BusinessDay 23 Aug 2018

usinessday market monitor 

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FMDQ Close 

Foreign Exchange 

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fgn bonds 

Market Spot ($/N) 3M 6M 5 Y 10 Y 20 Y 

I&E FX Window 362.50 -0.02 0.08 0.15 0.01 0.76 

CBN Official Rate 306.10 11.58 13.32 14.78 14.87 14.93 

Currency Futures ($/N) 

NGUS OCT. 

31, 2018 

NGUS JAN. 

30, 2019 

NGUS JUL. 

24, 2019 

0.00 0.00 0.00 

362.23 362.68 363.58 

news you can trust I **THURSDay 23 auGUST 2018 I vol. 15, no 124 I N300 @ g 

How Ministry of 

Health allows 

impunity, corruption 

to thrive 

... International health agencies 

pull out over corruption 

DIPO OLADEHINDE 

INSIGHT 

Nigeria’s Auditor-General 

Anthony Ayine has 

criticized the Federal 

Ministry of Health for allowing 

impunity to thrive in its system. 

Continues on page 34 

Miyetti Allah denies 

threatening to 

unseat Saraki 

... as PDP gives Buhari 24 

hours to arrest leaders 

... vote for me because I WORK 

not because I WALK – Atiku 

OWEDE AGBAJILEKE, Abuja 

The national body of Miyetti 

Allah Cattle Breeders 

Association has dissociated 

itself from threatening 

comments made against Bu- 


Inside 

Spread between 10-year FGN 

bonds, 12 months Treasury 

widest since February 2016 

P. 2 

Low consumer confidence 

hits Shoprite sales 

Grows Nigerian revenue by just 4% 

Emeka Ucheaga 

Shoprite Nigeria recorded 

its slowest sales 

growth in years as the 

popular retailer struggled 

to grow sales in 

an economy battling declining 

consumer spending. For the first 

time, Shoprite Nigeria recorded 

a single digit increase in sales 

as turnover grew by only four 

percent in 2018 compared to 50.4 

percent recorded in 2017. The 

sharp slowdown in the country’s 

largest retail shopping chain has 

been linked to low consumer 

confidence in the country despite 

declining rate of inflation. 

Low consumer demand has 

resulted in the build-up of inventory 

in many firms. 

Analysts note that though the 

economy has recovered from 

the 2016 contraction, growth 

remains fragile with economy 

only managing a marginal 1.95 

percent growth in the first quarter 

of 2018. Growth in the second 

quarter is expected to remain flat 

according to Yemi Kale, Statistician 

General of the Federation, 

an indication of the low level of 

economic activity still plaguing 

the country. 

Consumer spending fell by 

-0.99 percent in 2017 according 

to figures obtained from Na- 


L-R: Frank Aigbogun, MD/CEO, BusinessDay; Uche Olowu, president/chairman of council, CIBN; Governor Godwin Obaseki, governor, Edo State; Aigboje Aig- 

Imoukhuede, founder, Coronation Capital Mauritius Limited, and Seye Awojobi, registrar/CEO, CIBN, at the meeting for Business and Government Relations Group. 

In real estate market, smaller is now profitable as developers innovate to stay afloat 

CHUKA UROKO 

Faced with a sharp fall in 

purchasing power, real 

estate developers in the 

country are having to 

look for innovative ways to keep 

their houses occupied. Despite a 

housing deficit now estimated to 

be in excess of 20 million, many 

Nigerians are not in position to 

buy into the new houses being 

developed in many parts of the 

country due a sharp decline in 

the purchasing power of the 

middle class even as many seek 

greener pastures outside the 

country. Nigeria is currently 

estimated to be losing about 12 

doctors every week to Europe 

and America even as other professional 

also flee the country. 

Not surprising vacancy rates 

in highbrow areas of Lagos and 

Abuja are in excess of 40 percent 

for both commercial and noncommercial 

properties leaving 

many developers struggling to 

offload new developments into 

the hands of consumers who 

are not in a position to buy. 

Even though developers insist 

Analysis 

that the wide housing gap offers 

opportunities for developers to 

sell their property if the pricing 

is right. 

“These opportunities are not 

for those we call ‘unmotivated 

sellers’ who cling to old prices 

and are not ready to make the 

shift,” explained Udo Okonjo, 

the chair/CEO, Fine and Country 

West Africa, who also pointed 

out that even in the highbrow 

locations like Ikoyi in Lagos 

where residential vacancy rate is 

over 40 percent, demand is still 

strong for apartments when the 

price and size are right. 

Players in the industry says 

that the new reality of the market 

is that developers are experiencing 

over supply in high end 

residential buildings and also in 

A-grade commercial office space 

but under supply in the low end 

of the residential market where 

demand is weak. 

As a way out of the oversupply, 

under-supply challenge, 

some developers are ‘redeveloping’ 

into smaller units of twobedroom 

and studio apartments 

for the short-let market. In the 

case of office space, smaller 

spaces are now being offered for 

co-working stations. 

Players in the industry have 

told BusinessDay that short-let 

apartments are now gaining momentum 

due to the challenging 

economic environment. 

“This increased demand has 

spurred savvy business operators 

to accelerate their expan- 

Continues on page 34

2 BUSINESS DAY 

C002D5556 

Thursday 23 August 2018 

NEWS 

Nigeria lags peers with pension 

contribution to GDP at 6.5% 

Endurance Okafor & Oghogho Edosomwan 

Nigeria is behind its Africa 

peers as it accounts for one 

of the lowest pension asset 

contribution to Gross Domestic 

Product (GDP) in the region. 

BusinessDay analysis of six Africa 

countries in relation to what percentage 

their various pension assets contributes 

to GDP saw Africa’s largest economy 

ranking the third lowest in the region. 

Namibia with 91.7 percent assets 

of pension funds to GDP topped the 

ranking, followed by South Africa, 

the region’s second largest economy 

with 75.1 percent and Kenya came 

next with 13.1 percent, leaving Nigeria, 

Ghana and Egypt to occupy 

the bottom list with 6.5 percent, 3.8 

percent and 1.7 percent respectively. 

Chief Executive, Eguarekhide 

Longe of AIICO Pensions said the 

pension industry has strong potentials. 

“Nigeria pension industry can do 

a lot more, when you look at South 

Africa’s pension industry, you can see 

the intricate impact it is making on 

their economy, that is where Nigeria 

should be going,” Longe said. 

Another industry analyst said the 

Nigeria pension industry can grow 

larger. “That is to say it can have more 

impact on the individual lives of the 

citizens, if more people are covered 

for pension,” the analyst said on the 

condition of anonymity. 

Meanwhile, the Asset under Management 

(AUM) for Nigeria’s pension 

industry also lagged that of South 

Africa, as compiled by BusinessDay. 

South Africa’s pension industry, 

lunched in 1996 has about $258 billion 

of AUM while Nigeria had AUM of $24.5 

billion, although it was set up in 2004, as 

compiled from PENcom website. 

Industry experts however attrib- 

FG oil earnings to rise as EIA forecasts 

$734bn revenue for OPEC in 2018 

Olusola Bello 

The Federal Government 

may earn more revenue 

from crude oil this year than 

envisaged thereby having a 

breathing space to executive many 

critical projects that could help boost 

economic activities. 

This is because the Organization 

of Petroleum Exporting Countries 

(OPEC) net oil export revenues is being 

projected to rise to about $736 billion 

without any adjustment for inflation in 

2018, according to a forecasts of global 

oil prices and OPEC production levels 

by the United States Energy Information 

Administration (EIA)’s August 2018 

Short Term Energy Outlook (STEO) . 

The expected increase in OPEC’s 

net export earnings is attributed to 

higher forecast annual crude oil prices 

in 2018 compared with 2017 despite 

expected lower output during 2018. 

This means more revenues for 

OPEC member countries, especially, 

Africa’s largest economy where the 

government is largely dependent 

on crude oil as the main source of 

export earnings. 

In recent times the price of Brent 

which is the same thing as Bonny 

Light has hovered between $65 and 

$74 per a barrel. 

Some industry watchers have said 

for Nigeria to derive maximum benefit 

from this development, it would 

depend on if the current relative 

stability being enjoyed in the Niger 

Delta by oil companies is sustained. 

The country currently produces an 

average of 1 .986,583 million barrels 

uted the second position occupied 

by Nigeria to the fact that the pension 

industry in Africa’s most populous 

nation was created at a time when it 

peers had long existed. 

Other countries’ AUM as analysed 

by BusinessDay were; Namibia with 

$10.8 billion, Kenya, launched in 1965 

has AUM of $10.4 billion, and Ghana 

with $1.7 billion as at December 2017. 

Pension funds’ assets are defined 

as assets bought with the 

contributions to a pension plan for 

the exclusive purpose of financing 

pension plan benefits. The pension 

fund is a pool of assets forming an 

independent legal entity. 

The 14 years old National Pensions 

Commission was set up by 

Nigeria’s government to regulate, 

supervise and ensure the effective 

administration of pensions, including 

the Nigeria Social Insurance 

Trust Fund, and to issue guidelines 

on pension fund investments. 

Industry regulator, the National 

Pension Commission (PenCom) 

had disclosed during the third edition 

of the National Association of 

Insurance and Pension Correspondence 

Conference in Lagos that the 

number of contributors under the 

Contributory Pension Scheme (CPS) 

has grown by 312, 291, increasing 

from 7.89 million as at December 

2017 to 8.14 million as at June, 2018. 

According to the commission, the 

net assets value of the pension fund 

was N8.23 trillion as at June, 2018, 

representing an increase of N716.94 

billion up from the value of N7.52 

trillion as at 31st December, 2017. 

Although, only about 10 percent 

of the working population of Nigeria 

have keyed into the contributory 

pension scheme, as compiled by 

BusinessDay. 

per day of crude oil, condensate inclusive 

but it has the capacity to produce 

about 2.9 million barrels of crude per 

day, according to an official source. 

The 2018 federal government 

budget was benchmarked on a crude 

price of $51 per barrel and a production 

level of 2.3 million barrels per day 

and an exchange rate of N305 to $1. 

The National Assembly passed 

the 2018 Appropriation Bill of N9.12 

trillion, raised from the N8.61 trillion 

proposed by President Muhammadu 

Buhari on November 7, 2017. 

Brent crude oil which is equivalent 

of the Nigeria’s Bonny Light spot prices 

averaged $74 per barrel in July, largely 

unchanged from the average in June. 

The agency expects Brent spot prices 

will average $72/b in 2018 and $71/b 

in 2019. While it expects that West 

Texas Intermediate (WTI) crude oil 

prices will average about $6/b lower 

than Brent prices in 2018 and in 2019. 

In 2017, Nigeria earned about 

$34 billion from crude oil revenue 

with about 60 per cent of this revenue 

coming from the government’s equity 

stake in the joint venture operations. 

The per capita oil income was 

however about $135. 

The agency forecast that OPEC 

crude oil production will average 32.3 

million barrels per day (b/d) in 2018, 

0.3 million b/d lower than in 2017. 

It however stated that the organisation’s 

revenues for 2019, revenues are 

expected to be $719 billion, as a result 

of lower forecast crude oil prices. 

•Continues online at 

www.businessdayonline.com 

MARKETS 

Spread between 10-year FGN bonds, 12 

months Treasury widest since February 2016 

Emeka Ucheaga & Sobechukwu Eze 

For the first time in 2 years, 

the interest rate spread between 

the average 10-year 

FGN Bonds and average 

12 months Treasury bills in 

Nigeria is greater than 3 percentage 

points according to data compiled 

from Bloomberg. 

The average 10 year FGN bond 

yield rose to 14.3 percent while the 

average 12 months Treasury bills 

yield dropped to 11.2 percent at 

market close yesterday, increasing 

the gap between the two sovereign 

debt yields to 3.08 percent, its highest 

level since February 2016. 

Treasury bill yields have been 

dropping precipitously since last year 

as the monthly declines in inflation 

allowed the federal government to 

drop short term borrowing rate. 

In August 2017, Treasury bill rate 

was as high as 18.5 percent but it has 

L-R: Jafaru A. F. Momoh, chief medical director, National Hospital, Abuja; Severin Schwan, CEO, Roche Group, and 

Markus Gemuend, general manager, sub-Saharan Africa, Roche, during a courtesy visit of the CEO, Roche Group. 

Dangote Cement, TPDC sign 20-year deal on supply of natural gas 

MICHEAL ANI 

Tanzania Petroleum Development 

Corporation 

(TPDC) and Dangote Cement 

yesterday signed a 

20-year deal that will see the cement 

maker produce electricity for the 

production of cement at Dangote’s 

Mtwara plant using natural gas, a 

Tanzanian newspaper reported. 

“The plant will convert to gas 

over the next 2 months at a cost of 

2 billion Tanzanian shillings ($876 

million) and will increase power 

output to 40 megawatts from 22 

megawatts,” Jagat Rathee, Tanzanian 

country manager for Dangote 

Cement said. 

Actual generation of electricity 

from natural gas will start within 

two months from now, he noted. 

The development creates hope 

that production at the country’s 

largest cement producer will not be 

affected by electricity challenges, 

resulting in a number of benefits to 

consumers such as reduced prices. 

lost 7.3 percentage points as yield 

dropped to 11.2 percent. The 10 year 

bond yield only declined marginally 

from 16.8 percent in August last 

year to 14.3 percent yesterday which 

helped to create the wide spread. 

Looking at historical trend, yield 

spreads between treasury bills of different 

maturity dates may show how 

investors are looking at the economic 

conditions. 

Widening spreads between the 10 

year bond yield and the 12 month Treasury 

bill rate typically lead to a positive 

yield curve, indicating stable economic 

conditions in the future. On the other 

hand, when spreads contract, it could 

be a signal that worsening economic 

conditions may be coming, resulting in 

a flattening of the yield curve. 

Vivian Alozie a Research analyst 

at Capital Bancorp said, “we are 

finally seeing a normalization of 

the yield curve. The yield curve was 

inverted for the better part of the 

According to Rathee, infrastructure 

has already been constructed 

with installation of natural gas 

pipeline from block value station 

one (BVS1), a 132 metre distance 

to the cement factory. Again, the 

company has its system from diesel 

to natural gas consumption. 

“We are currently doing some 

test before complete consumption 

kick off,” he noted. 

The company which has only 

increased consumption from 

about 2,500 tonnes per day to 

about 5,000 tonnes in response to 

a lower supply that has seen price 

increasing is expected to further 

increase its cement making to 

6,000 tonnes per day when the use 

of natural gas starts. 

“With natural gas, our operational 

costs will go down and 

ultimately, the price of cement will 

also be reduced,” he said. 

The factory will consume at 

least eight million cubic feet of 

natural gas from more than six 

million litres of diesel per month 

last two years as Treasury bill rate 

rose rapidly to provide a real investment 

return for investors. Investors 

who were uninterested in buying 

Treasury bill at rates lower than the 

inflation had to be satisfied with 

higher investment return. As inflation 

continues to trend downwards, 

we expect to see the yield curve normalize 

in the fixed income market.” 

“Although treasury bill rates have 

been dropping all year long, we still 

think it is very attractive for foreign 

investors who are seeking high yield 

returns in emerging markets”, said 

Faith Ogedengbe, Research Analyst, 

GDL Asset Management. 

“We have still seen a lot of inflows 

into treasury bills this year despite lower 

returns than were available last year. 

Now that the yield curve has normalized, 

we should start to see more long 

term investing in the country as investors 

again chase higher yields at fixed 

income market,” Ogedengbe added. 

at a total cost of about Sh10 billion. 

Dangote Cement will be the 

42nd industry to be connected 

to the use of natural gas in the 

country, according to TPDC’s acting 

manager director, Kapuulya 

Musomba. 

It will also bring the total 

amount of natural gas consumed 

by factories in the country to 23 

million standard cubic feet per day. 

“Our goal is to connect as many 

industries as we can. With this 

agreement, we are obliged to supply 

natural gas to Dangote for a 

period of 20 years.” 

Dangote cement is investing a 

total cost of $915,953.59 (about Sh2 

billion at the prevailing exchange 

rate) in the first phase of the gas to 

electricity power generation. 

Meanwhile, TPDC is also implementing 

the second phase 

worth $3.75 million including tax 

that will see another natural gas 

pipeline being installed at the cement 

plant for heating and production 

activities.

Thursday 23 August 2018 C002D5556 BUSINESS DAY 3

4 BUSINESS DAY C002D5556 

NEWS 

Why Nigeria lags, plays catch-up 

with industrialised nations 

nological frontiers. Though 

the country has people with 

skills to develop its industries, 

the operating environment 

has almost killed their 

knowledge and morale. 

There are many institutions 

in Nigeria including 

universities for technical 

innovation but they concentrate 

on assessment and 

analysis of one process or another 

while the real innovations 

are left in the hands of 

ill-trained people. 

To achieve the required 

volume and standard of machines 

and plants that can 

turn local processes, operations 

and productions into 

products and services that 

create new industries, experts 

advise governments to 

pursue technical innovation 

with deliberate intention 

and sincere commitment to 

create a true foundation for 

technology diffusion, transfer 

and development. 

Ogunbiyi specifically advised 

that engineers in ministries, 

departments and agencies 

(MDAs) should also be 

exposed to actual engineering 

and construction works 

awarded to contractors to 

help them gain experience 

to take up professional challenges. 

NCC takes proactive steps to actualise 

30% broadband penetration by 2018 

CHUKA UROKO 

In many spheres of 

growth and development, 

be it ease of doing 

business index, ease 

of registering property 

for housing development, 

equipment procurement 

for mechanised agriculture 

and industrialisation, political 

development, Nigeria, 

Africa’s largest economy, is 

always lagging behind and 

playing catch-up with its 

peers. 

Similarly, among industrialised 

nations, Nigeria is 

lagging behind and experts 

have attributed this to the 

country’s low investment in 

technical research and development 

of machines and 

equipment for industries, 

which, according to them, 

are major hindrances to economic 

growth. 

“A country that is not 

industrialised will remain 

behind. Nigeria is currently 

rated among the third world 

countries, which should not 

be; we should be among the 

developed nations of the 

world considering our size 

and the human resources 

we have,” Robinson Elijah, 

national chairman, Nigerian 

Institution of Mechanical En- 

National Association 

of Telecommunications 

Subscribers 

(NATCOMS) says Nigeria 

Communications Commission’s 

(NCC) licensing of 

more infrastructure companies 

(InfraCos) is a proactive 

step toward achieving the 30 

percent broadband penetration 

target. Adeola Ogunbanjo, 

national president of 

NATCOMS, made the disclosure 

in an interview with 

the News Agency of Nigeria 

in Lagos on Wednesday. 

Nigeria developed a fiveyear 

strategy (2013-2018) in 

2013, through the Presidential 

Committee on Broadband. 

The aim is to drive 

internet and broadband 

penetration in the country 

and to scale up NCC’s 

broadband growth by 30 

percent in 2018. 

According to Ogunbanjo, 

we have only four months to 

go, and actually, the target 

cannot be met and that is 

what is worrying the NCC, 

which is leading to the licensing 

of more InfraCos. 

“Honestly, NCC is taking 

a good step in the right 

direction by ensuring licensing 

of more InfraCos, 

because it will lead to more 

gineers (NiMechE), said. 

There is always a direct 

positive connection 

between investment in 

technical research and development 

and the level of 

economic growth, as technical 

innovation remains 

the driver of prosperity and 

sustainable development in 

nations across the world. 

Because Nigeria is not investing 

in all of these, it is unable 

to compete favourably in 

the global knowledge-driven 

economy even within Africa 

and so, global funds could 

not be attracted to empower 

the citizens of the country to 

drive away poverty. 

“The right kind of machines 

and plants can only 

come from technical innovation, 

research and development 

carried out by trained 

Nigerians to bring about new 

industries, products and services 

to generate new wealth 

from global funds, earned 

through non-oil goods and 

services produced,” Abdul 

Ogunbiyi, director, research 

and development, Lagos 

State Ministry of Works and 

Infrastructure, said at a forum 

in Lagos recently. 

In Nigeria as it is today, 

technical innovation remains 

very low and far from techexpectations 

and more robust 

broadband penetration. 

“There is also the need 

for private sector’s participation 

to help government to 

achieve this target,” Ogunbanjo 

said. 

He decried many obstacles 

hindering the actualisation 

of the broadband’s target 

such as the Right of Way 

(ROW), many taxes and levies, 

saying that they should 

be looked into. 

He said as regards some 

of the hindrances to broadband 

penetration like ROW 

and also security of base 

stations, “it behoves on the 

executives, states and Federal 

Government to do their 

parts.” 

He urged some state governors 

to emulate the Lagos 

State governor, Akinwunmi 

Ambode, to reduce their 

charges on the right of ways, 

saying, “For broadband penetration 

that will ensure better 

and standard network, all 

hands must be on deck. 

“The number charges 

and multiple taxes on telecommunications 

operators 

and the environment that is 

tightened, not conducive at 

all, do not allow them to operate 

fairly. 


Oil approximately 

$74 on report of US 

inventory drop, Iran 

sanctions 

Brent oil rose to approximately 

$74 a 

barrel on Wednesday 

as an industry 

report showing a drop in US 

crude inventories and US 

sanctions on OPEC producer, 

Iran, pointed to tighter 

supplies. 

The American Petroleum 

Institute reported US 

crude stocks fell last week 

by 5.2 million barrels, more 

than three times the drop 

analysts expected. 

“The API inventory data 

published after the close of 

trading yesterday are lending 

buoyancy to prices,” 

Commerzbank analyst, 

Carsten Fritsch, said. 

Brent crude, the international 

benchmark, rose to 

approximately $70 a barrel 

by 1006 GMT. US crude rose 

to $66.62. 

Oil also found support 

from a weak dollar that 

has slipped this week in 

response to US President 

Donald Trump’s comment 

that he was “not thrilled” by 

the Federal Reserve’s interest 

rate increases. 

A weaker dollar makes 

oil less expensive for buyers 

using other currencies.

Thursday 23 August 2018 BUSINESS DAY 5


NEWS 

Banks record N1.6trn 

worth of ATM transactions 

… dominate ePayment channels 

IHEANYI NWACHUKWU 

Increasing interest of 

bank customers in the 

use of Automated Teller 

Machine (ATM) helps 

to swell the volume and 

value of transactions across 

that electronic payment channel, 

BusinessDay check shows. 

The volume of transactions 

through the ATM reached 

217.417 million in the secondquarter 

(Q2) of 2018 and valued 

at N1.603 trillion, according to 

ePayment channels data from 

the Nigeria banking sector. 

Interestingly, no fewer 

than 168.618 million transactions 

valued at N19.090 

trillion were done through 

the Nigerian Inter Bank 

Settlement System Instant 

Payment (NIP), while 8.769 

million transactions valued 

at N3.57 trillion went 

through Nigerian Electronic 

Fund Transfer (NEFT). 

Bank Web channels record- 

ed the least dealings as only 9.83 

million transactions valued 

at N53.255 billion were done. 

There were 67.22 million PoS 

transactions valued at N543.62 

billion, while 20.686 million of 

Mobile Payments transactions 

valued at N410.56 billion were 

done in the same period. 

A cursory look at monthly 

data on Electronic Payment 

Channels in the second quarter 

under review, it reveals that 

the month of May recorded 

the highest volume of ATM 

transactions numbering 75.19 

million and valued at N559.35 

billion. In the month of June, 

there were 71.27 million ATM 

transactions across banks valued 

at N520.62 billion, while in 

April, there were 70.947 million 

ATM transactions valued at 

N523.18 billion. 

Also in the same secondquarter 

period the banking 

sector recorded 2,268,247 

cheques transactions valued 

at N1.279 trillion. Cheques 

transactions of 798,737 in the 

month of May were highest 

and valued at N446.44 billion; 

followed by 737,353 cheques 

transactions in April valued at 

N435.01 billion, and 732,157 

of same transactions in June 

worth N397.623 billion. 

National Bureau of Statistics 

(NBS) data show that a 

total volume of 509.668 million 

transactions valued at N32.90 

trillion were recorded in the 

second-quarter. 

In terms of credit to private 

sector, NBS data shows the total 

value of credit allocated by 

the bank stood at N15.34 trillion 

as of Q2 2018. Oil and Gas 

and Manufacturing sectors got 

credit allocation of N3.45 trillion 

and N2.02 trillion to record 

the highest credit allocation 

as at the period under review. 

As of Q2, 2018, the total 

number of banks’ staff increased 

by 13.67 percent quarter-on-quarter 

from 89,608 in 

Q1, 2018 to 101,861. 

IoD partners FRC to deepen corporate 

governance among SMEs 

SEYI JOHN SALAU 

Institute of Directors 

(IoD), Nigeria, has announced 

a new partnership 

with the Financial 

Reporting Council 

of Nigeria (FRC) to organise 

corporate governance 

training to assist Small and 

Medium Scale Enterprises 

(SMEs) on a formal and 

structural business model. 

The partnership is 

geared towards helping 

SMEs maintain high 

standards of business ethics 

and integrity that will 

expectedly help them discharge 

their statutory duties 

of ensuring that risks 

are managed prudently in 

an orderly and informed 

manner. 

Ahmed Rufai Moham- 

Investors on the Nigerian 

Stock Exchange (NSE) 

lost N2.49 trillion or 

15.64 percent between 

January and July, this development 

experts attribute to 

the political uncertainty in 

the country. 

The financial experts, 

who spoke with the News 

Agency of Nigeria, said the 

political uncertainty had 

taken its toll on the bourse. 

Data obtained from the 

exchange showed that the 

market capitalisation that 

closed at N15.895 trillion in 

January declined to N13.409 

trillion in July. 

Similarly, the All-Share 

Index lost 7,325.87 points or 

med, president and chairman 

of the governing 

council of the IoD, said the 

institute considered SMEs 

as buffer to the economy; 

hence young directors 

who control the SME sector 

should be made to 

imbibe the culture of best 

practices. 

Mohammed said 

Asapokhai appointment 

by the Federal Government 

came at the right 

time to douse the tension 

generated by the myriad of 

views about the Corporate 

Governance code in the 

country. 

Daniel Asapokhai, executive 

secretary/CEO of 

FRC, in a statement said 

there was an urgent need 

to push SME operators 

to the next level of doing 

Investors on Nigerian bourse lose N2.49trn in 7 months 

16.52 percent during the period 

under review, closing at 

37,017.78 in July compared 

with 44,343.65 in January. 

Uche Uwaleke, head of 

Banking and Finance Department, 

Nasarawa State 

University Keffi, said the 

performance of the market 

was dismal and eroded the 

growth recorded in January. 

Uwaleke said the market 

had remained bearish despite 

the oil price recovery, 

stable exchange rate, retreating 

inflation and even 

improved company fundamentals. 

He, however, attributed 

the development to heightening 

political tension, in- 

business, not necessarily 

in building facilities, but 

in organising their businesses 

better. 

He however called for 

a bouquet of courses for 

SMEs in the hinterland; 

“Corporate governance 

should not only be elitist 

but should be inclusive. If 

indeed 80% of the private 

sector economy is controlled 

by the SMEs, then 

corporate governance 

must be taken to their level.” 

The partnership idea 

was first mooted on August 

17, when the governing 

council of IoD Nigeria, 

led by Ahmed Rufai Mohammed, 

paid a courtesy 

visit to Daniel Asapokhai 

and his management team 

at the FRC office in Lagos. 

security from herdsmen 

and economic uncertainties 

from the delay in budget implementation. 

He added that the spike 

in interest rates in the United 

States of America and to 

some extent the US-China 

trade war combined to 

swing the attention of foreign 

investors to US markets. 

Sheriffdeen Tella, professor 

of Economics, Olabisi 

Onabanjo University, Ago- 

Iwoye, Ogun State, said the 

bearish trend was caused by 

movements of interest rates 

in the United States, which 

resulted in withdrawal of 

money from the market by 

foreign investors. 


Filmhouse Cinema unveils plans for cinemas at Circle Mall Lekki 

Wife of Anambra 

State governor, 

Ebelechukwu 

Obiano, braved 

the heavy rains Wednesday to 

empower 990 indigent women, 

widows, physically challenged 

and children in Ihiala 

and Ekwusigo local government 

areas of the state 

hancing the movie-experience. 

Movie lovers will enjoy the 

cinematic experience featuring 

pristine presentation of 

the best of all worlds including 

Hollywood, Nollywood and 

Bollywood blockbusters. 

“This Cinema will serve 

as a venue for a fast growing 

community within the Osapa/ 

JakandeLekki Axis longing for 

entertainment options to add to 

other various categories already 

trading in the mall. This is in line 

with the promise of the Shopping 

Centre; as the convenient 

community shopping centre,” 

Ayo Amudipe, centre manager 

for Circle Mall, said. 

Residents living within the 

Circle Mall is excited 

to announce that 

Filmhouse Cinema 

will be joining the 

Shopping Centre. The plan is to 

open a number of auditoriums 

in the mall, which will be officially 

unveiled at an opening 

event December 1, 2018. 

The cinemas will offer 

exceptional comfort in each 

auditorium, allowing movielovers 

to stretch out and focus 

on the film. The cinemas will 

feature designs and operation 

style that largely incorporates 

complimentary multifarious 

services such as games arcade, 

food concession, digital cinema 

and 3D cinema, ultimately enprimary 

catchment area such 

as Ikate, Ajah, Osapa, Agungi, 

Jakande, and other estates in 

proximity to Circle Mall such 

as Victory Park, Pinnock, Femi 

Okunu, Ikate, Milverton and 

Willow Green Estates will have 

a traffic free journey to see a 

movie,” he continued. 

Circle Mall is located beside 

what was formerly known as 

the 5th roundabout (now traffic 

lights to make access even 

easier).For more updates on 

the cinemas and everything 

relating to Circle Mall, please 

visit www.circlemall.ngor follow 

us on Facebook and Instagram: 

@circlemalllekki and @ 

circlemall, respectively. 

Wife of Anambra governor empowers 990 less privileged in Ihiala, Ozubulu 

EMMANUEL NDUKUBA, Awka 

She personally distributed 

goodies to the 990 persons in 

the areas as part of her ongoing 

empowerment tour of the 21 

local government areas of the 

state. The beneficiaries made 

up of 40 persons per community 

include 770 persons 

from 14 communities in Ihiala 

and 220 persons from the four 

communities in Ekwusigo local 

areas, respectively. 

Others are 180 indigent 

women, 180 widows, 270 

physically challenged persons, 

270 aged women and 

70 children received various 

items such as bags of rice 

and clothing. Other items are 

school bags containing Math 

set and exercise books for 

children, treated mosquito 

nets, and stipend to ameliorate 

their plight.

Thursday 23 August 2018 C002D5556 BUSINESS DAY 7


NEWS 

British High Commission salutes PH as 

UN Mock Assembly set for August 27 

IGNATIUS CHUKWU 

United Nations 

‘Mock Assembly’ 

slated for 

Port Harcourt 

for the first 

time is set to begin on Monday, 

August 27. Already, the 

British High Commissioner 

in Nigeria, Paul Awkwright, 

has sent a goodwill message 

to the youth of Africa expected 

to slug it out in Port 

Harcourt for slots to New 

York where the world would 

gather for the annual mock 

session. 

The participating students 

usually represent 

countries other than theirs. 

They carry out research on 

the adopted countries and 

conference topics and make 

a case via a resolution for the 

main Mock Assembly. 

The Secretary-General of 

the United Nations, António 

Guterres, former Prime Minister 

of Portugal, had earlier 

sent the UN’s solidarity message. 

The conference would 

hold at L.A. Kings Event 

Centre on Stadium Road 

with security guarantees by 

the organisers, FutureTrust 

Initiative for Capacity Building 

(FTI), with the blessing 

of its chairman-emeritus, 

His Majesty, the Igwe, Nnaemeka 

Ugochukwu Alfred 

Achebe. 

The CEO/founder of FTI, 

Maureen Egbuche, said all 

arrangements were concluded 

to give a taste of the 

first experience in Port Harcourt. 

The theme of the Mock 

Session is “The Future Starts 

Now’, a theme the British 

High Commissioner said 

was exciting and instructive. 

In the goodwill message to 

‘The African FutureTrust 

Model United Nations (TAF- 

MUN) Conference, Awkwright 

said he was delighted 

about the city of Port-Harcourt 

because the theme 

of the conference touched 

an important cord. He said 

the United Kingdom works 

globally to advance the development 

and prosperity of 

young people. 

The word was out last 

year ending that the UN was 

to host the Mock Session in 

Port Harcourt, a victory the 

organisers said took some 

effort over the years since 

the maiden edition in Lagos. 

By this, Port Harcourt 

becomes the second city in 

Africa to host the Mock Session 

series, which prepares 

and selects those to go to the 

main UN Mock Assembly for 

secondary and university 

students every year. 

That was when FTI said it 

started putting effort to make 

the conference come to the 

Garden City of Port Harcourt. 

In 2017, they got the endorsement 

to come to Port Harcourt, 

the update being that 

the stage is now set. 

The coordinator said the 

UN trusted FTI to handle 

this big responsibility and 

that this could be due to 

years of relationship. “Originally, 

FTI is the foremost 

organisation to be a service 

provider for young academics 

from Nigeria who attend 

the main conference in the 

UN Headquarters, New 

York, USA over the years. 

“So, with the experience, 

when we sought the endorsement 

of the UN secretariat 

for Nigeria to host it, 

it was easy. Nigeria is now 

the voice of Africa’s leading 

young academics to the UN.” 

Awkwright said in the 

message that the British 

High Commission was interested 

in the future of the 

youth in Nigeria and listed 

ways in which the High 

Commission has supported 

reforms that could guarantee 

the future. 

Ward Dev. Committee: Edo okays road, electrification, 

empowerment projects for Uhunmwode LGA 

Edo State governor, 

Godwin Obaseki, 

says execution of 

projects such as 

roads, potable water supply 

and electricity projects identified 

by the Ward Development 

Committee in Uhunmwode 

Local Government 

Area, Edo State, will soon 

commence. 

The Ward Development 

Committee is an initiative of 

Governor Obaseki to spread 

social and economic development 

to wards across the 

state, with a pilot phase in 

Uhunmwode and two other 

local councils. 

At a town hall meeting 

in Ehor, the administrative 

headquarters of Uhunmwode 

local council, Obaseki 

said the projects to be executed 

will include roads, provision 

of potable water, rural 

electrification, agricultural 

and educational projects as 

well as the provision of skills 

acquisition centres, healthcare 

centres, among others. 

He said the construction 

of roads to link communities 

and the resuscitation of five 

boreholes would commence 

in September, urging the 

people to set up monitoring 

teams to ensure proper execution 

of the water projects. 

On rural electrification, 

the governor said his administration 

is working with the 

Rural Electrification Agency 

(REA) to provide solar-powered 

electricity to homes, 

as his administration has 

lost confidence in the Benin 

Electricity Distribution Company 

(BEDC). 

“We will also focus on 

primary healthcare to bring 

succour to the people. We 

have started with 20 primary 

health care centres as pilot 

programme with two health 

centres in Uhunmwode local 

council,” he said. 

He declared that the local 

government system has 

failed in bringing governance 

closer to the people, adding 

“The local government as a 

tier of government has failed. 

The state government will 

support the councils in discharging 

their responsibilities. 

I will set up a governor’s 

advisory committee with one 

person representing each 

ward to checkmate the activities 

of local government 

leaders. “The committee will 

meet monthly to review the 

activities of the local government 

leaders to hold them 

accountable.” 

He added that his next 

visit to the council would be 


to evaluate work done as well 

as the projects executed. 

Felicia Iyore Onibone said 

members of the Ward Development 

Committee toured 

communities in the council 

to identify priority projects 

that will benefit the people. 

According to her, “there 

will be training for members 

of the Committee to assist 

them carry out their roles 

effectively in ensuring the 

spread of development in the 

area.” 

Special Adviser to the 

Governor on Basic Education 

and Chairman-Designate, 

Edo State Universal Basic 

Education Board (SUBEB), 

Dr. Joan Osa-Oviawe, said 

caterers for the school feeding 

programme are being 

selected in preparation for its 

commencement. 

She said about nine 

schools in Uhunmwode are 

benefitting from the Edo Basic 

Education Sector Transformation 

(Edo-BEST) programme, 

noting that all the 

86 schools in the area will be 

captured soon. 

The Commissioner for 

Health, Dr. David Osifo, said 

two primary health care 

centers in the local government 

areas are part of the 20 

primary healthcare centres

Thursday 23 August 2018 BUSINESS DAY 9



C002D5556 

COMMENT 

UCHE UWALEKE 

Uche Uwaleke is a Professor of Capital 

market and the Chair of Banking 

and Finance Department at the 

Nasarawa State University Keffi 

The numbers are in 

and the concerns are 

mounting. In its latest 

report on the country’s 

public debt stock, 

the Debt Management Office 

puts the total debt of the federal 

government, the thirty six states 

and the FCT as of June 30, 2018 

at N22.38 trillion (or USD73.2 

billion) representing about 19 

per cent of GDP. This comprises 

external debt of about N6.75 trillion 

(or USD22.08 billion) and 

domestic debt of about N15.629 

(or USD51.12 billion). There are 

divergent opinions regarding 

the sustainability of the present 

public debt levels. Leading 

the proponents of ‘’no cause 

for alarm’’ is the DMO whose 

Director-General Ms. Pat Oniha 

has been quoted as asserting that 

“ Nigeria’s borrowing remains 

sustainable in the short, medium 

to long term levels, guided by the 

DMO objective of prudence”. Relying 

on a low total Public Debtto-GDP 

ratio which is far below 

the 56 per cent World Bank’s 

debt sustainability threshold for 

countries in Nigeria’s peer group, 

comment is free 

Send 800word comments to comment@businessdayonline.com 

On the growing concerns over debt sustainability 

the DMO has gone ahead to upwardly 

review the self-imposed 

country-specific debt limit from 

19.39 per cent to 25 per cent in 

the medium-term of 2018-2020 

thus providing scope for more 

government borrowing. 

However, not a few, including 

the IMF, have faulted this 

move pointing to the already 

high cost of servicing public 

debt which is undermining 

government spending plans. 

Although the increased financing 

requirements needed to fast 

track economic recovery and 

address the huge infrastructural 

deficit would entail enormous 

funding resources including 

borrowing, rising debt service 

payment relative to revenues, it 

is argued, places a squeeze on 

government’s ability to fund its 

expenditure programmes. 

To buttress this point, data 

from the Office of the Accountant 

General of the Federation 

and the Budget Office for the 

period January to June 2017 

indicate that on a pro-rata basis 

the budgeted FGN 48.5 per 

cent share of federally retained 

revenue was N1.75 trillion while 

actual revenue over the same 

period was N1.3 trillion resulting 

in an adverse variance of about 

N438 billion. Similarly, debt service 

for the first half of the year 

was budgeted at N920.67 billion 

while the actual was higher at 

N927.74 billion. Therefore, the 

actual debt service to revenue 

ratio between January and June 

2017 works out at about 70 per 

cent - quite high by historical 

standards. This figure speaks for 

itself, underscoring the magnitude 

of the debt burden. 

‘ 

...that to deal with the 

public debt challenge 

fiscal discipline is 

required at all levels of 

government. Alternative 

funding sources should 

be explored including 

privatisation through the 

Nigerian Stock Exchange to 

engender inclusive growth 

as well as through Public- 

Private Partnership (PPP) 

arrangements 

’ 

As a corollary, the partial approach 

to the determination of 

public debt stock helps to reinforce 

the false notion of debt sustainability. 

If public debt is the totality of 

government’s obligations, a more 

comprehensive approach would 

sweep into the debt basket outstanding 

debts owed to contractors 

and pensioners. A conservative 

approach would equally capture 

judgment debts as well as those of 

the Assets Management Corporation 

of Nigeria especially against 

the backdrop of the fact that it will 

one day embrace its sunset clause 

and cease to be a going concern. 

The federal government’s 

strategy of increasingly resorting 

to external borrowing to fund 

budget deficit finds explanation 

in the increasing cost of 

servicing domestic debt. This 

disposition accounts for the 

growing quantum of foreign 

debts contracted on commercial 

terms in recent times with much 

emphasis placed on tapping the 

Eurobond markets. This strategy 

is yielding results with the debt 

mix gradually trending towards to 

the 40:60 DMO target from 15:85 

previously to 30:70 currently in 

terms of external and domestic 

debts respectively. 

Nevertheless, the preponderance 

of fragilities in the Nigerian 

economy warrant a cautious approach 

to new external borrowing- 

one that is shy of nonconcessional 

loans contracted 

purely on commercial terms 

such as Eurobonds. Indeed, the 

country can only hope that there 

are no more currency shocks in 

the near future. The International 

Monetary Fund (IMF) in its most 

recent article IV Consultation 

report had raised a red flag regarding 

the debt level which was 

“creating some form of vulnerabilities.” 

Even the result of the 

2017 Debt Sustainability Analysis 

exercise by the DMO admitted 

that ‘’the ratios of External Debt 

Service-to-Exports and External 

Debt-Service-to-Revenue also 

deteriorated throughout the projection 

period thus, indicating 

that Nigeria’s Total Debt portfolio 

is highly susceptible to Revenue 

shocks’’. 

Indeed, high external debt 

itself can be an obstacle to growth 

as argued in the debt overhang 

literature. External borrowing 

can be detrimental if it fails to 

generate a commensurate increase 

in a country’s capacity to 

repay as the Nigeria’s case seems 

to demonstrate. Data obtained 

from the DMO website reveal 

that Nigeria’s external debt stock 

as at 30th June 2018 of about 

USD22.08 billion comprises 

USD10.88 billion from Multilateral 

sources (representing 49.28 per 

cent), USD2.40 billion Bilateral 

(or 10.87 per cent) and USD8.80 

billion Commercial (chiefly Eurobonds) 

which translates to 

39.85 per cent. Although commercial 

debt represents less than 

40 per cent of the total external 

debt stock, it took up the highest 

share of the actual external debt 

service payments in the second 

quarter of 2018 at 56.52 per cent 

with Multilateral at 26.28 per cent 

and Bilateral at 7.92 per cent. 

