill Denham, said<br />
there was no law making the<br />
budget to be transparent, so<br />
the little they could show off<br />
was what they were showing,<br />
saying, “They are not<br />
mandated by law to show<br />
the budget information to<br />
the public.”<br />
Although, it is yet to be<br />
passed into law, states like<br />
Lagos, Cross River and Akwa<br />
Ibom, not only have the<br />
highest budget expenditure<br />
among the 36 states, but<br />
also there budgets have also<br />
not been published online;<br />
Cross River budget has the<br />
highest with N1.3 trillion<br />
followed by Lagos State and<br />
Akwa Ibom with N1.04 trillion<br />
and N646.7 billion, respectively.<br />
Wema Bank reports<br />
20.07% growth in<br />
gross earning<br />
HOPE MOSES-ASHIKE<br />
Wema Bank plc<br />
has released<br />
its audited financial<br />
result<br />
for the year ended December<br />
31, 2017, confirming<br />
the growth of its gross earnings<br />
by 20.07 percent, from<br />
N54.36 billion in full year<br />
(FY) 2016 to N65.27 billion<br />
in FY2017.<br />
The growth was supported<br />
by the launch of ALAT<br />
– Nigeria’s first fully digital<br />
bank, enhancing Wema<br />
Bank’s already existing alternate<br />
platforms, which recorded<br />
a combined growth<br />
rate of 205.67 percent in<br />
transactions executed and<br />
with an estimated 30,000<br />
accounts opened monthly.<br />
Commenting on the<br />
results, Segun Oloketuyi,<br />
managing director/CEO of<br />
the bank, provided further<br />
insights into the performance<br />
of the bank during<br />
the period.<br />
“Despite the slow start<br />
to the year, 2017 recorded<br />
significant progress, highlighted<br />
by the introduction<br />
of the Investor & Exporters<br />
(I&E) window and recovery<br />
in oil prices,” Oloketuyi<br />
noted.<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
Investment One<br />
launches virtual<br />
trading platform<br />
A<br />
leading<br />
financial<br />
services group in<br />
Nigeria, Investment<br />
One Financial<br />
Services, has launched<br />
its All Stars League initiative,<br />
in an effort to heighten<br />
interest in stock trading in<br />
Nigeria.<br />
The All Stars League<br />
according to a statement<br />
made available by Investment<br />
One Services, is a<br />
gaming environment where<br />
individuals can interact<br />
with the Nigerian Stock Exchange<br />
(NSE) in near real<br />
time. It provides a platform<br />
for amateur traders to improve<br />
their skills and to<br />
compete for prizes, on a virtual<br />
investment simulator.<br />
During the League, each<br />
trader begins with N10,<br />
000,000 in virtual cash and<br />
has a trading limit of N2,<br />
000,000 per day. The top 3<br />
traders at the conclusion<br />
of the 3-month League will<br />
have their trading accounts<br />
funded with real money as a<br />
reward.<br />
The Investment One<br />
All Stars League begins on<br />
<strong>April</strong> 16 and ends on June<br />
30. Individuals can sign up<br />
at www.bit.ly/visgame.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
NEWS<br />
LPG, NHK, PMS, AGO prices<br />
decrease in March - NBS<br />
KELVIN UMWENI<br />
Average price of a<br />
5kg and 12.5kg<br />
Liquefied Petroleum<br />
Gas (LPG),<br />
popularly known<br />
as cooking gas, declined<br />
month-on-month by 3.03 percent<br />
and 1.84 percent, respectively,<br />
in March <strong>2018</strong>, a report<br />
released by the National Bureau<br />
of Statistics (NBS) reveals.<br />
The average price of refilling<br />
a 5kg cylinder was<br />
N2,090.6 in the month of<br />
March. This represented a<br />
month-on-month decrease<br />
of 3.30 percent decline compared<br />
with N2,155.97 recorded<br />
in February, and a 16.6<br />
percent year-on-year contraction<br />
relative to the average<br />
price of N2,493.6 recorded in<br />
March 2017.<br />
A geographical decomposition<br />
reveals that the<br />
South-West has the lowest<br />
average price (at N2,019.15)<br />
of refilling a 5kg cylinder<br />
capacity, while the North-<br />
East with an average price<br />
of N2,256.25 emerged as the<br />
region with the highest average<br />
price. Others are North-<br />
West (N2,025), South-East<br />
(N2,065.87), North-Central<br />
(2,085.48) and South-South<br />
(N2,099.76).<br />
States with the lowest average<br />
price of refilling a 5kg<br />
included Abuja (N1,760),<br />
Ebonyi (N1,870) and Ekiti<br />
(N1,895). Conversely, the<br />
North-East states of Bauchi<br />
(N2,364.3), Yobe (N2,500),<br />
and Borno (N2,500) recorded<br />
the highest prices for March.<br />
In the same vein, the average<br />
price for refilling a 12.5kg<br />
cylinder stood at N4,253.7<br />
in March <strong>2018</strong>, representing<br />
a month-on-month decline<br />
of 1.84 percent from<br />
the N4,333.3 average price<br />
recorded in preceding month<br />
and a year-on-year decrease<br />
from the N4,923.5 average<br />
price recorded in March <strong>2018</strong>.<br />
South-West geographical<br />
region had the lowest average<br />
price of refilling a 12.5kg<br />
cylinder of cooking gas (recording<br />
N3,973.3). This was<br />
closely followed by the North<br />
East with an average price of<br />
N4,038.9. Others in successive<br />
order includes North-<br />
West (N4,212.4), South-East<br />
(N4,373.3), North-Central<br />
(N4,400.2) and South-South<br />
(N4,526.6); which recorded<br />
the highest average price in<br />
this cylinder capacity category.<br />
State-wide assessment<br />
shows that Bauchi<br />
(N3,400), Lagos (N3,768)<br />
and Oyo (N3,834.4) had the<br />
lowest average price of refilling<br />
a 12.5kg cylinder while<br />
Akwa Ibom (N4,650), Cross<br />
River (N4,730) and Benue<br />
(N4,966.7) tops the state with<br />
the highest average price.<br />
In another report by the<br />
NBS, the average price of National<br />
Household Kerosene<br />
(NHK) for the month of March<br />
decreased to N269 per litre.<br />
This denotes a month-onmonth<br />
decline of <strong>13</strong>.7 per cent<br />
from N288.6 per litre recorded<br />
in February and a year-onyear<br />
decline relative to N311.6<br />
per litre recorded in the corresponding<br />
period of 2017.<br />
C002D5556<br />
BUSINESS DAY<br />
7<br />
FOU Customs to enforce FG’s ban on importation of foreign rice<br />
AMAKA ANAGOR-EWUZIE<br />
Nigeria Customs Service<br />
(NCS), Federal<br />
Operations Unit<br />
(FOU) Zone ‘A’, has<br />
vowed to continue to enforce<br />
the Federal Government’s rice<br />
policy that prohibits the importation<br />
of foreign parboiled rice.<br />
The policy, which was<br />
put in place to encourage local<br />
rice production, is aimed<br />
at making Nigeria self sufficient<br />
in rice production and<br />
creating more employment<br />
opportunities for the youths.<br />
Aside the ban on importation<br />
of rice from the land border,<br />
the Federal Government has<br />
technically ban import of rice<br />
through seaports as Customs<br />
vowed not to issue any Form<br />
‘M’ to rice importers.<br />
Also, the unit reported the<br />
interception of several contraband<br />
goods with duty paid<br />
value (DPV) of over N1.5 billion<br />
including an additional<br />
SESSPN seeks to catalyse dialogue for new governance, economic order<br />
South-East South-<br />
South Professionals<br />
of Nigeria (SESSPN)<br />
is a non-governmental<br />
platform involving socially-conscious<br />
businessmen<br />
and professionals who<br />
are keen on deploying their<br />
values, voices, perspectives,<br />
life experiences, skills and<br />
expertise to promote sustainable<br />
development and<br />
growth in the region with<br />
or without the much-clamoured<br />
restructuring.<br />
With this overlap between<br />
the SESSPN and<br />
the beneficial influence of<br />
the private sector, it is envisaged<br />
that a new impetus<br />
will be granted to the<br />
causes, which animate our<br />
members and fuel the fire<br />
N166.2 billion generated from<br />
duty payment and demand<br />
notices on general goods from<br />
seaports, airports and land<br />
borders, which had wrong<br />
classification, transfer of value<br />
and underpayment of duty.<br />
The seized items include Indian<br />
hemp, 64 exotic vehicles;<br />
6,003 bags of foreign parboiled<br />
rice equivalent to 10 trailers;<br />
963 cartons of frozen poultry<br />
products; 431 jerrycans of vegetable<br />
oil; 163 bales of used<br />
clothing; 569 pieces of used<br />
tyres; 69 bags of sugar and four<br />
containers of general goods.<br />
Speaking in Lagos on<br />
Wednesday, Mohammed<br />
Uba, area controller of the<br />
command, told newsmen<br />
that among the seizures was<br />
the interception of 570 parcels<br />
and 98 sacks of Indian hemp<br />
weighing 1,550kg along Olorunda<br />
axis of Ogun State. Intelligence<br />
gathering facilitated<br />
the seizure, which Uba rated<br />
as the highest seizure of hard<br />
drug in the history of the command.<br />
Uba disclosed that the<br />
command together with the<br />
help of Lagos Roving Team,<br />
also evacuated 2,672 bags of<br />
rice from a storage house in<br />
Ilogbo, Abeokuta.<br />
On the 64 impounded vehicles,<br />
Uba said <strong>13</strong> of the exotic<br />
vehicles including <strong>2018</strong> model<br />
of one Toyota Land Cruiser;<br />
one Escalades Cadillac; one<br />
Range Rover; three Toyota<br />
Camry; one Toyota Rav4; one<br />
Toyota Highlander; one Honda<br />
CRV; one Honda Accord;<br />
one BMW Salon; one Toyota<br />
Sienna and one Hyundai, were<br />
also intercepted while on patrol<br />
at various locations.<br />
He however disclosed that<br />
the vehicles were still under<br />
detention pending the grace<br />
period given to the importers<br />
to bring the relevant Customs<br />
document. “Additionally, four<br />
containers including three by<br />
40 foot containers.<br />
of our devotion to the enthronement<br />
of a new reality<br />
in the daily economic and<br />
social lives of our people.<br />
Subsequent to our recent<br />
election of a new EXCO<br />
for the SESSPN, members<br />
are optimistic about actualising<br />
the developmental<br />
agenda of the Association.<br />
This, however, will require<br />
the co-opting of the political<br />
leadership of the states<br />
in the region, with the ultimate<br />
goal of promoting the<br />
interests of the long-suffering<br />
people of the region,<br />
through the harnessing<br />
and marshalling of the civic<br />
and economic strength<br />
that ordinary people wield<br />
in their numbers.<br />
Our goal is an enlightened<br />
people, with eyes<br />
newly-open to the urgent<br />
need for change of the present<br />
order, and access to the<br />
information that empowers<br />
them to make the educated<br />
choices required to effect<br />
the much needed seismic<br />
shifts in our body-politic.<br />
SESSPN going forward<br />
will begin a quarterly business<br />
and professional conversation<br />
across the public<br />
and private sectors. The first<br />
of which is billed for the<br />
Prime Chinese Restaurant at<br />
Bishop Abayode Cole, Victoria<br />
Island - Lagos on Sunday,<br />
<strong>April</strong> 15, at 3pm with Sokonte<br />
Davies, executive director,<br />
Nigerian Ports Authority, as<br />
keynote speaker and guest<br />
of honour.
8 BUSINESS DAY C002D5556<br />
NEWS<br />
Need to reduce investment risk in Africa<br />
dominates 7th Gennext business conference<br />
DIPO OLADEHINDE<br />
In a friendly yet exciting<br />
discussion, leading<br />
business professionals,<br />
presidents of industries,<br />
directors, CEOs, and lawyers<br />
from across the globe, especially<br />
Asia, discussed the<br />
need to reduce investment<br />
risk in Africa as well as tap<br />
into the huge opportunities<br />
in its diversity at the 7th Gennext<br />
Business Conference on<br />
the “Ease of Doing Business<br />
in Africa” at Mumbai, India.<br />
At the conference, there w<br />
ere as many as 25 concurrent<br />
panels and plenaries over the<br />
course of the two days led by<br />
national and international<br />
speakers of renowned influential<br />
status.<br />
The African session panel<br />
at this year’s event was moderated<br />
by Osaro Eghobamien,<br />
a managing Partner at Nigeria<br />
based commercial law firm<br />
Perchstone & Graeys; other<br />
members of the panel session<br />
includes, R. Kannan of Hinduja<br />
Group; Emeka Offor, Director<br />
of Strategic Communication<br />
at Nigerian Investment<br />
Promotion Commission and<br />
Bukola Oyinlola-Anuwe the<br />
Head of Chambers at Perchstone<br />
& Graeys Abuja.<br />
The panel discussed not<br />
only the need to adopt strategies<br />
that would embrace<br />
the diversity of the 54 African<br />
Moody’s to review Nigeria economy at 4th annual summit<br />
ENDURANCE OKAFOR<br />
The credit rating<br />
agency, Moody’s<br />
will examine Nigeria’s<br />
economic<br />
performance in the forth<br />
coming Annual West Africa<br />
Summit tagged “Moody’s<br />
Emerging Markets Series.<br />
The US-based agency<br />
will be having its fourth<br />
Annual West Africa Summit<br />
in Lagos on May 9,<br />
<strong>2018</strong>.<br />
BudgIT demands transparency for N1.4trn fuel subsidy<br />
HOPE MOSES-ASHIKE<br />
BudgIT has expressed<br />
dismay at the lack of<br />
accountability and<br />
transparency by the<br />
Federal Government and the<br />
Nigerian National Petroleum<br />
Corporation (NNPC) on the<br />
amount spent on subsidy in<br />
2016, 2017, and the first quarter<br />
of <strong>2018</strong>.<br />
In a statement signed by<br />
Abiola Afolabi, communications<br />
lead, it is in the interest<br />
of the public that detailed<br />
information of the amount<br />
spent on fuel subsidies such<br />
as the beneficiaries, the pricing<br />
template for arriving at<br />
the subsidy rates and the volume<br />
of petroleum products<br />
utilised should be made open<br />
and that these transactions<br />
are carried out transparently.<br />
Minister of state for petroleum<br />
resources, Ibe<br />
Kachikwu, recently disclosed<br />
a total of N1.4 trillion was<br />
being spent annually by the<br />
countries but also on the different<br />
risk in each of these<br />
countries and how to further<br />
reduce risk as well so as to tap<br />
into the huge opportunities in<br />
Africa where return on investment<br />
is hovering at 9 percent<br />
while other emerging markets<br />
at 8.5 percent and the rest of<br />
the world 7 percent.<br />
Osaro Eghobamien, a<br />
managing Partner at Perchstone<br />
& Graeys law firm<br />
stated the failure of Nigeria to<br />
participate in the signing of<br />
the Continental Free Trade<br />
Agreement which obviously<br />
created an awkward position<br />
maintaining that Nigeria<br />
simply suspended the signing<br />
for more informed consultation<br />
domestically.<br />
Eghobamien said, “As a<br />
Lawyer, and if I had the opportunity<br />
I would have advised<br />
the President to sign the<br />
treaty whilst there are wider<br />
consultation before such treaty<br />
is domesticated. It is important<br />
that a certain level of<br />
certainty be introduced into<br />
the African market.”<br />
“Nigeria having participated<br />
in negotiations for a<br />
number of years ought to<br />
have reinforced that participation<br />
by at least signing<br />
without any further commitments<br />
domestically, treaties<br />
are not enforceable until<br />
domesticated,” Eghobamien<br />
added.<br />
Analyst from Moody’s<br />
will be in attendance to<br />
share insight into the<br />
credit implications of Nigeria’s<br />
gradual economic<br />
recovery and the rebound<br />
in oil prices. Africa’s largest<br />
economy exited its<br />
five-quarter recession in<br />
Q2 2017 following the increase<br />
in global oil prices<br />
and level production.<br />
Oil prices have however<br />
enjoyed a renaissance in<br />
2017, after output curbs by<br />
NNPC as the subsidy for Premium<br />
Motor Spirit (PMS).<br />
This amount is significantly<br />
more than what Nigeria intends<br />
to spend on Education<br />
in the proposed <strong>2018</strong> budget<br />
(N605.8bn).<br />
There is a growing deficit<br />
in trust due to lack of due<br />
process in the NNPC; in<br />
March <strong>2018</strong>, the corporation<br />
announced it spends N774<br />
million daily, roughly N23.99<br />
billion monthly as subsidy<br />
on 50 million litres of PMS<br />
consumed across the country.<br />
The public knows very<br />
little information on the beneficiaries<br />
of the subsidy payments<br />
and control process<br />
instituted to prevent theft of<br />
these funds.<br />
BudgIT notes that the subsidy<br />
payments have been a<br />
contentious issue for the last<br />
30 years. Analysts have called<br />
for its cancellation due to the<br />
lack of accountability and<br />
transparency in the administration<br />
of these funds.<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
R-L: R. Kannan of Hinduja Group, a multibillion company; Emeka Offor of the Nigerian Investment Promotion Commission;<br />
Bukola Oyinlola -Anuwe, head of Chambers (Abuja office), Perchstone & Graeys, and Osaro Eghobamien, managing partner<br />
at Perchstone & Graeys.<br />
Rural people gain as NCF partners UNOPS, GEF-SGP on communities’ forest<br />
CHUKA UROKO<br />
The Nigerian Conservation<br />
Foundation<br />
(NCF), together with<br />
the United Nations<br />
Office for Project Services<br />
(UNOPS) and Global Environment<br />
Facility, Small Grant<br />
Programme (GEF- SGP), has<br />
boosted sustainable livelihoods<br />
of rural people by helping<br />
their communities’ forest<br />
achieve reducing emissions<br />
from deforestation and forest<br />
degradation (REDD+) goals.<br />
By this action, NCF and<br />
its supporters are re-defining<br />
forest management, conser-<br />
members of the Organisation<br />
of Petroleum Exporting<br />
Countries (OPEC) and<br />
Russia rid the market of<br />
some 1.5 million barrels<br />
daily.<br />
Global benchmark,<br />
Brent crude has gained<br />
some 155 percent since<br />
hitting a decade-low of<br />
$28 per barrel in January<br />
2016, trading at $71.92 per<br />
barrel as of Wednesday,<br />
<strong>April</strong> 11 <strong>2018</strong>, according to<br />
Bloomberg data.<br />
Also, there are arguments<br />
that the subsidy regime constituted<br />
double taxation on<br />
the populace who pay the<br />
actual market price for PMS<br />
due to lack of adequate monitoring<br />
by the Department of<br />
Petroleum Resources (DPR).<br />
According to our Lead<br />
Partner, Oluseun Onigbinde,<br />
“Evidence shows that amount<br />
spent on subsidising PMS is<br />
always riddled with corruption.<br />
We noted this is 2011<br />
prior to the elections and we<br />
are worried this opacity is<br />
preceding the 2019 elections<br />
again. We are worried at the<br />
use of public resources without<br />
legislative appropriation<br />
or requisite transparency ”<br />
BudgIT understands that<br />
NNPC in recent times has<br />
initiated a couple of actions<br />
in trying to meet up with the<br />
global of standards of transparency<br />
and accountability including<br />
actions like publishing<br />
its monthly report on its financial<br />
and operational activities.<br />
vation of landscape and rural<br />
livelihoods in selected forestedge<br />
communities including<br />
Ebok, Kabakken and Ebranta<br />
in Boje, Boki Local Government<br />
Area of Cross River State.<br />
The foundation in a statement<br />
explained that community<br />
forest contributed to<br />
the sustainable livelihoods of<br />
millions of rural people living<br />
in developing nations, adding<br />
that community involvement<br />
had the potential to improve<br />
effectiveness, efficiency and<br />
provide more co-benefits<br />
from REDD+ project.<br />
In 2017, NCF, with the support<br />
of GEF-SGP set up the<br />
community-based REDD+<br />
programme (CBR+) to promote<br />
activities that boost poverty<br />
eradication, promotion of<br />
improved crop varieties and<br />
yields, gender empowerment,<br />
biodiversity conservation and<br />
climate change mitigation<br />
and adaptation.<br />
Through this funding,<br />
Ebok, Kabakken and Ebranta<br />
communities cultivated two<br />
acres of land respectively<br />
with improved cassava stem<br />
cuttings, set-up cassava processing<br />
mills, cultivation and<br />
domestication of Afang (Gnetum<br />
africanum) by community<br />
members and harvesting<br />
of non-timber forest products<br />
(NTFPs) such as bush mango<br />
(Irvingia gabonensis) as part<br />
of efforts to reduce forest loss<br />
through improved agricultural<br />
practices.<br />
Proceeds of the harvest<br />
were shared among women<br />
and youth in the communities<br />
to supplement their income.<br />
In addition to the cassava,<br />
vegetable and NTFPs<br />
cultivation, the three communities<br />
commenced the<br />
cultivation of cocoyam on two<br />
acres each using improved<br />
farming methods and multiplication<br />
of planting materials<br />
(mini-set technology).
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
BUSINESS DAY<br />
9
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
10 BUSINESS DAY<br />
C002D5556<br />
COMMENT<br />
comment is free<br />
Send 800word comments to comment@businessdayonline.com<br />
Women entrepreneurs in an emerging economy running a bankable business (I)<br />
OYINKAN ADEWALE<br />
Mrs. Adewale is Executive Director,<br />
Chief Financial Officer, Union<br />
Bank.<br />
Assessing the viability of your<br />
proposition<br />
While one cannot<br />
undermine the importance<br />
of passion<br />
and determination<br />
on the journey to<br />
success, it is important to assess the<br />
viability of the product or service the<br />
business is built around.<br />
To assess viability, a feasibility<br />
study should be conducted. A<br />
feasibility study is an in-depth examination<br />
of a project’s potential for<br />
success. The goal of the feasibility<br />
study is to determine whether the<br />
project is feasible, taking into consideration<br />
the company’s resources,<br />
the projected cash flow and sustainability<br />
in the long term. A feasibility<br />
study is particularly useful for a<br />
“Greenfield” project – a new project.<br />
However, if the business already exists,<br />
there might be no need for this.<br />
A feasibility study is the foundation<br />
of a business plan as it reviews opportunities<br />
and threats in key areas<br />
including market, organisational<br />
structure and financial projections.<br />
Following a positive result from<br />
the feasibility study, a Business Plan<br />
is required. This plan provides the<br />
communication link between interested<br />
investors and the owner/<br />
promoter of the business. It is a<br />
summary of the businesses direction<br />
and how exactly it intends to<br />
get there. A business plan is a tool<br />
used by business owners to set<br />
To make a business case<br />
attractive, the business<br />
plan should include<br />
details such as the scalability<br />
of the project;<br />
profitability, liquidity;<br />
technology and quality<br />
of management<br />
goals and objectives for the company’s<br />
performance and to communicate<br />
clearly with staff, directors, lenders<br />
and potential investors.<br />
As women entrepreneurs, what<br />
can we do to make our businesses<br />
bankable?<br />
A bankable project/proposal is one<br />
that lenders/investors are willing to<br />
finance. To create a bankable project,<br />
you need to run the numbers; Are<br />
future cash flows – (the net value of<br />
what you receive vs your expenses),<br />
sufficient to repay the loan on time?<br />
When will you break even? Is the<br />
business profitable? You need to<br />
have security; Security should be<br />
adequate/liquid collateral and you<br />
need to stay on the right side of the<br />
law; complying with industry regulations<br />
is key to avoiding fines and a<br />
possible business shutdown.<br />
In addition, it is important to note<br />
that you should separate your company’s<br />
financials from your personal<br />
finances. Personal lifestyles should<br />
not be funded using the capital/<br />
income of the company.<br />
To make a business case attractive,<br />
the business plan should include<br />
details such as the scalability<br />
of the project; profitability, liquidity;<br />
technology and quality of management.<br />
Other important aspects of the<br />
business plan are a clear description<br />
of the market and the value added<br />
proposition which clearly articulates<br />
the uniqueness of the project<br />
or service.<br />
There are several examples of<br />
Nigerian women who have successfully<br />
balanced passion and viability.<br />
These include Banke Meshida-<br />
Lawal, founder of BMPro and Tara<br />
Fela-Durotoye, the founder of House<br />
of Tara who have created a niche for<br />
their brands in the Nigerian fashion<br />
industry. Others are Yewande Zaccheaus<br />
and Funke Bucknor-Obruthe<br />
who also took advantage of the<br />
Lagos party scene to create successful<br />
event management businesses.<br />
These ladies have shown that if you<br />
can identify gaps in the market and<br />
create products to meet the needs of<br />
the customers, you can successfully<br />
turn your passion into a full-fledged<br />
business.<br />
Send reactions to:<br />
comment@businessdayonline.<br />
Expected benefits of debt restructuring, a clincher?<br />
GLENN UBOHMHE<br />
Glenn lives in Lagos<br />
The Federal government,<br />
through the Debt Management<br />
Office (DMO),<br />
recently signalled its intention<br />
and indeed commenced<br />
the restructuring of its total debt<br />
portfolio with a view to securing<br />
an “optimal” mix of local and foreign<br />
debt components. The scope<br />
of the exercise involves refinancing<br />
part of the existing local debt<br />
with proceeds of new Eurobond<br />
issue as well as preference for<br />
foreign currency loans in financing<br />
budget deficit up to a defined<br />
“optimal” threshold of about<br />
60/40 per cent share respectively<br />
from 73.36/26.64 percent as at<br />
December 2017.<br />
The economic rationale for a<br />
sizeable mix of foreign debt component<br />
in the total debt stock is<br />
quite tantalizing, not difficult to<br />
measure and seem to make a great<br />
deal of sense. One of the overarching<br />
objectives for embarking on<br />
debt restructuring, as outlined by<br />
the DMO, is to reduce the huge<br />
interest burden on debt servicing<br />
occasioned by high interest rates<br />
in the domestic market. An extraction<br />
debt service cost can easily<br />
be made from the <strong>2018</strong> budget<br />
in order to put the argument in<br />
perspective - N1.76 trillion was<br />
earmarked as interest payment on<br />
domestic public debt in addition<br />
to interest on external public debt<br />
of N254 billion. These are mind<br />
boggling sums for debt servicing<br />
alone. Other key extenuating<br />
factors for this policy direction<br />
centre on the need to taper the<br />
size of government participation<br />
in the domestic debt market for<br />
enhanced accessibility by the<br />
private sector, moderate heightened<br />
pressure on interest rates<br />
which government borrowing<br />
usually precipitates and also<br />
boost foreign reserves through<br />
capital account component.<br />
These are very compelling arguments,<br />
indeed.<br />
However, there are more<br />
forceful countervailing arguments<br />
why the decision to ramp<br />
up our foreign debt may be<br />
counter-productive as there are<br />
plausible reasons why the eventual<br />
policy outcome may veer<br />
off markedly from expectations.<br />
To start with, the assertion that<br />
a switch from local to foreign<br />
debt will reflect in reduced cost<br />
of debt servicing is somewhat<br />
tenuous. That assertion would<br />
be correct if the naira equivalent<br />
of total debt stock is not significantly<br />
higher, or even less, postrestructuring.<br />
True, government<br />
will appropriate the benefit of interest<br />
rate differentials between<br />
domestic and international debt<br />
markets debt on the substituted<br />
portion of local debt but as long<br />
as the total debt stock trends<br />
upwards, budget allocation for<br />
interest servicing may not reduce.<br />
Therefore, what is required<br />
to sustainably manage interest<br />
and overall debt burden is a<br />
more frontal strategy of reverence<br />
for fiscal discipline - 26%<br />
allocation for debt servicing as<br />
projected in the <strong>2018</strong> budget<br />
is inimical to growth (please<br />
reserve your comment on debt<br />
to GDP ratio). It is against this<br />
backdrop that the admonition<br />
by Abraham Lincoln on March<br />
4, 1843 to the people of Illinois<br />
fittingly finds expression - “the<br />
system of loans is but temporary in<br />
its nature and must soon explode.<br />
It is not only ruinous while it lasts,<br />
but one that must soon fail and<br />
leave us destitute. As an individual<br />
who undertakes to live by borrowing<br />
soon found his original means<br />
devoured by interest and next, no<br />
one left to borrow from, so must it<br />
be with government”.<br />
A perceptive appreciation of<br />
Lincoln’s statement should nudge<br />
us towards some sort of enlightened<br />
introspection. Rather than a<br />
blanket rebuttal of the crucial role<br />
that debt plays in financing critical<br />
infrastructure, Lincoln’s statement<br />
is more pointedly a rebuke of<br />
unbridled accumulation of debt.<br />
Debt-to-asset transformation is an<br />
ideal but sometimes such transformation<br />
is illusory especially in a<br />
jurisdiction where public accountability<br />
is in short supply and where<br />
consumerism takes precedence<br />
over labour-for-posterity.<br />
Again from another and crucially<br />
important perspective is<br />
the potential risk factor of excessive<br />
foreign currency exposure.<br />
Significant foreign currency loan<br />
exposes the economy to external<br />
shocks and creates vulnerabilities<br />
that could upend macroeconomic<br />
stability. Low interest rate has<br />
often underpinned excessive exposure<br />
to foreign currency borrowings<br />
(whether by the private<br />
or public sector) and constitutes<br />
a key trigger to most financial<br />
and macroeconomic crises – the<br />
Emerging Market Economic (EME)<br />
of 1997 and the more recent Greek<br />
debt crises are classic reference<br />
points. Therefore, the bias for<br />
foreign currency loan (and debt<br />
in general in this instance) may<br />
not be an optimal one, if there is<br />
no sustainable strategy around it<br />
and developmental outcome is by<br />
every stretch doubtful.<br />
Understandably, the size of<br />
government borrowing from the<br />
domestic debt market could potentially<br />
influence the direction<br />
of interest rates but it is by no<br />
means the only factor. The level<br />
of money supply in the economy,<br />
inflation, exchange rate, overall<br />
external stability and other macroeconomic<br />
factors feature prominently<br />
in determining interest<br />
rates trajectory. Substitution of<br />
local debt with foreign debt will<br />
not reduce money supply. In fact,<br />
foreign currency borrowing exerts<br />
more expansionary impact on the<br />
monetary base in this particular<br />
instance.<br />
Given this scenario, what will<br />
therefore be the likely policy response<br />
by the monetary authority<br />
to excess system liquidity induced<br />
by fiscal expansion as is currently<br />
the case? Other variables to bear<br />
in mind include economic imperatives<br />
and political expediency<br />
of maintaining stable exchange<br />
rate in or close to an election<br />
year, accentuation of demand for<br />
the greenback to oil the political<br />
machines, heightened political<br />
risk perception by investors as<br />
we approach the forthcoming<br />
elections, the possible reversals of<br />
foreign portfolio investments and<br />
ultimately the potential adverse<br />
impact on foreign reserves. It will<br />
be interesting to see the reaction<br />
of the monetary and macroprudential<br />
authority – the CBN.<br />
In my view, the monetary authority<br />
is most likely to maintain<br />
its liquidity sterilisation policy<br />
using both conventional and<br />
non-conventional tools based on<br />
aforementioned reasons and also<br />
sustain relatively attractive premium<br />
on yields to retain foreign<br />
investments and mop up excess<br />
system liquidity.<br />
Notably, the pervasive influence<br />
of international oil price<br />
will also weigh considerably in<br />
determining the direction of<br />
interest rates. This brings into<br />
sharp focus the immediate threat<br />
to crude oil price in the ensuing<br />
geo-economic tariff war between<br />
US and China. While the impact<br />
of the impending trade war (if<br />
elevated beyond rhetoric) on<br />
Nigeria’s non-oil trade balance<br />
is yet unclear, a depressed global<br />
trade arising from tariff war could<br />
have far reaching consequences<br />
on global output and by implication<br />
global oil demand and<br />
Nigeria’s external balance. In that<br />
event, policy intervention will<br />
be required to increase capital<br />
account buffer for improved reserves<br />
with recourse to attractive<br />
yield on domestic market instruments<br />
to spur foreign inflows in<br />
order to achieve external balance<br />
objective. In the final analysis,<br />
CBN’s response with respect to<br />
rates will largely depend on prioritisation<br />
of policy choices but<br />
my bet is that rates are not likely<br />
to trend down below the current<br />
corridor, in the short to medium<br />
term. Therefore, debt restructuring<br />
may not have the desired<br />
impact on domestic interest rate<br />
as envisaged.<br />
As matter of agreeable necessity,<br />
finding that optimal debt mix<br />
may become secondary if fiscal<br />
prudence takes centre stage in<br />
resource management. In conclusion,<br />
since there is no one-handed<br />
economist like Harry Truman<br />
(a former American president)<br />
famously quipped, I will also<br />
conclude this article by saying<br />
that debt restructuring may be<br />
beneficial on the one hand but on<br />
the other hand there are potential<br />
risks especially if there is the developmental<br />
impact is hazy. We<br />
may end up in another (foreign)<br />
debt trap without realising the<br />
much envisaged benefits of debt<br />
restructuring.<br />
Send reactions to:<br />
comment@businessdayonline.com
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
COMMENT<br />
SOJI APAMPA<br />
Olusoji Apampa is the CEO of The<br />
Convention on Business Integrity.<br />
Nigeria has grown her<br />
economy about 100<br />
times the size it was in<br />
1960. Thanks to the rebasing<br />
of the economy,<br />
from the US$4bn GDP in 1960, by<br />
2016 the GDP was some US$402bn.<br />
Has the “Giant of Africa” not done<br />
well? Before we pop the champagne<br />
though, let’s get a frame of reference.<br />
How well has her rival, South<br />
Africa, done? In 1960, South Africa’s<br />
GDP was US$7.2bn and by 2016 it<br />
had grown to some US$296bn. On<br />
the face of it therefore, Nigeria has<br />
done extremely well? But, if Nigeria<br />
has done so much better than South<br />
Africa, why do Nigerians feel so<br />
much poorer on average than South<br />
Africans?<br />
Let’s broaden the field a little<br />
more to add Singapore into the mix.<br />
Nigerian leaders admire Lee Kwan<br />
Yew and in his famous book, From<br />
Third World to First, he makes some<br />
reference to Nigeria in the 1960s and<br />
how well or not she has turned out on<br />
certain dimensions. So, where was<br />
Singapore in 1960? Her GDP was a<br />
mere US$0.7bn, which had grown<br />
impressively to US$296bn by 2016,<br />
on a par with South Africa’s GDP.<br />
So, if her GDP is less than Nigeria’s<br />
DAN STEINBOCK<br />
Dr Dan Steinbock is the founder of<br />
Difference Group and has served as<br />
research director at the India, China<br />
and America Institute (USA) and visiting<br />
fellow at the Shanghai Institutes<br />
for International Studies (China) and<br />
the EU Center (Singapore). For more,<br />
see http://www.differencegroup.net/<br />
For a year, President Trump<br />
has promoted global division<br />
and trade friction,<br />
while China has defended<br />
global trade and cooperation. It<br />
is time to defend the open, global<br />
economy.<br />
If President Xi Jinping’s speech<br />
was highly anticipated in the Boao<br />
Forum, it was even more eagerly<br />
waited in Washington and Wall<br />
Street, as trade tensions have begun<br />
to penalize US markets.<br />
In his keynote speech, Xi urged<br />
countries to “stay committed to<br />
openness, connectivity and mutual<br />
benefits, build an open global<br />
economy, and reinforce cooperation<br />
within the G-20, APEC and<br />
other multilateral frameworks.”<br />
The ultimate goal is to make economic<br />
globalization “more open,<br />
inclusive, balanced and beneficial<br />
to all.”<br />
Xi presented plans to further<br />
C002D5556<br />
Nigeria is turning a very gentle corner<br />
but equal to South Africa’s why are<br />
Singaporeans now “First World”,<br />
South Africans said to be living in an<br />
“Emerging Economy” and Nigerians<br />
classified as belonging to a “Frontier<br />
Market”?<br />
Definitions abound at the ‘University<br />
of Google:’First World economies<br />
are assumed to be capitalist,<br />
industrialised and developed,<br />
amongst other things. Emerging<br />
Economies are considered to be<br />
moving rapidly towards Frist World<br />
status by reason of steady growth,<br />
development and industrialization<br />
while Frontier Markets are described<br />
as a type of developing<br />
country that is more developed<br />
than the least developed, but still<br />
too small to be generally considered<br />
Emerging Economies. By now, it<br />
should be clear to us that raw GDP<br />
numbers often quoted at us, are not<br />
sufficient to describe how wealthy<br />
the citizens of a country should feel<br />
as a result. But having said that,<br />
South Korea with a GDP of US$4bn<br />
was perhaps the closer one to Nigeria’s<br />
in 1960 and should be a more<br />
acceptable frame of reference. By<br />
2016, the GDP of South Korea had<br />
grown to US$1.4tr and we should not<br />
have to debate whether or not South<br />
Koreans should feel much less poor<br />
than Nigerians.<br />
Perhaps a better measure is GDP<br />
per Capita (or per head of population).<br />
This is perhaps more telling. In<br />
1960, Nigeria’s GDP per capita was<br />
US$93, South Africa’s was US$435,<br />
Singapore’s US$428 and South Korea’s,<br />
US$158. By 2016 the figures<br />
were Nigeria US$2,200, South Africa<br />
US$5,300, Singapore US$53,000<br />
(competing with that of the United<br />
States) and South Korea, US$27,500.<br />
By this measure, it is clearer why Sin-<br />
Time to safeguard global free trade<br />
open up the Chinese economy,<br />
including lower import tariffs<br />
for autos and other products,<br />
enforcement of the legal intellectual<br />
property of foreign firms,<br />
and improving the investment<br />
environment for international<br />
companies.<br />
It was a balancing act that<br />
highlighted China’s goal to safeguard<br />
open global economy, even<br />
amid Trump’s trade wars.<br />
Trump’s trade war<br />
In early March, President<br />
Trump introduced a global tariff<br />
of 24 percent on steel imports,<br />
while launching a 10 percent duty<br />
on all aluminum entering the US.<br />
On March 22, Trump directed<br />
his administration to make a<br />
case against Chinese technology<br />
licensing in the WTO, launched<br />
a slate of tariffs at $50 billion on<br />
Chinese products and proposed<br />
to step up restrictions on Chinese<br />
investment in key US technologies.<br />
That’s when China, in response<br />
to US steel and aluminum<br />
tariffs, imposed tariffs on $3 billion<br />
worth of US goods.<br />
On <strong>April</strong> 2, China imposed tariffs<br />
of up to 25 percent on 128 US<br />
products, in response to steel and<br />
aluminum tariffs. The next day,<br />
the US proposed tariffs on $50<br />
billion worth of Chinese electronics.<br />
Afterwards, China launched<br />
$50 billion in tariffs on more US<br />
products, including soybeans,<br />
cars and chemicals. And on <strong>April</strong><br />
5, Trump said he was considering<br />
an additional $100 billion in tariffs<br />
Nigeria regularly gives the<br />
impression the success she<br />
is capable of is imminent,<br />
but onlookers are often<br />
frustrated by how long it<br />
appears to be taking for this<br />
success to materialise.<br />
gaporeans should feel First World. The<br />
difference comes when the raw GDP is<br />
spread over the population, which for<br />
Singapore with its 5.6 million people<br />
in 2016 (up from 1.6 million in 1960)<br />
gives a better impact per person than<br />
South Africa with the same GDP in<br />
2016 but a population of 56 million<br />
people. So, is population a main differentiator?<br />
Yes, but not the only one.<br />
Nigeria’s population has grown<br />
from 43 million in 1960 to 186 million<br />
in 2016 while South Korea grew from<br />
25 million to 51 million in the same<br />
period. It is tempting to conclude that<br />
once you limit the population growth,<br />
everyone would feel much wealthier.<br />
But South Korea and South Africa<br />
have similar population sizes today<br />
against China.<br />
With substantial geopolitical<br />
leeway, Trump is also playing<br />
targeted countries against each<br />
other. That’s why he has granted<br />
“initial exemptions” to US NAFTA<br />
partners, Mexico and Canada, and<br />
“temporary exemptions” to the EU,<br />
South Korea and others on steel<br />
and aluminum tariffs.<br />
Over a year ago at Davos, President<br />
Xi Jinping stressed the need<br />
for global cooperation to sustain<br />
global recovery. In a trade war,<br />
he said, “no one will emerge as a<br />
winner.”<br />
In the White House, that wisdom<br />
got lost in translation. Now<br />
the only question is how costly that<br />
policy mistake will prove.<br />
Costly consequences<br />
President Trump may be in for a<br />
cruel awakening. For now, the economic<br />
impact on Chinese companies<br />
and banks is still limited. The<br />
US accounts for only 15 percent of<br />
China’s goods exports, and China’s<br />
domestic activity - not net exports<br />
anymore - now fuels its economic<br />
growth. US economy will carry a<br />
substantial burden, however.<br />
Second, Trump’s unilateral<br />
tariffs will soon begin to hit hard<br />
the constituencies that were vital<br />
for his triumph in 2016 and who<br />
remain critical to Republicans in<br />
the fall mid-term elections. These<br />
farmers and blue-collar voters gave<br />
Trump a mandate to negotiate better<br />
terms with US trade partners,<br />
but not a carte blanche, and certainly<br />
not a license for a trade war.<br />
BUSINESS DAY<br />
11<br />
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Send 800word comments to comment@businessdayonline.com<br />
yet South Korea is much wealthier<br />
simply because it grew its economy<br />
many multiples faster than its population<br />
rose. At the end of the day, a<br />
large, wealthy population is an asset<br />
to countries like the US and China<br />
and had Nigeria kept pace with its<br />
1960 classmate, South Korea, and<br />
grown its economy similarly, its GDP<br />
per capita would have been between<br />
US$7,500 and US$8,000.<br />
In Global Competitiveness Rankings,<br />
Nigeria is believed to be challenged<br />
by inadequate infrastructure,<br />
corruption, poor access to financing,<br />
political instability and inefficient<br />
government bureaucracy not just a<br />
large population (which really ought<br />
to be an asset). Could this be why<br />
development and industrialization<br />
are severely challenged too? Nigeria<br />
grew on average by more than<br />
4% year-on-year between 2006 and<br />
2014 inclusive. This growth was not<br />
inclusive (code for not felt by the<br />
ordinary people) because to them<br />
it was nothing more than accounting<br />
entries on the basis of oil sales.<br />
Nigeria is now turning the corner by<br />
de-emphasizing oil and emphasizing<br />
other sectors like agriculture,<br />
mining, ICT, services and so on.<br />
Nigeria regularly gives the impression<br />
