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NEWS YOU CAN TRUST I **TUESDAY 05 SEPTEMBER 2017 I VOL. 14, NO 431 I N300 @ g 

Worst over for Nigeria, S. Africa 

as economic growth beckons 

ONYINYE NWACHUKWU 

The worst may be over 

for Nigeria and South 

Africa, two of Africa’s 

largest economies, as 

they likely began to turn in some 

Nigeria’s image, business gaining on identity management initiatives 

JUMOKE AKIYODE LAWANSON & 

IFEOMA OKEKE 

Nigeria’s image and business 

confidence are 

being significantly enhanced 

by the identity verifica- 

Q2 GDP data for release today 

growth in the second quarter, 

and the worry may now shift to 

the quality of growth to expect, 

especially in a populous country 

tion and management schemes 

put in place by the Federal Government 

over the past few years. 

The schemes include the 

mobile subscriber (SIM Card) 

registration initiative, Bank 

Verification Number, as well 

like Nigeria. 

Official GDP data to be released 

today in Lagos and Johannesburg, 

will probably show 

as the Digital Passport, Drivers 

Licence and National Identity 

Card Schemes. 

The schemes have helped 

with identity verification, 

through biometrics, and location 

through physical points of 

Join the discourse at 23rd Nigerian Economic Summit 

Theme: Opportunities, Productivity & Employment 

...Actualizing the Economic Recovery and Growth Plan 

that the two largest economies 

expanded in the three months 

through June, ending the devastating 

recession. 

reference, such as banks, where 

customers finances and transactions 

are domiciled, as well 

mobile phones, which register 

against cell towers in identified 

geographical locations across 

the country whenever a call is 

A survey of economists conducted 

by Bloomberg shows that 

Nigeria’s gross domestic product 

probably grew from a year earlier 

to signal that Nigeria has exited 

its worst economic slump in a 

quarter of a century. 

It will confirm a July 13, 2017 

Continues on page 4 

Inside 

Dealing with 

the growing 

insecurity in 

Nigeria 

– Mazi Sam 

Ohuabunwa 

P. 9 

Ethnic politics 

and the 2017 

Kenyan elections 

– Rafiq Raji 

... digital passports, BVN, SIM registration yielding fruit ... as experts suggest greater synergies to curb crime 

P. 10 

made, making subscribers identifiable 

and tracable. 

Senior immigration sources 

tell BusinessDay that since the 

last set of non-digital passports 


10th - 12th October, 2017 

Transcorp Hilton, Abuja 

www.nesgroup.org

Tuesday 05 September 2017 

2 BUSINESS DAY 

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C002D5556 

BUSINESS DAY 

3


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NEWS 

New investor in 4th Mainland 

Bridge emerges before year end 

…as 10 prospects submit proposals 

JOSHUA BASSEY 

Months after 

it terminated 

the contract 

for the long 

awaited 4th 

Mainland Bridge, the Lagos 

State Government says it will 

name a new investor and partner 

for the construction of 

the 38-kilometre bridge/road 

project before the end of this 

year (2017). 

BusinessDay gathered that 

the Lagos State Government 

has been digging into the technical 

and financial capacity of 

the would-be new investor, to 

avoid the mistake of the past, 

which forced it to terminate the 

earlier contract for the project. 

The bridge is to be delivered 

through a Public Private Partnership 

(PPP) arrangement. 

Adebowale Akinsanya, Lagos 

State Commissioner for Waterfront 

Infrastructure Development, 

confirmed to our correspondent 

on Monday, that up 

to 10 investors have submitted 

proposals and the state government 

is getting into the last leg 

of the process of unveiling a new 

investor/partner in the project, 

Worst over for Nigeria, S. Africa as economic... 

Continued from page 1 

report by BusinessDay, which 

quoted economists in government, 

as well as some in private 

circles, as saying Nigeria’s second 

quarter, 2017 Gross Domestic 

Product (GDP) numbers will 

possibly show that the country 

has exited economic recession, 

on account of strong performance 

in agriculture, manufacturing, 

telecoms and oil. 

Their confidence is boosted 

by the fact that these four, out 

of the six largest contributors to 

Nigeria’s GDP, are already showing 

strong performance. 

The six sectors include agriculture, 

manufacturing, telecoms, 

trade, real estate and 

crude. Already, agriculture, 

manufacturing, telecoms and 

crude, will likely continue to 

show strong performance, the 

economists believe. 

“It is possible that Nigeria 

could have returned to positive 

growth in the second quarter, 

considering that four out of the 

six key sectors that drive the 

country’s GDP are already in a 

positive trend,” an economist at 

the National Bureau of Statistics 

(NBS) projected. 

Focus in Nigeria is now on the 

NBS, which is billed to release 

the Q2 GDP report. 

South Africa and Nigeria, 

together account for almost half 

of sub-Saharan Africa’s GDP 

and their recoveries may boost 

trade and production across the 

region. The reasons differ: while 

Nigeria, the continent’s biggest 

oil producer, is benefiting from a 

rebound in crude output, stronger 

retail sales may help drive 

following the verification of 

their proposals and claims. 

“We have received five to 

ten proposals and are currently 

studying them and verifying 

growth in South Africa. 

“In both cases a lot of the ‘recovery’ 

is due to things bouncing 

back from very poor performances 

in the reference quarter,” 

John Ashbourne, an economist 

at London-based Capital Economics 

Ltd., said in an emailed 

response to questions. “But 

that’s not all. In both cases, there 

is some real growth.” 

South Africa’s economy probably 

expanded an annualised 

2.3 percent in the three months 

through June, from the previous 

quarter, according to the median 

estimate of 20 economists 

in the survey. Nigeria’s GDP 

likely grew 1.3 percent from a 

year earlier, after contracting for 

five straight quarters, a separate 

survey shows. 

A drop in the output and price 

of oil, Nigeria’s largest export, 

and a lack of foreign currency, 

their claims,” Akinsanya said, 

adding that the proposals are 

a combination of local and foreign 

investors who are excited 

about the development of the 

life-changing infrastructure. 

Among the foreign would-be 

investors are those from Eu- 

weighed on West Africa’s largest 

economy last year. 

The naira weakened after new 

rules allowing foreign-exchange 

dealers to quote naira levels used 

in actual trade came into place, 

and increased inflows alleviated 

some of the dollar shortages. 

Economic growth in Nigeria 

will “return to positive territory 

in the second quarter, on 

the back of a recovery in oil 

production, solid agriculture 

growth and an improvement 

in foreign-currency liquidity,” 

Yvonne Mhango, an economist 

at Renaissance Capital, said in 

an emailed response to questions. 

“We expect the recovery and 

growth to be fragile.” 

South Africa’s economic woes 

were exacerbated by President 

Jacob Zuma’s dismissal of Pravin 

Gordhan as finance minister, 

rope, South Korea, China and 

America. 

The state government in 

May this year, announced the 

termination of the contract 

entered into with a consortium 

of investors for the construction 

of the bridge at the cost of 

N844 billion, citing undue delay 

in the commencement of the 

project by the contractors. The 

investors included the Africa 

Finance Corporation (AFC), 


L-R: Israel Akanji, 

former president, 

Christain Association 

of Nigeria, 

(CAN), FCT Chapter; 

Osita Okechukwu, 

directorgeneral, 

Voice of 

Nigeria; Basher 

Gwandu, acting 

executive vice 

chaiman, National 

Communications 

Commission; Vice- 

President Yemi Osinbajo; 

Abdulrahman 

Dambazzau, minister 

of interior, and 

Ahmed Onilewura, 

deputy chief imam 

of National Mosque 

Abuja, during 2017 

Eid-Al-Adha Lunch 

hosted by the 

President, at the 

Presidential Villa in 

Abuja on Sunday. 

NAN 

which led to Fitch Ratings Ltd. 

and S&P Global Ratings cutting 

the nation’s foreign-currency 

debt to junk in April. The central 

bank halved its GDP growth forecast 

for the year to 0.5 percent 

in July. 

Agriculture and mining were 

the only two industries that 

expanded in the first quarter 

and both continued to perform 

well in the three months 

through June. Farming output 

was boosted by the end of the 

worst drought in more than a 

century and mining benefited 

from rising commodity prices. 

“I don’t think it’s the start of 

a renewed growth cycle, but I 

think that the fear that we are 

heading for a deep recession 

has been abated,” Kevin Lings, 

an economist at Stanlib Asset 

Management Ltd. in Johannesburg, 

said by phone.


C002D5556 

BUSINESS DAY 

5



C002D5556 

NEWS 

MSMEs: FG launches 

one-stop shop in Plateau, 7 

more states to follow 

ELIZABETH ARCHIBONG 

In fulfilment of its mandate 

to significantly spur Micro, 

Small and Medium Scale 

Enterprises (MSMEs) in 

Nigeria, the Federal Government 

says it had launched a 

one-stop shop in Plateau State 

and intends to launch more 

across the country. 

This is to facilitate smoother 

government regulations and interface 

between entrepreneurs 

and agencies like the National 

Agency for Food and Drug 

Administration and Control 

(NAFDAC), Corporate Affairs 

Commission (CAC), Standards 

Organisation of Nigeria (SON), 

Federal Inland Revenue Service 

(FIRS), and others. 