The country’s ratio of external 

debt service to revenue may be 

relatively low, but the pre-2005 

experience —when the country’s 

external debts reached unsustainable 

levels which hampered 

for many years efforts to achieve 

inclusive growth —serves as a 

sober reminder of what can go 

wrong. This underscores the 

importance of prioritizing concessional 

external loans over 

commercial debts consistent 

with the standard framework for 

debt sustainability. 

Note: The rest of this article continues 

in the online edition of Business Day 

@https://businessdayonline.com/ 

Send reactions to: 

comment@businessdayonline.com 

TUNDE AJIBIKE 

Tunde Ajibike is a staff of Oyo State 

Ministry of Information, Culture and 

Tourism, Ibadan 

It is saddening to hear about 

the sudden and untimely 

death of nine corps members 

currently serving in Taraba 

State of Nigeria. It was reported in 

the media that nine out of twenty 

two corps members got drowned 

while picnicking at River Mayo 

– Selbe in Gashaka Local Government 

Area of Taraba State. It is 

unfortunate that the upsurge in 

volume of water carried the young 

graduates away and their corpses 

were later found in the river. 

The trend is becoming worrisome 

and there is need to urgently 

address it. How do we explain the 

calamity which is traceable to youthful 

exuberance on the part of this 

young graduates who are suppose 

to be the great leaders of tomorrow? 

It is disheartening that they cut their 

lives short abruptly and threw their 

parents into deep mourning. 

While it is humanistic to commiserate 

and condole with the 

parents, relations, friends, and 

the National Youth Service Corps 

(NYSC), it is also expedient to 

checkmate the excesses of these 

corps members and re-orientate 

them to eschew acts of violence, 

vices and misdenamour that are 

Incessant death of corpers: Who is to blame? 

inimical to their health and well 

being. 

No doubt, the NYSC scheme 

is a laudable programme conceptualized 

and designed by the 

Federal Government of Nigeria 

on 22nd May, 1973 with the aim of 

using it as a tool of reconciliation, 

reconstruction and rebuilding of 

the nation after the civil war. It 

was primarily established based 

on decree 24. 

It is obvious that the scheme 

was created to encourage and 

develop a common ties among 

the youths of Nigeria and promote 

national unity but the events 

unfolding these days is sending 

wrong signal to the members of 

the public. 

There is no gainsaying the 

fact that Nigerians are becoming 

skeptical about the veracity of the 

claims made by the NYSC that 

the welfare of corps members is 

paramount to the scheme. The 

Director General of the NYSC, 

Brigadier General Suleiman Kazaure 

confirmed that 95 percent of 

death recorded by the corps members 

was due to road accident. It 

is baffling to observe that corps 

member embarked on unnecessary 

and frivolous journey in spite 

of the words of admonition to take 

permission before travelling out of 

their respective areas of primary 

assignment. 

Not only this, corps members 

were brazenly maimed by hoodlums 

during elections, a typical example is 

an orphan, Okonta Samuel Dumebi, 

who was gruesomely murdered during 

Rives State’s re-run election. A 

corps member was also shot dead by 

a policeman on Wednesday, 4th July, 

2018, a SARS officer identified as Benjamin 

Peters on the day of her Passing 

out Parade (POP) at the Federal 

Capital Territory. The case of Ojesola 

Taofeek, a young graduate serving 

in Bayelsa State that got drowned 3 

months ago in Nembe River is still 

fresh in the memory of Nigerians. 

The corps member was reportedly 

visited Ogbolomabiri Jetty to take 

pictures of the waterside as part of 

memories during service year when 

he accidently fell in to the river. All 

attempt to rescue him proved futile, 

he lost his life in the process. 

Another pathetic incident was 

reported in the media which involved 

three corps members that lost their 

lives during the 2016 Batch B, Stream 

1, Orientation Course in Bayelsa, 

Kano and Zamfara States. The death 

of the trio, Chinyerun Nweneda Elechi; 

Ifedapo Oladapo and Monday 

Asquo Ukeme followed brief illness 

and the NYSC claimed that medical 

teams in the camps battle to save 

their lives in line with established 

procedures, hence, some critics are 

insinuating that NYSC is fond of 

spurious claims that cannot be sub- 

stantiated with verifiable evidences. 

The in exhaustive list of corps 

members that passed on during the 

orientation programme generated 

a lot of controversy. Another good 

example is Miss Hilda Amadi who 

was reportedly died during the 

orientation camp in Kwara State. 

The incessant killing of corps 

members and the avoidable deaths 

of these young graduates is adversely 

affecting the corporate 

image of the NYSC in recent time. 

The death of corps members during 

the orientation camps across 

the nation was purportedly alleged 

to be caused by the negligence of 

the medical team of the NYSC, 

who are either incompetent or 

manifesting carefree attitude which 

consequently, led to the death of 

the corps members. To this end, 

a school of thought advocated for 

the scrapping of the scheme, they 

premised their argument on the 

fact that the scheme has outlived 

its relevance and the purpose of 

establishing it is almost defeated, 

however, it will be unfair to blame 

the NYSC for the death of all the 

corps members in Nigeria. While 

it is apparent that some deaths are 

natural, which could be referred 

to as acts of God, some others are 

self inflicted. Apparently some 

corps members are disobedient 

and live sedentary lifestyle that 

predisposes them to dangers and 

untimely death. 

We cannot blame the NYSC for 

the death of Corps members that 

involved in vehicular accident 

while embarking on frivolous and 

unauthorised journeys. Also, corps 

members that patronize club houses 

and take delight in “crawling” 

in the midnight. The law enforcement 

agents could mistaken them 

for robbers or maraunders. Most 

often, they may be arrested and 

locked up or shot in the midnight. 

These young men and ladies 

involved in a lot of sharp practices 

and vices ranging from cyber 

crimes; prostitution; kidnapping; 

highway robbery; abduction; drug 

abuse; raping; ritual killing; advance 

fees fraud and so on. 

The parents have significant 

roles to play to reduce the persistent 

killing of the corps members 

and minimise the untimely death 

of these young graduates. It is 

behoves on parents to enforce discipline 

especially at the formative 

stage of the lives of their children. 

It is disheartening to observe that 

some parents are running permissive 

home at the expense of their 

children. Therefore, to ensure 

the safety of the lives of the corps 

member it is a responsibility of all 

the stakeholders. 


comment@businessdayonline.com


COMMENT 

OLUFEMI AWOYEMI 

Awoyemi lives in Lagos and wrote 

via (femiproshare@gmail.com) 

“Ethics is knowing the difference 

between what you have a right to 

do and what is right to do.”- Potter 

Stewart 

The mandate given to 

the newly constituted 

executive management 

of the NSE post-Ndi 

Okereke-Onyuike was 

to develop, grow and implement 

an exchange driven by, and able 

to hold itself to the best possible 

standards of governance and to 

exercise extreme caution where 

any appearance of or circumstance 

may present itself. 

The exchange has been executing 

this mandate without incident 

till Friday, August 17, 2018 when it 

supervised the launch of a private 

foundation of the CEO at its office, 

including organizing a bell ringing 

session; an activity hitherto 

reserved for departing CEOs. 

This is an isolated case but one 

that indicates acquiescence, if not 

support from the NSE Council - the 

mandate keepers. Mr. Oscar Onyema 

is thoughtful, professional and 

a gentleman who has every right to 

pursue socially uplifting causes. It 

is a good thing to do but not sufficient 

to meet the highest standards 

of corporate governance; in so far 

as he holds the position of the CEO 

of the exchange. 

I believe that this was an honest 

mistake devoid of ulterior motives 

yet has however thrown up obvious 

conflicts arising from the use 

of the exchange in the launch and 

promotion of the foundation. The 

related issues, impact and implications 

arising therefrom and related 

to now forms the subject of this 

memo to the market. 

That said, when it comes to how 

and what Oscar Onyema, the NSE 

Council and indeed the foundation 

should decide next on this matter, 

sovereignty over decision-making 

does not rest with commentators 

and independent analysts like 

me; they rarely do. It will be one in 

which the parties will have to make 

in the best interest of the market – 

as they wish to be remembered. 

It is my expectation that 

pedigree, intent and value 

orientation(s) will kick in and corrective 

action will be taken to make 

this a non-issue. 

Context matters 

Market operators know the story 

of Ndi Okereke-Onyiuke’s 2008 

outing under the aegis of “Africans 

for Obama Campaign”, the 

fund-raising that followed, and the 

ensuing governance issues raised 

concerning the director-general’s 

role and that of the Nigerian Stock 

Exchange (NSE) as an institution. 

Students of Nigerian corporate 

governance history will equally 

recall that Ndi’s mistake here 

was to repeat the May 2005 act by 

then President Obasanjo to invite 

and receive donations into the 

Olusegun Obasanjo Presidential 

Library (OOPL) project which was 

launched in Abeokuta with the 

goal of raising N7 billion for the 

project, while he was still in office. 

It would appear that the Nigerian 

Stock Exchange hasn’t grasped 

C002D5556 

Memo to the market – The NSE, Oscar Onyema 

foundation and corporate governance 

that history lesson fully. Instead, 

the exchange seems to be acting 

out the same script, the consequence 

of which would indicate 

sadly that there is no institutional 

memory or sustained desire to 

elevate the governance environment 

in our markets beyond where 

it bottomed out. 

To “mobilise and sensitise Africans 

about the Obama policies 

and message”, Ndi Okereke-Onyuike, 

OON, then Director-General/ 

CEO of the Nigeria Stock Exchange 

in 2008 organized and caused to be 

held an August 11, 2008 glamorous 

fundraiser where business leaders 

and high-society elites paid up for 

tables. This generated a whole lot 

of heat and enquiry for which she 

was cleared of any wrongdoing 

because no Nigerian laws were 

broken. That said, the fact that US 

laws prohibited overseas donations 

ab-initio made the purpose, 

positioning and promotion of the 

fundraiser and the associated 

role of the exchange a continuing 

corporate governance concern, 

especially on matters bothering 

on conflict of interest and of roles. 

To demonstrate and deepen 

democracy in Nigeria, then President 

Obasanjo initiated and 

caused to be incorporated on 

November 12, 2002 the Olusegun 

Obasanjo Presidential Library 

Foundation and subsequently 

held a fundraiser on Saturday, May 

14, 2005 for the said presidential 

library. Donors to this project 

included oil companies, financial 

institutions, business leaders and 

high-society elite. 

Good intentions actualized 

should matter & be encouraged 

in our society 

The referenced saga above exemplifies 

Oscar’s predicament with 

the launch on Friday, August 17, 

2018 at the Exchange, of the ONO 

Foundation, which for all intents 

and purpose speaks to our common 

humanity and response to 

the plea for private sector leaders 

to play a structured role in helping 

to build a better society. 

Babatunde Folawiyo, a wellregarded 

business leader and 

chairman, board of trustees, ONO 

Foundation, echoed the message 

from Oscar Onyema when he said 

“the foundation is borne out of an 

understanding that the society of 

our dreams cannot materialize 

if its future (the children and the 

youth) are not properly trained, 

inspired and equipped to be the 

catalyst and springboard of change 

and growth”. 

Good intentions, bad optics for 

governance 

The reasoning for the foundation 

is not a problem and should not 

be a subject of a debate. The issue 

however is with the launch 

signaling, timing, linkage to the 

exchange and role of the principal 

progenitor in current status. It is 

all about corporate governance 

which according to Advocate Johan 

Myburgh “is not a matter of 

right or wrong; it is more nuanced 

than that.” The nuance is exemplified 

in the optics. 

This was an Oscar Onyema 

who was the CEO of the NSE but 

decided to seat for the exams of 

the Chartered Institute of Stock- 

‘ 

I believe that this 

was an honest 

mistake devoid of 

ulterior motives yet 

has however thrown 

up obvious conflicts 

arising from the use 

of the exchange 

in the launch and 

promotion of the 

foundation 

’ 

brokers (CIS), passed and thus 

conferred esteem upon the practice 

members. He is, and has always 

been committed to market best 

practice and this is the threshold 

with which the current optics is being 

viewed. 

The deployment of socially uplifting 

projects in pursuit of the 

common good seldom succeed 

when deployed under a cloud of 

ethical and governance challenges. 

Instead of saluting Oscar however 

for the launch as he did it, we may 

unfortunately end up seeing him 

as a conspicuous victim here of his 

own good track record to date on the 

subject of best practice and higher 

standards corporate governance. 

There must be a more cogent 

explanation for the role of the exchange 

beyond rules, conventions 

and privileges given what we know 

of the man and his service pedigree. 

I am not aware of any known case 

of any wrongdoing against the CEO 

but believe that the elimination of 

‘incestuous relationships’ is critical 

to the functioning of the exchange 

CEO in the discharge of the CEO’s 

responsibilities. 

Oscar N. Onyema is the CEO 

of the Nigerian Stock Exchange 

(NSE), a position he was employed 

to on 4 April 2011; and for which he 

is currently serving a second fiveyear 

term. He has over twenty years 

working experience in the United 

States of America‘s financial markets 

and the Nigerian information technology 

sector. Onyema is also the 

Chairman of the Central Securities 

Clearing System (CSCS) Plc, a fellow 

and member of the Governing 

Council of the Chartered Institute 

of Stockbrokers of Nigeria (CIS), the 

President of the African Securities 

Exchanges Association (ASEA), a 

Global Agenda Council member of 

the World Economic Forum (WEF), 

member of the Board of Trustees 

of the Investors’ Protection Fund 

(IPF), and he serves on the boards 

of all subsidiaries of The Exchange, 

National Pension Commission of 

Nigeria, FMDQ OTC PLC. 

In his work coverage, he had 

served as the senior vice president 

and chief administrative officer at 

American Stock Exchange (Amex), 

BUSINESS DAY 

11 

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which he joined in 2001 and has 

the unique distinction of being the 

first person of colour to hold that 

position, and was instrumental 

in integrating the Amex equity 

business into the New York Stock 

Exchange (NYSE) Euronext equity 

business after the latter’s acquisition 

of Amex in 2008. He then 

managed the NYSE Amex equity 

trading business, which he helped 

position as a premier market for 

small and mid-cap securities. 

Oscar, an alumnus of Harvard 

Business School where he completed 

the Advanced Management 

Program, is no slouch and he 

knows his onions. 

It is this level of responsibility, 

engagement and exposure that 

defines minimum expectations 

and professional conduct which 

makes it all the more baffling why 

he would allow his name to be associated 

with, or involved in the 

implied, if not apparent conflict of 

role situation, the launch of the Oscar 

N. Onyema Foundation (ONO) 

at the premises of the exchange 

presents. 

The Nigerian Stock Exchange 

(as a self-regulatory organization), 

has done a lot of work in the areas 

of corporate governance and has 

adopted best practices as a key 

element in achieving its vision and 

mission. This is well articulated 

and demonstrated by its governing 

board - the National Council of the 

Exchange - who regards corporate 

governance as fundamentally 

important to the discharge of its responsibilities 

and its conduct in all 

its dealings with its stakeholders. 

It would thus stand to reason 

therefore that any appearance 

of conflict will be an issue to be 

addressed under risks associated 

with the executive committee’s 

mandate. 

Identifying risks and concerns 

The Friday escapade and the questions 

it threw up, ought to have 

been an issue which the governing 

council ought to have addressed 

its minds to prior to the event; and 

immediately afterwards vis-à-vis 

the obvious corporate governance 

implications arising therefrom, in 

a clime like ours and at a time like 

this; especially when juxtaposed 

against our recent history of an 

incestuous relationship-biased 

regulatory environment, and the 

steps needed to restore confidence 

in the financial market system, nay 

the capital market. 

The fact that, three or more 

years after, the board of the Securities 

& Exchange Commission 

(SEC) of Nigeria has not been 

officially constituted illuminates 

actions taken by a SRO operating in 

a governance challenged environment 

more clearly. 

Taking together, a common 

view of the ONO foundation profile 

the existence or implied infusion 

of a real or perceived conflict of 

interest or/and role situation on 

face value; at the minimum. 

An attempt to articulate and 

decouple the two roles the CEO of 

the exchange seeks to play here is 

both a matter of precedence and 

corporate governance ethos at the 

exchange. 

The primary concerns relate to 

the determination of the following: 

1. As an employee of the exchange, 

was there a need for, and 

was a request made, and an approval 

granted by the Council of 

the Exchange. 

a. Was there an approval for the 

CEO to serve as a trustee and board 

member of a privately funded foundation 

named after him? 

b. Would having a foundation 

bearing his name and having some 

aspects of its objects similar to 

undertaking by the exchange’s CSRplan 

have led to a consequential 

review of best efforts (including for 

example the mentoring program)? 

c. Would conducting such a 

launch in the exchange and deploying 

its resources in the public 

engagements require an approval? 

and 

d. Did the council consider it 

fit and proper to approve the hosting 

of a bell ringing session for the 

CEO, an otherwise revered activity 

reserved as a sending-off gesture 

by the exchange for deserving 

executives; especially when such 

administrative approvals were 

vested in the CEO (the beneficiary 

in this case)? 

2. Is it an allowable practice for 

a serving CEO to hold a board/ 

trustee position in a private entity 

(including an NGO with related 

parties on board) while in office? 

3. Are there provisions for handling 

co-board positions with directly 

related party(ies) of a listed 

entity in the code and are there 

waivers for this? 

4. Are there disclosure of a 

conflict of interest or role requirements 

for: 

a. The exchange’s CEO where 

such a proposition presents itself? 

b. Any member with direct or indirect 

dealings with the exchange? 

c. The elimination of safeguards 

or wall between the exchange and 

the foundation? 

5. What advisory will the NSE 

provide to firms who approach it 

seeking guidance in deciding which 

social cause (CSR) is priority to the 

exchange between NSE’s CSR activities 

(corporate cancer funding, 

schools program etc) and the ONO 

foundation’s programs? 

6. Would the duplicitous representation 

not serve to convey and deliver 

an “unintended consequence” 

on stakeholders involved with the 

exchange, who would feel the pressure 

and compulsion to “support” 

the CEO’s foundation as part of ‘good 

relationship management? 

7. Would such support contributions 

not qualify as in-kind benefits 

or/and possibly a vehicle for the 

inducement of a principal officer 

of the exchange? 

8. Under what circumstance is 

such a practice allowable for other 

executive committee members who 

may also be so motivated to pursue 

such socially beneficial cause(s)? 

A review of these possible scenarios 

and best practice cases 

guided us to reaching a position, 

if not a conclusion – that this was 

a bad precedence and one that the 

market and principals need to work 

together on by elevating thought to 

resolve along the lines of institution 

building. 

Note: The rest of this article continues 

in the online edition of Business Day 

@https://businessdayonline.com/ 


comment@businessdayonline.com



C002D5556 

Editorial 

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Charles Anudu 

Tunji Adegbesan 

Eyo Ekpo 

Fuelling poverty through import ban 

The federal 

government 

recently announced 

that 

it plans to 

close Nigeria’s border 

with Benin Republic to 

tackle the menace of rice 

smuggling into the country. 

The minister of Agriculture, 

who announced 

the move, said shutting 

the borders had become 

necessary to encourage 

local production and sustain 

the economy of the 

country. 

The federal government 

and even the president 

had been claiming 

that Nigeria was on its 

way to self-sufficiency 

in rice production as the 

country’s rice import was 

down by 90 percent. The 

president also boasts that 

rice import will be completely 

stopped later this 

year to encourage local 

production. 

Well, rice importation 

through the ports have 

been technically banned 

since 2015 as a discouraging 

70 percent tariff 

more or less effectively 

dissuaded importation 

through the ports, while it 

remained totally banned 

through the land borders. 

The reality though, 

as BusinessDay findings 

have shown is that, as legal 

importation to Nigeria 

drops drastically, neighbouring 

countries such as 

Benin, Cameroun, Niger 

and others have seen their 

parboiled rice imports increasing. 

Ironically, these 

countries mostly consume 

white rice (another variant 

of the staple), whereas they 

import more parboiled rice, 

which, consideration their 

population, can last them 

for a decade. However, they 

continue to import parboiled 

rice every year while 

legal imports continue to 

decline in Nigeria as smuggling 

increases exponentially. 

Data by the Thai Rice Exporters 

Association shows 

that Benin Republic’s rice 

imports from Thailand from 

January to November 2017 

stood at 1.64 million metric 

tonnes, a 32 percent 

increase from 1.24 million 

metric tonnes within the 

same period in 2016, and 

an increment of 104.45 percent 

from 805,765 metric 

tonnes exported to Benin 

republic in 2015. Cameroun 

also imported 663, 667 metric 

tonnes of parboiled rice 

from Thailand between January 

and November 2017, a 

47.64 percent increase from 

449, 513 within the same 

period in 2016, and 449, 297 

metric tonnes in 2015. It is 

safe to say that most of the 

imports to these countries 

end up in the Nigerian market 

through smuggling. 

An investigation carried 

out by BusinessDay some 

months ago also shows 

that smuggling is rife along 

the official border points 

and despite the fact that 

rice importation is banned 

through the borders, traders 

continue to import the 

commodity through official 

border points usually after 

settling customs officials. 

What is more, the prices 

of the smuggled rice are 

way lower than those of 

locally produced rice. Consequently, 

poor Nigerians 

have continued to patronise 

the imported rice, which 

they feel is also of higher 

quality than locally produced 

rice. 

Now that the reality has 

dawned on the government, 

it is planning to shut the 

border with Benin Republic 

and also use drones to 

monitor smuggling so as 

to prevent or stop them. 

But we need to ask: does 

the government also plan 

to shut the borders with 

Niger Republic, Chad and 

Cameroon also? Does it 

plan to expel all the custom 

officials at the borders that 

connive with smugglers to 

bring in the rice? 

We must stop chasing 

shadows. We cannot at one 

instance, be advocating free 

trade and be putting barriers 

to free trade all over. 

Secondly, the government 

cannot be stifling competition 

just so to support and 

protect some inefficient 

but big cartels of local rice 

producers. The government 

cannot be claiming to be 

interested in addressing 

poverty and at the same 

time encouraging or supporting 

monopolies that 

always results in higher 

prices. Imported rice have 

continued to appeal to Nigerians 

because they are 

way cheaper and of more 

quality than the local ones. 

Instead of fighting the wars 

of the local rice cartel, the 

government would do well 

to improve their operating 

environment to be able to 

compete favourably with 

imported rice. 

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Suspected killer of Ekiti 

monarch arrested 

The police have 

arrested a mentally 

challenged 

person who allegedly 

stabbed and killed 

on Gbadebo Ogunsakin, a 

traditional ruler of a community 

in Ekiti State. 

Caleb Ikechukwu, the 

spokesmen of Ekiti Police 

Command, confirmed this 

in Ado on Tuesday. 

The suspect, according 

to the police, stabbed Oba 

Ogunsakin of Odo Oro 

Ekiti, in Ikole local government 

area on Monday, 

August 20. 

Ikechukwu gave the 

name of the suspect as 

Kaduna warns residents of 

imminent flooding 

Kaduna State government 

has urged 

communities 

along riversides to 

maintain vigilance to avoid 

being victims of imminent 

flooding in the days ahead 

due to intense rainstorms 

Abdullahi Rigasa, the 

general manager, Kaduna 

Environmental Protection 

Authority (KEPA), stated 

this in Kaduna, warning 

that it was no longer safe 

for residents living along 

the river banks. 

He listed Igabi, Kaduna 

North, Kaduna South, 

Soba and Kaura local 

government areas as the 

places likely to be affected. 

Rigasa said the mandate 

of KEPA was to pre- 

Foundation disburses 

N1m to students 

SIKIRAT SHEHU, Ilorin 

As part of its efforts 

to empower 

young ones and 

prepare them for 

the future, Saliu Mustapha 

Foundation has awarded 

first five best students and 

their teachers with over 

N100, 000. 

Saliu Mustapha, founder 

of the foundation told 

journalists in Ilorin that 

the foundation was established 

to touch the lives of 

the downtrodden in the 

society, students and people 

with different health 

challenges. 

He noted that the foundation 

aimed to impact on 

the lives of the people in 

the immediate environment, 

saying that govern- 

Omoniyi Stephen and was 

arrested around 4.30 pm 

on Monday around Ajao 

Market in Ado-Ekiti, the 

state capital. 

“I can confirm to you 

that the suspect has been 

arrested. “He has confessed 

to the act and our 

investigation continues. 

“The matter has been 

transferred to the State 

Criminal Investigation Department 

(SCID) for more 

investigation.” 

He assured that the police 

would be professional 

in their investigation into 

the circumstances surrounding 

the killing. 

vent the occurrence of 

flood and ensure that residents 

were well prepared 

for any imminent floods. 

“Last year, flooding was 

recorded in 14 local councils 

namely; in Kaduna 

South, Kaduna North, 

Kaura and Chikun local 

government areas with no 

casualties.” 

He advised residents of 

the area to take proactive 

measures such as clearing 

water channels and avoid 

activities that could block 

the free flow of water. 

He further advised relevant 

agencies to perfect 

their emergency evacuation 

plans and activate 

them as quickly as possible. 

NAN 

ment alone should not be 

saddled with the responsibility 

of providing for the 

people, hence the need 

for non-governmental organsations 

and wealthy 

individuals to support government 

at all levels. 

He said: “This for me 

is a way of giving back 

to the society, and when 

you look from a strategic 

position where I stand, if 

you don’t educate people 

then you’re bound to be in 

an insecure environment. 

When people are educated, 

they will know their 

left from their right, then 

you can rule out ignorance 

from what they are doing, 

but when you ignore them, 

then for those of us that 

believed that we are successful, 

we are only living 

in the mist of dangers.” 

The Nigerian 

Medical Association 

(NMA) 

in Cross River 

has threatened 

to withdraw medical services 

from the state over 

incessant kidnapping of its 

members. 

NMA issued the threat 

in a communique jointly 

signed by the association’s 

chairman, Agam Ayuk, and 

the secretary, Ezoke Epoke, 

after its emergency general 

meeting in Calabar. 

The association said 

that the decision to withdraw 

its services became 

necessary due to increasing 

cases of kidnapping of 

its members in the state. 

It recalled that the wife of 

The Federal Government 

has given the 

go-ahead to the Rural 

Electrification 

Agency (REA) to provide 

electricity to rural areas, 

using hybrid solar systems, 

which would be procured 

using the Public Private 

Partnership (PPP) model. 

Chidi Izuwah, the director-general, 

Infrastructure 

Concession Regulatory 

Commission (ICRC), who 

made this known, added 

that the commission has 

issued an Outline Business 

Case (OBC) and Full 

Business Case (FBC) compliance 

certificate for the 

BUSINESS DAY 

13 

CityFile 

Ongoing construction of the J.K Randle Centre for Yoruba Culture and History at Onikan, being built by Lagos State Government. 

Kidnapping: NMA to 

withdraw services in C’ River 

MIKE ABANG, Calabar 

one of its members was kidnapped 

on August 15 and 

released the following day. 

“The recent kidnap of 

the spouse of a medical 

doctor is the second incident 

of doctors’ targeted 

kidnap in Cross River in 

the past one month. In 

the last 18 months, within 

Calabar alone, five doctors 

and five dependents/family 

members have been kidnapped 

at various times 

and locations. 

“The release of affected 

victims has been conditional 

including payment 

of ransom in most instances. 

This has caused great 

psychological, emotional 

and financial distress to 

the affected families. 

“NMA in Cross River 

wishes to reiterate that we 

project. 

According to Izuwah, 

the compliance certificates 

issued by the ICRC 

meant that the project 

proposal as presented by 

the REA is economically 

viable and of huge benefit 

to the country. 

“In support of this 

noble objective of government, 

we in the ICRC 

today issued a joint OBC 

and FBC compliance certificate 

to enable the REA 

commence a pilot long 

term PPP. 

“The focus will be on 

providing affordable and 

economically rewardshall 

withdraw all medical 

services without any 

notice, anytime a doctor or 

dependent is kidnapped. 

“Medical doctors cannot 

continue to save lives 

while their very lives and 

those of their dependents 

remain under constant 

threat by criminals.” 

The association said 

that henceforth, it would 

demand refunds from the 

state government for any 

conditional release anytime 

a doctor or dependents 

was kidnapped. 

It further said that the 

resolution became imperative 

due to the devastating 

financial condition 

that doctors found 

themselves due to kidnap 

incidents. 

“We wish to remind 

ing hybrid solar power to 

some rural communities. 

“On successful completion 

of the pilot, massive 

roll out will occur nationwide,’’ 

Izuwah said in a 

statement. 

He added that the certificate 

was received by Sanusi 

Ohiare, the executive 

director, Rural Electrification 

Fund of the REA on behalf 

of Damilola Ogunbiyi, 

managing director of REA. 

The African Development 

Bank (AfDB) recently 

identified infrastructure 

deficit as one of the biggest 

constraints to competitiveness, 

economic 

the state government that 

it is her duty to provide 

adequate security for the 

citizenry at all times. 

“The NMA in Cross 

River remains fully committed 

to partnering with 

the state government in 

providing quality healthcare 

services to the general 

populace. 

“We therefore, implore 

the Cross River government 

to double her efforts 

in stemming this new 

surge of kidnapping in the 

state,’’ it said. 

The association however, 

thanked the state 

governor, Ben Ayade and 

security agencies in the 

state for their efforts towards 

ensuring the safe 

release of the abducted 

wife of its member. 

Rural electrification: FG approves procurement of solar systems 

growth and diversification 

in Nigeria. 

The bank put the crippling 

infrastructure challenges 

in the country at 

about 300 billion dollars. 

Given the government’s 

limited access to international 

debt, revenue 

constraints and competing 

priorities, PPP remains the 

sustainable option for the 

country. 

To bridge this gap, the 

ICRC believes that power 

must attract investments 

of about 20 billion dollars, 

rail tracks, 17 billion dollars, 

road, 14 billion dollars and 

oil and gas, 60 billion dollars.

C002D5556 Thursday 23 August 2018 


BUSINESSTRAVEL 

Ground operations, customer service, 

cabin crew hottest jobs in aviation 

…as survey reveals challenges in talent acquisition, training 

Stories by IFEOMA OKEKE 

Delta Air Lines has entered 

into a codeshare partnership 

with Kenya Airways 

on flights to and from Kenya 

Airways’ hub at Nairobi’s Jomo 

Kenyatta International Airport. 

Effective August 11, Delta’s code 

will be placed on Kenya Airways’ 

flights from Amsterdam, Paris, 

London, and Accra to Nairobi, enhancing 

connectivity and providing 

customers with a one-stop seamless 

travel experience from the United 

States. 

In addition, Delta will place its 

code on Kenya Airways’ services to 

more than 10 key cities across Africa, 

including: Addis Ababa, Ethiopia; 

Lilongwe, Malawi; Maputo, Mozambique; 

Johannesburg, South Africa 

and Djibouti City, Djibouti. 

“Delta is the leading carrier between 

the United States and Africa. 

The major areas of job 

growth in the aviation 

sector will be in 

in ground operations, 

customer service and 

cabin crew a global survey of Human 

Resources (HR) professionals 

by the International Air Transport 

Association (IATA) has found 

However, key challenges in 

talent acquisition, training and 

retention are among the teething 

challenges facing the sector, the 

survey also found. 

More than 73perecent of respondents 

expect the major areas 

of job growth to be in ground operations, 

customer service and cabin 

crew while Forty eight percent 

report that finding new talent is a 

challenge, both because of the lack 

of availability of candidates with the 

right skill levels and qualifications 

as well as, in some cases, salary 

demands of new applicants. 

In addition to the salary and 

benefits package of each employee, 

the HR professionals identified 

career progression opportunities 

(49percent) and development 

and training (33percent) as high 

priorities in job satisfaction and 

retention. 

Only 28percent of respondents 

reported that current training is 

effective, with many organizations 

seeking to complement their inhouse 

training with external partners 

to improve the effectiveness 

of the training. 

Safety and customer service 

skills are priorities for hiring managers 

across the industry. While 

technology is indeed changing 

the customer service role, it is not 

replacing it. 

Approximately 75percent of 

respondents expected an increase 

in customer service, ground operations 

and cabin crew jobs over the 

next two years. 

That is higher than the 65percent 

of respondents that expect growth 

in security jobs and 63percent 

that expect growth in regulatory 

positions. A number of airlines contributed 

insights into the report, 

Delta Air lines, Kenya Airways expand 

connectivity between U.S, Africa 

This new partnership with Kenya 

Airways’ will give customers even 

greater choice for travel between the 

continents thanks to Kenya Airways’ 

extensive network beyond Nairobi,” 

Corneel Koster, Delta’s senior vice 

president for Europe, the Middle East, 

Africa and India said. 

Vincent Coste, Kenya Airways 

Chief Commercial Officer, said: “We 

are delighted about this closer relationship 

with Delta, and believe that 

this will bring real benefits to our 

customers and our business. Kenya 

Airways and Delta are both premier 

airlines and this agreement is a positive 

step in our cooperation.” 

Delta and Kenya Airways are both 

members of the SkyTeam alliance. 

Frequent Flyers can earn and redeem 

miles on both airlines, while Elite Plus 

travelers benefit from SkyPriority 

services. 

including Brendan Noonan, Qatar 

Airways Group’s vice president, 

Talent Development, said “As an 

airline, we need to find out where 

the new touch points are that we 

can bring in customer service to 

support and complement technology 

to make the overall customer 

experience quicker and more enjoyable. 

There is an expectation from 

customers and we have to meet that. 

“It is an exciting time to be in this 

business. We were really looking 

forward to receiving the results of 

this industry survey and we hope it 

can be helpful to guide HR professionals 

in their decisions regarding 

staffing planning, training opportunities 

and areas to focus on as our 

industry grows to unprecedented 

levels,” Guy Brazeau, IATA’s Director 

of Training and Consulting said. 

The forecast growth in passenger 

traffic will necessitate careful 

planning in the appropriate staffing 

levels across many job categories in 

the industry. IATA commissioned 

market survey experts Circle Research 

to learn more about how HR 

decision-makers were managing 

the retention, training and recruiting 

of skilled professionals to fill the 

anticipated job gaps. Respondents 

were from airlines, airports and 

ground service providers, spanning 

all geographic regions and 

representing a range of organizational 

size 

Lufthansa offers German astronaut’s meals 

on long-haul flights from Germany 

Space enthusiasts have something 

to look forward to! Still 

until the end of August, Lufthansa 

will be offering its 

Business Class passengers on longhaul 

flights departing from Germany 

the opportunity to experience what 

life is like in outer space – at least in 

culinary terms. 

Passengers will have the chance 

to enjoy one of the menus that German 

born astronaut, Alexander Gerst, 

and his crew will also be receiving 

onboard ISS as special highlights, 

Chicken Ragout with Mushrooms. 

For those passengers from Nigeria 

that would not like to experiment with 

Space Food, Lufthansa still offers 

Jollof Rice on its flights leaving Nigeria 

– in Business as well as Premium and 

Economy Class. 

Earlier this year, Alexander Gerst, 

the LSG group, Lufthansa’s catering 

and hospitality expert, customdeveloped 

and supplied the “bonus” 

food for German ESA astronaut who 

started the “Horizons” mission early 

June. 

In addition to the “usual” space 

food consumed by the astronauts 

aboard the ISS, “bonus” meals are 

consumed on special occasions by 

the crew as a team event to foster 

team spirit and motivation during 

their six-month stay in space. 

‘Anything is possible’ was the 

mantra of the LSG Group Culinary 

Excellence Team as they collaborated 

with the European Space Agency 

(ESA) to provide the bonus dishes for 

the Horizons mission. 

With particular consideration to 

the unique requirements of space 

food, which will be consumed in 

zero gravity, they developed six special, 

innovative and delicious meals 

which were specifically requested by 

Alexander Gerst. 

The collection of meals includes 

typical dishes from the astronaut’s 

home region, Swabia, such as 

Maultaschen and Spätzle, and his 

preferred international dishes, such 

as Chicken Ragout with Mushrooms. 

In order to ensure that the meals 

fulfilled the specific health and safety 

requirements of the mission, the LSG 

Group team needed to design them to 

be low sodium and able to maintain 

a shelf life of two years. 

The Lufthansa Group is the world’s 

largest aviation group in terms of 

turnover as well as the market leader 

in Europe’s airline sector. 

Ethiopian Airlines 

invites African 

countries to buy shares 

after declaring profit 

Ethiopian Airlines is undisputedly 

Africa’s largest airline 

by revenue and profit. 

Yet the state-owned carrier 

just doesn’t want to dominate the 

continent’s skies: it’s also looking to 

boost Africa’s fragmented airspace 

through increased connectivity, 

forming strategic alliances, besides 

launching or reviving new sovereign 

African airlines. 

Ethiopian’s latest pitch is that it 

shouldn’t just be Africa’s top airline in 

passenger numbers and destinations 

but also in its ownership structure. 

Tewolde Gabremariam, the company’s 

head, suggested the airline 

should be co-owned by African 

governments. 

Tewolde said Ethiopia’s government 

should capitalize on the airline’s 

stature to consolidate its place in the 

African continent. “As a Pan-African 

airline, I don’t see any reason why we 

should not sell the minority shares of 

Ethiopian Airlines to African countries 

if they are interested in buying.” 

More than anything, Tewolde’s 

bullish statement is reflective of the 

bold new era in Ethiopia. Since Prime 

Minister Abiy Ahmed came to power 

in April, he has overseen radical reforms 

that have changed the country’s 

trajectory. These include introducing 

a major policy aimed at loosening the 

government’s monopoly on several 

key economic sectors, including aviation 

and telecommunications. 

Tewolde’s words are also indicative 

of ET’s record success in improving 

its financial, operational, aircraft 

fleet, and annual passenger numbers. 

In the fiscal year ending July 2018, 

the carrier announced it bought a 

45% stake to revive Zambia Airways, 

which went into liquidation way back 

in 1994. 

To spread its regional footprint, 

it also kickstarted negotiations to 

establish new hubs in Mozambique, 

Chad, and Equatorial Guinea in addition 

to the ones it already operates in 

Malawi and Togo. As part of its efforts 

to launch and manage new African 

haulers, the company recently said 

they were the lead contestant in a 

tender aimed at setting up Nigeria’s 

controversial new national airline. 

Looking to tap into improving 

intra-African travel, ET increased its 

African network to over 58 out of its 

over 100 international destinations, 

introducing flights to Kaduna, Nigeria; 

Kisangani in DR Congo, and 

Nosy-Be in Madagascar. In late July, 

the airline announced a deal with 

DHL to build the leading cargo logistics 

center in Africa. 

To attract more than its current 

10.6 million passengers, the airline 

introduced a plan enabling travellers 

to discover and experience the many 

historical, cultural, religious and 

natural treasures of Ethiopia. 

As of June, Ethiopia introduced 

an e-visa service to all international 

visitors, easing access for passengers 

with layovers to enter the country. 

Ethiopian has managed this even 

as airline performance in Africa remained 

weak, load factors remained 

inadequate, jet fuel prices rose, and 

competition stiffened from international 

carriers like Emirates.


C002D5556 

BUSINESS DAY 

15 

Research & 

INSIGHT 

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

Why is the share of non-oil export to GDP declining? 

TELIAT SULE 

If you haven’t seen the 

recently released annual 

report of the Central Bank 

of Nigeria (CBN) for the 

period ended December 

31, 2017, especially with regard 

to the values of the nation’s 

non-oil export revenues on one 

hand, and the amount each 

of the top 100 exporters made 

as earnings during the same 

period, you might not understand 

the rationale behind this 

question. 

The CBN reported improvement 

in the nation’s non-oil 

export earnings as at the end 

of 2017 but the share of nonoil 

exports relative to GDP is 

declining. It is on record that in 

the last two years the CBN had 

devalued the naira with a view 

to addressing the pressures in 

the foreign exchange market. 

The policy was also meant to 

make Nigeria’s goods competitive 

at the international market. 

“Non-oil revenue (gross), at 

N3, 207.9 billion, or 2.5 per cent 

of GDP, accounted for 43.8 per 

cent of total revenue, indicating 

a 9.8 per cent increase above the 

level in 2016. The rise in non-oil 

revenue reflected improvement 

in economic activities in the 

non-oil sector, and the expansion 

of the tax base. A breakdown 

of non-oil revenue (gross) 

indicated that corporate tax 

(CT), VAT and customs/excise 

duties rose by 22.0, 19.3 and 

14.4 per cent to N1,206.3 billion, 

N967.7 billion and N628.0 

billion, respectively”, the CBN 

said in its 2017 annual report 

released recently. 

In 2013, the share of non-oil 

revenue relative to GDP stood 

at 3.5 percent as against 8.4 percent 

for oil revenue. It was 3.4 

percent for non-oil revenue in 

2014 compared with 7.5 percent 

for oil revenue in the same year. 

The share of the non-oil revenue 

to GDP further declined to 3.1 

percent in 2015; 2.7 percent in 

2016 and 2.5 percent in 2017. 

Source: CBN, BRIU 

Source: CBN, BRIU 

Furthermore, Nigeria’s 

non-oil export revenues of 

the top 100 non-oil exporters 

remained flat at the end of 

last year. The top 100 non-oil 

exporters earned $909.45 million 

in FY 2017 compared with 

$910 million in FY 2016. Non-oil 

export earnings in 2017 were 36 

percent lower than $1.43 billion 

recorded in 2015. 

Why is Nigeria earning less 

now that our currency has been 

devalued? The official exchange 

rate changed from N167.5/$ in 

January 2015 to $196.47/$ which 

lasted from February 2015 to 

that year’s end. That left us with 

an average official exchange rate 

of N192.66/$ in 2015. In 2016, 

the rate moved from N196.47/$ 

to N283.75/$ before it settled at 

N305/$. In effect, the average 

official exchange rate for 2016 

was N252.69/$. 