the success she is capable<br />
of is imminent, but onlookers are<br />
China is the largest customer<br />
for America’s farm surplus at<br />
over $20 billion per year. Since<br />
US farm groups have greatly benefited<br />
from the reduction of trade<br />
barriers over time, there is an<br />
unease across the US heartland<br />
that Trump’s tariffs could upend<br />
decades of progress. Even worse, if<br />
trade friction worsens with NAFTA<br />
and EU partners, US farmers<br />
would take hits from all directions.<br />
Third, as US sovereign debt<br />
now exceeds $20.7 trillion (107%<br />
of GDP) and Trump’s infrastructure<br />
initiative is fueled by recordhigh<br />
leverage, trade war is undermining<br />
America’s critical revenue<br />
sources.<br />
Fourth, Trump’s trade war is<br />
escalating at a time when even<br />
rising interest rates can no longer<br />
ensure a strong dollar, and petroyuan<br />
is on the ascend. Moreover,<br />
with $1.2 trillion of US debt, China<br />
remains the largest foreign holder<br />
of US Treasuries. And it also has<br />
$3.1 trillion of foreign exchange<br />
reserves.<br />
Fifth, if Trump proceeds in<br />
the trade war path, he would undermine<br />
US ties with its NAFTA<br />
partners, alienate EU allies while<br />
undercutting US alliances with<br />
the rest of its trade and security<br />
partners in Asia. Over time, that<br />
would undermine not just trade,<br />
but investment and finance with<br />
America’s biggest economic partners<br />
in North America, Western<br />
Europe and East Asia.<br />
Sixth, global growth prospects<br />
often frustrated by how long it appears<br />
to be taking for this success<br />
to materialise. At the just concluded<br />
Africa CEO Forum in Abidjan, during<br />
the debate moderated by The Africa<br />
Report, the Executive Secretary of the<br />
Nigeria Investment Promotion Council,<br />
Ms. Yewande Sadiku was asked,<br />
“Has Nigeria turned a corner away<br />
from oil towards diversification of her<br />
economy?” It was a very memorable<br />
response she gave: “Nigeria is turning<br />
a very gentle corner away from oil,<br />
not a sharp corner. You won’t see the<br />
changes overnight but we’re on the<br />
right track.”<br />
Indications that we are on the<br />
right track could be characterized by<br />
greater investments in infrastructure<br />
(preferably by the private sector);<br />
greater effort to prevent corruption<br />
by strengthening business and public<br />
integrity; the consequent attractiveness<br />
of Nigerian firms/Nigeria to<br />
international capital (e.g. via private<br />
equity firms); smooth political transitions<br />
continuing in 2019 and beyond<br />
(preferably with governments having<br />
a higher ratio of professionals to<br />
politicians than we have had); and, a<br />
reduction in government red tape (e.g<br />
by further improving on our Ease of<br />
Doing Business rankings). If I were to<br />
sum this up in one indicator, it would<br />
be that the average citizen is enabled<br />
raise his/her income sustainably,<br />
year-on-year, regardless of what part<br />
of the country s/he operates in.<br />
What do you think? Has Nigeria<br />
turned a corner in the direction you<br />
are expecting?<br />
Send reactions to:<br />
comment@businessdayonline.com<br />
are not immune to the trade war.<br />
Before Trump’s tariffs, global<br />
investment flows remained well<br />
behind their peak a decade ago.<br />
World export volumes reached a<br />
plateau already in early 2015. In finance,<br />
global cross-border capital<br />
flows have declined by a 65 percent<br />
since 2007.<br />
Prohibitive lessons<br />
For now, the damage of the<br />
Trump tariffs is still reparable and<br />
reversible. However, the net effect<br />
of further escalation would result<br />
in critical erosion in global investment,<br />
trade, and finance. That has<br />
potential to derail the fragile global<br />
economic recovery and disrupt<br />
international supply chains.<br />
In that case, four decades of bilateral<br />
confidence-building could<br />
be undermined in four weeks and<br />
mistrust would soon spread to<br />
US relations with its partners in<br />
Americas, Western Europe and<br />
East Asia.<br />
In that path, there is a historical<br />
precedent. After the US economy<br />
drifted into the Great Depression<br />
in the 1930s, Washington<br />
enacted the Smoot-Hawley Tariff<br />
Act, which led the way to tit-for-tat<br />
retaliation, and ultimately paved<br />
the way to much worse.<br />
Trump’s unilateral tariff war is<br />
on the wrong side of history.<br />
•The original, slightly shorter<br />
version was published by China<br />
Daily on <strong>April</strong> 10, <strong>2018</strong><br />
Send reactions to:<br />
comment@businessdayonline.com
12 BUSINESS DAY C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
Editorial<br />
PUBLISHER/CEO<br />
Frank Aigbogun<br />
EDITOR-IN-CHIEF<br />
Prof. Onwuchekwa Jemie<br />
EDITOR<br />
Anthony Osae-Brown<br />
DEPUTY EDITORS<br />
John Osadolor, Abuja<br />
Bill Okonedo<br />
NEWS EDITOR<br />
Patrick Atuanya<br />
EXECUTIVE DIRECTOR,<br />
SALES AND MARKETING<br />
Kola Garuba<br />
EXECUTIVE DIRECTOR, OPERATIONS<br />
Fabian Akagha<br />
EXECUTIVE DIRECTOR, DIGITAL SERVICES<br />
Oghenevwoke Ighure<br />
ADVERT MANAGER<br />
Adeola Ajewole<br />
MANAGER, SYSTEMS & CONTROL<br />
Emeka Ifeanyi<br />
HEAD OF SALES, CONFERENCES<br />
Rerhe Idonije<br />
SUBSCRIPTIONS MANAGER<br />
Patrick Ijegbai<br />
CIRCULATION MANAGER<br />
John Okpaire<br />
GM, BUSINESS DEVELOPMENT (North)<br />
Bashir Ibrahim Hassan<br />
GM, BUSINESS DEVELOPMENT (South)<br />
Ignatius Chukwu<br />
HEAD, HUMAN RESOURCES<br />
Adeola Obisesan<br />
$Ibn to fight insurgency: National Assembly must stand firm against<br />
Late December last<br />
year, the government<br />
announced that the<br />
National Economic<br />
Council has approved<br />
$1 billion to be spent by the<br />
federal government from the<br />
Excess Crude Account to fight<br />
Boko Haram insurgency in the<br />
Northeast region – the same<br />
Boko Haram the government<br />
and the army repeatedly assured<br />
it had defeated technically,<br />
had been dislodged from<br />
their stronghold of Sambisa<br />
forest and which no longer controls<br />
an inch of Nigeria’s territory<br />
but whose remnant and<br />
fleeing members could only<br />
attack soft targets. For added<br />
measure, the Chairman of the<br />
governor’s forum, Abdulaziz<br />
Yari, told the media the governors<br />
of the 36 states of Nigeria<br />
approved the withdrawal even<br />
though Ekiti state governor, Ayo<br />
Fayose denied ever agreeing to<br />
such plan.<br />
We queried the decision on<br />
the following grounds: First, the<br />
money in the Excess Crude Account<br />
belong to the three tiers of<br />
government (the federal, state<br />
and local governments) and by<br />
extension the entire citizenry.<br />
The federal and state governments<br />
or more appropriately,<br />
their executives alone cannot<br />
decide on what to do with it to<br />
the exclusion of the local governments<br />
and especially the<br />
representatives of the people.<br />
It is not some personal money;<br />
therefore the governors have no<br />
right to grant permission to the<br />
federal government to use it for<br />
whatever purpose without due<br />
process. Secondly, when have the<br />
National Economic Council and<br />
the Governor’s forum become<br />
a legislative institution with the<br />
power of the purse when there is<br />
a legitimate National Assembly<br />
in place and constitutionally assigned<br />
to perform that function?<br />
Three, the government has already<br />
proposed to spend another<br />
N422 billion (the second highest<br />
in the proposed budget) for Defence<br />
in the <strong>2018</strong> budget. Why<br />
another $1 billion for fighting an<br />
already defeated enemy? Fourth,<br />
if the government’s decision is to<br />
rebuild the region affected by the<br />
insurgency, there already exist<br />
several interventions being undertaken<br />
in the Northeast both by<br />
government and the private sector<br />
including the Presidential Initiative<br />
in the North East (PINE),<br />
whose money the sacked Secretary<br />
to the Federal Government<br />
helped himself and his associates<br />
generously to, the Northeast Development<br />
Agency, private sector<br />
led Northeast fund, interventions<br />
by national and international<br />
Non-Governmental Organisations,<br />
the dedicated focus by the<br />
World Bank as requested by the<br />
president; all targeted at rebuilding<br />
the region.<br />
We concluded that the decision<br />
was fraught with many irregularities<br />
and impunity and<br />
the National Assembly must not<br />
allow it to pass. We were therefore<br />
taken aback when, last week,<br />
the Minister of Defence informed<br />
the nation at the end of a meeting<br />
the president had with security<br />
chiefs at the Presidential Villa<br />
that the president has approved<br />
the release of $1 billion for the<br />
procurement of security equipment<br />
to fight insurgency in the<br />
country without recourse to<br />
the National Assembly. That<br />
unilateral action would have<br />
meant officially, Nigeria is no<br />
longer a democracy. Thankfully,<br />
the gravity of the situation<br />
was brought to the notice<br />
of the president who, through<br />
his Senior Special Assistant<br />
on National Assembly matters<br />
(Senate), Senator Ita Enang,<br />
denounced the news insisting<br />
that the president could not<br />
have unilaterally approved<br />
the sum, for spending, without<br />
appropriation by the National<br />
Assembly. Senator Enang said<br />
“the President said his administration<br />
was also conscious of<br />
the provision of Sections 4 and<br />
5 of the 2017 Appropriation<br />
Act (relating to Excess Crude<br />
Account). Therefore, the matter<br />
of the security fund is still<br />
undergoing standard processes<br />
for laying before the National<br />
Assembly for appropriation.”<br />
We are relieved that the presidency<br />
has retracted the story<br />
or has been forced to backtrack<br />
from the illegal action.<br />
Like we have argued before,<br />
the lack of clarity and accountability<br />
in the release and utilisation<br />
of funds to prosecute the<br />
war on insurgency is beginning<br />
to expose the farce that is the<br />
war on terror. It appears, like<br />
many informed analysts and<br />
watchers of events in Nigeria<br />
have been insinuating, that<br />
there’s a huge industry sustaining<br />
the war on Boko Haram and<br />
ensuring the war never ends.<br />
We still demand that the National<br />
Assembly should refuse<br />
and insist on the government<br />
not touching any funds from the<br />
Excess Crude Account without its<br />
approval. Before such approval<br />
is granted, the government must<br />
come clean on the state of the war<br />
on terror, the particular items and<br />
programmes it needs funds for<br />
and also exhaustively account for<br />
all previous funds approved for<br />
the war. Just like the government<br />
has been regaling us with tales of<br />
how the previous administration<br />
used the funds meant for buying<br />
weapons to prosecute the 2015<br />
elections, we may not be surprise<br />
to learn, after the tenure of this<br />
administration, that similar or<br />
worse practices were perpetrated<br />
under this administration.<br />
It is time the National Assembly<br />
act to prevent a few individuals<br />
from continually looting of the<br />
commonwealth in the name of<br />
fighting a non-existent war on<br />
terror.<br />
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www.businessdayonline.com
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
BUSINESS DAY<br />
MoneyInsight<br />
C002D5556<br />
<strong>13</strong><br />
Personal Finance: Investing Retirement Taxes Credit Cards Home Buying Small Business Shopping Financing<br />
Facebook wants users to earn<br />
money exposing data abuses<br />
FRANK ELEANYA<br />
Users on Facebook<br />
can now<br />
earn a reward<br />
when they<br />
identify and<br />
report malicious platform<br />
apps collecting data and<br />
another person abusing it.<br />
Facebook is calling it the<br />
Data Abuse Bounty.<br />
“We want to protect our<br />
users’ data from malicious<br />
abuse of trust,” the company<br />
wrote in a blog post.<br />
“This means protecting it<br />
via finding and fixing security<br />
vulnerabilities, but also<br />
from third party companies<br />
or apps buying or collecting<br />
their data through other<br />
means barred by our terms.<br />
This program is to encourage<br />
and reward people for<br />
helping Facebook identify<br />
and stop anyone involved<br />
in this practice.”<br />
On Monday, Facebook<br />
revealed that about 271,469<br />
data belonging to Nigerians<br />
on Facebook, whose<br />
friends would have installed<br />
the ‘This is Your Digital<br />
Life’ app, were exposed to<br />
the Cambridge Analytica<br />
data breach. Meanwhile, 78<br />
Facebook users in Nigeria<br />
installed the app on their<br />
phone.<br />
In a statement Business-<br />
Day received, Facebook said<br />
the disclosure is to encourage<br />
people to manage the<br />
apps they use.<br />
“We already show people<br />
what apps their accounts<br />
are connected to and control<br />
what data they have<br />
permitted those apps to<br />
use through app settings,” a<br />
spokesperson for Facebook<br />
said. “We are putting a link<br />
at the top of people’s News<br />
Stakeholders advocate single digit franchise funding<br />
Franchise Business Development<br />
Services<br />
(FBDS) has made case<br />
for the creation of access to<br />
single digit franchise funding<br />
to enable the development<br />
and expansion of the critical<br />
sub-sector of the economy.<br />
This was a crucial takeaway<br />
from the recent Franchise<br />
Matchmaking Investment<br />
forum recently held in<br />
Lagos, the second of its kind<br />
by FBDS –the pioneer franchise<br />
consulting company in<br />
Nigeria.<br />
The event highlighted the<br />
nitty-gritty of franchise investment<br />
procedures, pointing<br />
to the fact, if properly harnessed;<br />
franchise businesses<br />
have the potentials to create<br />
Feeds to make sure that everyone<br />
sees it. Furthermore,<br />
it is important for us to tell<br />
people if and how their data<br />
may have been accessed via<br />
This is Your Digital Life.”<br />
Last week, the company<br />
had revealed that the data<br />
of about 87 million users on<br />
its platform were harvested<br />
without authorisation by<br />
Cambridge Analytica (CA).<br />
Users in the United States<br />
accounted for over 70 million<br />
(about 97 percent) of<br />
the data breach while 16<br />
million of the total number<br />
of users affected came<br />
from countries outside the<br />
United States. The countries<br />
listed were Philippines, UK,<br />
Indonesia, United Kingdom,<br />
Mexico, Canada, India,<br />
Brazil, Vietnam and<br />
Australia.<br />
The press release from<br />
Facebook does not say<br />
whether Nigeria is part of<br />
the remaining 16 million users<br />
outside the United States<br />
or that more than 87 million<br />
could have been affected.<br />
The company however<br />
said it is taking numerous<br />
measures.<br />
“One of those being that<br />
everyone globally on their<br />
Facebook page will see an<br />
alert leading them to the<br />
apps setting where they<br />
can review the apps they<br />
have allowed to access their<br />
data. Additionally, those<br />
potentially impacted by CA<br />
will also see the alert which<br />
will then take them to see<br />
what data might have been<br />
shared,” Facebook noted.<br />
Nigerians, who want to<br />
find out whether their data<br />
were shared by with Cambridge<br />
Analytica, can look<br />
out for a link named ‘protecting<br />
your information’<br />
link at the top of their news<br />
Tundun Adreribigbe, COO, House of Tara speaking at the event, held in Lagos, recently.<br />
over 500,000 new jobs in the<br />
next four years in Nigeria.<br />
The event featured sessions<br />
by experts from the<br />
industry who discussed exhaustively<br />
on how to manage<br />
a franchise and drive profit in<br />
feed. Following that link,<br />
users will be directed to a<br />
section where they can see<br />
which apps and websites<br />
they have used Facebook<br />
to log into, and remove any<br />
they no longer want connected<br />
to their account.<br />
Above the link, users<br />
who may have been affected<br />
by the data scandal will<br />
see the message: “We have<br />
banned the website ‘This<br />
is Your Digital Life,’ which<br />
one of your friends used<br />
Facebook to log into. We<br />
did this because the website<br />
may have misused some<br />
of your Facebook information<br />
by sharing it with a<br />
company called Cambridge<br />
Analytica.”<br />
In addition, Facebook<br />
has committed to inform<br />
ever user on the platform<br />
from 5pm on Monday,<br />
whether they are among<br />
the 87 million potential users<br />
whose data was shared<br />
with Cambridge Analytica.<br />
The company also<br />
suspended a data analytics<br />
firm called Cubeyou<br />
ahead of an investigation.<br />
Facebook plans to look<br />
into whether Cubeyou collected<br />
data for academic<br />
purposes and then used<br />
it commercially, following<br />
a very competitive business<br />
economy.<br />
Prospective corporate and<br />
individual investors were<br />
taken through the curriculum<br />
by both the organizers and<br />
the franchisors pitching for<br />
a partnership with Cambridge<br />
University in the<br />
UK.<br />
“We will review all legitimate<br />
reports and respond<br />
as quickly as possible<br />
when we identify a<br />
credible threat to people’s<br />
information,” Collin<br />
Greene, head of Product<br />
Security, Facebook. “If we<br />
confirm data abuse, we will<br />
shut down the offending<br />
app and take legal action<br />
against the company selling<br />
or buying the data,<br />
if necessary. We will pay<br />
the person who reported<br />
the issue, and we will also<br />
alert those we believe to be<br />
affected.”<br />
The company also said<br />
it will reward people with<br />
first-hand knowledge and<br />
proof of cases where a Facebook<br />
platform app collects<br />
and transfers people’s data<br />
to another party to be sold,<br />
stolen or used for scams or<br />
political influence.<br />
“Just like the bug bounty<br />
program, Facebook will reward<br />
based on the impact<br />
of each report. While there<br />
is no maximum, high impact<br />
bug reports have garnered<br />
as much as $40,000<br />
for people who bring them<br />
to Facebook’s attention,”<br />
prospective investors, on how<br />
they can own their franchised<br />
businesses at virtually no<br />
business failure risks, while<br />
gaining sufficient education<br />
through the sessions, on<br />
losses rather associated with<br />
venturing into new business.<br />
They pointed to such facts as<br />
that franchises have only 5%<br />
failure rate in South Africa,<br />
while start-up businesses record<br />
80% failure rate within<br />
few years in Nigeria.<br />
Chiagozie Nwizu, the<br />
forum’s convener, said it<br />
was part of FBDS’ measure,<br />
to facilitate risk free venturing,<br />
business sustainability,<br />
growth of the enterprise sector<br />
and attraction of Foreign<br />
Direct Investments (FDIs) to<br />
Only 17% customers intend buying<br />
from ecommerce site on first visit<br />
FRANK ELEANYA<br />
Every customer that<br />
visits an ecommerce<br />
website for the first<br />
time did not have buying as<br />
their primary purpose, says<br />
the <strong>2018</strong> Reimagining Commerce<br />
study from Episerver.<br />
The purpose of the first<br />
visit always varies. The report<br />
showed that only 17<br />
percent of customers say they<br />
planned to buy something<br />
the first time they visited the<br />
ecommerce website.<br />
Half of shoppers (50%) see<br />
a product they want to buy and<br />
immediately do so. The rest<br />
of the half start by browsing<br />
sections including sales items<br />
(19%), shipping information<br />
(payment information) (8%),<br />
payment information (6%),<br />
and featured product recommendations<br />
(5%).<br />
Ed Kennedy, director of<br />
Digital Commerce Strategy,<br />
Episerver explained<br />
that majority of consumers<br />
come for something other<br />
than buying a product.<br />
“They come to browse,<br />
look at prices and compare.<br />
There is all these other<br />
journeys that, as retailers,<br />
we have sort of forgotten<br />
about,” Kennedy said.<br />
Most people (95%) abandon<br />
an ecommerce website<br />
without completing their<br />
purchase because of weak<br />
product, store or brand information.<br />
Expensive shipping turned<br />
the economy, through the<br />
franchise business model.<br />
“Franchise Matchmaking<br />
Forum is a quarterly franchise<br />
investor’s forum creating<br />
opportunities where the<br />
franchisor finds qualified<br />
potential franchisees who<br />
meet his brand’s criteria,<br />
and the potential franchisee<br />
meets the franchisor with<br />
a suitable proposition for<br />
his investment interest,” he<br />
said.<br />
The forum also created<br />
a platform for participating<br />
investors to meet and interact<br />
with CEOs of successful<br />
franchise brands, with the<br />
CEOs and Executive representatives<br />
of over 40 local and<br />
foreign franchise brands in<br />
off as much as 60 percent customers<br />
while being unable to<br />
find the exact product on the<br />
online store put off 54 percent.<br />
Price concerns dissuaded 46<br />
percent of customers.<br />
Ed Kennedy also noted<br />
the strong correlation between<br />
the total amount<br />
of traffic to a site and the<br />
amount of traffic that gets to<br />
a product page.<br />
“If you are a retailer with<br />
a large product assortment,<br />
search is going to be key.<br />
How you set up search and<br />
how you set up navigation is<br />
going to be a very critical part<br />
of the buying journey,” Kennedy<br />
said.<br />
The report recommended<br />
that ecommerce owners need<br />
to focus more on personalisation.<br />
For instance, as many as<br />
22 percent of shoppers have<br />
received ads for products<br />
they would never purchase,<br />
while 16 percent have received<br />
similarly misguided<br />
product recommendations.<br />
“We are at the point where<br />
optimised recommendations<br />
are standard across<br />
most ecommerce websites,<br />
so those automated product<br />
recommendations are usually<br />
where the problem comes<br />
in. The algorithms are set up<br />
in a very rudimentary way,<br />
showing me what I recently<br />
viewed or what I recently<br />
purchased. Those are very<br />
basic algorithms that make<br />
a very poor customer experience,”<br />
Kennedy said.<br />
attendance.<br />
Some of the participating<br />
brands included: Meadow<br />
Foods, Chicken Republic,<br />
Rockin Jump, Bakaria, Avis,<br />
Studio24, Sweet Factory,<br />
Coffeeshop Company Tantalizers<br />
PLC; House Of Tara;<br />
Five Senses Schools, Best<br />
Choice, Tolaram Group,<br />
The Toy Store, Yogurt Frenzy<br />
and Innova Pharmacies<br />
to mention a few. While<br />
some of the supporting<br />
organizations included<br />
Lagos State Employment<br />
Trust Fund; Ciuci Consulting,<br />
Enterprise Development<br />
Center; Nigeria Investment<br />
Promotion Commission and<br />
Nigerian American Chamber<br />
of Commerce.
14 BUSINESS DAY C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
Policy Investments Market Insight Influencers<br />
INSIGHT<br />
Arnergy pushes for solar power for productive use<br />
ISAAC ANYAOGU<br />
Arnergy Solar Limited,<br />
a solar power<br />
firm providing<br />
solar home system<br />
says its recent<br />
acquisition of an Internet of<br />
Things enabled platform has<br />
put the company’s valuation<br />
at over $50m.<br />
According to a recent release<br />
by the company, the IoT<br />
technology developed along<br />
with its partners offers anyone<br />
who wants to play in the<br />
power sector an opportunity<br />
to do so.<br />
“What we are doing is new<br />
and revolutionary. We have<br />
built a platform to bring everybody<br />
who desires to play<br />
in the sector on board, this<br />
includes: existing solar players,<br />
be it an inverter supplier,<br />
solar panel manufacturers,<br />
even those in oil and gas, can<br />
come together to create a<br />
system that provides power<br />
to our people,” a co-founder<br />
of the firm, Femi Adeyemo.<br />
Adeyemo also said the<br />
opportunity in the off grid<br />
market to power Nigerians is<br />
bigger than what was experi-<br />
Offgrid solar in Nigeria: Enablers and hurdles<br />
Nigeria as a country<br />
is more populous<br />
than the entire<br />
economic bloc<br />
of East African Community<br />
(EAC). Relatedly, Nigeria’s<br />
GDP is 250% of EAC’s GDP<br />
(405 USD & 159 USD [2016<br />
values]). This data paints a<br />
nice portrait of the sheer size<br />
of the Nigerian market from a<br />
sector-agnostic perspective.<br />
But there is a consensus<br />
that Nigeria’s major hurdle<br />
to economic development is<br />
its very poor level of energy<br />
access. Nigeria was recently<br />
ranked as one of the countries<br />
with the worst electricity supply<br />
in the world, according<br />
to a 2017 report by Spectator<br />
Index.<br />
These statistics clearly<br />
outline the enormous potential<br />
and necessity of the energy<br />
investment opportunities<br />
in Nigeria. Especially off grid<br />
solar investment which has<br />
proved to be relatively easy,<br />
affordable and efficiently<br />
scalable.<br />
Consequently, Nigeria’s<br />
promising off grid solar market<br />
has attracted - and continues<br />
to attract - investments,<br />
although real hurdles remain.<br />
Macroeconomic problems,<br />
regulatory constraints and<br />
the typical challenges of a<br />
nascent market are still vis-<br />
enced in the Telecoms sector.<br />
“If the four big operators in<br />
the telecom space has spent<br />
billions and we still have a<br />
lot of places without mobile<br />
network, it means the amount<br />
of money and capacity of enterprises<br />
needed to power Nigeria<br />
is huge,” said Adeyemo.<br />
To achieve this objective,<br />
the company inviting partners<br />
as channel managers who<br />
may not have prior experience<br />
in providing power to become<br />
resellers after acquiring the<br />
system. Resellers can log on to<br />
the portal and monitor power<br />
consumption and connectivity<br />
in real time.<br />
“The good thing is that<br />
we have a platform that is<br />
ible. However, in spite of the<br />
hurdles, market players are<br />
making significant progress.<br />
Off grid solar developments<br />
will be one of the highlighted<br />
topics in this year’s<br />
edition of The Solar Future<br />
Nigeria, the largest solar PV<br />
focused industry event in<br />
Nigeria, which is hosted by<br />
global PV knowledge platform<br />
Solarplaza in Abuja on<br />
the 15th and 16th of May.<br />
Around the world, the<br />
off grid solar space is continuously<br />
being buoyed by<br />
adjacent developments in<br />
technology and consumer<br />
preferences. From the role<br />
of innovative Fintech solutions,<br />
to the progress witnessed<br />
in mobile penetration;<br />
market enablers are<br />
emerging in Nigeria, which<br />
continuously redefines its<br />
frontiers.<br />
One of the most bullish off<br />
grid solar brands in the Nigerian<br />
market is Azuri Technologies.<br />
Their market footprint<br />
perfectly juxtaposes the opportunities<br />
and challenges inherent<br />
in the Nigerian off grid<br />
solar market. Vera Nwanze,<br />
General Manager Azuri Technologies<br />
West Africa says that<br />
“Nigeria is a ready market for<br />
solar energy. On-grid energy<br />
by itself cannot produce and<br />
is not robust enough to sup-<br />
scalable as we see the next<br />
phase of the offgrid market<br />
is to develop solar power for<br />
productive uses,” says a cofounder<br />
of Arnergy Solar Ltd,<br />
Kunle Odebunmi, a trained<br />
accountant.<br />
The company says it has<br />
created flexible pricing options<br />
for different power<br />
needs ranging from 300 watts<br />
to 5KVA which vary depending<br />
on if one is leasing or<br />
paying for our right purchase.<br />
Lease facility for end users<br />
on 300watts is N3,300<br />
monthly, 1KVA system users<br />
pay N12,500 monthly, equivalent<br />
to paying N500 daily for a<br />
petrol generator. The lease for<br />
2KVA system is N18,000 per<br />
port the population growth”.<br />
Nigeria’s population is<br />
projected to reach 400 million<br />
by 2050 which directly<br />
increases the potential size<br />
of the market. Vera explains<br />
that “Government focus is to<br />
improve grid capacity, while<br />
supporting off-grid energy<br />
initiatives.<br />
With a population of about<br />
180 million and over 50%<br />
living without electricity,<br />
Nigeria is the biggest market<br />
in Africa for off-grid solutions.<br />
As a result, the renewable<br />
energy policy was drafted<br />
with an emphasis on diversifying<br />
the energy mix. This has<br />
seen increased interest in the<br />
sector, thereby precipitating<br />
increased investment and<br />
interest”<br />
With evident enablers and<br />
numerous risks as well, how<br />
are market players and current<br />
investors navigating the<br />
path towards profitability?<br />
Nigeria as a country is somewhat<br />
remarkable with policy<br />
ambivalence and even insensitivity<br />
in some cases. Some<br />
economic and non-economic<br />
incentives that off grid investors<br />
vie for (and which are<br />
already given in other African<br />
markets) appear elusive. For<br />
example, market operators<br />
are presently confronting<br />
the Nigerian authorities on a<br />
month, 3KVA goes for N36,000<br />
monthly while 5KVA systems<br />
goes for N69,000 monthly.<br />
End users do not pay additional<br />
cost for maintenance<br />
and replacement of defective<br />
parts. Those who want outright<br />
purchase pay higher for<br />
the system.<br />
“We guarantee between<br />
12-24 hours of power supply<br />
depending on usage, part<br />
of what we teach is energy<br />
efficiency, the era has gone<br />
where you use 60 watts incandescent<br />
bulb or you put on air<br />
conditioners when you are not<br />
around. When you conserve<br />
the power you can better utilse<br />
the system,” says Adeyemo.<br />
On the level of enthusiasm<br />
for the service, Adeymo<br />
said, “We have built a platform<br />
that can accommodate<br />
as much channel partners<br />
as possible. We understand<br />
that some of them may not<br />
have enough technical experience<br />
and we have in-house<br />
training team that trains<br />
channel partners on how to<br />
install and run the system.<br />
We currently have 25 channel<br />
partners in two months<br />
end users are projected to<br />
reach 3,000 in a few months.”<br />
recent increase in import duty<br />
and Value Added Tax (VAT)<br />
on imported solar components<br />
and accessories.<br />
Proponents of the new<br />
policy argue that it is geared<br />
towards encouraging local<br />
manufacturing of solar equipment<br />
while investors believe<br />
it’s a major distortion to current<br />
market prices and existing<br />
cost structures; given the<br />
heavy reliance on imported<br />
components by most off grid<br />
solar companies.<br />
On the key challenges in<br />
the Nigerian market, Azuri<br />
technologies listed “Mobile<br />
money challenges (as<br />
payment option); Lack of<br />
financial support from the<br />
banks; Lack of awareness;<br />
Non-clarity on duty charges<br />
and poor ease of doing business”<br />
as operator constraints.<br />
This is apparent. Since solar<br />
off grid operators began to<br />
leverage Fintech for reaching<br />
previously inaccessible communities<br />
– mainly rural – a<br />
new category of customers<br />
has opened up. But, in spite<br />
of the inherent promise of<br />
technologies such as mobile<br />
money, Nigeria is yet to attain<br />
universal access to mobile<br />
money and its usefulness is<br />
further constrained by limited<br />
user awareness, which<br />
in turn lowers their relevance<br />
Clean Tech Hub, Heinrich Boell Foundation<br />
holds workshop on used batteries<br />
ISAAC ANYAOGU<br />
Many say a downside to<br />
the current growth of<br />
the renewable energy<br />
industry, especially solar adoption<br />
in the country is the that<br />
danger of improper disposal of<br />
used lead acid batteries (ULA-<br />
Bs) constitute to the country.<br />
Nigeria generates over<br />
200,000 tonnes of used acid batteries<br />
every year according to a<br />
research by Reddin Recycling<br />
Industries and many of these<br />
are end up being recycled in the<br />
country by informal recyclers<br />
who seek to extract the lead for<br />
exports outside Nigeria.<br />
However the challenge is<br />
batteries are one of the most<br />
hazardous wastes and constitute<br />
to danger to humans and<br />
the environment.<br />
“The steady growth of the<br />
renewable energy industry in<br />
Nigeria has not only driven<br />
energy access to the unserved<br />
and underserved, but has contributed<br />
to the country’s economic<br />
growth and reduction<br />
in the use of polluting, costly,<br />
inefficient power alternatives<br />
such as petrol/diesel generators<br />
and kerosene lamps,” says<br />
a release by Clean Tech Hub<br />
and the Heinrich Boell Foundation<br />
who are organising a<br />
workshop to discuss ULABs<br />
and utility for scaling off grid<br />
solar operations.<br />
Innovation seems to be<br />
the key answer, and companies<br />
like Azuri are moving<br />
forward with that. The<br />
company says it’s addressing<br />
constraints “with an innovative<br />
product, [such as] an individual<br />
solar home plant via<br />
PayGo as an “instant relief”,<br />
with no need for infrastructure<br />
or centralised planning”<br />
Rightly said: a growing mobile<br />
penetration, aided by Fintech<br />
and Pay As You Go solutions,<br />
typically combine to solve<br />
major challenges for operators.<br />
Specifically problems of<br />
revenue collection and the<br />
operator’s ability to better<br />
structure payments (that are<br />
related to acquisition/usage<br />
of solar products).<br />
Proud of their footprints<br />
in Nigeria, Vera says “With<br />
about one year in Nigeria, in<br />
a strategic partnership with<br />
REA/NDPHC and ASPNL<br />
as our distributor, we can<br />
proudly say that we have<br />
recorded a transformative<br />
presence in 12 Nigerian<br />
states, with deployment of<br />
20,000 individual solar home<br />
systems and entrenching<br />
PayGo as an alternative<br />
which has impacted about<br />
100,000 people and created<br />
over 500 job opportunities,<br />
management.<br />
“However the growing<br />
waste stream of used lead-acid<br />
batteries (ULAB) in the industry<br />
most of which are improperly<br />
disposed of or end up with illegal<br />
smelters and recyclers has<br />
led to growing environmental,<br />
health and safety concerns<br />
threatening the image of the<br />
“clean” energy industry.<br />
“Local and international<br />
organizations, donor agencies,<br />
financiers, civil societies and<br />
stakeholders in the industry<br />
are increasing demanding that<br />
renewable energy companies<br />
show proper management of<br />
ULAB and other potentially<br />
hazardous components.<br />
Clean Tech Hub and the<br />
Heinrich Boell Foundation is<br />
inviting stakeholders to the<br />
Workshop on Standardizing<br />
Best Practices for the Life-Cycle<br />
Management of Used Lead<br />
Acid Batteries (ULAB) for Renewable<br />
Energy Companies.<br />
According to the organisers,<br />
the workshop will highlight<br />
the work of the Heinrich<br />
Boell Foundation over the<br />
past two years in developing<br />
proper ULAB management<br />
for the sector, and propose<br />
standard ULAB management<br />
practices particularly in<br />
disposal and recycling for the<br />
sector. It will be held on <strong>April</strong><br />
17, in Lagos.<br />
especially in the rural communities.”<br />
On the medium term<br />
Azuri hopes to leverage market<br />
enablers “to reach over 1<br />
million households that the<br />
grid can not, or will not, reach<br />
and as such compliment the<br />
grid gaps” and “On the long<br />
term; have a local presence in<br />
Nigeria with a manufacturing<br />
plant for export into the other<br />
West Africa countries.”<br />
With more than 80 million<br />
Nigerians living without<br />
electricity, according to a<br />
World Bank report, the opportunity<br />
for off grid solar<br />
investment is great. The market<br />
will surely gain greater<br />
traction if the government<br />
strives to improve the overall<br />
market conditions. It’s<br />
imperative that the progress<br />
made so far will be sustained<br />
through more friendly regulations<br />
that increase the<br />
ease of doing solar business<br />
in Nigeria. It’s also evident<br />
that consumer awareness<br />
will continue to expand as<br />
operators consistently apply<br />
innovative solutions for<br />
transforming market hurdles<br />
to key enablers.<br />
- Solarplaza, written ahead<br />
of its Solar Future Nigeria<br />
conference which will hold<br />
on May 15, 16, <strong>2018</strong> in Abuja.<br />
Isaac Anyaogu, Email: isaac.anyaogu@businessdayonline.com, 07037817378, Graphics: Joel Samson
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong> C002D5556 BUSINESS DAY 15<br />
FINTECH<br />
News Products Review Technology Review Personality Review Company Review<br />
PRODUCTS REVIEW<br />
Ecobank Mobile app sees 9m transactions in 18 months<br />
Stories by FRANK ELEANYA<br />
Customers in 33<br />
African countries<br />
have processed<br />
nine million<br />
transactions<br />
worth over $1 billion using the<br />
Ecobank Mobile Application.<br />
In an announcement sent<br />
to <strong>BusinessDay</strong> on Monday,<br />
9 <strong>April</strong>, Ecobank said the<br />
achievement is coming barely<br />
eighteen months of the unveiling<br />
of the app.<br />
According to the company,<br />
about 4 million Ecobank<br />
Xpress accounts has been<br />
opened across the Ecobank<br />
Mobile App and USSD platforms.<br />
The Ecobank Mobile App<br />
enables users to transfer money<br />
instantly within the bank<br />
locally or across Africa using a<br />
feature known as the Ecobank<br />
RapidTransfer.<br />
“Consumers may also<br />
make transfers to other local<br />
bank accounts, mobile wallets<br />
and to Visa cardholders using<br />
Visa Direct on the Ecobank<br />
Mobile App,” the bank statement<br />
noted. “The app offers<br />
easy payments using Ecobank<br />
Scan+Pay through Masterpass,<br />
mVisa and Mcash, and<br />
has options to pay utility bills,<br />
school fees, subscriptions,<br />
make donations, buy airtime<br />
instantly and generate payment<br />
tokens using Ecobank<br />
Xpress Cash to do cardless<br />
ATM withdrawals or at an<br />
Ecobank Xpress point.”<br />
<strong>BusinessDay</strong> study finds<br />
that the Ecobank Mobile App<br />
has been downloaded more<br />
than 1 million times and was<br />
last updated on March 10,<br />
<strong>2018</strong> on the Google Play Store.<br />
Ade Ayeyemi, CEO of Ecobank<br />
stated that the bank has<br />
processed almost as many<br />
transactions on the Ecobank<br />
Mobile App in the first few<br />
months of <strong>2018</strong> as they did in<br />
the second half of 2017.<br />
“We aim to be the leading<br />
consumer financial services<br />
franchise in Africa and have<br />
developed a range of products<br />
and services relevant to<br />
meeting the daily banking,<br />
financing, investment and<br />
transactional needs of our<br />
customers,” Patrick Akinwuntan,<br />
group executive, Consumer<br />
Banking of Ecobank<br />
said. “The Ecobank Mobile<br />
App provides easy access to<br />
these services anytime and<br />
anywhere.”<br />
Meanwhile, customer rating<br />
of the Ecobank Mobile App<br />
on the Google Play Store and<br />
Apple Store is 4.0. Majority of<br />
reviews highlighted slowness<br />
and crashing problems with<br />
the latest version of the app.<br />
COMPANY REVIEW<br />
Diamond Bank’s Tech Fest to create opportunities for start-ups<br />
Diamond Bank said it<br />
is organising a Tech<br />
Fest to showcase<br />
technological solutions<br />
for businesses, connect<br />
technology providers with<br />
new markets, provide accessto-market<br />
opportunities for<br />
tech start-ups in Nigeria.<br />
The bank’s CEO Uzoma<br />
Dozie disclosed this at the<br />
launch of the event that is<br />
set for 15 to 16 of May <strong>2018</strong> at<br />
the Landmark Event Center,<br />
Oniru, Lagos.<br />
“Tech Fest for me is a platform<br />
that we can share with<br />
our customers to help them<br />
get the best of technology and<br />
to partner together to run better<br />
businesses,” Uzoma said.<br />
“If there is one thing we have<br />
learned at Diamond, it is that<br />
you cannot do everything on<br />
your own and you need to<br />
collaborate if you are going<br />
to win and be the best at what<br />
you do.”<br />
Diamond is partnering<br />
with MTN, Visa, Microsoft,<br />
NIBSS, Deloitte and Touche,<br />
Interswitch and Beat FM for<br />
the Tech Fest.<br />
Emezino Afiegbe, country<br />
director, Visa, expressed his<br />
excitement at the partnership.<br />
According to him, Visa<br />
will provide support to retail<br />
customers and consumers to<br />
make payment seamlessly,<br />
securely and as quick as possible.<br />
“We believe that if they can<br />
make payment quickly and<br />
safely, we are sure that the<br />
GDP will grow for not just the<br />
country but also prosperity in<br />
the region,” Afiegbe said. “It all<br />
starts here and we are happy<br />
to be part of this journey. We<br />
go into the future.”<br />
Tech Fest is open to all who<br />
want to connect, collaborate<br />
and co-create new ideas that<br />
solve real problem for Nigeria.<br />
“I call it Tech Fest <strong>2018</strong> because<br />
we believe the conversation<br />
will be sustained. Essentially<br />
for us at Interswitch,<br />
it is about curiosity, collaboration,<br />
and co-creation,” Tomi<br />
Ogunlesi, corporate brand<br />
manager, Interswitch said.<br />
“We are happy to work with<br />
Diamond Bank and other<br />
partners to make this happen.”<br />
NEWS<br />
Social video audience in Africa,<br />
ME second-largest in the world<br />
Internet users in Africa and<br />
Middle East account for the<br />
second-largest consumers<br />
of social videos in the world.<br />
The top position goes to people in<br />
Latin America, according to a new<br />
report on Online TV consumption<br />
released by GlobalwebIndex<br />
on Tuesday, 10 <strong>April</strong> <strong>2018</strong>.<br />
The report showed that 67<br />
percent of people in the two<br />
regions have watched a video on<br />
Facebook, Instagram, Twitter or<br />
Snapchat in the month of March.<br />
Social TV consumption has<br />
also seen consistent growth in<br />
three years. In 2015 it grew by 38<br />
percent, 2016 by 51 percent and<br />
56 percent in 2017.<br />
While Latin America led the<br />
charts with 71 percent growth,<br />
Europe took the last position<br />
with 44 percent rise. Asia Pacific<br />
(excluding China) saw an increase<br />
of 56 percent, just behind North<br />
America at 57 percent.<br />
GlobalwebIndex predicts that,<br />
should the trend continue, mainstream<br />
TV could easily transfer<br />
over to the social platforms which<br />
many already use for watching<br />
videos.<br />
“Social TV will bring new<br />
opportunities for marketers –<br />
increased reach, more data and<br />
refined targeting,” the authors of<br />
the report noted.<br />
Generally, online TV audiences<br />
are increasing across the<br />
world further shrinking the monopoly<br />
of broadcast. The advent of<br />
online TV has increased flexibility<br />
in choices of TV people watch.<br />
The report found that almost<br />
90 percent of those who watch<br />
catch-up or TV subscription<br />
services also watch broadcast<br />
TV weekly. The number of people<br />
that prefer broadcast alone<br />
has declined to only 10 percent,<br />
whereas only 3 percent express<br />
preference for online TV only.