A statement from the Office 

of the Vice President on 

Monday, signed off by his media 

aide, Laolu Akande, said 

the first one-stop shop was 

launched in Jos, Plateau State 

on August 24, 2017 and would 

be housed by the Plateau State 

Micro-Finance Development 

Agency (PLASMEDA). 

States next in line include 

Abia, Cross River, Ogun, Akwa 

Ibom, Kwara, Kano, Benue 

and the FCT. While these 

states are slated for September 

and October, more of the 

one-stop shops are expected 

to be launched in other states 

before the end of the year. 

International Day of 

Charity: Edo drums 

support for Benue 

flood victims, others 

Governor of Edo State 

Godwin Obaseki 

has tasked charitable 

persons, governments, 

religious groups 

and other organisations to 

remember the people of Benue 

State and others in distress, as 

the world celebrates the International 

Day of Charity on 

September 5. 

Obaseki said the scale of the 

crisis resulting from the flooding 

in parts of Benue State was 

beyond the power of the Benue 

State government alone and 

urged global leaders, captains 

of various industries as well as 

religious leaders to mobilise resources 

for victims of the flood. 

“The International Day of 

Charity set aside by the United 

Nations reinforces our common 

humanity, shared values 

and love for one another 

especially in times of crises,” 

Obaseki said. He decried the 

lack of accurate climatic data to 

guide builders and developers 

in flood prone areas at the local 

government level where much 

of uncontrolled development 

takes place. 

The governor commended 

President Muhammadu Buhari 

for throwing the federal 

government’s weight behind 

efforts to assist victims of the 

floods in Benue State as he earlier 

did for Edo State and others 

that were affected by floods a 

couple of months ago. 

Lagos flags off reconstruction of Oshodi-Int’l airport road 

to provide a U-turn from Ajao would commence in September, 

after the Federal Govern- 

major gateway to the country’s He said in order to prop- 

transform that axis, being the property owners. 

JOSHUA BASSEY 

Estate to the airport, construction 

of a flyover at NAHCO/ ment acceded to his request commercial nerve centre. erly carry along people of the 

Governor Akinwunmi 

Ambode Others include the remov- 

for reconstruction. 

to undertake the reconstruc- 

will hold on Thursday to sen- 

toll gate and drainage works. to release the road to Lagos He said the state decided area, a stakeholders’ meeting 

of Lagos State on al of existing pedestrian bridge The airport road is a major tion of the road being one of sitize the people whereby they 

Monday flagged at Ajao Estate and construction 

of pedestrian bridges at state has for years constituted with vehicular volumes av- 

the necessary questions. 

gateway into Nigeria. Its poor the busiest roads in Lagos, will have an opportunity to ask 

off the reconstruction 

of the Oshodi-International 

Airport Road, as- 

Camp, construction of slip country, especially in the esti- 

and that its poor state was project, three group of work- 

Ajao Estate and NAHCO/Hajj an embarrassment to the eraging 50,000 vehicles daily, He said to fast-track the 

suring that the project would road to provide access to Ajao mation of foreigners entering not acceptable for the status ers would work on the project 

be completed and handed Estate, construction of lay-bys for the first time through the of the state as the fifth largest and they would work day and 

over within 15 months. and installation of streetlights, Murtala Mohammed International 

Airport (MMIA) Lagos. nation’s commercial hub. tion, the project would be 

economy in Africa and the night, while upon comple- 

The reconstruction will among others. 

entail expansion of the existing 

carriage to three-lane ex- 

announced last month at his commissioner for waterfront along the corridor have been reclamation project, which is 

Governor Ambode had Adebowale Akinsanya, He said some of the fences linked to the Oworonshoki 

pressway on both directions, quarterly town hall meeting infrastructure development, identified to be within the also ongoing and is aimed at 

construction of two-lane service 

road in both directions, Badore area of Ajah that the indicated the commitment ernment would minimise a major entertainment and 

with the residents of Lagos in said the flag off of the project right of way, but that gov- 

transforming the corridor to 

construction of ramp bridge reconstruction of the road of the state government to the impact of the project on tourism hub.


C002D5556 

BUSINESS DAY 

7



C002D5556


COMMENT 

MAZI SAM OHUABUNWA OFR 

Ohuabunwa is chairman, African 

Centre for Business Development, 

Strategy 

Innovation (ACBDSI). 

In present day Nigeria, life has 

become brutish and short. No 

day passes without the terrorist 

group- Boko Haram- murdering 

innocent Nigerians in market 

places, worship centres and even in 

educational institutions. That is after 

they have been firstly, technically 

degraded and then flushed out of the 

Sambisa forest with the recovery of 

Shekau’s Koran! There is a daily decimation 

of the people of the North East, 

especially the people of Borno state. 

Though, government understates the 

casualty figures for obvious reasons, 

other sources indicate frightening 

casualty figures including military, civilian 

JTF and just plain and ordinary 

citizens of a country that is proving 

apparently incapable of protecting the 

lives of its citizens. 

Elsewhere in the country, armed 

robbers and kidnappers are running 

amok. They have taken over many 

highways, especially at the damaged 

portions, which are too many on 

almost all the roads in the countryfederal 

and state. While we are making 

a song and dance of arresting one 

kidnapper-Evans, the kidnapping 

business is proliferating all over the 

country. Most often, the only help the 

police offers is to advise the relations 

comment is free 

Send 800word comments to comment@businessdayonline. 

Dealing with the growing insecurity in Nigeria 

of the captive to cooperate with the 

kidnappers and sometimes also 

help with negotiating the ransom. 

Less than 1% of kidnappers are ever 

arrested by the police, not to talk 

of those who have been successfully 

prosecuted. Often, I wonder 

if the government is really aware of 

how widespread the problem has 

become. In cities where the kidnapping 

crime had come under control 

a few years ago, there is a frightening 

resurgence. 

Then there is a growing tribe 

of ritualists and cultists who are 

possessed of the devil and are just 

causing mayhem all over the country. 

They invade communities and 

perpetrate murders. The Badoo 

group in the South West and such 

other similar groups have seized, 

tortured and killed innocent citizens 

for no known cause as they neither 

take away money nor other physical 

possessions of their victims- young 

and old. The criminality of the Fulani 

herdsmen remains largely unchecked 

and every once in a while 

they will invade communities especially 

in the middle belt and Southern 

Nigeria and destroy lives and 

property and then disappear into 

thin air. Despite the loud protests 

raised by the victim-communities, 

only few arrests have been made 

and virtually no convictions. 

We have the violent agitators for 

resource control in the Niger Delta, 

who seem to be fairly calm now but 

with potential to erupt anytime as 

the fragile peace can be disrupted 

easily. These ones disrupt the free 

flow of crude oil in the country. 

Among them are some criminal elements 

who kidnap for ransom, undertake 

illegal bunkering and run 

...it is very clear that the 

current Nigeria Police does 

not have the capacity, the 

capability and the resources 

to deal with the myriads of 

security challenges confronting 

the large country. 

The simple answer is to 

allow state police 

illegal refineries, daily destroying the 

environment. The current cessation 

in hostilities is a major achievement 

of the Vice-President Yemi Osibanjo 

when he acted as President. But 

those who live and do business in 

the Niger Delta live in fear everyday 

and private security companies are 

making brisk business. 

Then we have the non-violent 

agitators for self-determination, which 

today is exemplified by the IPOB led by 

Nnamdi Kanu. Though non-violent, 

their rhetoric and demand for a sovereign 

state of Biafra is regarded as a 

security threat. To counterbalance and 

checkmate the threat of IPOB, the coalition 

of Arewa youths emerged with 

their quit notice and threats to confiscate 

the property of the Igbo living in 

Northern Nigeria and actually strongly 

demanded that the Igbo should no 

longer be part of Nigeria. Though it 

is reported that they have suspended 

the quit notice, the suspension was 

conditional and even if it was not 

conditional it was only a suspension, 

not a recant or a total withdrawal of the 

quit notice. In which case even if their 

C002D5556 

conditions were met, they could still 

re-activate the quit notice sometime 

in the future. To me this portends one 

of the greatest and subsisting security 

threats in Nigeria. Nobody is certain 

of what will happen after October 

1. Who knows who is lurking in the 

shadows to take advantage of this 

persisting threat? We need to pray! 

Reading official pronouncements 

by the Nigerian establishment, 

the greatest security risk today seems 

to be the non-violent IPOB struggle 

for self determination. And every 

attempt is now being made to either 

“crush” Nnamdi Kanu or to revoke 

his bail which from the onset was 

granted on impossible conditions. 

The game plan was clear. Grant 

him bail on impossible conditions 

to relieve the great pressure on the 

government and then unleash the 

Arewa youths and if that did not break 

Nnamdi Kanu or the Igbo, they would 

finally re-arrest and jail him for life for 

treasonable felony. 

It is surprising that Nigeria’s establishment 

is playing hide and seek 

with Boko-Haram, looking for the 

authentic leaders to negotiate with, 

including paying heavy ransoms for 

the Chibok girls and yet think it is 

infra dig to even invite the very well 

known leader of IPOB to dialogue 

with the government. I am befuddled 

that the government has not raised 

the national threat level in response 

to the threat of the Arewa youths nor 

arrested them nor gotten them to 

recant or withdraw the threat. I am 

stultified that the growing menace 

of armed robbers, kidnappers and 

ritualists is not giving the government 

cause for much concern. Nobody 

talks about them, outside the police 

half-hearted efforts, including 

BUSINESS DAY 

9 

phantom arrests and arrangee-confessions. 