Throughout 2017, the official 

exchange rate remained stable 

at N305.45/$. This technically 

means that non-oil exports were 

cheaper in 2016 when compared 

with their prices in 2015 

and even cheaper in 2017 as 

against their prices in the previous 

two years. On the contrary, 

non-oil exporters made the 

most earnings in 2015 compared 

with 2016 and 2017. 

Shuaib Idris, managing director 

and chief executive officer 

of Timeline Consult Limited, 

attributed the declining share 

of non-oil export share of the 

GDP to rebasing of the economy 

and the non implementation of 

export expansion grant scheme 

(EEG). 

“The prices of our major nonoil 

export produce have been 

relatively stable at the international 

market for the past 2 to 3 

years. When I say stable, doesn’t 

necessarily mean that the prices 

have remained at the same 

level. But a plus and minus 10 

percent is still acceptable. When 

you look at it, the economy was 

rebased which raised our GDP 

by about 100 percent and that 

was through financial engineering 

and not through expansion 

in productive activities, therefore, 

the decline in the share of 

non-oil export relative to GDP 

was because the rate of growth 

of non-oil export was not as 

much as the economy expanded 

when we rebased”, Idris said. 

He advised the federal government 

to implement the EEG 

scheme which it has abandoned 

for a while. 

“Government needs to start 

implementing the EEG scheme, 

as it has the potential to improve 

the non-oil export”, he added 

Another interesting trend 

emerging from the records of 

the top 100 non-oil exports is 

that Olam Nigeria, Nigeria’s 

number one non-oil exporter, 

has lost its position. Olam Nigeria 

exported $143.86 million 

worth of goods as it accounted 

for 10 percent of the nation’s 

non-oil export earnings in 2015. 

Its exports fell by 23 percent to 

$110.89 million in 2016 even 

when it accounted for 12 percent 

of the nation’s non oil export 

earnings in that year. 

Still on the 2015 non-oil 

exporters’ list, Bolawole Enterprises 

sold $90.96 million 

worth of goods to be number 2. 

The British American Tobaco 

(BAT) exported $80.59 million 

as number 3 while AIS Traders 

and Industries, as well as 

Saro Agro Allied sold each sold 

$40.80 million as number 4 and 

5 respectively. 

In 2016, BAT sold $145.48 

million goods overseas, and 

the firm emerged as the number 

1 non-oil exporter. Others 

among the top five are Olam 

Nigeria, $110.89 million; Indorama 

Eleme Fertilizers, $69.81 

million; Atlantic Shrimpers, 

$38.40 million and Olatunde 

International, $8.17 million. 

The British American Tobacco 

dominated the table of 

the top 100 non-oil exporters 

in 2017, with $145.48 million 

in earnings, accounting for 16 

percent of the total non-oil exports. 

It was followed by Olam 

Nigeria, $110.89 million; Indorama 

Eleme Fertilizers, $69.81 

million; Atlantic Shrimpers, 

$38.40 million, and Tulip Cocoa 

Processing, $32.60 million. 

“Nigeria seems not to be 

benefiting from devaluation 

as most of the transactions are 

channelled through the informal 

sector, which means the 

informal sector is growing supported 

by smuggling activities. 

It is only when the government 

does the right thing that exporters 

will begin to channel their 

earnings through the formal 

sector”, a senior analyst who 

wanted anonymity said. 

The large arbitrage opportunity 

between the official exchange 

rate of $306/$ and N366/$ at the 

parallel market has been fingered 

as a major factor. In 2017, most 

of the nation’s non-oil exporters 

sold goods to customers in 

Liberia, Guinea, Ghana, Cameroun, 

Cote D’Ivoire, Niger, Sierra 

Leone, Togo and Ethiopia among 

others. 

“The gap between the official 

exchange rate and parallel rate 

is tempting and should be addressed 

to bring more transactions 

into the formal sector”, one 

of our contacts said. 

In the last quarter of 2017, 

trade with countries on the African 

continent accounted for 

2.1 percent of Nigeria’s exported 

agricultural goods; 7.7 percent 

of raw materials exports; 34 percent 

of solid minerals exports; 

98 percent of energy goods 

exports; 45 percent of manufactured 

exports, and 6.1 percent of 

other oil non oil exports. 

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16 

BUSINESS DAY 

COMPANIES 

& MARKETS 

Company news 

analysis and insight 

C002D5556 


Cheetah Africa canvases for 

advancement of blockchain 

projects 

Pg. 17 

George Street Investment announces 

berth of e-commerce platform 

ODINAKA ANUDU 

George Street Investment 

International 

(GSII) 

is re-engineering 

the e-commerce 

industry in Nigeria and 

Africa, introducing an online 

solution that optimises the 

market experience of players 

in the selected emerging 

sectors. 

A statement signed by 

Kunle Sadare and Awele L. 

George identifies the new 

platform as Profundo Online 

Market hub Solution. The 

launch of this platform will 

take place on September 1 

in Lagos. 

The statement says that 

GSII has designed the platform 

as an exclusive online 

integrated market hub for 

emerging products and service 

providers, as well as for 

creative interiors for homes, 

hospitality, offices, kitchen, 

lounge, arts and crafts galleries. 

“It is based on this strategic 

intent that Profundo was 

broadly designed as an online 

market hub to provide the 

first-of-its-kind exclusive and 

preferred online placement 

for products and services in 

the creative and emerging 

industries, which include, but 

not limited to creative interiors, 

designs/decors, arts and 

crafts, media, sports, visual 

merchandising & branding, 

animation, artificial intelligence 

& tech-related products 

and services,” the statement 

says. 

It explains that the platform 

serves as a social channel 

for special broadcast relating 

to unique programmes 

and services. 

“By this insightful measure, 

the Nigeria retail e-commerce 

industry comes under 

the disruptive influence of a 

new brand that balances the 

act in setting the ‘experience 

equilibrium’ between the 

vendor and the consumer using 

the PeakEnd Rule. In other 

words, Profundo brings to the 

market a profound change of 

viewing customer experience 

from just a ‘consumer standpoint’ 

to a total customer 

experience involving the vendor 

as well, via a strategic 

combination of quality, trust 

and reach,” it says. 

The statement urges professionals, 

products and ser- 

vice vendors who aspire to 

take advantage of the Profundo 

Integrated Online platform 

to register for the unveiling 

programme, adding that they 

are also free to contact its 

following representatives for 

detailed advice and direction. 

L-R:Joy Okuma, assistant director and head, regulation & monitoring dept, NLRC; Omolola Allison, scientific officer, quality and 

assurance development, Consumer Protection Council, Boma Tai-Osagbemi, head digital commerce unit, Interswitch; Femi 

Olorunmaye Customer Insight Executive, Interswitch and Adetayo Teluwo, group head digital payments, product and marketing 

management, Interswitch at the Quickteller Delight Promo Draws in Lagos. 

Pic by Pius Okeosisi 

Wapic Insurance drives ‘Road 

Sense’ campaign for safety 

Modestus Anaesoronye 

Underwriting firm, 

Wapic Insurance 

Plc has commenced 

a vehicular 

intelligence campaign 

that emphasizes road rules 

and discipline, as essential 

for safety on our roads. The 

Company is touched by the 

rate of accidents on Nigerian 

roads, and believes that enhancing 

road user’s knowledge 

and compliance would 

boost safety and increase 

happiness. 

The campaign, tagged 

“Road Sense” is a 3-month 

long advocacy conceived 

to encourage and entrench 

safe-road use culture 

among Nigerians. Specifically, 

the digital instructive 

awareness drive will 

promote knowledge of the 

road signs and encourage 

the different categories of 

road users to respect the 

meaning of the signs on 

our roads in our daily endeavours. 

“Road-Sense” is an 

attitudinal-change online 

campaign dedicated to promoting 

safety on Nigerian 

road by calling Nigerians to 

responsibility. The initiative 

is sequel to the highly successful 

“Safety-on-Wheels” 

campaign executed by Wapic 

Insurance in partnership 

with some notable government 

and security agencies 

including the Nigeria Police 

Force (NPF), Federal Road 

Safety Corp (FRSC) and Lagos 

State Transport Management 

Authority (LASTMA) in February. 

Unlike the ‘Safety-On- 

Wheels’ campaign, which 

enlightened over 1000 drivers 

about safe road-use practices, 

importance of adherence to 

road traffic regulations and 

appropriate road as well as 

vehicle maintenance cultures, 

“Road-Sense”seeks to 

reach a broader audience 

across the different demographics. 

According to Adeyinka 

Adekoya, the Company’s 

managing director “many 

road users do not really 

know the rules of the road or 

understand the signs. This 

results in bad driving habits 

as well as inappropriate 

road-use culture that cause 

accidents”. 

As an educational advocacy 

campaign, “Road Sense” 

seeks to change the current 

road-use culture in Nigeria by 

calling everyone to responsibility 

through awareness and 

knowledge of the different 

road signs and what they represent 

for every category of 

road users, including motorists 

and commuters as many 

drivers in Nigeria do not really 

understand the rules of 

the road and thus are unable 

to abide by the rules, which 

leads to bad driving habits 

and ultimately accidents. The 

ultimate plan is to educate as 

well as encourage sensible 

behaviors and habits on the 

roads. 

Wapic Insurance is a vociferous 

advocate of proactive 

risk avoidance. The underwriting 

firm, which boasts 

an enviable record of claims 

payment, is a prime promoter 

of initiatives that empower 

people with relevant knowledge 

and apposite skills that 

reduce road accidents in 

Nigeria. 

As a socially responsible 

corporate citizen with focus 

on thematic areas of Health, 

Education, Social Empowerment 

and Environment, 

Wapic Insurance is nationally 

and internationally acknowledged 

for its defining roles 

and social interventions that 

have consistently enhanced 

the quality of living and humanity. 

Through its numerous 

interventions, the company 

is committed to driving social 

progression and instituting 

safe-road use culture in 

Nigerians, by ensuring that 

motorists, passengers and 

pedestrians have adequate 

knowledge about road-use 

commandments that guide 

traffic interactions. 

GDL launches low-risk 

‘Money Market Fund’ for 

just N10, 000 

Growth and Development 

Asset 

Management 

Limited (GDL) is 

doubling-down on its commitment 

to provide first-rate 

financial solutions to corporate 

and private investors 

with the announcement of 

the launch of its ‘One Billion 

Naira Money Market Fund’ 

which opens for subscription 

on Wednesday, 15 August, 

2018. 

The ‘GDL Money Market 

Fund’ is an open-ended 

mutual fund authorized and 

registered in Nigeria as a Unit 

Trust Scheme under Section 

160 of the Investment and 

Securities Act (‘ISA’) that 

invests in broadly diversified 

short-term money market 

portfolios ranging from treasury 

bills, commercial papers, 

and banker acceptances. 

With a minimum investment 

of N10, 000, the low-risk 

fund can be bought and sold 

throughout its existence. 

Unlike some other investments, 

the ‘GDL Money Mar- 

ket Fund’ also offers regular 

income to investors. 

Kolawole Ayeye, group 

managing director/CEO of 

GDL in his presentation said 

“GDL is set to become one of 

the leading diversified financial 

institutions in Nigeria, 

and we have shown our commitment 

to improving lives 

and providing financial solutions 

to commercial ventures 

across Nigeria.” 

“Our professional managers 

are skilled and experienced 

in the industry and we 

will ensure effective management 

of the fund – with GDL 

your investment is secure,” 

he added. 

There is no maximum 

limit on the amount to be 

invested. All you need to do is 

ensure that additional investments 

are not less than 1,000 

Naira. The benefits of the 

‘GDL Money Market Fund’ 

are enormous for all investor 

classes in the country with the 

flexibility of the investment 

and higher yielding interest 

rates than standard banks.

Thursday 23 August 2018 BUSINESS DAY 17 

COMPANIES & MARKETS 

Cheetah Africa canvases for 

advancement of blockchain projects 

Abimbola Hassan 

Blockchain project 

among Africans 

have been 

relatively foiled on 

grounds of scam 

due to lack of support for 

development to enable techprenuers 

create and make 

available new products existing 

on the blockchain, a problem 

identified by Cheetah, a 

Lagos based leading start-up. 

In its recent launch in 

Lagos this month, Cheetah 

Africa, a non-profit making 

organisation expresses its desire 

to help young enterprising 

blockchain developers to 

achieve their goal of creating 

products which entire existence 

depend on blockchain. 

According to Lucky Ukwakwe, 

co-founder Cheetah 

Africa, “in ensuring projects 

supported are worthy to push, 

the body will ensure that “audit 

and vetting are done before 

Initial Coin Offering (ICO). 

Ukwakwe noted that the 

verifying process are done 

as a standard procedure for 

transparency, especially in a 

world where we have so many 

project without due diligence. 

“The platform will conduct 

an acid test for aspiring startups 

and periodic audit will be 

followed in ensuring due process 

on the projects advancement, 

opening up an avenue 

where Cheetah will be seen 

as a pointer for African blockchain 

Start-up development,” 

Nathaniel Luiz, co-founder at 

Cheetah Africa said. 

Cheetah Africa was cofounded 

by Lucky Ukwakwe 

and Nathaniel Luiz who have 

knowledge about blockchain 

project due to their participation 

in blockchain projects 

across the world such as Ethereum, 

Dash token, Humaniq, 

Time chain, KIN, Zcash and 

Status are now laying out their 

experience for developments 

of block chain project as they 

claim Africa is a fertile ground 

which is meant to be best cultivated 

by Africans. 

Another cofounder of 

Cheetah Africa Nathaniel 

Luiz stated that the firm is 

positioning itself to be the 

connecting bridge between 

African start-up and innovations 

to the world, by re-writing 

the African story where 

Africans will be looked away 

from fraud and theft. 

“Some of the projects on 

board include blockvibranium, 

webercoin, Biya, Esusu which 

Cheetah is fully partnering with 

in ensuring successful projects 

execution,” Luiz, Co-founder of 

Cheetah Africa said. 

L-R: One of the beneficiaries, Bunmi Akinbogun; Permanent Secretary, Ministry of Homes Affairs, Toyin Awoseyi; another beneficiaries, 

Yisa Babalola, Olaniyi Olawode and Sunday Kayode ,during the empowerment and presentation of Welfare materials to Widows, 

Orphans, Disabled, and Aged Ex-service men, by Nigerian Legion, Lagos State Council in Collaboration with the State Government 

in Lagos. 

An Ecobank research institute 

report on blockchain 

and crypto currency shows 

that African regulators are 

adopting the ‘wait and see’ 

approach which is further 

dragging the level of adoption 

amongst African countries 

while been aware of the risk 

and potential positive benefits 

of blockchain and cryptocurrencies 

adoption to economic 

advancements. 

The report disclose that 

out of all African countries 

only South Africa has given 

a favourable and permissive 

stance as regards crypto 

currency and blockchain 

developments but not with 

full legality whereas Ghana, 

Senegal, Cameroon, Zambia 

and Zimbabwe have shown 

signs of research into the 

potentials of blockchain and 

cryptocurrencies while been 

cautious which have seen 

other countries like Nigeria, 

Kenya, Dr Congo, Rwanda, 

Uganda, Burundi, Kenya, 

Ethiopia, Malawi, Botswana, 

Mozambique and Tanzania 

still maintaining a contentious 

stance showing signs that the 

progress on adoption and 

regulation is been monitored. 

Future Energy pushes for oil, gas, 

energy solutions for Africa 

MIKE OCHONMA 

Critical stakeholders 

in the oil, gas 

and power sector 

in Africa are set 

to meet in October in Cape 

Town, South Africa at an Oil 

and Gas Exhibition being 

put together by Future Energy 

Africa. 

The conference tagged 

Africa’s Integrated Oil, Gas 

and Energy Transformation, 

is dedicated to advancing 

future oil, gas and energy 

solutions for the continent. 

With far reaching industry 

collaboration, under the 

patronage of the Department 

of Energy South Africa, 

the event is expected to attract 

leading governments, 

national and international 

oil companies and industry 

experts to provide in-depth 

analysis and an honest reflection 

of Africa’s readiness 

to revolutionize the 

future. The event is slated 

for October 1 through 3, the 

organizers said. 

One of the media partners 

and a speaker at the 

exhibition, Margaret Nongo- 

Okojokwu, who is the editor 

of Orient Energy Review, 

said the exhibition will bring 

together African leaders 

and stakeholders in the energy 

sector with the intention 

of providing cutting edge 

solution to the problems 

confronting the power and 

energy sector in Africa. 

According to her, over 

50 exhibitors, 100 critical 

speakers, including Nigeria’s 

Minister of State for Petroleum, 

Ibe Kwachikwu and 50 

participating countries from 

Africa will be at the exhibition 

with a view to boosting 

bilateral trades among African 

countries. 

“Africa has become the 

most sought after bride with 

many developed countries 

now looking towards Africa 

for investments. At this exhibition, 

Future Energy Africa 

exhibition, provides a platform 

for leading industry figures 

to interact at the highest 

level, privately and securely.” 

Nongo-Okojokwu said. 

She said the conference 

will also provide exhibitors 

and conference participants 

with an indispensable source 

of information, dedicated 

platform for on-site interview. 

In his own submission, 

Mayowa Afe, managing director 

of Danvic Petroleum 

international, said the exhibition 

would provide Nigerian 

energy companies 

the opportunity of promoting 

their companies to the 

outside world as well as the 

Nigerian local content drive. 

He said so many bad 

stories had been projected 

to the outside world about 

Nigeria. The forthcoming 

exhibition, Afe said would 

be an ample opportunity to 

project entrepreneurs from 

Nigeria, especially those in 

the oil and gas sector. 

ASLM to discuss ‘Preventing and Controlling 

the Next Pandemic’ at 2018 conference 

Geared towards empowering 

operators 

and decision makers 

in the health 

sector on new developments 

in preventing and controlling 

pandemic diseases, the 

African Society for Laboratory 

Medicine Conference (ASLM) 

has announced its 2018 Conference. 

ASLM is an independent, 

pan-African professional body 

that coordinates, galvanises 

and mobilises relevant stakeholders 

towards improving access 

to world-class laboratory 

services. The headquarters 

of the body is Addis Ababa, 

Ethiopia, and it serves all African 

countries. It is endorsed 

by the African Union. 

Meanwhile, as the date of 

the 2018 edition of the ASLM 

conference draws near, the 

body has released the list of 

speakers who will address the 

attending delegates. 

The list includes: Trevor 

Peter, senior director of the 

Diagnostic Services at the 

Clinton Health Access Initiative; 

John Nkengasong, director 

of African Centres for Disease 

Control and Prevention; 

Waafa El Sadr, founder and 

director of the International 

Center for AIDS Care and 

Treatment Programs (ICAP) 

and Wendy Stevens of South 

Africa’s National Health Laboratory 

Service. 

The conference chair is 

Alash’le Abimiku, co-founder 

and the executive director of 

the International Research 

Centre of Excellence at the 

Institute of Human Virology 

Nigeria. She is a professor at 

the Institute of Human Virology 

at the University of 

Maryland School of Medicine, 

Baltimore. 

The conference which will 

be held at the Transcorp Hilton 

Hotel, Abuja, Nigeria, from 

December 10 to 13, 2018, and 

also marks the first time the 

conference will be held outside 

Cape Town, South Africa, 

where the first three editions 

were staged. 

The 2018 ASLM conference 

will feature plenary 

sessions on pandemic 

threats, laboratory response 

and partnership synergy. 

The event will also feature 

presentations, poster sessions, 

special sessions and 

symposia. The roundtable 

discussions will focus on 

topics such as leveraging 

and sustaining networks for 

disease response in Africa; 

data intelligence, biological 

specimen repository for 

outbreak response, role of 

National public health institutes 

in pandemic response 

and Africa regional laboratory 

networks. 

Commenting on the speaker 

line-up, Abimiku said: “This 

year’s set of speakers were 

specially chosen because of 

the passion about changing 

the narrative around public 

health laboratories. They are 

experts and professionals who 

have left indelible footprints in 

their various health fields. Participants 

who attend the event 

will be exposed to modern collaborative 

techniques in the 

field of laboratory science.”

18 

BUSINESS DAY 


C002D5556 


Use of drones in the shipping 

sector set to take-off 

Unmanned systems 

are finding a 

growing number 

of applications in 

the maritime sector, 

and have the potential to 

make a significant contribution 

to safety and risk management, 

according to expert article from 

Allianz Global Corporate & 

Specialty. 

This year saw the first successful 

ocean rescue of two 

swimmers in rough seas in 

Australia by drone. A number 

of companies are developing 

drones for sea-based search 

and rescue operations, as well 

as drones that can identify and 

warn swimmers of sharks. But 

drones are also finding some 

interesting commercial applications. 

They are being used by 

class societies and marine 

surveyors to physically examine 

ships and cargo, while loss 

adjusters employ drones to 

assess damage to vessels. Allianz 

has already used drones 

to assess marine claims, as 

Beeta Universal Arts 

Foundation (BUAF), 

in partnership with 

Union Bank of Nigeria 

Plc, has announced the second 

edition of Beeta Playwright 

Competition (BPC), aimed at 

discovering new talents in the 

art play writing. 

The competition is also 

aimed at preserving the Nigerian 

culture, history and heritage 

through raising new playwrights 

adept at conceptualising new, 

dramatic that capture all areas of 

the country’s life, from the grand 

to the absurd. 

Entry for the competition, 

which is open to indigenous 

playwrights between ages 18- 

40, will end on August 31, 2018. 

well as property claims in the 

aftermath of last year’s hurricanes 

and wildfires. 

Operators are also using 

drones to assess the condition 

of assets, such as oil rigs, pipelines 

and offshore turbines, 

reducing the need for risky 

human inspections. In the 

North Sea, fishing vessels carrying 

drones are being used 

to undertake survey work and 

environmental monitoring. 

Drones are likely to find 

many more uses in the maritime 

sector in the years to 

come, some of which could 

help prevent or mitigate losses, 

according to Dierks. 

“Drones make it simpler 

and quicker to examine a ship 

and its cargo, but it is easy to see 

how the technology could be 

used to assess environmental 

pollution damage or observe 

shipping traffic in congested 

transit routes,” says Volker Dierks, 

Head of Marine Hull Underwriting, 

AGCS Central & 

Eastern Europe. 

For example, drones can be 

used to carry out inspections of 

cargo tanks and holds, a risky 

task for crew. Dangerous gases 

are a notable cause of fatalities 

at sea, where enclosed cargo 

holds many contain noxious 

gases. Drones can also be employed 

to carry out inspections 

at height, assess the structural 

integrity of a vessel or to monitor 

the loading of cargo. 

Drones will also have an 

increasing role in spotting 

and avoiding hazards at sea. 

EU NAVFOR’s anti- piracy 

naval mission has deployed 

drones to monitor the coast of 

Somalia and search for pirate 

activity. 

“In the future we will see 

drones used to avoid hazards at 

sea. For example, they could be 

used by ships sailing in Arctic 

and Baltic waters to identify ice 

and show the route ahead,” says 

Dierks. If there is an incident, 

drones could also be used 

to assess damage, helping to 

mitigate losses, avoid loss of life 

or limit any potential environmental 

impact. 

Foundation, Union Bank, others partner 

for talents hunt in art play writing 

IFEOMA OKEKE 

This would be followed by the 

announcement of the top 10 finalists, 

who would participate in 

a writing workshop after which 

the winner would be announced 

at the grand finale. 

Bikiya Graham-Douglas, 

award winning actress and 

producer, conceptualised Beeta 

Playwright Competition (BPC) 

so as to make a difference in unveiling 

and showcasing Nigeria’s 

emerging playwrights for the 

next generation. 

Paul Ugbede’s play, Our Son 

the Minister emerged winner of 

the competition’s first edition. 

Graham-Douglas’ foundation 

published the play and staged 

it to give it flesh and life at Terra 

Kulture Arena. It also toured 

the country. According to 

Ogochukwu Ekezie-Ekaidem, 

Union Bank’s head of Corporate 

Communication and Marketing, 

the bank recognises how invaluable 

arts is to Nigeria’s culture 

and history, hence the commitment 

to developing talents in 

the creative industry through 

partnership with BUAF. 

The competition, which is 

also supported by other partners 

inluding WAPIC Insurance c, 

Terra Kulture, Olajide & Oyewole 

among others will award 

N1 million worth of prize to the 

winner plus a publishing deal 

with Paper Worth Books Limited. 

It culminates in the stage 

production of the winning entry 

by BUAF at Terra Kulture Arena. 

The second edition will have 

Shaibu Husseni, Ego Boyo, Ayo 

Jaiyesimi, Kenneth Uphopho, 

and Ibiso Graham-Douglas 

as the panel of judges for the 

competition. 

Threadsol presents range of innovative 

software solutions into market 

Modestus Anaesoronye 

ThreadSol, a pioneer 

in enterprise material 

management for 

sewn products’ industry 

based in India has disclosed 

plans to present its range of 

innovative software solutions 

for the apparel manufacturers 

into the African market. 

In these times of ascending 

costs and descending profit 

margins, ThreadSol has a crucial 

role to play in the apparel 

industry, especially in Africa 

with the emergence of the 

industry. The company’s presence 

at Origin Africa slated 

to next month establishes its 

commitment to sustaining its 

efforts of introducing innovative 

garment tech solutions for 

the apparel industry. 

“Our presence at Origin Africa 

is a proof of our commitment 

to the apparel industry, especially 

the African apparel industry. 

The solutions we are offering 

at the expo demonstrates that 

we are continuously aiming 

to accomplish our customer’s 

requirements to aid them in 

overcoming the challenges of 

the industry and increase profitability 

by targeting the biggest 

expense in manufacturingfabric”, 

says Anas Shakil, senior 

partner at ThreadSol. 

ThreadSol’s outlook is to 

introduce technologically 

driven products to drive African 

apparel manufacturing by 

boosting topline and bottom 

line for manufacturers and differentiate 

from the extremely 

competitive environment for 

breakthrough profits and improved 

customer service. 

With challenges like high 

electricity prices, limited access 

to finance, infrastructural 

obstacles, challenging logistics, 

and for non-EPZ companies, 

complex regulations, it is extremely 

crucial for apparel 

manufacturers in Kenya. 

Business Event 

L-R: Head of human resources Seven Up Bottling Company Limited (SBC), Yinka Olufade; 7UP 

Harvard Business School MBA scholarship winner, Ulunma Izejiobi; Senior Brand Manager SBC, 

Segun Ogunleye; HR Business Partner SBC, Chinenye Irokwem at the unveiling of Ulunma Izejiobi 

as the winner of 7UP HBS 2018 in Lagos. 

L-R: Dickson Onuoha, representative of director-general, Industrial Training Fund (ITF); Safiya 

Abubakar, head, legal and council affairs unit, ITF, and Zaehs Piwuna, director, research and 

curriculum development of ITF, during the opening ceremony of Industrial Training Fund Library 

Week in Jos. 

NAN 

L-R: Babatunde Akindele, head, commercial banking, Stanbic IBTC; M’Fon Akpan, chief risk officer, 

risk management, Stanbic IBTC; Liu Jun Sheng , commercial consul, Chinese Embassy in Lagos 

; Wole Adeniyi, executive director, operations, Stanbic IBTC ; and Taiwo Ala, head, internal control, 

Stanbic IBTC; at the Stanbic IBTC Africa China forum in Lagos. recently. Pic by Pius Okeosisi 

L-R: Dayanand Sriram, general manager, RB West Africa; Aliza Leferink, Marketing Director, RB 

West Africa; Abiodun Bamgboye, permanent secretary, Lagos State, Ministry of Environment, and 

Helen Paul, Harpic, brand ambassador, during the Harpic/ Ministry of Evironment public toilets 

commissioning in Lagos recently.


C002D5556 

BUSINESS DAY 

19 

In association with 

Investor 

Helping you to build wealth & make wise decisions 

NSE All Share Index Market capitalisation 

NSE Premium Index The NSE-Main Board NSE ASeM Index NSE 30 Index NSE Banking Index NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index NSE Lotus II NSE Ind. Goods Index NSE Pension Index 

Year Open 38,243.19 N13.609 trillion 2,564.13 1,713.69 1,087.32 1,746.68 475.44 139.37 976.10 330.69 2,560.39 1,975.59 1,379.74 

Week open (10 – 08–18) 35,446.47 N12.941 trillion 2,512.59 1,595.24 809.92 1,602.31 455.47 142.96 845.30 300.50 2,422.97 1,694.77 1,336.31 

Week close (17 – 08–18) 35,266.29 N12.941 trillion 2,527.30 1,572.19 809.92 1,589.77 438.14 137.87 835.80 296.07 2,428.66 1,716.66 1,314.12 

Percentage change (WoW) -0.51 

0.59 -1.44 

0.00 

-0.78 -3.80 -3.56 -1.12 -1.47 0.23 

1.29 -1.66 

Percentage change (YTD) -7.78 -1.44 

-8.26 -25.51 -8.98 -7.85 -1.08 -14.37 -10.47 -5.14 -13.11 -4.76 

Stocks trading activity drops on heightened election risks 

HEANYI NWACHUKWU 

Stock trading activity on 

the Lagos Bourse declined 

in the second-quarter 

(Q2) to June 2018 given 

underlying investor apathy 

that remains in the market. 

In the second-quarter of 2018, 

the average daily value traded across 

all products on the Nigerian Stock 

Exchange increased by 46.82percent 

to N5.99 billion, from N4.08 billion 

in the corresponding second 

quarter of 2017; while the number 

of transactions recorded during the 

quarter decreased marginally by 

2.93percent. 

Analysts said global risk off 

sentiments which resulted from 

uncertainty in the global financial 

markets as well as that of the Nigeria’s 

2019 elections caused a decrease 

in stocks trading activity from the 

previous quarter. 

Currently, momentum is 

building as the 2019 general 

elections approach. Following a 

wave of political defection from 

the ruling All Progressive Congress 

(APC) to the major opposition, the 

People’s Democratic Party (PDP), 

the later party seems encouraged to 

potentially cause an upset in 2019. 

Short-term investors on Custom 

Street, Lagos have remained bearish. 

The stock market loss is about 

7.78percent in 2018 as shown in the 

trading week to August 17; which 

represents a clear deviation from 

gain of 37percent in 2017. 

“Looking back at the first-half 

of 2018, we observe that though 

macro factors have aligned with our 

base case expectations, dynamics 

in the global space is changing due 

to heightened trade tensions and 

aggressive policy stance by the US 

Fed. Also, political risk in the local 

economy is on the rise ahead of 

the 2019 election,” said Kayode 

Tinuoye-led team of analysts at 

United Capital in their August 2, 2018 

note to investors where they revised 

their base case return projection to 

4.6percent. 

“Hence, the interplay of rising 

geopolitical uncertainties and 

improving macro fundamentals is 

ticking our projection away from the 

base in favour of the bear case”, the 

analysts said. They also maintained 

their bearish case scenario at a 

negative of 8.5percent, “on the 

assumption that uncertainties 

surrounding the build-up to the 2019 

election and dynamics in the global 

space, may be overwhelming.” 

“Stock market will maintain 

its bearish sentiments. Portfolio 

investment inflow into the equity 

market will stall. Investors will favour 

debt capital market (DCM) over 

equity capital market (ECM), driven 

by political uncertainty. Market 

capitalisation will remain above 

the N13trillion mark. Corporate 

earnings will improve but not enough 

to change investors fatigue”, said 

Bismarck J. Rewane, Managing 

Director /Chief Executive Officer, 

Financial Derivatives Company 

Limited said in his August 2 

presentation at LBS Executive 

Breakfast Meeting themed “July - a 

month of defections, depletion and 

deflection”. 

BusinessDay look at the NSE 

Fact Sheet shows the total volume of 

stocks traded in (Q2) at 23.05billion, 

which represents 52-week decline 

of 5.71percent; while average daily 

transactions (Q2) at 4,382.52 implied 

a decline of 2.93percent. 

The value of transactions across 

all products on the Lagos Bourse 

totaled N359.33 billion in Q2 of 2018, 

which represents an increase of 

49.31percent from Q2 2017, although 

declining from the previous quarter’s 

total of N439.78 billion. 

Despite the improving 

macroeconomic sentiments 

currently playing out in Nigeria, 

CardinalStone research analysts 

expect activities in the equities 

market to remain lethargic for the 

most of this second half (H2) 2018, 

“largely due to a spillover from 

the current widespread bearish 

sentiments being experienced across 

emerging and frontier markets, and 

partly due to investors’ jitters on the 

back of upcoming 2019 presidential 

elections.” 

“The Nigerian equities market 

pared its gains from early 2018, 

reeling from profit-taking and 

interest rate hikes in the US. Recent 

developments in the political space 

bespeak uncertainty and this has 

cast a shadow on the overall mood 

in the equities market,” according 

to Omonegho Imoagene-led team 

of research analysts at Lagos-based 

CardinalStone. 

While CardinalStone analysts 

noted that the implementation of 

the recently introduced Pension 

Fund Administration (PFA) Multi- 

Fund structure offers a potential 

bright spot, they do not think the 

impact will be significant to buoy 

year-end market performance, “given 

heightened political uncertainty”. 

The average daily volume traded 

also declined by 7.29percent to 

384.10 million units in Q2 2018, from 

414.29million units in Q2 2017; at the 

end of Q2 2018, the average PE ratio 

of The Exchange’s listed equities 

stood at 21.83 compared to 21.07 in 

the previous year. 

“The equity markets across the 

globe recorded mixed performances 

in the month of June. The signal of 

possible trade wars between the US 

and China might have had a negative 

impact on the global equity markets”, 

FSDH research analysts said in their 

July economic and financial markets 

Outlook. 

Market activities weakened for 

the fifth consecutive month in June 

2018, despite the gradual pick up 

in equity market which analysts 

at FSDH Research said resulted 

from bargain hunting investors who 

took advantage of lower prices and 

strategically positioned in the market 

expecting further stability in the 

economic environment. 

The Nigerian equity market 

turnover velocity also increased 

by 1.96 percentage points to 

10.35percent, from 8.39percent in 

Q2 2017. The dividend yield for the 

52-week period ending June 30, 

2018 was 4.53percent, compared to 

5.11percent for the previous year. 

Total transactions at the nation’s 

bourse reduced by 41percent from 

N318.27 billion recorded in May 

2018 to N187.78billion in June 

2018. The cumulative transactions 

from January to June increased by 

70.78percent from N935.26 billion 

recorded in 2017 to N1.597 trillion 

in 2018, according to NSE data 

on domestic and foreign portfolio 

participation in equity trading for 

June 2018. 

Foreign investors continued to 

outperform domestic investors by 

9.07percent recorded in June 2018. 

The total domestic transactions 

reduced by 31.87percent from 

N125.32 billion in May to N85.37 

billion in June 2018. 

Foreign transactions also reduced 

by 46.92percent from N192.95 billion 

to N102.41 billion within the same 

period. There was a 22.71percent 

decrease in foreign inflows from 

N62.06 billion in May 2018 to N47.96 

billion in June 2018. However, there 

was also a significant reduction in 

foreign outflows which reduced by 

58.40percent from N130.89 billion 

to N54.45billion within the same 

period.


Investor 



United Capital investment views 

Market bears hold on to the baton 

The Nigerian bourse 

extended the prior week’s 

bearish momentum amid 

a lack of bullish triggers. Thus, 

the NSE-ASI ended 4 of the 5 

trading days of the week in red 

territory as year-to-date (YtD) 

return touched 9.3percent as 

at Thursday before closing the 

week at 7.8percent. Despite the 

last gasp rebound recorded on 

the last trading day, the NSE-ASI 

fell by 0.5percent week-on-week 

(w/w) to 35,266.3 points while 

market capitalization shrank to 

N12.9trillion as investors lost 

a further N66.3billion. Activity 

levels improved as average 

volume and value traded were up 

23.9percent w/w and 50.5percent 

w/w to 229.3mn units and 

N2.5billion respectively. 

Sectoral performance was 

overly bearish as 4 the 5 sectors 

we track, declined w/w. The 

Industrial Goods (+1.3percent) 

Index was the week’s lone 

gainer, consequent on increased 

buying interest for DANGCEM 

(+2.8percent) in the later part of 

the week. 

On the other hand, the 

Financial Services (-7.4percent); 

Bank (-3.8percent) and Insurance 

(-3.6percent) Indices, bore 

the brunt of the sell-off during 

the week, owing to w/w losses 

recorded by UBA (-11.6percent), 

ACCESS (-4percent), ZENITH 

(-3.2percent), GUARANTY 

(-2.6percent), AIICO 

(-4.2percent) and NEM 

(-3.4percent). Similarly, selloff 

in OANDO (-11.7percent) 

and NESTLE (-3.9percent) 

dragged both the Oil & Gas 

(-1.5percent) and Consumer 

Goods (-1.1percent) Indices 

lower w/w. 

Investors’ sentiment was 

underwhelming as market 

breadth closed the week at 

0.3x (previously 0.4x); 13 stocks 

advanced while 45 declined w/w. 

This week, we expect the market 

to remain largely downbeat due 

to a continued absence of bullish 

triggers. Also, we expect investors 

to take profit during early trades 

ahead of the holiday. 

Money Market: Rates hover 

around single-digit on CBN’s 

passiveness 

Compared to the preceding 

week, there was a slight 

squeeze in system liquidity 

as rates averaged 9.7percent 

(Previous week: 8.3percent) on 

the backdrop of bills funded by 

authorized dealers at the weekly 

wholesale FX sales interventions. 

Elsewhere, the CBN allowed a net 

repayment of N286.5bn OMO 

bills - selling only N153.5billion 

of OMO bills against N440.0bn 

maturities. Consequently, this 

trajectory braced liquidity levels. 

The CBN set out to sell a 

total of N450.0bn at the OMO 

auction across two maturities, 

nonetheless, demand was 

extremely underwhelming at 

0.3x. The 91- & 203-day bills on 

offer were closed out at stop rates 

of 11.05percent and 12.15percent 

respectively. Looking into the 

new week, a sizeable maturity 

to the tune of N364.3billion is 

expected to hit the system and we 

do not expect any aggressiveness 

from the CBN in curbing any 

excesses, given that OMO rates 

have remained stable at an 

average of 11.6percent since 

May-18. Consequently, rates 

are expected to hover close to 

prevailing levels - barring any 

other significant liquidity event. 

Yields: Offshore risk-off 

sentiment pushes bond yields 

to a YTD high of 14.6percent 

In the T-Bills market, the 

bearish theme of the week was 

guided by sell-off by offshore 

clients, as well as liquidity 

sentiments following the week’s 

liquidity straining activities; 

OMO auction, Bond auction, 

NTB auction and provisioning for 

CBN’s retail FX auction by banks. 

Consequently, average T-bill 

yield inched higher by 30bps w/w 

to close the week at 12.8percent. 

(91-day (up 6bps to 11.6percent), 

182-day (up 26bps to 13.3percent) 

and the 364-day (up 58bps to 

13.4percent). Elsewhere, the apex 

bank conducted its bi-monthly 

Nigerian Treasury Bill (NTB) 

auction, wherein it successfully 

re-financed N33.4bn. 

Demand was modest 

with a bid-to-cover ratio of 

1.5x compared to 1.3x in the 

previous auction. Notably, 

the 364-day tenor was mostly 

demanded (with a bid-cover of 

1.8x compared to 1.0x at the 91- 

day and 182-day tenors apiece). 

The auction was carried out 

at the following stop rates: 91- 

day (10percent vs. 10percent 

sentiments from foreign players 

(considering Turkey’s turmoil, 

a stronger dollar and policy 

normalization in advanced 

economies) to weigh on 

sentiments in the fixed income 

market. Though, we may still see 

pockets of demand given that 

yields are relatively attractive. 

Foreign Exchange: 

Movement across FX windows 

remain muted 

In the Foreign exchange 

market, the naira continued 

to experience stability as 

movements across FX windows 

remained soft. The parallel 

market saw modest naira 

appreciation by 14bps to settle 

at N358.5/$1, while the Interbank 

and Investors & Exporter’s FX 

windows saw naira depreciation 

by 3bps and 14bps respectively 

to finish at N306.1/$1 and 

N362.5/$1. Looking ahead, the 

outlook of the naira is expected 

to remain tied to the spate of 

CBN’s intervention in the spot 

and forward market, as well as 

the better price discovery in the 

I & E FX window. 

Global Market Review and 

Outlook 

Trade worries impact global 

stocks 

RSA fund price of PFAs as at August 3, 2018 

S/N PFAs CURRENT PRICE 

1 CrusaderSterling Pensions 3.9820 

2 Premium Pensions 3.9805 

3 ARM Pension Mgrs. 3.9034 

4 Stanbic-IBTC Pensions 3.7542 

5 Legacy PFA 3.6384 

6 NLPC PFA 3.4638 

7 PAL Pensions 3.4618 

8 First Guarantee Pension 3.3070 

9 Trustfund Pensions 3.2793 

10 SigmaVaughn Pensions 3.1244 

11 AIICO Pension Managers 3.0571 

12 Leadway Pensure PFA 3.0502 

13 APT Pensions 2.7911 

14 Fidelity Pensions 2.7460 

15 AXA Mansard 2.7331 

16 Veritas Glanvlls Pensions 2.6680 

17 OAK Pensions 2.5785 

18 Investment One Pension Mgrs. 2.4792 

19 IEI Anchor Pension Managers 2.3461 

20 Radix Pension 2.0434 

21 NPF Pensions 1.4670 

at the last auction), 182-day 

(10.4percent vs. 10.4percent at 

the last auction) and 364-day 

(11.2percent versus 11.3percent 

at the last auction). 

The general risk-off sentiment 

for Emerging Market assets that 

was spurred by Turkey’s turmoil 

saw further off-shore sell-off 

in the Nigerian bond market. 

As such, average bond yield 

edged higher by 46bps to end at 

a YTD high of 14.6percent. Also, 

the Debt Management Office 

(DMO) conducted its monthly 

auction of FGN bonds for August. 