16 BUSINESS DAY C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
C002D5556<br />
BUSINESS DAY<br />
21<br />
Fighting Lassa: Five lessons from three special hospitals<br />
managing most cases of Lassa fever in Nigeria<br />
CHIBUIKE ALAGBOSO<br />
Nigeria is currently<br />
witnessing<br />
its largest Lassa<br />
Fever outbreak<br />
in history. Since<br />
the first case of the virus was<br />
identified in a missionary nurse<br />
working in the village of Lassa in<br />
Borno State in 1969, cases have<br />
continued to increase in Nigeria,<br />
mostly in the states of Edo,<br />
Ondo, and Ebonyi. The anxiety<br />
associated with cases has created<br />
panic in many parts of the<br />
country and affected hospital<br />
operations across the country.<br />
In tackling this Lassa fever<br />
outbreak, three specialist hospitals<br />
have emerged and grown<br />
in capacity and expertise to<br />
manage Lassa fever. These hospitals<br />
serve as examples to other<br />
health facilities in the country as<br />
many hospitals in Nigeria still<br />
struggle with managing cases<br />
of Lassa fever, often leading to<br />
panic. While there are plans to<br />
add to the number of specialist<br />
hospitals with the capacity to<br />
effectively manage Lassa fever<br />
cases, these three hospitals have<br />
shown that it is possible to grow<br />
in expertise in the management<br />
of Lassa fever in Nigeria through<br />
the sheer determination of their<br />
leaders, innovation of their staff<br />
and involvement of the entire<br />
co`mmunity.<br />
Irrua Specialist Teaching<br />
Hospital (ISTH), in Edo State,<br />
Federal Medical Center Owo<br />
(FMC), in Ondo State and the<br />
Federal Teaching Hospital in<br />
Abakaliki (FETHA), have been<br />
remarkable for various reasons.<br />
Most importantly, they provide<br />
care for over 80% of all Lassa<br />
fever cases in Nigeria. These<br />
three centres tell an unlikely<br />
story of how three hospitals<br />
in fairly rural locations have<br />
grown to become the frontline<br />
of Nigeria’s efforts to curb Lassa<br />
Fever. They have risen to the<br />
challenge, shown innovation<br />
despite limited resources, sustained<br />
momentum, created and<br />
nurtured new partnerships and<br />
risen to be trail blazers.<br />
The following are five lessons<br />
that can be learned and adapted<br />
from their efforts in controlling<br />
the current Lassa fever outbreak<br />
in the country and in leadership<br />
generally.<br />
Change requires the engagement<br />
of all stakeholders<br />
The Irrua Specialist Teaching<br />
Hospital ISTH is located 110<br />
km from the historical Benin<br />
City, a two-hour drive across<br />
the rainforest terrain. Over the<br />
past ten years, it has nurtured<br />
the development of the Institute<br />
of Lassa Fever Research and<br />
Control (ILFRC), which now<br />
oversees the management of<br />
Lassa fever cases. Before its<br />
establishment, the number of<br />
people that died from Lassa<br />
fever when sporadic outbreaks<br />
of Lassa fever occurred in the<br />
area was quite high, in some<br />
cases more than 70%. This was<br />
primarily due to late presentation,<br />
poor case identification<br />
and non-availability of the drug<br />
Ribavirin, which is effective in<br />
Lassa fever if administered early<br />
enough. The centre started as a<br />
proactive response to address<br />
these issues and over time, the<br />
figures have continued to improve<br />
remarkably, a reduction<br />
of deaths and an accompanying<br />
increase in confidence. While<br />
ISTH certainly cannot claim to<br />
have found all solutions to all<br />
the challenges, they have developed<br />
unique strengths in the<br />
management of Lassa fever and<br />
currently set the trail for other<br />
health facilities in Nigeria. Irrua<br />
Specialist Teaching Hospital<br />
will definitely be at the heart of<br />
any research planned on Lassa<br />
fever and the community will<br />
benefit from the innovation and<br />
determination of this facility.<br />
Purposeful leadership, systems<br />
and structures as drivers<br />
of sustainable change<br />
Speaking recently at a panel<br />
discussion organised by the<br />
Nigeria Centre for Disease Control<br />
(NCDC) in Abuja, CMD of<br />
ISTH, Okogbenin, a Professor,<br />
listed building sustainable systems,<br />
structures, and having<br />
the right people in place as<br />
some of the elements that facilitated<br />
the smooth transition<br />
of leadership from the time of<br />
his predecessors to the current<br />
administration that he leads.<br />
This has helped ensure that new<br />
administrations do not begin<br />
brand new projects to duplicate<br />
previous ones but focus<br />
on scaling up existing systems<br />
and interventions. This obvious<br />
example is a rare characteristic<br />
in our polity in Nigeria, as most<br />
new leaders want to gain recognition<br />
for new projects. In Irrua,<br />
various administrations have<br />
built on the Lassa fever control<br />
systems in place. What began as<br />
a Lassa Fever committee years<br />
ago has now grown to become<br />
the leading institute for Lassa<br />
fever management, detection<br />
and research in Nigeria and<br />
globally.<br />
Collaboration, collaboration,<br />
collaboration<br />
The impact of both local and<br />
international partnerships developed<br />
over time is evident<br />
at both Irrua Specialist Teaching<br />
Hospital, Federal Medical<br />
Centre Owo and the Virology<br />
Centre of the Federal Teaching<br />
Hospital Abakiliki, with partners<br />
contributing significantly<br />
in their areas of strength to help<br />
curb the outbreak. ISTH has a<br />
long-standing partnership with<br />
the Bernhard-Nocht Institute of<br />
Tropical Medicine, Hamburg,<br />
Germany. This has not only led<br />
to contribution of resources for<br />
Lassa fever diagnosis and treatment,<br />
but also capacity building<br />
of local staff who are continuously<br />
trained on global best<br />
practices. A remarkable feat<br />
from this strong collaboration<br />
is the ongoing establishment<br />
of a state-of-the-art molecular<br />
research and diagnostic laboratory<br />
within the Lassa fever<br />
Institute.<br />
Leaving no one behind<br />
Martha Okonofua, Matron at the Lassa fever isolation ward, Irrua Specialist Teaching Hospital, Edo State. Photo credit: Nigeria Health Watch<br />
ANTHONIA OBOKOH<br />
SKG fetes trade partners, introduces Lumal Dispersible Malaria tablets for infants<br />
VICTOR OBAYAGBONA<br />
SKG Pharma Limited,<br />
makers of<br />
a wide range of<br />
pharmaceutical products,<br />
recently had its<br />
trade partner’s conference<br />
in Lagos. The conference<br />
is an annual<br />
event aimed at rewarding<br />
and engaging the<br />
company’s core trade<br />
partners across the<br />
nation on challenges<br />
and profitability in the<br />
pharmaceutical trading<br />
business.<br />
While there is still much that<br />
can be done at the Federal<br />
Teaching Hospital, Abakaliki,<br />
a resident doctor and epidemiologist<br />
working in the hospital<br />
said the hospital has taken proactive<br />
steps following the loss<br />
of some colleagues to Lassa in<br />
January <strong>2018</strong>. These include<br />
mandatory health education of<br />
all employees on Lassa Fever,<br />
revamping of the virology centre,<br />
strengthening the activities<br />
of the Lassa Fever committee,<br />
developing and conspicuously<br />
displaying case management<br />
protocols, effective collaborations<br />
with other treatment<br />
centres, State Ministry of Health and<br />
other state agencies. Ahmed Adeagbo<br />
Liasu, Chief Medical Director of FMC<br />
Owo, praised the commitment of<br />
his staff working on the Lassa Fever<br />
response. “These colleagues are not<br />
just government workers, because<br />
this is not their usual routine. They<br />
volunteered to be part of the Emergency<br />
Operations Centre, and they<br />
work even in the face of panic and<br />
limited resources.”<br />
Taking advantage of the opportunity<br />
in crisis situations<br />
In 2017, Nigeria had only three diagnostic<br />
centres with the capacity<br />
to test for Lassa fever- Lagos Univer-<br />
sity Teaching Hospital (LUTH), ISTH<br />
and the NCDC’s National Reference<br />
Laboratory, Gaduwa. In Abakaliki,<br />
a virology centre had been built but<br />
was yet to be operationalised. By the<br />
end of January <strong>2018</strong>, FETHA had<br />
faced a difficult situation as it had<br />
not only lost members of its host<br />
community to Lassa fever, but health<br />
workers had also been infected. The<br />
hospital had depended on ISTH, a<br />
three-hour drive from Ebonyi for diagnosis<br />
which affected early initiation<br />
of treatment.<br />
In retrospect, <strong>2018</strong> has seen one of<br />
the biggest outbreaks in the history of<br />
Lassa fever epidemics in Nigeria and<br />
globally.<br />
Okey Akpa, managing<br />
director of SKG Pharma<br />
Limited, said: “The essence<br />
of this trade conference is<br />
to encourage and get feedback<br />
on profitability and<br />
challenges faced in the last<br />
year and how we can help<br />
with those challenges in<br />
order to bring about profitability<br />
in business.<br />
It is my conviction this<br />
year will be better than<br />
last year, as we break new<br />
grounds in the industry.”<br />
The most outstanding<br />
HBL TEAM<br />
Cleaning, positive behavioural changes can prevent disease-ridden environments<br />
…as Hypo sensitise Lagos residents on environmental hygiene<br />
As Nigeria battles with<br />
outbreak of meningitis<br />
and Lassa fever, recording<br />
hundreds of deaths this year, a<br />
leading hygiene solution brand,<br />
HYPO has partnered with the<br />
Lagos State Government, to<br />
sensitise the public on household<br />
and environment hygiene<br />
as a preventive measure against<br />
diseases.<br />
The exercise, “Team Up to<br />
Clean Up” was part of activities<br />
to mark this year’s World<br />
Health Day, as residents of Ifelodun<br />
Community in Bariga,<br />
participated in the clean-up<br />
exercise clearing the streets and<br />
drainages in the community to<br />
enhance their wellbeing.<br />
Timothy Arowosegbe, marketing<br />
manager, Hypo said being<br />
the leading brand in the<br />
category of household cleaning.<br />
Sanitation is geared towards<br />
the protection and promotion<br />
of public health which meant<br />
the improvement of the environment<br />
and we recognize our<br />
responsibility to the society<br />
through this, therefore deemed<br />
it right to make contributions<br />
to the betterment of the society.<br />
“The initiative is aimed at<br />
cleaning, sensitising and influencing<br />
positive behavioural<br />
changes towards good hygiene<br />
and sanitation habits in the people<br />
in order to maintain environmental<br />
hygiene so as to prevent<br />
disease-ridden environments.<br />
“Hypo has become a phenomena<br />
household brand and<br />
there are no better ways to give<br />
back to its consumers than<br />
through this initiative of influencing<br />
a positive behaviour for<br />
trade partners from every<br />
state and region of<br />
the country were recognised<br />
and appreciated<br />
with awards plaques<br />
and gifts. The top three<br />
trade partners for 2017<br />
were Onuachu Chijioke<br />
of Jaymor Pharmacy,<br />
Chizoba Okeke of Jonaco<br />
Pharmacy, and<br />
Ignatus Onah of New<br />
Health Pharmacy, respectively.<br />
The event also witnessed<br />
the unveiling of<br />
KEMI AJUMOBI, Editor - kemi@businessdayonline.com<br />
L- R: Marketing Manager, Hypo, Timothy Arowosegbe; Ifelodun CDA Chairman, Bariga Lagos, Babatunde Hakeem Musa; Hypo<br />
Special Appearance Celebrity, Fatiah Williams and Hypo Brand Representative, Aderinto Adetunji during the Hypo Team Up to Clean<br />
Up World Health Day Sanitation and enlightenment exercise in Bariga, Lagos.<br />
hygiene in the residents of communities,”<br />
said Arowosegbe.<br />
He further disclosed that<br />
poor sanitation kills around<br />
5,250,000 children (under five)<br />
every year around the world.<br />
“Sadly, Nigeria is one of<br />
the contributors to the most<br />
number of child deaths due to<br />
poor sanitation disease globally.<br />
Statistics by World Health Organization<br />
(WHO) and UNICEF in<br />
2015, approximately 2.4 billion<br />
people live in poor sanitation<br />
conditions.<br />
“Cleanliness is not a choice;<br />
to stay healthy; cleanliness must<br />
be imbibed as an essential way of<br />
life. If we have a cleaner environment,<br />
there is a good chance that<br />
most of the avoidable diseases<br />
tormenting us like malaria, typhoid,<br />
dysentery and Lassa fever<br />
would be far away and this can<br />
the latest product from<br />
the stable of SKG Pharma:<br />
Lumal Dispersible<br />
Malaria Tablets. Specifically<br />
formulated to<br />
address the treatment<br />
needs of children within<br />
the age group of 0-5.<br />
Lumal is pleasant tasting<br />
disperses easily in<br />
small amount of water<br />
and has the accurate<br />
dosage of 20/120ml.<br />
Marketing manager,<br />
SKG Pharma Limited,<br />
Victoria Okon, while<br />
only be achieved through individual<br />
responsibility to manage<br />
the waste generate on a daily<br />
basis by disposing them the right<br />
way,” said Arowosegbe.<br />
Also speaking at the event,<br />
Babatunde Musa, Ifelodun local<br />
Council Development Area<br />
(LCDA) Bariga Chairman, explained<br />
that the decision to partner<br />
with Hypo was to collaborate<br />
with a health inclined brand that<br />
has the wellbeing of the community<br />
as their number one desire<br />
through the realisation of a clean<br />
and healthy nation.<br />
“We believe that Hypo has<br />
started with the introduction<br />
of affordable bleach for all and<br />
also affirmed that this would<br />
definitely not be the last partnership<br />
between the company and<br />
the community,” he said.<br />
The clean-up exercise led<br />
presenting the new<br />
product, said, “For a<br />
while there has been<br />
a dearth in acquiring<br />
and administering the<br />
accurate malaria drug<br />
for infants in this part<br />
of the world. Malaria<br />
tablets are forcefully<br />
given to kids because<br />
of the unpleasant taste.<br />
This has the most unsatisfactory<br />
result as most<br />
times, the dosage is not<br />
right and children will<br />
naturally spill it out of<br />
ANTHONIA OBOKOH, ANI MICHAEL, Reporters I David Ogar, Graphics<br />
by popular Nollywood actress<br />
Fathia Williams gained huge<br />
participation by immediate residents<br />
as everyone joined hands<br />
using Hypo products to clear<br />
the gutters with unprecedented<br />
enthusiasm.<br />
While appealing to parents,<br />
women and guardians as a<br />
mother, Fathia places an emphasis<br />
on the importance of<br />
healthy living through good<br />
public health practices that<br />
influences and impact on the<br />
physical environment and sanitation<br />
of the community.<br />
Hypo, a division of Tolaram<br />
Africa Enterprises Ltd provided<br />
clean-up tools such as latex hand<br />
gloves rakes, nose mask, shovels,<br />
stick brushes, bowls, buckets,<br />
brooms, parkers, and sanitary<br />
waste bags and doled out hypo<br />
bleach products to residents.<br />
their mouths.<br />
With Lumal dispersible<br />
malaria tablets,<br />
administration will be<br />
easier, resulting to effective<br />
treatment of the<br />
malaria fever in kids.”<br />
Managing director of<br />
SKG Pharma Limited,<br />
Akpa, urged trade partners<br />
to patronise quality<br />
products made in Nigeria,<br />
as it was one way to<br />
create job opportunities<br />
and improve the wellbeing<br />
of the economy.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
Harvard<br />
Business<br />
Review<br />
ManagementDigest<br />
Diversity and Authenticity<br />
BUSINESS DAY<br />
17<br />
Minorities hesitate to share<br />
information about themselves<br />
at work. That’s a problem for<br />
everyone.<br />
When Marcus joined a<br />
leading international<br />
bank right out of college,<br />
he believed that success<br />
would come from delivering solid<br />
numbers. But despite earning<br />
the best performance ratings in<br />
his group, he kept getting passed<br />
over for promotion. One day he<br />
worked up the nerve to ask his<br />
boss why. “You are really good at<br />
your job, but the problem is that<br />
the partners feel they don’t really<br />
know you,” his manager told him.<br />
Marcus acknowledged the criticism.<br />
“I was afraid to open up,” he<br />
says. So he worked to overcome<br />
that fear. He began talking more<br />
openly about his life outside the<br />
office — a key to building relationships.<br />
“Once I did that, things<br />
started to turn around,” he says.<br />
Today Marcus is a managing<br />
partner.<br />
Nothing in that series of<br />
events makes it obvious that Marcus<br />
is African American. He is,<br />
and in our experience (backed<br />
up by our research), his ethnicity<br />
played a role in his discomfort<br />
with “opening up” at work. Just<br />
like Marcus, many other minority<br />
members fail to understand<br />
that their career mobility can be<br />
affected by their colleagues’ feelings<br />
of familiarity or closeness<br />
with them. And even for those<br />
who do understand this, building<br />
workplace relationships across<br />
racial boundaries can be difficult.<br />
Decades’ worth of studies<br />
have shown that similarity attracts<br />
— a phenomenon known<br />
as homophily. Our research<br />
focuses on a specific aspect of<br />
this: That being one’s true self,<br />
disclosing elements of one’s personal<br />
life and forming social connections<br />
are easier within one’s<br />
own group than they are across a<br />
demographic boundary such as<br />
one’s racial background. This is<br />
crucial to keep in mind as companies<br />
aspire to become more<br />
diverse. Simply hiring members<br />
of a minority group won’t ensure<br />
that they feel comfortable<br />
or equipped to build the relationships<br />
necessary for advancement.<br />
Social events can create a<br />
strain<br />
Out-of-the-office social events<br />
are an important venue for<br />
building relationships with colleagues.<br />
We surveyed more than<br />
300 employees from many racial<br />
backgrounds — half of them employed<br />
full-time in a wide variety<br />
of industries, half of them MBA<br />
students — about their participation<br />
in such events. They reported<br />
engaging in three distinct kinds of<br />
work-related social activities: (1)<br />
official company events, which<br />
are typically organized by the human<br />
resources department and<br />
open to all employees; (2) informal<br />
get-togethers orchestrated by<br />
small groups of staffers; (3) professional<br />
development activities.<br />
The problem is not that minorities<br />
fail to show up for such outings.<br />
In fact, our research reveals<br />
that their attendance rates are<br />
similar to those of other demographic<br />
groups. However, in our<br />
surveys, minorities are more likely<br />
than others to report attending<br />
out of a sense of obligation or a<br />
fear of negative career consequences<br />
if they don’t appear.<br />
One reason these gatherings<br />
fail to help minorities bond with<br />
co-workers is the difficulty people<br />
have making small talk across<br />
racial lines.<br />
In a second set of studies<br />
aimed at understanding the obstacles<br />
to self-disclosure, we<br />
surveyed more than 300 young<br />
African-American, Hispanic and<br />
other racial-minority professionals<br />
who were seeking admittance<br />
to an elite MBA program.<br />
Asked how likely they would be<br />
to disclose personal information<br />
to either a white or an African-<br />
American co-worker at a company<br />
social event, these highly<br />
educated people reported that<br />
they’d be more uncomfortable<br />
opening up to a white co-worker<br />
than to a black one, especially if<br />
they felt their work performance<br />
was average (as opposed to high).<br />
Their responses reflected fear<br />
that personal information highlighting<br />
their race (termed statusconfirming<br />
disclosure) might reinforce<br />
the stereotypes that can<br />
undermine performance reviews<br />
and prevent progress toward<br />
leadership roles.<br />
Strategies to reduce the<br />
stress<br />
Organizations that hope to<br />
increase diversity and promote<br />
the careers of racial minorities<br />
can benefit from being aware<br />
of these challenges, and taking<br />
steps to make employees from<br />
varied demographic groups feel<br />
comfortable engaging with one<br />
another. So how can we ensure<br />
that racial minorities and majority<br />
members do feel that way,<br />
both socially and professionally?<br />
Drawing on the research of others,<br />
we suggest several strategies<br />
that may help.<br />
STRUCTURE. First, recognize<br />
the role that structure can play<br />
in easing the discomfort created<br />
by free-form socializing. Instead<br />
of the typical cocktail party, consider<br />
a different approach. Some<br />
companies use formal icebreaker<br />
games that create orderliness<br />
and purpose, reducing that need<br />
to navigate — just as structured<br />
speed-dating events can make<br />
it less stressful to meet many<br />
people quickly. Remember that<br />
no matter how diverse the work<br />
group, all its members have one<br />
thing in common: the work. That<br />
means events that celebrate a win<br />
or otherwise highlight the collective<br />
work itself will help group<br />
members relate more easily.<br />
LEARNING. Pay attention to<br />
diversity research showing the<br />
advantages of adopting a learning<br />
orientation: Organizations<br />
and individuals benefit when<br />
exposed to differences. Although<br />
this orientation is typically established<br />
at the organizational level,<br />
modeled and reinforced by leaders,<br />
individuals can speak and act<br />
in ways that mirror it.<br />
MENTORSHIP. Organizations<br />
should recognize that racial<br />
boundaries can be a real impediment<br />
to socializing, and that the<br />
impediment isn’t going to disappear<br />
overnight. They might consider<br />
creating a buddy system of<br />
informal mentorship, in which<br />
more-experienced employees<br />
help facilitate social relationships<br />
for new hires, particularly mi-<br />
norities who may feel marginalized<br />
in the organization. Assigning<br />
coaches, mentors or sponsors<br />
levels the playing field and helps<br />
people connect across differences.<br />
The role should also involve<br />
feedback.<br />
COLOR BLINDNESS is not<br />
an effective strategy for dealing<br />
with racial differences in the<br />
workplace. Rather, our research<br />
suggests that acknowledging<br />
and highlighting such differences,<br />
along with the related<br />
challenges, can go a long way<br />
toward kindling relationships.<br />
People don’t need to be “best<br />
friends” to work effectively together,<br />
but friendships tend<br />
to create happier workers and<br />
more effective teams. Bonding<br />
around the work itself is powerful,<br />
especially for those who<br />
are collaborating across racial<br />
boundaries. But over time,<br />
deeper relationships depend on<br />
people’s opening up about their<br />
personal lives. For that to happen,<br />
colleagues must be intentional<br />
about getting out of their<br />
comfort zones and connecting<br />
with people who are different.<br />
That may feel like a risk, but it’s<br />
one worth taking.<br />
(By Katherine W. Phillips<br />
is the Paul Calello professor<br />
of leadership and ethics and<br />
the senior vice dean at the Columbia<br />
Business School. Her<br />
research focuses on the areas of<br />
diversity, stereotyping, status,<br />
identity management, information<br />
sharing, minority influence,<br />
decision making and performance<br />
in work groups. Tracy L.<br />
Dumas is an associate professor<br />
of management and human resources<br />
at the Ohio State University’s<br />
Fisher College of Business.<br />
Her research primarily considers<br />
how employees’ personal, nonwork<br />
related roles and identities<br />
shape their experiences in the<br />
workplace.<br />
Nancy P. Rothbard is the David<br />
Pottruck professor of management<br />
at the Wharton School,<br />
University of Pennsylvania.)<br />
2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
18 BUSINESS DAY
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
BUSINESS DAY<br />
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Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
BUSINESS DAY Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
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BUSINESS DAY<br />
C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong>
22<br />
BUSINESS DAY<br />
COMPANIES<br />
& MARKETS<br />
Company news analysis and insight<br />
C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
FBNInsurance maintains<br />
strong performance with<br />
37% growth in PBT<br />
Pg. 23<br />
These charts validate CCNN’s stock rally<br />
…Profit hits five year high of N3.22bn<br />
BALA AUGIE<br />
The Cement Company<br />
of Northern Nigeria<br />
(CCNN) Plc’s profit<br />
after tax stood at N3.22<br />
billion as at December<br />
2017, representing a 106.50 percent<br />
surge from the N1.56 billion<br />
recorded five years ago.<br />
Revenue followed the same<br />
growth trajectory, hitting N19.58<br />
billion in December 2017. This represented<br />
a 29.83 percent increase<br />
from the N15.31 billion recorded<br />
in December 20<strong>13</strong>.<br />
The company’s shares have<br />
gained 71.31 percent since January<br />
2, 2015, to close at N17.80 percent<br />
at close of trading day on Wednesday<br />
<strong>April</strong> 6, <strong>2018</strong>.<br />
The relative peace in the northern<br />
part of the country and low<br />
competition where the company<br />
supplies cement were major drivers<br />
of utilisation rates for the company.<br />
The cement maker is efficient in<br />
deploying shareholders’ resources<br />
in generating higher profit as net<br />
profit margins hit 16.25 percent<br />
in the period under review, a 0.60<br />
point increase from 10.23 percent<br />
recorded five years ago.<br />
CCNN’s energy mix has yielded<br />
fruit as cost of sales ratio fell to<br />
61.25 percent in the period under<br />
review, from 69.25 percent reported<br />
in December 2016.<br />
This means the company has<br />
spent less to produce each unit of<br />
product.<br />
A price increase across products<br />
that helped to outdo the rise in<br />
per tonne production underpinned<br />
margins. CCNN is lowly geared,<br />
which means it is not beleaguered<br />
by debt as debt-to-equity ratio<br />
stood at <strong>13</strong> percent as at Decem-<br />
ber 2017, as against five percent<br />
recorded in December 20<strong>13</strong>.<br />
With the positive economic<br />
outlook and government plans to<br />
spend on infrastructure, cement<br />
makers’ sales volume could get a<br />
boost.<br />
The International Monetary<br />
Fund (IMF) has projected that<br />
Nigeria’s economy will grow by 2.1<br />
percent in <strong>2018</strong>.<br />
The forecast which represents<br />
0.2 percent from the 1.9 percent<br />
projected in October 2017.<br />
President Muhammadu Buhari<br />
has presented a record budget of<br />
N8.60 trillion to the National Assembly<br />
for <strong>2018</strong>.<br />
Out of the total budget figure,<br />
N2.4 trillion has been earmarked<br />
for capital spending.<br />
Nigeria has infrastructure deficit<br />
of $2 trillion, according to the Africa<br />
Finance Corporation.<br />
The 17 million housing deficit is<br />
a low hanging fruit for cement makers<br />
to grow sales volume.<br />
“We estimate that an additional<br />
two million housing units by 2020e<br />
from the public sector alone (as<br />
highlighted in the economic recovery<br />
plan), will unlock about<br />
20-24 million tonnes (mt) of cement<br />
over <strong>2018</strong>e-2020e,” said analysts at<br />
RMBNS, in a recent report on Nigeria’s<br />
cement industry.<br />
Fidelity Bank flags off digital banking awareness campaign<br />
Hope Moses-Ashike<br />
Fidelity Bank Plc on Monday<br />
flagged off a Digital<br />
Banking Awareness Campaign<br />
Week, as part of<br />
concerted efforts to make financial<br />
services easy and accessible to its<br />
customers.<br />
Organised by the Bank’s South-<br />
West Directorate, the week-long<br />
campaign aptly dubbed “Go Digital”<br />
seeks to create awareness on<br />
its electronic banking products<br />
and services.<br />
Speaking at the opening ceremony<br />
at the Corporate Head<br />
Office in Lagos, Regional Bank<br />
Head (RBH), Ikeja, Ken Opara said<br />
the campaign is aimed primarily<br />
at sensitizing customers on the<br />
attendant benefits of using the<br />
Bank’s e-products.<br />
He harped on the need for<br />
banks to leverage digital technologies<br />
and platforms to provide<br />
greater convenient banking solutions<br />
for customers and according<br />
to him one bank that is the<br />
vanguard of this is Fidelity Bank.<br />
“The Bank has continued to invest<br />
significant resources on technology<br />
thus enabling it to digitize<br />
and offer easy to use e-banking<br />
products and services” he said.<br />
Some of the flagship products and<br />
services the staff would be creating<br />
awareness for include the recently<br />
upgraded Fidelity Online Banking<br />
platform. “The new look and<br />
more advanced and user-friendly<br />
online banking platform comes<br />
with additional functionalities<br />
thus making financial service<br />
activities easier and faster for an<br />
unmatched customer experience”,<br />
Opara stated.<br />
Motivated by the desire to<br />
continuously improve customer<br />
experience on its services, Fidelity<br />
Bank recently introduced a<br />
personalized self-service feedback<br />
system on its flagship Instant<br />
Banking Service *770#. With all of<br />
these significant strides in technology<br />
deployment, Opara noted<br />
that there was a need to enlighten<br />
the Bank’s customers on some of<br />
its latest offerings.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
FBNInsurance maintains strong<br />
performance with 37% growth in PBT<br />
COMPANIES & MARKETS<br />
Business Event<br />
BUSINESS DAY 23<br />
Modestus Anaesoronye<br />
FBNInsurance, fast<br />
growing life insurance<br />
firm has released<br />
its financial<br />
report for the year<br />
ended 2017 with strong growth<br />
in key indices.<br />
Figures obtained from<br />
the published financial<br />
statements as approved<br />
by the National Insurance<br />
Commission show that profit<br />
before tax (PBT) grew by 37<br />
percent from N3.11 billion in<br />
2016 to N4.26 billion in 2017,<br />
while the gross premium<br />
written (GPW) grew from<br />
N9.9 billion in 2016 to N19.6<br />
billion in 2017, a massive 98<br />
percent increase.<br />
While commenting on<br />
the financial statement, Val<br />
Ojumah, managing director/<br />
CEO, FBNInsurance, credited<br />
the strong performance to a<br />
combination of factors including<br />
continued penetration<br />
of the retail insurance space,<br />
strong cost optimisation culture,<br />
consistent and efficient<br />
service delivery across available<br />
touch point, exploitation<br />
of new service channels, disciplined<br />
risk management, and<br />
a well-motivated staff.<br />
“Our overall performance<br />
once again reinforces<br />
our strong earning capacity<br />
and robust capital base,<br />
which have put us in better<br />
stead to accommodate and<br />
sustain future growth. Our<br />
Return on Equity (RoE) rose<br />
to 34 percent, up from 29<br />
percent in 2016 and also<br />
achieved a post-tax return<br />
on assets (RoA )of 6 percent,”<br />
he concluded.<br />
It will be recalled that FB-<br />
NInsurance was last year recognised<br />
–for the third time<br />
in four years- as the Best Life<br />
Insurer in Nigeria by World<br />
Finance, while Sanlam Emerging<br />
Markets (SEM) awarded<br />
her the prestigious Nations<br />
Cup for a glowing performance<br />
all round amongst<br />
SEM companies.<br />
At the home front, the<br />
beat association of Insurance<br />
journalists, National Association<br />
of Insurance and Pension<br />
Correspondents (NAIPCO),<br />
awarded the company as the<br />
fastest growing insurance<br />
company in Nigeria.<br />
An FBNHoldings company<br />
associated with the Sanlam<br />
Group SA, FBNInsurance was<br />
incorporated in 2010 to transact<br />
life insurance business in<br />
Nigeria and currently operates<br />
out of 42 sales outlets and three<br />
branches nationwide.<br />
L-R: Olumayowa Ogunwemimo, managing director, FSDH Asset Management Limited; Motadeni<br />
Balogun, chairman of the meeting/ head, collective investment scheme, United Capital Group;<br />
Aidevo Odu-Thomas, company secretary, FSDH Asset Management Limited; and Ahmed Nakwada,<br />
manager, Securities and Exchange Commission ;at the extraordinary general meeting of FSDH<br />
Coral Funds managed by FSDH Asset Management Limited in Lagos. Pic by Pius Okeosisi<br />
Nigerian Breweries 100% packaging materials sourced in Nigeria-MD<br />
Nigerian Breweries<br />
Plc says that 100 per<br />
cent of its packaging<br />
materials are<br />
sourced locally to boost the<br />
nation’s growth and development.<br />
Jordi Borrut Bel, the company’s<br />
Managing Director, said<br />
this at its pre-Annual General<br />
Meeting (AGM) media conference<br />
in Lagos on Wednesday.<br />
Bel said that some of the<br />
company’s packaging materials<br />
sourced locally were bottles,<br />
cans, corks and labels, among<br />
others.<br />
He said that 47 per cent of<br />
agricultural raw materials such<br />
as sorghum, cassava were now<br />
sourced within Nigeria.<br />
The managing director said<br />
that the company was committed<br />
to the 60 per cent direct<br />
target of locally sourced raw<br />
materials by 2020.<br />
On the stable growth of the<br />
company in spite of economic<br />
headwinds, Bel said that its<br />
ability to cut down on operational<br />
cost made the company<br />
to remain afloat.<br />
He said the company deployed<br />
cost leadership to fuel<br />
the fight for market leadership<br />
as well as used it to drive scale<br />
for cost leadership.<br />
According to him, the sustenance<br />
will enable the company<br />
to emerge the best cost<br />
performing breweries in Africa.<br />
Reviewing the beverage industry<br />
in 2017 financial year, he<br />
said the industry had changed<br />
significantly over the last three<br />
years.<br />
Bel said that with signs of<br />
improvements in the economy,<br />
2017 bear market was relatively<br />
stable.<br />
He said that the company<br />
invested about 710,000 Euros<br />
in social projects across the<br />
country in 2017 financial year.<br />
The managing director,<br />
however, said that operating<br />
environment would remain<br />
challenging in <strong>2018</strong>, noting<br />
that the brewer was well<br />
placed with its leadership<br />
brands as well as people to<br />
weather the storm.<br />
Bel said that the company<br />
for the financial year ended<br />
Dec. 31, 2017 recommended<br />
a dividend of N33 billion for<br />
its shareholders for the 2017<br />
financial year, a 100 per cent<br />
pay-out ratio.<br />
He said that the company<br />
had given out 100 per cent<br />
dividend payout as part of its<br />
dividend policy which was consistent<br />
with the firm’s robust<br />
balance sheet.<br />
L-R: Ore Onile-Ere, On Air Personality (OAP), Uchenna Agbo (Co-Founder,Cloud Cover, Afua<br />
Osei; Co-Founder, She Leads Africa and Eleanor Potter,Chief Operating Officer, Cloud Cover,at<br />
the Women In Business conference which held at Browns cafe, Victoria Island, Lagos<br />
Confusion trails NSE’s lifting, reversal of technical suspension<br />
The Nigerian Stock<br />
Exchange (NSE) on<br />
Wednesday lifted the<br />
technical suspension<br />
placed on Oando shares with<br />
the Securities and Exchange<br />
Commission (SEC), ordering a<br />
reversal three hours later.<br />
The News Agency of Nigeria<br />
(NAN) reports that confusion<br />
trailed the action of the<br />
exchange and SEC with market<br />
operators and shareholders<br />
calling on the Federal Government<br />
to intervene in the<br />
matter.<br />
NAN reports that the exchange,<br />
in a letter entitled:<br />
“Notification of Lifting of Technical<br />
Suspension on the Shares<br />
of Oando,’’ said SEC on <strong>April</strong><br />
9, directed it to lift the suspension.<br />
“We refer to our bulletins<br />
of 18, 20 and 23 October, 2017<br />
regarding the directive of the<br />
SEC to the Nigerian Stock<br />
Exchange to place the shares<br />
of Oando Plc on Technical<br />
Suspension.<br />
“Please be informed that<br />
on <strong>April</strong> 9, <strong>2018</strong>, the commission<br />
directed the Exchange to<br />
lift the technical suspension<br />
placed on the shares of Oando.<br />
“On receipt of the commission’s<br />
directive, the Exchange<br />
put the process in place to<br />
lift the technical suspension,<br />
including testing on its trading<br />
system.<br />
“Further to the commission’s<br />
directive of <strong>April</strong> 9,<br />
please be advised that effective<br />
today, <strong>April</strong> 11, <strong>2018</strong>, the<br />
Exchange lifted the technical<br />
suspension placed on the<br />
shares of Oando.<br />
“Consequently, there is<br />
no longer any impediment<br />
to price movement in Oando<br />
shares.<br />
“The above is for your information<br />
and records update<br />
please,” said the Exchange.<br />
However, three hours after<br />
lifting the technical suspension<br />
on Oando’s shares, the<br />
suspension was reversed by<br />
the NSE.<br />
All efforts by NAN to get<br />
the reasons for the reversal<br />
proved abortive as the Corporate<br />
Communications Officers<br />
of both the NSE and SEC<br />
declined to pick their calls or<br />
respond to inquiries.<br />
Commenting on the issue,<br />
Mr Ambrose Omordion, the<br />
Chief Operating Officer, InvestData<br />
Ltd. described both<br />
regulators’ actions as unprofessional.<br />
Omordion said SEC and<br />
NSE needed to correct the<br />
impression on time in order<br />
not to dampen investors’ confidence.<br />
L-R: Iniobong Udoh, Chaplain Victory Chapel, University of Uyo and President, Association of<br />
Nigerian University Chaplains, ANUC; Toyin Ogundipe, vice chancellor, University of Lagos; Azuka<br />
Ogbolumani, host and chaplain, Chapel of Christ Our Light, University of Lagos; Taiwo Adeniyi,<br />
chairman, Chapel Committee, and Taiwo Ipaye, registrar, University of Lagos, at the opening<br />
ceremony of the 20th anniversary celebration of the Association of Nigerian University Chaplains<br />
in Lagos which held at the Unilag Chapel<br />
L-R: Johnson Odesola, assistant general overseer of Redeemed Christian Church Of God, Admin.<br />
And Personnel; Ajibola Ponnle, registrar/CEO Of Chartered Institute of Personnel Management of<br />
Nigeria (CIPM); Olurotimi Adegborioye, director, Admin and Personnel, RCCG; Chidima Obiejesi,<br />
Lagos State Chairperson of CIPM, and Udom Inoyo, president/chairman of Council, CIPM, during<br />
the Inauguration of RCCG Personnel Practitional Consultative Association PPCA, @ Redemption<br />
Camp.