I am in pain that Nigerians 

in many cities are being violated and 

killed like chicken or kidnapped with 

great ease, that many can no longer 

sleep with both eyes closed as armed 

bandits become more daring. I cannot 

see what extraordinary effort that 

is being made by the government to 

arrest the ongoing proliferation of 

military-type ammunition all over 

the country. Someone said that 

none-state actors seem to have more 

sophisticated weapons than the state. 

This is a frightening development 

that puts the lives of ordinary citizens 

at very high risk and yet all seems well 

from the official perspective! 

Is there a way out of this growing 

insecurity in the country? I believe 

there are. First, is that it is very clear 

that the current Nigeria Police does 

not have the capacity, the capability 

and the resources to deal with the 

myriads of security challenges confronting 

the large country. The simple 

answer is to allow state police. We 

need to decentralize policing and security 

services in this Nation. The state 

governors need to take full charge 

of the security in their domains. To 

call them state chief security officers 

and yet they have no security outfits 

under their command is a misnomer 

and contributes largely to the growing 

insecurity in the country. 

Note: the rest of this article continues 

in the online edition of Business 

Day @https://businessdayonline.com/ 

Send reactions to: 

comment@businessdayonline.com 

STRATEGY & POLICY 

Life at sea is inherently risky 

MA JOHNSON 

Johnson is a marine project management 

consultant and Chartered Engineer. He is 

a Fellow of the Institute of Marine Engineering, 

Science and Technology, UK. 

Unless one is privileged 

to go to sea, the likelihood 

of understanding 

God-given power 

of the deep is very 

slim. The reason is simple. Those 

who ply the sea for commerce or 

for naval duties have one time or 

the other seen the works of their 

creator and His wonders in the 

deep. When the power of the sea 

is at the peak, ships ride on waves 

which are stormy and suddenly, 

the bravery, fortitude and discipline 

of most seamen disappear in 

their misery. Seamen stagger and 

tremble like drunken men, such 

that their wisdom at that moment 

would be useless. Drawing inspiration 

from Thomas Aquinas, “if the 

highest aim of a captain were to 

preserve his ship, he would keep it 

in port forever”. Whether the sea is 

rough or calm, seafarers must keep 

watch in machinery spaces and the 

enclosed bridge ensuring safety of 

lives, ships and the environment. 

On 21 August 2017, a collision 

occurred between the 505ft-long 

USS Johns S McCain and the 600ftoil 

and chemical tanker, the Alnic 

MC near Singapore. Though the oil 

tanker recorded no casualty, some 

sailors onboard the US Navy (USN) 

Alleigh Burke Class Destroyer, USS 

John S McCain were reported dead, 

according to reports. 

It is the sea that connects all 

sailors together globally. That is 

why I take hold of this opportunity 

as an old sailor to express my heartfelt 

condolences and sympathies to 

families and friends of those sailors 

onboard the USS Fitzgerald and 

USS John McCain who lost their 

lives in the course of duty at sea. All 

seamen are not only navigators but 

merchants and soldiers who possess 

the courage to cross the ocean. 

No seaman would want his ship 

collide with another vessel at sea. 

The collision of naval ships 

either in harbor or at sea is not 

without problems or strategic 

implications to any navy. To some 

naval analysts, taking two ships 

again out of operations of the 

US Seventh Fleet in the Pacific 

region has real tactical impact 

considering the role of the USN 

in global maritime security. But 

some naval strategists requested 

to know whether it is the increase 

in number of ships that matters 

most, when areas such as training, 

ship survivability, electronic warfare 

and other capabilities are perhaps, 

not given due consideration. 

In order to ensure common safety 

standards globally, the Convention 

on the International Regulations for 

Preventing Collisions at Sea (COL- 

REGS) is an international treaty 

nearly every nation of the world has 

signed to be part of. It sets out the 

“rules of the road” (ROR) of how 

ships should navigate in relation to 

one another. As a naval officer under 

training some thirty-five years ago, 

the minimum mark you must score 

in any ROR examination is 80 out of 

100 marks. During ab-initio training, 

a fail in ROR twice signals your exit 

from a naval career. In fact, it is in 

one’s interest to know everything in 

ROR as some countries demand that 

sailors must have all the rules governing 

safety at sea at their fingertips. 

It is at sea under varying climatic 

conditions and traffic situations that 

ones’ knowledge of ROR is subjected 

to test. Thus, all officers (merchant 

and navy) are compelled to know 

all aspects of the ROR, but implementation 

remains the key issue. 

Effective implementation of the ROR 

includes the following elements: 

comprehensive national laws, regulations, 

directives and policies; robust 

training programs and qualification 

standards for appropriate personnel; 

routine exercises of ships; mandatory 

reporting protocols of incidents; 

thorough post-incident investigatory 

procedures; and serious postincident 

personnel accountability 

systems. It is not enough to have 

these laws, standards, protocols, 

procedures and systems “on the 

books”. Navigational safety however 

requires individual commanders 

and all other seafarersto remain 

forever vigilant to do all of them 

always. Otherwise, if indicted as a 

result of collision at sea, the penalty 

is grave. 

When there is collision at sea, 

the experience is always devastating. 

The incidents that occurred 

to the US Navy ships could have 

happened to any naval ship of other 

nations. Life at sea is inherently 

risky and many of those risks can 

only be managed, not eliminated. 

It is the use of advance technology 

in navigation that has reduced the 

frequency of collisions and other 

safety incidents in very busy area 

like the Strait of Malacca and Singapore 

channel. 

Definitely in reaction to any collision 

at seafor a naval or merchant 

ship, a number of questions would 

be asked in a Board of Inquiry (BOI). 

The questions are unending but 

accountability of one or several persons 

is necessary, if repetitions of 

such an incidence are to be avoided. 

Some of the questions that are likely 

to be asked may include but not 

limited to the following: Why was 

the ship involved in the incident? Is 

this purely coincidental or are there 

systemic problems that must be addressed? 

Has the ship gone through 

its mandatory refit/repair cycle? 

Was the repair thoroughly done and 

who certified it? Have budget constraints 

or an increased operational 

tempo contributedto the collision? 

Did information systems or steering 

systems malfunction? Are crew 

members receiving sufficient training 

on navigational safety? Was one 

or more of the incidents affected 

by some outside action, such as a 

cyber incursion into the network 

systems of the ships? These are all 

legitimate questions that are likely 

to be asked during investigations, 

and answers to these questions will 

say a lot about accountability in the 

organization. 

What are the lessons learnt?A 

navy must improve its training 

standards, while all safety and 

damage control capabilities must 

be enhanced. Just aselectronic warfare 

capability must be improved in 

an era of cyberwarfare, there must 

be no logistics logjam with respect 

to docking and repair of ships, as 

well as supply and distribution of 

spare parts. Most importantly, it is 

not the number of ships, the quality 

of men behind the machine matter 

significantly. 


comment@businessdayonline.com



C002D5556 

COMMENT 

RAFIQ RAJI 

Dr Raji is chief economist at Macroafricaintel. 

He was previously an 

Africa economist at Standard Chartered 

Bank, London, UK. (Twitter: @ 

DrRafiqRaji) 

Two tight opinion polls 

on the frontrunners of the 

2017 Kenyan presidential 

election just weeks to the 8 

August vote made writ large 

how potentially contentious the outcome 

could be. For the first time since 

campaigns began, one poll had the 

leading opposition candidate, Raila 

Odinga of the National Super Alliance 

(NASA), ahead of incumbent president, 

Uhuru Kenyatta of the Jubilee 

Party. The Infotrak Harris opinion poll 

conducted on 16-22 July put Mr Odinga 

ahead of Mr Kenyatta by one point, 

with the former rising in popularity to 

47 percent, a 3-point gain from about 

2 weeks before. Mr Odinga’s improved 

chances stemmed from holding on to 

his key support base, as well as securing 

new supporters from what used to 

be the Rift Valley and North Eastern 

provinces (now a couple of counties), 

strongholds of the ruling Jubilee Party. 

Another poll, that by Ipsos, taken on 

2-12 July, put both leading contenders 

at a tie at 45 percent. The Ipsos survey 

was probably behind the curve in light 

of its earlier date. Judging from how 

the media initially under-reported Mr 

Odinga’s gains, the establishment was 

clearly shocked. 

Not long thereafter, Mr Odinga 

made a surprise appearance at a 

televised presidential debate that he 

and Mr Kenyatta had earlier indicated 

they would not attend. There was 

much concern about the reluctance 

of the candidates to debate each 

other ahead of the elections. In the 

vice-presidential debate for instance, 

only one candidate showed up. Independent 

deputy presidential candidate 

Eliud Muthiora Kariara debated 

himself in mid-July as his rivals found 

excuses ranging from disagreement 

with the format to not being formally 

invited for staying away. Mr Kenyatta’s 

no-show at the debate was a little 

surprising considering his campaign 

cancelled an earlier scheduled trip 

to Samburu and Marsabit districts 

in the former Rift Valley and Eastern 

provinces respectively on the day of 

the debate. His decision might prove 

costly: Mr Odinga had the stage 

entirely to himself. In his defence, Mr 

Kenyatta asserted the debate would 

have been a waste of his time, preferring 

as he put it, to be commissioning 

projects. NASA stalwarts think he 

simply fell for their trick: Kalonzo 

Musyoka, Mr Odinga’s running mate, 

said he deliberately stayed away from 

the deputy-presidential debate in a 

calculated scheme to snare the Jubilee 

camp into thinking the head of the 

NASA ticket would similarly not attend 

the presidential one. They probably 

have a point, because it is highly unlikely 

Mr Kenyatta would have ceded 

90 minutes of primetime television 

and radio to his opponent otherwise. 