The monetary authority 

initially set out to raise a total of 

N90billion but was only able to 

successfully fill 44.1percent of its 

offer due to an underwhelming 

demand and an unwillingness 

of the monetary authority to 

take up aggressive bids. Thus, 

the auction was carried out at 

the following marginal rates: 

5-year (14.39percent versus 

13.69percent at the last auction), 

7-year (14.60percent versus 

14percent at the last auction) 

and 10-year (14.69percent versus 

14.30percent at the last auction) – 

Notably, this represents the fifth 

consecutive monthly increase in 

stop rates at the bond auction. 

Looking forward, we expect 

the play of political tensions in 

the local market and risk-off 

In the week that ended 17th 

of August 2018, three themes 

shaped the global financial 

market. First, worries of the 

financial and currency turmoil 

in Turkey. Second, the renewed 

trade talks between the U.S. 

and China, and finally, strong 

earnings reports. These factors 

all took turns in driving daily 

market moves. 

In light of the aforementioned, 

major US equity benchmarks 

ended the week mixed as 

continued worries about Turkey 

weighed, while varying degrees 

of the news of U.S. and China’s 

trade talks provided succour 

for equities. The Dow Jones 

Industrial Avg. and S&P 500 

Indexes were up 1.4percent 

and 0.6percent w/w while 

the NASDAQ Composite 

Index trended southwards by 

0.3percent w/w. 

In Europe, the major equity 

benchmarks we track were 

largely bearish amid concerns 

about the health of Italian banks, 

Turkey’s currency crisis, and the 

uncertainty about global trade 

policies. Overall, Germany’s 

DAX (-1.7percent) UK’s FTSE 

(-1.4percent), France’s CAC 

(-1.3percent), and the Pan 

European STOXX (-1.2percent) 

all ended the week in the red 

territory. 

Investor’s Square 

•Have you been shabbily treated by your registrar, 

stockbroke r or other capital market operators? 

Let us know and investor will help you investigate and 

report back. 

E-mail: iheanyi.nwachukwu@businessdayonline.com 

Analysts’ views on 

Customs Street this week 

After posting ten 

straight negative 

closes lately, 

the Nigerian 

stock market 

is still not looking good to 

produce positive stories this 

week, according to analysts’ 

views complied by Iheanyi 

Nwachukwu. 

This week, United Capital 

Plc analysts expect the 

market to remain largely 

downbeat due to a continued 

absence of bullish triggers. 

Also, we expect investors 

to take profit during early 

trades ahead of the holiday. 

Despite the Dangote 

Cement-driven recovery 

witnessed at week closed 

August 17, 2018, Vetiva 

Capital analysts still foresee 

a return to negative territory 

by this week “given that 

underlying investor apathy 

remains in the market.” They 

had expected milder losses 

at the start of the week. 

In line with Vetiva 

outlook this week, Custom 

Street traded lower by 

1.71percent on Monday 

August 20, 2018 as declined 

stocks outnumbered 

advancers. The Lagos Bourse 

performance has been 

largely driven by brewing 

The Nigerian 

Stock Exchange 

(NSE) has 

admitted a total 

volume of 7,000,000 

units of 16.54percent 

N7billion Senior 

Secured Series 1 Bond 

issued by C&I Leasing 

political risk coupled with 

some underwhelming firsthalf 

(H1) 2018 earnings 

released lately. 

GTI Research analysts’ 

expectation for equities 

this trading week is mixed. 

“We encourage investors 

to trade cautiously in the 

short to medium term, amid 

continued profit-taking 

resulting from political 

uncertainty. However, we 

believe that buying stocks 

with strong fundamentals 

at the current lows prices 

holds better potentials in 

the medium-to-long-term,” 

according to GTI Research. 

Access Bank economic 

intelligence team expects the 

bearish performance seen 

last week to be sustained 

“as investors continue to 

take profit following some 

less-than-stellar corporate 

scorecards releases.” 

Cordros Capital research 

said their outlook for equities 

in the near-to-medium term 

remains conservative, “in 

the absence of a near term 

one-off positive catalyst; 

and more so, amidst brewing 

political concerns. However, 

stable macroeconomic 

fundamentals remain 

supportive of recovery in 

the long term.” 

NSE lists C&I Leasing, UPDC bonds 

…delists Paints and Coatings Manufacturers from Daily Official List 

Plc. The bond was 

admitted to trade at 

the Exchange on Friday 

August 17, 2018. 

Also, a total volume 

of 4,355,000 units of 

16percent UPD APR 

2023 bond issued 

by UACN Property 

Development Company 

Plc were admitted to 

trade at the Exchange 

on Tuesday August 14, 


In another 

development, the entire 

issued share capital of 

Paints and Coatings 

Manufacturers Nigeria 

Plc was delisted from 

the Daily Official List 

of the Nigerian Stock 

Exchange. 

The delisting of 

Paints and Coatings 

Manufacturers Nigeria 

Plc was in compliance 

with the company’s 

request for voluntary 

delisting and the 

subsequent approval 

of the Exchange which 

became effective August 

17, 2018.


C002D5556 

BUSINESS DAY 

21 

Investor 


Stanbic IBTC sees key risks to H2 results outlook 

…but another earnings beat in H1 prompts Vetiva ‘Hold’ rating 

IHEANYI NWACHUKWU 

For Stanbic IBTC 

Holdings Plc, its key 

areas of focus in this 

second-half (H2) of 

2018 remain: cost 

efficiency, improving risk asset 

quality, loan growth, growing 

low-cost deposits, new product 

development and client service. 

The holding company financial 

institution says key risks to 

its results outlook in this H2 

period are: low deposit growth, 

declining yield on government 

securities, and political 

environment. 

The financial institution 

disclosed all these in its halfyear 

results presentation. 

Recently, Stanbic IBTC 

Holdings Plc published its firsthalf 

(H1) results for the period 

ended June 30, 2018. The results 

at the Nigerian Stock Exchange 

(NSE) show the group’s gross 

earnings increased by 17.5 

percent to N114.2 billion 

against N97.19billion recorded 

in the corresponding H1 period 

of 2017. 

Stanbic IBTC Holdings Plc 

has nine direct subsidiaries, 

namely: Stanbic IBTC Bank 

PLC, Stanbic IBTC Pension 

Managers Limited, Stanbic 

IBTC Asset Management 

Limited, Stanbic IBTC 

Capital Limited, Stanbic IBTC 

Investments Limited, Stanbic 

IBTC Stockbrokers Limited, 

Stanbic IBTC Ventures Limited, 

Stanbic IBTC Insurance Brokers 

Limited and Stanbic IBTC 

Trustees Limited and two 

indirect subsidiaries, namely: 

Stanbic IBTC Bureau De 

Change Limited, Stanbic IBTC 

Nominees Limited. 

On Nigeria’s economic 

and political environment, the 

company expects that in H2’18 

Nigeria will witness continuous 

economic growth, stable oil 

production levels, steady 

rise in oil price, and peaceful 

electioneering process. 

Stanbic IBTC Holdings Plc 

also foresees headline inflation 

moderating around 11percent, 

stable political environment, 

and continuous accretion 

to external reserves. On the 

banking industry, it expects: no 

change in Monetary Policy Rate 

(MPR) except there is pressure 

on exchange rate; interest rates 

to remain around 11percent– 

13percent.; and stable foreign 

exchange (FX) rate. 

In H1’18, its Profit Before Tax 

(PBT) increased by 73.9percent 

for the period ended June 

30, 2018 to N50.73billion 

against N29.16billion in 

H1’17. The company’s profit 

after tax (PAT) increased by 

78.7percent to N43.08billion 

against N24.11billion in H1’17. 

Earnings Per Share (EPS) in the 

first half of 2018 increased by 

80.9percent to 416kobo against 

230kobo in the corresponding 

first half of 2017. Total assets 

in June 2018 stood at N1.37 

trillion as against N1.39 trillion 

in December 2017. 

The stock of Stanbic IBTC 

Holdings Plc made the top 

gainers table at the close 

trading on Monday August 20, 

2018, from N50.05 to N50.3, 

implying an increase of 25kobo 

or 0.50percent. At the Lagos 

Bourse, Stanbic IBTC Holdings 

is valued at N508.717billion 

with shares outstanding of 

10,113,674,444 units. 

Stanbic IBTC Holdings is 

a member of Standard Bank 

Group. Its equity ownership 

structure shows Stanbic Africa 

Holdings (64.03percent); First 

Century International Limited 

(7.39percent); and Other 

shareholders (28.58percent). 

Board proposes 

N10.113billion as interim 

dividend 

The Board also declared 

an Interim Dividend of N1 

per ordinary share of 50 

kobo each, which amounts 

to N10.113billion, subject 

to deduction of appropriate 

withholding tax and regulatory 

approval. The interim dividend 

translates to 2percent interim 

dividend yield. The interim 

dividend will be paid to 

shareholders of the financial 

institution whose names appear 

in the Register of Members 

as at the close of business on 

Tuesday 28 August 2018. The 

Register of shareholders will be 

closed from Wednesday August 

29, 2018 to Tuesday September 

4, 2018. The Dividend 

Payment date in respect of 

this Interim Dividend shall be 

on Wednesday September 26, 


In line with the authority 

granted by shareholders to 

the Board of Directors Stanbic 

IBTC Holdings Plc at the Extra 

Ordinary General Meeting held 

on August 6, 2015, the Board has 

authorised that shareholders 

will have the option of electing to 

receive their Interim Dividends 

by way of New Ordinary 

Shares (Scrip Dividend). In 

view of this, and in order to 

allow ample opportunity for 

shareholders who may wish to 

exercise the option of receiving 

Scrip Dividend instead of 

Cash Dividend, the Dividend 

Payment date in respect of 

this Interim Dividend shall be 

on Wednesday September 26, 


On the above payment 

date, shareholders who have 

not elected to receive their 

Interim Dividend by way of 

Scrip Dividend, will have 

their Cash Interim Dividend 

paid electronically (provided 

that they have completed the 

e-dividend registration and 

mandated the Registrar to pay 

their dividends directly into 

their Bank accounts), or have 

dividend warrants dispatched 

to them (for those without 

e-dividend mandates). This 

Interim Dividend (whether 

cash or scrip) is only applicable 

to shareholders whose names 

appear on the Register of 

Members as at close of business 

on Tuesday 28 August 2018. 

Analysts view 

“Stanbic released its H1’18 

results, posting strong yearon-year 

(y/y) performance 

following another impressive 

quarter. Although the run rate 

recorded in Q2’18 marginally 

lagged performance from the 

earlier quarter, H1’18 earnings 

still came in largely ahead of our 

estimate as PAT rose 79percent 

y/y to N43.1 billion – better 

than our N36.9 billion estimate. 

Notably, Gross Earnings came 

in flat quarter-on-quarter (q/q) 

at N57 billion as a modest 

3percent q/q rise in Interest 

Income offset a 6percent 

moderation in Non-Interest 

Income. We highlight that this 

trend deviates from the trend 

we have observed across other 

banks in Q2’18”, said Olalekan 

Olabode’s team of analysts at 

Vetiva Capital Management 

Limited. 

Vetiva wants investors to 

‘Hold’ Stanbic IBTC Holdings 

Plc shares noting that they 

consider it correctly valued 

with little upside or downside, 

but that the potential return 

between +5 and +14.99percent 

is expected to be realised 

between current price and 

analysts’ target price. The 

analysts target price (TP) for 

the stock is N50.07. 

“We have revised our 

estimates to reflect the 

miss across key line items. 

Particularly, we note that 

quarterly earnings run rate 

moderated marginally in Q2’18 

following a much lower loan 

write back within the period 

vs. Q1’18. Following the strong 

growth observed in Q2’18, 

we revise our loan growth 

forecast for FY’18 to 10percent 

(Previous: 0percent). Hence, 

our Interest Income estimate 

is largely unchanged at N130 

billion despite the H1’18 miss. 

Similarly, our Non-Interest 

Income is maintained at N108.4 

billion – in line with H1’18 run 

rate. However, we cut our loan 

loss provision to a mild N1.3 

billion – a relatively cautious 

stance given the N5.5 billion 

write back so far in H1’18”, the 

analysts added. 

“With Operating Expense 

also left relatively unchanged 

at N97.7 billion, we raise our 

PAT estimate to N79.2 billion 

(Previous: N73.7 billion), 

translating to an EPS of N7.88. 

With average industry leading 

RoE and RoA of 36.2percent 

and 5.6percent respectively, 

STANBIC trades at FY’18 

P/B: 2.1x and P/E: 6.3x vs. our 

coverage banks’ average P/B: 

0.7x and P/E: 3.8x. Overall, we 

raise our Target Price (TP) to 

N50.07 (Previous: N42.38)”, 

Vetiva Capital analysts further 

noted in their August 17 equity 

research. 

Management speaks 

“The operating environment 

in the first half of the year was 

characterized by rising oil 

prices, stable oil production 

level leading to accretion to 

the country’s external reserves, 

improved foreign exchange 

liquidity with attendant 

interventions from the Central 

Bank of Nigeria and moderating 

inflation amid declining yields 

on money market securities,” 

said Yinka Sanni, Chief 

Executive Officer, Stanbic IBTC 

Holdings Plc. 

He further stated, “Stanbic 

IBTC continued to deliver 

stellar performance over the 

course of the first half of the 

year. Profit before tax grew to 

N50.73 billion representing 

a 74 percent growth from 

prior year on the back of noninterest 

revenue growth and 

recoveries from delinquent 

assets previously impaired. 

Our credit impairment line has 

a write back of N5.5 billion as 

at June 2018 as we continue 

to intensify recovery efforts on 

previously classified loans. 

“Interest income increased 

by 6percent to N59.9billion, 

predominantly driven by loan 

growth. This was offset by 

increase in interest expense 

of 26 percent as a result of 

interest paid on maturing term 

deposits and other borrowings. 

We are making good progress 

on our drive to reduce cost of 

funds which has reduced by 

more than 100 basis points, 

manifesting in a 15 percent 

reduction in interest cost 

between Q1 2018 and Q2 2018,” 

Sanni said. 

He noted that, “We have 

seen significant growth in 

transaction volumes across our 

digital platforms. The volume 

of transactions via our mobile 

banking, SME internet banking, 

USSD platforms and ATMs 

have increased by over 100 

percent each year-on-year as 

we continued to drive noninterest 

income growth. Also, 

we kicked off the initial stage of 

implementing a virtual banking 

proposition. 

Our Africa-China Banking 

Center was recently launched 

and it aims to provide bespoke 

solutions and address the needs 

of business communities in 

both Nigeria and China while 

leveraging our relationship 

with Standard Bank and the 

Industrial & Commercial Bank 

of China (“ICBC”).” 

Sanni said the group 

remains focused on driving 

long-term value for its clients 

and shareholders through 

its balanced and diversified 

business model, while thanking 

the various stakeholders 

– customers, employees 

and regulators – for their 

contributions and support 

towards the achievement of 

these strong results. 

The Group maintained 

capital adequacy levels that 

are significantly above the 

regulatory limit of 10 percent. 

The group’s total capital 

adequacy ratio for the period 

closed at 27.4 percent (Bank: 

23.0 percent) and Tier 1 capital 

adequacy ratio of 23.3 percent 

(Bank: 18.5 percent). The 

improvement in group capital 

adequacy ratio to 27.4 percent 

from 23.5 percent in December 

2017 was as a result of the 

significant increase in retained 

profit. “We remain wellpositioned 

to meet expected 

future capital requirements and 

growth”, Sanni stated.

22 

BUSINESS DAY C002D5556 Thursday 23 August 2018 

Luxury Malls Companies Deals Spending Trends 

US retail sector shows signs of strength 

... as home depot stages a stellar earnings rebound 

Summary 

• Home Depot (HD) 

topped analysts’ earnings 

and revenues expectations 

in the second quarter 

of 2018, indicating solid 

strength for the housing 

and retail sectors. 

• Strategists at MKM 

Partners observed SPDR 

S&P Retail ETF (XRT) recently 

broke out from a 

bullish Cup and Handle 

pattern and set a new high 

in front of earnings. 

• Upward revisions to 

retail sales figures in May 

signaled renewed life in 

consumer spending in the 

second quarter after lackluster 

activity in Q1’18. 

Home Depot (HD) 

topped analysts’ earnings 

and revenues expectations 

in the second quarter 

of 2018, indicating solid 

strength for the housing 

and retail sectors. 

HD posted US$30.5bn 

in sales in Q2’18, up 8.4% 

year-on-year, with net earnings 

of US$3.5bn, or US$3.05 

per share, outpacing the 

same year-ago quarter by 

US$800m, or an EPS rise of 

roughly 35.6%. 

Analysts had generally 

said poor weather, erratic 

housing data and consumer 

spending patterns likely 

led to the giant home improvement 

retailer’s miss 

on the sales front in the 

first quarter, while others 

think the company’s target 

may have simply been too 

aggressive. 

On the back of the 

financial upswing, and 

based on its year-to-date 

performance, HD updated 

its fiscal 2018 sales growth 

guidance. The firm now 

expects sales will be up 

around 7%, including the 

53rd week, with comp sales 

growth of about 5.3% for 

the comparable 52-week 

period. 

The company also raised 

its diluted EPS growth guidance 

for the year, now expecting 

an uptick of around 

29.2% from fiscal 2017 to 

US$9.42, including US$6bn 

of share repurchases for the 

current fiscal year. 

While HD’s stock had 

risen about 2% in early 

morning trading Tuesday, 

it was down about 0.2% by 

late afternoon. 

However, its bonds generally 

continued to tighten, 

with an aggregate OAS of 

around 2bps tighter on the 

day to 71bps. 

The spread on HD’s 2.8% 

September 2027s last narrowed 

by roughly 2bps to 

63bps more than matchedmaturity 

U.S. government 

bonds, while its 4.4% March 

2045s were about 3bps tighter 

at an OAS of 110bps, according 

to Bloomberg. 

Culled from Bloomberg 

Global retail update 

The annual reports 

keep rolling in and 

several key Australian 

retailers, including 

Woolworths have reason 

to rejoice. Schools are back in 

session in America, and the 

must have item this year is 

not the latest iPhone or tablet, 

but a bullet-proof backpack. 

A lot of retailers reported 

their most recent results, 

some with strong performances 

such as Walmart others 

with worrying forecasts 

like J.C.Penney. But this issue 

is not only about financial 

announcements. Check out 

the latest developments in 

the delivery sector and what 

Amazon is up to. 

Below are the updates. 

Sound developments in 

United States Amazon seems 

to have lost its dominance in 

the smart speaker market, 

with Google out-selling the 

Seattle-based powerhouse by 

1.3 million units. Meanwhile, 

rivals Amazon and Microsoft 

have set up a relationship between 

their respective voice 

assistants to expand the reach 

of each service. 

Sneak peek German 

discounter Aldi is set to renew 

one fifth of its product range 

in the US in 2019, placing 

more emphasis on fresh produce. 

The redesigned market 

in St. Charles, Illinois, shows 

how Aldi stores will look in 

the future. Click here for pictures 

(captions in German). 

Price hike Kimberly- 

Clark is set to raise the prices 

of most products due to a 

significant jump in commodity 

costs. Trade tensions with 

Canada and an escalating 

trade war with China are also 

of concern. The Texas-based 

personal care company will 

increase prices of Kleenex, 

Huggies and co by ‘mid-tohigh 

single digits’. 

Strange but true Bulletproof 

backpacks are trending 

big-time in the US, with one 

manufacturer claiming a 

sales increase of up to 300%. 

Major retailers including 

Walmart and Office Depot 

are selling the defensive bags 

which are designed to protect 

again certain guns. 

Depths of debt in Europe 

Details surrounding House 

of Fraser’s immense debts 

have been made public with 

luxury fashion majors Ralph 

Lauren and Kurt Geiger topping 

the list as being owed 

GBP 9.4 million and GBP 4.8 

million respectively. Meanwhile, 

the beleaguered British 

retailer has cancelled all 

its online orders. 

Progressive policies 

Swedish retailer ICA has 

unveiled new technology 

to empower customers to 

lower their carbon footprint. 

Over in Britain, supermarket 

operator Asda is removing 

plastic wrapping on swedes 

sold in its stores as part of 

its ‘Plastic unwrapped’ programme. 

Pleasing profits in Asia, 

Australasia Australian retail 

major Woolworths has 

reported an annual revenue 

increase of 13% largely due to 

growing sales from its supermarket 

arm. Also celebrating 

forecast-beating results are 

Australia’s Treasury Wine, 

whose net profit rose 34%, 

and online retailer Kogan, 

whose revenue nearly quadrupled 

from last year. 

Thinking ahead 

Walmart is asking its suppliers 

of beauty products to 

source items from outside 

of China as a measure to 

off-set the effects of the next 

proposed round of tariffs. 

Meanwhile, in India, the 

retail giant has launched 

a unified payments interface 

which allows registered 

members to make secure 

online transfers without 

revealing bank account details. 

Chasing consumers 

Cash-rich Chinese millenials 

are the targets of global 

luxury brands such as Prada, 

who are expanding into 

smaller and less developed 

cities to pursue the group. 

The age-group makes up 

around 30 per cent of the 

sector’s China sales. 

New pot-ential The marijuana 

business is blazing 

in the United States and is 

fuelling a whole new range 

of job opportunities from 

‘budtenders’, to flavour scientists 

and edibles chefs. 

Meanwhile, with beer sales 

on the decline Corona’s parent 

company Constellation 

Brands, have invested 

a whopping USD 4 billion in 

a Canadian cannabis producer. 

Mediated atmosphere 

Bye bye workplace stress! 

Researchers at MIT media 

lab are working to make this 

fantasy a reality with trials 

of a specialised desk that 

adapts lighting, screen images 

and sound to improve 

the well-being and productivity 

of staff. See the video 

of how it works here. 

In fighting shape in US, 

Mexico Watch out Amazon 

- Walmart posted its best 

quarterly results in a decade. 

Its e-commerce business 

delivered a whopping 40 % 

gain in sales. Upscale retailer 

Nordstrom also beat the es- 

timates with a solid growth 

in Q2, while department 

store operator J.C. Penney reported 

disappointing results. 

Overall, US retail sales rose 

more than expected in July. 

Moving into movies 

While arch-rival Walmart is 

humming along with impressive 

results, Amazon is gearing 

up to make more moves 

into the brick-and-mortar 

world. The unstoppable online 

giant is reportedly in the 

run to acquire Landmark 

Theaters, which claims to be 

America’s largest chain of art 

house movies. 

Delivery developments 

Supermarket operator 

Kroger has started testing 

driverless grocery delivery 

with technology partner 

Nuro in Arizona. After raising 

USD 250 million in a funding 

round, San Franciscobased 

meal delivery service 

Doordash, backed by Japan’s 

Softbank, is now valued at 

USD 4 billion. 

Focus on fuel Walmex, 

the Mexican unit of Walmart, 

is set to open gas stations 

alongside its domestic stores, 

joining other private companies 

that are now competing 

with Pemex, the country’s 

former monopoly fuel seller. 

It will start with six sites, installed 

in shopping centres 

or parking lots of its stores. 

Adding businesses in 

Europe Always on the lookout 

to expand into lucrative 

sectors, online powerhouse 

Amazon is working on plans 

to launch an insurance price 

comparison website in Britain. 

The move would be a 

major foray into the region’s 

financial services. Three industry 

executives are reportedly 

involved in talks. 

Ups and downs British 

multinational home improvement 

retailer Kingfisher’s 

B&Q and Screwfix 

divisions experienced a good 

“sales recovery” for the quarter, 

while German consumer 

goods firm Henkel lowered 

its forecast for 2018 after falling 

exchange rates dented its 

Q2 results. 

Redundancies talks Jobs 

are at risk at Debenhams as 

rumours about a possible 

takeover continue to circle. 

The embattled department 

store’s redundancy talks are 

expected to result in around 

90 staff losing their jobs 

across its fashion and home 

departments, stripping out 

layers of management. 

Going public in Asia 

Parenting platform Babytree, 

backed by e-commerce giant 

Alibaba, plans to raise up 

to USD 1 billion in a Hong 

Kong initial public offering 

in October. The company 

claims to be China’s largest 

maternity and child-focused 

online community and had 

139 million monthly users 

last year. 

Slowing down Chinese 

e-commerce major JD.com 

posted a loss due to increased 

spending and said it could 

affect profit forecasts. The 

disappointing result comes 

a day after top shareholder 

Tencent reported its first 

profit drop in 13 years amid 

rising competition in China’s 

online market.


C002D5556 

BUSINESS DAY 

23 

TJ Maxx owner’s sales soar on 

new customers looking for deals 

...Retailer has success in attracting younger shoppers to stores 

...Consumers are staying loyal to company’s chains, analyst says 

TJX Cos., with its 

treasure-hunt 

shopping experience 

and discount 

prices, is 

proving as popular as ever 

with consumers -- even if 

rising incomes mean they 

don’t need a deal. 

Comparable sales at 

the company, which owns 

the Marshalls and TJ Maxx 

chains, rose 6 percent in 

the second quarter, three 

times more than analysts’ 

estimates. That sent the stock 

up the most in almost six 

months on Tuesday. 

There’s evidence that 

consumers are staying loyal 

to TJX-owned retailers 

even as their incomes rise, 

according to Neil Saunders, 

managing director of 

GlobalData Retail. With the 

U.S. economy growing and 

unemployment low, investors 

are keying in to see 

which retailers are taking 

advantage of the favorable 

environment. 

“Our data show no erosion 

of shoppers migrating 

elsewhere as their economic 

circumstances improve,” 

Saunders said in an 

email. “Indeed, if anything, 

the boost to consumer incomes 

over the first half of 

the year has encouraged 

existing shoppers to visit 

more often and spend more 

per visit, especially on apparel.” 

TJX’s success stands in 

stark contrast with other retailers, 

which have suffered 

from shoppers’ migration 

to e-commerce and away 

from the shopping mall. TJX, 

which hasn’t posted a drop 

in comparable-store sales 

since 2009, has been able to 

lure consumers to its stores 

with a discount model that’s 

proving to be resilient. 

Shares of the company, 

based in Framingham, 

Massachusetts, had already 

risen 33 percent this year 

through Monday’s close and 

have been trading at alltime 

highs. The stock gained 

as much as 5.5 percent to 

$107.26 on Tuesday. 

TJX joins Nordstrom as 

one of the second quarter’s 

retail winners, while Kohl’s 

Corp., Macy’s Inc. and J.C. 

Penney Co. saw shares decline 

after earnings. 

The company raised its 

full-year guidance. It now 

expects adjusted earnings 

per share in the range of $4.10 

to $4.14, up from a previous 

forecast of as much as $4.10 

a share. 

“We have been attracting 

new customers to all 

our divisions, a significant 

share of whom are younger 

customers,” Chief Executive 

Officer Ernie Herrman said 

in a statement. 

The company’s Marmaxx 

division, which includes TJ 

Maxx and Marshalls, was the 

standout, with comparablestore 

sales growing 7 percent, 

compared to the estimate of 

2.1 percent. Revenue of $9.3 

billion was higher than the $9 

billion projected by analysts. 

An Amazon tax won’t stop 

Britain’s retail carnage 

The carnage on the 

British high street 

from the likes of 

House of Fraser and 

Homebase naturally leads to 

calls for blood from internet 

retailing behemoth Amazon.com 

Inc. Enter Chancellor 

of the Exchequer Philip 

Hammond, who said he 

was strongly considering an 

“Amazon tax” to help retailers. 

Conservative Scottish 

lawmaker Ruth Davidson lent 

her support. 

It’s a bad idea. 

For a start, let’s just get one 

thing straight. Amazon didn’t 

kill the British high street. 

The U.K. store chains that 

have collapsed this year did 

so because they didn’t have 

the right products at the right 

prices, invest enough in their 

businesses, or stay up to date 

with consumer trends. Associated 

British Foods’ Primark 

faces exactly the same 

pressures as everyone else, 

and doesn’t even sell via the 

internet. But it has prospered. 

High Street Hell 

The crisis engulfing British 

retail has taken a heavy toll. 

True, the retail landscape 

is being reshaped by the 

continued growth of online 

shopping. And the tax system 

needs to be adjusted accordingly. 

There must be some 

leveling between bricks-andmortar 

stores, which are both 

property- and people-heavy, 

and online-only merchants, 

which are less so. 

As things stand, retailers 

pay a disproportionate share 

of business rates, effectively 

a tax on property. While store 

chains account for about 5 

percent of the economy, they 

pay nearly a quarter of this tax, 

according to the British Retail 

Consortium, an industry lobby 

group. 

Staying In 

British retail sales have 

cooled as pay growth stalls and 

Brexit approaches 

Hammond’s idea, which is 

short on details, is superficially 

appealing. After all, Amazon’s 

U.K. tax bill fell about 40 percent 

last year, and it paid just 

4.6 million pounds ($5.6 million) 

on 2 billion pounds of 

sales. Asos Plc, a British onlineonly 

clothing retailer with a 

similar level of revenue, paid 

15.9 million pounds. 

Complaints about how 

such a big company as Amazon 

can pay such a low amount 

of tax in the U.K. have been 

around for a while. This focus 

on the high street is a different 

issue. What’s more, an internet 

shopping tax could well end up 

hurting the very bricks-andmortar 

retailers the government 

wants to help. 

More than 17 percent of 

sales were made online in 

2017, according to the British 

Retail Consortium. Over half 

of those were with retailers 

that also have shops. So companies 

such as Next Plc, which 

has sizable online and offline 

businesses, face a double tax 

whammy. 

Britain’s online retail sales 

have grown steadily over the 

past decade. 

Consumers are in a fragile 

state. Anemic wage growth 

means their purchasing power 

is patchy. 

Culled from Bloomberg 

Living under poverty line 

How Nigerians are struggling to survive 

If you want to contact the writer of this story call: +234(0) 803 889 1567, +234(0) 

8155184838 chinwe.agbeze@businessdayonline.com 

Cancer patient needs help to pay medical bills 

Name: Patricia Ebenuwa 

State of Origin: Delta 

Age: 38 

Dependents: Parents and 

siblings 

Occupation: Trader 

After trying to get a job 

with my University degree 

without success, I started 

dealing in female clothing 

and accessories. With the 

proceeds from the business, 

I took care of my aged parents 

and siblings. But I quit 

trading when I took ill and 

all the money I had went on 

medical bills. 

What was the nature of 

the illness? 

I was diagnosed of cancer 

of the breast in June 

2017. I completed my chemotherapy 

in January, 2018 

and had a mastectomy (surgery 

to remove the breast) in 

April, 2018. My doctor said 

I need at least two sessions 

of chemotherapy before I 

could proceed to Abuja for 

radiotherapy, but I am still 

trying to raise money for 

both the chemotherapy and 

radiotherapy. 

What is the cost implication? 

I need N188,000 for chemotherapy, 

and radiotherapy 

costs N600,000. I have to 

travel to National hospital 

in Abuja because that’s only 

hospital that has a functional 

radiotherapy machine in the 

country. I still have to worry 

about transport fare and 

where to stay for a month 

while receiving radiotherapy. 

How have you coped 

so far? 

It has not been easy. 

When I exhausted all my 

savings, I had to rely on my 

poor family for financial 

aid. My family has incurred 

over N800,000 debt since I 

commenced treatment last 

year, and they can borrow 

no more because no one is 

willing to lend. 

What’s your greatest 

challenge? 

I spent all I have, and 

had to go borrowing for 

more to enable me pay for 

my medical bills. My family 

and I are currently in debt, 

but the treatment is not 

yet over. I was told to commence 

chemotherapy after 

which I have to go to Abuja 

for radiotherapy. All these 

cost the money that I, my 

aged parents and siblings 

don’t have. I am appealing 

to kind-hearted Nigerians to 

assist me get this treatment 

so I could return to business 

and be able to take care of 

my family. 

Analysts: Chinwe Agbeze, Stephen Onyekwelu, David Ibemere, Graphics: Fifen Famous

Innovation Apps Fin-Tech Start-up Gadgets Ecommerce IOTs Broadband Infrastructure Bank IT Security 

24 BUSINESS DAY C002D5556 Thursday 23 August 2018 

Nigerian tech scene’s missing link 

is not funding but academia 

Stories by FRANK ELEANYA 

Last week, while 

Nigerian politicians 

indulged 

in their usual 

smearing games, 

far away in California five 

female teenage students 

were putting Nigeria on the 

global technology map with 

their innovation. 

Promise Nnalue, Jessica 

Osita, Nwabuaku Ossai, 

Adaeze Onuigbo and Vivian 

Okoye who made up 

the team known as Save 

A Soul, emerged winners 

of the $10,000 Junior Gold 

Awards at the 2018 Technovation 

World Challenge. 

Their winning innovation 

was an application called 

FD Detector built to combat 

one of Nigeria’s age-long 

problems – fake drugs. 

According to PricewaterhouseCoopers 

(PwC), about 

17 per cent of drugs circulating 

in Nigeria are counterfeits. 

The team, while pitching 

their idea, said Nigeria 

had the largest market for 

fake drugs. On the African 

continent, at least 100,000 

deaths annually are as a 

result of fake drugs. Hence, 

by inventing the FD Detector 

app, the five students from 

Anambra State, Nigeria, 

have provided a solution 

that will not only go a long 

way to address the problem 

in Nigeria, but also on the 

entire continent. 

As remarkable as defeating 

teams from the United 

States, Spain, Turkey, Uzbekistan 

and China could 

be, FD Detector’s most notable 

feat should be found in 

showcasing what is possible 

when technology and academia 

is properly aligned. It 

is a testament that Nigeria’s 

tech revolution needs the 

critical input from academia 

to mature. 

To be sure, the tech scene 

in Nigeria has come a long, 

mostly driven by young entrepreneurial 

Nigerians with 

little or no government support. 

They have faced up the 

harsh realities of Nigeria’s 

business environment, a few 

have survived, most died, 

and many new fresh ideas 

have replaced them. 

While it may look like a 

battle of the fittest, the reality 

is that majority of tech 

startups in Nigeria are so 

deficient in the very true 

definition of the word “fittest”. 

Without electricity, 

funding, internet penetration, 

effective regulation and 

other basic infrastructures, 

the possibilities of survival 

is very thin. Tech businesses 

have also closed some significant 

funding from both 

local and foreign investors. 

But the funds are yet to 

translate to the expected 

boom of the segment on the 

country’s GDP. 

For many years, Nigeria’s 

education system has 

mostly played the outsider 

in the growth of technology 

businesses in the country. 

Yet, without the education 

system actively participating 

in the areas of research and 

development (R&D) and 

talent provision the growth 

recorded so far will merely 

be on the surface. 

Silicon Valley which has 

become a poster child for 

most Nigerian tech hubs has 

benefited immensely from 

integrating academia within 

its ecosystem. Schools 

such as Stanford University, 

Massachusetts Institute of 

Technology (MIT), Harvard 

and several other institutions 

are well entrenched in 

providing not only research, 

but also talents, funding and 

innovations. 

“As a rule, universities 

are built to serve a mission 

greater than any individual 

or short term gain,” Temitope 

Osunrinde, a Nigeria 

tech expert wrote in a 

recent article published 

on BusinessDay. “Their 

stock-in-trade is the sheer 

adventure of ideas. What 

make universities uniquely 

essential, to the innovation 

ecosystem are the things 

that make them different 

from businesses and 

governments; universities 

are built for collaboration, 

for learning and discovery, 

and for unlocking the 

imagination.” 

Unfortunately for the 

Nigerian school system, 

while Promise Nnalue, Jessica 

Osita, Nwabuaku Ossai, 

Adaeze Onuigbo and Vivian 

Okoye may be secondary 

students, the glory for 

their feat goes to the Edufun 

Technik STEM Centre 

which was responsible for 

the mentoring and grooming 

of the winners. 

“Well done to Uchenna 

Onwuamaegbu-Ugwu, the 

founder of Edufun Technik 

STEM Centre,” Professor 

Yemi Osinbajo, Nigeria’s 

Vice President said in his 

congratulatory message 

posted on Twitter. “I understand 

that she and her 

company were responsible 

for mentoring the young 

ladies. Great job!” 

Recently, Nigerian institutions, 

University of Port 

Harcourt, University of Benin, 

Akwa Ibom State University, 

University of Africa, 

University of Uyo, University 

of Calabar and Niger Delta 

University signed an agreement 

with the University of 

Bradford to be incorporated 

into the World Technology 

Universities Network 

(WTUN). The objective 

was to deepen the development 

of technology in their 

schools. 

While the ambition for 

the membership of WTUN, 

a global network of technology 

universities committed 

to undertaking cutting-edge, 

challenge-led research may 

be forward looking, seeking 

collaboration with tech 

businesses in Nigeria could 

help accelerate growth and 

seal their place on the globe 

without having to pander to 

any institutions. 

An integration of academia 

would also boost the 

confidence of investors in 

technology startups which 

could result in big ticket 

funding. Winning should 

not be a once-in-a-while 

thing, with the help of academia, 

the tech scene has 

the potential to make it more 

consistent. 

Y Combinator’s email mistake hands 15,000 tech startups lifeline 

Global accelerator, 

Y Combinator 

(YC) has handed 

automatic selection 

to 15,000 tech startups 

after it mistakenly sent acceptance 

emails to many 

applicants who it previously 

did not have a place for. The 

company also incurs $150 

million equity-free grants to 

the selected startups. 

The Startup School is a 

free, ten weeks online course 

designed by Y Combinator 

to help startup founders 

navigate the earliest, most 

difficult challenges. The 

2018 edition is the first time 

participating startups will be 

giving $10,000 in equity-free 

funding. Usually, the final 

selection process comes 

down to 100 of the most 

promising companies which 

will receive the $10,000. 

Last year, 38 of the startups 

were accepted to the core Y 

Combinator program and 

received YC funding. 

“As most of you already 

know we screwed up and 

sent acceptances to companies 

that were not actually 

accepted to Startup 

School,” a Y Combinator 

team wrote in a statement 

on the company’s website. 

“We’ve decided to use this 

error as an opportunity to try 

something new: we’re going 

to let in every company that 

applied to Startup School.” 

The announcement 

leaves the combinatory with 

something knotty issues 

such as assigning its limited 

number of advisors to the 

15,000 startups. In addition 

to having full access to all 

lectures and class hours, 

participating startups are 

assigned an advisor who is 

usually a member of the YC 

alumni network. The advisory 

process also takes place 

online, in the form of Group 

Office Hours, every week via 

online video. 

“We have limited advisors,” 

YC admitted on Twitter, 

“But YC partners and 

staff will be on the forum to 

help out the community in 

any way we can.” 

Here is a few excerpt of 

the YC statement: 

As a Startup School 

founder, you will get access 

to all the course materials, 

the private community forum 

(advisors and YC partners 

will also participate), 

and you’ll be able to use the 

company update feature so 

that you’ll also be eligible 

for one of the hundred $10k 

equity-free grants. 

The most important thing 

is that you will have a group 

of fellow founders to connect 

with so you can support 

one another. Unfortunately, 

we’re still constrained by 

number of advisors who 

volunteered to lead each 

group, which means your 

group won’t have an advisor. 

But having peers in a batch 

is what founders tell us is 

truly special about YC. We’re 

going to give you instructions 

on how to organize 

the group yourself and get 

nearly the same experience. 

We’re excited about this 

new plan and look forward 

to having you in Startup 

School. We’ll send more 

information soon. 

Several Nigerian companies 

have been accepted 

in the core Y Combinator 

program. These includes 

Paystack, Aella Credit, Flutterwave, 

Kudi.ai, Releaf, 

Buypower, Helium Health, 

Kangpe and Tizeti. CowryWise, 

a Nigerian fintech 

company was recently selected 

in YC’s three month 

program. 

Team: Frank Eleanya, frank.eleanya@businessdayonline.com; Caleb Ojewale, caleb.ojewale@businessdayonline.com

Thursday 23 August 2018 C002D5556 

BUSINESS DAY 25 

BDLegalBusiness 

Business Law Industry Report Practice Intelligence Partnerships 

INSIDE 

The president-elect of the Nba and his agenda 

Overview of the bilateral currency 

swap agreement: Analysing 

implications and 

opportunities 

26 

Lawpavilion unveils Nigeria’s first 

artificial intelligence legal assistant 

27 

NBA president visits Zamfara 

to discuss insecurity and 

banditry 

28 

NBA-AGC 2018; Mailafia, 

Teriba, Akabueze 

to speak on economic 

reforms at SBL session 

28 

Following his emergence 

as winner of the keenly 

contested election for the 

office of the president of the 

Nigerian Bar Association 

(NBA) Paul Usoro, SAN, is set to take 

his place as the 29th president of the 

association come next week. 

Usoro, who won with a total number 

of 4509 votes, was ahead of this 

closest opponent, Arthur obi Okafor, 

SAN with 86 votes. Okafor had 4423 

while the other Presidential candidate 

in the contest, Professor Ernest 

Ojukwu, SAN trailed behind with 

3313 votes. 

ABOUT THE PRESIDENT- 

ELECT 

The President-elect of the NBA, is the 

Senior Partner and founder of Paul 

Usoro & Co (PUC), a top commercial 

law firm. Usoro is described as the goto-counsel 

for complex matters, be it 

litigation or commercial transactions 

and the foremost communications 

lawyer in Nigeria with over 30 years’ 

experience in legal practice. 

He is was a member of the NBA 

Legal Profession Regulation Review 

Committee set up in 2016 and 

the founding chairman of the Communication 

Committee of the Nigerian 

Bar Association`s Section on 

Business Law. Paul is a consummate 

boardroom player and sits on the 

Boards of several top companies. 

• ADVOCACY EXPERIENCE 

Paul’s skills and prowess as a litigator 

and strategist are nationally and internationally 

acknowledged. The rank of 

Senior Advocate of Nigeria (SAN) is 

in recognition of his advocacy skills. 

Paul’s litigation practice (election petitions, 

real property, criminal matters, 

oil and gas, commercial litigation) 

cuts across all the superior courts in 

Nigeria with a vibrant appellate experience. 

A passionate and intellectual 

advocate - multinational companies, 

Nigerian blue-chip companies, political 

parties/election candidates and 

high net worth individuals routinely 

seek Paul’s litigation support and 

experience. 