24<br />
Muhammed Uba, Controller of Customs, Federal Operation Unit, Zone A, (l), showing to newsmen some of the 6,003 smuggled bags of<br />
foreign rice, equivalent to 10 trailer loads, which were intercepted by the unit in Ikeja, Lagos State. NAN<br />
Oyo to establish gemstone centre<br />
AKINREMI FEYISIPO, Ibadan<br />
Oyo State is establishing<br />
an international gemstone<br />
processing centre and market<br />
where precious stones<br />
would be processed and<br />
polished before shipment to international<br />
markets.<br />
Governor Abiola Ajimobi disclosed<br />
this at a two-day strategic engagement<br />
and sensitisation workshop for stakeholders<br />
in the southwest geo-political<br />
zone, held in Ibadan, Wednesday. He<br />
said with large deposits of high quality<br />
marble and other solid minerals<br />
like aquamarine, tantalite, tourmaline,<br />
granite, talc and the recently discovered<br />
gold deposits in Oyo, the state was establishing<br />
the centre to market the mineral<br />
resources.<br />
Represented by Gbade Ojo, his chief of<br />
staff, Ajimobi said the state was exploring<br />
the benefits in agriculture and solid min-<br />
C’ River CP assures investors of security in CFTZ<br />
MIKE ABANG, Calabar<br />
BUSINESS DAY<br />
CITYFile<br />
The Commissioner of Police (CP)<br />
in charge of Cross River State<br />
Command, Hatiz Mohammed<br />
Inuwa, has assured investors in<br />
the Calabar Free Trade Zone (CFTZ) of<br />
adequate security.<br />
Inuwa gave the assurance when he led<br />
a delegation of top police officers to the<br />
trade zone.<br />
The police boss said the zone which<br />
harbours foreign and local investors, plays<br />
a vital role in stimulating the economy of<br />
the state in particular and the country in<br />
general, saying every was being done to<br />
guarantee the lives of the investors and<br />
their investments.<br />
While calling on the zone management<br />
to corporate with security agencies, he<br />
... decries shortage of police personnel in state<br />
charged officers and men of the command<br />
to ensure regular surveillance in the zone.<br />
He, however, decried inadequate police<br />
personnel in the state and sought the collaboration<br />
of other security agencies in the<br />
deployment of personnel to sensitive areas<br />
to combat crime.<br />
Godwin Ekpe, head, Calabar Free trade<br />
Zone (CFTZ), who represented the managing<br />
director of Nigerian Export Processing<br />
Zones Authority (NEPZA), Emmanuel<br />
Jime, expressed delight for the visit.<br />
EKpe disclosed that the zone has so far<br />
licensed about 77 companies out of which<br />
42 are operational with over 11,000 skilled<br />
and unskilled workers engaged by these<br />
companies.<br />
“The free trade zone scheme has attracted<br />
over 11,000 direct and indirect<br />
employments from inception date and still<br />
erals to wean itself from dependence on<br />
the dwindling oil revenue coming from<br />
the centre.<br />
This, he said, informed the decision<br />
by his administration to establish the<br />
Mineral Development Agency, which<br />
is responsible for the creation of wealth<br />
from mineral resources for the benefit<br />
of the citizens and to attract local and<br />
foreign investors.<br />
Ajimobi said that the government’s<br />
decision to invest in the solid minerals<br />
development sector had caused an increase<br />
in the state’s internally generated<br />
revenue, as well as the collection of <strong>13</strong><br />
per cent derivation from the mineral<br />
resources from the Federal Government.<br />
He said that the effort had also resulted<br />
in the discovery of gold deposits, which<br />
had earned the state a license for the exploration<br />
of talc and gold in Kajola local<br />
government area of the state<br />
He explained that the Solid Minerals<br />
Development Fund (SMDF) was a strategic<br />
intervention by the Federal Government,<br />
capable of propelling the country’s<br />
economic growth.<br />
He, however, advocated the assemblage<br />
of stakeholders in the industry<br />
to brainstorm and map out strategies<br />
towards attaining the objectives of the<br />
SMDF, which was established in 2017 to<br />
administer accruing funds meant for solid<br />
minerals development.<br />
The governor said: “There is no debating<br />
the fact that for Nigeria to achieve her<br />
desired growth, particularly in the solid<br />
minerals sub-sector, there is need for an<br />
intervention like the SMFD.<br />
The governor therefore appealed to the<br />
SMDF to use the opportunity of the workshop<br />
to further enlighten and empower<br />
those in the mining sector by exposing<br />
them to the necessary steps that would<br />
facilitate access to the fund.<br />
Fatima Shinkafi, the executive secretary,<br />
SMDF, said that the workshop was<br />
aimed at exposing the stakeholders to the<br />
opportunities and benefits in the mining<br />
sector as an alternative revenue earner.<br />
attracting. Technology transfer and skill<br />
acquisition from Foreign Direct Investment<br />
(FDI) and other companies located<br />
in the zone such as Skyrum International,<br />
M-salah Engineering Agrim International,<br />
Combination Industries, Bao Yao Iron and<br />
Steel Group and General Electric FZE” .<br />
He, however, said that the major challenge<br />
facing the CFTZ Divisional Police<br />
Station was shortage of staff and as a result,<br />
“the personnel are constantly drifted to<br />
other duties in town, considered to be hot<br />
spots of crime.”<br />
We sincerely appeal to the CP to use his<br />
high offices to post more security personnel<br />
to the division for efficient security<br />
coverage.<br />
The CFTZ which was initially known as<br />
Calabar Export Processing Zone (CEPZ)<br />
came into existence in 1992, after the<br />
promulgation of the NEPZ Act No. 63 0f<br />
1992.<br />
Police uncover another<br />
illegal brewery in Lagos<br />
JOSHUA BASSEY<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
The police have uncovered an illegal<br />
brewery at Egbe-Afa in Igbogbo area<br />
of Ikorodu and arrested five suspects<br />
in connection with it. This is coming barely<br />
a week after a similar illegal wine brewery<br />
factory was uncovered in Mushin area of<br />
the state.<br />
Edgal Imohimi, the Commissioner of<br />
Police, in charge of Lagos, who led newsmen<br />
to the scene, said that the suspects would be<br />
subjected to further interrogation to know<br />
where the drinks were bottled and sold.<br />
The illegal brewery was producing<br />
Malt drinks, stout and ethanol which they<br />
pumped into trucks to bottle at another<br />
location.<br />
The CP said that the illegal brewery had<br />
been sealed and samples of the drinks would<br />
be sent to the laboratory for test. He attributed<br />
discovery to the efforts of community<br />
policing and partnership.<br />
According to him, the people of Lagos<br />
are showing increasing confidence in the<br />
police. Imohimi urged residents to know<br />
their neighbours, saying that vigilance is the<br />
only way to have a crime-free society.<br />
“This success story of the police is an evidence<br />
that community policing and partnership<br />
is working in the state. This is an illegal<br />
distillery where malt, stout and ethanol are<br />
being produced in an unhygienic environment<br />
thereby feeding poison to the people.<br />
You will recall that a fake wine factory<br />
was also discovered at Mushin recently. This<br />
is as a result of vigilance. I encourage the<br />
people to do more. This is an information<br />
which should have got to the police earlier,<br />
but I commend the people for sharing this<br />
information with the police.<br />
He said the people must be deeply involved<br />
in crime fighting, adding that “Lagosians<br />
can only give credible information to<br />
the people when they are healthy; so I will<br />
encourage you to say something when you<br />
see something,” he said.<br />
The illegal brewery has more than 1,000<br />
drums of brewed malt and 100 tanks where<br />
the drinks are pumped before supplying<br />
tankers.<br />
A building where operational items of the<br />
suspects were kept was also located close to<br />
the illegal brewery.<br />
Drug abuse: NAFDAC wants parents<br />
to check your children’s bags<br />
The National Drug Law Enforcement<br />
Agency (NDLEA) has challenged<br />
parents and communities to step up<br />
monitoring of youths against drug abuse.<br />
Stella Ngwoke, a director in NDLEA in<br />
charge of Drug Abuse Preventive Education<br />
(DAPE) stated this during a community<br />
awareness campaign on drug abuse<br />
and misuse, in Lagos State, recently. The<br />
campaign was organised by the West African<br />
Postgraduate College of Pharmacists.<br />
Ngwoke spoke on “the role of NDLEA in<br />
combating drug abuse in the country.’’ She<br />
described drugs as any substance, legal<br />
or not, that could transform the central<br />
nervous system and affect the person’s<br />
behaviour or thought.<br />
“Parents need to face the challenges<br />
their children are experiencing as regards<br />
drug abuse by checking their activities.<br />
“Denial of drug abuse by their children<br />
is a problem that must also be faced by<br />
parents if they want this menace to be<br />
eradicated easily.<br />
“Parents should not be too tired to listen<br />
and pay attention to their needs because<br />
once they lose faith in you, they can never<br />
confide in you,’’ the official said.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
Hotels<br />
BUSINESS DAY<br />
25<br />
Looking for a blend of<br />
hospitality, polo…<br />
OBINNA EMELIKE<br />
In 2006, John Campbell,<br />
the ambassador<br />
of the United States<br />
of America to Nigeria,<br />
stated on a DSTV<br />
interview that Fifth Chukker<br />
in Kaduna was the best<br />
recreational facility he had<br />
seen in all of Africa after he<br />
attended the maiden World<br />
Military Polo tournament at<br />
the ranch where the United<br />
States also participated<br />
along with United Kingdom,<br />
South Africa, Egypt,<br />
India and Nigeria, the host<br />
country.<br />
The Abuja diplomatic<br />
community naturally<br />
lapped up the good tidings<br />
and followed in his footsteps,<br />
subsequently making<br />
the Kaduna resort the top<br />
diplomatic and expat haven<br />
in Nigeria in a very short<br />
period. The continuous<br />
stream has also conferred<br />
Fifth Chukker the enviable<br />
status of hosting the largest<br />
gatherings of ambassadors<br />
and diplomats at any one<br />
event outside Abuja. Not<br />
even the very dark days of<br />
Boko Haram could stem<br />
the traffic.<br />
The Fifth Chukker story<br />
began in 2000 when Adamu<br />
Atta, an entrepreneur, legendry<br />
polo promoter and<br />
player, ventured to establish<br />
a private polo facility where<br />
he could stable his rapidly<br />
growing strings of Argentine<br />
horses and practice the<br />
game with his friends. The<br />
gates were to be opened<br />
to the public with periodic<br />
tournaments to entertain<br />
the polo-loving Kaduna<br />
citizens. When Ahmed Makarfi,<br />
then governor of Kaduna<br />
State, accompanied<br />
Atiku Abubakar, then vice<br />
president, to attend one<br />
such polo event in 2004, he<br />
steadfastly encouraged Atta<br />
to upgrade the facility to an<br />
all-purpose resort, which<br />
Kaduna was lacking.<br />
Today, Fifth Chukker is<br />
an upscale lifestyle oasis<br />
of family fun, recreation,<br />
polo and culture spread<br />
across 2000 hectares in the<br />
outskirts of Kaduna, offering<br />
visitors the essentials to<br />
revive their spirit as much<br />
as their body all within easy<br />
reach of the city centre<br />
So far, the resort has 100<br />
rooms, comprising of 3-bedroom<br />
duplexes, 2- bedroom<br />
villas and 1- bedroom lodges.<br />
There are conference<br />
halls for meetings and retreats,<br />
and restaurants for<br />
fine dining. Spas and gyms,<br />
naturally, are in the pipeline.<br />
Last year, Fifth Chukker<br />
kicked off the year- long Kaduna<br />
centenary celebration<br />
with a critically acclaimed<br />
photo exhibition at its newly<br />
minted Kaduna hall conference<br />
and exhibition centre.<br />
Fifth Chukker’s worldclass<br />
Polo and Country club<br />
prides itself on its highly<br />
exquisite facilities. With<br />
three championship pitches<br />
and stabling for 1000<br />
horses, it continues to set<br />
the benchmark for polo in<br />
Africa. Headlined by its two<br />
major polo tournaments,<br />
the club’s polo calendar is<br />
one of the crown jewels in<br />
the Nigerian diary of elite<br />
events, providing a polo<br />
experience comparable to<br />
the most celebrated clubs<br />
around the world.<br />
Beyond polo and facility<br />
convenience, lifestyle<br />
trends at Fifth Chukker are<br />
becoming more active and<br />
dynamic. Participating in<br />
many sports and outdoor<br />
activities provides both an<br />
escape and a relief from<br />
the high-paced and highpressure<br />
work or even home<br />
environment. Families can<br />
relax and share memories,<br />
and introduce the kids to<br />
lots of outdoor experiences<br />
whereas everyone can also<br />
feel refreshed and get close<br />
to nature.<br />
The resort include several<br />
kilometers of walking and<br />
hiking trails that meander<br />
through the savannah and<br />
the edge of a l5- hectare lake<br />
which is perfect for both<br />
motorized and non motorized<br />
water sport. Other recreational<br />
activities available<br />
include camping, cycling,<br />
pottery, quad bike, basket<br />
ball, lawn tennis, football<br />
and swimming. Security<br />
is managed at the highest<br />
level, fostering a sense of<br />
personal safety and freedom<br />
for residents.<br />
Significantly, Atta has<br />
been very proactive when<br />
it comes to corporate social<br />
responsibility and environmental<br />
sustainability.<br />
Because of the enormous<br />
scope of the development,<br />
he has effectively breathed<br />
new life into the rustic communities<br />
that surround Fifth<br />
Chukker through job creation<br />
and local employment<br />
opportunities. This has been<br />
one of the key areas of focus<br />
for him.<br />
Additionally, all Fifth<br />
Chukker polo tournaments<br />
are aligned with CSR projects.<br />
The UNICEF Charity<br />
Shield sponsored by Access<br />
Bank promotes child education<br />
and health while the African<br />
Patrons Cup espouses<br />
breast cancer awareness<br />
with the active endorsement<br />
and patronage of Northern<br />
Nigeria first ladies. “These<br />
charitable initiatives and<br />
community enrichment<br />
programmes are very central<br />
to the mission of Fifth<br />
Chukker’’, Atta reiterated.<br />
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Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
26 BUSINESS DAY<br />
C002D5556<br />
The stage is set for another Runway Jazz<br />
OBINNA EMELIKE<br />
Yes, the stage is truly set<br />
for another superlative<br />
show at this year’s edition<br />
of the annual Runway<br />
Jazz in Lagos.<br />
The show, which is a harmonic<br />
fusion of Jazz, fashion and fine<br />
dining on a single platform, is the<br />
Nigerian celebration of the United<br />
Nations Educational Scientific and<br />
Cultural Organisation’s (UNESCO)<br />
International Jazz Day on <strong>April</strong> 30th<br />
of every year.<br />
For two days, <strong>April</strong> 28-29, <strong>2018</strong>,<br />
lovers of jazz music genre, culture<br />
and fashion aficionados will gather<br />
at Eko Hotel and Suites, Victoria,<br />
Island, Lagos to delight in several<br />
thrilling performances by international,<br />
indigenous jazz artistes, and<br />
fashion models.<br />
Aside celebrating jazz and haute<br />
couture, the two-day event hopes to<br />
further showcase the rich culture of<br />
Lagos State, while featuring master<br />
classes on music and business.<br />
“The UNESCO International Jazz<br />
Day is about celebrating Jazz. It is<br />
about celebrating its root, future and<br />
impact. We want to raise awareness<br />
of the need for intercultural dialogue<br />
and mutual understanding. It is<br />
also about reinforcing international<br />
cooperation and communication<br />
which are the core principles of<br />
UNESCO”, Afolabi Oke, founder,<br />
Runway Jazz and group leader,<br />
Sweet Sound Production, organisers<br />
of the show, said on the rationale for<br />
the celebration of jazz by UNESCO.<br />
In this year’s edition, Oke is<br />
promising jazz with an African<br />
sound, as well as, new edgy fashion<br />
with African touch.<br />
“For us, Runway Jazz is beyond<br />
a show. “It is an experience that<br />
defines the impact of music on<br />
everyday life. It allows us to express<br />
our culture in such a way that we<br />
encourage peace and unity, first<br />
among ourselves as a people and<br />
then between Nigeria and the rest<br />
of the world. It speaks to the minds<br />
of artistes to challenge and channel<br />
their creativity into a great cause”,<br />
Oke explained.<br />
One of the highlights of the 2017<br />
edition of the show was the partnership<br />
of Lagos State government<br />
in the show to commemorate the<br />
Lagos at 50 years celebration. This<br />
year, Runway Jazz is taking another<br />
turn, especially with the partnership<br />
Universal Music Group.<br />
Speaking on the MoU singed<br />
recently between the organisers<br />
and Universal Music Group, Sipho<br />
Dlamini, managing director, Universal<br />
Music, South and Sub-Saharan<br />
African, said it is a huge honour<br />
working with Runway Jazz, adding<br />
that the group is excited to be given<br />
the opportunity to partner with such<br />
a prestigious jazz event.<br />
“We believe this will be the flagship<br />
event in Africa. This year will<br />
be very different. It is a two-day<br />
event; day one will be for the master<br />
class — fashion master class and a<br />
music master class, which will be<br />
hosted by Universal Music Group.<br />
This year, we will be having jazz<br />
aficionado and Grammy award<br />
winner, Gerald Albright; Tiwa<br />
Salvage and Kayode Ajayi, both<br />
Berklee College of Music alumni<br />
taking sessions at the music master<br />
class,” he explained.<br />
Dlamini also stated that Universal<br />
Music as the number one<br />
entertainment company in the<br />
world, is partnering the event on the<br />
principle of the various activities the<br />
group oversee and implement in the<br />
areas and places they operate not<br />
just as a leading record label but<br />
as the number one entertainment<br />
company in the world.<br />
While Lagos State government<br />
has reinstated its commitment to the<br />
event this year, the organisers noted<br />
that Dolapo Osibajo, wife of the Vice<br />
President, will be gracing the event<br />
alongside her Step-Up Initiative that<br />
encourages and supports young<br />
people to use the Nigeria prints to<br />
make bags and shoes.<br />
Aside Gerald Albright, the artistes<br />
line up include; Sweet Sound<br />
as the host band, Tiwa Savage and<br />
other R&B singers as alternative<br />
genre expose, Heavy wind, and Beyond<br />
Vocal, a South African powerful<br />
vocal quintet under the Universal<br />
Music discovery . As well, there will<br />
be stage dance performance by<br />
the Society for Performing Arts in<br />
Nigeria, SPAN and fashion runways<br />
by AvantGarde.<br />
“In the fashion Masterclass, notable<br />
names like Oke Maduewesi,<br />
MD, Zaron Cosmetics; Opeyemi<br />
Oke, MD, Studio 54; and Ibidunni<br />
Ighodalo, MD, AvantGarde, will<br />
engage participants and it will be<br />
headed by Her Excellency, Dolapo<br />
Osinbajo. Also, in the musical Masterclass,<br />
Gerald Albright will lead,<br />
alongside Sipho Dlamini, Kayode<br />
Ajayi and Tiwa Savage”. Oke said.<br />
He also noted that there are expectations<br />
that the next year’s edition<br />
will be held in Lagos with the Lagos<br />
State Governor’s support. According<br />
to him, the partnership is coming at<br />
the right time being that as a country,<br />
Nigeria is hoping to bid to host the<br />
global jazz festival by 2020.<br />
However, the organisers expressed<br />
optimism that this year’s<br />
jazz festival, which will be dedicated<br />
to the memory of Hugh Ramapolo<br />
Masekela, an African pride, famous<br />
South African Jazz exponent, will be<br />
a worthwhile experience.<br />
Lagos Beauty Summit to hold in July<br />
Concerted efforts to<br />
streamline the Nigeria<br />
beauty business by the<br />
industry players, in order<br />
to make the venture more lucrative<br />
and profitable, will come to<br />
fore when stakeholders gather for a<br />
summit from July 23-24, <strong>2018</strong>.<br />
Tagged: “Lagos Beauty Summit,<br />
<strong>2018</strong>”, the maiden event, which has<br />
the theme: ‘’The Power of More’’,<br />
will address the prevailing challenges<br />
facing consumers, retail<br />
and forces that are changing the<br />
industry. Over 250 beauty enthusiasts<br />
will be present at the summit<br />
as more than 20 speakers will share<br />
their perspective on: how consumer<br />
dynamics of wanting more<br />
is resetting business strategy, the<br />
power of collaboration and how<br />
retailers are reinventing the shopping<br />
experience.<br />
Activities to feature at the summit<br />
include: industry legend roundtable,<br />
tea time with beauty business<br />
moguls, trade shows, award session<br />
and performances by top music<br />
stars.<br />
The industry round-table would<br />
be a gathering of the industry best<br />
and highly respected names to discuss<br />
the industry challenges in the<br />
presence of prospective investors.<br />
The tea time with beauty business<br />
moguls is a platform where beauty<br />
enthusiasts and expert will gather<br />
for mentorship and the session will<br />
be facilitated by business moguls.<br />
Big brand names in beauty business<br />
such as Tara, Zara, among others<br />
will grace the summit.<br />
The award session, will feature<br />
industry experts who have distinguished<br />
themselves over the years<br />
with meritorious services to the<br />
industry will be celebrated and<br />
presented a ‘Lifetime achievement’<br />
plaque. As well, star performance<br />
by top names in the music industry<br />
will spice up the summit.<br />
Speaking at a media parley heralding<br />
the summit, which held recently<br />
in Lagos, Tope Sadi, said that<br />
having been in the beauty industry<br />
for a decade with experience, she<br />
has the obligation to leave legacies<br />
that would turn-around the<br />
industry for the players and young<br />
people who want to make a career<br />
to market its potential to both national<br />
and international investors”,<br />
she explained.<br />
Also speaking at the media parley,<br />
Yomi Olaniwun, CEO, BB Buzz,<br />
a PR/digital marketing agency,<br />
which is partnering in the summit,<br />
said the event aims to introduce<br />
international brands of cosmetics<br />
into the Nigerian market, while proin<br />
beauty business.<br />
“I have been in the beauty industry<br />
for ten years now. Looking at<br />
the industry, I feel that something<br />
needs to be done to turn it around<br />
economically to make it lucrative<br />
and profitable for players and<br />
young people who want to make<br />
a career in beauty business. The<br />
beauty business needs promotions<br />
viding an opportunity for the young<br />
people in beauty business to showcase<br />
their potentials and learn from<br />
the established brands like Zara,<br />
Zaron among others.<br />
He noted that there are so many<br />
successful people in the beauty industry<br />
whose efforts have not been<br />
spotted and rewarded in terms of<br />
recognition of competence, hence<br />
the summit will spot and give them<br />
the recognition.<br />
Jude Ugboaja, a member of the<br />
summit planning committee, and a<br />
business development consultant,<br />
said the summit wants, ‘’people<br />
from the international market to<br />
have a voice in the Nigerian market<br />
and network with the local consumers<br />
in order to expand their<br />
business frontiers.<br />
Ugbaja further explained that<br />
the summit would allow international<br />
beauty products come<br />
into the country and also get local<br />
consumers meet with them<br />
to exchange ideas, adding that at<br />
the end of the event, participants<br />
would go home with big business<br />
opportunities.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
C002D5556<br />
BUSINESS DAY<br />
27<br />
Show Review – Fela and the Kalakuta Queens,<br />
bringing the Nigerian story to the world<br />
If you are a lover of stag<br />
plays and drama, then<br />
you would totally love<br />
the epic Fela and the<br />
Kalakuta Queens show<br />
brought to you by Terrakulture.<br />
Although I had heard<br />
a lot about the show from<br />
those who attended last year,<br />
there briefing did no justice<br />
to seeing it in person. I must<br />
confess that I totally enjoyed<br />
every bit of the show and I<br />
am writing about it to encourage<br />
people to also make<br />
out time to go see this wonderful<br />
show, which will be<br />
taking place every weekend<br />
in <strong>April</strong> at Terrakulture. The<br />
shows have 2 showing times<br />
daily and we went on to see<br />
the one at 3pm, they were<br />
so organized and timely and<br />
they started a few minutes<br />
past 3. The show was on till<br />
about 6pm and we had a 10<br />
minutes break in between<br />
the 3 hours journey of amazing<br />
dance steps and musicals.<br />
The Fela and the Kalakuta<br />
Queen Show was totally<br />
amazing, it was directed by<br />
Bolanle Austine Peters and<br />
produced by Joseph Umoibom.<br />
I must confess that this<br />
show was a well thought out<br />
and planned show from start<br />
to finish, there was absolutely<br />
no dull moment, and<br />
when it was about coming to<br />
an end, I really didn’t want to<br />
leave again, it felt like I could<br />
go on for another show and<br />
still not get bored. There was<br />
a perfect blend between the<br />
cast and the roles played,<br />
each one fitted in perfectly,<br />
at point almost looking so<br />
real. The young man who<br />
played the role of “Fela”<br />
himself was totally amazing<br />
and on point, Patrick Diabua<br />
he proved to us that he had<br />
done his due diligence thoroughly<br />
and studied Fela for<br />
a very long time, his walking<br />
steps, tone of voice, intonation,<br />
dance steps and attitude<br />
reminded everyone so<br />
much about our legendary<br />
man “Fela Anikulapo Ransome<br />
Kuti”. The concubines<br />
and back up artist, he later<br />
turned to his wives were all<br />
amazing and awesome, they<br />
played each role perfectly<br />
well, making the stage play<br />
so real, it felt like they were<br />
leaving the life again. There<br />
was also one lovely act, you<br />
need to look out for “Malika”<br />
the foreign lady who came to<br />
visit the shrine and later also<br />
got converted as one of his<br />
latest wives. She was totally<br />
amazing during the show,<br />
and everyone wanted to see<br />
her on stage as she carried<br />
all the African features of a<br />
beautiful Nigerian Girl.<br />
Before the play started<br />
we were given the rules of<br />
the show, in order to avoid<br />
distracting the actors with<br />
our cameras and phones,<br />
the lights were dimed and<br />
the show began. First there<br />
was an introduction of all<br />
the acts that would appear<br />
on stage, the introduction<br />
was beautiful to usher in the<br />
Cast: Patrick Diabua, Laitan Adeniji Fela, Joseph Umoibom,<br />
Inna Eriza Funmilayo, Uru Eke Alake, Osas Ighodaro<br />
Ajibade, Bunmi Olunloyo, Titilayo Itiku, Dolapo<br />
Phillips etc<br />
Executive Director: Bolanle Austine Peters<br />
Associate Producer: Joseph Umoibom<br />
Script: Kesiena C Obue, Bolanle Austine Peters, Cornelius<br />
Best Onyekaba, Kunle Dada<br />
Choreographer: Paolo Siaiano, Yeni Kuti, Justine Ezirim<br />
Lightening and Set Designer: Yemi Lights<br />
Sound Designer: Emmanuel Otunjinri<br />
Animation/Motion Graphic/Set Design: Ice Nweke<br />
Social Media/ Communication Consultant: Ayo Rotimi<br />
Stage Manager: Ikenna Jude Okpala<br />
Production Coordinator: Sola Oyebade<br />
Production Accountant: Fatai Omotunde, Temitope<br />
Sanya<br />
Costume Designer: TIFE, Kareema Mak,<br />
Wardrobe Designer: Juliana Dede, Itunu Bamidele<br />
Casting: 2hrs 30mins<br />
show, at that point I knew we<br />
were in for a very good show.<br />
They took us through all the<br />
heat songs of “Fela” from<br />
Democracy “Demonstration<br />
of Craze” till they ended<br />
up with the best of them all,<br />
“Water no get enemy” which<br />
is still a legendary song till<br />
date. The show was awesome<br />
because there was no<br />
hinge or break between any<br />
song, there was a smooth sail<br />
between each song to the<br />
other, making it so difficult<br />
to know that it was a stage<br />
play, it looked so much like<br />
a movie, the quick transition<br />
and twist of the stage<br />
and the background screen<br />
made it so hard to remember<br />
that it was just a show. There<br />
was this perfect movement<br />
and blend between the acts,<br />
as they sang, danced and<br />
played their acting role at the<br />
same time. At some points<br />
they had to jump, sing, cry,<br />
roll and still not miss their<br />
steps at the same time. The<br />
synchronization between all<br />
the dancers was unbelievably<br />
awesome.<br />
Although I had heard that<br />
the shows were awesome like<br />
the last one in Eko hotel last<br />
year, with some foreign acts,<br />
this one was totally different<br />
as they all Nigerian dancers,<br />
producers, directors, makeup<br />
artists and players, it was<br />
a show by us strictly and for<br />
us. What made it even better<br />
was the drama in between<br />
every song, making it a musical<br />
dance drama, which<br />
should actually be taken to<br />
every stage around the world<br />
to tell our African Legendary<br />
story. One major thing<br />
that blew my mind was that<br />
the play depicted the honest<br />
truth of what things were like<br />
then, and even till this age<br />
and time. It looked like nothing<br />
had changed the same<br />
old problems of those days<br />
were even worse now, the<br />
same leaders who ruled us<br />
then, are still the same rulers<br />
in power and the same<br />
mistakes we made then,<br />
we are still making now. A<br />
sad case of the rich getting<br />
richer, while the poor getting<br />
poorer, a heart breaking facts<br />
of small thieves who steal at<br />
the market menial items going<br />
to jails for years and the<br />
great politician who stole<br />
with pens, being hailed on<br />
the streets with no punishment<br />
or accusations? Watching<br />
this play just opened my<br />
eyes to the hidden truths<br />
that have being buried for<br />
years and are still buried,<br />
one question lingered in my<br />
heart all through and as I left<br />
that play, who would actually<br />
safe us from this black crisis<br />
we have found our self in,<br />
who will redeem Africa from<br />
this reoccurring problems,<br />
we have face for decades<br />
now since independence?<br />
This will be a question for all<br />
of us to look into, and work to<br />
fight for a brighter future for<br />
the next generation, or else<br />
there would be no legacy left<br />
of us to pass on to them.<br />
Feel free to review any<br />
movie of your choice in not<br />
more than 200 words, please<br />
send us a mail to linda@<br />
businessdayonline.com and<br />
stand a chance to win a free<br />
movie ticket.<br />
Linda Ochugbua<br />
@lindaochugbua<br />
Business Etiquette<br />
with Janet Adetu<br />
Let us Rise<br />
for a Toast<br />
‘Toasting Etiquette’<br />
The toast at a function<br />
is commonly<br />
practiced today,<br />
to celebrate a person,<br />
a couple or<br />
an event. At times this can be<br />
skipped only because either<br />
it was accidentally omitted<br />
or because the celebrants did<br />
not know the procedure for<br />
toasting, in other words they<br />
did not have the correct savvy<br />
skills to carry it out. The whole<br />
process of toasting is used to<br />
add glamour to an occasion.<br />
During my training sessions<br />
when I ask participants<br />
to practice proposing a toast,<br />
I notice that many are lost for<br />
words. They simply have no<br />
idea what is the right thing<br />
to say, whether the toast is at<br />
the beginning or at the end of<br />
the event. Interestingly even<br />
though this is round about a<br />
five minute exercise, there is<br />
a lot of protocol that goes into<br />
it. Enjoy your read.<br />
Toast Protocol Facts<br />
Are you the honored guest/<br />
celebrant:<br />
As the celebrant or guest of<br />
honor, you should always remain<br />
seated when celebrated.<br />
You cannot really celebrate<br />
yourself. The same applies to<br />
newlyweds at their wedding,<br />
they both remain seated.<br />
Which glass, which drink:<br />
When it is time to give a<br />
toast, the presenter makes a<br />
speech then suddenly says,<br />
“Please lift your glasses and<br />
let’s toast to the occasion”.<br />
Ideally champagne is the<br />
preferred drink for toasting<br />
served inside a champagne<br />
glass. This is not to say that<br />
the toast cannot be done with<br />
something else. For those<br />
who do not drink alcohol or<br />
champagne, today you may<br />
fill your glasses with juice,<br />
soda or at times we have<br />
seen water.<br />
Most people are never<br />
prepared for a toast so may<br />
not have no drink on hand;<br />
they tend to raise an empty<br />
glass. A toast should include a<br />
glass filled with liquid content<br />
before raising to complete the<br />
procedure.<br />
When and where:<br />
Interestingly a toast is not only<br />
done at the end of an event or<br />
occasion. There is an opening<br />
toast and a closing toast depending<br />
on the circumstance<br />
as well as program.<br />
The opening toast is all<br />
about welcoming guests,<br />
cknowledging their presence<br />
and wishing them a time of<br />
fun and friendship.<br />
The closing toast is to<br />
serenade the celebrant with<br />
good wishes for the future.<br />
The opening toast is usually<br />
announced during the<br />
cocktail session right before<br />
the guest proceeds to dinner.<br />
The closing toast is towards<br />
the end of the program while<br />
the guests are still seated,<br />
after they have eaten dinner.<br />
Timing:<br />
The key to toasting is in the<br />
timing ensuring that it is<br />
presented at the right time.<br />
If it is an opening toast, most<br />
guests will be standing for the<br />
cocktail with a few seated.<br />
When the cocktail has commenced<br />
for about one hour<br />
or so, it is time to present the<br />
welcome toast. For the closing<br />
toast, this is usually before<br />
the vote of thanks. The host of<br />
the event will choose who will<br />
give the toast in honor of the<br />
celebrant.<br />
Essentially open your meal<br />
with a toast to wet appetites<br />
and close the event with a<br />
toast to acknowledge the<br />
guest of honor. The opening<br />
toast should not be more than<br />
3 minutes, while a closing<br />
toast is slightly longer.<br />
What to say:<br />
Your toast should not be a<br />
roast that is too long. You may<br />
have great words to say about<br />
the celebrant or occasion but<br />
make them meaningful, the<br />
toast should be kept short<br />
and simple.<br />
If you have not presented<br />
a toast before, practice a few<br />
lines or exactly what you wish<br />
to say and commit to memory;<br />
Depending on the occasion,<br />
if it is a formal or a<br />
business setting keep it busi-<br />
ness like. Say that thing that<br />
creates a bit of humor that<br />
is authentic. Remember it is<br />
not about you but the guest<br />
of honor celebrant. Keep<br />
your audience authentic at<br />
once and make what you say<br />
worth listening to.<br />
Click, Clonk, or raise in the<br />
Air:<br />
Today it is not important<br />
or necessary to clink your<br />
glasses especially if you are<br />
far from the celebrant. We<br />
encourage raising of glasses<br />
to toast, this is known as an<br />
air kiss.<br />
The importance of the<br />
toast is to have the right eye<br />
contact while lifting the glass.<br />
When it comes to clinking<br />
glasses, this should be done<br />
with caution. Clink glasses<br />
with care to avoid breaking<br />
accidents. I have seen this<br />
happen before.<br />
Avoid stretching over the<br />
table to toast. The clink involves<br />
touching f main body<br />
of the glass not the base, some<br />
people clink the rim to rim.<br />
Toast Protocol<br />
1) Commence your occasion<br />
with a welcome or<br />
opening toast.<br />
2) Round up your occasion<br />
with a closing toast with<br />
all the guest standing.<br />
3) The guest of honor or<br />
celebrant reciprocate the<br />
toast to the host<br />
4) The guest of honor<br />
does not sip but smiles and<br />
says thank you.<br />
5) All other guest responds<br />
to the toast by clinking<br />
glasses still standing up.<br />
6) Drinking is followed<br />
by sipping the content in<br />
the glass.<br />
7) All guest are seated.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
28 BUSINESS DAY<br />
FEATURE<br />
Promoting infrastructure maintenance<br />
in Nigeria through ‘ownership culture’<br />
Poorly maintained infrastructure depresses the quality of lives and contributes to anti-social<br />
behaviour that threatens the socio-political environment. Eliezer Workplace Management, a<br />
leading facility management firm in Africa aims to change this, writes ENDURANCE OKAFOR.<br />
It was a Saturday evening and<br />
hundreds of Lagosians are attending<br />
a wedding reception<br />
at the Tafawa Balewa Square.<br />
It was a gathering of the bourgeoisie<br />
mixed with the proletariat.<br />
There was much merry, eating and<br />
drinking. It is said that nothing is<br />
free but there were free food and<br />
drinks in this occasion to go round.<br />
The only problem was that there<br />
were no toilets anywhere in the<br />
complex where these Lagosians who<br />
had so much to eat and drink would<br />
go. Due to lack of a comfort station,<br />
the guests turned the complex into<br />
a huge public toilet.<br />
The putrid smell polluted the<br />
environment and made it uncomfortable<br />
for anyone hanging around<br />
for long period of time.<br />
This reflects how Nigerians treat<br />
public facilities and infrastructure.<br />
In many countries of the world,<br />
including South Africa, citizens<br />
imbibe what is generally known as<br />
‘ownership culture’ in infrastructure<br />
maintenance and management.<br />
Ownership culture in this context<br />
alludes to a situation where citizens<br />
and government treat public infrastructure<br />
and facilities exactly the<br />
same way they handle their private<br />
property.<br />
Few years ago in South Africa, a<br />
national fought another compatriot<br />
for throwing a plastic can outside a<br />
public bus. The attitude of South Africans<br />
to public infrastructure is that<br />
it is theirs and they must guard it.<br />
However, this is not the case with<br />
Nigerians, especially in Lagos.<br />
According to experts, ownership<br />
culture is beneficial not just to the<br />
citizens but also to the government.<br />
“To participate effectively and<br />
actively in management and maintenance<br />
of infrastructures, we need<br />
to take ownership of those in our<br />
communities,” David Korede, the<br />
Executive Director of Eliezer Workplace<br />
Management, told Business-<br />
Day by mail.<br />
Apart from making cities attractive<br />
to visitors, it reduces the<br />
number of communicable diseases<br />
in the country and elongates the<br />
people’s lifespan.<br />
Experts say Nigeria needs to<br />
spend three to four percent of its<br />
gross domestic product on infrastructure<br />
building and maintenance.<br />
Much of the expenditure<br />
goes to maintaining existing infrastructure<br />
stock.<br />
Ownership culture helps to reduce<br />
maintenance spend on the<br />
part of the governments at the<br />
three tiers of government, enabling<br />
to concentrate on developing new<br />
infrastructure.<br />
Experts in the facility management<br />
sector, such as Eliezer Workplace<br />
Management recommend<br />
the concept of ownership culture,<br />
as ownership does not only have to<br />
do with rights, liberties and powers<br />
but also carries with it corresponding<br />
burdens in the nature of duties,<br />
liabilities and disabilities which<br />
prescribe and regulate how an<br />
owner should utilise his property or<br />
infrastructure for their own benefit<br />
and also that of others.<br />
The exponential growth of the<br />
population in Lagos State brings<br />
with it a unique challenge of inadequate<br />
infrastructure and a maintenance<br />
plan that is grossly insufficient<br />
for the sheer number of people<br />
who utilise public infrastructure.<br />
A large flock of people migrate<br />
to Lagos on a daily basis in the<br />
hopes of getting opportunities and<br />
scarce white collar jobs. Akinwumi<br />
Ambode, Governor of Lagos state at<br />
a public function said that on average,<br />
about 123,000 people migrate<br />
to Lagos daily from different parts<br />
of Nigeria.<br />
If half that number truly migrates<br />
to Lagos every day then there is truly<br />
magnificent nightmare in terms of<br />
infrastructural sufficiency in relations<br />
to the population.<br />
Meanwhile, the Lagos State<br />
Waste Management disclosed that<br />
the centre of excellence generates<br />
between 12,000 metric tons to<br />
<strong>13</strong>,000 metric tons of waste daily.<br />
This is generated by an estimated<br />
20 million population which are<br />
said to be inhabitants of the most<br />
populous city in Africa.<br />
Lagos population in 1871 stood<br />
at 28,000 and grew to about 252,000<br />
in the 1970’s, today, Lagos population<br />
is one of the highest around<br />
the world, and it almost same as the<br />
population of Ghana.<br />
Considering these numbers,<br />
it is necessary therefore to have<br />
appropriate Assets and Facilities<br />
Management plan in the state, as<br />
effectively managed facilities in line<br />
with modern ways of organizing and<br />
structuring maintenance, will bring<br />
about the tendency for increase in<br />
life expectancy and sustainability<br />
of values.<br />
Maintenance of public properties<br />
is described as the combination<br />
of any continuous actions carried<br />
out to retain properties and infrastructure<br />
or restore it to an acceptable<br />
condition. Maintenance culture<br />
is concerned with the planning and<br />
control of construction resources to<br />
ensure that they are necessary take<br />
care of or repaired and renewal is<br />
also carried out with maximum efficiency<br />
and economy to enhance<br />
the quality of the property.<br />
Recent survey by Eliezer Workplace<br />
Management shows that<br />
adoption of ownership concept will<br />
have a positive effect on growth,<br />
economic stability and reduce cost<br />
of maintenance. Individual attitude,<br />
lack of proper maintenance culture<br />
has major influence on the present<br />
condition of the existing infrastructures.<br />
The idea of ‘Ownership Culture’<br />
To participate<br />
effectively<br />
and actively in<br />
management and<br />
maintenance of<br />
infrastructures,<br />
we need to take<br />
ownership of those<br />
in our communities<br />
is encompassing; it involves accepting<br />
responsibility, personal<br />
accountability, creativity and innovation<br />
especially using ownership<br />
judgment and making independent<br />
but learned decisions in promoting<br />
growth and development.<br />
This sounds simple and straightforward,<br />
but taking ownership<br />
actually has a cultural dimension.<br />
In some cultures, it is expected and<br />
often times rewarded when people<br />
take ownership of tasks while it is<br />
punished and ridiculed in some<br />
cultures.<br />
In Nigeria, the culture does not<br />
support or reward independent<br />
and innovative thinking especially<br />
when the risks of failure are<br />
considered too high or when the<br />
consequences of failure may be too<br />
steep to bear.<br />
This leads therefore to the premise<br />
of adopting ownership culture to<br />
management of Lagos State Assets,<br />
Infrastructure & Environment and<br />
also to the country at large.<br />
The Lagos-based, leading facility<br />
Management, Eliezer Workplace<br />
Management, introduced an initiative<br />
tagged “My Lagos, Our Lagos,”<br />
this was derived from finding a balance<br />
between Policies that government<br />
can create, to how every day<br />
Lagosian engage the policies and its<br />
interaction with the infrastructures<br />
and environment.<br />
Maintenance culture in Nigeria is<br />
one of the lowest around the world,<br />
especially, in principal towns and<br />
cities like Lagos where the majority<br />
of public properties and infrastructures<br />
are located.<br />
In the rural areas, the story is<br />
different and pleasant to hear. The<br />
traditional practice of communal<br />
clearing of community owned<br />
places such as market playground<br />
is in almost every village and in<br />
private homes. Also, it is customary<br />
to refurbish building interiors with<br />
mixtures of cow dung or natural red<br />
clay. The end result is attractive and<br />
totally indigenous.<br />
While on the other hand, low<br />
priority is accorded to property<br />
management in the urban areas<br />
which leads to neglect of public infrastructures.<br />
There are also little or<br />
no maintenance policies and therefore<br />
no such culture exists. Neglect<br />
of maintenance has accumulated<br />
consequences in rapid increase in<br />