Whether Mr Kenyatta’s debate 

miss would have an impact on the 

election results remains to be seen, 

however. But should Mr Kenyatta 

lose the election, one of the reasons 

would almost certainly be because 

he allowed Mr Odinga to have the 

undivided attention of the country 

for more than an hour without the 

Ethnic politics and the 2017 Kenyan elections 

chance to make his own case. Such 

is the level of uncertainty now that 

there is talk of a likely second round 

vote. And even before the debate upset, 

an objective assessment would 

have revealed Mr Odinga was probably 

in a far stronger position than 

the media, or in fact the opinion polls, 

suggested. Mr Odinga’s coalition of 

popular politicians from the major 

ethnic groups, his populist rhetoric, 

and the electoral reforms he successfully 

pushed for, could sufficiently 

tilt the balance in his favour. That is, 

barring any major adverse events, 

of which there are already a few. An 

ongoing cholera outbreak and the 

perennial terrorist threat from Somali 

Al-Shabaab militants are examples of 

threats that could instigate measures 

by the authorities with potentially 

dampening effects on voter turnout 

on election day. 

Ethnic arithmetic favours opposition 

coalition 

Although the 2017 elections 

would be the second since the new 

2010 constitution, which allowed 

for the devolution of powers to the 

counties, was adopted, it would also 

be the first since citizens got a taste of 

how much power the counties now 

wield. And it is increasingly obvious 

a couple of counties might decide the 

election, judging from the amount 

of time the two leading candidates 

dedicated to them during the campaigns. 

They are Narok, Kajiado, Kisii, 

Baringo, and those in the former 

Coast and Western provinces. Even 

so, a lot of voters are expected to decide 

along ethnic lines. Mr Kenyatta, 

who is Kikuyu, the country’s largest 

tribe and 17 percent of the population 

(2009 census), and his deputy, 

William Ruto, who is Kalenjin (13 

percent of the population), could 

easily secure 30 percent of the vote, 

based on their joint ethnicity alone. 

Mr Odinga, who is of the Luo ethnic 

group (10 percent of the population) 

and the other 4 principals of the National 

Super Alliance (NASA) coalition 

namely; former vice-president 

and deputy prime minister Musalia 

Mudavadi of Luhya ethnicity (14 

percent of the population), former 

vice-president Kalonzo Musyoka of 

Kamba ethnicity (10 percent of the 

population), former Senate minority 

leader Moses Wetangula of Luhya 

ethnicity and Isaac Ruto, who is a 

Kalenjin, could together easily secure 

47 percent of the vote if their ethnicity 

is a reliable proxy; albeit only Mr 

Musyoka is on the presidential ticket 

with Mr Odinga. 

Even as tribal loyalities do run 

deep, however, voting choices may 

not necessarily be tribally homogenous. 

Considering deputy president 

William Ruto is a more influential 

Kalenjin, Mr Isaac Ruto, who has 

boasted of bringing at least 1 million 

Kalenjin votes to the table, cannot be 

so confident, for instance. And the 

voters’ register does not necessarily 

reflect the exact tribal configuration 

of the population. That is, some tribes 

might have a greater representation 

in the register than their share of the 

population and vice versa. Besides, 

voter turnout on election day might 

not be similarly structured. And the 

loyalties of tribes like the Kenyan Somali 

(6 percent of population) might 

go either way, although they may not 

forgot too soon the court-botched 

closure of the Dadaab refugee camp 

by the ruling Jubilee government. 

Past election results could also be 

an indicator of how the candidates 

might fare this time around. Mr 

Mudavadi, who is not contesting for 

elective office in the upcoming polls, 

secured 3.96 percent of the 2013 

What is significantly different 

this time around 

though, is that the election 

results declared at 

polling stations would 

have finality, as opposed 

to the past practice of 

making them provisional 

to final certification by 

the IEBC in Nairobi 

presidential election votes. If summed 

with Mr Odinga’s 43.7 percent, their 

joint tally of about 48 percent, though 

impressive, would still fall short of the 

minimum 50 percent and one vote 

needed to secure a victory, however. 

That is in addition to having more than 

25 percent of votes cast from at least 

half of the country’s 47 counties. 

But add those that could potentially 

come on the back of the other NASA 

principals, an extra 2 percent might 

not be that difficult. In contrast, Mr 

Kenyatta cannot be assured he would 

get as much as the 50.5 percent of the 

vote that he got in 2013. Myriad allegations 

of corruption, a drought-induced 

grain shortage (albeit now ameliorated 

with government-subsidized imports) 

and so on, have likely eroded some 

of his support. It is also probable Mr 

Odinga’s populist and socialist rhetoric 

resonates more with voters than Mr 

Kenyatta’s capitalist drift. 

IEBC must be beyond reproach 

With such a tight race, much would 

depend on whether voters trust the 

Independent Electoral and Boundaries 

Commission (IEBC). What is 

significantly different this time around 

though, is that the election results 

declared at polling stations would 

have finality, as opposed to the past 

practice of making them provisional 

to final certification by the IEBC in 

Nairobi. That much the courts have 

affirmed: the IEBC failed in its appeal 

of the April 2017 court ruling which 

ordered that results declared at polling 

stations must not be subject to change 

at the national collation centre. Such a 

decentralized system makes it more 

difficult to cheat, as all stakeholders 

would be able to do their own collation 

based on the same constituency-level 

results. The increased transparency 

consequently is also why fears of violence 

may be overblown. Credit for 

these laudable changes must go to Mr 

Odinga and his coalition partners. 

From April 2016 onwards, Mr Odinga 

and his supporters staged several 

protests demanding changes at the 

IEBC that would ensure the umpire is 

not in a position to fraudulently tilt the 

elections in favour of the incumbent. 

After a few deaths, the ruling Jubilee 

government agreed in August 2016 

to replace the IEBC commissioners, 

which the opposition called biased. 

One month later, Mr Kenyatta signed 

into law amendments to the electoral 

act that included new criteria for recruiting 

IEBC commissioners. 

Despite these gains, Mr Odinga and 

his coalition partners did not relent 

in their scrutiny of the IEBC. When 

the ruling Jubilee government would 

not budge on an issue, the opposition 

simply went to the judiciary for redress. 

Mr Kenyatta did not hide his irritation, 

as the courts seemed to be ruling more 

often in the opposition’s favour at some 

point, forcing a word of caution from 

Chief Justice David Maraga. Jubilee 



tried to cast doubts on the credibility 

of at least one judgement unfavourable 

to it, citing conflict of interest. 

Court of Appeal judge William Ouko, 

who was one of the five-member 

bench that ruled on the finality of 

election results at the constituency 

level, is related to Mr Odinga’s wife, 

for instance. The niece of one of the 

NASA lawyers turned out to be married 

to one of the judges in another 

case that NASA won. Were that to be 

a yardstick, however, then almost all 

the top judges could be conflicted. It 

is typical of the elite in the private and 

public sectors to inter-marry; after all, 

they often belong to the same social 

circles. Unsurprisingly, when the 

courts have been unfavourable to Mr 

Odinga, he has similarly accused Mr 

Kenyatta of intimidating the judiciary. 

The key point here is how deliberative 

combative both sides have been and 

how determined they are to win. 

Procurement activities at the IEBC 

have also been marred by one controversy 

after another. It cancelled the 

tender for poll equipment in March 

2017, for instance, amid accusations 

of corruption from the opposition. 

The awarding of the contract to print 

ballot papers to Dubai-based Al 

Ghurair, a company NASA claims 

has ties to Mr Kenyatta, is another, 

a charge the firm denies in a sworn 

affidavit. A high court ordered Al 

Ghurair to stop the printing of presidential 

ballot papers regardless, but 

was later overturned on appeal as the 

IEBC expressed fears the elections 

could be delayed. The controversy 

could have been avoided in the first 

place if proper tendering processes 

were followed. Because even before 

the Al Ghurair saga, the tender had 

been cancelled at least twice over 

irregularities, forcing the IEBC to 

send erstwhile procurement director 

Lawy Aura on compulsory leave in 

June 2017. Information Technology 

director, James Muhati, received a 

similar treatment at about the same 

time when it emerged he was not 

being helpful with a systems audit. 

His replacement, Chris Msando, was 

found tortured and murdered in late 

July, a little over a week to the polls 

and just before a systems audit was 

scheduled. Although, the IEBC has 

since discountenanced suggestions 

of a disruption consequently, it would 

be difficult to put in place another 

senior staff with the same level of 

competence, preparedness and, as 

was found, high integrity, within such 

a short period. Besides, it is highly 

improbable that Mr Msando’s assailants 

would have taken such a drastic 

step if they were not convinced that 

his replacement would either be less 

competent or prepared or more pliable. 