He was pivotal to the recovery of 

N16billion for Access Bank Plc., in a 

highly controversial multijurisdictional 

dispute against a Nigerian company. 

The dispute involved multiple complex 

cases: 8 (eight) within Nigeria and a 

few others spanning over a number 

of jurisdictions including, the United 

Kingdom, Greece, Netherland and 

South Africa. He played the leading role 

Paul Usoro SAN, incoming President of the NBA 

in the negotiation of a global settlement 

agreement between the parties. 

Paul was also the strategist and 

coordinating anchor for the defence of 

Akwa Ibom State in the Supreme Court 

oil well matters between Akwa Ibom 

State on the one hand and Rivers and 

Cross River States respectively on the 

other hand. These cases were determined 

in 2011 and the outcome thereof 

was Akwa Ibom State’s retention of 

most of its oil wells that were the bone 

of contention in the suits. 

Paul represented the immediate 

past Group Managing Director of Access 

Bank, Aigboje Aig-Imoukhuede 

and the current Group Managing Director 

of Access Bank, Herbert Wigwe 

in a Suit against the Financial Reporting 

Council of Nigeria (FRCN). The 

Suit challenged the statutory powers of 

FRCN to investigate issues of mergers 

and acquisitions and other business 

combinations and in particular the 

acquisition of Intercontinental Bank 

Plc (IBPLC) by Access Bank Plc. The 

Court granted all the reliefs claimed 

and perpetually restrained FRCN from 

investigating the acquisition of IBPLC 

by Access Bank Plc which was declared 

a closed transaction. 

He also represented the Governor 

of Akwa Ibom State, Governor Udom 

Gabriel Emmanuel and his political 

party in about 35 pre-election lawsuits 

from 2015, particularly at the 

Governorship and National Assembly 

levels. All the cases were successfully 

defended by Paul and his Team. Not 

a single one of those matters was lost 

at any of the Courts. Paul was the anchor, 

strategist and coordinator for the 

defense of Governor Udom Emmanuel 

in the 2015 Election Petition right from 

the Tribunal and up to the Supreme 

Court. The victory at the Supreme 

Court indeed vindicated the strategy 

designed by Paul and his Team. 

The president-elect also championed 

the amicable resolution of the 

dispute between Stanbic IBTC Bank, 

Financial Reporting Council of Nigeria 

FRCN and the National Office for 

Technology Acquisition and Promotion 

(NOTAP). 

He played a crucial and leading role 

in the team that represented a Francebased 

multinational oil servicing company 

in a landmark litigation against a 

Nigerian company for the recovery of 

judgment sums of US$11,628,962.11; 

US$5, 214,939.98; DM212, 252,751.11; 

N26, 349,753.61 and US$7,157,865.87. 

The judgment delivered by the Court 

of Appeal in the second quarter of 2015 

has become alocus classicus in Nigerian 

jurisprudence on the principles of 

subrogation of one party for another for 

purposes of realizing a judgment debt. 

It is significant to note that Paul was not 

involved in the proceedings at the High 

Court of Lagos State which gave rise to 

Saraki, others, congratulate President-elect of the NBA 

Theodora Kio-Lawson 

In another development, embattled 

senate president, Bukola 

Saraki on Tuesday congratulated 

the incoming president 

of the NBA, Paul Usoro, SAN on his 

victory at the NBA elections. 

Saraki in the spirit of Eid celebrations 

put his political troubles 

aside to rejoice with the Presidentelect 

of the the NBA, as he took to 

his twitter handle to congratulate 

him. 

He said, “Congratulations 

@PaulUsoroSAN, on your election 

as the President of the Nigerian 

Bar Association (NBA). I wish you 

a successful tenure as you work 

to promote and protect human 

rights, the rule of law, and good 

governance in Nigeria — through 

the NBA.” 

Several such accolades and 

wishes have continued to pour in 

since Usoro emerged victorious 

in the keenly contested election 

for the office of the President of 

the NBA. 

In another message, Delta 

State Governor, Dr Ifeanyi Okowa 

urged him to ensure that lawyers 

continue to support efforts geared 

towards speedy administration of 

the criminal justice system in the 

country. 

His words: “On behalf of the 

government and people of Delta 

State, I congratulate Mr. Paul 

Usoro, SAN on his election as 

President of the Nigeria Bar Association. 

“Usoro’s emergence is thoroughly 

deserving and an inspiration 

to young lawyers who look 

up to him for mentorship in their 

quest to make a name in the legal 

profession.” 

this appeal. Indeed, he was engaged for 

a rescue mission after the appeal had 

been lodged against the subrogation 

orders and had to re-engineer the entire 

strategy of the case for a successful 

outcome. It is a tribute to his skill that 

the subrogation orders earlier made 

against the French Company were 

completely overturned and it was 

found not to be liable howsoever for 

the judgment debts. 

Indeed, Usoro’s advocacy experience 

is very robust and diverse. 


PAUL USORO’s AGENDA: 

As it relates to Good Governance, 

the NBA under my leadership shall: 

1) Recognise the need to build a 

credible and effective electoral system. 

To this end, the NBA will work 

hard and advocate for the reform of 

all the institutions that consolidate 

democracy, with a view to ensuring 

compliance with the principles of rule 

of law by all the actors. 

2) Develop and execute voter 

education programme with a view to 

educating and enlightening legible 

voters on their role in the 2019 elections. 

The NBA shall in doing this not 

lend itself to becoming an appendage 

of any political party. 

3) Develop and execute electionmonitoring 

programme. This programme 

would be used by the NBA 

to monitor the 2019 elections using 

NBA Election Working Group. 

4) To monitor election Tribunals 

as part of a project to be developed 

and called NBA Electoral Justice 

Project. This is a project that would 

be designed to monitor and observe 

the activities of various elections 

petitions tribunals, identify the challenges 

they are facing and advocate 

for solutions to such challenges as 

may be identified. 

5) Monitor the 2019 general elections 

with a view to ensuring that the 

conduct of the elections and participation 

thereat comply with the principles 

of rule of law and due process. 

6) Develop programmes and 

projects relating to Child Justice Administration 

especially as it relates to 

adoption and implementation of Child 

Rights Act at the State level; and 

7) Advocate for the strengthening 

of the legal and institutional framework 

for Anti-Corruption Crusade and 

also the entrenchment of international 

best practices in the detection and 

investigation of corrupt practices and 

financial crimes. 

Okowa continued, “It is on 

record that the Nigerian Communication 

Act and many other 

regulations governing the telecoms 

industry in Nigeria owe 

their existence to Mr. Paul Usoro. 

As a top telecom lawyer and IT 

savvy lawyer, it is our hope that 

the ‘Prince of Telecom’ as he is 

fondly called will bring to bear 

information technology in the 

legal practice in Nigeria.”

26 

BUSINESS DAY C002D5556 Thursday 23 August 2018 

legal insight 


Overview of the bilateral currency 

swap agreement: Analysing 

implications and opportunities 

Etido David 

The historic signing 

of the Bilateral Currency 

Swap Agreement 

(BCSA), with 

the People Republic 

of China has generated a lot of 

publicity and rightly so, given 

the radical yet significant impact 

of the swap arrangement on the 

Nigerian economy. The signing 

ceremony marked the culmination 

of two years of negotiation 

between the two countries, 

which commenced during the 

official state visit of the Nigerian 

President Muhammadu Buhari 

to the People’s Republic of China 

in April 2016. 

Nigeria’s vulnerability to external 

shocks and issues with maintenance 

of its external reserves as a 

result of over dependence on oil, 

Nigeria largest foreign exchange 

(FX) earner is welled researched 

and documented. Faced with a 

need to create an alternative to 

her over-dependence on the Petrodollar, 

the BCSA allows for direct 

currency exchange between 

traders and investors in Nigeria 

and China thereby utilizing the 

liquidity of the swap deal. 

The question then is, what is the 

BCSA about? How does it work? 

What are the potential implications 

and opportunities, if any, 

for individuals and corporate 

citizens? 

A Bilateral Currency Swap Agreement 

involves a process where 

two countries make available to 

each other, its liquid currency to 

facilitate the election of either 

currency to denominate aspects 

of their mutual trade on a direct 

exchange backed by their respective 

national currencies, rather 

than a third-party intermediary 

currency. 

Overview of the Bilateral Currency 

Swap Agreement 

According to data made available 

by the National Bureau of 

Statistics, China is the 3rd largest 

trading partner with Nigeria 

after India and United States of 

America. The figures show that 

trade in goods between Nigeria 

and China was at a record high 

of circa N2.0tn in 2017, with total 

import from China valued at 

N1.8trn, while total Export from 

Nigeria was valued at N220bn 

giving a trade deficit of about 

NI.6trn. 

With the increasing volume 

of trade between Nigeria and 

China, the tripartite arrangement 

where Nigerian businesses 

involved in the importation of 

finished products or raw materials 

from China had to first convert 

their Naira currency into the 

United State Dollars (USD), and 

then into the Chinese Renminbi 

for payment to their Chinese 

business counterparts was unsustainable, 

as the practice piled 

huge pressure on the Nigeria’s 

foreign reserve. 

The BCSA entered into by the Nigerian 

Government and the People’s 

Bank of China is a 3 (three) 

year agreement for the exchange 

of a maximum amount of 15 Billion 

Chinese Renminbi for 720 

Billion Nigerian Naira. Consequently, 

Nigerian manufacturers, 

small and medium-sized 

enterprises and import dependent 

Nigerian businesses can now 

import products, raw materials, 

and parts from the People Republic 

of China and pay directly 

with the Renminbi obtained 

from an authorized dealer under 

the currency exchange deal. 

Conversely, Chinese manufacturers 

and investors seeking to 

buy raw materials from or invest 

in Nigeria, may obtain Naira or 

Naira denominated loans from 

Chinese banks to pay for their 

imports or investments. 

Understanding the BCSA Architecture 

The mechanics of the BCSA were 

given life by the recently released 

CBN Regulation On Transactions 

With Authorised Dealers 

In Renminbi (the “Regulation”). 

The CBN via the Regulation has 

announced that it would be 

conducting bidding for the Renminbi 

bi-weekly, and access to 

the Renminbi offering would be 

through authorized dealers who 

are required to utilize the funds 

within 72 hours from the value 

date, failing which such funds 

must be returned to the CBN for 

repurchase at the Bank’s buying 

rate. The Regulation further 

provides for modes of payment 

to be limited to Letters of Credit 

transactions and Bills for Collection 

transactions. 

Interestingly, the 41 items noted 

in the June 2015 circular of the 

CBN are not valid to access the 

Renminbi at the official FX market, 

thus this points to the retention 

of status quo on this issue. 

Potential Implications of 

Swap Arrangement 

Based on our analysis of the 

BCSA and the Regulation, we 

outline below the potential effect 

of the Renminbi accessibility. 

a) Renminbi Liquidity for Nigerian 

Businesses 

One of the immediate impact 

of the BCSA is the liquidity of 

Chinese Renminbi for Nigerian 

Businesses. Businesses which 

had previously issued invoices 

to their customers in Dollars 

can transit to the issuance of 

Renminbi or Naira denominated 

invoice as the businesses will 

now have access to the liquidity 

of each currency to settle bills 

and invoices directly. 

Etido David is with the law firm, 

Jackson, Etti & Edu. 

To be continued next week 

The President-elect of the Nba and his agenda 

Continued from page 25 

• TRANSACTIONAL EXPERI- 

ENCE 

Apart from earning his stripes as a 

seasoned and exceptionally skilled 

advocate, Paul is an experienced 

transaction lawyer whose records 

and accomplishments include 

the world-acclaimed, first-ever 

and all-round successful Nigerian 

Digital Mobile Spectrum Auction 

conducted in 2000. The transaction 

earned the Federal Government 

of Nigeria US$855,000,000.00 for 

3 Digital Mobile Licences. Paul is 

indeed generally acknowledged as 

Nigeria’s leading communications 

lawyer. 

As an ICT law expert, Paul has 

been involved in virtually all major 

transactions and regulatory reforms 

in the Nigerian communications 

sector. In 2003, Paul Usoro drafted 

the Nigerian Communications Act 

2003, a robust and enduring piece 

of legislation that regulates the 

communications industry till date. 

He has been the primary adviser 

to the Nigerian Communications 

Commission (NCC) in most of 

its reform initiatives till date. He 

served as Legal Consultant to NCC, 

and was the only African and the 

sole Legal practitioner in the sixmember 

Auction Control Team 

for the Global Systems of Mobile 

Communications (GSM) Spectrum 

Licence Auction that introduced 

Econet Wireless Networks Limited 

(now Airtel), MTN Communications 

Limited and NITEL GSM to 

the Nigerian market. 

Additional core ICT regulatory 

and transaction experiences 

are highlighted hereunder: He 

Drafted the Nigerian Communications 

(Enforcement Processes 

etc.) Regulations, 2005; Drafted 

the Annual Operating Levy Regulations, 

2014; Acted as sole legal 

consultant to the NCC in respect of 

the Mobile Number Portability and 

drafted the Mobile Number Portability 

Regulations, 2014 as part of 

that assignment; Preparation, on 

behalf of NCC, of a National Carrier 

Licence and an International 

Gateway Licences for NITEL, a hitherto 

unlicensed monopoly; Acted 

as lead legal consultants to NCC 

for the Second National Operator 

licensing processes, including the 

auction and preparation of the 3 

SNO licences; the process produced 

Globacom Limited as Nigeria’s 

Second National Carrier; Preparation 

of the Interconnectivity Agreement 

between NITEL and licensed 

private network operators; Represented 

NITEL in the negotiation of 

the Construction and Management 

Agreement for the laying of the SAT- 

3/SAFE/WASC trans-continental 

fibre-optic cable project which 

spans the sub-Saharan African 

Continent and extends to Far East 

Asia through Southern Africa, with 

European landing points. This was 

the first trans-continental cable project 

in sub-Saharan Africa. 

On account of Paul’s acknowledged 

eminence as Nigeria’s leading 

Communications Lawyer, Akwa 

Ibom State Government appointed 

and relied on him to manage its 

portfolio investment in Airtel in 

2001. Paul negotiated this investment, 

valued as at the date of entry 

at the sum of US$75,000,000.00. Up 

to May 2006, Paul sat on the Board 

of Airtel as a Director representing 

Akwa Ibom State. Akwa Ibom State 

Government cashed out most of 

its investments in this enterprise in 

2006, in the transaction by which 

Celtel BV successfully invested over 

US$1,000,000,000, by way of share 

purchase from existing shareholders 

and injected fresh capital into 

Airtel (“Celtel Transaction”), which 

transaction was chiefly negotiated 

by Paul. The State indeed made 

multiple returns on its investment 

amount. 

A founding Secretary General, 

Telecommunications Law Association, 

Usoro was named ‘Best 

Pan African Telecoms Lawyer of 

All Times’ by the IT and Telecom 

Digest, Nigeria’s leading and one of 

Africa’s foremost ICT magazines. 

• BOARDROOM EXPERIENCE 

Paul is a consummate boardroom 

person whose deep analytical mind 

and illustrious leadership skills are 

well appreciated in all the Boards he 

sits. He has, at various times, served 

on the Boards of several companies 

such as Premium Pensions Ltd, 

CR Services (Credit Bureau) Plc 

(representing Zenith Bank Plc), 

Nigerian Bulk Electricity Trading 

Plc and currently sits on the Boards 

of PZ Cussons Plc., Airtel Networks 

Limited, Marina Securities Ltd and 

Access Bank Plc. 

Usoro is a pioneer director of Airtel 

Nigeria Limited, Nigeria’s leading 

mobile telephone company, having 

been appointed to the Company’s 

Board in 2001, then known as 

Econet Wireless Networks Limited; 

the company has over the years 

undergone major ownership and 

structural changes prior to being 

acquired by Bharti Airtel of India 

in 2010. Paul is the only surviving 

pioneer director of the company 

and has headed the Board’s Audit 

Committee since the entry of Bharti 

Airtel till date. 

A director of Access Bank Plc, 

one of Nigeria’s leading banks, 

from 2014, Paul chairs the Board’s 

Remuneration Committee and 

Governance & Nomination Committee. 

He also serves as a member 

of the Board’s Audit Committee, 

Risk Management Committee 

and Credit & Finance Committee. 

Paul was appointed as a director of 

PZ Cussons in 2011; he chairs the 

People & Governance Committee 

of the Board. 

• PUBLIC SERVICE 

The erstwhile President of Nigeria, 

Dr. Goodluck Jonathan, GCFR, in 

2011, appointed Paul a pioneer 

director on the board of Nigerian 

Bulk Electricity Trading Plc (NBET) 

– Nigeria’s sole power trading organization, 

fully-owned by the 

Federal Government of Nigeria. 

The NBET Board was, at that time 

chaired by the then Nigeria’s Minister 

of Finance and the Coordinating 

Minister of the Economy, Dr. Ngozi 

Okonjo-Iweala, with the Minister of 

Power as a member. Paul was also 

the pioneer Chairman of the NBET 

Board’s Audit Committee. 

In 2012, Paul was appointed by 

the Minister of Communications 

Technology into a select Ministerial 

Committee for the review of Nigeria’s 

ICT Policy and he played a key role in 

that Committee’s work, which final 

work product was approved by the 

Federal Executive Council. 

Usoro is also on the Faculty of 

the Nigerian Institute of Advanced 

Legal Studies as an astute trainer 

on telecommunications law and 

practice. 

NBA Activities 

Paul was the pioneer Chairman of 

the Communications Committee 

of the NBA Section of Business Law 

(“SBL”). Supported by Paul, PUC is 

actively involved in the sponsorship 

of SBL activities. The Firm 

produced the Chairman of the SBL 

between 2010 and 2011, with the 

total support of Paul Usoro, SAN. 

• PAPERS AND SCHOLARLY 

WORKS 

AA Telecommunications Law and 

Regulations”. Paper presented at 

the Legal Advisers/Law Officers 

Course organized by the Nigerian 

Institute of Advanced Legal 

Studies. 

• Drafting Commercial Agreements 

and Banking Documents: 

Telecommunications Contracts”. 

Paper presented annually from 

2003 to Course participants at 

Nigerian Institute of Advanced 

Legal Studies, Lagos Campus. 

• Frontloading under Akwa 

Ibom State High Court (Civil 

Procedure) Rules 2009”. Lead 

Presentation at Joint Workshop 

by the 3 Nigerian Bar Association 

Branches (Uyo, Ikot Ekpene and 

Eket) in Akwa Ibom State. 

• Legal Practice and the Prospects 

of Litigation in Nigeria”. Lead 

Paper presented at a Session of 

the Nigerian Bar Association’s 

Section of Legal Practice Maiden 

Conference in Abuja. 

• Licensing Procedures under 

Communications Act 2003”. Paper 

presented at the Nigerian Bar 

Association, Port Harcourt Branch 

Bar Seminar/Law Week in Port 

Harcourt. 

• Emerging Nigerian Communications 

Industry and the Role 

of Lawyers”. Paper presented 

at the 2004 Annual Conference 

of the Nigerian Bar Association 

held in Abuja. 

• Creating an Enabling Legal 

Environment for Information 

Technology. Presented at NITDA 

organized “E-Nigeria” Workshop 

in Abuja. 

• Nigerian Issues on Interconnectivity 

Arrangements. 

Presented at the International 

Conference on Electronic Commerce 

and Telecommunications 

in Lagos. 

• Commentary on Paper presented 

by Chief E A O Idowu 

titled “Bills of Lading: Practical 

Implications – Today and Tomorrow”. 

Commentary made at 6th 

Annual Maritime Seminar for 

Judges in Abuja. 

• Legal Significance of and Issues 

on Electronic Bill of Lading. 

Presented at the Annual Maritime 

Seminar for Judges in Abuja. 

• Legal Framework for Introduction 

of E-Commerce. Presented 

at US Embassy organized 

CTO Week in Lagos. 

• Digital Mobile Licence Auction: 

The Success Story and the 

Challenges therefrom. Presented 

at the Lagos Business School in 

Lagos. 

• Drafting Commercial Agreements 

Banking Documents: 

Telecommunications Contracts. 

Presented at Nigerian Institute 

of Advanced Legal Studies, 

Lagos.


Interview 

C002D5556 

BUSINESS DAY 

27 


Lawpavilion unveils Nigeria’s first 

artificial intelligence legal assistant 

LawPavilion Business Solutions, the foremost Legal Technologies Company in Nigeria is set to release Nigeria’s first Artificial Intelligence 

Legal Assistant. This was revealed in an interview with the Managing Director, Ope Olugasa. The excerpt is highlighted below: 

We have known 

LawPavilion to 

have a penchant 

for spearheading 

innovations in the 

legal technologies industry in 

Nigeria. Is there something in the 

offing at this time? 

Absolutely! In fact our LawPavilion 

Prime with Case Analytics is the first 

of such not only in Nigeria, but the 

whole of Africa. This year, we are 

integrating Artificial Intelligence, 

simply known as AI, into our Legal 

Software Solutions. 

Interesting. Please tell us more 

about the development of Artificial 

Intelligence in Nigeria? 

In recent times, there has been a rave 

about Artificial Intelligence (AI) and 

this is because it is affecting every 

industry, shaking the very core of 

norms and redefining roles. This is 

primarily because with AI, machines 

can now do the things that were 

considered to be exclusively within 

the purview of human intelligence. 

AI is permeating every industry! 

For instance, in the medical field, AI 

techniques from deep learning, image 

classification and object recognition 

can now be used to find cancer 

on MRIs with the same accuracy 

as highly trained radiologists while 

the Babylon AI Doctor App uses 

speech recognition to consult with 

patients, checks their symptoms 

against a database, and offers them 

adequate treatments. 

In marketing, recommendation 

engines make use of machine learning 

and predictive analysis to provide 

personalized recommendations 

to each customer. This has helped 

big e-commerce platforms such as 

Amazon boost their revenue at an 

impressive rate. 

In transportation, Google Maps can 

analyze the speed of movement of traffic 

at any given time and reduce commutes 

by suggesting the fastest routes. 

As seen above, Artificial Intelligence 

is having broad and significant 

impacts across a variety of industries. 

Lawyers (and the legal profession) 

should not be left out in this new 

wave that bears many benefits. Today, 

in developed countries of the 

world, Artificial Intelligence (AI) is 

beginning to transform the legal 

profession in many ways as lawyers 

are already using AI to do things 

like reviewing documents, ensuring 

compliance (which is a very front 

burner issue for multinationals and 

transnationals), analyzing contracts 

to determine whether they meet 

pre-determined criteria, performing 

legal research, and predicting case 

outcomes. 

Is there a concern that AI could 

replace legal practice as we know 

it today and lawyers too? 

Of course not! AI is not here to replace 

lawyers; rather, it is here to augment 

what lawyers do and free them up 

to take on higher-level tasks such as 

advising clients, negotiating deals 

and appearing in court, thereby being 

productive doing much more in 

less time. 

At JPMorgan, for instance, an AIpowered 

program called COIN has 

been used since June 2017 to interpret 

commercial loan agreements. 

This meant that work that previously 

took about 360,000 lawyer-hours is 

now being done in seconds. 

How prepared are we for AI? And 

what do you think the reception 

would be? 

We cannot wait for AI to come to 

us in the Legal Services industry in 

Nigeria. Rather, having observed the 

speed of adoption of AI around the 

world in several industries, I have 

no doubt that the Nigerian Legal 

Services has so much more to gain 

than lose by quickly adopting and 

adapting AI to our industry. 

Thankfully, the Supreme Court 

has paved the way for even a faster 

adoption of AI through the very succinct 

directive issued by the Honourable 

Chief Justice of Nigeria, Hon. 

Justice Walter Onnoghen on Friday, 

2nd of February, 2018, mandating 

all legal practitioners to make use of 

the legal email system through which 

processes and correspondence with 

the Supreme Court are to be served 

and issued. To my mind, that is such 

an important directive and I am 

almost certain that the Honourable 

CJN will still issue firther directives 

about better adoption of technology 

to the Court system. There can be no 

better stamp of approval than what 

emanates from the highest Court in 

the land 

Would you be kind enough to introduce 

us to the LawPavilion AI? 

Our AI is called ‘TIMI’, which is a 

ChatBot for now, with more complex 

implementations coming shortly. It 

works like a consultant that Lawyers 

can chat with. It converses with you 

and helps you get things done faster. 

It has been programmed to walk the 

user through the Civil Procedure 

Rules of Nigeria Courts. 

Civil Procedure Rules? Please 

tell us why? 

We are starting with the Civil Procedure 

Rules because from our research, 

as a foremost Law Reporting 

Company in Nigeria, we have come 

to realize that 48% of the cases in the 

Appellate Courts are not based on 

the substantive suit; but on procedural 

issues. This means that a lot 

of lawyers are erring on the side of 

procedures in Court, which is chiefly 

governed by the Civil Procedure 

Rules of the various Courts. TIMI 

has been developed to ensure that 

its users never again err on the side 

of procedure! 

How does TIMI works? 

In a conversational manner, TIMI 

carefully walks its users through 

the Civil Procedure Rules, bringing 

to their attention what has to 

be done, within what time frame, 

consequence(s) of their failure to 

do something within the stipulated 

time and the remedy (if any) where 

there has been a default in complying 

with the stipulation of the Civil 

Procedure Rules. The user interface 

is very friendly and easy to navigate. 

For now, we have completed Lagos 

State Civil Procedure Rules. The Civil 

Procedure Rules of other States as 

well as the Federal High Court Civil 

Procedure Rules are in the pipeline 

and will be available to TIMI’s users 

shortly. 

Who can benefit from using 

TIMI? 

Everybody! From the seasoned lawyers, 

to the new wigs, to law school 

students, to anyone that is interested 

in knowing how our CPR in Nigeria 

works. 

When will TIMI be available for 

purchase? 

TIMI will be officially unveiled at 

this year’s NBA conference in Abuja 

at our exhibition Stand. We have a 

package called “ARTIFICIAL INTEL- 

LIGENCE SUITE” encompassing 

TIMI- Nigeria’s first AI Legal Assistant, 

Case Analytics and a Practice/ 

Case Management Software. With 

this three-in-one feature, you can 

do so much more than just legal 

research and practice management! 

You can cross-reference cases, make 

use of the case analytics feature of 

LawPavilion Prime, automate your 

Case Diaries, keep records of spending 

in respect of a client’s account, 

track your matters’ list; endorse your 

client’s file electronically; automate 

your calendar and so much more 

while conversing with TIMI. This is 

the package we will be offering at the 

NBA Conference. 

TIMI is undoubtedly an App that 

will shape the future of legal 

practice in Nigeria! 

That is our goal, to make the practice 

of law and administration of justice 

seamless and highly effective while 

being absolutely efficient and affordable. 

RIGHTSWATCH 

CPC opens up on suit against multiChoice 

…As court grants order against increase in Dstv or GOtv subscription rates 

Theodora Kio-Lawson 

Following an order by the Federal 

High Court on Monday 

restraining Multichoice Nigeria 

from going ahead with its recent 

decision to increase subscription 

tariffs for DSTV and GoTV, the Consumer 

Protection Council (CPC) 

on Tuesday released a statement 

clarifying the Federal Government’s 

case against Multichoice Nigeria, 

after the company announced new 

monthly subscription rates, which 

took effect from August 1st, 2018. 

In the statement signed by the 

director general, the Council disclosed 

that it became expedient for 

it to seek judicial intervention when 

MultiChoice repeatedly violated the 

Mutual Joint Consent Order which 

carried mutual concerns and reservations 

addressed by it and the CPC 

during negotiations. 

The well-articulated statement 

revealed that the terms and obligations 

of this Order included an 

unopposed and undisputed requirement 

and understanding that 

Multichoice will not change, revise 

or modify any material term or 

conditions of service(s) for a period 

of 24 months. 

It read, Multichoice never expressed 

any concerns or dissatisfaction 

with this clause of the Consent 

Order that required Multichoice to 

maintain status quo on its Terms 

and Conditions (which naturally 

includes pricing) for the 24-month 

period during which the company 

would have been under the Council’s 

supervision, to ensure that all 

necessary corrective measures were 

adequately implemented, and that 

consumers eventually get expected 

value for their money. 

According to the body, what 

followed were repeated postponements 

of the execution date in part 

at the instance, and for the convenience 

of Multichoice executives. 

However, while waiting for, and 

when execution was imminent, 

Multichoice surreptitiously, without 

consultation, notice, courtesy information 

or deference to the Council, 

and in violation of the spirit of collaboration 

and the finalized draft 

Proposed Mutual Joint Consent Order, 

by text messages to consumers, 

announced an increase in prices 

which materially changed a term 

of its service. 

The CPC went on to convey its 

strong disapproval to Multichoice’s 

conduct as it amounted to bad faith, 

undermined both the Council and 

its regulatory process. 

It explained that Multichoice’s 

failure to reconsider its decision or 

honour its expressed and negotiated 

commitment made it impracticable 

in the absence of the judicial 

process to sufficiently protect consumers 

and accomplish the vital 

provisions of the Proposed Mutual 

Joint Consent Order. 

The Attorney-General of the 

Federation and Minister of Justice, 

Abubakar Malami had granted authority 

for the Council to initiate the 

suit under Section 10 and 16 of the 

Consumer Protection Council Act, 

Cap c25, LFN 2004. 

Thus the CPC filed an action 

under prevailing law to restrain 

Multichoice from perverting the 

regulatory process and the course 

of the law. 

In its application which was accompanied 

by a nine-paragraph 

statement jointly signed by Messrs 

Babatunde Irukera, Abimbola 

Ojenike, Eme David-Ojugo, Moray 

Adebayo, Teniola Medupin and 

Florence Abebe, the CPC argued 

that unless the court restrained 

Multichoice Nigeria, it was afraid 

DSTV or its representative would 

continue the implementation of the 

increased subscription rate. 

This action, it said was capable 

of rendering ineffective and nugatory 

the on-going regulatory investigation, 

which seeks to prevent 

continuing exploitation of Nigerian 

consumers through obnoxious and 

exploitative billing systems and 

pricing regimes. It thus asked the 

court to accord the matter accelerated 

hearing so that the substantive 

issues raised would be determined 

and settled definitively and expeditiously. 

Granting an Order of interim 

injunction in respect of Suit No 

FHC/ABJ/CS/894/18 brought before 

the court by the Consumer 

Protection Council (CPC), the 

court restrained ”the Defendant/ 

Respondent (Multichoice) by itself, 

agents, representatives, affiliates, officers 

or privies, from continuing the 

implementation of any increased 

subscription rate or price review 

policy imposing increased charges 

and costs on the consumers of 

Defendant/Respondent’s services 

pending the determination of the 

Plaintiff/Applicant’s Motion on 

Notice for Interlocutory Injunction 

filed in this suit,” 

Justice Nnamdi Dimgba in his 

declaration, also restrained DSTV 

from further carrying on or continuing 

any conduct or activity 

which interferes with or has effect 

of circumventing the outcome of 

ongoing investigations by the CPC 

into the company’s compliance or 

non-compliance with the February 

16, 2016 order pending the determination 

of the motion on notice. 

The nature of the order granted 

on by Justice Dimgba is meant to 

preserve status quo, so that the 

Council will complete its investigations 

into possible unscrupulous, 

obnoxious and exploitative conduct 

by the company. 

The Court consequently, the 

court adjourned the case to Tuesday, 

August 28, for hearing. 

It would be recalled that on 

November 7, 2017, the Consumer 

Protection Council (Council) commenced 

a broad investigation with 

respect to Multichoice Nigeria 

Limited (operators of DStv & GOtv). 

The investigation was not the first 

Continues on page 28

28 BUSINESS DAY C002D5556 Thursday 23 August 2018 

industryfile 

NBA president visits Zamfara to 

discuss insecurity and banditry 

The President of the 

Nigerian Bar Association 

(NBA), Abubakar 

Balarabe Mahmoud 

SAN in company of 

some national officers of the 

Bar was in Gusau, Zamfara State 

over the weekend for a Town Hall 

meeting with stakeholders to address 

the state of insecurity and 

banditry in the State. 

The President and his entourage 

on arrival in Gusau, the 

state capital, paid a courtesy 

visit to the acting governor of the 

State, Mallam Ibrahim Wakkala 

Muhammed at his residence. 

In his remarks, the NBA president 

stated that the purpose of 

the visit was to express solidarity 

with the people and Government 

of Zamfara State who have 

suffered from high level banditry 

for a long time. He informed the 

Acting Governor that the Bar will 

engage leaders of communities 

in Zamfara State to seek a better 

understanding of what is happening 

and to explore avenues 

of ending the incessant violence. 

“We are an independent professional 

body, we are not politicians, 

we do not side with the 

politicians; we side with the 

constitution and the rule of law 

and the people of Nigeria. Our 

objective is to promote the rule 

of law; to promote peaceful coexistence; 

and to promote peace 

building and conflict resolution 

The Hague Institute for 

Innovation of Law (HiiL) 

is set to host the first 

ever Lagos Justice Innovating 

Conference which will see legal 

and justice sector experts, both 

within and outside Nigeria, discuss 

how the Nigerian justice 

system can be improved. 

Panel discussants at the 

conference will be legal and 

justice sector giants such as 

the Hon. Attorney-General 

and Commissioner of Justice 

for Lagos State - Mr. M. Adeniji 

Kazeem, Joe Odumakin 

- President, Women Arise for 

Change; Anthony Ojukwu - 

Executive Secretary, National 

Human Rights Commission 

(NHRC); James Peters - Vice 

President, New Market Initiatives, 

LegalZoom; Michel 

Deelen - Netherlands Deputy 

Ambassador, Laure Beaufils 

- British Deputy High Commissioner 

to Nigeria, Deputy 

Commissioner of Police, Lagos 

State Criminal Intelligence 

Investigation Department- 

Yetunde Longe, Lola Vivour 

Adeniyi – Coordinator, Lagos 

State Domestic and Sexual Violence 

Response Team (DSVRT) 

and more. 

Speaking on the significance 

of the event, HiiL’s CEO Sam 

President of the NBA, Abubakar Balarabe, Mahmoud SAN and Ag. Governor of Zamfara 

State, Malam Ibrahim Wakkala Muhammed 

across the country”. 

He added that the Nigerian 

Bar Association believes strongly 

in promoting the rule of law 

and particularly the practical 

enforcement of the tenets of 

the administration of criminal 

justice protocol; He said whoever 

needs to be blamed, the 

Bar Association will not shy in 

pointing those blame, and calling 

whoever is involved to order. 

He also used the opportunity to 

remind everybody, stakeholders, 

political leaders and all 

those in authority that mechanisms 

exist under domestic and 

international law to hold people 

accountable for their actions 

Muller said, “The data we will 

share at this event on Nigerian 

justice needs will be a gamechanger 

for anyone working 

on justice in this country. What 

makes it even better: the region’s 

best justice innovations 

are there too. This could be a 

historic moment of a new justice 

movement in Nigeria.” Sam 

Muller and Vice President His 

Excellency, Prof. Yemi Osinbajo 

SAN will give the opening 

remarks at the event while His 

Excellency Rotimi Akeredolu 

SAN, Governor of Ondo State 

will give the welcome address. 

Asides the panel discussions, 

other events lined up 

and bring those who are responsible 

for breakdown of law and 

order to justice. 

He further stated that the bar 

association is determined to 

contribute to search for lasting 

peace solution and good neighborliness 

in Zamfara State. In 

his remarks, the Acting Governor 

of Zamfara State; His 

Excellency Ibrahim Wakkala 

Muhammed thanked the NBA 

delegation for finding time to 

come to Zamfara. He expressed 

his optimism that the Town Hall 

meeting will afford the delegation 

the opportunity to have a 

better appreciation of the happenings 

in Zamfara State. 

HiiL to host first ever Lagos Justice Innovating Conference 

during the conference includes 

the release of the Justice Needs 

and Satisfaction Survey (JNS), 

a first of its kind, massive survey 

of the justice needs of the 

average Nigerian. Also, the 

best Nigerian justice innovators 

from the 2018 Innovating 

Justice Challenge will pitch 

their innovations for a chance 

to win 20,000 EUR in funding 

from the Hague Institute for 

Innovation of Law. 

HiiL (Hague Institute for 

Innovation of Law) is a research- 

and advisory institute 

for the justice sector and they 

are passionate about making 

justice work. 


NBA-AGC 2018; Mailafia, Teriba, Akabueze to 

speak on economic reforms at SBL session 

L-R, Olumide Akpata,Chairman of the NBA-Section on Business Law, CNBC 

Africa presenter, Esther Ugbodaga , Dr. P. C. Ananaba, SAN, Chairman of 

the NBA - Section on Public Interest and Development Law (SPIDEL), and 

George Etomi, Chairman of the Technical Committee on Conference Planning 

(TCCP) after an interview at NBC on the forthcoming Annual General 

Conference. The conversation centred on the general theme of the Conference; 

“Transition, Transformation and Sustainable Institutions” and trickled 

through a myriad of sub-themes, including the theme of the SBL session. 

As preparations for the Annual 

General Conference 

(AGC) of the Nigerian Bar 

Association (NBA) reach top 

gear, the Section on Business 

Law (SBL) is set to address the 

topic of institutional reforms at 

a session expected to be highly 

engaging and moderated by 

Boason Omofaye, Head, Business 

News, Channels TV. 

The session which will hold 

on Wednesday, August 29, 2018 

is themed, ‘Building The Institutions 

To Support Fiscal And 

Economic Reforms’ will feature 

a line-up of knowledgeable 

speakers and discussants which 

includes, Dr. Obadiah Mailafia, 

Former Deputy Governor, Central 

Bank of Nigeria, Ben Akabueze, 

Director General, Budget 

Office of the Federation, Dr. Ayo 

Teriba, Chief Executive Officer, 

Economic Associates, and Prof. 

Anthony Killa, Director, Centre 

For International Advanced and 

Professional Studies. 

Others are, Adetilewa Adebajo, 

Chief Executive Officer, 

The CFG Advisory, Dr. Joseph 

Abah, Country Director, DAI, 

Mrs. Toyin Bashir, Partner, Banwo 

& Ighodalo and Dr. George 

Nwangwu, managing partner, 

Ratio Consulting Limited 

CPC opens up on suit against multiChoice 


regulatory intervention in Multichoice 

operations, as the CPC 

had earlier in 2016 concluded a 

previous investigation and issued 

certain orders. 

However, despite the previous 

investigation and orders, consumer 

complaints did not abate; with 

complaints increasing in number 

and scope. Customer care related 

issues, which were subject of the 

previous investigation and orders, 

appeared to have become more 

incessant. 

According to the report by the 

CPC, a significant number of complaints 

characterized Multichoice’s 

cost, billing and attitude as exploitative 

and obnoxious, including alleging 

disparities and disparate 

treatment in cost and treatment of 

consumers in other countries where 

Multichoice operates. 

It was further to this, that the 

House of Representatives on account 

of incessant complaints from 

constituents, conducted a hearing, 

and resolved that the CPC intervene 

to address the myriad and persistent 

complaints, including, and identifying 

with specificity the question 

of arbitrary charges and disparate 

treatment of consumers in Nigeria 

compared with other locations, 

as well as the question of whether 

Multichoice was complicit in suppressing 

competition in Nigeria. 

Section 2(i) of the Consumer 

Protection Council Act (CPCA) 

mandates the Council to “provide 

redress to obnoxious practices or 

unscrupulous exploitation of consumers”. 

The Council, pursuant to 

its mandate, and statutorily available 

regulatory tools therefore 

opened its renewed investigation. 

The purpose of the renewed 

investigation was to evaluate 

compliance with the Council’s 

previous orders, and to address 

new complaints based on a combination 

of persistent complaints 

to the Council, and the resolution 

of the House of Representatives. 

The DG however disclosed that 

the CPC did not intend to regulate 

price, or in any way interfere with 

the commercial interface between 

Multichoice and its customers in 

fixing price. 

In its statement to the media, 

it stated, Essentially, Council recognizes 

and respects the fidelity in 

the operation of free market forces 

in arriving at prices for goods 

or services. The Council understands 

and appreciates that price 

is an acceptable determination 

of transparent and undistorted 

market operations. However, it 

is the law, that operators can by 

conduct, distort the market and, 

or otherwise compromise the 

integrity or transparency of the 

market, thereby questioning the 

reliability of the pricing methodology 

or mechanism. 

To be continued next week


C002D5556 

BUSINESS DAY 

29 

GARDEN CITY BUSINESS DIGEST 

Shell’s ‘Health-in-Motion’ touches 

600,000; excites Rivers community 

IGNATIUS CHUKWU & 

SABI ELEMBA 

A 

multinational oil 

giant, Shell Petroleum 

Development 

Company (SPDC) 

of Nigeria, last week 

enlivened the people of Obite 

community through flagging 

off of the Assa-Obite Pipeline 

Community Care Programme 

(A-CCP) called ‘Health-in- 

Motion” at Obite town hall in 

Ogba/Egbema/Ndoni/Emohua 

local government area 

(ONELGA) in Rivers State. The 

scheme is said to have so far 

touched over 600,000 beneficiaries 

in various communities. 

The programme is said to 

be the company’s recognition 

and demonstration that health 

is wealth and in respect of the 

Assa North–Ohaji South Community 

Pipeline Project which 

is on-going aimed at supplying 

gas to areas as projected by the 

oil giant. 

The flag-off ceremony was 

at Obite town hall and the 

following communities were 

the beneficiaries–Obite, Egita, 

Akopta, Ohiouga, Ikiri, and 

Egbeda. 

The Obite town hall was 

filled up with people and the 

medical personnel wearing “T- 

Shirts” with Shell’s inscription. 

They were seen attending to 

patients at designated corners 

Port Harcourt by Boat 

With 

IGNATIUS CHUKWU 

Osagie Okunbor, Shell Nigeria MD 

Consistency: Are pastors the most frustrated? 

CAN of old, before answering 

the call to be fisher of men and 

women. She is over 60 years 

and her children are fully educated 

and grown up. But why is 

she still frustrated most times? 