the deterioration of the fabric and<br />
finishes of public infrastructure,<br />
accompanied by a harmful effect<br />
on the contents users (the residents<br />
and beneficiaries of the infrastructures).<br />
Due to poor maintenance culture<br />
on one hand and partly due<br />
to the absence of an appropriate<br />
benchmark, the life of these public<br />
infrastructural development do not<br />
last before reaching the total obsolescence<br />
state.<br />
When this happens, it becomes<br />
a big problem for both the government<br />
and the inhabitants of<br />
the state, and as such there is the<br />
need for both parties to treat such<br />
infrastructure as though they were<br />
their private investment, in order<br />
to get the best of the development<br />
through proper maintenance policy<br />
and habits.<br />
Knowing that only knowledgeable<br />
citizens make informed decision,<br />
Eliezer Workplace Management,<br />
director, Korede said “the<br />
company is committed to taking<br />
the practice of Facilities Management<br />
in Africa to International<br />
best practice through education,<br />
technology, and information using<br />
Nigeria as a pilot.”<br />
All Lagosian who works and reside<br />
in Lagos will eventually arrive at<br />
a crucial intersection, also with the<br />
government involvement in both<br />
maintenance and infrastructural<br />
development, this initiative believes<br />
at some point, the residents of Lagos<br />
state will turn right and buy-in to<br />
attitude of ownership management<br />
style regardless of status, tribe gender<br />
and ethnicity.<br />
Turning this direction means<br />
that every resident will be ready to<br />
work in same direction and put a<br />
stop into improper utilization and<br />
management of state infrastructure<br />
or facilities.<br />
The Lagos State and Nigeria<br />
government by extension are also<br />
to play their part by engaging its citizenry<br />
on ownership concept awareness<br />
across the length and breadth<br />
of the state by establishing a social<br />
group to re-engineer the society.<br />
Sensitization of the populace to<br />
achieving positive waste management<br />
culture towards proper waste<br />
handling and disposal cannot be<br />
overemphasized.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong> C002D5556 BUSINESS DAY<br />
29<br />
INTERVIEW<br />
‘At CWG, our business model puts<br />
us ahead of competition’<br />
Technology no doubt has redefined the business environment and service delivery to customers. Adewale Adeyipo, vice president, Sales<br />
& Marketing, CWG in this interview with Modestus Anaesoronye explains how businesses are riding on technology for value creation.<br />
How will you assess the Nigerian<br />
business environment?<br />
Business on its own<br />
cannot function without<br />
the environment,<br />
and that is why there<br />
is interdependence<br />
between them. Business activities<br />
can only do well in favorable and<br />
viable environment. Oftentimes,<br />
such environment is influenced<br />
by major government policies,<br />
and the availability of infrastructure<br />
in any society largely affects<br />
the ease of doing business in that<br />
environment. Nigeria’s business<br />
environment in the recent years<br />
hasn’t been the best for an average<br />
entrepreneur and SMEs. It<br />
is characterized with fear and so<br />
much uncertainty. Fear on its own<br />
is a feeling induced by perceived<br />
danger, and this has a way of<br />
affecting business decisions because<br />
you have little or no power<br />
to control the consequence. One<br />
however can create measures and<br />
processes to navigate business<br />
dealings around it of course with<br />
some level of caution. Uncertainty<br />
is extremely bad for business, and<br />
so leaves you with no boundaries.<br />
Businesses don’t like to be in such<br />
situation where possible outcomes<br />
(good or bad) will be difficult to<br />
predict.<br />
Business environment like<br />
the social, political, cultural and<br />
economic factors greatly influence<br />
the level of FDI, and Nigeria is not<br />
immune to this. In Nigeria, several<br />
factors affect the advancement<br />
of businesses, and these factors<br />
make Nigeria’s business environment<br />
unfriendly and unsafe for<br />
investment.<br />
How will you assess Nigeria’s<br />
competitive brands and marketing<br />
landscape over the years?<br />
The unpredictable consumer<br />
behavior has largely influenced<br />
and also contributed positively<br />
to the remarkable yet competitive<br />
brand positioning we have<br />
witnessed in recent years. The<br />
production of goods and services<br />
has shifted from what we think it’s<br />
appropriate and ideal to produce,<br />
to understanding the target audience<br />
and the entire ecosystems of<br />
such products and services. The<br />
intelligence and quality of data<br />
required is huge and must be reliable.<br />
The population in Nigeria<br />
will continue to be strength for the<br />
country and the same has become<br />
the major driving force for major<br />
multinationals coming into the<br />
country despite the unconducive<br />
business environment. However,<br />
due to the lack of economic growth<br />
(increase in purchasing power) of<br />
the lower class and medium class,<br />
most of these organisations are recycling<br />
the same customers especially<br />
for premium goods. This has<br />
resulted to the highly competitive<br />
Adewale Adeyipo<br />
environment for major brands.<br />
The key asks are: What does the<br />
consumer want, how best can we<br />
produce it and offer the same,<br />
what competitors does best and<br />
what our brand is great at?. Major<br />
concentration will be on what the<br />
brand is great at. Again, the use of<br />
social media has also become a<br />
perfect marketing tool for building<br />
brand awareness.<br />
What is the future of the business<br />
and why do you think your<br />
services will continue to remain<br />
relevant?<br />
We are enabling growth using<br />
technology. We are a platform<br />
service provider leveraging technology<br />
to enable growth. The truth<br />
is, technology is vital to the success<br />
of almost every company in every<br />
industry. Whether it’s healthcare,<br />
retail, or any other industry, they<br />
all need technology for various<br />
reasons. From optimisation, automation,<br />
cost savings, creating<br />
new revenue channel etc. The<br />
good news is that technology is<br />
perceived to be a ‘problem solver’<br />
hence the need for it is on the rise.<br />
Share with us your core values<br />
and operational philosophy<br />
that drives the operation of CWG<br />
‘Can do Spirit’, despite challenges<br />
in the environment?<br />
Customer first, that is why you<br />
will find CWG CEO in a customer’s<br />
office for support issues, that is the<br />
core of our operati<br />
At CWG, how do you intend to<br />
deploy creativity to further boost<br />
Returns on Investment (ROI)?<br />
We understand the business<br />
of technology, where technology<br />
by itself is a means to an end. We<br />
are simplifying the application<br />
of technology to enable growth.<br />
Technology is an enabler but can<br />
also be a problem and overwhelming<br />
if not properly managed.<br />
Organisations tend to forget and<br />
neglect their core operations;<br />
battling with the same business<br />
enabler they have deployed to<br />
enhance growth.<br />
At CWG Plc, we are deploying<br />
solutions to address these challenges.<br />
We are focusing on the<br />
expected outcome for these organisations<br />
taking away the complexity<br />
of IT deployment. A bank is<br />
deploying ATMs to enhance its operations,<br />
discourage the inflow of<br />
customers in the bank branches;<br />
but the challenges encountered<br />
deploying and maintaining these<br />
ATMs is more than the problem<br />
they were trying to address in the<br />
first place. From I.T staff cost, huge<br />
capex budget, service availability,<br />
staying abreast of technology solutions,<br />
new inventions/ roadmaps<br />
etc. can be quite burdensome.<br />
Today we are deploying ATM<br />
as a service to the financial institutions,<br />
where the expected end<br />
result which is customer’s accessibility<br />
to financial services is the<br />
focus. Absorbing the financial<br />
institutions of all the IT concerns<br />
is one of our key roles. Financial<br />
institutions can focus on their<br />
core operations, while we enable<br />
growth deploying solution in line<br />
with their business objectives. We<br />
create solutions for SMEs to grow<br />
their business with less concern<br />
on the technology that drive the<br />
business. Today we have tailored<br />
ERP platforms for various sectors<br />
of the economy. Our solution<br />
enables SMEs to keep track of<br />
their business accounts, record<br />
sales, create and send invoices<br />
to customers, track expenditures<br />
and generate reports, which ultimately<br />
can be used to make better<br />
business decisions. All these are<br />
done without the complexity of<br />
deploying a huge IT infrastructure<br />
or IT budget. Same for Insurance,<br />
Cooperatives, Health, Transportation.<br />
We are playing in all the<br />
major segments of the economy<br />
enabling business and co-creating<br />
with relevant stakeholders.<br />
Access competition in the<br />
market, and share with us your<br />
unique selling proposition?<br />
Competition is about creativity.<br />
Your brilliant innovation is as<br />
good and valid as the minute it was<br />
launched. Anyone can create an<br />
add-on from where you stopped or<br />
create a new product or services to<br />
address the gaps in your product.<br />
The answer to this is that you have<br />
to keep thinking. Getting better at<br />
what you do. To stay ahead always<br />
requires a lot of brain power and<br />
intuitive ability. In CWG, we leverage<br />
on the knowledge and trust<br />
earned over the years from our<br />
‘over 150 corporate clients in all<br />
sectors of the economy. We have<br />
transited from the ‘what question’<br />
to the ‘why’. Understanding the<br />
customers’ business and providing<br />
the solution that answers the<br />
why? We say ‘Why do you need<br />
this technology/ solution and not<br />
necessarily what technology do<br />
you need’. With this in mind, we<br />
have been able to create value and<br />
longtime strategic partners.<br />
In the area of growth projection,<br />
where do you see CWG in<br />
the next 5years?<br />
CWG will be one of the leading<br />
service platform provides out<br />
of Africa in 4-5 years. We are well<br />
positioned for that. The company<br />
has repositioned itself, reengineered<br />
its operations, people and<br />
process to harness the opportunities<br />
before us. After 25 years<br />
of doing business and providing<br />
services to major corporations<br />
in Nigeria and west-Africa, being<br />
strategic partners to major<br />
multinationals, you can be sure<br />
we understand the market trend<br />
and we are responding appropriately.<br />
We understand the new<br />
definition of customer service<br />
as regards deployment of IT and<br />
value creation. We understand<br />
the season we are in; going by<br />
our knowledge of the Nigeria IT<br />
world and supported by events in<br />
other similar economy like ours;<br />
we made a paradigm shift using<br />
the learning’s of 25 years which is<br />
a lot of sacrifice for the company,<br />
so that we can remain relevant for<br />
a long time. CWG will be around<br />
for a long time creating incredible<br />
and innovative services in and<br />
out of Africa.<br />
How do you maximise this<br />
target position to take the brand<br />
to the next level in <strong>2018</strong>?<br />
Today, in CWG, I’m responsible<br />
for sales, marketing and<br />
product management. Our people<br />
are the first major asset we have<br />
and we will continue to leverage<br />
on this.<br />
We have created and still creating<br />
a lot of campaigns and<br />
road shows on brand awareness<br />
especially on some of our products<br />
and services. We have some<br />
unique services/ products that will<br />
position the organisation as one<br />
of the top minds in innovation in<br />
this country. Our smart metering<br />
solution, our ERP platform (built<br />
purposely for this market), our<br />
solution on mobile financial services<br />
to mention a few. We have a<br />
dedicated team in product management<br />
that keep abreast of happenings<br />
in the technology world<br />
and advise the organisation on the<br />
next big things to focus on. We do<br />
a detailed market survey and we<br />
prioritize these activities based on<br />
market needs/ demands, trends<br />
and identified gaps especially in<br />
our immediate world.<br />
Manpower development is<br />
key to the growth of every organisation,<br />
what is your approach to<br />
training?<br />
Training is one of the basic<br />
policies in the organisation. Going<br />
by the customer base and the rate<br />
in which we churn out solutions,<br />
we have to continuously train our<br />
resources. Today, we have other<br />
30 high end software developers<br />
and testers that cannot be static in<br />
their knowledge. We have over 400<br />
outsourced enterprise technical<br />
resources/ consultants working<br />
with major multinationals in Nigeria<br />
and West Africa; we support a<br />
large percentage of ATMs across 36<br />
states in Nigeria, managing, supporting<br />
and doing customisation<br />
and over 10 commercial banks on<br />
their core banking application. All<br />
these could have only been done<br />
through intensive trainings and<br />
retraining of our staff.<br />
We also leverage our partnerships<br />
with major technology<br />
providers and OEMs across the<br />
globe to enhance the skills sets<br />
of our employees. We have structured<br />
and exchange programs for<br />
skills acquisition and knowledge<br />
transfer. To support our business<br />
and customers, we started a<br />
training academy in 2010, where<br />
we train and engage fresh graduates<br />
in our training facilities. We<br />
provide classroom and practical<br />
knowledge on all our solutions for<br />
3 months. The most qualified ones<br />
after the 3 months program are<br />
often employed by the company.<br />
These are measures we are taking<br />
to ensure adequate empowerment<br />
for our people.
30 BUSINESS DAY C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
BUSINESS SOUTH-SOUTH<br />
COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST<br />
Cross River CP assures of adequate<br />
security to investors in CFTZ<br />
…as free zone faces power hiccups<br />
BEN EGUZOZIE & MIKE ABANG,<br />
Calabar<br />
The Cross River State Commissioner<br />
of Police, Hafiz<br />
Mohammed Inuwa, has<br />
assured investor in the<br />
Calabar Free Trade Zone<br />
(CFTZ) of adequate security in the<br />
Zone. Inuwa gave the assurance<br />
recently in Calabar when he led a<br />
delegation of top Police officers to the<br />
premier free trade zone.<br />
The Police Commissioner, who<br />
stressed the need for adequate security<br />
at the free trade zone at all times,<br />
noted that the zone plays a vital role<br />
in stimulating economic activities<br />
with the presence of foreign and local<br />
investors.<br />
Meanwhile, the CFTZ faces grave<br />
electricity supply to the enterprises<br />
operating there. The zone was to have<br />
largely benefitted from the Calabar<br />
Integrated Power Plant (CIPP), sited<br />
at Odukpani. But that has yet to happen.<br />
In 2016, a Senate committee on<br />
Trade and Investments led by Fetimat<br />
Raji-Rasaki, took an oversight function<br />
visit to the free zone, where the<br />
general manager, Business Development<br />
of Nigerian Export Processing<br />
Zones Authority (NEPZA), Terhembe<br />
David Nongo gave an assurance of<br />
building alternative source of power<br />
for the CFTZ.<br />
At a stakeholders’ meeting Nongo,<br />
who represented the managing<br />
director of NEPZA to receive the<br />
Senate committee members to CFTZ,<br />
informed that the greatest problem<br />
which the management of CFTZ was<br />
grappling with was that of power supply,<br />
which was to have been captured<br />
in the 2017 Federal Government budget.<br />
But that was not addressed. This<br />
year, <strong>2018</strong> budget was yet to passed<br />
SABY ELEMBA, Owerri<br />
An Agro-economist and<br />
governorship aspirant<br />
in Imo State for 2019<br />
governorship election,<br />
Jude Ejike Njoku has said that the<br />
massive smuggling and the unrestrained<br />
importation of crude<br />
palm oil (CPO) would only be<br />
stopped if the Federal Government<br />
puts measures and programmes<br />
in place to increase the<br />
production of palm oil locally.<br />
Njoku, a professor of Agricultural<br />
Economics and former Vice<br />
Chancellor of Federal University<br />
of Technology (FUT), Owerri,<br />
said the annual smuggling and<br />
the unrestrained importation of<br />
crude palm oil of about 400,000<br />
metric tons (MT) was to fill the<br />
annual supply gap of about<br />
into law by the National Assembly.<br />
According to the NEPZA boss,<br />
a new independent power supply<br />
source was being worked on, as the<br />
old one was no longer reliable.<br />
The Cross River Police boss has<br />
called on the CFTZ management to<br />
cooperate with security agencies to<br />
prevent theft and provide security<br />
in the zone. He charged officers and<br />
men of the command to ensure regular<br />
surveillance in the zone.<br />
Meanwhile, there is shortage of<br />
Police personnel to man the Divisional<br />
station at the FCTZ, which<br />
prompted the head of the free zone,<br />
Godwin Ekpe, to appeal to the Police<br />
Commissioner to assist in order to<br />
raise crime fighting at the free zone<br />
Ekpe represented the Managing<br />
Director of NEPZA, Emmanuel Jime,<br />
expressed delight for the visit.<br />
He was accompanied by the General<br />
Manager of Tinapa, Binta Sa’eed<br />
and other management staff of the<br />
zone. He said the CFTZ was initially<br />
known as Calabar Export Processing<br />
Zone (CEPZ), coming into existence<br />
in 1992, after the promulgation of the<br />
Establish measures to bridle palm oil<br />
smuggling, Agro-economist urges FG<br />
800,000 MT.<br />
He said huge importation of<br />
CPO was not healthy for local<br />
producers and investors in the<br />
palm oil production subsector<br />
of the economy.<br />
Nigeria is the world’s fifth<br />
largest producer of crude palm<br />
oil, with a total official output of<br />
about 930,000 MT annually.<br />
“The situation now is that we<br />
are not able to produce enough<br />
palm oil to meet domestic consumption<br />
and manufacturing<br />
needs. So, we have to import<br />
large quantities of palm oil to<br />
meet the supply deficiency,” said<br />
Njoku.<br />
He warned that importation<br />
depresses the economy as it<br />
leads to capital flight, as well<br />
hurting the price of locally produced<br />
commodities; and that<br />
Nigeria Export Processing Zones Act<br />
63 of 1992.<br />
The CFTZ head disclosed that<br />
the zone has so far licensed about 77<br />
companies, out of which 42 are operational,<br />
employing over 11,000 skilled<br />
and unskilled workers engaged by<br />
these companies.<br />
“We have seen technology transfer<br />
and skill acquisition as well as foreign<br />
direct investment (FDI) from companies<br />
located in the CFTZ such as<br />
Skyrun International FZE, M-Saleh<br />
Engineering FZE, Agrim International<br />
FZE, Combination Industries<br />
FZE, Bao Yao Iron and Steel group<br />
and General Electric FZE,” the CFTZ<br />
head said.<br />
On the challenges of the Zone, he<br />
told the Police Commissioner that the<br />
Zone was expanding in size, and the<br />
value of activities was equally expected<br />
to increase with the presence of<br />
General Electric and its subsidiaries.<br />
Ekpe appealed to the Cross River<br />
Police Commissioner to patronize the<br />
products of Golden Giant Industries<br />
FZE which produces camouflage for<br />
security operatives.<br />
becomes a disincentive to production<br />
and investment.<br />
According to him the Federal<br />
Government should put in place<br />
“programs and measures in the<br />
next couple of years to increase<br />
palm oil production, to the extent<br />
that it meets local consumption<br />
requirements.<br />
The professor of Agriculture<br />
Economics said if the Federal<br />
Government can boost local<br />
palm production, the current<br />
massive importation could be<br />
eliminated.<br />
Meanwhile, he has said that<br />
he would use his vast wealth<br />
of knowledge and experience<br />
to bring in the desired change,<br />
prosperity and development in<br />
Imo State, if elected governor in<br />
2019; as well as restore sanity and<br />
the dignity of the Imo people.<br />
FG trains 28 ex-Niger Delta<br />
militants on fish farming<br />
IDRIS UMAR MOMOH, Benin<br />
In line with the policies<br />
of the Presidential<br />
Amnesty Programme,<br />
28 ex-militants drawn from<br />
the nine oil producing<br />
states in the Niger Delta are<br />
undergoing one-week fish<br />
farming training in Benin-<br />
City, Edo State.<br />
The programme entails<br />
training the beneficiaries<br />
on fish farming, empowerment<br />
with all the equipment<br />
and tools needed<br />
for the business, open an<br />
account as well as monitoring<br />
and mentoring for three<br />
months to know their challenges<br />
and ensure success.<br />
Charles Odemwingie<br />
Aibangbee, the programme<br />
facilitator, said the programme<br />
was geared towards<br />
the re-integration of<br />
the ex-militants back into<br />
the society.<br />
Aibangbee, who is also,<br />
the managing director of<br />
REGIS ANUKWUOJI, Enugu<br />
Nigerian trado-medical<br />
practitioners<br />
have challenged<br />
governments at all<br />
levels to give them at least<br />
30% attention of what they<br />
give to conventional health<br />
practitioners to enable them<br />
promote primary health care<br />
and reposition Nigerian health<br />
sector.<br />
They said that a lot of<br />
health challenges and sicknesses<br />
could be handled and<br />
treated in the country by<br />
natural medicine if they are<br />
supported, instead of taking<br />
the cure of certain sicknesses<br />
outside the country.<br />
Godwin Enweoru of Goddy<br />
Natural Health Center, who<br />
spoke to <strong>BusinessDay</strong> on<br />
the efficacy of herbal medicine<br />
at the just concluded<br />
Enugu International trade<br />
fair, explained that the major<br />
challenge faced by the practitioners<br />
is funding to enable<br />
traditional medicine practitioners<br />
establish hospitals and<br />
botanical gardens.<br />
Enweoru therefore, appealed<br />
to governments at all<br />
levels to support and encourage<br />
them financially to enable<br />
them develop their botanical<br />
Nolia Consult Limited,<br />
noted that the training was<br />
in line with the presidential<br />
directive to integrate<br />
restive youths in the Niger-<br />
Delta region into the society<br />
through the Presidential<br />
Amnesty Programme.<br />
He explained that to<br />
ensure the success of the<br />
programme, the Federal<br />
Government allows the<br />
trainees to choose what<br />
business they want to<br />
go into; adding that the<br />
trainees chose fish farming<br />
on their own. He charged<br />
the participants to take<br />
the training seriously, as<br />
government cannot employ<br />
everybody; assuring that<br />
they will be empowered to<br />
start their business.<br />
One of the trainers,<br />
Patricia Danyil, said the<br />
training would equip the<br />
participants with the key<br />
qualities, knowledge and<br />
skills needed to grow their<br />
business.<br />
Nigerian trado-medical practitioners<br />
say can reposition health sector<br />
gardens and hospitals.<br />
He said that people with<br />
serious ailments that have the<br />
courage to approach practitioners<br />
of trado-medicine get<br />
cured with little amount of<br />
money; saying that all they are<br />
asking for is encouragement<br />
and assistance to change the<br />
health situation of the nation.<br />
“God has, through me,<br />
cured a lot of people with<br />
different aliments such as<br />
eye challenges, skin diseases,<br />
diabetes, pile, among others,”<br />
he said.<br />
Eye problem, he said,<br />
ranges from cataract, glaucoma,<br />
myopia, itching, retinal<br />
detachment, to short and long<br />
sight, where many people are<br />
subjected to using glasses<br />
before they could see tiny<br />
characters of words.<br />
Enweoru said there are<br />
some natural herbs that could<br />
be taken like tea to boost<br />
one’s vision, cleanse the eye<br />
without the use of eye glass.<br />
He also attributed some<br />
vision challenges to the eating<br />
habit of some people. that is<br />
why some aged people do not<br />
have vision challenges.<br />
Goddy natural center<br />
claimed to be doing well in<br />
other sicknesses like diabetes,<br />
pile, hemorrhage and general<br />
cough.
Friday<strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
BUSINESS DAY<br />
31
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
32 BUSINESS DAY<br />
C002D5556<br />
Sports<br />
Spanish football league LaLiga unveils Nigerian office<br />
Stories by<br />
Anthony Nlebem<br />
Liga Nacional De<br />
Fútbol Profesional,<br />
more commonly<br />
known as<br />
“LaLiga” on Sunday<br />
<strong>April</strong> 8, hosted its first official<br />
“LaLiga in Naija” media<br />
event in Lagos. The event was<br />
aimed at officially unveiling<br />
the LaLiga Nigerian office<br />
and highlighting the various<br />
projects it has undertaken<br />
since its inception in the<br />
country.<br />
The LaLiga office in Nigeria<br />
was launched in Abuja in<br />
2016, in a signed partnership<br />
with Legacy Sports, but there<br />
was no official launch event<br />
at the time. This was the first<br />
official ‘corporate’ event for<br />
the brand in Nigeria. The<br />
launch was designed to bring<br />
LaLiga closer to its Nigerian<br />
fans, and to generate more<br />
awareness around the other<br />
clubs in LaLiga.<br />
Ex-internationals Emmanuel Amunike, Finidi George and Mutiu Adepoju at the LaLiga in Naija media event held on<br />
Sunday, <strong>April</strong> 8 in Ikeja, Lagos.<br />
LaLiga delegate in Nigeria,<br />
Javier Del Rio, who<br />
spoke during the event,<br />
said; “We (LaLiga) are very<br />
proud to be in Nigeria, and<br />
to be much closer to the<br />
fans. We believe Nigeria is<br />
a significant market for the<br />
growth of our brand, and<br />
we are highly committed to<br />
the development of football<br />
in this country, paying close<br />
attention to its grassroots<br />
football as demonstrated<br />
through the 5-day LaLiga-<br />
NPFL Coaching Clinic for<br />
Nigerian youth coaches earlier<br />
this year at the National<br />
Stadium in Abuja. We plan<br />
to host more of these types<br />
of activation, and this is just<br />
the beginning of greater<br />
things to come between<br />
LaLiga and Nigeria.”<br />
Present at the event were<br />
former Nigerian LaLiga stars<br />
Finidi George, and Emmanuel<br />
Amunike. The Nigerian<br />
players from Las Palmas,<br />
Malaga, Deportivo La Coruna,<br />
Nastic Tarragona, and<br />
Lugo were also present to<br />
represent their respective<br />
clubs.<br />
Also speaking during<br />
the event, was LaLiga ambassador,<br />
and former La-<br />
Liga star, Mutiu Adepoju,<br />
who said, “As the LaLiga<br />
ambassador, growing the<br />
LaLiga brand in Nigeria has<br />
always been my primary<br />
objective. I am excited<br />
about the prospect of Nigerian<br />
fans being closer to La-<br />
Liga and its clubs, as there<br />
is an array of Nigerian<br />
talent plying their trade in<br />
the Spanish top flight. I believe<br />
that LaLiga’s presence<br />
in Nigeria will ultimately<br />
further strengthen ties between<br />
Nigeria and LaLiga”.<br />
Sports and broadcast<br />
media personnel from the<br />
top media publications and<br />
online blogs in Nigeria were<br />
present at the event, and<br />
were treated to a pulsating<br />
experience with the Magic<br />
of LaLiga, in a private viewing<br />
of the Madrid Derby<br />
between Real Madrid & Atlético<br />
Madrid, with the former<br />
Nigerian LaLiga stars acting<br />
as commentators during the<br />
match.<br />
LaLiga is continuously<br />
committed to the development<br />
of football in Nigeria<br />
at all levels, and will stop at<br />
nothing to better the footballing<br />
culture here through<br />
the best league in the world,<br />
LaLiga’s methodology.<br />
South African ex-international star Ntini<br />
partners NCF as technical consultant<br />
The (NCF) has contracted<br />
the services of<br />
South African Cricket<br />
legend, Makhaya Ntini<br />
as the Technical Consultant<br />
to the Nigerian national team<br />
ahead of the International<br />
Cricket Council sub-regional<br />
T20 qualifier and African<br />
Cricket Association (ACA)<br />
Tournament, this month.<br />
Vice-President of NCF and<br />
Chairman, Local Organizing<br />
Committee of the T20 qualifier,<br />
Uyi Akpata, disclosed this in<br />
Lagos and said that the coming<br />
of Ntini would give the NCF<br />
technical bench a depth that<br />
is necessary to compliment<br />
the effort of the coaching crew<br />
ahead of busy schedules in the<br />
coming months.<br />
“We have a number of<br />
things going well for Cricket<br />
now and the inclusion of Ntini<br />
to our technical team would be<br />
a big boost to those developments.<br />
A good outing at ICC<br />
sub-regional T20 qualifier that<br />
we are hosting from <strong>April</strong> 14th<br />
to 21stis also a key deliverable<br />
that his coming will help our<br />
team with.”<br />
Ntini, a former South African<br />
fast bowler, and a former<br />
Zambian coach has said he is<br />
happy to work with the Nigeria<br />
Cricket Federation to realise<br />
their vision.<br />
“I want to appreciate the<br />
Nigerian Cricket Federation<br />
who invited me and based on<br />
what I have seen in the last few<br />
days, I am impressed with the<br />
talents I met on ground”.<br />
Ntini will also be expected<br />
to run a 2-day Fast Bowling<br />
Academy for young fast bowling<br />
talents in Nigeria.<br />
Coach of the national<br />
team, Uthe Ogbimi, on his<br />
part is full of praises for the<br />
NCF for bringing in Makhaya<br />
Ntini, the first black player to<br />
play for the South African national<br />
cricket team. According<br />
to him this will not only<br />
enhance the performance of<br />
the national team players but<br />
also help develop the game at<br />
the grassroot level.<br />
“<strong>April</strong> is a very crucial<br />
month for us as host of the<br />
International Cricket Council<br />
sub-regional T20 qualifiers<br />
and ACA T20 Tournament. We<br />
have made a pledge to give our<br />
best and then come out tops at<br />
the two tournaments Nigeria<br />
will be hosting”.<br />
The Nigerian Cricket Federation<br />
(NCF) under the leadership<br />
of Professor Yahaya<br />
Adam Ukwenya had promised<br />
to return the National Team to<br />
global reckoning when it was<br />
inaugurated a year ago, with<br />
Ukwenya adding that;<br />
“We had a roadmap when<br />
we came on Board and we<br />
are keeping strictly to the developmental<br />
plans we have<br />
outlined. We are most grateful<br />
to the ICC and the ACA for<br />
granting us hosting rights for<br />
2 international tournaments,<br />
back-to-back. With their support<br />
and that of our growing<br />
number of corporate sponsors,<br />
we are confident of a brighter<br />
future for Nigerian cricket.”<br />
Nigerians to enjoy World Cup Live in<br />
HD at a subsidized rate – StarTimes<br />
As the countdown to<br />
the most anticipated<br />
sporting event<br />
in the world commences,<br />
leading pay-TV<br />
provider, StarTimes Nigeria<br />
says it has concluded plans<br />
to ensure that Nigerians<br />
enjoy all the 64 matches of<br />
the World Cup live, and in<br />
HD at a subsidized rate.<br />
Speaking on this development,<br />
the company’s<br />
Brand & Marketing Director,<br />
Qasim Elegbede hinted that<br />
all StarTimes subscribers<br />
will enjoy the matches irrespective<br />
of their bouquet.<br />
“We are working to ensure<br />
that every StarTimes<br />
subscriber enjoys the thrilling<br />
moments of the World<br />
Cup in HD right in the comfort<br />
of their home. As part<br />
of our promise to deliver<br />
affordable entertainment to<br />
every African home, we will<br />
ensure that watching the<br />
World Cup live and in HD<br />
no longer puts a hole in the<br />
pocket of Nigerians as it has<br />
been over the years”<br />
He added, “ All our bouquets<br />
will be showing the<br />
World Cup for the general<br />
entertainment of our subscribers.<br />
Non StarTimes<br />
subscribers will not be left<br />
out of the World Cup frenzy<br />
as all 64 matches are also<br />
available live and in HD on<br />
the StarTimes mobile app<br />
available for download from<br />
the app store”<br />
StarTimes is the leading<br />
digital TV operator in<br />
Africa, serving nearly 10<br />
million subscribers with a<br />
signal covering the whole<br />
continent and a massive<br />
distribution network of 200<br />
brand halls, 3,000 convenience<br />
stores and 5,000<br />
distributors. The company<br />
also owns a featured content<br />
platform, with 480 authorized<br />
channels consisting of<br />
news, movies, series, sports,<br />
entertainment, children’s<br />
programs etc.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
C002D5556<br />
BUSINESS DAY<br />
33<br />
NEWS<br />
Base effect moderates inflation pressure to...<br />
Continued from page 4<br />
base effect with stable currency<br />
backdrop and sliding gasoline<br />
prices,” Wale Okunrinboye, a<br />
Lagos-based Fixed Income and<br />
Research Analyst told Business-<br />
Day on phone.<br />
The steady supply of Premium<br />
Motor Spirit (PMS),<br />
normally referred to as petrol,<br />
was said to have been a<br />
catalyst to the moderation in<br />
inflation rate.<br />
“The relative stability in<br />
crude supply due to the tackled<br />
challenges of fuel importation<br />
and distribution experienced<br />
few month ago, led to reduction<br />
in petrol prices in March.<br />
This reflected in the prices of<br />
transportation and cost of moving<br />
goods around the country. It<br />
however then led to decline in<br />
inflation rate,” Ayo Akinwumi,<br />
Head of Research FSDH Merchant<br />
Bank said.<br />
“It is a major positive surprise,<br />
although the base effect<br />
also played a role, considering<br />
the high rate recorded last year,”<br />
Oando shares appreciate...<br />
Continued from page 1<br />
Tajudeen Ibrahim, Head of Research<br />
at Chapel Hill Denham<br />
Securities said.<br />
According to a previous NBS<br />
report on Wednesday 11 <strong>2018</strong>,<br />
there was -5.3 percent decline<br />
in the price of petrol on monthon-month<br />
comparison.<br />
Nigerian consumers paid<br />
an average of N163.4 per litre<br />
for the product in March, N9.1<br />
less than the N172.5 in February<br />
<strong>2018</strong>. This is however,<br />
against the official government<br />
pump price of N145 per litre. Although,<br />
there was a 9.4 percent<br />
increase, year-on-year, as seen<br />
in NBS figures.<br />
The Consumer Price Index<br />
(CPI) measures the average<br />
change over time in prices of<br />
goods and services consumed<br />
by people for day- to- day living<br />
and as such, the CPI measures<br />
inflation.<br />
Inflation on the other hand<br />
is the rate at which the prices of<br />
goods and services are rising.<br />
Expectations of two analysts<br />
polled in a <strong>BusinessDay</strong> survey<br />
L-R: Ike Ekweremmadu, deputy Senate president; George Obiazor, chairman of the occasion, and Ken Imasuangbon,<br />
discussant, at the inaugural annual distinguished lecture of Prof. J. Isawa Elaigwu Foundation in Abuja, yesterday. NAN<br />
commenced trading on the<br />
capital market on the morning of<br />
Thursday <strong>April</strong> 12, <strong>2018</strong> following<br />
a directive by the Securities<br />
and Exchange Commission<br />
(SEC).<br />
The 176 days technical suspension<br />
was hitherto lifted on<br />
the morning of <strong>April</strong> 11, <strong>2018</strong><br />
following an <strong>April</strong> 9, <strong>2018</strong> directive<br />
by the SEC.<br />
However, three hours into<br />
trading, the NSE reinstated the<br />
technical suspension.<br />
In a statement released by<br />
the NSE, on the evening of<br />
<strong>April</strong> 11, <strong>2018</strong> the Exchange explained<br />
that they reinstated the<br />
technical suspension based on<br />
a new directive from the SEC,<br />
throwing the financial market<br />
into chaos.<br />
The share price rose to<br />
N6.30, a 5.8 percent increase<br />
from N5.99 within three hours<br />
of trading on Wednesday morning,<br />
<strong>April</strong> 11.<br />
The regulator briefly reimposed<br />
the suspension on<br />
the same day, citing SEC directives<br />
but then lifted it again by<br />
Thursday, <strong>April</strong> 12.<br />
The NSE’s statement went<br />
further to say: “In the overall<br />
interest of investors in Nigeria’s<br />
capital markets, and following<br />
consultation with the Commission<br />
please be advised that<br />
at the start of trading, 12 <strong>April</strong>,<br />
<strong>2018</strong>, trading in Oando’s shares<br />
will resume without any impediment<br />
in price movement<br />
consistent with the NSE’s market<br />
structure.”<br />
On its first full day of trading,<br />
Oando’s shares were highly<br />
sought after with 178 million<br />
Oando shares on bid with only<br />
5.5 million available for sale.<br />
According to the Chief Compliance<br />
Officer and Company<br />
Secretary, Ayotola Jagun;<br />
“On day one, the Company’s<br />
share price hit the NSE daily<br />
price ceiling of 10 percent by<br />
10.45am; further evidence that<br />
there is a lot of interest in Oando<br />
shares and that the general<br />
mood around the market and<br />
our shares is positive.”<br />
The technical suspension<br />
which lasted 176 days reflected<br />
negatively on the credibility<br />
and competence of the country’s<br />
capital market regulators.<br />
It has also hit hard Oando’s<br />
over 270,000 shareholders,<br />
investors, partners, management,<br />
staff and everyone who<br />
owes their livelihood directly<br />
or indirectly to the company.<br />
Analysts say the true beneficiaries<br />
of the technical suspension<br />
were large investors<br />
with substantial shareholdings<br />
who have the deep pockets and<br />
were able to take advantage of<br />
the state of affairs to buy-out<br />
the minority shareholders at a<br />
expect the rate to hit a single<br />
digit in the Full Year of <strong>2018</strong> on<br />
the benchmark of declining fuel<br />
prices.<br />
“Petrol prices do not seem to<br />
be a thing to worry about again,<br />
therefore, the inflation rate is<br />
likely going to be at a single digit<br />
in Full year of <strong>2018</strong>,” Okunrinboye<br />
said.<br />
“Inflation will come to a single<br />
digit in full year of <strong>2018</strong>,”<br />
Tajudeen added.<br />
The Monetary Policy Committee<br />
(MPC), in its first meeting<br />
of the year held in <strong>April</strong> 3-4 <strong>2018</strong>,<br />
left its key interest rate at a record<br />
high of 14 percent to fight inflation<br />
as its awaits confirmation<br />
from data of deceleration in the<br />
headline CPI in Africa’s largest<br />
economy.<br />
The CBN governor Godwin<br />
Emefiele said the decision to<br />
retain the policy rates was geared<br />
at fighting inflation.<br />
Meanwhile, inflation rate at<br />
<strong>13</strong>.34 percent is now lower than<br />
the benchmark rate of 14 percent.<br />
This means the real interest<br />
rate has taken a positive trajectory<br />
by 0.66 percentage points.<br />
discount to the true value of the<br />
shares, whilst also creating a<br />
black market for the company’s<br />
shares.<br />
Shareholders were denied<br />
the opportunity of benefitting<br />
from Oando’s performance and<br />
gains spurred by higher crude<br />
prices over the last months six<br />
months.<br />
In Q3 2017, 9 days after<br />
the technical suspension was<br />
placed, Oando declared a profit<br />
after tax of N7.1 billion in its<br />
year-end September 30, 2017<br />
results.<br />
The company, prior to this<br />
result declared three profits in a<br />
row, FYE 2016, N3.5 billon PAT;<br />
Q1 2017, N1.7 billion; and H1<br />
2017, N4.6 billion PAT.<br />
The company started <strong>2018</strong><br />
on a positive note, by reaching<br />
an agreement with Dahiru<br />
Mangal after adequately addressing<br />
the concerns he raised<br />
in his petition to the SEC; this<br />
was shortly after the price of<br />
“This means that the CBN will<br />
likely be able to cut interest rate<br />
by say 100 to 200 basis points<br />
over the second or third quarter<br />
of <strong>2018</strong>,” Okunrinboye said.<br />
A further break down of the<br />
inflation report released Thursday,<br />
shows the Composite Food<br />
Index rose by 16.08 percent (year<br />
on year) in March <strong>2018</strong>, down<br />
from the rate recorded in February<br />
(17.59 percent).<br />
On a month-on-month basis,<br />
the Food sub-index increased by<br />
0.90 percent in March <strong>2018</strong>, up<br />
by 0.05 percent points from 0.85<br />
percent recorded in February.<br />
The average annual rate of<br />
change of the Food sub-index for<br />
the twelve-month period ending<br />
March <strong>2018</strong> over the previous<br />
twelve month average was 19.29<br />
percent, 0.23 percent points<br />
from the average annual rate of<br />
change recorded in February<br />
(19.52) percent.<br />
The rise in the food index was<br />
caused by increases in prices of<br />
Bread and cereals, Fish, Oil and<br />
fats, Vegetables, Fruits, Coffee,<br />
tea and cocoa, Meat, milk,<br />
cheese and eggs.<br />
Brent Crude hit $71, its highest<br />
since December 2014.<br />
The company recently commissioned<br />
its new office building,<br />
the Wings Office Complex,<br />
a two 12-story building which<br />
also offers a world-class indoor<br />
event space, a one-of-a-kind<br />
space that can hold up to 300<br />
people and an outdoor waterfront<br />
area with a hosting capacity<br />
of 200 people and overlooks<br />
Lagos waterway.<br />
The building will not only<br />
act as the company’s new head<br />
office but will also be an additional<br />
revenue generator from<br />
its 27,000m2 worth of lettable<br />
office space.<br />
Recently, the Nigerian National<br />
Petroleum Corporation<br />
(NNPC) announced that a consortium<br />
consisting of Oando<br />
PLC and OilServe Limited have<br />
been awarded the Engineering,<br />
Procurement, Construction<br />
(EPC) mandate for the<br />
construction of gas pipelines<br />
The ‘’All Items less Farm Produce’’<br />
or Core inflation, which<br />
excludes the prices of volatile<br />
agricultural produce, rose by<br />
11.2 percent in March <strong>2018</strong>,<br />
down by 0.5 percent points from<br />
the rate recorded in February<br />
(11.7) percent.<br />
On a month-on-month basis,<br />
the Core sub-index increased<br />
by 0.84 percent in March <strong>2018</strong>,<br />
higher by 0.09 percent when<br />
compared with 0.75 percent<br />
recorded in February.<br />
The average 12-month annual<br />
rate of change of the index<br />
was 12.33 percent for the<br />
twelve-month period ending<br />
March <strong>2018</strong>; this is 0.34 percent<br />
points lower than 12.67 percent<br />
recorded in February.<br />
In March <strong>2018</strong>, all items inflation<br />
on a year on year basis was<br />
highest in Bauchi, Kebbi and<br />
Nassarawa states with 16.38 percent<br />
16.36 percent and 16.33 percent<br />
respectively, while Kwara<br />
with 10.30 percent, Kogi with<br />
10.87 percent and Delta with<br />
11.17 percent recorded the slowest<br />
rise in headline Year on Year<br />
inflation.<br />
stretching from Ajaokuta to<br />
Abuja as part of the Ajaokuta-<br />
Kaduna-Kano Pipeline.<br />
The pipeline is a section of<br />
the Trans-Nigerian Gas Pipeline<br />
under the gas infrastructure<br />
blueprint designed to<br />
enable the industrialisation<br />
of the Eastern and Northern<br />
parts of Nigeria and also enable<br />
connectivity between the<br />
East, West and North, which is<br />
currently non-existent.<br />
Speaking on the lifting of<br />
the technical suspension, Bismarck<br />
Rewane the CEO of<br />
economic consulting firm Financial<br />
Derivatives said: “The<br />
way we handle these matters<br />
also sends a clear signal to<br />
potential, existing and international<br />
investors that this market<br />
is transparent, accountable and<br />
is there to protect all interests<br />
and not to be used for punitive<br />
purposes.”<br />
Rewane advised market<br />
regulators to learn from their<br />
mistakes on the handling of<br />
Oando’s issue and ensure it is<br />
not repeated in the future.<br />
A statement from Oando indicated<br />
that the forensic audit<br />
into the affairs of the company<br />
is currently underway by Deloitte<br />
Nigeria (Deloitte), the<br />
SEC appointed forensic team<br />
lead.<br />
“To date, the Company has<br />
been fully cooperative with both<br />
the SEC and Deloitte. In the<br />
spirit of goodwill, transparency<br />
and full disclosure, we will continue<br />
to cooperate with the SEC<br />
and its nominated parties in the<br />
discharge of their duties as the<br />
Capital Markets regulator during<br />
this exercise,” Oando said.<br />
Rewane further advised that<br />
the commission should commit<br />
the resources needed to<br />
conclude the forensic audit on<br />
Oando as the market cannot<br />
wait indefinitely.