Regardless, they likely succeeded 

in getting enough information on 

the so-called Kenya Integrated Elections 

Management System (KIEMS) 

through torturing him. Thus, unless 

there is a re-configuration, KIEMS 

has likely been compromised. The 

proximity of the killing to the poll date 

also means a new ICT manager would 

not have enough time to gain the trust 

of the public like Mr Msando was 

able to. In fact, NASA has expressed 

fears the transmission of the election 

results may be hacked. To forestall 

this, it has asked that an independent 

international firm be tasked with 

overseeing KIEMS. IEBC chairman 

Wafula Chebukati disagrees, insisting 

the commission’s systems are secure 

and a competent team remains in 

place to ensure hitch-free elections. 

Mr Chebukati could not be so sure 

that early on before the conclusion 

of substantive investigations. For an 

election considered to be Kenya’s 

most expensive yet, these negative 

events are quite concerning. 

There is currently more than 300 

cases at the courts against the IEBC. 

The major ones, that is, those that 

could have delayed the elections, 

have been addressed, however. The 

one that relates to the printing of 

presidential ballots was earlier highlighted. 

Another suit by NASA asking 

the courts to stop the IEBC from using 

a manual voting system as back-up, 

has also been quashed. The worry of 

NASA of course, was that a manual 

system would be open to fraud. It had 

hoped voting would be exclusively 

electronic. But in light of the Nigerian 

experience where electronic voting 

kits failed on election day, it is probably 

wise to have a manual back-up. 

That is even as Jubilee may likely want 

the manual system backup for sinister 

reasons. What NASA had wanted was 

for the IEBC to postpone the elections 

should the electronic kits fail. 

This it hoped would demotivate any 

shenanigans like the electronic kits 

being made to deliberately fail just so 

the elections would be largely manual. 

Still, the myriad litigations even before 

an actual vote point to a potentially 

contentious election aftermath. It is 

a positive that at least the key questions 

that hitherto put a cloud over 

the elections, have been answered by 

the courts. 

Potential turnout holdups 

A spreading cholera outbreak is 

not helpful either. From the beginning 

of the year to 17 July, there were 

already 1,216 registered cases and 14 

deaths. The World Health Organisation 

(WHO) has classified it as high 

risk nationally and regionally. Should 

it deteriorate further, necessary quarantine 

measures would disenfranchise 

a swathe of voters. The authorities 

have already shut down venues 

where cases have been recorded and 

ordered the testing of about half a 

million people in July. More stringent 

measures are probable. Furthermore, 

elections are being held this year amid 

a still challenging food supply environment. 

Government-sponsored 

imports to ameliorate the problem 

have been largely effective, though. 

But the arrangements have tended to 

run into problems from time to time. 

In July for instance, wheat prices rose 

on higher demurrage charges to ships 

carrying imported supplies, but were 

delayed at the ports. A 2kg packet rose 

as much as 11 percent to 133 shillings 

from 120 shillings two months earlier. 

The food crisis came in handy for Mr 

Odinga, who harped on past warnings 

about the country’s dwindling 

grain reserves. A refusal to lift trade 

barriers with neighbouring Ethiopia 

to favour Jubilee acolytes’ maize import 

arrangements with Mexico, was 

fingered. 

Note: the rest of this article continues 

in the online edition of Business Day @ 

https://businessdayonline.com/ 

• The author, Dr Rafiq Raji, is an 

adjunct researcher of the NTU- 

SBF Centre for African Studies, a 

trilateral platform for government, 

business and academia to promote 

knowledge and expertise on Africa, 

established by Nanyang Technological 

University and the Singapore 

Business Federation. This article was 

by the NTU-SBF Centre for African 

Studies on 4 August 2017. It was also 

by published by Africabusiness.com. 






SALIENT 

WEYINMI JEMIDE 

Jemide is a certified master coach and 

currently a doctoral candidate in applied 

leadership and coaching. He writes every 

Tuesday in BusinessDay 

I 

like my job because it involves 

learning. I like be- 

“ 

ing around smart people 

who are trying to figure 

out new things. I like the 

fact that of people really try they 

can figure out how to invent 

things that actually have an 

impact – Bill Gates. 

The significance of C-suite 

executives in the leadership 

and results of organisations 

demands a mentality of lifelong 

learning. Previously great 

careers have been brought to 

disastrous ends with a CEO’s 

wrong footing. While there 

are cases of sheer misfortune, 

poor learning at the top also 

accounts for many adverse 

consequences. Falling off a 

high cliff is often fatal while 

falling on a walkway might 

only lead to treatable bodily 

injury. Lessons that were not 

learnt earlier prove damaging 

as the flight of hierarchy 

reaches its height. Good companies 

collapse when executives 

show up as poor learners, 

choose to ignore the lessons 

they have learnt, or refuse to 

unlearn irrelevant lessons. I 

for learning. Think about the 

usefulness of ideas presented 

at a conference. Contemplate 

the value of a question that an 

unfamiliar person might ask. 

Consider if there is anything 

to learn from someone you are 

meeting for the first time. Think 

networking, yes but better still, 

think networking learning. 

Managing transitions 

Executive tenure is replete 

with changes and surprises 

which imply that transitions 

will occur several times in a single 

role. Indeed, it is important 

for executives to be prepared 

for transition to new roles. But 

transitions are not only about 

moving into new roles. Rather, 

they encompass the multiple 

events that challenge executives 

in their leadership roles. 

Staffing, team building, board 

meetings, hard decisions, difficult 

conversations, new technology 

and competition are 

some of such challenges. The 

reality of these events has to 

be acknowledged as part of 

the toolkit for learning in the 

C-suite. The disastrous endings 

I referred to in the introductory 

paragraph are sometimes 

caused by inadequate learning 

during executive transitions. 

A notable characteristic 

of business transitions is the 

uncontrollability. There will 

be unavoidable transitions of 

teams, strategy, products, regulation, 

and the economy to list 

a few. Executives primed with 

COMMENT 

Enhancing leadership: Networking 

and transitions in the C-suite 

have previously noted ways 

through which C-suite leaders 

can learn. These include 

mentoring, learning from challenges 

and crises, coaching, 

acting on feedback, deliberate 

practice and engaging support. 

I will close this sub-series on 

learning in the C-suite with two 

more channels: networking 

and managing transitions. 

Networking 

A web is a network of fine 

threads constructed by a spider 

and used to catch its prey. 

In the world of spiders, the 

focus of energy is not on pursuing 

prey but on building 

the web that traps prey. The 

web is an excellent metaphor 

for the learning that needs to 

consistently take place in the 

C-suite. The network becomes 

even more valuable as roles 

of responsibilities increase 

towards the top of corporate 

hierarchies. Simone Andersen 

in “The Networking Book” 

makes a distinction between 

a network and networking: “a 

network is something you establish, 

networking is when you 

develop and make use of your 

network”. Networking is more 

than a social tool. It entails 

going beyond the exchange of 

business cards to developing 

a leadership surround system 

that enriches executive outcomes. 

It is also a learning web 

for trapping insights and lessons 

to support the sometimes 

perplexing work of leading 

Networking opens up 

learning through shared 

stories, errors that generate 

regret and lessons, and the 

wise counsel of people that 

have travelled on peculiar 

roads. Learning is available 

from casually spoken words 

which carry deep personal 

and corporate implications 

organisations. 

Networking opens up learning 

through shared stories, 

errors that generate regret and 

lessons, and the wise counsel 

of people that have travelled 

on peculiar roads. Learning is 

available from casually spoken 

words which carry deep 

personal and corporate implications. 

A prime benefit of 

learning through networking 

is the combination of low cost 

and high benefit. There are 

various networking sources of 

learning that executives can 

exploit. The conferences at 

which executives gather provide 

perspectives that can be 

translated to organizational 

profitability. The odd conversation 

with a friendly party or 

a chance meeting with an old 

schoolmate can furnish or enhance 

ideas. 

A more beneficial approach 

to networking is to be intentional 

about it; not just for 

social or business purposes but 

C002D5556 

BUSINESS DAY 

11 

learning are more likely to survive 

transitions. Peter Drucker 

wrote many years ago about “a 

true world economy”. The integration 

and interdependence 

of world systems indicate that 

organisations and their leaders 

are enrolled in a mechanism 

they did not consciously sign 

up for. Consequently, constant 

learning is a necessary executive 

skill. 

The sovereignty of nations 

is valid in law but less so in 

economics and in the corporate 

world. As recent global 

happenings demonstrate, the 

sovereignty in politics and 

government is also largely 

threatened. These evolutions 

considerably affect the work 

of executive leaders wherever 

they might be located. They 

also suggest a steeper learning 

curve for today’s executive 

than has ever been known. 

It is largely a choice between 

learning and surviving the 

transitions or dying for failing 

to learn. Not much middle 

ground to navigate. 

Closing note 

The best leaders are the best 

learners and C-suite leaders 

ought to be even better learners. 

Learning opportunities 

are available to leaders in the 

not-so-obvious channels of 

networking and managing 

transitions. 


comment@businessdayonline.com 

GRACE EFEZOKHAE 

Grace Efezokhae holds a Bachelor’s degree 

in Accounting from Covenant University, 

and a Master’s degree in International 

Business from the University of South 

Carolina, USA. She is also a Chartered Accountant 

currently working as a Research 

Analyst with a Consulting firm in Lagos. 