It is because the followers 

hardly remain on the line on 

the journey to heaven. They 

blow hot today and she is 

happy, next moment, they derail 

and face Hell’s Avenue. She 

shouts, goes on her knees, fires 

and fires prayers, and we come 

back. The problem is, we won’t 

stay straight for long and she is 

shouting again. She is not after 

your money, your wealth, your 

wonderful dresses, your good 

works (even if she encourages 

it), but she is mad when the 

parishioners do not focus on 

spiritual concerns and remain 

stable. Even, some do not 

know how to pray steadily. For 

Mummy Lara, any person that 

does not clock in at least one 

hour of prayers per day is not 

serious yet to fight his/her way 

to the Kingdom. Did Pa Enoch 

Adeboye (head of RCCG) not 

tell young men never to consider 

for marriage any lady that 

does not cultivate the act of 

praying for hours a day? 

Many may misconstrue this 

as interference or over-tasking 

but when one looks around 

these days to see how Satan 

eats up the destinies of young 

men and women; ruin their 

Obite pipeline is an integral 

part of the Assa North- Ohaji 

South development project 

which marks a major expansion 

Nigeria’s gas production and 

the project would support the 

Federal government’s National 

Gas Master Plan aspirations by 

developing the reservoirs in the 

Assa North/Ohaji South fields 

in Imo State. 

On the Shell’s Community 

Care programme which he said 

was introduced more than a 

decade ago in the Niger Delta 

and had since reached thou- 

Lara Joseph; flays inconsistency in life 

careers, ruin their marriages, 

their pregnancies, cause them 

misfortunes and frustrations, 

one would not know that the 

Enemy is now closer because 

Eternity is here. The Angels of 

war also seem close to help in 

the Last Battle that is at hand. 

If you think that the little girl 

by your side that sleeps around 

with tad boys is doing it on her 

own, then you are mistaken; 

if you think the cult boys and 

girls that hang around your 

street to snap up growing kids 

are there by mistake, then you 

are lost, if you think pastors 

children that commit atrocities 

in school love sin, then 

you miss the point; and if you 

think your child at school is 

safe or your spouse at work is 

safe from preying sex maniacs, 

think again. 

So, it was surprising last 

Sunday when Mummy Lara 

mounted the pulpit announcing 

‘Consistency’ as her topic 

like a Western motivational 

speaker or human resource 

within the premises. 

Shell’s General Manager, 

External Relations, Igo Weli, 

who was represented by Chibuzo 

Ayim, External Relations 

Manager (Land) noted that 

the programme was organized 

by Shell in collaboration with 

the Ogba/Egbema/Ndoni and 

Emohua local government 

councils in liaison with the 

Rivers State ministry of health 

for the benefit of the six communities 

along the Assa-Obite 

pipeline right way. 

Weli stated that the Assasands 

of people across Nigeria 

with its free medical health 

component tagged “health 

in-motion”, he said that on the 

last eight years, over 600,000 

persons had benefited from 

the programme and that their 

presence in Rivers State was 

part of a broader care agenda 

to their major stake holders in 

project communities. 

Weli reminded the people 

that health is the greatest gift 

and that good health is wealth, 

he asked them to humbly present 

themselves and their families 

for screening and also take 

advantage of the programme 

to access quality health care 

services from the SPDC team. 

As expected the people 

listed to Shell’s officials and 

were in high spirits to embrace 

the treatments which covered 

cardiovascular screen breast 

and cervical cancer care, dental 

and eye care, and treatment of 

minored chronic ailments. 

The chairman of ONELGA, 

Odili Ifeanyichukwu, who was 

represented by his Chief of Staff, 

Chijioke Ejebide commended 

Shell. According to him, “Shell 

is wearing a new face. Years 

ago, Shell had no good community 

relations but I debunk 

such against Shell. Health is 

wealth”, Odili said. 

He went on: “You have started 

on a good note, continue, 

and do not look down on our 

people. Whenever you need 

our support, we will give you to 

do your job in ONELGA”. 

The chairman went further 

to advise the six communities to 

cooperate with Shell. According 

to him; “ONELGA people are 

known for dialogue. Cooperate 

with them and with what I 

am seeing today, Shell will do 

well. Welcome Shell, if there 

is any problem, dialogue and 

the community development 

council (CDC) is there”. 

He went further to say that 

ONELGA is the only local council 

area in Rivers State that 

management expert. After 

defining her topic, she gave 

different reasons why people 

run the race of life in a very 

inconsistent pattern. She then 

declared that lack of consistency 

is or focus is the reason 

for most crashed careers, marriages, 

and spiritual lives. True! 

To her, instead of a Christian 

to search out a true church, 

settle there, do all that the Lord 

commands him/her to do according 

to the scriptures, and 

remain consistent in worship, 

fervently praying and waiting 

in faith for the Lord, they 

rather do things wrongly and 

begin to junket from ministry 

to ministry for miracles and 

deliverance. 

The frustration with pastors 

comes from the fact that 

they show people the laws of 

God, the followers believe it, 

but they choose to derail. This 

makes the man or woman of 

God highly frustrated because 

he/she knows that if the parishioners 

can keep steady 

and do what they were told, 

the result would be what was 

foretold. But, they won’t! They 

cause the failure, they blame 

the pastor. When you press 

them, they behave as if they 

were doing you a favour by 

obeying God. Even if you cast 

out demons, people say you 

must have acquired powers 

The most devastating 

cause of frustration is 

said to be when you do 

your best to put sense into 

your down-liners (followers) 

and they continue to act in very 

inconsistent ways; good today, 

terrible tomorrow. You want 

to take them to a desired destination, 

they agree it’s a good 

place to go, but you see them 

derailing like the Jews from 

Egypt. Is it true that pastors are 

the most affected leaders suffering 

this malady, frustration? 

This is the verdict of the 

fiery woman of God, Lara 

Joseph, who holds sway at 

the Redemption Hall Model 

(Area) headquarters of the 

RCCG in Elelenwo, Port Harcourt. 

Mummy Lara, as most 

followers call her, is a woman 

who worked in very high and 

responsible position in NAFhosts 

many multinational oil 

companies and that boasts of 

both gas and oil. 

The chairman repeated; 

“Shell, please treat our people 

well. If you do not treat our 

people well, we will resist, but 

ONELGA people are peaceloving 

people”. 

Ufuoma Ovwigho who 

represented the community 

health officer, Akinwumi Fajiola, 

advised Shell to involve 

the ONELGA health workers at 

any other time such programme 

would be done as the LG has a 

lot of medical officers. 

Meanwhile, in an interview, 

Florence Frank, one the beneficiaries 

of the free medical treatment, 

commended Shell and 

described the programme as “a 

good thing coming from Shell”. 

She stated that another oil 

company, Total, had done such 

a free medical scheme but said; 

“This one by Shell is a good one 

and I like it and I want God to 

protect them”. 

Also Onyechere Nwokocha, 

a pastor, thanked God for 

the free treatment organized 

by Shell as he said it has now 

recognized the community. He 

said; “They should continue to 

come and check if what they 

have done is yielding fruits”. 

Onyechere advised the free 

medical treatment beneficiaries 

to keep to the drug prescriptions 

to avoid any ugly consequences. 

from black sources; Beelzebub. 

Mummy Lara says true believers 

may fall and fall but they 

rise and rise. That is the way to 

fight off frustration that comes 

from doing something and not 

getting the desired results, she 

said. That is our own recommendation 

to her; she should 

not mind our constant failing, 

she should keep sowing into us, 

victory shall be hers, and ours. 

Nigeria is a good example 

of a country whose people are 

frustrated. The leaders claim 

we make them frustrated while 

the followers turn round to say 

the leaders make us frustrated. 

Inconsistency has truly dealt 

ugly wounds on our national 

life. Nothing goes straight, 

not elections, not order of 

elections, not the National Assembly 

rules, not succession 

rules, not the budgets, not 

the Excess Crude Account, 

not oil production quota, not 

roads, not job creation, not 

security policies, nothing. Admission 

cut off bars are never 

reliable; someone with 263 

points would be stopped for 

lack of meeting national merit, 

another with 235 is heralded 

into same university. Inconsistency 

is Nigeria’s national 

bane. Somebody, please help 

heal our pastors. They are not 

alone on the queue of frustration. 

It’s well.



Investing in Rivers State 

Gov Wike outlines industrial policy steps 

• Trans Amadi to become ‘Economic Zone’ as factories may rush back 

Ignatius Chukwu & Innocent Eteng 

The economic policy of Rivers 

State under Gov Nyesom 

Wike was outlined 

most vividly last Friday 

when the governor was 

guest of honour at the 34th annual 

general meeting (AGM) of the Rivers/ 

Bayelsa branch of the Manufacturers 

Association of Nigeria (MAN) which 

held at Atrium Event Centre on Stadium 

Road in the Garden City of Port 

Harcourt. 

The event was a kind of galaxy 

of the business sector with the top 

echelon of MAN led by the national 

president, Frank Jacobs of 

Jacobs Wines, and the National vice 

President, South East/South-South, 

Ekama Emilia Akpan, CEO of Showers 

Group, regarded as the voice of 

women and youths in MAN. It was 

a moment to celebrate the equally 

high-performing but outgoing 

branch chairman of MAN, Charles 

Bekee, CEO of Eastern Wrought Iron 

Limited, who handed over to a senator, 

Adawari Pepple. 

Gov Wike, who sent his Special 

Adviser on Investment, the experienced 

gentlemen technocrat, Isaac 

Okemini, an accounting guru and 

former GM of RISONPALM, took 

time out to outline his economic 

methods but caused huge excitement 

when he announced plans to 

transform Trans-Amadi into what 

the governor called “Economic Zone’. 

The aim, he said, is to cause a mass 

return of factories that had since fled 

the industrial estate. 

The governor, through Okemini, 

said Nigeria seemed to be rather 

manufacturing a jobless population, 

Isaac Okemi 

Governor Nyesom Wike 

and this is not good for the country. 

Piling generations of youths without 

jobs over the years could become an 

explosion waiting to happen. 

According to the state government, 

it must be reiterated that government 

does not create jobs. “It rather 

creates the enabling environment 

for the private sector to create jobs. 

Reasonable persons should begin to 

ask; where did Nigeria get it wrong in 

terms of economic development and 

social stability?” Creating an enabling 

environment could be an elastic term 

because some state governments in 

the Niger Delta have gone as far as 

setting production processes and 

invited private managers into them, 

and still said it was all about providing 

enabling environment. 

The Rivers State government 

with active counsel from Okemini, 

restricts itself to infrastructural 

boost and sometimes seed capital to 

smaller businesses. Okeme said: “Infrastructure 

is the key to economic 

boost. Remember that capital is a 

coward; it goes to where condition 

is good. That is why every economic 

jurisdiction should court capital with 

enabling environment.” 

As globalisation took a bashing at 

the AGM, the governor’s representative 

on economic matters warned 

MAN members that globalization 

was rather a ‘zero-sum game’; “If you 

don’t raise up your game, somebody 

will take it out of you. You are a either 

a winner or a loser in globalization.” 

Outlining the economic steps in 

Rivers State, Okemini stated: “We 

have achieved stability, security and 

infrastructure boost. We have done 

well in these areas that were lacking 

before. Some three years ago, 

it took three hours to go from the 

international airport at Omagwa to 

the heart of the Garden City or the 

Government House area. Now, it’s 

just 30 minutes drive. This is because 

of rehabilitation of various roads that 

serve as arteries in the oil city.” 

Trans Amadi: 

On the industrial estate, he said: 

“The industrial estate called Trans- 

Amadi is now a smooth place with 

easy drive-way system. Trans- Amadi 

is to bounce back as an Economic 

Zone. The road network is just the 

first leg of the plan. There are many 

idle factory spaces in Trans-Amadi 

but we have plans to attract factories 

back to that place. 

Note that fallow factories issue 

is not only a Rivers matter but a national 

issue. Liver Brothers and many 

such companies were manufacturing 

in Nigeria. Now, many of them have 

fled to Ghana and from there invade 

or serve the Nigerian market.’ 

Other matters; 

Okemini said: “The administration 

is handling the issue of multiple 

taxes and harassment of business 

operators over tax. It is work in progress, 

rather. We are doing much to 

manage the inefficiencies caused by 

public sector failures that affect the 

private sector.” 

Courts were shut down one year 

before Wike came on board due to 

political crisis. Okemini said absence 

of courts would stagnate industrial 

harmony because of absence dispute 

resolution mechanism in an industrial 

jurisdiction. “We have great respect 

for Rule of Law. This is to enhance 

dispute resolution which is a critical 

part of promoting industrial growth 

through harmony and justice. The 

courts are now working effectively. 

The Nigerian Industrial Court has 

been established in the state with a 

befitting building complex.” 

On land administration, he said; 

“Land certificates are now easily issued 

to encourage asset build up and 

loan accessibility for businesses, unlike 

some years past. It takes a maximum 

of 90 days after completion of 

the paperwork. This administration 

has so far issued 2093 certificates 

(C/Os) and about 1070 consents 

whereas his predecessor gave less 

than 600. This gives a lot of leverage 

to businesses.’ 

He said security is a national issue 

because a governor is not the 

chief security officer of a state. “All 

governments are involved. Security 

is a federal matter but no state has 

done more than Rivers State in supporting 

the police to do its work and 

safeguard lives and investments.” 

On globalization, he described 

it as a moving force, saying societies 

and businesses have no option than 

to tap into it and make progress. 

“Before, to call someone in the US, we 

would have to go to the NITEL booth. 

Now, you can stay in the comfort of 

your bedroom and call any part of the 

world. That is globalisation. It is true 

that globalisation poses challenges 

but it also provides opportunities.” 

He was worried that manufacturers 

seem to dwell more on the 

problems than the opportunities in 

globalisation. “The task ahead of us is 

how to leverage on information technology 

(IT), which is the hallmark of 

globalisation, and the opportunities 

therein, and make progress.” Applause 

trailed Okemini’s presentation 

and the governor was given award by 

MAN for consistently working with 

the business community especially 

manufacturers in the past three years. 

Port Harcourt goods dominate at MAN Made-In-Nigeria exhibition 

Some critics wonder what can 

be made in Nigeria, let alone 

in Port Harcourt that could 

make waves. The Manufacturers 

Association of Nigeria (MAN), 

Rivers/Bayelsa branch, used its 34th 

AGM to reply to them. It was made 

clear that the best dredgers that 

dredged the sand to build some of 

the biggest road projects in the Niger 

and withstood he salty waters were 

built in Port Harcourt (Wakamma 

Dredge). Right now, the best gas 

capsules (cylinders) that sustain most 

viable gas plants for factories and universities 

are made in Port Harcourt. 

The best furniture sets that last for 

decades are made in Port Harcourt 

(Eastern Wrought Iron). The best 

export quality resins and fertilizer that 

earn foreign exchange for Nigeria are 

made by Indorama in Nigeria. The 

list goes on. 

Now, Top products were on display 

at the Atrium Event Centre on 

Stadium Road where MAN made a 

show last week end. It also marked 

the conclusion of the tenure of the 

current chairman, Prince Charles 

Bekee, who took over few tears back 

from Ekama E. Akpan, now national 

vice president, south east and southsouth. 

Indorma Eleme Group took three 

pavilions to showcase world class 

products that guarantee almost all 

plastics products in the world, and 

urea that helps fertilizer manufactur- 

ers to blend to test. This saves huge 

foreign exchange for the nation. 

Nigeria now produces oils and 

perfumes from base oils that give 

some of the best fragrances in the 

world. This was at the Valia Calleries 

Ltd pavilion which attracted huge 

attention. 

Another star stand was from Machineering 

Designs & Fabrications 

Limited which saves dredgers and 

shippers from shut-down due to their 

ability to fashion out any machine 

part especially through refurbishing. 

This effort saves millions of naira for 

dredge companies and shippers and 

also saves jobs and time. 

Easter Wrought Iron Limited was 

always on show with durable and 

affordable furniture works for hotels, 

hospitals, homes and offices. 

The Raw Materials Research Centre 

was on hand to ensure quality and 

controls together with the Standard 

Organisation of Nigeria (SON). There 

was Charles Aluminum Company, 

Siat of Belgium managing RISON- 

PALM, Crown Flour Mills, and De 

Chico Investment Limited. 

Alcon Nigeria Limited showcased 

its products especially in 

electrical panels made in Port Harcourt 

to dazzle the marine and oil 

industries. Daneleco Limited was 

also on hand, Rubbystones Fibre 

was there, Beverage Management 

Systems was there, and Pabod was 

on hand with endless variety of 

Let the economy 

stand on two legs, 

man and woman 

- MAN national VP, 

E.E Ekama 

The national vice president 

of MAN, Ekama Emilia 

Akpan, added her usual 

voice for women entrepreneurs. 

The CEO of Port Harcourt 

Showers Group told the large 

audience to understand that the 

economy cannot be grow without 

standing on both legs, men and 

women. 

She said women represent a 

latent energy that must be released, 

Ekama Emilia Akpan, national vice 

president of MAN 

saying women provided huge 

steam to fire the Asian economies. 

She said women can work from 

both the office and from home. 

She added: “I looked around in 

the beginning and I saw few women 

and I was discouraged; now, I can 

see more women and I am happy. 

We continue to agitate for more 

women inclusion because there is 

a huge but untapped segment of the 

Nigerian community.” 

Akpan said: “The manufacturing 

sector sustained the Nigerian 

economy in the heat of recession 

a couple of years back. That is why 

MAN could assert enough influence 

to stop schemes such as AfFTA 

and EPA. We say, support women 

in business, get them out to grow a 

new economy. Let us stand on tow 

legs; man and woman.” 

beers, malts and spirits. 

There was always M-Saleh with 

engines and now wheel barrows, 

there was Access bank, Nigeria Export 

Promotion Council was on hand to 

show how best to meet export quality, 

Grofin Nigeria was ready for financing, 

Eastern Enamelware Factory was 

there, African Asset Management was 

on hand, MAN had a centre to register 

new members, Made-In-Nigeria 

Products.ng (MINP) was there and 

Cobef International completed the 

story. 

MAN national president, Frank 

Jacobs of Jacobs Wine came to declare 

the exhibition open assisted by the VP, 

Akpan and Charles Bekee, the outgoing 

PH branch chairman.

Thursday 23 August 2018 C002D5556 BUSINESS DAY 

31 

INTERVIEW 

Impact Investing has immense potential to alleviate 

poverty, build infrastructure in Nigeria - Afolabi Oladele 

Afolabi Oladele is an Executive Partner at the African Capital Alliance (ACA), founding member of the IIAN Foundation. 

IAAN foundation is a body that is at the fore-front to creating awareness on impact investing practices in Nigeria. In 

this interview with BusinessDay’s Innocent Unah and Abisinuola David-Olusa, he talks about the alliance and its key 

objectives, the impact investing activities of the Foundation and the prospects of impact investing in Nigeria. Excerpts: 

Can you take us on a journey 

of how impact investing has 

become what it is today? 

It is good to understand this 

from the perspective of the 

global definition of, or outlook 

on, impact investing; 

we can then look at how the 

Nigerian scene is responding to 

it. There are really two sides to it. 

First, we can look at the way the 

financial world is seeing global 

impact investing. Then second, 

we can look how efforts are being 

made to transform what we know 

as philanthropy and attempt to 

metamorphose it into something 

very similar to what is happening 

elsewhere as we look at impact 

investing. 

So impact investing, from 

the point of view of a financial 

person (that is looking at it from 

a financial perspective), is about 

the investments you make into 

funds or companies with the 

intention of generating a beneficial 

impact. That’s on one side. 

Then as you look at the local side 

and what has been done in the 

Nigerian space, it is essentially to 

take philanthropies, to see them 

metamorphose into the world’s 

view of how impact investing 

should operate. 

When we talk about beneficial 

impact, there are two sides to 

it: there’s the social and environmental 

side, and there is the 

financial return. Philanthropy in 

the past usually never looked for 

financial return and what one 

could realise was that it never 

made any impact, because there 

was no accountability associated 

to it. But the new bent that has 

come is that, yes, you are going 

for social impact but there has 

to also be the beneficial returns. 

A lot of people call it missionrelated 

investments and when I 

think of it this way, I tend to look 

at the likes of Ford Foundation 

that believes in creating an inclusive 

environment, especially 

in the financial services space, 

where even people in the village 

can become part of the economy. 

That is how impact investing has 

become a topical issue in a developing 

economy like Nigeria. 

In that sense therefore, impact 

investing has inexhaustible 

potential in Nigeria, considering 

the level of poverty that we face 

in the country and the extremely 

poor quality of education, the 

horrible healthcare services, and 

the need to grow the economy 

in an inclusive way. In terms of 

statistics, it has only been in the 

last ten years that this became 

Afolabi Oladele 

a major movement and various 

reports estimate that close to $77 

billion has come as assets under 

management for those companies 

that are engaged in impact 

investing globally. 

Today in terms of the investments 

that actually have global 

impact investing portfolios, there 

are names like Black Rock, Rockefeller 

foundation, Goldman 

Sachs, Credit Suisse, Capital 

partners etc. So that is our journey, 

it’s just that at the time, it was 

not labelled impact investing but 

investors demanded that fund 

managers put funds in investments 

with prospects for delivering 

not only financial returns, but 

also social returns. 

Are there specific impact investments 

that have been made 

by African Capital Alliance over 

the years? 

I can give an example of MTN. 

They were a major transformer 

of the Nigerian economy and 

you can see the huge impact: 

from taxation for the Nigerian 

government which runs into billions 

of dollars, to employment 

(e.g. the roadside person selling 

recharge cards). And we can see 

the impact in terms of mobile 

telephony. Until today, MTN has 

continued to be very impactful 

on the lives of Nigerians. 

They have a partnership with 

Lumos, which has enabled them 

to leave a footprint in the energy 

sector of the economy. The partnership 

has been able to deliver 

solar packages that are tied to 

individual’s capacity to pay, with 

the upfront cost being minimal. 

Our foray into impact investing 

has also seen us use part of 

our resources: I think we dedicated 

5 per cent of our EBITDA on 

an annual basis to supporting our 

chosen sector in impact investing, 

which was education. In supporting 

education, we took a view 

across the entire space - primary, 

secondary and tertiary - focusing 

essentially at the upper end at 

entrepreneurial education. Our 

thinking was that if you can spur 

people to become entrepreneurs, 

they can become generators of 

employment. 

We provide grants for LBS 

entrepreneurship school on an 

annual basis. That’s our approach 

of saying we have chosen to provide 

access to quality education 

and entrepreneurship. As a firm, 

one of the areas that has been of 

interest to us is in the area of student 

accommodation as we know 

that both in the state and federal 

universities, there is a shortage 

of over 1 million beds, and it is 

possible to do some work in a 

very structured financial way that 

earn financial returns and also 

solves this major problem. We 

keep the kids out of trouble and 

provide them with the tools they 

need. One of the things we studied 

as a model is in Yaba, Maple 

house, a purpose-built student 

accommodation. It is the first of 

its kind and that gives you a taste 

of what student accommodation 

can feel like in terms of power, 

water and so on. 

What specific targets does 

the Impact Investing Alliance 

seek to achieve in the medium 

and long term? 

It depends on which area you 

want to channel your efforts to. 

As earlier mentioned, there is 

education, health, renewable 

energy etc. We might want to 

solve problems on students’ accommodation. 

So we can begin 

by asking: is it possible to put 

in the market on an annual basis, 

100,000 beds? And this just 

scratches the surface looking at 

the explosive student enrolment 

in Nigeria. Another question 

might also be: are we looking at 

getting clean water to so many 

local governments? 

But it is not just defining targets, 

you want to understand 

your space and prioritize them, 

then you can begin to look at the 

interest of philanthropists, how 

much they are willing to put up 

and then we can begin to set 

targets. 

What is the Impact Investing 

Alliance of Nigeria all about? 

We have been here for twenty 

years, we’ve invested successfully, 

we understand what 

impact investing is and we can 

be effective in a number of 

areas such as affordable housing 

and we know people who 

are in the financial inclusion 

space that can actually deliver 

on inclusiveness. We’ve been 

partners for over two decades 

with institutions such as BusinessDay, 

you know the market 

and with a powerhouse like 

Ford foundation that has gun 

powder, it can then be a catalyst 

for a much large scale. 

So the whole essence of the 

Impact Investing Alliance of 

Nigeria is to educate the market 

on what impact investing is, 

educate our philanthropists on 

how to approach philanthropy 

in a way that creates the impact 

that they want. 

With the Impact Investing 

convening coming up in September, 

what should it mean 

for the impact investing Nigerian 

ecosystem and the country 

generally? 

Hopefully, the event in September 

would establish an entity 

that’s willing to take up the 

responsibility of impact investing 

education. And if it’s not an 

entity, it would be a variant of 

what the European Venture Philanthropy 

Association (EVPA), 

because they have gone quite 

some way in terms of the way it 

was done in other places. 

So is it an EVPA Nigeria . . . 

That’s when it becomes a 

structure. These are the things 

that we need to get grounded on 

so that there is someone who is 

really driving this. The convening 

happening in September, should 

get out to many people. Contacts 

need to be facilitated better so as 

to move past conversation. Also 

what is happening in September 

is to get collective acceptance to 

create a structure. There is a need 

to get a critical mass that supports 

that and then an execution 

structure that can make it work. 

Of course, we have to then put 

all the safeguards - it’s too big to 

allow for failure. 

In terms of policies, what 

roles should the government be 

playing, or should the government 

be playing, to encourage 

growth of the industry and how 

do we create awareness on impact 

investing? 

At this point in time, the country 

is so hard put for money. In 

other climes that I know, whatever 

they give to charity is tax 

deductible. Would the government 

be able to do that? I am also 

president of an angel fund where 

we just levied ourselves. It has a 

structure where people can come 

and develop their business plans 

and then we find angels who 

would look at your proposal and 

see that it ticks all the boxes in 

terms of management capability, 

addressable market, returns and 

the fact that you are willing to let 

people mentor you. 

We find angels that would put 

money behind that so several 

things are going. So the government 

should make it possible for 

those who are putting in money 

to get some tax rebate. These 

are not things that are new, for 

example, in the Canadian model 

that I am very familiar with, for 

every dollar given out, it is written 

against taxes and that makes 

it easier to give more.



FEATURE 

Curbing illicit trade to grow local industries 

Illicit trade has been an obstacle to the growth of local businesses and national development in Nigeria, writes Josephine Okojie 

In recent years, Nigeria’s 

manufacturing sector has 

been struggling to grow despite 

the country’s large 

population size which presents 

a viable market for goods and 

services. 

This is as a result of a combination 

of factors and is being further 

threatened by illegal trading of 

goods and services in the country 

otherwise known as illicit trade. 

Illicit trade is the trafficking and 

illegal trades in drugs, arms, persons, 

toxic waste, natural resources, 

counterfeit consumer goods and 

wildlife among others, according 

to the Organisation of Economic 

Cooperation and Development 

(OECD). 

It has been a challenge for centuries 

and virtually every country in 

the world contends with the problem 

in one form or another, especially 

in the commodities market. 

The trade has an extensive destabilizing 

impact on national 

and global security architecture 

because it facilitates transnational 

organised crime and illegal flow 

of money. 

In Nigeria, illicit trade exists in 

all forms including the massive rate 

of smuggling. 

To stem the tide of illicit trade 

in the country and show the underlying 

factors responsible for 

its growth as well as the economic 

disincentives it creates for local 

industries, the Initiative for Public 

Policy (IPPA) held a policy roundtable 

recently in Lagos. 

“It is a trade that cut across a 

wide range of consumer goods 

and brands, including electronics, 

apparel and alcoholic drinks, 

vehicles and auto parts, drugs, 

arms, pharmaceuticals, cigarettes, 

L-R John Isemede, consultant with the United Nations Industrial Development Organisation (UNIDO); Olusegun Solotu, 

researcher, Initiative for Public Policy Analysis (IPPA) and Olajide Damilola, senior research fellow, IPPS. 

counterfeit currency as well as 

humans, impacting virtually every 

product, industry and country,” 

Olajide Damilola, senior research 

fellow, Initiative for Public Policy 

Analysis (IPPA) said. 

“Illicit trade products poses 

serious health risks to consumers, 

reduces tax revenues and increases 

instability, damage brand image 

of licit manufacturers and does 

not reflect in the country’s GDP,” 

Damilola said. 

He grouped the drivers of illicit 

trade into consumer preferences, 

business environment and regulatory 

frame work. 

According to him, illicit trade 

thrives mostly owing to consumers’ 

preference for lower priced goods 

and have limited knowledge about 

the products as well as socially accepting 

them. 

On the business environment, 

the researcher said “aggressive 

taxation without adequate enforcement 

of fundamentals create 

business uncertainty, inadvertently 

providing incentive for illicit trade 

to flourish thereby eroding the very 

economic objective government set 

to achieve by rendering legal businesses 

and tax payers comatose 

due to the unrestrained activities 

of illicit trade purveyor,” he said. 

The researcher cited the case of 

Belgium where a 40 percent alcohol 

excise increase resulted in a EU20 

million revenue decline in 2015 

and Greece where a 125 percent 

excise hike for alcohol failed to deliver 

projected revenue but rather a 

EU17 loss in 2015 as well. 

He stated that weak regulations 

including ineffective law enforcement 

and inadequate sanctions by 

government at all levels to curb the 

act has fuelled the act in the country 

to the detriment of the country’s 

national development. 

Illicit trade has continued to fuel 

the sales of counterfeit goods in Nigeria, 

thereby reducing the market 

share and capacity of businesses 

operating in the country. 

According 2015 World Economic 

Forum, illicit trade accounts 

for between eight and 15 percent 

of global GDP and reaching $12 

trillion in 2014. 

Olusegun Sotolu, senior researcher, 

IPPA said that Nigeria is 

losing billions of naira in potential 

revenue over the years to illicit 

trade. 

“It is a proven fact that illicit 

trade especially products counterfeiting, 

smuggling of narcotics, 

weapons and tobacco is a source 

of revenue for organised criminal 

groups in Africa and beyond , 

there are indications that in some 

instances it is also linked to financing 

terrorism. Fighting illicit trade is 

therefore key to protecting national 

security,” Sotolu said. 

“From precedence, the increase 

in excise could potentially embolden 

criminals and smugglers 

to conceal imports as well as abuse 

certain customs and excise procedures 

if unchecked; this would 

completely negate the accruable 

benefit to the government. 

“Illicit trade also exposes the 

general public to the dangers 

of sub-standard and low quality 

products, as usage of such illicit 

products have been known to cause 

grievous health issues or compromised 

infrastructural integrity,” he 

added. 

He urged the government to 

learn from countries that have been 

able to curb illicit trade through 

the adoption of improved regulatory 

laws. “We need to strengthen 

our legislation and agencies that 

carry out the checks against illicit 

trade, as well as adopting a holistic 

approach.” 

John Isemede, consultant with 

the United Nations Industrial Development 

Organisation (UNIDO) 

said that for Nigeria to maximise 

revenue opportunity from the 

increased excise tax, an improved 

enforcement framework is required 

for successful policy actions to rein 

in illicit trade that must be complemented 

by robust and coordinated 

law enforcement activities. 

“The strengthening of relevant 

law enforcement authorities such 

as the Nigerian Customs amongst 

others is pertinent and greater 

inter-agency cooperation nationally 

and trans-nationally is necessary 

for effective enforcement that 

would stifle illicit trade,” Isemede 

said. 

“Enhanced bilateral cooperation 

with major source and transit 

countries inclusive of cross-border 

coordination and cooperation is 

necessary with appropriate sanctions 

and guarantees,” he further 

said. 

He explained that the overarching 

aim of these measures is 

to secure the legal supply chain, 

strengthen enforcement and address 

the incentives underpinning 

illicit trade. 

He added that implementing 

effective enforcement initiatives 

against illicit trade will enable government 

realise revenue objective 

to grow the economy and provide 

social infrastructure. 

The recent UNIDO’s World 

Manufacturing Statistics for Quarter 

1, 2018, Nigeria’s manufacturing 

output rose by just two percent. 

Experts say the adverse operating 

business environment coupled 

with lack of government encouragement 

and protection of their 

goods and services from losing 

their commercial viability to illicit 

perpetrators is responsible for the 

low manufacturing growth. 

They noted that illicit trade is 

unlikely to ever be eliminated, but 

industries can be protected against 

it, adding that both licit and illicit 

trades are complementary in nature. 

“There can be no single policy 

framework to address the problem 

of illicit trade but a case by case approach 

targeting specific products 

will be more effective. The nature 

and complexity of the problem 

should dictate the nature of the solutions,” 

Damilola who was earlier 

quoted said.


BUSINESS DAY 

33


C002D5556 


NEWS 

Low consumer confidence hits Shoprite... 


tional Bureau of Statistics (NBS) 

as Nigerian consumers struggled to 

keep up with rising expenses amid 

an unfriendly economic environment 

with double digit inflation and 

unemployment. 

Shoprite, Africa’s largest retailer, 

blamed the slow pace of economic 

growth in the country for the lacklustre 

sales growth performance. Nigeria’s 

economy expanded by only 0.8 percent 

in 2017 and 1.9 percent in the first 

quarter of 2018, meanwhile inflation 

has remained at double digits since 

2016 which has eroded the purchasing 

power of consumers, thus, hurting 

national consumer confidence. 

The Central Bank of Nigeria 

Consumer Survey Report for second 

quarter 2018 showed that consumers’ 

overall confidence outlook worsened 

in Q2 2018, as more consumers 

were less optimistic in their outlook. 

The index fell to -6.3 points which 

was 10.7 points lower than the index 

in second quarter 2017. The report 

stated that consumers attributed 

the moderation in their outlook to 

worsening economic conditions. 

Majority of consumers nationwide 

expect inflation and exchange 

rate to rise and don’t think that the 

next 12 months would be an ideal 

L-R: Felix Onwuchekwa Nwabuko, managing director/chief executive officer, Presco plc.; Godwin Obaseki, Edo 

State governor, and his wife, Betsy Obaseki, at a Stakeholder Workshop on Sustainable palm oil development in 

Edo State by Tropical Forest Alliance 2020 Africa Palm Oil Initiative (TFA2020 APOI) in Benin City. 

How Federal Ministry of Health allows... 


The Audit team clearly established 

a case of impunity against the Management 

of the Federal Ministry of 

Health over the manner Funds were 

diverted and a wilful contravention 

of Section 3 of the Appropriation Act, 

2013 which provides that “Amounts 

appropriated under this Act shall 

be released from the Consolidated 

Revenue Fund of the Federation and 

applied only for the purpose specified 

in the schedule to this Act” and 

Financial Regulation 417 which states 

that “Expenditure shall strictly be classified 

in accordance with the Estimate 

and votes must be applied only to 

the purpose for which the money is 

provided. Expenditure incorrectly 

charged to a vote shall be disallowed”. 

The condemnation was contained 

in the most recent released 

annual report of the Auditor-General 

for the Federation on the accounts of 

Nigerian agencies for the year ended 

December 2016. 

The Auditor General observed 

that since the inception of the Ministry, 

management has failed to carry 

out one of its core responsibilities 

towards safeguarding the assets of 

the Ministry, namely maintaining 

an up-to-date Fixed Assets register. 

time to purchase big-ticket items like 

motor vehicle and houses. 

The Consumer Expectations Survey 

(CES) for Q2 2018 was conducted 

during the period May 28 to June 15 

2018, covering a sample size of 2,070 

households drawn from 207 Enumeration 

Areas (EAs) across the country. 

In line with the findings by CBN, 

KASI Insight Consumer Confidence 

for Nigeria dropped to 20 points last 

month from 27 points the previous year. 

In January, consumer confidence was 

25 points, showing a continuous fall in 

consumer confidence in the country. 

The KASI Insight Consumer Confidence 

Score (KIC Score) is a composite 

index of 7 questions that runs monthly 

via consumer polls in countries surveyed. 

The data output is based on a 

fresh, randomly selected representative 

of city dwellers aged 18–64. 

Since 2015, Shoprite has struggled 

with foreign exchange restrictions, 

rising food inflation and slow 

economic growth in the country. 

Amid such tight economic environment, 

the company stalled in developing 

new shopping centres in the 

country. Import restrictions in 2016 

forced the company to look inward 

to source for locally made products 

to retail. As a result, up to 80 percent 

of sales in Shoprite Nigeria are locally 

made products. 

Shoprite projects that food inflation 

will likely increase in the coming 

year but appear to be more confident 

in the economy going forward as the 

company stated that “the Nigerian 

economy is now beginning to show 

signs of life”. 

The company projects that any 

increase in the minimum wage in 

Nigeria will help boost sales and 

profit growth next year. Shoprite announced 

that it plans to open 88 new 

supermarkets in 18 non-RSA countries. 

It did state how many of those 

shops will be opened in Nigeria. 

The company recorded its first 

annual earnings decline in 19 years 

which it blamed on currency devaluation 

in Angola and poor showing in 

South Africa and Nigeria. Local currency 

sales declined by 9.3 percent 

in Angola, the second largest oil 

producer after Nigeria in Africa. But 

Shoprite recorded local currency sales 

growth of 8.8 percent in Zambia. 

Chief Executive of Shoprite, Pieter 

Engelbrecht told analysts at the 

company’s results presentation that 

this year was probably its toughest. 

Analysts note that the fact that 

Shoprite which targets lower to middleincome 

consumers in Nigeria is struggling 

with sales is an indication that the 

average Nigerian consumer purchasing 

power has been badly hit by the triple 

whammy of rising inflation, unemployment 

and a weaker currency. 

“The Register was not updated 

for 2015 and 2016 to reflect the position 

of the assets acquired, owned 

or disposed of by the Ministry as the 

absence of this record creates room 

for pilferage, conversion, misplacement 

or misapplication of valuable 

government assets,” the report said. 

Like other developing nations, 

Nigeria had over the years received 

foreign assistance in many areas, 

especially in the Health Sector where 

donors have provided assistance in 

critical areas like provision of scarce 

but highly needed drugs and equipment, 

funds for training of Health 

personnel, procurements and repairs 

of health facilities and equipment. 

Nigeria’s health agencies like National 

Action for the Control of AIDs 

(NACA), National Primary Health 

Care Development Agency (NPHC- 

DA), and National Programme on 

Immunisation (NPI), Guinea Worm 

Eradication Programme (GWRP), 

Polio Eradication Programme and 

others have always received assistance 

from foreign donors in advancing 

their nationwide activities. 

Recently, assistance from some 

of these donors was suspended due 

to unsatisfactory reports emanating 

from the country’s health agencies as 

these reports border on lack of transparency 

in the management of funds 

released by the donors, failure to 

keep to signed agreements between 

the donors and Nigerian government 

and non-adherence to standards 

and procedures in procurements 

and execution of contracts. 

“My attention was drawn to these 

anomalies in two agencies of the Federal 

Ministry of Health,” Ayine said. 

Switzerland based- Global Alliance 

for Vaccines and Immunisation 

(GAVI) accused Nigeria’s NPHCDA of 

mis-management of funds released 

by the organisation and invited the Nigeria’s 

Auditor General to observe the 

appointment of an audit firm to carry 

out extended cash programme audit 

of GAVI funds released to NPHCDA 

from 2010 to 2015. 

The audit of GAVI’s financial 

assistance to NPHCDA carried out 

by a Ugandan based audit firm with 

branches in London and Abuja 

revealed variances between Bank 

Statement balances and balances in 

Annual Progress Report submitted 

by NPHCDA to GAVI. 

The report revealed there was 

non-adherence to procedures stipulated 

in Public Procurement Act, 

2007, in the procurement of goods, 

services and works valued at N4.9 

billion in NPHCDA. 



In Real Estate market, smaller is now... 


sion plans, seeking out strategically 

located residential buildings or 

vacant apartments in prime areas to 

be converted into short-let apartments 

to meet the flexible needs of 

people who require such accommodation,” 

explained Tayo Odunsi, 

CEO, Northcourt Real Estate. 

Besides security issues and the 

strong desire by young professionals 

who want to live in exclusive locations 

to have a feel of luxury living, 

Erejuwa Gbadebo, CEO, International 

Real Estate Partners (IREP), notes 

an upsurge in demand by corporates 

who would rather pay for short-let 

apartments for their expatriate staff, 

who may be in the country for short 

periods of time. 

In line with the increased demand, 

short-let apartments are 

now popular in places like Ikeja 

GRA, Victoria Island, Ikoyi, Osborne 

Foreshore, Lekki, Festac Town, all in 

Lagos. In Abuja, they could be found 

in such expensive locations as Maitama, 

Asokoro, Wuse, while in Port 

Harcourt they are found in Old GRA 

and Trans-Amadi. 

“These are locations where house 

prices are quite high and the young 

professionals who cannot afford 

such prices still want to have a feel of 

such locations go for short-let apartments,” 

explained Azubuike Unigwe, 

Managing Partner, Unigwe and Co, a 

firm of estate surveyors and valuers. 

Most expatriates, top executives 

and consultants to blue chip companies 

who wish to stay in town for 

a week or more, prefer these serviced 

apartments because of the comfortable 

ambience which most hotels 

lack. These apartments also offer 

some level of privacy which some 

hotel brands don’t give. 

Analysts point out that another 

reason for the growth of shot-let market 

is the flexibility enjoyed by guests 

when compared to hotel rooms, 

explaining that it accommodates client’s 

guests, relatives, friends which 

are not allowed in some hotel rooms. 

Another major reason is the 

affordability. BusinessDay checks 

reveal that short-let apartments are 

cheaper compared to hotel room 

rates. A two-bedroom serviced 

apartment in 1004 Estate in Victoria 

Island, Lagos costs N35,000 per night 

on short-let, while a standard hotel 

Miyetti Allah denies threatening to unseat... 


kola Saraki, Nigeria’s Senate 

president, by its state coordinator 

for Benue. 

In an interview on Tuesday, Garus 

Gololo, the Benue state coordinator 

of the association had warned the 

Senate president, Bukola Saraki, to 

resign or be forced to do so. 