34 BUSINESS DAY C002D5556<br />
NEWS<br />
Good Governance Committee assesses<br />
states ahead of <strong>2018</strong> Governors’ Awards<br />
TELIAT SULE<br />
The <strong>2018</strong> Award Committee<br />
for the States<br />
Competitiveness and<br />
Good Governance<br />
Awards and <strong>BusinessDay</strong> Research<br />
and Intelligence Unit<br />
(BRIU), working in coordination<br />
with the field teams, have<br />
begun the compilation and<br />
assessment of the achievements<br />
of the 36 state governments<br />
in Nigeria ahead of<br />
the <strong>2018</strong> States Competitiveness<br />
and Good Governance<br />
Awards, as state governments’<br />
officials begin to send in their<br />
entries in response to notices<br />
earlier sent out by the Committee.<br />
In this year’s awards, the<br />
chief executive officers of the<br />
36 states of the federation<br />
will be appraised on different<br />
award categories, which include<br />
the awards for the Fastest<br />
Growing State Economy;<br />
Best State in Tourism; Transparency<br />
in Governance; the<br />
most improved in Rural and<br />
Urban Infrastructure Devel-<br />
FG commences wider consultations on CFTA in six weeks<br />
KEHINDE AKINTOLA, HARRISON EDEH & CYNTHIA EGBOBOH<br />
Federal Government on<br />
Thursday said it would<br />
continue wider consultations<br />
with economic<br />
stakeholders in the country’s<br />
six geo-political zones on<br />
the African Continental Free<br />
Trade Agreement (AFCTA) to<br />
ensure long-term benefits and<br />
consolidation of the Nigerian<br />
economy.<br />
The government also informed<br />
that wider consultations<br />
with the Nigerian Labour<br />
Congress (NLC), and the<br />
Manufacturers Association of<br />
Nigeria (MAN) and other key<br />
players in the organised private<br />
sector was already yield-<br />
opment; the most improved<br />
in Ease of Doing Business; the<br />
most improved in Healthcare<br />
Development and the Best<br />
State in Agriculture Development.<br />
Others are the most<br />
improved state in Housing<br />
Development, Education Development,<br />
Security, IT/ICT<br />
and the state at the forefront<br />
of promoting Made in Nigeria<br />
Goods.<br />
In an era of diversification,<br />
the list of the award categories<br />
will not be complete without<br />
a consideration for the state<br />
promotion the development<br />
of solid minerals. The climax<br />
of it is that the most outstanding<br />
governors will emerge as<br />
the governor(s) of the year.<br />
The Award Committee<br />
and BRIU employed a number<br />
of metrics to evaluate the<br />
36 sub national governments<br />
with the sole aim of ensuring<br />
a level playing field and<br />
objectivity. Quantitative parameters<br />
include growth in<br />
internally generated revenue<br />
(IGR), education reforms,<br />
budgetary allocations to critiing<br />
the desired results as concerns<br />
being raised by various<br />
groups were being adequately<br />
addressed. Briefing newsmen<br />
while he played host to<br />
representative of the National<br />
Association of Small Scale Enterprises,<br />
NASME who came<br />
to pledge their support to government’s<br />
effort towards signing<br />
the AFCTA, Chiedu Osakwe,<br />
who heads Nigeria Office<br />
for Trade Negotiations said the<br />
consultations with key economic<br />
stakeholders will assist<br />
Nigeria harvest the full benefits<br />
of becoming a signatory<br />
to the AFCTA. Osakwe said,<br />
“The government’s consultations<br />
is ensuring that strategic<br />
priorities such as safeguarding<br />
BBC News Africa appoints Larry Madowo as business editor<br />
Larry Madowo joins<br />
the BBC from<br />
Wednesday, <strong>April</strong><br />
11, leading its new<br />
Business Unit. The appointment<br />
is part of the BBC<br />
World Service’s continuing<br />
expansion in TV and Digital<br />
Video content for audiences<br />
in Africa, including new<br />
business programmes.<br />
Larry is a well-known<br />
Kenyan journalist and<br />
has previously hosted his<br />
own radio show, written<br />
a weekly newspaper column<br />
and fronted many<br />
popular TV programmes.<br />
Larry has a vast experience<br />
in broadcasting, having<br />
worked with various<br />
well-established local and<br />
CHANGE OF NAME<br />
I, formerly known and addressed<br />
as Frank Nwabueze<br />
Tunim-Eke now wish to be<br />
known and addressed as Frank<br />
Nwanbueze Tunim-Eke. All former<br />
documents remain valid.<br />
General Public please take note.<br />
international media organisations,<br />
and has made<br />
many appearances previously<br />
on the BBC. He is<br />
also a pioneering digital<br />
journalist on the continent<br />
with an impressive following<br />
of over 3 million on social<br />
media.<br />
Madowo, says: “I’m<br />
thrilled to be joining the<br />
BBC and look forward to<br />
amplifying stories about<br />
CONFIRMATION OF NAME<br />
This is to inform the general<br />
public that Echefu Ikenna<br />
Azubuike and Onwunabonze<br />
Ikenna Azubuike refers to<br />
same and one person. All former<br />
documents bearing any<br />
of the two names remain valid.<br />
General public please take note.<br />
CHANGE OF NAME<br />
I, formerly known and addressed<br />
as Adamu Usman<br />
now wish to be known and<br />
addressed as Adamu Usman<br />
Mohammed. All former documents<br />
remain valid. General<br />
Public please take note.<br />
cal sectors such as health, education<br />
and agriculture; capital<br />
importation, foreign direct<br />
investment and openness in<br />
the budgetary processes.<br />
Fourteen states emerged<br />
as the winners in the 2017 edition.<br />
Dignitaries at that event<br />
include Abdulsalami Abubakar,<br />
former head of state;<br />
Okezie Ikpeazu, Abia State<br />
governor; Nasiru el-Rufai, Kaduna<br />
State governor; Abdullahi<br />
Umar Ganduje, Kano State<br />
governor, Simon Lalong, Plateau<br />
State governor; Samuel<br />
Ortom Benue State governor;<br />
Acho Nwaakanma, former<br />
deputy governor, Abia State;<br />
Jacob Buba, Gbomgwom Jos;<br />
Babafemi Ojodu, SA to Vice<br />
President on Political Matters;<br />
Adeyemi Dipeolu, SA to<br />
the President on Economic<br />
Matters; Letep Dabang, chairman,<br />
APC Plataeu State; Vincent<br />
Ogbulafor, former PDP<br />
chairman; Austin Akobundu,<br />
former minister of state, Defense,<br />
and Pauline Tallen, former<br />
deputy governor, Plataeu<br />
State, among others.<br />
infant industries, comprising<br />
of rice, poultry, sugar and even<br />
fertilizer movements are well<br />
managed in such a way that<br />
the activities benefit Nigerian<br />
industries. In that regard, appropriate<br />
safeguards are in<br />
place to address concerns in<br />
these areas.<br />
Also, he said, “The consultations<br />
is assisting us in area<br />
of coordinated economic approach<br />
in addressing concerns<br />
of cost reflective benefit analysis<br />
of the AFCTA, more reflective<br />
border management and<br />
policing, as well as improving<br />
trade logistics which is key in<br />
delivering goods and services,<br />
which is key in growing intra-<br />
African Trade.<br />
entrepreneurship, ingenuity<br />
and innovation that<br />
I’ve witnessed as I have<br />
travelled all over Africa.<br />
I grew up admiring the<br />
quality of journalism the<br />
BBC produces around the<br />
world, and it is an honour<br />
to be a part of a bold new<br />
team that will tell authentic<br />
African stories for audiences<br />
across multiple<br />
platforms.”<br />
CHANGE OF NAME<br />
I, formerly known and addressed<br />
as John Stephen Ibakwu now<br />
wish to be known and addressed<br />
as John Emmanuel Ebakwu. All<br />
former documents remain valid.<br />
First bank,unity bank ,UBA,Agatu<br />
local gov’t & General Public<br />
please take note.<br />
CHANGE OF NAME<br />
I, formerly known and addressed<br />
as Ogu Joy<br />
Nkechinyere now wish to<br />
be known and addressed as<br />
Ajugwe Joy Nkechinyere. All<br />
former documents remain valid.<br />
General Public please take note.<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong>
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
Mobile ecosystem to be...<br />
Continued from page 1<br />
Until his suspension, Omo-<br />
Agege was Secretary of the<br />
group.<br />
Although he apologised for<br />
insinuating that the Electoral<br />
Act Amendment Bill, which reordered<br />
sequence of elections,<br />
was targeted at the President,<br />
he, however, approached a law<br />
court to get a restraining order<br />
against any move to suspend<br />
him.<br />
Consequently, this angered<br />
the panel, which observed that<br />
as a member of the Ethics Committee,<br />
the senator should have<br />
known better than to drag the<br />
institution to court.<br />
“After the Distinguished Senator<br />
had apologised, he and<br />
Senator Abdullahi Adamu published<br />
an advert in the Vanguard<br />
Newspaper with the heading,<br />
Parliamentary Support Group<br />
(Senate) for President Muhammadu<br />
Buhari, suggesting that<br />
the Senate was polarised.<br />
“The Committee is of the<br />
opinion that the action by Senaport.<br />
According to the report, the<br />
mobile industry in West Africa<br />
is forecast to contribute more<br />
than $50 billion annually to the<br />
region’s economy by 2022.<br />
GSMA represents the interests<br />
of mobile operators worldwide,<br />
uniting nearly 800 operators with<br />
more than 300 companies in<br />
the broader mobile ecosystem,<br />
including handset and device<br />
makers, software companies,<br />
equipment providers and internet<br />
companies, as well as organisations<br />
in adjacent industry sectors.<br />
The report evaluates that the<br />
region’s mobile ecosystem contributed<br />
$37 billion in worth<br />
in 2017 which is equivalent to<br />
6.5 per cent of GDP, and will<br />
grow to $51 billion (7.7 per cent<br />
of GDP) within five years. The<br />
report shows that the economic<br />
influence over this period will be<br />
stimulated by durable subscriber<br />
progression and the move to<br />
mobile broadband networks and<br />
services.<br />
Also, the report states that at<br />
the end of 2017, there were 176<br />
million unique mobile subscribers<br />
across the West Africa subregion,<br />
which comprises the 15<br />
members of the Economic Community<br />
of West African States<br />
(ECOWAS).<br />
This growth in subscribers is<br />
motivated by the region’s huge<br />
youthful inhabitants and is projected<br />
to grow to 72 million subscribers<br />
by 2025 as more than<br />
40 per cent of the population in<br />
many countries across Sub-Saharan<br />
Africa are below the age of 16.<br />
“This report demonstrates the<br />
vital role West Africa’s mobile<br />
ecosystem is playing in driving<br />
economic growth and empowering<br />
citizens across the region,<br />
as well as in delivering against<br />
many of the targets of the UN’s<br />
Sustainable Development Goals,”<br />
said John Giusti, Chief Regulatory<br />
Officer at the GSMA. “However,<br />
further work is required as more<br />
than half of West Africa’s citizens<br />
are not yet connected to a mobile<br />
Senate suspends pro-Buhari senator for...<br />
Continued from page 1<br />
Senatorial District, Ovie Omo-<br />
Agege, for 90 legislative days.<br />
The All Progressives Congress<br />
(APC) lawmaker is one of<br />
the Pro-Buhari senators who<br />
walked out of the Senate following<br />
the adoption of the Electoral<br />
Act (Amendment) Bill, which<br />
they alleged was targeted at<br />
President Muhammadu Buhari.<br />
Although the Samuel Anyanwu-led<br />
Committee on Ethics,<br />
Privileges and Public Petitions<br />
recommended his suspension<br />
for 181 legislative days, Senate<br />
President Bukola Saraki, however,<br />
pleaded for leniency and<br />
asked his colleagues to reduce it<br />
to 90 days, which was adopted.<br />
The upper legislative chamber<br />
also disbanded the Parliamentary<br />
Support Group (Senate)<br />
for President Muhammadu<br />
Buhari and asked the embattled<br />
lawmaker to withdraw the lawsuit<br />
already instituted against<br />
the Senate.<br />
C002D5556<br />
L-R: Andy Halford, group chief finance officer, Standard Chartered Bank; Aishah Ahmad, deputy governor, Financial<br />
System Stability, CBN; Okwu Joseph Nnanna, deputy governor, Economy Policy, CBN, and Bola Adesola, MD/CEO,<br />
Standard Chartered Bank, during a courtesy visit to CBN in Abuja.<br />
Pic by Tunde Adeniyi<br />
service, excluding them from the<br />
socio-economic benefits that<br />
mobile delivers.”<br />
In the report, it was stated that<br />
the transition to mobile broadband<br />
in West Africa is being driven<br />
by the expansion of 3G and 4G<br />
networks, lower data tariffs and<br />
the increasing affordability of<br />
smartphones. 3G networks now<br />
cover two-thirds of the regions<br />
population and 4G adoption is<br />
also rising rapidly.<br />
As of March <strong>2018</strong>, there were<br />
29 live 4G (LTE) networks in nine<br />
countries across West Africa, six<br />
of which have launched in the<br />
last year. 3G and 4G together accounted<br />
for 36 per cent of West<br />
African mobile connections in<br />
2017 and are forecast to rise to<br />
94 per cent of the total by 2025.<br />
Local operators are expected to<br />
spend $8 billion (capex) over the<br />
next two years building out and<br />
upgrading their networks.<br />
Speaking exclusively to <strong>BusinessDay</strong><br />
on Nigeria’s involvement<br />
in the $50 billion projection,<br />
Head of Sub-Saharan Africa,<br />
GSMA, Akinwale Goodluck said<br />
“Given the size of the Nigerian<br />
economy and the revenues of the<br />
Nigerian operators, we estimate<br />
that approximately over 50% of<br />
the impacts calculated for West<br />
Africa are attributed to Nigeria.”<br />
Speaking further on how they<br />
arrived at the figures, Akinwale<br />
said “Three elements contribute<br />
to the overall economic impact<br />
of the mobile industry: direct, indirect<br />
and productivity impacts.<br />
Direct impact considers the contribution<br />
of the mobile ecosystem<br />
to the economy. Indirect effect is<br />
generated, producing sales and<br />
value added in other sectors and<br />
industries. The third, productivity,<br />
refers to businesses allowing<br />
more efficient ways to access<br />
information, accelerate processes<br />
tor Ovie Omo-Agege of going to<br />
court after apologising to the<br />
Senate was totally unacceptable,<br />
especially as an experienced<br />
lawyer and member of<br />
the Committee who is conversant<br />
with the modus operandi<br />
of same, and therefore, must be<br />
punished to serve as deterrent<br />
to others who might contemplate<br />
taking the Senate to court<br />
over its internal matters,” the<br />
report read.<br />
With this development,<br />
he becomes the second lawmaker<br />
to be suspended in the<br />
Eighth Senate; the first being<br />
the sacked Senate Leader, Ali<br />
Ndume who was suspended in<br />
March 2017.<br />
The committee said Omo-<br />
Agege’s suspension will serve as<br />
deterrent to other senators who<br />
might contemplate taking the<br />
Senate to court over its power<br />
to regulate its internal matters.<br />
Coincidentally, Omo-Agege<br />
is a member of the committee.<br />
Eight out of <strong>13</strong> members<br />
of the committee signed the<br />
report.<br />
and communications, thereby<br />
allowing greater productivity and<br />
boosting GDP,” he said.<br />
Akinwale identified three<br />
ways in which the earlier listed<br />
three elements take effect. In his<br />
words, “The first is the use of basic<br />
mobile voice and text services,<br />
which allows workers and firms<br />
to communicate more efficiently<br />
and effectively. The second is the<br />
use of 3G and 4G technology,<br />
which allows workers and firms<br />
to use mobile data and internet<br />
services and the third is the next<br />
generation of mobile services, in<br />
particular M2M and the ‘Internet<br />
of Things’.<br />
This will allow firms to improve<br />
equipment maintenance<br />
and operations (e.g. using sensors<br />
to monitor the health of<br />
machinery), optimise inventory<br />
(e.g. tracking real-time inventory<br />
so it can be replenished when<br />
needed) and save on energy<br />
costs (e.g. using intelligent energy<br />
management systems to reduce<br />
unnecessary energy use). It also<br />
has the potential to improve public<br />
services such as health and<br />
utilities,” he revealed.<br />
Given that such services are<br />
still in the early stages of development,<br />
this impact was limited in<br />
2017 but it is expected to grow in<br />
the coming years.<br />
Speaking Exclusively to <strong>BusinessDay</strong>,<br />
Director, Business Process<br />
and Technology, Prime<br />
Atlantic Group and Co-Founder,<br />
8191 Solutions, Foluso Gbadamosi,<br />
shared her view on how<br />
the Nigerian market will be part<br />
of the projected $50 billion, being<br />
the largest country by population<br />
in W/Africa and Africa as a whole.<br />
Giving her opinion, Foluso<br />
said “The mobile ecosystem<br />
consists of the devices (phones,<br />
tablets etc...), Networks, Operators,<br />
Services, Operating<br />
Systems, Platforms, Applications<br />
and so on. Mobile Internet<br />
is a key driver in the Nigerian<br />
market and the Mobile Internet<br />
Subscribers are expected to<br />
grow from 19.4 million in 2015<br />
BUSINESS DAY<br />
35<br />
NEWS<br />
to 75.9 million by 2020.<br />
According to the 7th Annual<br />
Edition of the PWC report on<br />
Entertainment & Media Outlook<br />
(2016 – 2020) in Africa, ‘Nigeria<br />
will have the fastest growth<br />
in Internet access revenue in<br />
the world. Nigeria’s CAGR of<br />
16.1% for Internet access revenue<br />
means that it is the world’s fastest-growing<br />
country for that area,<br />
making Nigeria a very appealing<br />
growth market,” She stated.<br />
Furthermore, Foluso added<br />
that “Nigeria will be a huge contributor<br />
in various ways. A major<br />
one will be in the development of<br />
apps, software applications and<br />
platforms. With the likes of Andela<br />
who are churning out developers,<br />
Google’s support of developers<br />
and the huge growth in the Mobile<br />
industry, it is clear that Nigeria will<br />
be the largest contributor to the<br />
Mobile Ecosystem. I expect that<br />
we will see more operators, more<br />
payment platforms, a lot more<br />
investors focusing on Nigeria because<br />
we are the fastest growing<br />
market!” Foluso said.<br />
Giusti, is of the view that<br />
“Connecting a new generation<br />
of mobile subscribers across West<br />
Africa requires a new era of collaboration<br />
between industry and<br />
governments in order to implement<br />
policies that encourage<br />
network expansion, innovation<br />
and affordability,”.<br />
Bringing it down to Nigeria,<br />
Akinwale believes the mobile<br />
industry and government can<br />
collaborate to implement policies<br />
that encourage expansion, innovation<br />
and affordability. According<br />
to him, “Affordability is crucial<br />
if we must connect everyone and<br />
everything ultimately in Africa.<br />
Low purchasing power coupled<br />
with high total cost of mobile<br />
ownership presents a challenge<br />
for all players and an opportunity<br />
for innovation, a paradigm shift<br />
by all stakeholders and a commitment<br />
to universal access and<br />
mobile broadband services”.<br />
In addition, for Akinwale,<br />
“Infrastructure cost is driven by<br />
high spectrum prices, prohibitive<br />
excise duty, significant import<br />
taxes on devices and telecommunications<br />
equipment, expensive<br />
bureaucratic permitting regimes<br />
and a skewed front loaded cost<br />
structure for roll out of services<br />
which is further accelerated in<br />
the rural areas.<br />
There is therefore a need for<br />
governments in Africa to make<br />
spectrum but most importantly,<br />
the lower bands (700Mz and<br />
800MHz) available to MNOs at a<br />
fair cost and with less restrictions<br />
regarding how or what technology<br />
it employs. This is the trade-off<br />
between treasury receivables /<br />
budget deficits and the overarching<br />
objective to connect everyone.<br />
Spectrum must be made available<br />
on time, in a predictable manner<br />
and artificial scarcity must be<br />
avoided. ” He said.<br />
In some countries, the compounded<br />
tax burden on the mobile<br />
industry exceeds 50% and<br />
reaches 35% of the cost of owning<br />
a mobile phone and using<br />
internet when every 10% more<br />
of mobile broadband penetration<br />
today just under 30% across<br />
Africa on average raises from 1<br />
to 2% national productivity and<br />
adds 0.1 to 0.2% of growth.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
FT FINANCIAL TIMES<br />
C002D5556<br />
BUSINESS DAY<br />
A1<br />
World Business Newspaper<br />
Trump’s new tough line<br />
on Russia raises risks<br />
Experts say president’s Twitter threats are the wrong way to deal with Putin<br />
COURTNEY WEAVER, KATRINA<br />
MANSON AND KATHRIN HILLE<br />
A<br />
US administration long<br />
accused of being obsequious<br />
towards Russia is now<br />
facing warnings that its new<br />
tougher tone is pushing the<br />
country towards a possible conflict<br />
with Moscow.<br />
After spending the first 15 months<br />
of his administration facing criticism<br />
for being too fond of Russian leader<br />
Vladimir Putin, President Donald<br />
Trump has dramatically changed tack<br />
following the poisoning of an ex-Russia<br />
spy in the UK and the alleged use of<br />
chemical weapons by Syria.<br />
Last week, the White House announced<br />
its toughest sanctions against<br />
Russia — a move Mr Trump did not<br />
block. This week, Mr Trump turned to<br />
Twitter to attack Mr Putin for his support<br />
of Bashar al-Assad and to advise<br />
Russian forces in Syria to be “ready”<br />
for US missiles.<br />
Mr Trump’s rhetoric might earn<br />
him points at home, where he continues<br />
to be hounded with questions over<br />
his 2016 campaign’s connections to<br />
Russia. Yet some Russia experts warn<br />
the president is playing a dangerous<br />
game by risking a military confrontation<br />
between the countries.<br />
Daniel Fried, a former ambassador<br />
who co-ordinated sanctions policy for<br />
the US government during the Obama<br />
administration, said Mr Trump’s tweets<br />
had put the US “in [the] same chestthumping<br />
rhetorical space with Putin”.<br />
“Never thought we’d go full Khrushchev-table<br />
pounding, but here we are<br />
and it could hurt us,” said Mr Fried,<br />
referring to Mr Khrushchev’s 1960<br />
shoe-banging protest at the UN.<br />
Andrew Weiss, a Russia expert at<br />
the Carnegie Endowment for International<br />
Peace, said Mr Trump’s language<br />
was dangerous from a foreign policy<br />
perspective.<br />
“The comments about ‘Russia:<br />
beware my missiles are coming’, are<br />
exactly the wrong way to talk about the<br />
use of force, particularly the wrong way<br />
OPCW confirms Britain’s scientific analysis of toxic agent used in Salisbury attack<br />
The Organisation for the Prohibition<br />
of Chemical Weapons has<br />
confirmed Britain’s scientific<br />
analysis of the nerve agent used in last<br />
month’s Salisbury attack.<br />
The international watchdog said<br />
on Thursday that its team could<br />
“confirm the findings of the United<br />
Kingdom relating to the identity of<br />
the toxic chemical that was used in<br />
Salisbury and severely injured three<br />
people”.<br />
Former Russian double agent Sergei<br />
Skripal, his daughter Yulia Skripal<br />
and a policeman, Nick Bailey, were<br />
to talk to a foreign government which<br />
has a huge military presence in Syria,”<br />
Mr Weiss said.<br />
Mr Trump has recently moderated<br />
his rhetoric somewhat. On Thursday,<br />
he tweeted: “Never said when an attack<br />
on Syria would take place. Could be<br />
very soon or not so soon at all!”<br />
A day earlier he tweeted that all nations<br />
needed to work together: “Stop<br />
the arms race?”<br />
The US will try to avoid a direct confrontation<br />
with Russia in Syria in much<br />
the same way it gave Moscow advanced<br />
notice before it conducted a limited air<br />
strike in Syria last year.<br />
However, the US and Russia have<br />
already clashed in Syria once this year<br />
when an Assad-backed group, that<br />
included Russian contractors, fired at<br />
a US base near Deir al-Zour, prompting<br />
the US to fire back.<br />
James Jeffrey, a former ambassador<br />
to the Middle East who served as<br />
George Bush’s deputy national security<br />
adviser, said Mr Trump’s tweets risked<br />
“painting Putin into a corner”. If any<br />
Russians are hurt, even by accident,<br />
Moscow could respond.<br />
“If you are not careful, you will bring<br />
in the Russians,” he warned.<br />
Dimitri Simes, president of the<br />
Center for the National Interest in<br />
Washington, said Mr Putin would<br />
probably face increased pressure to<br />
respond more aggressively to the US.<br />
US-Russian relations, he argued, were<br />
the worst they had been since either<br />
the Cuban missile crisis of 1962 or the<br />
Berlin crisis in 1961.<br />
“I think we’re dealing with a very<br />
serious situation,” he said. “I’m sure<br />
neither side wants a major nuclear<br />
confrontation, but we know from history<br />
that once you start a war it may<br />
be very difficult to control escalation.”<br />
In Moscow, Mr Putin’s hopes for<br />
improved relations appeared to be<br />
fading even before the recent tension.<br />
Last month, he devoted almost half of<br />
a two-hour state-of-the-nation address<br />
to bragging about new nuclear weapons<br />
which he claimed would make<br />
Russia invincible.<br />
Chemical weapons agency backs UK<br />
findings on Skripal nerve agent<br />
HENRY MANCE AND<br />
KATHRIN HILLE<br />
Stocks gain ground<br />
as Middle East jitters<br />
ebb<br />
Page A3<br />
all hospitalised after the poisoning<br />
on March 4.<br />
Mr Bailey was discharged last<br />
month, while Ms Skripal was released<br />
from hospital on Monday. On<br />
Wednesday, she issued a statement<br />
through the Metropolitan Police<br />
rejecting overtures from Russian officials<br />
who wanted to speak to her.<br />
The OPCW’s summary report did<br />
not name the compound, which Britain<br />
has said is a military grade nerve<br />
agent from the novichok family that<br />
was developed in Russia.<br />
However, it named the chemical<br />
in its “full classified report”, which was<br />
Continues on page A2<br />
Saudi Arabia jumps ahead of rival Qatar with $11bn bond sale<br />
Gulf kingdom says geopolitics did not play a role in its decision to move ahead of Qatar<br />
KATE ALLEN<br />
Saudi Arabia has rejected<br />
suggestions that geopolitics<br />
played a part in its decision<br />
to bring a bumper bond deal<br />
to market just days before<br />
regional rival Qatar attempts to sell<br />
debt, but said the “supply pipeline”<br />
was a factor.<br />
The Gulf kingdom raised $11bn<br />
on Tuesday in a quick-fire sale that<br />
drew $52bn of orders. It comes weeks<br />
after Saudi Arabia raised an extra $6bn<br />
of capital by refinancing a loan, and<br />
means the country has completed<br />
its capital-raising from international<br />
investors this year.<br />
Saudi Arabia, the UAE, Bahrain and<br />
Egypt cut diplomatic ties with Qatar last<br />
June, claiming that its regional policies<br />
fuelled extremism and terrorism.<br />
SoftBank teams with investors for $25bn Fifa shake-up plan<br />
China, Saudi Arabia, US and UAE investors envisage expanded Club World Cup<br />
ARASH MASSOUDI AND<br />
MURAD AHMED<br />
Japan’s SoftBank is part of an international<br />
consortium behind a<br />
radical $25bn plan to create global<br />
football tournaments for Fifa, the international<br />
governing body of the sport.<br />
The group includes investors from<br />
China, Saudi Arabia, the US and the<br />
United Arab Emirates, according to<br />
people with knowledge of the offer,<br />
which is designed to reshape the<br />
world’s most popular sport. The identity<br />
of those investors could not be learnt.<br />
The move comes as Fifa seeks to<br />
secure its financial future in the wake<br />
of corruption and bribery scandal<br />
that has plunged it into crisis in recent<br />
years.<br />
SoftBank, led by its chairman, Masayoshi<br />
Son, has been rapidly pushing<br />
into investments in varied industries<br />
from technology to renewable energy<br />
and financial services.<br />
Some of the people said the consortium<br />
was being assembled by<br />
Centricus, a UK-based group whose<br />
founders helped SoftBank raise funds<br />
to create its $100bn Vision Fund.<br />
The consortium’s proposal, which<br />
remains under discussion, envisages<br />
the expansion of the “Club World Cup”,<br />
How a volatility<br />
virus infected Wall<br />
Street<br />
Page A4<br />
US President Donald Trump, right, spent months facing criticism for being too fond of Russian leader Vladimir Putin, left,<br />
but he has changed tack dramatically © AP<br />
On Friday, Qatar announced a<br />
series of investor meetings to pitch its<br />
first foray into the debt markets since<br />
the blockade. The emirate launched<br />
the finance-raising bid on Thursday;<br />
if the multi-tranche bond deal succeeds,<br />
it will be its first dollar debt sale<br />
since 2016.<br />
“The decision to embark on the<br />
deal [on Tuesday] was specifically<br />
related to the market conditions and<br />
supply pipeline . . . we do not take<br />
geopolitics into consideration,” Fahad<br />
Al Saif, president of Saudi Arabia’s debt<br />
management office, told the Financial<br />
Times.<br />
Mr Al Saif said that Saudi Arabia<br />
had been seeking to bring a deal to<br />
market in recent weeks but the bout of<br />
volatility meant it had to wait.<br />
“We had been ready to go since<br />
earlier in the year but we wanted to<br />
a tournament currently played with<br />
seven top teams from across the globe.<br />
Also proposed is a new international<br />
league competition for national teams,<br />
said people with knowledge of the<br />
plans.<br />
Those people said the Club World<br />
Cup would be played every four years<br />
by the top 24 club-level teams, starting<br />
in 2021. A new national team competition<br />
would take place every two years.<br />
Fifa will have a 51 per cent stake in a<br />
joint venture with the consortium,<br />
with the investors guaranteeing revenues<br />
of at least $25bn.<br />
“This whole idea is that world<br />
football is not just about Europe,” said<br />
a person with knowledge of the offer.<br />
“Football is the biggest social event<br />
in the world with 3bn followers, but<br />
it doesn’t have a global community<br />
besides the World Cup.”<br />
Gianni Infantino, Fifa’s president,<br />
told the governing body’s ruling council<br />
in Bogotá, Colombia, last month<br />
that a group of investors was willing to<br />
spend billions of dollars to acquire an<br />
expanded version of the Club World<br />
Cup, but did not reveal the identity of<br />
the consortium.<br />
Uefa, European football’s governing<br />
body, said: “We can confirm that<br />
the Fifa president mentioned an al-<br />
complete the loan financing first and<br />
not do both fundings at the same time,”<br />
he said. “Our international funding is<br />
concluded for the year.”<br />
One person involved in Qatar’s deal<br />
said on Tuesday that the meetings with<br />
investors were “progressing well”.<br />
Saudi Arabia’s three-tranche sale<br />
raised $4.5bn in seven-year debt paying<br />
a coupon of 4 per cent, $3bn in 12-year<br />
debt paying 4.5 per cent and $3.5bn in<br />
31-year debt at 5 per cent. The maturities<br />
fill gaps in the country’s yield curve,<br />
Mr Al Saif said.<br />
The kingdom has turned to the<br />
international financial markets as part<br />
of a bid to reshape its economy after<br />
the oil price plunged between 2014<br />
and 2016. Although crude’s recent rise<br />
has eased pressure on the country’s<br />
budget, its deficit is still forecast to be<br />
$52bn this year.<br />
leged offer to buy some rights at the<br />
Fifa council meeting in Bogotá. As<br />
Gianni Infantino did not provide any<br />
concrete details on what such an offer<br />
would entail and which entity would<br />
have been behind it, we have no comment<br />
to make on the topic.”<br />
Mr Infantino’s comments were first<br />
reported by the New York Times, with<br />
further details on the proposed tournaments<br />
and joint venture reported<br />
by the Associated Press.<br />
Fifa, SoftBank and Centricus declined<br />
to comment.<br />
Mr Infantino was elected in 2016<br />
and has promised governance reform<br />
designed to clean up the organisation,<br />
following the arrest and prosecution<br />
of former Fifa executives related to<br />
bribery.<br />
But he has also been under pressure<br />
to restore profits at the organisation<br />
and was elected on the back of a<br />
promise to increase significantly the<br />
so-called development funds for more<br />
than 200 member nations.<br />
Under his tenure, Fifa has approved<br />
an expansion of the World Cup<br />
from 32 teams to 48, which is expected<br />
to generate more in broadcasting,<br />
ticketing and sponsorship revenues.<br />
He is up for re-election when his term<br />
ends next year.