After a 23 year old OnyinyeOkocha 

lost her 

husband to the ill-fated 

Dana air crash of 2012, she was 

left with no choice but to get 

the best life for herself and her 

15 month old daughter. As a 

stay at home mum or “domestic 

engineer” as she fondly called 

herself, depending on anyone 

for their upkeep was certainly 

not going to be her default. Her 

Onyinye Okocha: An entrepreneur rising above all odds 

role as the CEO of Kairos Treats 

since 2014 was stumbled on by 

fate and has grown in leaps and 

bounds. Her determination 

shows us how good money can 

be made out of lemonades from 

the lemons life throws at us. 

Although, she initially delved 

into makeup, the mobility of the 

job did not give her ample time 

for her daughter. After her stint 

at the Aspiring Entrepreneurs 

Program with Fate Foundation 

did the idea for Kairos Treat 

come about. Unlike some sayings 

where we are encouraged 

to follow our known passion before 

delving into a business, Oyinye’s 

motivation was a means 

of survival as getting the best for 

her was not negotiable. 

Starting the business did not 

come without its challenges 

which include the “Nigerian 

usuals”; a continuous rise in 

the cost of flour, sugar and other 

overhead cost such as running 

the generator. Others include 

getting the right staff who will 

flow with the vision and get 

things done with little or no supervision. 

One of the toughest 

challenges she had as a startup 

was a staff she had employed 

with no skills nor experience. 

She had hoped that by training 

her on the nitty gritty, the staff 

would stay and grow with the 

business. Alas! just a few days 

after, the new staff asked for an 

increase in salary, refused to 

show up for days and just walked 

away. Oyinye learned a big lesson 

from this incident by never 

allowing sentiments in recruiting 

and training staff but to have 

a well-documented staffing 

procedure stating obligations 

and terms of resignation. She 

doesn’t feel bad now when a 

staff leaves as she tries to retain 

employees and minimize staff 

turnover. 

Onyinye recalls of her best 

moments where she had an 

order to make a 20-inch dessert 

wedding cake. The cake 

crashed a day before the wedding. 

She and her team had 

to stay up all night starting all 

over again. The wow expression 

from the bride made her 

day. Her key success factors in 

the business include the God 

factor, going beyond meeting 

clients’ expectations, and being 

meticulous on quality. Excellent 

customer service she says 

brings in more referrals and 

publicity for her business. She 

considers negative reviews on 

social media as a deal breaker 

in any business and ensures 

she puts in her best in every 

cake she makes for clients. 

Oyinye strongly believes in 

continuous learning as she endeavors 

to attend training and 

courses to master her craft. She 

believes that an entrepreneur 

needs to keep better at his/her 

craft, be up to date with trends 

in the industry of operation and 

have an open mind to learn 

from just about anybody. 

Her advice to budding entrepreneurs 

is to remain focused. 

She reiterates that although getting 

multiple sources of income 

is advisable, building a business 

at the early stage involves staying 

in your lane, sticking to it 

and getting better at it by the 

day. It involves more than dabbling 

into several businesses in 

a short time as it takes patience 

to build a niche and a worthy 

brand. 

Onyinye Esther Okocha is 

the CEO of Kairos Treats. They 

can be reached on 0802 943 

1828 and 0809 365 4052 for that 

special cake for all occasions. 

Find them also on Instagram 

and Facebook @kairostreats. 





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ENQUIRIES 

Turning Nigeria into a police state? 

There has been so 

much talk recently 

about the propriety 

of government 

clamping down on 

hate speech. Then Acting President 

threw the first salvo when 

he likened hate speech to terrorism 

vowing the government 

will no longer tolerate it. Sadly, 

Mr Osinbajo never defined what 

exactly he or the government 

meant by hate speech. But if 

Nigerians were worried as to 

what exactly the government 

means by ‘hate speech,’ they 

were to receive a precise definition 

from the Nigerian military, 

which, taking a cue from the 

Acting President, announced 

through its Director of Defence 

Information, Major General 

John Enenche, that it is creating 

‘strategic media centres’ 

“to monitor social media in 

order to sieve and react to all 

anti-government, anti-military, 

and anti-security propaganda”. 

With this, the government can 

now conveniently lump any 

statement or criticism by group 

or person, which caused it consternation, 

into its amorphous 

definition of hate speech and 

promptly clamp down on such 

groups or persons. 

Nigerians must not allow the 

government to turn the country 

into a police state. 

If there is one thing history has 

taught us in Nigeria, it is that we 

must never allow the government 

to draw the borders of free speech. 

Knowing this administration for 

what it is and from the lessons of 

history, it will not be long before 

the government begins to clamp 

down on legitimate free speech and 

any iota of criticism. Already, state 

governors and senior government 

officials have been surreptitiously 

using the police to clamp down on 

their critics under many pretexts. 

It is also clear that some people 

in the administration are 

threatened by the ubiquity and 

far-reaching effects of the social 

media and want to restrict or 

clamp down on it. Right from the 

inception of this administration, 

many efforts have been made to 

clamp down on the social media 

through the anti-social media bill 

currently before the Senate. Suffice 

to say the bill is as far reaching 

in what it seeks to achieve as 

Decree No 4 of 1984 that prohibited 

journalists from reporting 

anything that could embarrass 

the regime, even if it were true. 

It is unfortunate that the APC, 

having greatly benefited from, 

and used the social media to great 

effect to vilify the past administration, 

got it voted out of power 

and won election on its platform, 

is now hell bent on taming that 

very medium. The party and its 

officials appear to have become 

fearful of the very medium they 

use to ride to power being used 

against them. 

Curiously, even while the government 

claims to be against hate 

speech, it is actually harbouring 

and protecting those promoting 

hate speeches while brutally trying 

to suppress those legitimately 

seeking for self-determination. If 

the standard text-book definition of 

hate speech is speech which attacks 

a person or group based on identifiers 

such as race, religion, ethnic 

origin, sexual orientation, disability 

or gender, it is curious to see 

the government persecuting those 

seeking for the actualisation of the 

state of Biafra (a peaceful movement) 

and seeking the re-arrest 

of Nnamdi Kanu while looking the 

other way while a motley of groups 

known as Arewa youths engage in 

hate speech and threatening an 

ethnic group with eviction from a 

particular section of the country. 

Truth be told, the president 

has done much more to divide the 

country and promote hate speech 

by his seeming inability to treat all 

sections of the country fairly. Besides, 

his post-election utterances 

energised an otherwise suppressed 

feeling for self-determination. 

We call on Nigerians, civil society 

and human rights groups to intensify 

campaigns and opposition 

to the obnoxious attempt to turn 

Nigeria into a police state. As the 

saying goes, vigilance is the price 

of liberty. 

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Nigeria’s Media Seal, Bytesize 

join Worldwide Partners 

Stories by Daniel Obi 

Media Business Editor 

Media Seal 

formerly 

Starcom 

Media, one 

of Nigeria’s 

foremost media specialist 

companies and its sister 

agency, Bytesize Limited, a 

digital company in Nigeria 

providing end-to-end digital 

marketing services, have 

joined Worldwide Partners, 

(WPI). 

Worldwide Partners is a 

global collective of marketing 

services providers who 

share an independent spirit 

and entrepreneurial drive 

to build commerce through 

connectivity, creativity and 

collaboration. With this strategic 

move, Media Seal and 

Bytesize are expected to leverage 

huge global resources 

derived from the collective 

competencies and capabilities 

of 65+ agencies in over 45 

countries. 

While announcing the 

partnership, Ayo Oluwatosin, 

Group Managing Director, 

Rosabel Group explained 

that “the partnership with 

WPI is one of a kind in the Nigerian 

market as it is different 

from the traditional affiliation 

with holding companies. Essentially, 

the WPI network 

operates a unique business 

model that leverages the 

collective strength of every 

partner agency for the full 

benefits of our clients.” 

According to Oluwatosin, 

there is an in-depth level 

Digital Pay TV company, 

StarTimes, 

has announced 

an unprecedented 

downward review of its 2-in-1 

Combo Decoder Prices from 

N13,900 to as low as N5,900. 

While unveiling the 2 in 1 

Combo Decoder last year, Star- 

Times had noted that it was the 

first of its kind in Nigeria and 

a move to change the Pay TV 

landscape in Africa and offer 

surplus entertainment access 

to subscribers. 

Speaking on the new price 

slash in a statement, acting 

Brand and Marketing Director, 

StarTimes, Qasim Elegbede, 

said the new decoder price 

slash was a deliberate move 

to avail all Nigerians the opportunity 

to access digital 

television and entertainment 

with a decoder that combines 

both antenna and dish and 

offer channels on both at very 

L-R: Ayo Oluwatosin, GMD, Rosabel; Lisa Kettman-Kervinen, executive director of EMEA, Worldwide 

Partners; Senator Akin Odunsi, chairman, Rosabel Group; Nosa Ademola, MD, Bytesize and HRM, 

Ayo Kupoluyi, MD, Media Seal at the unveiling of Media Seal, Bytesize partnership with Worldwide 

Partners on Moday. 

of synthesis among partner 

agencies, giving rise to the 

robustness of marketing solutions 

and not just media. 

Also speaking on the 

partnership, Lisa Kettman- 

Kervinen, Executive Director 

of EMEA, Worldwide Partners 

said in a statement, “the partnership 

is to connect, collaborate 

and to drive each other’s 

businesses.” She added that 

like other partners, Media 

Seal and Bytesize have become 

shareholders in WPI 

global network. 