In a statement signed by Othman 

Ngelzarma, the national secretary 

on Wednesday, the association said 

Gololo’s comments do not reflect the 

position of the association. 

The statement reads, “The attention 

of Miyetti Allah Cattle Breeders 

Association of Nigeria has been 

drawn to an interview granted by one 

Garus Gololo in Makurdi to Punch 

Newspaper titled ‘Resign or we will 

force you out’. Miyetti Allah to Saraki. 

This statement is unfortunate. 

“I will categorically state that Garos 

Gololo spoke in his personal capacity 

and has no mandate to speak on 

behalf of the association. Miyetti Allah 

is a non-partisan association with no 

interest in the political terrain and we 

couldn’t meddle into the affairs of 

political actors thereby compounding 

our already obvious challenges. I 

room costs an average of N60,000 per 

night within the same neighbourhood. 

A two-bedroom apartment 

at the estate sells for N45 million to 

N50 million. 

In Festac Town where UPDC offers 

serviced short-let apartments at 

its The Residences, a two-bedroom 

apartment sells for N65 million, 

but the short-let goes for N30,000 

to N40,000 per night. Golden Tulip 

Hotel, in the same ‘compound’ with 

The Residences charges between 

N50,000 and N60,000 per night. 

In Ikoyi, a two-bedroom apartment 

lets for average of N50,000 

per night, while at Parkview estate, 

Ikoyi it costs an average of N40,000 

for same size apartment with clients 

expected to pay a minimum of oneweek 

duration. This is a location 

where the minimum rent for a threebedroom 

apartment is between N20 

million and N25 million per annum. 

In the commercial segment of the 

market, developers are a lot more 

innovative and creative. This is one 

segment of the market where vacancy 

rate has gone up significantly 

because some corporate tenants 

have changed office location. Some 

that were in two to three floors have 

now scaled down to one floor because 

they have sent away a good 

number of their staff due to reduced 

business activities. 

For retail, some retailers have had to 

move out of the malls completely. Some 

landlords have reduced rents. There are 

cases where landlords have asked tenants 

to stop paying rents altogether, but 

to just pay the service charge to enable 

them maintain the mall. 

Gbenga Olaniyan, CEO, Estate 

Links, confirmed BusinessDay that 

some A-grade office buildings now 

offer smaller spaces like 200-500 

square metres where a minimum 

of 1000 square metres were on offer 

before now, stressing that this was 

the only way to attract more tenants 

to such buildings and to increase 

occupancy level. 

Tenants are also offered concessions 

in form of quarterly instead 

of yearly rents payment; reduced 

service charge, energy efficiency 

and reduced cost; and product 

differentiation aimed at attracting 

more tenants and increasing workers’ 

convenience and productivity 

in the building. 

therefore urge all and sundry to disregard 

this statement. This statement 

is not from MACBAN and should be 

disregarded in its entirety.” 

The People’s Democratic Party 

(PDP) meanwhile has given President 

Muhammadu Buhari 24 hours 

ultimatum to arrest the leader of the 

Miyetti Allah Cattle Breeders Association 

that allegedly threatened to 

force Senate President Bukola Saraki 

from office if he failed to resign. 

The Presidency and the All Progressives 

Congress (APC), are yet to 

respond to the controversy. 

The PDP, in a statement Wednesday 

by its National Publicity Secretary, Kola 

Ologbondiyan, said Gololo’s statement 

echoes threats by the APC and the 

Buhari Presidency to force Saraki out of 

office since his defection to PDP. 

“If anything, this unguarded 

statement by Miyetti Allah has exposed 

the synergy between the ruling 

party and some troublesome elements, 

who are being used to stoke 

division and create violent crisis that 

had resulted into daily bloodlettings 

in various parts of the country. 


www.businessdayonline.com

Politics 


Saraki’s impeachment may 

lead to casualties - Babatope 

INIOBONG IWOK 

Former Minister 

of Transportation, 

Ebenezer 

Babatope, has 

warned that those 

behind moves to impeach 

the Senate President, Bukola 

Saraki, would be consumed 

in the process, stressing that 

Nigerians had the constitutional 

right to choose the 

association they wish to 

belong. 

Sarak recently defected 

from the ruling All Progressives 

Congress (APC), on the 

platform of which he was 

elected, to the main opposition 

People’s Democratic 

Party (PDP), along with the 

Kwara State Governor Abdulfatah 

Ahmed, some federal 

lawmakers and several 

of his supporters. 

However, there has been 

clamour from the leadership 

of the APC for him to 

vacate his position after his 

defection. 

Recently, officials of the 

Doyin Okupe, a former 

aide of former 

Presidents 

Goodluck Jonathan 

and Olusegun Obasanjo, 

has said that Nigeria 

will make history as a nation 

if former Vice President 

Atiku Abubakar emerges as 

president in 2019. 

Abubakar, a presidential 

aspirant of the People’s Democratic 

Party (PDP) had, after 

consultations, officially declared 

last month for the 2019 

presidential election. He has 

also embarked on continued 

nationwide consultations 

with PDP stakeholders ahead 

of the party’s primary. 

Ebenezer Babatope 

2019: Nigeria will make history if Atiku 

emerges president – Doyin Okupe 

Okupe in a tweet from his 

personal Twitter handle @ 

doyinokupe late Tuesday 

evening, retracted earlier 

tweet attributed to him that 

generated backlash among 

Nigerians. 

He said that the post that 

was attributed to him did 

not originate from him and 

apologised to the former 

Vice President. 

“I did not originate d post 

saying if Atiku ruled, Nig will 

not recover in 10yrs, but if SP, 

it’ll bcom history. I changed 

bcos (sic) history to “will 

make History. Can never 

insult Atiku 4 any reason,” 

he said. 

& 

INIOBONG IWOK 

The Action Democratic 

Party (ADP) 

has said that incumbent 

President Muhamamdu 

Buhari, was not 

mentally sound to seek reelection 

in the 2019 general 

election. 

National Chairman of the 

party, Yusuf Sanni, stated this 

yesterday in an interview with 

BusinessDay, while reacting to 

media report on the 800 meters 

trekking of the President 

from the Eid praying ground to 

his private residence in Daura 

Katsina State on Tuesday, noting 

that the All Progressives 

Congress (APC) had taken 

Chima Anyaso with Seriki Danladi Yaro 

Policy 

2019: Buhari not fit to rule - ADP 

…Denies pact with APC 

House of Reps aspirant, Anyaso, preaches religious tolerance 

A 

House of Representatives 

aspirant 

in Abia State, 

Chima Desmond 

Anyaso, has called on Moslems 

to live by the teachings 

of Islam, urging all Nigerians 

also to eschew religious 

intolerance as the country 

prepares for the 2019 general 

election. 

In a statement yesterday, 

a copy of which was 

sent to BusinessDay, the 

politician and businessman, 

joined Moslems in the Eid 

Al-Adha Mubarak celebration 

Tuesday in Bende, Abia 

State, emphasised the need 

for peaceful cohabitation 

among Nigerians. 

Department of State Security 

Services (DSS) laid siege to 

the National Assembly complex, 

a move that was perceived 

to be part of the plot 

to forcefully effect a change 

in the leadership of the upper 

legislative chamber. 

But speaking in an interview 

with BusinessDay 

He reminded Muslims 

that the festival of Eid Adha 

demands total sacrifice and 

obedience to the will of God 

as demonstrated by the story 

of Ibrahim’s obedience when 

Allah asked him to sacrifice 

his son Isma’il in order to 

demonstrate his total submission 

to Him. 

“It brings great joy and 

I am delighted to join our 

Muslim brothers and sisters 

today in celebration of the 

holy festival of EID Al-Adha. 

I am humbled by the show 

of love, unity and faith. There 

is no doubt in my mind that 

we will continue to be united 

as a country regardless of 

religious or ethnic differences 

yesterday on the recent defections 

of politicians in the 

country, Babatope noted 

that democracy was in danger 

in the country if the 

citizenry could not freely 

associate and choose the 

association they wish to belong, 

stressing that the APC 

should not be angry with the 

and that we will be able to 

advance the course of peace 

in our communities and in 

our nation,” he said. 

The ceremony had in attendance 

prominent mem- 

current defections because 

the party benefited from the 

defection of many politicians 

from the PDP prior to 

the 2015 general election. 

“Let me tell you, the 

moves to impeach the Senate 

president would only 

end up blowing up those 

behind it. Defection is part 

of democracy and it would 

be in danger if Nigerians 

cannot freely choose who 

they want to associate with,” 

Babatope said. 

According to him, “We said 

it then that they would come 

back when they moved just 

before the 2015 elections and 

the APC benefited; so APC 

should not complain about 

the defections to the PD.” 

On the chances of the party 

in next month’s gubernatorial 

election in Osun State and 

the 2019 general election, the 

PDP chieftain said that the 

PDP was occupied with convincing 

Nigerians to vote for 

its candidate in the election, 

rather than engage in media 

propaganda with the APC. 

the country back into the dark 

era by putting physical fitness 

ahead other requirements for 

the position of the President in 

the country. 

“It is not about physical 

fitness, we are talking about 

mental capacity, which would 

move the country to the next 

level and the President does 

not have it. 

“If he likes let him trek from 

here to Abuja to Lagos that 

would not solve our problems. 

What we are saying is that he 

does not have the intelligent to 

move us forward; that is why 

we should not be talking about 

him coming back because 

the country has stagnated,” 

Sanni said. 

bers of the Muslim community 

and clerics in Abia state 

led by the Seriki Hausawa, 

Abia State, Seriki Alhaji Yaro 

Danladi who is the leader 

of the entire Muslims in the 

C002D5556 

He stressed that the PDP 

was positioned to win the 

2019 general election, saying 

that the party’s recent apology 

to the nation on errors 

it committed in the sixteen 

years it was in power did not 

mean it had admitted that it 

was responsible for the current 

problems bedevilling 

the country. 

“We are not concerned 

with the current media propaganda 

of the APC; what we 

are concerned with now is 

how to convince Nigerians 

to vote for the party; how we 

are going to sell ourselves to 

the electorate. How we are 

going to win Osun State and 

the centre government. 

“The PDP would win Osun 

State and that is what we are 

currently doing. Our recent 

apology to Nigerians by the 

national chairman does not 

mean we have admitted that 

we are the problem of the 

country; we only said we 

make mistakes and that we 

would not underate Nigerians 

again,” Babatope added. 

Speaking further, Sanni 

said that Nigerians were tired 

of the APC because it had 

performed woefully since it 

assumed power, while the 

People’s Democratic Party 

(PDP) which ruled the country 

for sixteen years had equally 

contributed to the current 

woes of the country. 

Speaking on the rumoured 

alliance between the ADP and 

the APC, he denied signing 

any accord to present a joint 

candidate with the ruling 

party for the 2019 general election, 

stressing that the party’s 

ideology was different from 

the APC’s. He further said that 

he could not rule out alliance 

with a progressive political 

state. In his remarks, the 

Seriki called on all Muslims to 

live according to the expectations 

of Islam and ensure that 

they contribute towards the 

development of the communities 

where they live. 

Anyaso, who is the leading 

aspirant for Bende Federal 

House of Representatives seat 

in 2019, expressed joy that he 

was well received by Muslim 

leaders and traditional rulers 

who acknowledged that 

he is the only politician from 

Bende, so far, to have devoted 

time to join them in celebration 

of Muslim festival. 

“While I feel delighted by 

this recognition, I am moved 

by the affection and love 

BUSINESS DAY 

JAMES KWEN, Abuja 

35 

2019: APC begins 

aggressive 

membership drive 

Ahead of the 2019 general 

election, the ruling 

All Progressives 

Congress (APC) 

has embarked on aggressive 

membership drive. 

This is as the National 

Working Committee of the 

party approved the immediate 

recommencement of the Continuous 

Nationwide Membership 

Registration exercise in 

all 36 states and the Federal 

Capital Territory. 

Yekini Nabena, APC National 

Publicity Secretary, in a 

statement on Wednesday said: 

“The decision follows calls 

from members of the public 

interested in joining our great 

party to support the Change 

Agenda of the President Muhammadu 

Buhari-led APC 

administration”. 

Nabena explained that “the 

exercise will include both 

fresh registrations and revalidation 

of existing membership 

for the purposes of issuance of 

the party’s permanent memberships 

cards”. 

He urged the party’s teeming 

supporters and members to 

take advantage of the exercise. 

party for the 2019 general 

election. 

“It is not about physical 

fitness, we are talking about 

mental capacity, that would 

move the country to the next 

level and the president does 

not have it. 

“The party is not in any accord 

with the APC; we would 

never go into accord with 

them; our ideology is different 

and we are working to reposition 

the country and offer 

ourselves as an alternative 

platform for the country. 

“Nigerians are tired of the 

APC; you would see that in the 

voting pattern next year. They 

and PDP put us in this mess,” 

Sanni added. 

shown by the Muslim community 

towards my ambition 

to represent Bende come 

2019. I encourage you all to 

go ahead to collect your PVCs 

here in Bende and endeavour 

to vote in Bende because I 

will ensure that your interests 

and welfare will be protected 

when I am elected,” he said. 

The aspirant was also 

honored by the Alayi Community 

Development Union, 

Women Wing at this year’s 

August Meeting where he 

promised to replicate his 

free school programme all 

over Bende. He was recognised 

for his contributions 

to humanitarian service and 

investment in education.


FMCGs manufacturers urged to recycle, 

save environment from plastic pollution 

CHUKA UROKO 

Kenneth Gbandi 

(l), chairman 

of Nigerians 

in Diaspora 

Organisation, 

Europe 

(NIDOE), 

presenting an 

award to Ekpo 

Nta, former 

chairman of 

Independent 

Corrupt 

Practices and 

other Related 

Offences 

Commission 

(ICPC), at the 

inauguration of 

NIDOE liaison 

office and 

induction of 

distinguished 

Nigerians into 

the Global 

Diaspora Hall of 

Fame, in Abuja 

NAN. 

rian Conservation Foundation 

(NCF), wants all hands 

on deck to fight this menace. 

Both local and multinational 

companies, she said, 

should join the campaign 

against plastic pollution by 

attaching incentives to waste 

collection and recycling to create 

more jobs and reduce plastic 

waste in the environment. 

NCF, which is Nigeria’s 

foremost conservationist, 

is carrying out an advocacy 

programme on proper waste 

collection, recycling and 

management in 17 communities 

in Eti-Osa Local Government 

Area of Lagos and 

the aim of the campaign is 

to educate residents on the 

dangers of inappropriate 

waste disposal, and also train 

them in waste-to-wealth and 

recycling initiatives. 

The foundation introduced 

recycling points to buy 

the sorted wastes from the 

residents and, according to 

Balogun, most participants 

are earning good money 

from the programme. 

“We introduced a pointbased 

collection with centres 

within the communities and 

participants ware paid after 

reaching a particular level. 

Some of the communities 

just generate the waste; they 

do not know that they can 

generate income from it. 

“One thing we have identified 

from the exercise is that 

most of the waste is plastic 

and it is not biodegradable, 

meaning that it does not break 

down; so, most of it goes back 

into the environment or the 

water bodies,” she said. 

Plastic pollution was 

the focus of the 2018 World 

Environment Day and this 

was because it is a global 

concern. “We call on other 

corporate organisations, especially 

the beverage companies, 

to have initiatives like 

this, where they can develop 

Female journalist install as president, RC Awka metropolis 

EMMANUEL NDUKUBA, Awka 

Anambra State-based 

female journalist, 

Rotarian Joy 

Mbachi, has been 

handed over the gavel as the 

eighth president, Rotary Club 

International (RC Awka Metropolis) 

District 9142. 

Mbachi, who works with 

News Agency of Nigeria, is the 

first female president of RC 

Awka metropolis, and would 

be at the helm of affairs of the 

club for one year. 

The new president, in her 

acceptance speech, pledged 

to remain a source of inspiration 

to the club and humanity 

throughout her one-year service 

year whose theme was 

incidentally, ‘Be the Inspiration.’ 

Mbachi, while vowing to 

champion the course of children 

and women, said, “We 

will visit the motherless babies 

home to give the motherless 

hopes. We will go to 

streets to preach sanity and 

bring back our young girls 

straying about. 

“We will sensitise the pupils 

and the students across 

schools on basic personal and 

environmental hygiene. We 

will also carry on community 

based sensitisation campaign 

on cervical cancer, free medical 

outreach and others.” 

She further entreats women 

to join the rotary club international, 

assuring that “It 

is a good platform for every 

woman who wishes to impact 

lives positively. If you join it 

and duly follow its four-way 

test, it will make you greater 

person and a home builder.” 

Speaking also, the Rotary 

assistant governor of Zone 9, 

Sabs Anaekwe, advised the 

club on teamwork, which 

he claimed would help to 

improve on charity and humanitarian 

services rotary 

club was known for. 

A visiting Rotarian president 

of Awka Smithland, 

Tochi Omalu, enjoined the 

Rotarians of Awka Metropolis 

to join hand with the new 

president in achieving the 

goals of rotary this year. 

According to Omalu, 

rotary touches all aspect 

of lives ranging from fight 

against polio, illiteracy, to 

promoting healthy living 

and safe environment and 

community development. 

Fast moving consumer 

goods (FM- 

CGs) manufacturers 

have been 

urged to save the 

environment from plastic 

pollution by recycling their 

by-products, which, according 

to environmentalists, is 

not biodegradable and so, 

have the capacity to pollute 

the environment. 

In most Nigerian cities 

today, plastic materials and 

water sachets are the greatest 

environmental pollutants as 

they are everywhere and anywhere 

as disused water containers, 

take-away food packs, 

buckets, plates, spoons, soap 

dishes, chairs, etc. 

Conservationists have 

been strident in their campaign 

against plastic waste. 

Abidemi Balogun, senior 

consultant officer, environmental 

education, at Nigeprogrammes 

to buy off plastics 

from communities thereby 

engaging them. 

“It will serve as a source 

of employment to the communities 

because, if some 

people know that they can 

get money from collecting 

plastics, they will want to go 

into it as a full time job because 

plastic is everywhere,” 

she stated. She stated further 

that the foundation had also 

started discussing with clubs 

in schools across the council 

area on the need for recycling 

and keeping the environment 

clean. 

“The students can also use 

the waste materials to make 

things they can use in the 

home. We want continuity of 

the initiative; that is why we 

are going beyond the communities 

to working with the 

schools because even when 

the children graduate, other 

children are there to continue 

the activity,” she said. 

The Edo State governor, 

Godwin Obaseki, 

has assured the 

people of Isi-North 

in Uhunmwode Local Government 

Area of the state that 

the project executed by Central 

Bank of Nigeria (CBN) 

located in the area will be put 

to good use, as the state is in 

dire need of such structures 

for building local capacity to 

solve problems. 

Governor Obaseki gave the 

assurance during an on-thespot 

assessment of the completed 

CBN facilities, which 

include blocks of furnished 

classrooms and dormitory 

in Ward Seven, Isi-North, in 

Uhunmwode local council. 

Obaseki emphasised that 

his administration would 

conceptualise plans on how 

SEYI JOHN SALAU 

Lagos State commissioner 

for information 

and strategy, Kehinde 

Bamigbetan, 

has called on the Independent 

National Electoral Commission 

(INEC) to end the 

long queues of residents besieging 

registration centres 

across the state by providing 

more registration machines 

and personnel to meet voters’ 

rush for Permanent Voters 

Card (PVCs). 

Addressing members of 

a political group, ‘The Mandate 

Movement’ at a special 

meeting to celebrate Sallah 

at his residence in Ejigbo. 

Bamigbetan said the hundreds 

of enthusiastic citizens 

mobilised by the group to 

register were discouraged by 

the hardship encountered at 

the centres. 

According to Bamigbetan, 

the hardship was unnecessary 

and avoidable as more 

machines and personnel 

could be deployed to meet 

the surge that the advocacy 

Obaseki pledges more support for victims of terrorism 

Governor Godwin 

Obaseki of Edo 

State has reiterated 

his administration’s 

commitment to provide 

more support for victims 

of terrorism who reside in Internally 

Displaced Persons’ 

(IDPs) camps in the state. 

Obaseki made the pledge 

in commemoration of the 

International Day of Remembrance 

of and Tribute to the 

Victims of Terrorism, marked 

every August 21, by the United 

Nations (UN) and member 

states across the globe. 

He said, “While the Federal 

Government continues to 

intensify effort to subdue terrorists 

in the North East and 

other parts of Nigeria, Edo 

State will not relent in ensuring 

C002D5556 

Obaseki inspects CBN’s school project in Isi, 

assures host community of judicious use 

Lagos urges INEC to supply more 

machines to meet voters’ rush for PVCs 

that Internally Displaced Persons 

(IDPs) residing in camps 

in the state are provided with 

adequate structures to make 

their stay comfortable. 

“The IDPs would be further 

assisted in recovering from the 

trauma of terrorism, as it will 

facilitate their rehabilitation 

and integration into society.” 

The governor said more 

could still be achieved if wellmeaning, 

public-spirited individuals, 

Civil Society Organisations 

(CSO), international 

donor agencies, among others, 

work closely with governments 

in scaling up assistance 

to victims of terrorism. 

He noted that the state government 

would continue in 

coordinating efforts to assist 

IDPs in the state. 

BUSINESS DAY 

A1 

NEWS 

best to utilise the facilities, 

adding that his administration 

will embark on the reconstruction 

of Isi Community 

Road during the dry season. 

He noted: “I was informed 

of the facilities lying waste here 

and decided to come and see 

for myself. I want to assure and 

appeal to you all to give me 

three months to come out with 

a master plan on how best to 

utilise these facilities. During 

the dry season, I will make 

sure that the road linking this 

community is rehabilitated.” 

The governor, who adduced 

the improper handing 

over of the project by the CBN 

to the state as the reason for its 

non-capture in his administration’s 

plans, noted that the 

project would be put to good 

use. 

for registration had created. 

“If INEC lacks the funds 

to purchase more machines, 

it should seek aid from state 

and federal agencies which 

appreciate the importance of 

this civic responsibility. 

“The members of the National 

Youth Service Corps 

(NYSC) can be mobilized as 

ad-hoc staff. I am appealing 

to INEC to think outside the 

box. A situation in which two 

machines are serving thousands 

of willing registrants in 

Ejigbo is certainly not advisable,” 

he said. 

He also called on the 

INEC to make use of the over 

4,000 community development 

associations in Lagos 

State to distribute the millions 

of uncollected PVCs in 

its possession. 

“Our CDAs are legally registered 

entities with authority 

over specific number of 

streets and households. They 

can act as agents of INEC in 

distributing the cards to the 

owners. The current system 

of waiting for them to come is 

not delivering results.” 

...urges CSOs, donor agencies, others to complement govt.’s role 

According to the UN, 

“While more countries are affected 

by terrorism today, the 

number of victims has largely 

been concentrated in a small 

number of member states. 

In 2017 alone, nearly threequarters 

of all deaths caused 

by terrorism were in just five 

countries: Afghanistan, Iraq, 

Nigeria, Somalia and Syria. 

“Few members states have 

the resources or the capacity to 

fulfil the medium and long-term 

needs required for victims to fully 

recover, rehabilitate and integrate 

back into society. Victims 

can only recover and cope with 

their trauma through long-term 

multi-dimensional support, including 

physical, psychological, 

social and financial, in order to 

heal and live with dignity.”

A2 

BUSINESS DAY 

C002D5556 

Thursday 23 August 2018

BUSINESS DAY 


FT FINANCIAL TIMES 

C002D5556 

A3 

World Business Newspaper 

Facebook removes fake accounts linked to Iran and Russia 

Social network finds first evidence of Tehran-backed campaigns targeting users in the US and UK 

Hannah Kuchler 

Facebook has for the first time 

discovered disinformation 

campaigns linked to Iran 

aimed at targeting misleading political 

content in the US and UK, as 

well as more fake Russian accounts. 

The world’s largest social network 

said on Tuesday that it had 

deleted 652 pages, linked to three 

Iranian and one Russian campaign, 

Nicaragua: Daniel 

Ortega’s last stand? 

Page A6 

Michael Cohen pleads guilty and 

implicates Donald Trump 

Ex-lawyer admits violating campaign finance laws 

as former aide Manafort found guilty of fraud 

Demetri Sevastopulo, Courtney Weaver and 

Lindsay ForTADo 

Donald Trump is facing 

the most serious legal 

crisis of his presidency 

after his long-time lawyer 

pleaded guilty to arranging 

payments “at the direction” 

of his former boss during the 2016 

campaign to silence two women 

who alleged they had affairs with 

Mr Trump. 

Michael Cohen, a lawyer who 

once said he would “take a bullet” 

for the president, pleaded guilty to 

violating campaign finance laws by 

arranging payments on behalf of Mr 

Trump to Stormy Daniels, a porn 

star, and Karen McDougal, a former 

Playboy model who sold her story 

to the National Enquirer, a tabloid 

newspaper. 

The development in federal court 

in New York came on the same afternoon 

as a Virginia jury convicted 

Paul Manafort, Mr Trump’s former 

campaign manager, of tax evasion 

and bank fraud. Mr Manafort was 

convicted on eight counts, the same 

number of charges to which Mr 

Cohen pleaded guilty, but the judge 

declared a mistrial on 10 other counts 

after the jury was unable to reach a 

unanimous verdict. 

While there has been intense 

focus on the Manafort trial because 

the charges were brought by Robert 

Mueller, the special counsel investigating 

Russian meddling in the 2016 

presidential campaign, the Cohen 

plea was the first time that Mr Trump 

had been accused of wrongdoing by 

a member of his inner circle. 

Lanny Davis, a lawyer representing 

Mr Cohen, said his client had opted 

“to put his family and country first and 

tell the truth about Donald Trump”. 

“Today, he stood up and testified 

under oath that Donald Trump 

directed him to commit a crime by 

making payments to two women for 

the principal purpose of influencing 

an election,” Mr Davis said. “If those 

payments were a crime for Michael 

Cohen, then why wouldn’t they be a 

crime for Donald Trump?” 

As Mr Cohen left the Manhattan 

court where his plea was entered, he 

was met with shouts of “Lock him 

up” — an ironic play on the “Lock her 

ing and the strengthening dollar, 

with thin liquidity exacerbating 

the price moves. 

“We had suspected that net 

foreign selling of Italian debt 

securities had continued into 

June, but the June figure was still 

significantly more than we had 

expected,” said David Owen, chief 

European economist at Jefferies. 

Italian banks were, to a large 

extent, on the other side of the 

deal: in the second quarter of 

2018, domestic financial institutions 

increased their net holdings 

of the government’s debt by more 

than €40bn, the largest amount 

since the height of the eurozone 

debt crisis. 

Investors are sharply focused 

on the economic and fiscal outlook 

for the eurozone’s third-largest 

economy, and the coalition’s 

debut budget, a draft of which is 

expected to be published by mid- 

October. The new government’s 

inclination to step up public 

spending could threaten to bust 

through Italy’s fiscal targets. 

“Italy’s [economic] fundaup” 

chants Trump supporters levelled 

at Hillary Clinton in 2016. It was a surreal 

moment for the former Trump 

confidante, who has described himself 

as a “pit bull” and was known to 

some friends as “Fido” because of his 

aggressive defence of the president. 

His sentencing has been set for 

December 12 under a plea agreement 

with prosecutors, which calls 

for a sentence of between 46 and 

63 months in prison. Bail was set at 

$500,000. 

On Wednesday morning, Mr 

Trump wrote on Twitter: “If anyone 

is looking for a good lawyer, I would 

strongly suggest that you don’t retain 

the services of Michael Cohen!” 

He also said he felt “very badly” for 

Manfort and his family, adding: 

“‘Justice’ took a 12 year old tax case, 

among other things, applied tremendous 

pressure on him and, unlike 

Michael Cohen, he refused to ‘break’ 

— make up stories in order to get a 

‘deal.’ Such respect for a brave man!” 

Mr Trump has denied that he had 

affairs with the women. He has also 

denied knowing about the $130,000 

payment Mr Cohen made to Ms 

Daniels, which was the basis for one 

of the eight charges. His claim has 

been undermined by Rudy Giuliani, 

the former New York mayor serving 

as a lawyer for the president, who has 

said Mr Trump reimbursed Mr Cohen 

for the payment to Ms Daniels, whose 

legal name is Stephanie Clifford. 

Former Trump lawyer Michael 

Cohen pleads guilty 

David Gergen, a former adviser to 

four presidents, said the Cohen plea 

was “more dangerous” for Mr Trump 

because “it brings him into the net 

more fully”. 

Mr Gergen said the day reminded 

him of the time when John Dean 

— the Nixon administration White 

House counsel who secretly cooperated 

with Watergate investigators 

— told Richard Nixon there was 

a “cancer” on his presidency. 

“With this double blow, it looks 

much like a cancer on this presidency,” 

Mr Gergen said. “Trump can 

still manage it, but if it metastasises, he 

is in deep trouble.” He added that the 

Cohen plea would increase pressure 

on the president to agree to sit down 

for an interview with Mr Mueller and 

his investigators. 

that had been followed by hundreds 

of thousands of accounts. The owners 

of some pages linked to Iranian 

organisations had also bought advertising, 

despite US sanctions on 

Tehran that prevented Facebook 

from selling to accounts held in the 

country. Some accounts were five 

to seven years old. 

This is the first announcement 

Continues on page A4 

Angola asks IMF for talks on bailout in return for reform 

Sub-Saharan Africa’s third-biggest economy plagued by forex shortages and bad loans 

Joseph CoTTerill 

Angola has asked the IMF for 

talks on a bailout in return for 

more structural reform in Africa’s 

second-biggest crude exporter. 

The IMF confirmed on Tuesday 

that Angola’s government under 

President João Lourenço asked “to 

initiate discussions on an economic 

programme” supported by bailout 

loans. 

The fund “stands ready to help 

the authorities address Angola’s 

economic challenges by supporting 

their economic policies and 

reforms”, it added. 

Mr Lourenço’s ruling MPLA has 

launched a turnround plan for the 

economy, which was badly hit by 

the fall in oil prices after 2014. It has 

included devaluing the currency by 

over half against the US dollar and 

promises by Mr Lourenço to root out 

Mortgage bond 

investors thaw on 

retail sector 

Page A5 

Michael Cohen leaves court in New York on Tuesday. His sentencing has been set for December 12 © AP 

Foreign investors step up efforts to shed Italian bonds 

Overseas holdings of government debt fall further in June as political concerns mount 

KATe Allen 

The exodus of foreign investors 

from Italy’s bond market 

is gathering pace, with net 

sales of the country’s sovereign 

debt climbing to a record level for 

the second month in a row. 

Holdings of Italian debt by 

foreign investors declined by a 

net €38bn in June, according to 

recently released figures from the 

European Central Bank, eclipsing 

the previous month’s net fall of 

€34bn, which was itself a record. 

Italian bond yields remain elevated, 

with 10-year debt lingering 

near the peak it hit in May when 

the country’s two populist Eurosceptic 

political parties formed a 

coalition government. 

Investors view the Italian debt 

market as a key barometer of 

risk aversion; with the government 

currently negotiating its 

debut budget, Italian bonds are 

expected to remain volatile. They 

are one of the more sensitive asset 

classes to the US Federal Reserve’s 

monetary policy tighten- 

state corruption. 

Angola’s economy, the third biggest 

in sub-Saharan Africa, remains 

plagued by foreign currency shortages 

and rising bad loans in banks. 

Mr Lourenço became president 

in elections last year after replacing 

José Eduardo dos Santos, who 

ruled Angola with an iron grip 

for nearly four decades after independence 

in 1975 and through 

a long civil war that only ended 

in 2002. His family was accused 

of using state posts for private 

benefit, which claims they denied. 

Soon after taking power Mr 

Lourenço fired Isabel dos Santos, 

the former president’s daughter, 

as head of the state oil group. 

He also removed Mr dos Santos’s 

son as the sovereign wealth fund’s 

chief. The central bank’s governor 

and holders of other top posts were 

mentals are actually OK,” said 

Nick Gartside, international fixed 

income chief investment officer 

at JPMorgan Asset Management. 

“The budget flashpoint is 

what markets will focus on and 

when we are through that things 

should settle down a bit. A fair 

bit of volatility is now priced in.” 

Mauro Vittorangeli, chief investment 

officer for conviction 

fixed income at Allianz Global 

Investors, said Italian yields had 

“settled into” a “new range”. 

If the volatility of Italian 

yields steadies once the budget 

discussions are completed, then 

Italian retail investors and the 

nation’s banks will buy back into 

the market, which could help 

prices to bounce back somewhat, 

he said. 

Beyond that, he picked out two 

key factors that markets would be 

watching: the eurozone’s growth 

outlook — because “Italian debt 

needs positive nominal growth” 

to be sustainable — and the continued 

presence in government of 

Giovanni Tria as finance minister. 

replaced at the same time. 

Mr dos Santos is expected to 

relinquish the MPLA’s leadership to 

Mr Lourenço during a ruling party 

meeting next month. 

Angola first approached the IMF 

last year, seeking technical assistance 

with reform. It last borrowed 

from the fund in 2009-12. 

The country is also grappling 

with a decline in production from 

its ageing offshore oilfields. Last 

month, output in the Opec member 

state dropped to its lowest level 

since 2007. 

Sonangol, the state oil group, has 

pledged to invest in new fields while 

rebuilding relations with oil majors 

to which it built up arrears. 

The IMF said that the loans could 

come from its extended fund facility. 

This offers longer repayments linked 

to deeper structural reform than the 

norm for bailouts.


A4 BUSINESS DAY 

C002D5556 

FT 

Facebook removes 

fake accounts... 

Continued from page A3 

of what Facebook calls “inauthentic 

behaviour” traced to Iran. 

The news comes a day after 

Microsoft said it had uncovered 

an effort by hackers with links to 

the Kremlin to target Republicanleaning 

political groups, triggering 

alarm on Capitol Hill. 

Mark Zuckerberg, Facebook’s 

founder and chief executive, said 

the social network was facing “sophisticated” 

and “well funded” 

adversaries. He added that the 

company’s investment in fighting 

such manipulation was beginning 

to pay off. 

“The shift we’ve made from reactive 

to proactive detection will make 

Facebook safer for everyone over 

time,” he said. Mr Zuckerberg added 

that several similar investigations 

were under way. 

Facebook also said on Tuesday 

that it would now rate users on 

their trustworthiness, in a bid to 

halt the spread of misinformation 

by enlisting the help of members of 

the network. 

The announcement came three 

weeks after Facebook said it had 

removed the first co-ordinated 

disinformation campaign targeting 

the US midterm congressional 

elections in November, which some 

American politicians identified as 

originating in Russia. The company 

did not specify there were any link 

with the latest fake accounts and the 

November vote. 

In the first evidence of interference 

backed by Iran, Facebook said 

one campaign, which had created 

pages in 2013 primarily to propagate 

posts about the Middle East, had 

switched their focus to US and UK 

politics last year. Facebook said it 

was still investigating the content, 

but had discovered no “significant” 

advertising by the pages ahead of 

the Brexit referendum in 2016. 

Senator Mark Warner, vicechairman 

of the Senate intelligence 

committee, said he had been stating 

for months that social media 

manipulation was not restricted to 

a single troll farm in St Petersburg, 

referring to campaigns by the Internet 

Research Agency. 

“We also learned today that 

the Iranians are now following the 

Kremlin’s playbook from 2016,” he 

said. “While I’m encouraged to see 

Facebook taking steps to rid their 

platforms of these bad actors, there’s 

clearly more work to be done.” 

Facebook said it had briefed the 

US Treasury and the state department 

because the Iranian accounts 

had been able to buy advertising. 

US sanctions allow companies to 

provide internet services to users 

in Iran for personal communications, 

but they are required to screen 

advertisers to ensure they are not in 

the country. 

Twitter also said on Tuesday 

that it had removed 284 accounts 

that it believed had originated in 

Iran for engaging in “co-ordinated 

manipulation”. 

Facebook was alerted to suspicious 

activity by a set of pages under 

the name of Liberty Front Press by 

FireEye, a cyber security company, 

and then identified additional accounts 

and pages. 

NATIONAL NEWS 

Malawi’s President Peter Mutharika (centre) says politics is at the root of his deputy’s allegations of corruption against him © AFP 

Malawi president dismisses graft allegations 

Mutharika’s dispute with deputy threatens resumption of aid donations 

Joseph CoTTerill 

Malawi’s President Peter 

Mutharika has described 

allegations of corruption 

levelled against him by his own 

deputy as “complete nonsense”, 

fuelling a stand-off that threatens 

to further delay the return of foreign 

aid to the southern African 

nation. 

Saulos Chilima, the vice-president, 

has accused his rival of 

high-level graft, including over a 

$4m contract to provide rations to 

Malawi’s police force. Mr Chilima, 

who left the president’s ruling 

party in June, has called the scandal 

over the police contract “the 

tip of the iceberg”. 

The acrimonious split at the top 

of the government — with Mr Chilima 

planning to run against Mr 

Mutharika in next year’s elections 

— comes as Malawi tries to recover 

EU vows to get tough on UK’s market access after Brexit 

Plan to step up oversight of ‘equivalence’ rules that finance sector will rely on 

Jim Brunsden 

The EU’s financial services chief 

has warned that Brussels will 

be strict in policing the Britain’s 

rights of access to the bloc’s 

market after Brexit. 

Valdis Dombrovskis said he 

welcomed UK proposals to build 

market access for the City of London 

around EU rules, known as “equivalence”. 

But he said market access 

could never be taken for granted, 

with Brussels determined to toughen 

its assessments of whether countries 

meet the conditions. 

The equivalence rules make it 

easier for non-EU financial institutions 

to operate in the single market 

if the European Commission 

decides that their home country’s 

financial regulations are as tough 

as the EU’s own. 

Mr Dombrovskis said Brussels 

was not offering any kind of “super 

equivalence” to the UK, and that 

assessments of whether Britain 

qualified would require individual 

assessments “sector by sector and 

legislation by legislation”. 

He also said Brussels was pressing 

ahead with measures to reinforce 

oversight of equivalence 

access, with stronger requirements 

for countries’ financial supervisors 

to share information with the EU 

and more monitoring of whether 

from the systemic looting of state 

coffers under former president 

Joyce Banda. The $50m Cashgate 

scandal in 2013-14, when a third 

of the government’s budget was 

stolen, led international donors 

who funded nearly half of Malawi’s 

budget to withdraw funding, leaving 

the economy foundering. 

Speaking to the Financial Times 

from his presidential palace in the 

capital Lilongwe, Mr Mutharika 

said politics was at the root of Mr 

Chilima’s claims. 

“He has simply decided he 

wants to be president,” said the 

79-year-old former law professor. 

“It is complete nonsense — it is 

all perception. Corruption is not 

greater now than it was before [the 

Cashgate revelations].” 

He continued: “We are doing 

more development than at any 

time in the country’s history. If 

there was so much corruption 

there would be no money to do 

jurisdictions continued to meet the 

criteria. 

“We see that there is a need to 

strengthen systemic monitoring of 

continued compliance,” said Mr 

Dombrovskis. “So this is one area 

where we will come with a more 

systematic approach.” 

Many EU officials privately assume 

that the UK — barring a sea 

change in its regulatory and supervisory 

approach — would have little 

difficulty in securing equivalence 

rights after Brexit, given that it already 

applies EU rules. 

But Mr Dombrovskis’ remarks 

are a sign of Brussels’ determination 

to prevent regulatory undercutting 

that could hand City firms an advantage 

over EU competitors. 

The British government, in a 

white paper on Brexit published 

in July, said it should benefit from 

a full set of equivalence rights after 

the end of its post-Brexit transition 

period in 2020. Britain also called 

for equivalence to be expanded 

to “encompass a broader range of 

cross-border activities”. 

Mr Dombrovskis said Brussels 

was open to discussion of adding 

more equivalence possibilities 

into EU law, noting that national 

governments were negotiating draft 

legislation that would clarify access 

rights for non-EU brokerages and 

other investment firms. 

what we are doing.” 

However, Mr Chilima, a 

45-year-old former telecoms chief 

executive, says corruption has 

worsened since Cashgate, echoing 

US President Donald Trump with 

calls to “drain the swamp”. 

Civil society groups have also 

accused Mr Mutharika of corruption 

after money linked to the 

$4m police contacts found its way 

into bank accounts of the ruling 

party. Malawi’s main opposition 

party has called for the president 

to resign over a scandal that has 

provoked popular anger. 

“Corruption is still going 

. . . They are taking from our 

pockets,” said Niziya Nyasula, 43, 

a trader in Lilongwe. 

Mr Mutharika insisted that 

about $200,000 received as a political 

donation from the contractor 

was returned as soon as the 

party discovered possible links to 

corruption. 

“We are, if you want, at a relatively 

early stage, because the UK 

white paper is actually the first time 

the UK clearly acknowledges that 

it is willing to build on this system 

of enhanced equivalence,” he said. 

“We can now get into more detail 

and discuss what exactly that 

means, what areas are covered, are 

there some important areas missing 

and so on.” 

The UK government, in slides 

published this week, said its proposals 

would allow each side to “retain 

autonomous judgment about access 

to their market” while also 

providing certainty and stability to 

businesses. 

The plans include a “bilateral 

agreement” that would require 

each side to consult the other before 

withdrawing access and provide a 

safeguard to make sure that “existing 

contracts can be fulfilled even if 

access is withdrawn”. 

Mr Dombrovskis said it was positive 

that Britain had embraced a 

“more realistic way forward” compared 

with earlier plans to bypass 

equivalence by securing broader, permanent 

access rights — an idea Brussels 

has comprehensively rejected. 

He also said that while equivalence 

was in the EU’s gift, Britain 

should not underestimate its stability. 

The EU has never reversed an 

access decision. 

Mortgage bond investors 

thaw on retail sector 

More retail properties are being securitised 

and a ‘big short’ trade has reversed 

Joe Rennison 

Commercial mortgages on 

US retail properties are 

making up an increasing 

percentage of the loans that are 

bundled together in bonds for sale 

to investors, reflecting a thawing 

of sentiment towards the sector. 