A2 BUSINESS DAY<br />
C002D5556 Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
FT<br />
Chemical weapons agency<br />
backs UK findings...<br />
NATIONAL<br />
US futures tip higher open for Wall Street<br />
PETER WELLS<br />
US stocks look set to follow<br />
European peers higher at<br />
the open on Thursday as<br />
investors continue to assess the<br />
potential for conflict between the<br />
US and Russia over the weekend’s<br />
alleged chemical weapons attack<br />
Continued from page A1<br />
made available to 192 state parties,<br />
including Russia.<br />
The OPCW said the toxic chemical<br />
“was of high purity” — lending credence<br />
to the UK’s argument that only<br />
a state with a sophisticated laboratory<br />
could realistically have deployed the<br />
chemical.<br />
In response, the Russian government<br />
repeated its assertion that<br />
Moscow had neither produced nor<br />
stored any chemical weapons, except<br />
those reported to the OPCW and subsequently<br />
destroyed under the body’s<br />
supervision.<br />
Georgy Kalamanov, Russia’s deputy<br />
minister of trade and industry,<br />
told Interfax: “Russia did not produce<br />
any poisonous substances other than<br />
those that were reported by Russia under<br />
the Convention for the Prohibition<br />
of Chemical Weapons in 1997. Therefore<br />
there are none in the stocks.”<br />
Moscow asked to be part of the<br />
OPCW’s investigation, but lost a vote<br />
among member states last week.<br />
Moscow also seized on comments<br />
last week by the head of Porton Down,<br />
Britain’s military laboratory, who said<br />
his team had not identified the precise<br />
source of the novichok used in the<br />
Salisbury attack.<br />
The British government responded<br />
that its tracing was based on<br />
intelligence showing that Russia has<br />
produced novichok in the past decade<br />
and experimented with its use for assassination.<br />
A key member of the Soviet research<br />
team that developed novichok<br />
in the 1970s and 1980s has also sided<br />
with the British government in its<br />
dispute with Moscow. Vladimir Uglev<br />
said he was sure the compound used<br />
was one of those his team had first developed<br />
in 1975, but cautioned that it<br />
would be impossible to prove beyond<br />
doubt where the Salisbury nerve agent<br />
had originated.<br />
The survival of the Skripals has<br />
been used to raise doubts about<br />
whether novichok could have been<br />
used in the poisoning. However, experts<br />
have said that the effect of the<br />
nerve agent would have depended<br />
on how they came into contact with<br />
it and in what form.<br />
The OPCW said it took “blood<br />
samples from the three affected<br />
individuals”, conducted “on-site sampling<br />
of environmental samples” at<br />
places where the chemical might<br />
have remained, and received splits<br />
of samples taken by the British authorities.<br />
It was also briefed by the UK<br />
government.<br />
Following the publication of the<br />
OPCW report on Thursday, Boris<br />
Johnson, UK foreign secretary, said:<br />
“There can be no doubt what was used<br />
and there remains no alternative explanation<br />
about who was responsible<br />
— only Russia has the means, motive<br />
and record.”<br />
“We will now work tirelessly with<br />
our partners to help stamp out the grotesque<br />
use of weapons of this kind and<br />
we have called a session of the OPCW<br />
executive council next Wednesday to<br />
discuss next steps,” he added. “The<br />
Kremlin must give answers.”<br />
in Syria.<br />
Futures for the S&P 500 are up<br />
0.5 per cent, while those for the<br />
Dow Jones Industrial Average and<br />
Nasdaq 100 are 0.6 per cent higher.<br />
Treasuries have retreated<br />
slightly alongside the slightlyimproved<br />
sentiment in markets,<br />
with the yield on the benchmark<br />
10-year US Treasury up 0.5 basis<br />
points to 2.7954 per cent. Yields<br />
move in the opposite direction to<br />
bond prices.<br />
Investors have been weighing<br />
the potential impact should the<br />
US proceed with a military strike<br />
on Syria after an alleged chemical<br />
weapons attack took place near<br />
Damascus on the weekend.<br />
Day-to-day reactions by investors<br />
have varied this week, but Wall<br />
Street spent most of Wednesday<br />
in the red after Donald Trump’s<br />
warning to Russia, which supports<br />
Syria’s government, to “get ready”<br />
for a military strike on the Middle<br />
Eastern country heightened the<br />
St Marylebone sixth formers (from left) Bryony Jones, Sophia Hood-Sargent, Kawthar Msrar, Zaira Khanzada and<br />
Emily Lee-Williams © Charlie Bibby/FT<br />
Where are all the female economists?<br />
Few women reach senior positions — and the root of the problem lies in education<br />
GEMMA TETLOW<br />
Economics affects everyone and<br />
people need to know more<br />
about it, says 18-year-old Emily<br />
Lee-Williams, who is studying the<br />
subject at St Marylebone, an inner-<br />
London state school. “But it seems<br />
quite intimidating in the media. . . If<br />
you think of an economist, you think<br />
of a rich man in a business suit who<br />
is so much higher up than you are.”<br />
Many in the profession are worried<br />
that too few women work in economics<br />
at senior level. But only recently<br />
has the source of much of the problem<br />
been identified: women are far less<br />
likely than men to study economics,<br />
let alone pursue a career in it.<br />
Just over a third of undergraduate<br />
economics students in the UK are<br />
women (overall, 57 per cent of undergraduates<br />
are women). The picture is<br />
similar in Australia and the US.<br />
“My initial thinking was that for<br />
some reason female economists<br />
were out there but not applying to the<br />
Government Economic Service,” said<br />
Osama Rahman, who jointly leads<br />
a team trying to boost the number<br />
of women among the ranks of UK<br />
civil service economists. “It was only<br />
later I realised there was a problem<br />
with women not choosing to study<br />
economics.”<br />
The subject was once at the forefront<br />
of women’s educational emancipation.<br />
The first coeducational university<br />
lecture in the UK was conducted<br />
by a professor of political economy<br />
at University College London in 1871.<br />
But, while other traditionally male<br />
subjects such as engineering have<br />
made progress in attracting women,<br />
economics has struggled.<br />
Image problem<br />
One explanation frequently given<br />
for why so few women study economics<br />
is that the mathematical nature of<br />
the subject puts them off. This does<br />
not stand up to scrutiny, as the share<br />
of women among maths undergraduates<br />
exceeds that in economics.<br />
But economics does have an image<br />
problem. Kawthar Msrar at St<br />
Marylebone school says: “It is still<br />
seen as a very male-oriented job;<br />
there is not a widespread realisation<br />
yet that girls can do it, too.” Her<br />
classmate Bryony Jones agrees: “As a<br />
mixed race woman, I don’t see anyone<br />
who looks like me doing economics.”<br />
Elinor Ostrom (1933-2012) remains<br />
the only woman to have been<br />
awarded the Nobel Prize in Economics.<br />
Rachel Griffith, professor of economics<br />
at Manchester University, will<br />
next year become only the second female<br />
president of the Royal Economic<br />
Society since its creation in 1890. The<br />
American Economic Association has<br />
gone only one better during its <strong>13</strong>3-<br />
year history.<br />
Another issue is the mistaken<br />
belief that economics is about money<br />
and forecasting. Claudia Goldin, a<br />
professor of economics at Harvard,<br />
plays the “Uber game”: “take an Uber,<br />
tell the driver you’re an economist,<br />
and nine times out of 10 they will ask<br />
you to predict the economy or the<br />
stock market.”<br />
In fact, economists work in a<br />
wide range of areas, from designing<br />
policies to improve child nutrition<br />
to examining the balance of power<br />
between employers and employees<br />
and the rise of “deaths of despair”<br />
among white working-class Americans.<br />
Economic practice — focusing<br />
on social policy issues — is another<br />
little-known field.<br />
The Australian, UK and US central<br />
banks have campaigns to encourage<br />
women to take up economics. And<br />
having just missed its targets for<br />
increasing the number of women in<br />
management positions, the European<br />
Central Bank is thinking about how<br />
it can encourage women to study the<br />
subject.<br />
In the UK, economics graduates<br />
rank second — behind graduates<br />
in medicine — in average earnings,<br />
according to data from the Institute<br />
for Fiscal Studies. Female economics<br />
graduates earned on average £20,000<br />
more a year a decade after graduation<br />
than creative arts graduates. But<br />
typically, women place less weight<br />
than men on financial return when<br />
choosing which subject to study.<br />
Economics majors were also more<br />
likely than those in any other subject<br />
to head an S&P500 company. Differences<br />
in career choice are an important<br />
factor driving the gender pay gap.<br />
Economists are influential in<br />
public policymaking, from setting<br />
monetary policy to designing systems<br />
to allocate donor organs. Here, “the<br />
under-representation of women matters<br />
because it affects what questions<br />
economists look at”, says Sarah Smith,<br />
a professor of economics at Bristol<br />
university and chair of the RES’s<br />
women’s committee. “Ultimately it<br />
affects the advice given on public<br />
policy issues.”<br />
There is no single explanation for<br />
the under-representation of women<br />
in economics. “Social norms that go<br />
back a long time may dictate who<br />
studies what,” says Homa Zarghamee<br />
of Barnard College in New York.<br />
Even when economics undergraduates<br />
do not pursue a career<br />
in the field, an understanding of<br />
the basics has benefits. “Everyone<br />
should be able to pick up and read a<br />
great newspaper,” says Prof Goldin.<br />
“If one of the goals of education is<br />
to be able to read and understand<br />
what’s in it and to be able to question<br />
economics critically, taking an<br />
elementary course in economics is<br />
extremely important.”<br />
That has been the experience of<br />
17-year-old Zaira Khanzada at St<br />
Marylebone school. “Since I was young,<br />
I would watch BBC News with my dad,<br />
and there would be so many things I<br />
did not understand,” says Ms Khanzada.<br />
“But studying economics has really<br />
helped; everything has clicked.”<br />
What works<br />
Many campaigns have sprung<br />
up to try to encourage women to<br />
study economics. Prof Goldin is<br />
co-ordinating a series of experiments<br />
across 20 US universities and<br />
colleges, including mentoring and<br />
improving knowledge of career paths<br />
for economists.<br />
tension.<br />
This morning, the US president<br />
tweeted he “never said when an<br />
attack on Syria would take place”<br />
adding it “could be very soon or<br />
not at all!”<br />
Germany’s Dax was up 0.7 per<br />
cent in afternoon trade, while London’s<br />
FTSE 100 was trading flat.<br />
Macron says<br />
there is proof<br />
chemicals used in<br />
Douma attack<br />
French president waits for more information<br />
before deciding on launching strikes<br />
ANNE-SYLVAINE CHASSANY,<br />
KATHRIN HILLE AND<br />
REBECCA COLLARD<br />
Emmanuel Macron said that<br />
France has proof that chemical<br />
weapons were used by the<br />
Syrian regime in an attack on a rebel<br />
holdout near Damascus that has<br />
triggered threats of western military<br />
action against the Arab state.<br />
But the French president added<br />
that Paris would only decide whether<br />
to launch strikes against Syria when<br />
it had received more information.<br />
“We will make decisions in due<br />
time,” Mr Macron said in an interview<br />
with French television on<br />
Thursday.<br />
Both France and the UK have<br />
suggested that they are poised to<br />
support any military action taken by<br />
the US in response to the suspected<br />
gas attack in Douma, which killed<br />
more than 40 people. On Thursday,<br />
the UK will hold an emergency<br />
cabinet meeting to formulate its<br />
response.<br />
Donald Trump on Wednesday<br />
warned Russia, which intervened<br />
militarily in the Syrian conflict to<br />
back President Bashar al-Assad, to<br />
“get ready” for a missile attack. At the<br />
start of the week, the US president<br />
said he would make a decision on<br />
whether to take military action in<br />
24 to 48 hours.<br />
But on Thursday, Mr Trump appeared<br />
to backtrack on the timing<br />
of any attack. “Never said when an<br />
attack on Syria would take place.<br />
Could be very soon or not so soon<br />
at all!” he said in a tweet.<br />
Mr Macron, who has had at least<br />
two telephone conversations with<br />
Mr Trump since the attack in Douma<br />
on Saturday, has previously said that<br />
the use of chemical weapons would<br />
be a “red line” that would prompt an<br />
“immediate response from France”.<br />
He said on Thursday that he would<br />
do everything to “avoid military<br />
escalation in the region”.<br />
The prospect of western military<br />
action in Syria had raised concerns<br />
about the risk of a direct confrontation<br />
between Russia and the US. But<br />
the Kremlin said on Thursday that a<br />
hotline set up with the US to avoid<br />
accidental clashes over Syria was<br />
still active despite the rising tension.<br />
Dmitry Peskov, president Vladimir<br />
Putin’s spokesman, told reporters<br />
that the so-called de-confliction<br />
mechanism was “being used by<br />
both sides”. Mr Peskov reiterated an<br />
appeal to the US to “avoid any steps<br />
that could lead to increased tension<br />
in Syria”.<br />
“We believe that this would have<br />
an extremely destructive effect on<br />
the entire Syrian settlement process,”<br />
he said.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
FINANCIAL TIMES<br />
COMPANIES & MARKETS<br />
@ FINANCIAL TIMES LIMITED<br />
Stocks gain ground as<br />
Middle East jitters ebb<br />
Oil prices retreat in choppy trading, gold slides<br />
STEPHEN SMITH AND KATE ALLEN<br />
What you need to know<br />
• Wall Street opens positively<br />
and European markets<br />
also moving higher<br />
• Oil prices choppy amid Middle<br />
East tension<br />
• Dollar firmer as investors digest<br />
Fed minutes, euro slides<br />
• Rouble strengthens after sanctions-driven<br />
slide<br />
• Bourses down in Asia after weak<br />
lead overnight from US<br />
“Markets are moving from the<br />
relief that the trade war rhetoric has<br />
stepped back for now to a realisation<br />
that the Middle East rhetoric<br />
is stepping up,” said Jim Reid of<br />
Deutsche Bank.<br />
“The short-term geopolitical<br />
fear has been the dominant theme<br />
over the last 24 hours, overshadowing<br />
an in-line US CPI [inflation]<br />
print and a slightly hawkish set of<br />
Fed minutes.”<br />
Hot topic<br />
Wall Street stocks are higher and<br />
European markets are folding on<br />
to early gains after Asian bourses<br />
followed Wednesday’s dip lower<br />
amid continued rumblings of geopolitical<br />
tension in the Middle East.<br />
The benchmark S&P 500 is up<br />
1 per cent at 2,669 while the Dow<br />
Jones Industrial Average is 1.3 per<br />
cent higher.<br />
The Europe-wide Stoxx 600 is 0.7<br />
per cent stronger while Germany’s<br />
Xetra Dax is up 1.1 per cent and<br />
London’s FTSE 100 is 0.1 per cent<br />
firmer.<br />
Russian equities are rallying after<br />
a tumultuous start to the week.<br />
But the dollar-denominated RTS<br />
stock gauge is off 10.4 per cent over<br />
the course of the week against a 4<br />
per cent fall for the rouble-denominated<br />
Moex.<br />
Overnight on Wall Street, the<br />
S&P 500 shed 0.6 per cent amid<br />
the heightened geopolitical tension<br />
and after the minutes from US<br />
policymakers’ latest meeting indi-<br />
ANDREW EDGECLIFFE-JOHNSON<br />
Hearst has agreed to pay<br />
$2.8bn to buy out its French<br />
partner in Fitch Group, the<br />
privately owned US media group<br />
said on Thursday, increasing its<br />
focus on credit ratings and other<br />
financial information services.<br />
The all-cash purchase, for which<br />
Hearst has not had to raise new<br />
financing, makes Fitch Hearst’s largest<br />
wholly-owned business.<br />
“Fitch CEO Paul Taylor has built<br />
a great team that has delivered impressive<br />
growth in the ratings and<br />
information services businesses,”<br />
Steven Swartz, chief executive officer<br />
of the New York group, said in<br />
a statement.<br />
The deal brings to an end what<br />
Mr Swartz called “an excellent partnership”<br />
with Fimalac, the holding<br />
cated that Federal Reserve officials<br />
were considering the possibility of<br />
steeper interest rate rises.<br />
Asian equities staged an early<br />
climb that later crumbled, leaving<br />
the Hang Seng benchmark 0.2 per<br />
cent lower on the day. Shares in Chinese<br />
state-owned oil firms rose but<br />
that was more than offset by a fall<br />
in tech stocks. The Shanghai Composite<br />
closed 0.9 per cent lower. In<br />
Tokyo, the Topix index finished off<br />
0.4 per cent.<br />
New Zealand stocks on the<br />
NZX 50 closed 0.6 per cent lower<br />
after the country’s prime minister<br />
announced it would ban future offshore<br />
oil and gas exploration.<br />
Commodities<br />
Oil benchmarks are lower again<br />
after bouncing off earlier dips.<br />
International benchmark Brent<br />
crude briefly rose above $73 a barrel<br />
on Wednesday to its highest<br />
level for nearly four years after US<br />
president Donald Trump warned<br />
Russia to “get ready” for US missiles<br />
to be fired at Syria and reports that<br />
Saudi Arabia’s air defences had intercepted<br />
a “rocket” above Riyadh.<br />
Brent then pulled back later in<br />
the Wednesday session from a peak<br />
of $73 a barrel to dip below $72.<br />
Trading on Thursday has seen the<br />
global benchmark move between<br />
gains and losses, currently down<br />
1 per cent on the session at $71.36<br />
a barrel.<br />
US marker West Texas Intermediate<br />
is 0.9 per cent lower on the<br />
day at $66.20.<br />
Gold is down 1.1 per cent, or $14,<br />
at $1,338 an ounce after touching<br />
$1,365 on Wednesday.<br />
Forex and fixed income<br />
The dollar index, which measures<br />
the greenback against a basket<br />
of other currencies, is up 0.4<br />
per cent. Sterling is 0.1 per cent<br />
higher against the dollar at $1.4193<br />
while the euro is down 0.5 per cent<br />
at $1.2302 — unsettled by some<br />
disappointing eurozone industrial<br />
production data.<br />
Hearst pays $2.8bn to take full<br />
control of Fitch Group<br />
company for French billionaire Marc<br />
Ladreit de Lacharrière.<br />
Hearst bought its first 20 per cent<br />
stake in Fitch from Fimalac in 2006<br />
for $592m, and spent another $2.6bn<br />
increasing its holding to 80 per cent<br />
between 2009 and 2014.<br />
The company noted that Fitch<br />
had diversified in recent years, and<br />
now derived more than 20 per cent<br />
of its revenues from data products<br />
unrelated to its core ratings business,<br />
where it competes with the larger<br />
Moody’s and Standard & Poor’s.<br />
Hearst is still best known for<br />
newspapers such as the Houston<br />
Chronicle and magazines such as<br />
Cosmopolitan but has stakes in television<br />
networks from A&E to ESPN,<br />
television stations from Boston to<br />
Sacramento, and investments in<br />
digital media companies including<br />
BuzzFeed and Vice.<br />
C002D5556<br />
BUSINESS DAY<br />
S&P warns of risks in leveraged loan market as deals surge<br />
A3<br />
Limited investor security in debt agreements seen ending badly as credit cycle peaks<br />
ERIC PLATT<br />
and Europe, and that companies and rower friendly terms, setting the<br />
private equity firms were willing to stage for lower recovery values if<br />
pay more to clinch deals than at any companies subsequently default.<br />
S&P Global has warned investors<br />
in the $1tn leveraged loan Paul Draffin, analyst at S&P said: tections in a bond or loan document<br />
time since at least 2003 in the US. The quality of covenants — the pro-<br />
market that weak lending terms “History shows us that the worst debt that can limit the amount of debt a<br />
pose a risk as the credit cycle approaches<br />
a peak and deal making has times . . . Now is the perfect time to it can pay its equity investors in<br />
transactions are done at the best of borrower can take on or how much<br />
surged in recent months.<br />
be cautious.”<br />
dividends — has steadily weakened<br />
While a number of high-profile Scott Roberts, the head of high in recent years.<br />
investors have warned of the risks yield at Invesco, said the recent “We’ve already seen weaker<br />
of leverage in the $8.8tn US corporate<br />
bond market, money continues could spark additional M&A activ-<br />
[over] the last couple of years,” Beth<br />
declines in the US stock market terms continuously deteriorating<br />
pouring into the US loan market, ity, coaxing private equity buyers MacLean, a bank loan portfolio<br />
where interest rates are floating and who had been sidelined by the high manager with Pimco, said of covenant<br />
packages. “I’m not sure the<br />
adjust higher as the Federal Reserve equity valuations back to the market.<br />
tightens policy. Bank loan funds have PE firms are sitting on record “drypowder”<br />
of $1.7tn, money they have However, Rob Cignarella, who<br />
market can tolerate much worse.”<br />
attracted more than $3bn of money<br />
this year, following 2017’s $15bn raised to fund takeovers, according heads global leveraged finance in<br />
haul, according to EPFR.<br />
to data provider Preqin.<br />
asset manager PGIM’s fixed-income<br />
That has bolstered confidence “Despite the equity volatility, business, noted that the market had<br />
among dealmakers that they can the high yield and leveraged loan yet to see the kind of leveraged buyout<br />
activity that occurred between<br />
finance mergers and acquisitions. markets are still open to finance<br />
Takeovers worth more than $1.2tn these deals,” said Mr Roberts. “There 2006 and 2007, when a string of<br />
have been announced so far this is a ton of [private equity] capital $10bn-plus private-equity backed<br />
year, up more than 45 per cent from chomping at the bit and a leveraged takeovers were struck. Even with a<br />
a year prior, Dealogic data shows. loan market still looking for paper.” recent uptick in volatility, he said it<br />
The New York-based rating agency<br />
warned that leverage was ap-<br />
raised the risk that a flurry of deals to risk assets. One warning sign he<br />
That kind of backdrop S&P said was “hard” to reduce his exposure<br />
proaching or exceeding levels seen could be financed with limited would look for though: over-leveraged,<br />
PE-backed before the financial crisis in the US investor security packages and bor-<br />
LBOs.<br />
UK consumer credit drops ‘significantly’<br />
Changing appetite to risk and a lending squeeze cools market in first quarter<br />
GAVIN JACKSON<br />
The availability of consumer<br />
credit dropped “significantly”<br />
in the first quarter<br />
of <strong>2018</strong>, according to a survey of<br />
credit conditions published on<br />
Thursday by the Bank of England.<br />
A net 38.7 per cent of lenders<br />
reported that the availability of<br />
unsecured consumer credit —<br />
such as credit card lending and<br />
overdrafts — fell during the three<br />
months to the end of March, compared<br />
with the previous quarter.<br />
“The availability of unsecured<br />
credit to households was reported<br />
to have decreased significantly in<br />
Q1,” the BoE wrote in its report.<br />
“This was largely driven by a<br />
changing appetite to risk, with<br />
lenders also reporting that the<br />
credit scoring criteria for granting<br />
both credit card and other unsecured<br />
loan applications tightened<br />
significantly in Q1.”<br />
Consumer borrowing has<br />
helped to keep the UK economy<br />
growing following the June 2016<br />
EU referendum, as households<br />
have borrowed or dipped into<br />
savings in order to maintain their<br />
living standards as prices have<br />
risen faster than incomes.<br />
However, the increase in borrowing<br />
has also worried economists<br />
and regulators.<br />
“The credit conditions survey<br />
for the first quarter of <strong>2018</strong> should<br />
go down pretty well at the Bank of<br />
England given its view that recent<br />
rapid growth in consumer credit<br />
has created a ‘pocket of risk’,” said<br />
Howard Archer, chief economic<br />
adviser to the EY ITEM Club.<br />
“The Bank of England has also<br />
warned that banks risk becoming<br />
complacent in their lending<br />
behaviour so it should take some<br />
comfort from banks reportedly<br />
tightening their lending standards<br />
for granting unsecured consumer<br />
credit,” he added.<br />
Previous studies by the BoE and<br />
others have found that much of<br />
the rise in borrowing over the past<br />
year has been by those on higher<br />
incomes using credit cards or buying<br />
new cars on credit.<br />
The BoE interviewed banks and<br />
building societies between February<br />
19 and March 9 to compile the<br />
report. The central bank weighted<br />
their responses to reflect their<br />
market share.<br />
Recommended<br />
Analysis High yield bonds<br />
UK’s high-yield high street<br />
struggles under hefty debt load<br />
The lenders said they expected<br />
the availability of consumer credit<br />
to remain virtually unchanged<br />
over the second quarter of the<br />
year. It was the first time respondents<br />
to the survey had not expected<br />
unsecured credit to become<br />
less available over the next three<br />
months since late 2016.<br />
Lenders also reported defaults<br />
on unsecured credit had increased<br />
during the first quarter of the year,<br />
and said they were expected to<br />
increase again during the second<br />
quarter. Defaults were increasing<br />
slower on credit cards than on<br />
other kinds of loans.<br />
Separate figures published on<br />
Thursday by the Office for National<br />
Statistics said that the proportion<br />
of cash saved by households had<br />
fallen to 0.9 per cent in 2017, the<br />
lowest cash savings ratio since<br />
2009.
A4 BUSINESS DAY<br />
C002D5556 Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
FT<br />
ANALYSIS<br />
How a volatility virus infected Wall Street<br />
The collapse of a few small funds in February helped fuel a terrifying stock-market slide. Why?<br />
ROBIN WIGGLESWORTH<br />
Music teacher Chris<br />
Pomrink was driving<br />
between two lessons<br />
outside Philadelphia,<br />
when a friend<br />
called with some distressing news:<br />
“Hey Chris, XIV is in trouble.”<br />
Pomrink, 30, checked his trading<br />
account. It was February 2 and<br />
XIV — an arcane, fiendishly complex<br />
financial security that he had sunk<br />
$2,500 into earlier that week — had<br />
indeed taken a beating. The “exchange-traded<br />
note”, or ETN, which<br />
allowed traders to bet on the US stock<br />
market remaining tranquil, had made<br />
Pomrink a bundle of money after he<br />
stumbled across it on a site for traders<br />
back in 2015, so he decided to keep<br />
the faith. But worse was to come after<br />
the weekend.<br />
On February 5, the mounting<br />
bout of market volatility suddenly<br />
shredded XIV, in a day so torrid<br />
that traders have since dubbed it<br />
“vol-mageddon”. This can’t be real,<br />
Pomrink recalls thinking. By the time<br />
he woke up the next morning, the<br />
ETN had lost 94 per cent of its value<br />
and its manager announced plans<br />
to shutter the fund entirely. “I just<br />
couldn’t decipher it,” Pomrink says.<br />
“It was pretty brutal.”<br />
Ruing the mishap, he enlisted his<br />
friend Zubair Latib — a fellow daytrading<br />
musician who had cashed<br />
out his $6,000 from XIV just four days<br />
before its implosion — and wrote<br />
a lament, set to the melody of Tom<br />
Petty’s “Free Fallin’”.<br />
“It’s a long day, watching a correction,<br />
the S&P crashing through<br />
the floor. I bought the XIV, ’cause I’ll<br />
make my money back. I’m a bad boy,<br />
’cause I bought even more. Now XIV<br />
is free falling. Yeah, XIV is free falling,”<br />
they sang mournfully on a video they<br />
quickly uploaded to YouTube.<br />
For Pomrink, the blow was surviv-<br />
able, merely wiping out the gains he<br />
had made trading XIV in 2017. But<br />
for markets, it was more serious. The<br />
collapse of XIV and two other similar<br />
funds exacerbated the turmoil, turning<br />
what could have been a normal,<br />
even healthy reversal into a terrifying<br />
slide. The US stock market suffered<br />
one of the swiftest 10 per cent slumps<br />
in history, and global equities lost<br />
$4.2tn that week. In terms of dollars,<br />
that is more than the total losses suffered<br />
by the Nasdaq index when the<br />
dotcom bubble burst.<br />
Volatility is an inevitable part<br />
of financial markets. But XIV and a<br />
handful of similar funds held only<br />
$3bn ahead of that fateful Monday.<br />
Why did the collapse of such small,<br />
little-known funds help to fuel the<br />
wider carnage?<br />
At its heart, this is an eerily familiar<br />
tale of Wall Street innovation,<br />
greed and hubris. It is a story of a good<br />
idea overdone, of financial engineers<br />
creating something new, lucrative<br />
and potentially dangerous for hedge<br />
funds, insurers, banks and ordinary<br />
investors to trade — arguably making<br />
the global financial system more<br />
fragile in the process.<br />
Over the past six decades, volatility<br />
has come to dominate risk-management<br />
models across the finance<br />
industry. At the same time, a motley<br />
crew of academics and investment<br />
bankers have turned volatility itself<br />
into something that can be sliced<br />
and diced, bought and sold, just like<br />
any bond, stock or barrel of oil. This<br />
has arguably created a potentially<br />
dangerous feedback loop, one that<br />
makes markets even more prone to<br />
booms and busts.<br />
Eric Lonergan, a fund manager<br />
at M&G Investments, compares the<br />
use of volatility as a proxy for risk to<br />
a “virus” that has infected the entire<br />
finance industry and gradually “corrupted”<br />
its behaviour. “It is absolutely<br />
everywhere now,” he says. “It makes<br />
intelligent people make clearly stupid<br />
decisions.”<br />
The tale of how volatility conquered<br />
Wall Street features multiple<br />
Nobel laureates, a plethora of investment<br />
bankers and Mark Cuban,<br />
the billionaire owner of the Dallas<br />
Mavericks basketball team. But the<br />
genesis was arguably the intellectual<br />
ferment of the University of Chicago’s<br />
famed economics department six<br />
decades ago.<br />
Growing up in Chicago in the<br />
1930s and 1940s, Harry Markowitz<br />
enjoyed baseball and football, playing<br />
the violin and reading philosophy,<br />
especially David Hume and René<br />
Descartes. The bookish son of two<br />
grocers had little interest in the world<br />
of money.<br />
Yet after his undergraduate degree<br />
at the University of Chicago,<br />
Markowitz decided to stay on and<br />
pursue a graduate degree in economics,<br />
studying under legends such as<br />
Milton Friedman. “Descartes was<br />
a big inspiration, so when I went<br />
into economics I naturally gradually<br />
gravitated towards the economics<br />
of uncertainty,” he recalls. “It was a<br />
wonderful time.”<br />
In 1950, a chance meeting set<br />
Markowitz on the path towards<br />
revolutionising how the investment<br />
industry functioned. For a long time,<br />
fund managers had been judged<br />
largely by their performance. People<br />
intuitively understood that riskier<br />
investments should generate higher<br />
returns to compensate for the dangers<br />
of losing their money, but there<br />
was little rigour to it. Then, while<br />
waiting for his university supervisor,<br />
Markowitz struck up a conversation<br />
with a visiting stockbroker, and<br />
realised he could apply some of his<br />
economic thinking to markets.<br />
The 25-year-old wrote a groundbreaking<br />
paper entitled “Portfolio<br />
Selection”. Published in the Journal<br />
of Finance in 1952, it argued that<br />
returns should be judged against,<br />
and optimised for, the amount of<br />
risk taken. Since risk can be a vague<br />
concept, Markowitz used “variance”,<br />
or volatility, as a handy proxy. For<br />
example, stocks are more volatile<br />
than bonds, so investors should<br />
expect better returns to justify the<br />
increased risk.<br />
While Markowitz was not the<br />
first to use volatility as a shorthand<br />
for risk, he was the first to put it in<br />
a rigorous framework, according to<br />
Richard Bookstaber, a former risk<br />
manager and adviser to the US Treasury<br />
who now works for the University<br />
of California. “What Markowitz<br />
did was to put it in the context of<br />
optimising for risk,” he says. “When<br />
I went to school in the 1970s, [his<br />
work] was ingrained into everything<br />
we did. It became self-evident that<br />
this was the way to look at the world.”<br />
Together with other insights<br />
— such as the importance of diversification,<br />
famously the only “free<br />
lunch” in markets — this became<br />
known as “modern portfolio theory”.<br />
Today it underpins much of the<br />
modern investing world. It also won<br />
Harry Markowitz, father of modern portfolio theory © Alamy<br />
Markowitz a Nobel prize in economics<br />
in 1990.<br />
“It happened in the twinkle of<br />
an eye,” he says. “People ask me if I<br />
knew I’d get a Nobel prize. I always<br />
say no, but I knew I’d get a PhD.”<br />
It was another Nobel prize-winning<br />
economist — and a disciple of<br />
Markowitz — who would ultimately<br />
inject volatility as a proxy for risk into<br />
the bloodstream of the investment<br />
industry. William Sharpe dropped<br />
out of Berkeley, where he was planning<br />
to study medicine, and pursued<br />
a degree in business administration<br />
at the University of California Los<br />
Angeles. Finding accounting a bore,<br />
he decided to major in economics,<br />
and was fascinated by Markowitz’s<br />
work, eventually pursuing a doctorate<br />
in which the older economist<br />
served as an informal adviser.<br />
Sharpe later taught at the University<br />
of Washington, and it was there,<br />
in 1966, that he published a seminal<br />
paper entitled “Mutual Fund Performance”.<br />
This introduced a rule that is<br />
still measured and cited by virtually<br />
every money manager as a yardstick<br />
for their skill. What became known<br />
as the “Sharpe ratio” was just a simple<br />
mathematical measure of what<br />
Sharpe called “reward to variability”.<br />
In other words, directly comparing<br />
the returns of a fund manager<br />
to the volatility of his performance,<br />
and subtracting the returns of a<br />
risk-free asset such as cash. Its simplicity<br />
means that almost every fund<br />
manager in the world still includes<br />
the Sharpe ratio in their investor<br />
prospectus.<br />
Despite the acclaim surrounding<br />
this academic work, it took some<br />
time before volatility-as-risk started<br />
to infect markets. Back in the 1960s<br />
and 1970s, accurate financial data<br />
were hard to get, and the rudimentary<br />
computers that were popping up on<br />
Wall Street were inadequate to the<br />
task of calculating the volatility of<br />
various markets or stocks. But all that<br />
began to change in the 1980s.<br />
Today, Till Guldimann runs a<br />
small, picturesque vineyard in Saratoga,<br />
California, where he grows a<br />
mix of Cabernet Sauvignon and Bordeaux<br />
grapes. Born in Switzerland,<br />
Guldimann dreamt of becoming a<br />
neurologist but decided he wouldn’t<br />
be very good at it and switched to<br />
electrical engineering. When he then<br />
thought he wouldn’t make a very<br />
good electrical engineer either, he<br />
took an MBA at Harvard and started<br />
working at JPMorgan.<br />
There he constructed a computer<br />
system to monitor major currency<br />
exchange rates minute by minute.<br />
This may seem humdrum in a world<br />
where a Google search can reveal<br />
instantaneous information for most<br />
currencies across the world, but at<br />
the time it was a huge leap. JPMorgan<br />
summoned him to New York<br />
and put him in charge of monitoring<br />
the bank’s exposure to the whims of<br />
markets. Fittingly for a vintner, he<br />
describes the job in agrarian terms.<br />
“Risk management relied on<br />
limits. So you told traders how many<br />
pigs or horses they could buy [to<br />
control their risk],” he says. “But it<br />
was hard to gauge the overall exposure<br />
. . . because we had to measure<br />
the relationship between pigs and<br />
horses. If you had $100 worth of<br />
horses on our books, and $50 of pigs,<br />
then the overall exposure might not<br />
be $150.”<br />
In other words, a bank had to<br />
know the “correlation” between<br />
bonds and stocks — or pigs and<br />
horses. Because bonds typically rally<br />
when stocks sell off, $150 worth of<br />
bond and equity exposure in practice<br />
tends to add up to less actual market<br />
exposure than the sums might imply.