For Akin Odunsi, Chairman, 

Rosabel Group, “the 

partnership becomes necessary 

because, our business is 

global in nature and we need 

to have a partner that has 

dynamic global view of the 

affordable price. 

He added that StarTimes 

will continue to offer subscribers 

the best in class of 

pay TV experience with world 

class channels for drama, 

sports, kiddies, news, music 

and religion. “We are keen to 

continuously enhance access 

and improve digital television 

experience for our subscribers,” 

he said. 

“As a digital TV company, 

StarTimes’ desire and commitment 

is to ensure Nigerians 

continue to enjoy the best of 

digital television entertainment 

and experience with a 

plethora of exciting programs 

in high definition (HD) images 

at very pocket-friendly 

bouquet rates. 

“The Combo Decoder offers 

multiple accesses to subscribers 

to enjoy both digital 

marketing communications 

business.” 

It will be recalled that 

Starcom Media recently rebranded 

to Media Seal. This 

decision the management 

said, is part of a larger strategic 

goal aimed at repositioning 

the business for sustained 

market leadership in the unfolding 

new global play. 

Ayo Oluwatosin said 

over the past 17 years, Media 

Seal has become synonymous 

with delivering 

insight- driven strategies 

within the bounds of high 

ethical standards. 

According to the Group 

Managing Director, it is time 

to rebrand this winning team 

for greater efficiency and to 

take advantage of the market. 

MEDIA SEAL and BYTE- 

SIZE in collaboration with 

her network agency, would 

work with clients in creating 

memorable consumer experience 

across diverse media 

platforms. 

Oluwatosin explained 

that the Starcom team has a 

compelling pedigree in the 

industry which MEDIA SEAL 

is set to take to another level 

with advanced technologies 

that unearth real consumer 

motivations. Over the years, 

the agency have won numerable 

awards from campaigns 

that have positively impacted 

clients’ business. Beyond 

that, accolades have been 

won also in recognition of our 

business processes, Oluwatosin 

stated. 

Startimes slashes price of decoder 

The Partnership for 

Media and Democracy 

(PAMED) has 

called on the Federal 

Government to restrain the 

Nigerian Army from monitoring 

the social media activities 

of Nigerians, describing the 

action as a violation of the 

rights of Nigerians to freedom 

of expression and the privacy 

of their communications guaranteed 

by the Constitution and 

international human rights 

instruments to which Nigeria 

is a party. 

PAMED, comprising International 

Press Centre (IPC), 

Media Rights Agenda (MRA) 

and the Institute for Media 

and Society (IMS), said in 

a statement in Lagos that it 

had painstakingly studied the 

declaration by the Nigerian 

Army that it would henceforth 

monitor the social media 

for alleged ‘anti-government, 

anti-military and anti-security’ 

information and expressed 

concern that such a move provides 

enormous opportunities 

for abuse of power and the 

violation of the fundamental 

rights and freedoms of Nigerians 

by the military. 

The Director of Defence 

Information, John Enenche, 

said recently during a live 

programme on Channels Television 

that “the move beterrestrial 

and digital satellite 

television channels and offerings 

on the same decoder and 

grant ease of access to switch 

between the options conveniently,” 

Elegbede enthuses. 

By default, both the DTT 

and DTH have comparative 

advantages. But with Combo, 

StarTimes subscribers enjoy 

the combined strength of 

both. DTT is embraced as a 

model for its affordability, low 

weather interference, portability, 

more local channels, easy 

to set up and mobile friendly 

while DTH is desired for its 

sharper and clearer images, 

higher number of international 

channels, resilience and 

widespread strength in remote 

areas. 

“On StarTimes, Nigerians 

can enjoy fantastic movie 

channels like ST Yoruba, 

Iroko 1, Iroko 2, AMC Movies 

and Series, ST Zone, Orisun, 

ST Yoruba, and Bollywood 

channels like Star Plus and 

Zee Cinema. Music channels 

like ST music, Nigezie 

and MTV Base; documentary 

channels like IDX, Nat 

Geo Gold, Nat Geo Wild and 

Discovery Science; news 

channels – Al Jazeera, BBC 

and Bloomberg; ST Novela, 

Wazobia, Fox; Jim Jam, Nickelodeon, 

Baby TV, Fine Living 

and many more,” informs 

StarTimes Content Marketing 

Manager Bose Adewara. 

C002D5556 

BUSINESS DAY 

13 

MEDIABUSINESS 

MB 

PAMED joins protect against monitoring of 

social media activities of Nigerians 

Globacom’s TV series goes on 

air today, exposes activities of 

traditional medicine sellers 

The latest episode of the 

entertaining TV Drama 

Series, Professor Johnbull, 

sponsored by the 

fully integrated telecommunications 

company, Globacom, 

draws attention to the activities 

of traditional medicine practitioners, 

their “one-drug-curesall” 

tendency and the attendant 

effects on public health. 

Entitled Street Doctors, 

the episode exposes the threat 

such quack medical practitioners 

pose to the nation’s public 

health orientation, and calls on 

all to make conscious efforts 

to patronise only registered 

and government approved 

health facilities. It also urges 

pharmaceutical personnel to 

dispense only medications duly 

prescribed by doctors. 

While not totally doubting 

the efficacy of orthodox 

medicine or the relevance of the 

practice in modern day Nigeria, 

Street Doctors proposes that it is 

foolhardy for anyone to believe 

that there is a “one stop drug” 

which cures all ailments including 

“curiosity”, as claimed by the 

peddlers of such wonder drugs. 

Airing on NTA Network, 

NTA International on DSTV 

Channel 251 and NTA on Star- 

Times on Today at 8.30 p.m. with 

a repeat broadcast on Friday on 

the same channels and at the 

came necessary in the light 

of troubling activities and 

misinformation capable of 

jeopardizing the unity of the 

country”. 

He specifically declared: 

“What are we doing? In the 

military, we are now taking 

on it more seriously than ever. 

We have our strategic media 

centres that monitor the social 

media to be able to sieve out 

and react to all the ones that 

will be anti-government, be 

anti-military, (and) be antisecurity”. 

But PAMED said the declaration 

has a lot of grave implications, 

because if the threat 

is carried out it could, among 

others, lead to: The violation 

of the right of freedom of expression 

as constitutionally 

guaranteed for Nigerians and 

as protected by important 

international instruments and 

charters especially the Universal 

Declaration of Human 

Rights, the African Charter on 

Human and People’s Rights, 

and the International Covenant 

on Civil and Political 

Rights, and the incapacitation 

of the media to carry out the 

obligation to monitor governance 

and hold the government 

accountable to the people 

as stipulated in section 22 

of the 1999 Constitution, as 

amended. 

same time, the sitcom, once 

again, lives up to its billing as the 

moral conscience society. 

Parading the lead character, 

Professor Johnbull (Kanayo 

O. Kanayo) alongside other 

regulars of the sitcom like Olaniyi 

(Yomi Fash-Lanso), Caro 

(Mercy Johnson Okojie), Flash 

(Stephen Odimgbe), Samson 

(Ogus Baba), Abadnego (Martins 

Nebo) and Churchill (Jnr. 

Pope Odonwodo), Street Doctors 

also plays up Samson as 

an unrepentant street boy, who 

is full of adventures and whose 

street sense always gets the better 

part of him. Samson lures 

Flash into peddling orthodox 

medicine 

In the episode too, Marvin 

Records star, Reekado Banks, 

makes a brief appearance 

where he effectively acts the 

role of a registered pharmacist, 

who lives by the rules of the 

Hippocratic Oath governing the 

practice of medicine, surgery 

and drugs.



BRANDING 

Home-grown brands show strength in 

top 50 brands table in Nigeria 

Home-grown Nigerian 

brands 

are showing 

strength as 25 

local companies 

have been adjudged as 

top brands among a total of 

50 leading brands in Nigeria 

for 2017. 

Among the local brands 

are Access Bank, Channels TV, 

Coscharis Group, Dangote, 

Globacom among others. 

According to producers 

of 50 top brands, these are 

brands that have been able 

to weather the storms, and 

deliver on their promises. 

“They have good understanding 

of the market, and have 

aggressively worked towards 

meeting the expectations of 

the consumers”. 

The firm also developed 

10 brands to watch. The 10 

brands are though not on the 

Top 50 Brands league table yet, 

but they have shown promises 

and the potentials within a 

period of time. 

Speaking on the brands, 

Taiwo Oluboyede, CEO, top 50 

Brands Nigeria said the exciting 

thing about the brands to 

watch in 2017 is that they are 

mostly homemade brands. 

Some of them include Ajeast, 

Artee Group, CWG, Daraju 

Industries and Payporte. 

He said with the volume of 

Pepsi deepens customer relationship 

with new campaign 

7up Bottling Company, 

maker of Pepsi 

and other brands recently 

introduced a 

new exciting price compliance 

campaign as a market 

strategy to sustain its loyal 

consumers and ignite more 

traction to the brand. 

The campaign ‘No Shaking, 

Carry go’ is emphasizing 

volume and price as 

50cl Pepsi pet bottle is back 

at N100. The campaign is 

coming at a time when consumers 

are divided between 

choice and price as a result of 

economic difficulty. 

In the recent time, consumers’ 

purchasing power 

is low due to inflation and 

recession and Pepsi’s strategy 

is therefore to restore 

retail price of 50 Cl Pepsi at 

N100 to delight consumers’ 

and restore their normal life. 