The percentage of retail mortgages 

in new “conduit” commercial 

mortgage-backed securities 

(CMBS), where multiple loans are 

combined for sale, has risen to 32 

per cent since the start of July, after 

almost two years of weak interest 

among investors. 

The figure so far this quarter 

compares with 24 per cent in the 

second quarter and a low of 22 per 

cent in the first, and with 24 per 

cent for 2017 as a whole, according 

to data from S&P Global. 

Investors have worried about 

the ability of shopping mall owners 

to make mortgage payments 

and repay loans in an age where 

ecommerce is taking a toll on traditional 

retailers. Many brick-andmortar 

retail chains have pulled 

out of second-tier malls as they 

cut store numbers and lay off staff. 

But 2018 has brought improved 

results for some companies that 

have been able to adapt. In the 

equity market, the S&P 500 department 

stores sector has risen more 

than 40 per cent in 2018, and the 

large chains Macy’s and Kohl’s are 

both up over 45 per cent. 

The better performance has 

helped eased concerns among 

CMBS investors about exposure to 

retail loans, said Tracy Chen, head 

of structured credit at Brandywine 

Global Investment Management. 

“I think it shows investors have 

changed their view on the retail sector,” 

she said. “Last year, there was total 

panic and everyone tried to avoid retail, 

but this year things are different.” 

The CMBS market has been an 

area of intense trading for investors 

placing bets on the future of 

retail. 

The so-called CMBX 6, a derivatives 

index that tracks CMBS 

and was originated in 2012, which 

has a particularly large exposure to 

retail properties, was a particular 

favourite of short-sellers. After 

falling sharply in 2017, it is up 3 

per cent this year. 

The newly issued CMBS appear 

to include a narrower range of 

loans from the retail sector, excluding 

many of the regional malls most 

reliant on big-name “anchor” tenants 

to draw shoppers and focusing 

instead on top-tier properties. 

“Not all retail is bad,” said Ms 

Chen. 

Chris Acito, chief executive of 

Gapstow Capital Partners, said: 

“We went though a period where 

all retail was bad, but people have 

spent time studying the sector 

and developed a more nuanced 

view about which properties to 

be worried about. I think a more 

considered view of retail has really 

developed.” 

Other investors agree but also 

point out that the rise in retail 

loans being securitised comes at 

a time when interest rates remain 

at historic lows, meaning investors 

are willing to take on more risk for 

the sake of a higher yield.


@ FINANCIAL TIMES LIMITED 

Mortgage bond investors 

thaw on retail sector 

More retail properties are being securitised and a ‘big short’ trade has reversed 

Joe Rennison 

Commercial mortgages on 

US retail properties are 

making up an increasing 

percentage of the loans that 

are bundled together in bonds 

for sale to investors, reflecting 

a thawing of sentiment towards 

the sector. 

The percentage of retail mortgages 

in new “conduit” commercial 

mortgage-backed securities 

(CMBS), where multiple loans 

are combined for sale, has risen to 

32 per cent since the start of July, 

after almost two years of weak 

interest among investors. 

The figure so far this quarter 

compares with 24 per cent in the 

second quarter and a low of 22 

per cent in the first, and with 24 

per cent for 2017 as a whole, according 

to data from S&P Global. 

Investors have worried about 

the ability of shopping mall owners 

to make mortgage payments 

and repay loans in an age where 

ecommerce is taking a toll on 

traditional retailers. Many brickand-mortar 

retail chains have 

pulled out of second-tier malls 

as they cut store numbers and 

lay off staff. 

But 2018 has brought improved 

results for some companies 

that have been able to adapt. 

In the equity market, the S&P 500 

department stores sector has 

risen more than 40 per cent in 

2018, and the large chains Macy’s 

and Kohl’s are both up over 45 

per cent. 

The better performance has 

helped eased concerns among 

CMBS investors about exposure 

to retail loans, said Tracy 

Chen, head of structured credit 

at Brandywine Global Investment 

Management. 

“I think it shows investors have 

changed their view on the retail 

sector,” she said. “Last year, there 

Wall Street’s bull market 

becomes the longest in US 

postwar history today, but 

there were few signs of exuberance 

in morning trade on Wednesday as 

stocks struggled for direction. 

Having hit a record intraday high 

on Tuesday, but failing to notch a 

new closing high, the S&P 500 overcame 

weakness early in the session 

to break into positive territory by 

mid-morning. 

Still, the benchmark’s bull market, 

which began in 2009, has now 

surpassed the tech boom and bubble 

of the 1990s to be Wall Street’s 

longest since the second world war. 

The S&P 500 was up 0.1 per 

cent, and sitting 7.9 points shy of its 

January 26 record closing high. The 

benchmark rose as high as 2,873.23 

during intraday trade on Tuesday, a 

new record. 

Energy, up 1.2 per cent, technology, 

up 0.5 per cent, and consumer 

FINANCIAL TIMES 

C002D5556 


was total panic and everyone 

tried to avoid retail, but this year 

things are different.” 

The CMBS market has been an 

area of intense trading for investors 

placing bets on the future 

of retail. 

The so-called CMBX 6, a derivatives 

index that tracks CMBS 

and was originated in 2012, which 

has a particularly large exposure 

to retail properties, was a particular 

favourite of short-sellers. After 

falling sharply in 2017, it is up 3 

per cent this year. 

The newly issued CMBS appear 

to include a narrower range 

of loans from the retail sector, 

excluding many of the regional 

malls most reliant on big-name 

“anchor” tenants to draw shoppers 

and focusing instead on 

top-tier properties. 

“Not all retail is bad,” said Ms 

Chen. 

Chris Acito, chief executive of 

Gapstow Capital Partners, said: 

“We went though a period where 

all retail was bad, but people have 

spent time studying the sector 

and developed a more nuanced 

view about which properties to 

be worried about. I think a more 

considered view of retail has really 

developed.” 

Other investors agree but also 

point out that the rise in retail 

loans being securitised comes at 

a time when interest rates remain 

at historic lows, meaning investors 

are willing to take on more 

risk for the sake of a higher yield. 

Neil Aggarwal, senior portfolio 

manager at Semper Capital Management, 

sounded a note of caution. 

“More risky loans are being 

originated and securitised,” he 

said. “You are seeing that the underwriting 

is deteriorating. Issuers 

and investors have a higher appetite 

for more risk in securitisation 

because it is one of the few areas 

they can create additional yield.” 

Wall Street reaches bull market milestone 

New peak still up for grabs 

Peter Wells 

cyclicals, up 0.3 per cent, were the 

S&P 500’s best sectors today and the 

only ones in the black. Telecommunications, 

utilities and industrials 

were worst off, all down by more 

than half of 1 per cent or more. 

The Dow Jones Industrial Average 

was down 0.1 per cent and the 

Nasdaq Composite gained about 

0.33 per cent. The Russell 2000, 

which tracks US small-caps, closed 

at a record on Tuesday and was up 

0.1 per cent this morning. 

The US dollar was down, its recent 

slide exacerbated by comments 

from President Donald Trump earlier 

this week criticising the Federal 

Reserve for its decision this year to 

raise interest rates. 

The DXY index, which tracks the 

buck against a weighted basket of 

global peers, was down 0.2 per cent 

at 95.103 and eyeing its sixth straight 

session of declines. 

Government bonds were a touch 

firmer. The yield on the benchmark 

10-year US Treasury was down 1.1 

basis point at 2.8333 per cent. 

Westfield’s Oculus shopping mall in lower Manhattan © Getty 

BUSINESS DAY 

More than fifth of investors reject new remuneration policy of aviation services group 

Michael Pooler 

John Menzies has become the 

latest UK company to face a 

protest over boardroom pay, 

as more than one-fifth of investors 

refused to back the aviation 

services group’s remuneration 

policy. 

The Scottish company proposed 

a new long-term reward 

scheme for top executives following 

the recent decision to 

sell its historic newspaper and 

magazine distribution arm. 

Menzies had said the change 

was designed to ensure that 

management incentives were 

“aligned to the growth ambitions” 

of the remaining business, 

which provides refuelling, 

baggage handling and ramps at 

airports. 

But the resolutions were rejected 

by 23 per cent of shareholders 

at a general meeting 

The rouble dropped on 

Wednesday with investors 

concerned that the US 

president’s former attorney may 

reveal new claims related to Russian 

interference into the 2016 

US elections. 

In midday trade in London, 

Russia’s currency dropped 0.93 

per cent, holding near the day’s 

low at 67.89 roubles to the US 

dollar. Its fall contrasted with 

the 0.06 per cent dip faced by 

MSCI’s broad basket of emerging 

markets currencies. 

Michael Cohen, President 

Donald Trump’s former personal 

attorney, pleaded guilty on Tuesday 

to campaign finance violations 

as well as other charges. 

Later in the day, Cohen’s lawyer 

claimed Cohen had “knowledge 

on certain subjects” that 

would be “of interest” to Robert 

Mueller, the special counsel 

tasked with probing alleged Russian 

meddling into the election. 

Russia has denied allegations 

that it interfered in the US elecon 

Tuesday, adding to a list of 

UK corporates that have been 

rebuked by investors over perceived 

excessive pay this year. 

BT, WPP and insurer Direct 

Line have all suffered protest 

votes, which are considered significant 

at 20 per cent or above. 

At Royal Mail, seven in 10 shareholders 

opposed a remuneration 

deal for its new chief executive. 

Menzies had argued its new 

“value creation plan” would provide 

a strong incentive to management 

by offering a share in 

value created for investors. The 

scheme will replace a long-term 

incentive plan, or LTIP, the likes 

of which have been at the centre 

of the furore over high executive 

rewards in recent years. 

The revolt at Menzies followed 

recommendations to 

reject the two resolutions on 

pay from influential proxy advisers 

Institutional Shareholder 

Services and Glass Lewis, whose 

tions, while Mr Trump has said 

repeatedly that his campaign did 

not collude with Russia. 

Concern among investors was 

exacerbated by a report earlier 

this week by Microsoft that said 

a hacking group with links to the 

Russian military had targeted 

Republican-leaning US political 

groups in the run-up to this year’s 

midterm elections. 

“The rouble has been hit by 

concerns of more sanctions, 

prompted by Microsoft’s hacking 

revelations and fears over the 

evidence that Trump’s ex lawyer 

may have with regards Russian 

interference in the 2016 elections,” 

said Koon Chow, strategist at UBP. 

Tim Ash, an emerging market 

sovereign strategist at BlueBay 

Asset Management, agreed with 

Mr Chow that the rouble was 

“not liking” the headlines related 

to Cohen. 

In a sign of investor angst, the 

rouble is the third-worst performing 

major emerging market 

currency this month, down 7.8 

per cent, according to Bloomberg 

data. It has trailed only the Turkish 

A5 

John Menzies hit by shareholder revolt over executive 

guidance is followed by many 

investors. 

“There is significant quantum 

on offer to the executives 

and the arrangement is unduly 

complex,” ISS wrote in a report 

for clients before the meeting. 

“No cogent explanation has been 

provided by the company as to 

how the proposed arrangement 

is in line with [its] strategic imperatives.” 

Glass Lewis, meanwhile, said 

there was “potential for excessive 

pay based on share price 

performance”. 

John Menzies declined to 

comment. The company has 

agreed to offload its newspaper 

and magazine distribution division 

to a UK private equity investor, 

Endless, in a £74.5m deal that 

severs the link to its 19th-century 

origins. 

A resolution for the disposal 

was carried with 97 per cent of 

shareholder votes. 

Rouble sinks 1% on rising concerns over US election interference 

Adam Samson and Michael Hunter 

lira and Argentine peso. 

Russia’s stock market has also 

under-performed its peers. It has 

fallen 9.7 per cent in dollar terms 

this month, against a 4 per cent decline 

for MSCI’s EM stocks gauge. 

In addition to the potential 

for rising tension between the 

US and Russia, the country is 

also “particularly exposed to 

weakness in Turkish assets”, 

according to Ian Tomb, an EM 

economist at Goldman Sachs. 

Turkey’s currency has plummeted 

almost 19 per cent in 

August, a move that was worsened 

by pressure applied by 

the Trump administration in a 

bid to have Turkey release an 

American pastor who has been 

detained on terrorism and espionage 

charges. 

“The sharp sell-off in Turkish 

asset prices, triggered by US 

sanctions, has been a reminder of 

EM frailties with contagion being 

exacerbated by the combination 

of idiosyncratic risks and the 

concentration of inflows,” noted 

Liza Ermolenko, emerging Europe 

economist at Barclays.

A6 BUSINESS DAY 


FT 

ANALYSIS 

Daniel Ortega with first lady Rosario Murillo. The president has concentrated power to such an extent that he is beginning to resemble the 

dictator he replaced, say critics © AP 

Nicaragua: Daniel Ortega’s last stand? 

As deadly protests against the president continue, critics say he now resembles the dictator he replaced 

Jude Webber 

Juan José is digging a latrine on 

the small, 8m by 25m plot the 

government of Daniel Ortega 

has given him to build a house. It 

is prime real estate, across from a 

smart golf club on the outskirts of 

the Nicaraguan capital, Managua. 

Given that he is out of work, he is 

particularly happy not to have to 

pay rent. 

He has long considered himself 

a supporter of the Sandinista 

National Liberation Front (FSLN) 

— the one-time revolutionary 

movement that has led an elected 

government for over a decade. 

But now he has qualms. The land 

where he and others are building 

houses, many sporting the red and 

black Sandinista flag, has been 

commandeered by the government 

— probably as an act of political 

revenge — since the start of an 

uprising four months ago. 

“We were OK with the government 

before,” the 47-year-old 

former hardware store employee 

says, leaning on his shovel. But 

now, “I’d prefer a president who 

doesn’t kill us”. 

Juan José’s cutting assessment is 

a reference to the brutal repression 

of protests by masked paramilitary 

forces loyal to the government in 

which as many as 448 people have 

died since protests erupted on 

April 18. That has prompted him, 

like many other Nicaraguans, to 

undertake a dramatic rethink of 

their support for the leftist leader. 

Mr Ortega was once the face of 

the romantic rebels who overthrew 

US-backed strongman Anastasio 

Somoza in 1979 and fought the 

US-sponsored Contra counterrevolutionaries 

in the 1980s. Since 

returning to office in 2007, however, 

Mr Ortega has concentrated 

power to such an extent that he is 

beginning to resemble the dictator 

he replaced, say critics. 

Friends are few. Historic ally 

Cuba has long lost its influence. 

Venezuela, which supplied millions 

of dollars in cheap oil and aid 

over the past decade, is in desperate 

straits. Much of the business 

community, which had become 

a key pillar of support for the onetime 

leftist radical, has turned on 

him. 

Once a self-professed man 

of the people, providing power, 

roads, internet, education and 

healthcare in the second-poorest 

country in the western hemisphere 

after Haiti, Mr Ortega has been Nicaragua’s 

president for 22 of the past 

39 years. But now he has literally 

dug in — barricades surround his 

official residence — together with 

his wife Rosario Murillo, a writer 

of mystical poetry who is also his 

vice-president. 

Despite demonstrations demanding 

his exit, including one 

snaking as long as 6km, Mr Ortega, 

72, has vowed to stay until scheduled 

elections in 2021, even taking 

to CNN and Fox to broadcast his 

intentions. With leftist icons Fidel 

Castro of Cuba and Venezuela’s 

Hugo Chávez dead, Mr Ortega is the 

last in a generation of Latin American 

revolutionaries still clinging to 

power. 

“Before April, you could have argued 

that he was a benign autocrat,” 

says Arturo Cruz, a former Nicaraguan 

ambassador to Washington, 

now a professor at Incae Business 

School in Costa Rica. “If he had 

known when to go, he’d have gone 

down as a transformer. He risks 

being exactly like Somoza — whatever 

good things he achieved will 

be erased by being a bad autocrat.” 

Henry Ruíz, a former member 

of the military junta co-ordinated 

by Mr Ortega that ruled after 1979, 

puts it more bluntly. “He’s gone 

from being an idealistic Sandinista 

revolutionary to being a consummate 

fascist,” he says. 

Mr Ortega’s career is like a play in 

four acts. From teenage rebel to wily 

political operator to strongman, he 

has reinvented himself in every one. 

In his first incarnation, he was 

an idealistic young Sandinista who 

took up arms to fight the Somoza 

regime. Arrested for his role in an 

armed robbery and tortured during 

seven years in jail, he was freed in 

1974 as part of a hostage swap. After 

guerrilla training in Cuba, he rose to 

be the head of the nine-man revolutionary 

junta that took power in 

Nicaragua in 1979 when the Somoza 

regime was overthrown “because 

he was the one who made the fewest 

waves,” says Sergio Ramírez, his 

vice-president in the 1980s. 

Within two years, the country 

was plunged into a civil war with 

Contra counter-revolutionaries 

that was to last most of the decade. 

Nonetheless, in 1984, Mr Ortega 

was formally elected president 

and “lived travelling the country, 

meeting people,” says Luis Carrión, 

another of the nine junta commanders. 

“It was like he was on a 

permanent campaign, so people 

gradually identified the revolution 

with him.” 

With the economy wrecked by 

war, a US trade embargo and hyperinflation 

that climbed to 64,000 

per cent in 1991, Mr Ortega lost the 

1990 elections to Violeta Barrios de 

Chamorro. 

For Mr Ortega, a short, moustachioed 

man of spartan tastes — his 

Mercedes is one of few luxuries — it 

was also a time of personal scandal 

after a stepdaughter accused him of 

raping her from the age of 11. Both 

he and her mother, Ms Murillo, 

denied the allegations. 

In defeat, Mr Ortega went about 

reinventing himself again, breaching 

political differences to forge a 

political pact with liberal president 

Arnold Alemán to rewrite electoral 

rules helping him regain — and 

retain — power. “He was a first-rate 

opportunist,” says Enrique Sáenz, a 

former opposition deputy. 

After two successive defeats, 

he won in 2006 with just over 38 

per cent. “He came back intending 

never to leave,” says Mr Ramírez, 

who attributes his rise from guerrilla 

to strongman to “unbridled ambition 

. . . a lack of scruples and a ton 

of money from Venezuela”. 

The president sworn in before an 

audience including Fidel Castro and 

Iran’s Mahmoud Ahmadi-Nejad in 

2007 was a very different Comandante 

Daniel to the young revolutionary 

of three decades earlier. 

Despite his socialist invective, he 

enjoyed a cosy rapport with the private 

sector. Until this year’s protests, 

business leaders turned a blind eye 

to his increasing authoritarianism 

in exchange for tax breaks and little 

interference in their businesses. 

At the same time, says Elvira 

Cuadra, a political analyst at a thinktank 

in Managua, “when he came 

into office in 2007, he knew his legitimacy 

was very low. So he began 

preparing monitoring and control 

apparatus to suffocate and control 

dissent.” The police and military 

came under the direct control of 

the president. 

In what could end up as his 

fourth and potentially final act, Mr 

Ortega’s government has mimicked 

many features of the authoritarian 

regime he once fought against. 

Australian prime minister faces 

new leadership challenge 

Turnbull drops corporate tax cuts policy to shore up party room support 

Jamie Smyth 

Australian prime minister 

Malcolm Turnbull 

ditched his flagship 

economic policy to cut corporate 

taxes on Wednesday, in 

the latest attempt to shore up 

his position after narrowly seeing 

off a leadership challenge 

earlier this week. 

The move to jettison the 

unpopular policy — just two 

days after dumping his energy 

and climate policy — was 

made as Peter Dutton, the 

former home affairs minister 

who challenged Mr Turnbull 

on Tuesday, confirmed he 

was trying to persuade party 

colleagues to back him in a 

second leadership contest, 

which could occur as early as 

Thursday. 

“Of course I am [working 

the phones],” Mr Dutton told 

supporters to agitate for a 

second contest. 

In a series of radio interviews, 

Mr Dutton laid out a 

populist policy agenda, which 

includes cutting immigration, 

removing a 10 per cent consumption 

tax from energy bills 

to provide immediate relief to 

families and ordering a public 

inquiry into electricity and fuel 

companies. 

Mr Turnbull responded to 

his rival’s media blitz by shelving 

a plan to reduce corporate 

taxes for large businesses — 

an unpopular policy that was 

blocked by opposition and 

independent MPs in the upper 

house of parliament. 

“It can’t pass the Senate,” 

said Mr Turnbull. “We will not 

be taking the tax cuts for larger 

companies to the next election.” 

The tax climbdown comes 

just days after the government 

Malcolm Turnbull: ‘We will not be taking the tax cuts for larger companies to the next election’ 

© EPA 

Australian radio. “I’m speaking 

to colleagues. I’m not 

going to beat around the bush 

with that. You don’t go into a 

ballot believing you’re going 

to lose and if I believe that a 

majority of colleagues support 

me, then I would consider my 

position.” 

Early on Wednesday, there 

were indications that support 

may be shifting to Mr Dutton, 

a former policeman and 

a leading conservative voice 

within the Liberal-National 

coalition. Up to 10 government 

ministers — including four 

cabinet members — tendered 

their resignations to the prime 

minister, who has refused to 

accept most of them in a bid to 

bolster his own position. 

Mr Turnbull later said that 

the ministers, who had agreed 

to continue in their jobs, had 

given him “unequivocal assurances 

of continuing loyalty 

and support”. 

On Tuesday Mr Turnbull 

defeated Mr Dutton in 

a Liberal party leadership 

contest by 48 votes to 35 — a 

slim margin of victory that has 

emboldened the challenger’s 

shelved its climate and energy 

policy, which was opposed by 

a rump of conservative MPs 

in the Liberal party, some 

of whom have lobbied for a 

change of leader. 

Paul Williams, a senior 

lecturer in politics at Griffith 

University in Brisbane, said 

Mr Dutton’s push for a second 

leadership contest so soon 

after his first tilt suggested 

he may be seeking to head 

off the danger posed by the 

emergence of a rival compromise 

candidate for the Liberal 

leadership. 

Mr Dutton is part of the 

conservative wing of the Liberal 

party while Mr Turnbull 

is viewed as moderate, even 

though he has implemented a 

series of conservative policies 

during his tenure. 

“The Liberal right really 

like conviction politicians like 

[former prime minister] Tony 

Abbott and Peter Dutton,” said 

Mr Williams. “But most people 

have only heard of Dutton 

through the context of immigration 

and what he really 

has lacked so far is an ability to 

connect with the public.”


Harvard 

Business 

Review 

Global Business Perspectives 

BUSINESS DAY 

A7 

Connecting The World One Business at a time 

How women can get what they want in a negotiation 

Research suggests that 20% of 

women never negotiate their 

salary. A woman who opts 

not to negotiate her starting salary 

upon graduation will forgo an average 

of $7,000 the first year, and 

will lose between $650,000 and $1 

million over the course of a 45-year 

career. 

The good news is that negotiating 

skills can be enhanced. Here are 

five strategies that can help women 

both choose to engage and perform 

more effectively in negotiations: 

— CULTIVATING POSITIVE 

EMOTIONS: Positive emotions 

can help women negotiate more 

effectively by increasing their 

willingness to seek mutually beneficial 

solutions and improving 

their ability to engage in creative 

thinking to identify a wider range 

of options. Prior to a negotiation, 

women can use positive priming 

(thinking about something positive 

or engaging in a joyful activity) to 

increase positive emotions, resulting 

in greater creativity, openness 

and willingness to collaborate, all 

of which are essential to successful 

negotiation. 

— BOOSTING EMOTIONAL 

INTELLIGENCE: Emotional intelligence 

involves an awareness of 

one’s own emotions and the emotions 

of others. Being more aware 

of her emotions can boost a woman’s 

confidence in negotiating. It 

lowers the intensity of emotions 

and reduces reactivity by providing 

a moment in which to consider 

how best to respond. This emotional 

control can help women negotiate 

more successfully and give 

them greater self-assurance, especially 

in difficult situations. Confidence 

may also reduce anxiety 

about negotiating, which women 

experience to a greater degree than 

men. Emotional intelligence can be 

developed through mindfulness. 

One of the best ways for women to 

become more mindful is to practice 

meditation. 

— NEGOTIATING COMMU- 

NALLY: While male negotiators 

may win the battle but lose the 

war because of their competitiveness 

and unsympathetic approach 

to relationships, women may suffer 

because focusing on their own 

needs causes others to view them 

as bossy and aggressive. One way 

to overcome this challenge is to 

reframe a negotiation as though 

you are negotiating on behalf of a 

group. For example, a woman who 

negotiates for increased resources 

to enhance the quality or the productivity 

of a department that has 

been stretched by downsizing will 

be seen as collaborative, not aggressive. 

The ability to reframe the 

negotiation — even one with the 

goal of increasing one’s total compensation 

— into one where the 

other party also benefits is particularly 

important for women. 

— NEGOTIATING A PACKAGE: 

In the case of salary negotiation, 

women would help themselves by 

looking at the total compensation 

package, which might include paid 

time off, the hiring of an assistant 

or a commuting allowance — all 

of which have monetary value — 

as opposed to salary alone. Rather 

than saying, “My minimum salary 

expectation is $120,000,” try, “I’d 

be willing to consider a salary that 

is below my minimum if we can 

agree on the total compensation 

package. In addition to my eligibility 

for year-end bonuses, I’d like 

to discuss administrative support, 

relocation assistance and the possibility 

of two months’ rental in 

a furnished apartment, given my 

800-mile relocation.” 

Suzanne de Janasz is visiting professor 

of management and conflict 

analysis & resolution at George Mason 

University in Fairfax, Virginia. 

Beth Cabrera is a senior scholar at 

George Mason University’s Center 

for the Advancement of Well-Being. 

How to help your spouse cope with work stress 

Home is a sanctuary from 

work stress, right? Not always. 

Dealing with stress is a fact of working 

life. And when you’re half of a 

dual-career couple, you have both 

your own and your significant 

other’s stress to manage. That’s not 

necessarily a bad thing, according 

to Jennifer Petriglieri, assistant 

professor of organizational behavior 

at INSEAD. “Two careers can 

mean twice the stress, but it can 

also mean twice the empathy and 

understanding,” she says. What’s 

more, she adds, helping your partner 

learn to cope with stress helps 

you cope with it better, too. The 

key, says John Coleman, co-author 

of “Passion & Purpose,” is to move 

away from the notion that “you’re 

two individuals managing stress” 

and move toward the idea that 

“you’re partners managing it together.” 

Here are some pointers on how 

to get there: 

— LISTEN: When your partner 

gets home from work and begins 

recounting his latest office irritation, 

many of us have a tendency 

to “only half-listen” to them, Petriglieri 

says. But that’s likely to leave 

your partner even more frustrated. 

Instead, she suggests, “give your 

partner your undivided attention.” 

Listen and “really focus on what 

your partner is saying.” Don’t interrupt. 

— OFFER SUPPORT: It’s critical 

to “show engagement in what 

your partner is saying,” Coleman 

says. “Don’t just look at them with 

a fixed stare.” Instead, “say supportive 

things and use supportive language.” 

Empathize and sympathize, 

but don’t compare your stress to 

your spouse’s. “When your partner 

starts complaining, don’t say, 

‘Oh, you think your day was bad, 

listen to what I had to deal with!’ It 

doesn’t help anything.” 

— PLAY CAREER COACH: “The 

benefit of having a 

spouse is that they 

know you as well as 

you know yourself” 

— maybe even a 

little better, Coleman 

says. “So if 

you get a sense that 

your partner is misreading 

a situation 

at work or heading 

in the wrong direction, 

you need 

to say something.” 

He suggests “asking 

good questions 

that will broaden” 

your significant 

other’s perspective. 

Offer advice — but 

be gentle about it, 

Petriglieri says. 

— REFLECT: It’s also important 

to be aware of the type of stress 

your partner is experiencing, ac- 

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

cording to Petriglieri. There are 

two kinds of work stress. “There’s 

sporadic stress, which is the result 

of a bad meeting or a client project 

gone awry,” and there’s “chronic 

stress, which bubbles under the 

surface” for a prolonged period. 

Chronic stress, she says, is a signal 

that your significant other may “be 

in the wrong place.” 

— ENCOURAGE OUTSIDE 

FRIENDSHIPS AND INTERESTS: 

“You cannot be the sole repository 

for your partner’s stress,” Coleman 

says. “Typically, partners are the 

ones we rely on the most. But relying 

on each other too much can 

sour a relationship.” That’s why you 

need to “help your partner have a 

life outside of home and work,” he 

says. 

— DECOMPRESS TOGETHER: 

Finally, you need to cultivate “your 

home as a haven,” Coleman says. 

“There need to be times of day 

where you both put do 

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A8 

BUSINESS DAY 

C002D5556 

Thursday 23 August 2018

BUSINESS DAY 

Opinion 

CHIDO NWAKANMA 

Nwakanma is a Visiting Member 

of the BusinessDay Editorial 

Board and serves on the Adjunct 

Faculty at the School of Media 

and Communication, Pan Atlantic 

University, Lagos. Email chidonwakanma@gmail.com. 

IK MUO 

Ik Muo, PhD, Department of 

Business Administration OOU, 

Ago-Iwoye 

muoigbo@yahoo.com; 

08033026625 

Charley-Boy, that Nigerian 

grandfather who feels he 

is still a boy used to run 

(and may still be running) a 

TV show with a Unique Selling 

Proposition: Everything is possible. 

A Charley-Boy Republic is 

thus a republic in which EVERY- 

THING IS POSSIBLE and where 

everything also goes. (See Ik 

Muo; Nigeria: The making of a 

Charley-Boy republic, Busines- 

Day, 3/12/11-20/12/11) That is 

where we are in Nigeria today. 

That is why we run an anomalous 

contraption in the form of 

a centralized federation; why the 

North moved from ¼ of Nigeria 

in 1966 to more than half as at 

2018; that is why baby-mamas 

and baby-papas, the brazen 

act of adultery, is now celebrated; 

why IPOB, singing songs is 

criminalized while herdsmen 

engaged in murderous orgies are 

being defended and treated with 

deodorant; why the only assurance 

of love today is a very BIG 

car; when the BBA reality show 

receives more attention than 

studies and plans for the future 

NEWS YOU CAN TRUST I THURSDAY 23 AUGUST 2018 C002D5556 

Winking in the dark on the power challenge 

How many hours of 

power do you manage 

to get into your 

house and neighbourhood 

daily and weekly? 

Does the bill you pay translate to 

value for money for the service 

that you get? What are you doing 

about changing the situation 

within the limits of your power? 

Electricity in the homes and 

offices remains a significant 

challenge for all Nigerians five 

years after a comprehensive programme 

to transfer ownership of 

power assets happened in 2013. 

The privatisation of distribution 

and generation was supposed to 

be the solution to the significant 

challenges affecting power in 

Nigeria. Alas. There are too many 

stories. All of the narratives still 

translate to frustration for citizens 

as users of energy either in 

their homes or offices. 

I recently relocated from 

Lagos North to extreme Lagos 

South. I was optimistic of improved 

power supply in this PPP 

Estate touted as an example of 

the possibilities of government 

and private sector collaboration. 

A salesman assured of regular 

12 hours power supply. It has 

turned out a mirage, and this 

place is as bad as Magodo GRA2 

when it comes to power supply. 

Our generators hum and provide 

a cacophonous soundtrack 

all night. 

The power challenge has become 

a puzzle. I am following 

avidly to find solutions to the 

complex maze. Here are some 

of the things I have learned 

from various sites, policy pronouncements 

and experiences 

of citizens. 

The main issues are the 

weak and inadequate power 

supply, insufficient meters to 

customers, and estimated billing, 

meaning no reading of meters 

before charging customers. 

Others are an inadequate generation, 

poor transmission and 

challenges with distribution. 

There is the fact that by their 

self-disclosure, the Discos are 

loss-making ventures currently. 

Then the elephant in the 

room: tariffs. The Discos want 

to charge more, claiming to be 

nounced a policy whereby 

individuals, communities and 

firms could apply to independently 

generate and distribute 

power up to 1MW forparticular 

purposes. NERC MiniGrid Regulation 

2016 stipulates that they 

can do this without reference 

to the distribution companies 

(Disco) in the area or by paying 

an agreed fee to the Disco. 

The efforts of the Rural Electrification 

Agency in providing 

mini-grids in four markets 

across the country are supposed 

to be a test-case. The 

markets are Ariaria in Aba, Abia 

State; Sura Complex, Igbosere, 

and Somolu Printing Community, 

both in Lagos State as well 

as Sabon Gari Market in Kano, 

Kano State. 

Citizens are watching and 

waiting for clarity on the issues 

in dispute between the Power 

Minister and that arm of the 

electricity industry represented 

by the Discos. Fashola had 

asked them to shape up by providing 

power to consumers or 

ship out of the sector. He cited 

statistics on enhanced power 

generation and availability, 

claiming the Discos are the reason 

I do not get sufficient power 

at home. The Discos put the lie 

to the claims in their response. 

It is worth sharing. 

“Furthermore, there is no 

stranded 2, 000MW. While 

Surviving as a youth in a Charley-Boy republic! 

and where a snake can brazenly 

swallow a whole N36m! We are 

also in a hand-out economy in 

which government and politicians 

dole handouts rather than 

designing inclusive, sustainable 

and genuine poverty alleviation 

programmes. Thus you see 

government officials and politicians 

handing out keke, shoepolishing 

and tea making kits to 

Nigerians. We also have money 

for votes, throwing money at a 

crowd of hungry people and the 

most recent one- sharing the 

Abacha loot to a faceless group of 

Nigerians. Neither the Charleyboy 

republic where everything 

is possible and where everything 

goes, nor the handout republic 

provides a secure and prosperous 

future for the youth. 

In my own days, I had admission 

into 5 universities and 

went to UI in 1987, with Ekene 

Dili-Chukwu bus for which I 

paid N5 (Onitsha-Lagos). My 

total allawee for the 12 months 

of my NYSC was exactly N2400 

and I still saved enough money 

to furnish my post-NYSC room 

at home. I started working in 

1982, bought a fresh Peugeot 504 

for N8800, and used to service 

my car with N50, when the most 

expensive engine oil-SUPER V 

was N25. I bought a gas cooker 

for N250, a ceiling fan for N35 

and the biggest Thermocool refrigerator 

for N450 and furnished 

my flat with N1000. Much later, I 

flew from Jos to Lagos with N27. 

These things look so good to be 

true but at that time, we felt we 

were suffering. And unless we 

all consciously do something 

now, tomorrow’s youths will still 

‘ 

Citizens are watching 

and waiting for 

clarity on the issues 

in dispute between 

the Power Minister 

and that arm of the 

electricity industry 

represented 

, 

by the 

Discos 

prehend regarding direction. 

Are we still pursuing a privatised 

power sector or not? In 

May, Power Minister Babatunde 

Raji Fashola announced 

face a worst scenario than those 

of today! 

The youth is the age range 

between 18 and 25 (Catholic 

Church) 14-24 (UNESCO) or 18- 

35 (Nigeria). It is the time of freedom, 

when people have energy, 

dream dreams, have vibrant, 

can-do spirits, and acquire the 

KASO (knowledge, attitude skills 

and other characteristics) necessary 

for the future because, 

that is the time to acquire the 

firewood for keeping oneself 

warm in the old age. At this age, 

people are easily carried away 

by fantasies, want to change the 

existing order, take risks without 

proper analysis by acting now 

and thinking about the consequences 

later. It is also a time 

when some youth suffer from 

extreme exuberance, have little 

worries, fail to optimize time 

because they believe that there 

is still more time ahead of them. 

Over the time, the society has 

gone mad! Globalisation, liberalisation, 

and acute materialism 

have taken the centre stage and 

defined the way we live. We are 

now in an era of unimaginable 

moral decadence and weak 

ethical regime and criminality 

holds sway while government 

and its institutions watch helplessly. 

Money is now the only 

measure of success, irrespective 

of how it is acquired. Access to, 

and quality of, education is low, a 

situation caused by the students, 

parents, teachers, government 

and society at large. Parents consciously 

sponsor examination 

malpractices for their children 

and still blame the teachers for 

their poor performance and all 

operating under the constraint 

of a regulation that limits their 

ability to charge even cost-recovery 

rates, while Government 

and sections of the citizenry are 

unwilling to allow any further 

increases. The matter of appropriate 

tariffs for gas generation 

and supply also factors in 

the mix. 

First, the policy pronouncements 

from the Ministry of 

Power are challenging to comthat 

the Federal Government 

had issued new guidelines for 

the provision of meters and 

licensing of meter asset providers. 

Moreover, Government 

would provide N37b to ensure 

that meters get to consumers. 

Makes you wonder. Is government 

now in the business of 

funding the provision of meters? 

How does that align with 

the privatisation principle? 

Initially, the Discos had the 

duty of the provision of meters. 

They have failed woefully in that 

area, resulting in high commercial 

and collection losses now 

blamed for their inability to run 

profitably. The government has 

now stepped in through NERC’s 

Meter Asset Provider Regulation 


The Meter Asset Provider 

Regulation (MAPR, 2018) outlines 

a complicated procedure 

for registration of the provider 

involving certification by both 

a Disco and the NERC, and a 

collection of revenues from the 

consumer through the Disco 

and back again to the provider. 

If a provider seeks to service 

more than one Disco or area, 

it would need to get several 

licenses. It would be interesting 

to see how this would play out. 

Before then, both the Minister 

and the sector regulator 

Nigerian Electricity Regulatory 

Commission (NERC) an- 

emphasis is on certificates and 

not on skills. We live in an era of 

Federal Character where people 

who score 5 marks are admitted 

into Federal Government Colleges 

while those who scored 128 

are denied admission because 

they committed the crime of 

coming from the wrong part of 

the country. People do what is 

obviously wrong because everybody 

is doing it! People distaste 

work and want to make it big 

without any effort, engaging in 

the self-delusion of claiming success 

and prosperity, attempting 

to make omelette without breaking 

the egg and forgetting the 

good old injunction that he who 

does not work should not eat(2 

Thes, 3:10). We also have gone 

fashion-crazy and the economy 

is also on a downward slope, 

with an unacceptable level of 

youth unemployment, high cost 

of living and poverty. 

Unfortunately, the youths 

have been greatly, and negatively, 

affected by the overall madness 

in our environment. They 

have assimilated the most-negative 

aspects of the general decadence 

in the society because bad 

habits are easier to learn. They 

are now suffering from Americamania, 

adopt a paradigm of 

maximum enjoyment with minimum 

efforts,(forgetting that the 

only place where success comes 

before work is the Dictionary) 

enjoy a culture of nudity in the 

name of fashion(and they shall 

dress in rags;Issiah,3:24) and 

cyber-mania(where browsing 

is the only meaningful preoccupation 

). They have also thrown 

overboard, golden values like 

respect, humility, moderation 

and honesty while particularly 

for those of Igbo extraction, 

speaking the native language is 

infradig! (Probably, they have 

not read Nehemiah, 13: 24). The 

government and its institutions 

and even the society are not 

doing enough to tell the youths: 

this is not the way to go! Of 

course parents are all involved 

‘ 

Unfortunately, the 

youths have been 

greatly, and negatively, 

affected by 

the overall madness 

in our environment. 

They have assimilated 

the most-negative 

aspects of the 

general decadence 

in the society because 

bad habits are 

, 

easier to learn 

in the rat-race for fame and 

fortune and they abandon their 

responsibilities to churches, 

schools and housemaids! The 

Charley-Boy republic has surely 

taken its toll on our youths, who 

are the greatest casualties of the 

there is an available capacity 

of 7, 000MW, the best that can 

be generated, at this time, is 5, 

000MW. This is because there 

is insufficient gas to power the 

thermal plants due to gas line 

limitations (for instance, the 

non-completion of the Oben 

pipeline) and the absence of 

a commercial framework that 

would encourage gas exploration. 

Generation constrained 

by gas amounts to an average 

1, 500MW daily.” 

The power challenge in Nigeria 

remains a conundrum. 

The Discos clearly did not do 

enough homework, were under-capitalised 

and have now 

left eggs on the faces of the 

bankers who funded them. It 

would be par for the course if it 

were only a business challenge, 

but the consequence has been 

plenty of grammar on the power 

supply. Just wondering though. 

Will the heavens fall if Government 

and citizens allowed the 

Discos to charge appropriate 

tariffs seeing as we all spend 

more to run our generators five 

years later? Are we running a 

privatised electricity sector currently 

or a mish-mash that is 

undefined? It’s so foggy in that 

sector even as I put on my generator. 

Clarity, please. Someone 

should switch on power in a 

manner that does not cause so 

much headache. 

everything-goes environment. 

There are local and international 

models of youths who 

have achieved solid and genuine 

success. Enahoro was jailed 

for political activism at age 21; 

Chinua Achebe wrote Things Fall 

Apart at 28 and Chimamanda 

Adichie is not an octogenarian! 

Malcom of France is 40;Sebastian 

Kurz at 31 was sworn in as 

Austria Chancellor, while Kim 

Jong Un of North Korea is 35. Of 

late, the youths themselves have 

realized that they have to make a 

U-turn from the path of perdition 

to which they are collectively 

headed. The society is also calling 

on the youths to get ready 

for leadership at all levels rather 

than the current scenario in 

which most of them are wallowing 

in idleness and hopelessness. 

The Alafin of Oyo recently asked 

Nigerian youths to wake up from 

their slumber. President Macron 

of France urged the youths to 

get involved in politics while the 

recently enacted not-too-young 

to run law is aimed at making it 

easy for the youths to participate 

in politics. Beyond politics, the 

youths are the future leaders in 

all spheres of the society and to 

play that role, they have to start 

today because the future is now. 

Beyond that, most of them are 

so concerned in the struggle for 

survival that politics and leadership 

is not in their mind. But the 

future will surely come and they 

have to take charge because the 

future is their own era. How can 

the youths survive to play the 

expected roles in the Charley- 

Boy republic? 

•To be continued 

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

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

BusinessDay 23 Aug 2018

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