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong> C002D5556 BUSINESS DAY<br />
A5
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
A6 BUSINESS DAY<br />
Live @ the Stock exchange<br />
Prices for Securities Traded as of Thursday 12 <strong>April</strong> <strong>2018</strong><br />
Company<br />
Company<br />
Market cap(nm) Price (N) Change Trades Volume Market cap(nm) Price (N) Change Trades Volume<br />
PRICES FOR MAIN BOARD SECURITIES (Equities)
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong><br />
C002D5556<br />
BUSINESS DAY<br />
A7<br />
BD<br />
Markets + Finance<br />
‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in<br />
today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’<br />
Dangote Flour Mills enhances value<br />
of investment as earnings spike<br />
BALA AUGIE<br />
Historical Background<br />
Dangote Flour<br />
Mills Plc commenced<br />
penetrations<br />
in<br />
1999, as a division<br />
of fastest growing conglomerates.<br />
Following 8the<br />
strategic decision of Dangote<br />
Industries Limited to unbundle<br />
its various operators,<br />
whereas Dangote Flour Mills<br />
Plc was incorporated in 2003.<br />
The rethinking was completed<br />
in January 2006 when<br />
the Federal High Court sanctioned<br />
a scheme of arrangement<br />
where in all the assets,<br />
liabilities and undertakings<br />
of the erstwhile flour division<br />
of Dangote Industries was<br />
transferred to Dangote Flour<br />
MillsPlc .<br />
From an installed capacity<br />
of 500 metric tonnes<br />
per day, at its Apapa mill,<br />
the company has expanded<br />
rapidly by opening in quick<br />
successions, three flour mills<br />
in Kano, Calabar and Ilorin.<br />
The Apapa Mill in Lagos,<br />
was commissioned in September<br />
1999, while the Kano<br />
Mill in June 2001. The Calabar<br />
Flour Mill was commissioned<br />
in July2002.<br />
The company currently<br />
has twelve million shares<br />
valued at N12.0 billion, with a<br />
fully paid up capital of N2.50<br />
billion while total shareholders’<br />
fund stood at N37.45<br />
billion as at December 2017.<br />
The mills are ideally located<br />
for the servicing of<br />
the various and diverse geographical<br />
markets, with the<br />
Lagos (Apapa) and the Calabar<br />
located within ports for<br />
easy facilitation of wheat<br />
imports through state-of-art<br />
ship off- loading equipment .<br />
The company recently<br />
released its audited results for<br />
the year ended December 31,<br />
2017; showing in created revenue<br />
when compared with<br />
the corresponding period of<br />
2016. There was an increase<br />
in gross profit, which means<br />
the company has effectively<br />
managed direct costs attributable<br />
to projects.<br />
Dangote Flour Mills has<br />
been recording stellar performance<br />
after re-acquiring the<br />
company from South Africa<br />
consumer goods giant, Tiger<br />
Brand Plc. Capital injection<br />
Aliko Dangote<br />
from the owner of the business<br />
help spur the consumer<br />
goods giant to growth.<br />
With this impressive performance,<br />
investors should<br />
expect to make good returns<br />
from Dangote Flour Mills.<br />
Increase in gross profit<br />
bouye by revenue growth<br />
The company recorded<br />
an increase of 18.60 percent<br />
in revenue to N125.44 billion<br />
in December 2017 from<br />
N105.70 billion as at December<br />
2016; driven by 31.97<br />
percent increase in revenue<br />
from flour to N107.81 billion.<br />
The growth at the top<br />
line can also be attributed<br />
to the company’s marketing<br />
and distribution strategies<br />
and its ability to harness the<br />
resources at its disposal.<br />
Cost of sales was up 18.31<br />
percent to N96.01 billion<br />
in the period under review<br />
from N81.15 billion as at<br />
December 2016. The higher<br />
production costs were due to<br />
volatility in the price of wheat<br />
at the international market,<br />
surging energy costs and the<br />
devaluation of the currency.<br />
Gross profit increased by<br />
9.20 percent to 29.43 percent<br />
to N29.46 billon in the period<br />
under review from N26.93<br />
billion the previous year. In<br />
other words, the company is<br />
efficient in managing direct<br />
costs attributable to projects.<br />
Increase in profits,<br />
thanks to gains from sale<br />
of assets<br />
For the year ended December<br />
2017, profit before tax<br />
increased by 17.80 percent to<br />
N22.43 billion from N19.04<br />
billion the previous year.<br />
The company realised<br />
N3.56 billion from the sale of<br />
assets, which helped underpin<br />
pre-tax profit.<br />
Profit after tax spiked by<br />
43.16 percent to N15.12 billion<br />
in December 2017 from<br />
N10.56 billion the previous<br />
year. Distribution and administrative<br />
expenses were<br />
up 28.73 percent to N12.05<br />
billion in the period under<br />
review from N9.36 billion the<br />
previous year.<br />
Finance costs were up<br />
1.42 percent to N2.84 billion<br />
in December 2017 from<br />
N2.80 billion as at December<br />
2016. Short term borrowings<br />
declined by 79.04 percent to<br />
N544.90 million in December<br />
2017 from N2.60 billion as at<br />
December 2016.<br />
Times interest coverage<br />
ratio stood at 15.33 times<br />
of operating profit, which<br />
means the consumer goods<br />
giant can pay interest expense.<br />
Inventories surged<br />
by 162.89 percent to N28.34<br />
billion in the period under<br />
review as against N10.78<br />
billion as at December 2016.<br />
Trade and other receivables<br />
reduced slightly by<br />
4.20 percent to N9 billion<br />
in the period under review<br />
from N9.40 billion the previous<br />
year.<br />
Trade and other payable<br />
increased slightly by 3.34<br />
percent to N16.78 billion in<br />
December 2017 from N16.24<br />
billion as at December 2016.<br />
Total borrowings were up<br />
92.16 percent to N69.62 billion<br />
in December 2017 from<br />
N36.23 billion the previous<br />
year. DFM has turned each<br />
of invested cash in sales in<br />
generating higher profit as<br />
net profit margins increased<br />
to 12.11 percent in December<br />
2017 from 11.61 percent as at<br />
December 2016.<br />
Dangote Flour Mills, others<br />
donate N70m threshers<br />
to wheat farmers<br />
Dangote Flour Mills and<br />
other flour millers donated<br />
50 units of multi-crop<br />
thresher machine worth N70<br />
million to wheat farmers to<br />
underpin Nigeria’s self-sufficiency<br />
in wheat production.<br />
Thabo Mabe, Managing<br />
Director and Chief Executive<br />
Director of Dangote Flour<br />
Mills of Nigeria, made the<br />
disclosure at the presentation<br />
of the equipment in<br />
Lagos.<br />
Mabe said that the new<br />
machine will help reduce<br />
costs and improve yields,<br />
hence increasing the amount<br />
of yields farmers get per hectare<br />
of land. He added that the<br />
yields will go up and costs will<br />
come down.<br />
“We are working assiduously<br />
to ensure that Nigeria<br />
attains self-sufficiency<br />
in wheat production. Our<br />
company has bought about<br />
3000 tonnes of wheat from<br />
local farmers. We need to<br />
make sure that we get local<br />
wheat for bread spaghetti and<br />
bread,” said Mabe.<br />
John Coumantaros,<br />
the Chairman, Flour Milling<br />
Association of Nigeria<br />
(FMAN), represented<br />
by Paul Gbededo, Group<br />
Managing Director, Flour<br />
Mills Nigeria Ltd., said<br />
that the presentation was<br />
a demonstration of the association’s<br />
commitment<br />
to continuously support<br />
wheat farmers and Federal<br />
Government’s agriculture<br />
promotion agenda.<br />
“There is no gainsaying<br />
that self-sufficiency in<br />
the production of wheat<br />
in Nigeria will have an unprecedented<br />
impact on the<br />
Nigerian economy through<br />
attainment of food security,<br />
poverty reduction and of<br />
course, save much needed<br />
foreign exchange,” he said.<br />
Coumantaros said that the<br />
association signed an MoU<br />
with Wheat Farmers Association<br />
of Nigeria in 2016 to<br />
purchase all available wheat<br />
grain produced by farmers<br />
in line with agreed quality<br />
parameters and prevailing<br />
market prices.<br />
“In 2017, FMAN fulfilled<br />
its promise by purchasing<br />
over 2,400 metric tons of<br />
wheat valued at N469 million.<br />
“In <strong>2018</strong>, even before<br />
the start of harvest, we have<br />
purchased over 1600 metric<br />
tons of wheat valued at N237<br />
million.<br />
BD MARKETS + FINANCE (Business Team lead: PATRICK ATUANYA - Analysts: BALA AUGIE and LOLADE AKINMURELE)
A8<br />
BUSINESS DAY<br />
C002D5556<br />
Friday <strong>13</strong> <strong>April</strong> <strong>2018</strong>
BUSINESS DAY<br />
Friday <strong>13</strong>, <strong>April</strong> <strong>2018</strong><br />
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2 BUSINESS DAY<br />
Friday <strong>13</strong>, <strong>April</strong> <strong>2018</strong><br />
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ANALYSIS<br />
Stories by Anthony Nlebem<br />
…excess of $100 million predicted<br />
for 2015-<strong>2018</strong> World Cup cycle.<br />
… forecasts $6.65 billion from 2022<br />
World Cup in Qatar<br />
The Federation Internationale de Football Association<br />
(FIFA), a global soccer governing body, in a recent<br />
council meeting in Bogota, Colombia released its 2017<br />
financial statement with a net loss report of $191.5 million.<br />
The report showed that FIFA was $300 million over budget,<br />
which the governing body said was due to successful sales and effective<br />
operations and that the result will lead to sufficient financial<br />
resources for football development.<br />
Expenses were well under control with savings against the budget<br />
totalling $180 million, and FIFA says the report proves a ‘healthy<br />
and sustainable financial position.’<br />
A positive result in excess of $100 million is predicted to be<br />
achieved for the 2015-<strong>2018</strong> World Cup cycle.<br />
The 2017 loss is lower than forecast by the governing body in its<br />
2016 financial report, which predicted a $489 million loss before<br />
tax and financial outturns.<br />
FIFA affirmed that 2017 was a successful year for all key financial<br />
parameters with higher than expected revenues from sales of<br />
broadcasting, marketing and licensing rights.<br />
The organisation said that, of the total revenue of the $5656 million<br />
budgeted for the 2015-18 cycle, US$555 million had already<br />
been a contracted one year prior to the end of the cycle, with significant<br />
revenue items including World Cup tickets and hospitality<br />
yet to be accounted for.<br />
A new revenue standard adopted by the governing body means<br />
that the vast majority of revenue and expenses related to the <strong>2018</strong><br />
World Cup will be allocated to the current financial year, which<br />
ought to produce a very large surplus.<br />
Analyst revealed that soccer governance costs came in below<br />
budget due in part to FIFA’s Early Warning System match-fixing<br />
detection operation being outsourced. It was announced in early<br />
2017 that FIFA had hired the specialist firm Sportradar in place of<br />
its own detection division.<br />
The 2017 FIFA Confederations Cup suffered from low-ticket<br />
sales, producing revenue of only $22 million, while expenses for<br />
the competition were put at $142 million.<br />
However, the 2017 Club World Cup, an annual men’s soccer competition<br />
that pits seven sides from six confederations in a straight<br />
knock-out format, made larger revenues than expected, with expenses<br />
at $21 million, while revenue was $37 million.<br />
Meanwhile, FIFA has said it expects to earn $6.65 billion in the<br />
four-year financial cycle leading up to the 2022 World Cup in Qatar,<br />
despite a $75 million drop in ticket and corporate hospitality<br />
sales compared to 2015-18 due to the smaller stadiums used for the<br />
national team event.<br />
The soccer governing body says that the low number of venues<br />
and reduced local travel requirements associated with Qatar 2022,<br />
as well as the “restructuring of operational management” are helping<br />
to contain costs. Overall savings in comparison to this year’s<br />
tournament are put at about $300 million.<br />
FIFA’s 2019-2022 budget projects rises of more than $400 million<br />
in each in broadcasting and marketing income over the <strong>2018</strong><br />
World Cup in Russia.<br />
The organisation plans to spend $6.46 billion from 2019-2022,<br />
including a $250,000 annual raise for member associations, with<br />
each to get $1.5 million annually, and says it expects to end the<br />
2022 World Cup with reserves of $1.9 billion.<br />
“I am very pleased to see that FIFA is able to deliver on its promises,”<br />
said Gianna Infantino, president of FIFA. “We had committed<br />
to restoring trust in the organisation and boosting investments<br />
for the development of football worldwide. This is now a reality.<br />
FIFA’s financial situation is very solid thanks to the growing interest<br />
from our partners. This has allowed us to roll out our Forward<br />
development programme successfully, raising the support to all<br />
member associations and confederations to unprecedented levels.”<br />
Editor:<br />
Anthony Nlebem<br />
Tel: +234 803 836 9508<br />
Email: tony@businessdayonline.com<br />
Designed by:<br />
Aderemi Ayeni<br />
Tel: +234 703 435 2828<br />
Email: aderemi.ayeni@businessdayonline.com
Friday <strong>13</strong>, <strong>April</strong> <strong>2018</strong><br />
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BUSINESS DAY<br />
3<br />
FIFA INCREASES<br />
<strong>2018</strong> WORLD CUP<br />
OFFERINGS TO<br />
$400M<br />
The winning team for this year’s World Cup in Russia<br />
will be awarded a record $38m (£29m) in prize<br />
money, after world football governing body FIFA<br />
boosted its financial offering to record levels.<br />
A total prize money pool of $400m represents a 12 per<br />
cent increase on the $358m paid out to teams at the 2014<br />
World Cup in Brazil, where victors Germany received $35m.<br />
The money is paid to a nation’s football association, who<br />
will have negotiated their own financial agreements with<br />
their players.<br />
FIFA president Gianni Infantino said the prize money<br />
increase represented “a positive sign in terms of the healthy<br />
financial situation of FIFA “, despite the organisation’s $369m<br />
loss in 2016.<br />
Each competing team will be paid $1.5m to cover preparation<br />
costs.<br />
Each of the 32 participating teams will be guaranteed<br />
a participation fee of $8m. Progressing through to the first<br />
knockout stage boosts the prize to $9m while a quarterfinal<br />
finish is worth $14m.<br />
In the much-derided third place play-off, $42m is shared<br />
between the two sides with the victor taking home $22m.<br />
Runners-up in the final can console themselves with a<br />
$25m prize as the winners enjoy their $38m.<br />
The final round of qualifying for the tournament takes<br />
place next month but 22 of the 32 competing nations have<br />
been confirmed, while some big names such as the USA and<br />
Holland have already failed to make the cut.<br />
FIFA WORLD CUP BRAND<br />
VALUE FROM 2012 TO 2017<br />
The statistic shows the brand value of the FIFA World Cup from 2012 to 2017.<br />
The FIFA World Cup had a brand value of 229 million U.S. dollars in 2017.<br />
300<br />
Brand value of the FIFA World Cup from 2012- 2017<br />
(in million US dollars)*<br />
FIFA 2002 TO 2014<br />
WORLD CUP PRIZE<br />
MONEY<br />
This statistic shows the prize money awarded<br />
to the winner of the FIFA World Cup from<br />
2002 to 2014. The winner of the 2014 World<br />
Cup was given 35 million in prize money.<br />
250<br />
Brand value in million US dollars<br />
200<br />
150<br />
100<br />
50<br />
0<br />
2012<br />
20<strong>13</strong><br />
2014<br />
2015<br />
2016<br />
2017<br />
Source: Forbes<br />
@Statista <strong>2018</strong><br />
Additional information:<br />
Worldwide: Forbes: 2012 - 2017
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BUSINESS DAY<br />
EAGLES BRAND SOARS<br />
ON BACK OF INVESTOR<br />
CONFIDENCE<br />
… Aiteo, Nigerian Breweries,<br />
Wapic, Coca Cola top list of<br />
investors<br />
ANALYSIS<br />
Since Nigeria qualified for this<br />
year’s FIFA World Cup in Russia,<br />
Nigerian football has seen a<br />
significant progress owing to more partnership<br />
from corporate investors.<br />
The coast looks clear for Nigeria at the<br />
FIFA World Cup in, as Nigeria Football<br />
Federation (NFF) is more motivated than<br />
ever. The Federation led by Amaju Melvin<br />
Pinnick has steps up its bid to attract formidable<br />
investors into Nigerian football,<br />
Super Eagles.<br />
No doubt, the Super Eagles have improved<br />
tremendously in their performance<br />
and have restored the confidence<br />
of esteemed Nigerian fans and attracted<br />
corporate attention that have shown interest<br />
to drive the nation’s senior soccer team<br />
to the next level.<br />
For instance, Aiteo Group in 2017<br />
signed a five-year mega sponsorship deal<br />
worth N2.5billion with the Nigeria Football<br />
Federation (NFF) to boost football<br />
development in the country.<br />
The deal has helped to alleviate the<br />
issues of non-payment of salaries of all<br />
national team coaches and bonus and<br />
allowances of Super Eagles World Cup<br />
qualifications and campaign.<br />
The Nigeria Football Federation and<br />
Nigerian Breweries Plc on Friday, February<br />
9th signed a five-year contract worth<br />
N2.2 billion aimed to support Nigerian<br />
football.<br />
Jordi Borrut Bel, NB Plc’s Managing<br />
Director/CEO pledged the total commitment<br />
of their establishments to every letter<br />
of the contract.<br />
Bel reiterated: “We are indeed delighted<br />
about this partnership between Nigerian<br />
Breweries plc and the Nigeria Football<br />
Federation (NFF). This relationship<br />
provides us an opportunity to celebrate<br />
the true Nigerian spirit that is fuelled by<br />
patriotism, passion and desire for victory,<br />
through the platform of Football.”<br />
NB Plc set to commit the sum of<br />
N450million to the relationship every<br />
year. Itemuagbor, a sports marketing titan<br />
who had brokered several relationships<br />
for Nigerian Football over the decades,<br />
said: “The important thing is not just the<br />
amount of money being paid as rights fee;<br />
it is the activation of the contract, which<br />
Nigerians Breweries and ourselves as the<br />
Sponsorship Agency are committed to doing<br />
in a big way.”<br />
Amaju Pinnick, president, Nigeria<br />
Football Federation (NFF), mentioned<br />
that the potential in Nigerian sports is<br />
limitless, adding, however, that the government<br />
needs to create enabling environment<br />
for sports industry to thrive.<br />
“Twenty-five years ago, the British government<br />
invested £200 million in the Premier<br />
League and today, the EPL is worth<br />
£8 billion. If we create enabling environment<br />
with proper structure, sports can<br />
contribute significantly to Nigeria’s GDP<br />
more than any other sector,” said Pinnick.<br />
“We must engage reputable brands to<br />
drive sponsorship for the national team. If<br />
every geopolitical zone concentrates on its<br />
strengths and harness them properly, Nigeria<br />
will fly the flags high at international<br />
competitions and thus get global attention<br />
for investors to come in and invest,” he<br />
added.<br />
The collaboration between AITEO<br />
and NFF is the latest in a series of partnerships<br />
that have delivered superior quality<br />
of football in Nigeria. So far, AITEO has<br />
paid the sum of $600,000 and N320 million<br />
to cover its contractual obligation of<br />
providing support to the technical crew<br />
of the Super Eagles for the whole of <strong>2018</strong>,<br />
well beyond the World Cup.<br />
FIFA President Gianni Infantino, said,<br />
“I was told that in Nigeria football is passion,<br />
but it is a lie because it is more than<br />
that. In Nigeria I was told that football is<br />
love, but it is a lie it is more than that. In<br />
Nigeria, football is life.”<br />
The Nigeria Football Federation and<br />
WAPIC Insurance plc recently signed an<br />
agreement worth N500million that conferred<br />
on the insurance giant the title of<br />
‘Official Insurance Services Provider and<br />
Co-Sponsor of the NFF.’<br />
The contract provides excellent safety<br />
and security for National Team players<br />
and officials while on duty and offer a well<br />
–paved route for them to have a better future<br />
through proper pension fund.<br />
Yinka Adekoya, Managing Director,<br />
WAPIC Insurance plc, affirmed that the<br />
company was excited to team up with Nigerian<br />
Football, given the huge role that<br />
football plays in nation –building and the<br />
excitement that it generates among the<br />
youth and adults alike.<br />
“The NFF is an organization that is<br />
making Nigeria proud through the excellent<br />
results of the National Teams and<br />
WAPIC is a top financial institution seeking<br />
to be the most enjoyable company to<br />
do business with and to become a top 20<br />
financial services institution in Nigeria by<br />
2019.”<br />
The agreement came only 48 hours after<br />
beverage behemoth Coca-Cola signed<br />
up as ‘Official Soft Drink and Co-Sponsor<br />
of the Nigeria National Teams,’ and Shehu<br />
Dikko, who is also NFF’s Strategy Committee<br />
head, confirmed to NFF hat more<br />
partnership agreements are on the way in<br />
the coming weeks.<br />
The move is gradually revamping the<br />
nations’ sports industry. It is about initiatives<br />
likely to impact not just a small crop<br />
of people, but also the generality of the<br />
populace. After all, football is one sport<br />
that unites us as a nation despite our tribal<br />
differences.
NEWS<br />
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BRAZIL TOP MOST<br />
VALUABLE TEAMS AT<br />
<strong>2018</strong> FIFA WORLD CUP<br />
FIFA eyes<br />
$1.85bn from<br />
TV rights<br />
The world most watched sports<br />
event the FIFA World Cup takes<br />
place this summer in Russia in<br />
June-July <strong>2018</strong>. Widely known as the biggest<br />
tournament in world football it also not only<br />
the most watched but with the biggest prize<br />
money at stake. 2014 World Cup in Brazil<br />
had larger viewing numbers than even the<br />
Olympics and we can expect similar results<br />
this time around. We take a look at all the<br />
TV channels broadcasting the FIFA World<br />
Cup matches in different parts of the world.<br />
FIFA has promised very extensive coverage<br />
details for this year’s world cup with<br />
greater emphasis on terrestrial TV with free<br />
coverage. FIFA sold the broadcasting rights<br />
international at a very healthy price and this<br />
will be the biggest international football TV<br />
rights deal of any competition where FIFA<br />
is set to generate around $1.85bn for the cycle<br />
of <strong>2018</strong> to 2022. Majority of the money<br />
comes from World Cup rights.<br />
Brazil is sending the most valuable team to this<br />
year’s FIFA World Cup <strong>2018</strong> in Russia. According<br />
to German transfer market portal Transfermarkt<br />
estimates that the 25 players on the team have a combined<br />
market worth of €673 million. Germany and France share<br />
the second spot with €636.5 million followed by Spain with<br />
€603.5 and Argentina completes the top five with €528.5<br />
players market value.<br />
The difference between the top three teams is that most<br />
of the Brazilian players don’t play in their home league (88<br />
percent), while only 41.7 percent of the German national<br />
players are employed abroad and 58.3 percent of the French<br />
players score their income in foreign leagues.<br />
Belgium (€503.8), England (€339), Croatia (€294.8),<br />
Portugal (€279.1) and Poland (€220.3) complete the top ten.<br />
England one of the World Cup teams with most players<br />
playing at home. Only 4.3 percent play on foreign pitches.<br />
Panama parades the cheapest national squad at a low<br />
value of €5.25 million.<br />
KAREMBEU SAYS<br />
NIGERIA HAS<br />
TEAM TO CAUSE<br />
STIR IN RUSSIA<br />
FIFA World Cup winner Christian<br />
Karembeu has tipped the Super<br />
Eagles of Nigeria to be one of the<br />
standout teams at the 21st FIFA World Cup finals<br />
taking place in Russia this summer.<br />
The Les Bleus legend, a member of France’s 1998<br />
World Cup –winning squad, made this assertion at<br />
a world press conference held in Abuja on Wednesday<br />
to welcome the original World Cup trophy to<br />
Nigeria. He is the FIFA Representative accompanying<br />
sport world’s most recognizable diadem on the<br />
fourth Coca-Cola FIFA World Cup Trophy Tour.<br />
“Yes, we know there are a number of strong African<br />
countries in the game but Nigeria has always<br />
been a great footballing nation, and they have an<br />
exciting team heading to the FIFA World Cup in<br />
Russia. I have played alongside and against so many<br />
Nigerian players and I can attest to their strength<br />
and ambition. I believe the present Super Eagles<br />
squad is capable of great things,” said.
6 BUSINESS DAY<br />
Friday <strong>13</strong>, <strong>April</strong> <strong>2018</strong><br />
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NEWS<br />
RUSSIAN POLICE SETS<br />
TOURIST UNITS AT<br />
HOST CITIES<br />
Russian tourist police has assured<br />
fans of maximum security at the<br />
FIFA <strong>2018</strong> World Cup.<br />
Russian Interior Minister Vladimir<br />
Kolokoltsev confirmed that the government<br />
has ordered tourist police units be set up in<br />
host cities of the <strong>2018</strong> FIFA World Cup Russia,<br />
the Ministry’s Spokesperson Irina Volk<br />
said.<br />
“Russian Interior Minister Vladimir<br />
Kolokoltsev has ordered some of the ministry’s<br />
agencies to form special tourist police<br />
units,” she said. “According to the minister’s<br />
decision, tourist police units will be established<br />
in St. Petersburg, Kazan and Sochi<br />
and included in the regional patrol guard<br />
before May 5,” Volk added.<br />
The ministry’s spokesperson added that<br />
special police detachments consisting of officers<br />
who are capable of communicating in<br />
foreign languages would be created in other<br />
World Cup host cities to ensure a roundthe-clock<br />
response to any incident. “In the<br />
near future, the Interior Ministry’s regional<br />
agencies will approve relevant regulations<br />
and introduce the necessary changes in the<br />
documents. The aforementioned units are<br />
going to include officers who are skilled in<br />
foreign languages. If necessary, staff will undergo<br />
additional courses,” Volk added.<br />
The newly formed tourist police’s priorities<br />
will be patrolling public places where<br />
foreign football fans will gather during the<br />
FIFA World Cup, assisting them in various<br />
matters and accepting their requests should<br />
any infractions take place.<br />
As for Moscow, tourist police have been<br />
operating in the Russian capital since 2014.<br />
The Moscow tourist police officers, who are<br />
fluent in English, French, Spanish and Chinese,<br />
predominantly ensure public security<br />
in pedestrian areas popular with foreign<br />
tourists.<br />
Total prize money for<br />
FIFA World Cup from<br />
1982 to 2014<br />
This statistic shows the total prize money at the FIFA World Cup finals<br />
between 1982 and 2014. In the latest World Cup held in Brazil in 2014, the<br />
total prize pot stood at 476 million U.S. dollars. The winner of the tournament<br />
will earn $35 million and the runner-up earned $25 million<br />
RUSSIA PREPARES<br />
SUPERCOMPUTER TO IMPROVE<br />
WEATHER FORECASTS<br />
Russia is setting up a<br />
supercomputer to improve<br />
weather forecasts<br />
ahead of this year’s FIFA<br />
World Cup finals.<br />
With the World Bank’s support,<br />
the world’s largest country<br />
has been working to improve its<br />
weather forecasting capabilities<br />
and use standards closer to those<br />
of leading forecasting centres.<br />
The need for timely and accurate<br />
weather information will<br />
be essential for the month-long<br />
tournament taking place across<br />
11 cities in Russia.<br />
The competition’s venues<br />
spread through Kaliningrad in the west to<br />
Ekaterinburg, 2,500 km (1,553 miles) away<br />
in the east, and Sochi on the Black Sea.<br />
Roman Vilfand, the head of state weather<br />
forecaster Hydrometcentre, told reporters that the<br />
country’s new supercomputer was expected to become<br />
operational in March.<br />
The tournament takes place from June 14 to July<br />
15.<br />
“Of course, we are preparing for this event (the<br />
World Cup),” he said<br />
“We are currently discussing the regulations for<br />
the data to be supplied to the organising committee.”<br />
Vilfand, who did not disclose the cost of the<br />
World Bank-funded supercomputer, added discussions<br />
were taking place about when to release<br />
match-day forecasts and how much detail they<br />
should contain.<br />
“I hope we will launch the first (weather forecasting)<br />
models with high resolution and then be<br />
able to describe weather in great detail,” he said.<br />
Vilfand stressed that additional forecasts will<br />
be needed for the 32 teams’ training bases and for<br />
flight and road conditions between host cities.<br />
Russian authorities expect three million to five<br />
million fans to travel in Russia during the World<br />
Cup.
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ANALYSIS<br />
BREAKING DOWN<br />
RUSSIA <strong>2018</strong> FIFA<br />
WORLD CUP PRIZE<br />
MONEY<br />
.....records 40% increase<br />
The Prize money for the <strong>2018</strong><br />
FIFA World Cup has been announced<br />
for all 32 teams competing<br />
in Russia.<br />
FIFA has announced the <strong>2018</strong> FIFA<br />
World Cup prize money pool where<br />
they have allocated record $791 million<br />
for prize money, payments to clubs and<br />
player insurance fee. $400 million will be<br />
purely awarded to 32 national federations<br />
according to how they finish in the tournament<br />
where eventual FIFA World Cup<br />
<strong>2018</strong> winners will pocket $38 million. Below<br />
is the entire breakdown of Prize money<br />
pool for <strong>2018</strong> World Cup.<br />
FIFA has announced the prize money<br />
pool for <strong>2018</strong> FIFA World Cup which is set<br />
to take place in Russia. $791 million funds<br />
are allocated for total contribution to the<br />
participants of the tournament. Thats<br />
40% increase in the total contribution<br />
compared to 2014 World Cup where total<br />
contribution was $564 million. Out of<br />
791 million allocated for <strong>2018</strong> World Cup<br />
$400 million will be used as prize money<br />
pool to be awarded to 32 teams according<br />
to how they finish in the tournament.<br />
$209 million will be used for Club<br />
Benefit Programme;(for clubs who release<br />
their players for world cup). The remaining<br />
$<strong>13</strong>4 million will be insurance fee<br />
for clubs who players get injured during<br />
world cup.<br />
A total prize money pool for <strong>2018</strong><br />
FIFA World Cup where $400 million will<br />
be distributed among 32 federations how<br />
they finish in the tournament. $1.5 million<br />
will be awarded to every 32 teams as participation<br />
bonus. Teams eliminated from<br />
the group stage will pocket $8 million<br />
each. First knockout stage losing teams<br />
will get $12 million each while quarterfinal<br />
losers get $16 million. Fourth Placed<br />
team gets $22 million, third place $24<br />
million, losing finalists pocket $28 million<br />
and the winners will take home as much<br />
as $38 million.<br />
FIFA World Cup Prize Money History:<br />
Over the last 5 world cups FIFA has increased<br />
the prize money with every tournament.<br />
Back in 2002 total prize money<br />
pool for World Cup was $154 followed<br />
by $262 million in 2006 World Cup. $420<br />
million in world cup 2010 followed by<br />
biggest increase in 2014 world cup when<br />
FIFA handed out $564 million in prize<br />
money, insurance and payments to clubs.<br />
World Cup is fifa’s flagship event and<br />
85% of orgnizations revenue comes from<br />
World Cup taking place every four years.<br />
FIFA announced that depending on the<br />
revenues, they expect to increase prize<br />
money pool for each of the next 4 world<br />
cups and here is why.<br />
FIFA Revenue details: FIFA made $4.8<br />
billion during the 2014 world cup while<br />
the total expenses were around $2.7 billion<br />
resulting in $2.1 billion profit for FIFA.<br />
FIFA World cup 2014 total revenue<br />
included $2.4 billion in TV rights, $1.5<br />
billion in sponsorship and commercial activities<br />
around 2014 world cup while ticket<br />
sales generated another $550 for fifa.<br />
While costs included that $576 million<br />
in prize money & insurance payments for<br />
clubs, another $370 million in tv production,<br />
$470 million was invested to help<br />
organize the 2014 world cup and another<br />
$100 million was handed to Brazilian FA<br />
as “Legacy” payment. Large portion of the<br />
remaining profit will be invested around<br />
the world to develop football and FIFA itself<br />
will only keep $338 million in profit.<br />
So its easy to see why FIFA keep hiking<br />
the prize money for world cup, it is by<br />
far the biggest sports event in the world<br />
on almost every possible scale so FIFA<br />
need to match the prize money with world<br />
cup glory.<br />
The table shows the difference between expected prize money payouts in<br />
FIFA World Cup <strong>2018</strong> and what was paid in 2014 world cup in Brazil.
BUSINESS DAY<br />
Insight<br />
NEWS YOU CAN TRUST I FRIDAY <strong>13</strong> APRIL <strong>2018</strong><br />
C002D5556<br />
Operating in a VUCA Environment<br />
I<br />
have been asked to say a few<br />
words about the challenges<br />
and opportunities of operating<br />
in a volatile, uncertain, complex<br />
and ambiguous (VUCA)<br />
environment. I think the first thing<br />
when you are managing a business<br />
in a VUCA environment is that you<br />
have to face the reality that VUCA is<br />
not just a conceptual expression, it is<br />
real, by which I mean, the volatility<br />
of which you speak manifests itself<br />
every day, every week, every month.<br />
Volatility by definition means you<br />
cannot be certain what will happen<br />
today, tomorrow, or the day after.<br />
The first thing I do in managing<br />
in such an environment is that I aim<br />
to build an organisation equipped<br />
to interpret the risks surrounding it.<br />
Always scanning the horizon, facing<br />
reality, asking yourself: ‘what are our<br />
current risks?’ Ask yourself – ‘were<br />
these risks to surface, is our business<br />
ready to deal with them?’ I find that, a<br />
lot of time, people talk about working<br />
in a volatile environment, but with<br />
the first sign of volatility, the business<br />
cracks. We talk about it, but do not<br />
plan for it. If you do not prepare for tomorrow,<br />
tomorrow overwhelms you.<br />
Face the reality of the environment<br />
The first thing is to face the reality<br />
of the environment and deal with it.<br />
When you face the reality, you will<br />
build more resilient models. Models<br />
that can cope with shocks and enable<br />
us to thrive in highly volatile<br />
circumstances. Take the volatility of<br />
our telco networks as an example:<br />
some people do not understand the<br />
tendency of others to carry more than<br />
one phone. I believe this is their individual<br />
response to the fragility of the<br />
networks and their frustration at the<br />
companies. They know there will be<br />
places where one network doesn’t<br />
work, so they carry another back-up<br />
network to make a phone-call if one<br />
fails them.<br />
If you apply the same thinking<br />
to business, you should always in a<br />
volatile environment, think about<br />
back-up plans and what changes<br />
you can make in the short term.<br />
For example, having multiple vendors<br />
for a particular service, which<br />
means that when shocks surface,<br />
you are better prepared. You can<br />
move from supplier A to supplier<br />
B or both can give you half your<br />
requirement.<br />
Therefore, the economic cycle<br />
and the evaluation criteria of what<br />
is right in business in volatile environments<br />
must now be viewed<br />
through a long-term lens. Planning<br />
cycles are shorter and you plan during<br />
these shorter cycles, because<br />
every month, every quarter, things<br />
change. Review, change, review.<br />
But evaluation of economic benefits<br />
must be done with a longer-term<br />
horizon in mind. In tangible terms,<br />
that means you may carry high inventory<br />
levels and in the short term,<br />
that comes with huge constraints on<br />
working capital, interest payments<br />
and so on. If you look at it in the medium<br />
to long term, you realise that<br />
by having more reserved for times<br />
of adversity, volatility will reduce.<br />
For example – if ports go down or a<br />
road route is clogged, your delivery<br />
trucks won’t get through, but you<br />
however will be better prepared<br />
with inventory and your revenues<br />
will therefore grow faster. You may<br />
even gain market share and brand<br />
loyalty because of your ability to<br />
serve consumers and shoppers<br />
at a time your competitors could<br />
not. On a medium-term cycle,<br />
therefore, it becomes a benefit not<br />
a hindrance.<br />
Immerse in your Environment<br />
In any environment, be it volatile<br />
or not, there is a cultural conversation<br />
within which brands<br />
must express themselves. In times<br />
of adversity, people develop a certain<br />
sense of humour about things<br />
such as poor infrastructure and<br />
implication on services, so brands<br />
seeking to serve people purposefully<br />
must immerse themselves in<br />
that environment and speak their<br />
language. It is not for nothing that<br />
people wake up in markets like<br />
Nigeria and Ghana and talk about<br />
‘E go better’ or if you go to the<br />
Caribbean, they say ‘better a go<br />
come’ (these expressions mean;<br />
things will get better). A sense of<br />
hopelessness is counteracted with<br />
a sense of humour.<br />
Brands should not ignore the<br />
tendency for people to try and<br />
soothe themselves. They must<br />
embrace and understand it in the<br />
context of the unpredictable times<br />
in which we live, the news culture of<br />
their people and the role their brand<br />
can play in the day-to-day conversation<br />
in communities. Whether<br />
things are good or bad, brands have<br />
a responsibility – because they are<br />
part of the fabric of life.<br />
Flexibility<br />
When it comes to your business<br />
model – and I have touched on this<br />
already – but in summary: it must<br />
have flexibility and resilience combined<br />
with the ability to adapt rapidly<br />
to new and changing circumstances<br />
which is critical for survival during<br />
volatile periods. It is true always, but<br />
particularly in the VUCA world, because<br />
of the tendency of people to say<br />
that the environment is so difficult,<br />
that excellence at world-class levels<br />
is impossible. Business leaders must<br />
be curious and go out of their way to<br />
seek best practice wherever they can<br />
find it. Through this quest they will be<br />
able to demolish the pervading tendencies<br />
of people to think we cannot<br />
aspire to world-class in this environment.<br />
I can tell people about what<br />
happens in Singapore, Germany or<br />
Scandinavia, and they hear me, but<br />
many are cynical about their ability<br />
to bring it to market in a country like<br />
Nigeria. If however, I find examples<br />
of the same high quality as those<br />
markets, here in Nigeria – someone<br />
deploying it in a manner from which<br />
we can observe and learn – it tends<br />
we face and see it as an opportunity<br />
to grow. Existing recruitment criteria<br />
can sometimes favour extremely<br />
cerebral people who, at the first sign<br />
of trouble, find a reason why they will<br />
not be able to deliver. It is therefore<br />
no surprise when global organisations<br />
using such criteria then struggle<br />
to sustain results in extremely volatile<br />
environments.<br />
Reduce Hierarchy<br />
I believe that particularly in our<br />
current environment, we must empower<br />
the frontline. For example, our<br />
sales person in Maiduguri should be<br />
able to wake up, understand the local<br />
dynamics of the company inside<br />
and out, and have the knowledge,<br />
confidence and support to succeed<br />
there. My task as a leader of<br />
this organisation must be to build a<br />
system: a management information<br />
system. I want to build a culture of<br />
empowerment that strips away layers<br />
of hierarchy, so that when that<br />
guy speaks to the organisation, his<br />
voice is taken seriously, he knows he<br />
has my backing, the backing of the<br />
leadership team and will therefore<br />
feedback what he observes. I call it<br />
‘the inverted pyramid’, particularly<br />
in volatile times, you do not have<br />
the time and luxury to ask for information<br />
to reach you through layer<br />
after layer. You have to put in place<br />
mechanisms and you have to disrupt<br />
the system, otherwise the layers of<br />
the ordinary pyramid will resist you.<br />
When you cross layers and go right<br />
to the frontline, there will be many<br />
who feel that they’ve been left out of<br />
the process, but you must persevere<br />
as a leader and create that culture so<br />
the organisation is speaking to itself<br />
My task as a leader of this organisation<br />
must be to build a system: a management<br />
information system. I want to build a culture<br />
of empowerment that strips away layers of<br />
hierarchy, so that when that guy speaks to<br />
the organisation, his voice is taken seriously,<br />
he knows he has my backing, the backing<br />
of the leadership team and will therefore<br />
feedback what he observes<br />
to have a much more motivating<br />
influence on people and their ability<br />
to let barriers drop and aspire to<br />
it themselves.<br />
So, it is critical, particularly in<br />
volatile markets, to be on the continual<br />
look-out for people doing things<br />
better than you, and benchmarking<br />
as a culture in every part of your<br />
business: always looking for areas<br />
to improve and putting in place appropriate<br />
plans, delivered with speed<br />
and agility.<br />
Team Selection<br />
The talent base of the organisation<br />
is vital to survive and thrive as a<br />
business under usual circumstances.<br />
It is even more acutely important<br />
during volatile times. I always suggest<br />
that you have to find people, who,<br />
when they wake up in the morning,<br />
are not overwhelmed by volatility but<br />
instead appreciate that it’s the reality<br />
about what it learns in real time and<br />
acting on it, so every employee realises<br />
how you can march faster toward<br />
your goal and is willing to express it.<br />
Segment Markets<br />
There is nothing like a one-Nigerian<br />
market or one market anywhere,<br />
and so you will come up with<br />
your own segment descriptors, but<br />
you must be close enough to the<br />
markets to understand different<br />
characteristics, so you can meaningfully<br />
segment. Then, with the correct<br />
segmentation, cater for those markets<br />
and serve them in a meaningful way<br />
for which they will reward you.<br />
Organisation<br />
In all organisations, particularly<br />
during a volatile era, where there are<br />
many external distractions, leaders<br />
must focus the organisation on key<br />
objectives. In particular, try establishing<br />
a growth mindset, because it’s a<br />
growth mindset that enables people<br />
to overcome obstacles, see opportunities<br />
and keep the organisation<br />
resolutely focused on its objectives<br />
and goals. Clarity on what we are all<br />
trying to achieve, especially in turbulent<br />
circumstances, is critical.<br />
Ecosystem Consideration<br />
What I mean by this is that no<br />
business is standalone. You have<br />
suppliers, customers, employees,<br />
shareholders. So, the leadership<br />
must be constantly considering how<br />
to create value for all. We call it a<br />
‘multi-stakeholder approach’. If you<br />
create value for all stakeholders in<br />
your ecosystem, you are much more<br />
likely to win.<br />
The multi-stakeholder approach,<br />
particularly in volatile markets, is<br />
crucial. Map them out: who are they?<br />
Are you giving back to the community<br />
in meaningful ways that advance the<br />
business? Is your supplier and customer<br />
base strong? Do your financial<br />
partners understand exactly what<br />
success looks like, and are you are<br />
working with them to achieve this?<br />
If you get all that, correct, the fallout<br />
is positive: your business and ecosystem<br />
is strengthened. Your ability<br />
to win in the market place improves.<br />
Your ecosystem becomes so strong<br />
that your business has end-to-end<br />
resilience and is able to withstand<br />
sudden shocks.<br />
Cultivate a Culture of Humility<br />
My final point and I believe this is<br />
true of all business, but particularly<br />
in a volatile environment, is that a<br />
culture of humility and curiosity<br />
must be established. Why humility?<br />
Because you must be willing to learn<br />
from anywhere and anyone. Organisation<br />
must put learning at its heart:<br />
willing to learn from competitors,<br />
(bigger or smaller), other players<br />
(not necessarily in its industry space),<br />
anybody doing anything better. We<br />
must be willing to learn continuously,<br />
together.<br />
If you can do that, then you are<br />
much more likely to succeed sustainably.<br />
So, to summarise:<br />
•Read reality, face it, plan for it,<br />
map risk and build a resilience model.<br />
•Benchmark religiously.<br />
•Select a team that can cope in the<br />
environment we describe as volatile.<br />
•Reduce hierarchy, so the frontline<br />
is able to speak - and the entire organisation<br />
takes it seriously.<br />
•Take the ecosystem into consideration<br />
all the time and do things to<br />
succeed long-term.<br />
•And the last point, be humble.<br />
Learn! Learn! Learn!<br />
YAW NSARKOH<br />
Yaw Nsarkoh in Executive Vice President,<br />
Unilever Ghana and Nigeria.<br />
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