It is not clear whether this is 

coming at a cost to Pepsi, but 

what may be uppermost in its 

strategy is not to lose its loyal 

consumers. 

The campaign is also designed 

to reinforce the price 

of 50 Cl Pepsi at N100 as, 

according to a source it was 

not the company’s desire 

that retailers sold the product 

beyond N100. Some of the 

retailers may have joined 

the market trend of price 

increases to also inflate the 

price of Pepsi beyond N100, 

the source said. This is also 

what informed the new campaign. 

This normal price 

also applies to other brands 

in 7up stable. These include, 

Mirinda and 7Up. 

To spread the message, 

the owner of the brands has 

taken the campaign to various 

strategic places in Lagos 

and Ibadan including the 

ever busy Lekki Toll gate, employing 

various integrated 

marketing communication 

competition that businesses 

face in most industries, it is 

never been more important 

for brands to stand out and 

develop a unique identity and 

value proposition through 

strategic branding. 

According to Taiwo, a 

healthy brand attracts premium. 

He said research has 

approaches such as below 

the line and above the line 

strategies. 

For more attention, it also 

employed its brand ambassadors 

such as Tiwa Savage, 

Davido, Wizkid and Tecno 

to drive the message in both 

street activations and above 

the line platforms such as on 

BRT buses and billboards 

At the Lekki Tollgate, the 

brand owners, danced and 

shared bottles of Pepsi pet 

bottles to motorists free. 

Initially, some motorists 

thought that the activation 

managers were selling the 

product but when motorists 

realized that the drink was 

free, they grabbed the minerals 

with smiles. 

According to the source 

close to 7up, the intention 

of the brand is to continue 

to refresh consumers with 

affordable product as it underscores 

quality product. 

shown that on average, brands 

account for more than one 

third of shareholder value. 

This suggests that brands have 

a direct impact on company 

earnings. 

“At Top 50 Brands Nigeria, 

we evaluate and celebrate 

top corporate brands that 

have consistently maintained 

leadership position in their 

industries, living their promises, 

and have become a part 

of the popular culture, attracting 

powerful visual cue 

that evokes emotion from the 

people. They have transcended 

their product/services categories 

and mean much more 

to the consumers. They have 

been able to master the art of 

brand building to the point 

earning equity”. 

According to Taiwo, the 

firm used certain factors such 

as brand popularity, category 

leadership, innovation, national 

spread, CSR and online 

engagement to measure 

brands. 

Okhma Global retains marketing right for Calabar Carnival 2017 

The Cross River State 

Carnival & Festivals 

commission on behalf 

of the government 

of Cross River State have 

announced the retention of 

Okhma Global, a leading marketing 

communications consultancy 

based in Lagos, as 

the marketing rights owners 

saddled with the responsibility 

of leading the sponsorship and 

marketing drive for the 13th 

edition of the Calabar Carnival 

and Festival. 

The festival has grown over 

the years to become Africa’s 

biggest and most successful 

tourism destination brand. 

2017 would mark Okhma’s 

third year on the Calabar carnival 

account. 

According to the chairman 

PwC launches second edition of 

Media Excellence Award 

Entries are now being 

accepted for the 

second edition of 

PwC’s Media Excellence 

Awards. According to a 

statement released in Lagos 

by the professional services 

firm, entries for the award 

which celebrates excellence 

in business reporting in Nigeria 

will close on Wednesday 

20 September 2017 with 

the Award gala night slated 

to hold early in October this 

year. 

The award which was 

first held in 2016 is open 

to professional journalists 

in a full time employment 

or freelancers, working in 

Nigeria, who have produced 

a story that falls within the 

categories covered by the 

award and that is available 

on a platform whose primary 

audience is Nigeria. 

A statement from the firm 

further indicates that entries 

will be received in four 

categories including tax, 

capital markets, SMEs and 

of the carnival commission, 

Gabe Onah in a statement, “I 

have had the privilege of having 

served on the commission 

for the last ten years. I can 

say without any equivocation 

that the quality of services we 

have received from Okhma 

over the last three years has 

been greate. You have not 

only tried to raise our stakes 

with sponsors and our other 

stakeholders, but you have also 

7even Interactive wins Loeries 

International Advertising Award 

Nigeria’s 7even interactive 

has emerged 

the only agency in 

West Africa with a 

medal in the “Digital & Interactive 

Communication: Social 

Media category at the just concluded 

Loeries International 

advertising awards which held 

in South Africa. 

According to entries and 

nominations data released on 

the organizers (Loeries) Awards 

website, only three Nigerian 

advertising agencies’ entries 

got shortlisted for the awards. 

At the awards proper which 

held last weekend in Durban, 

South Africa, young but unconventional 

7even Interactive, 

currently in its second year in 

business won a bronze not only 

as the only Nigerian winner in 

the 2017 Loeries prestigious 

annual Advertising awards but 

the only 2017 Loeries winner 

in the West African sub-region. 

The winning work, tagged 

“Frixion Vodka” is a self funded, 

outstanding Corporate Social 

Responsibility (CSR) material 

by the agency in the area 

of digital interactive and social 

media aimed at fighting “Rape”, 

a social ill that transcends geography 

and races. 

The agency through its uncanny 

creativity and use of the 

curiosity and surprise elements 

got frontline Nigerian movie 

stars and social commentators 

to sign unto the project and talk 

about the social ill on the social 

media with a view to raising 

awareness and discourage such 

bestial act and also bring about 

respite to suffers and punishments 

for culprits. 

business/economy reporting 

and all submissions will 

be done online through the 

firm’s website at www.pwc. 

com/ng/media-awards. 

Uyi Akpata, Country Senior 

Partner PwC Nigeria 

says in the statement:“We 

inaugurated this award last 

year as an extension of our 

Corporate Responsibility 

strategy part of which focuses 

on the media. For the 

past four years now, PwC has 

been working to improve the 

quality and practice of journalism 

in Nigeria by building 

the capacity of journalists 

through our annual Capability 

Enhancement Workshops 

for journalists. Our sustained 

effort in this regard is in 

recognition of the very important 

role of the media in 

society and in particular, the 

role that the media in Nigeria 

has and continues to play 

in informing and educating 

the public especially around 

taxation, the capital market, 

SMEs and the economy”. 

added outstanding value by 

enhancing some of the already 

existent offerings within the 

carnival platform, you have 

also helped in creating new 

ones that are not only reflective 

of the present times, but 

also fine -tuned them to meet 

the sponsorship and brand association 

aspirations of many 

participating companies and 

even helped us attract new 

ones.” 

Consequent of this vote of 

confidence by the commission, 

Okhma used the opportunity to 

unveil the marketing plans for 

the 2017 Calabar Carnival and 

Festival based on the theme, 

‘Migration’, as announced by 

Governor Ben Ayade at the 

end of the last edition of the 

carnival. 

Indomie ends 

nationwide search for 

IIDA heroes 

The nationwide search 

and call for entries for 

the 10th edition of the 

Indomie Independence 

Day Award (IIDA); has 

finally come to an end, with a 

total of 195 inspiring and heroic 

stories gathered from different 

States and locations across 

the six geo-political zones of 

Nigeria. 

A breakdown of the stories 

gathered revealed that 120 were 

gotten from the field search 

exercise while the remaining 

75 stories came from online 

portals. A further analysis 

shows that, of the 120 field 

stories, South East topped the 

chart with 29 stories of children 

who have displayed heroic 

attributes even in the face of 

immense danger.


C002D5556 

BUSINESS DAY 

15

16 

BUSINESS DAY 

COMPANIES 

& MARKETS 

Company news analysis and insight 

C002D5556 

Draiklinas says 

Cleaning subsector 

can boost Nigeria’s 

GDP by $1bn 


P 17 

NSE maintains losing streak on 

consumer goods, banks drag 

. . . As analysts forecast sustained decline in coming weeks 

. . . YTD return still positive 

INNOCENT UNAH 

The Nigerian Stock 

Exchange (NSE) 

contracted by 3.12 

per cent last week 

as the All Share 

Index (ASI) and market capitalisation, 

the third consecutive 

weekly decline, as market 

capitalisation closed at N12.24 

trillion and index receded to 

35,504.62. 

The decline followed increased 

selling pressure by 

investors who sought to cash 

in on profits recorded on 

the bourse before the bears 

resurfaced. 

The waned weekly fortune 

of the bourse was underscored 

by losses in the consumer 

goods and banking sectors 

as month-to-date return 

dropped by 0.95 per cent, data 

from obtained from the website 

of the bourse revealed. 

Analysts at Lagos-based 

investment firm Cordros 

Capital, said in their weekly 

market and economic report 

that last week’s market performance 

“broadly reflected the 

absence of any fundamental 

driver since the earnings season 

ended.” 

According to the NSE data, 

the NSE Consumer Goods 

Index was the greatest loser, 

having shed 2.88 per cent compared 

to the previous week. 

Selloffs in Guinness, Nigerian 

Breweries (NB) and Unilever 

subdued the sector. 

Guinness plunged by 7.36 

per cent from the previous 

week, NB dropped 5.25 per 

cent, and Unilever declined by 

4.87 per cent over the previous 

week as these stocks heralded 

a bearish sentiment that ran 

amuck across the sectors. 

The NSE Industrial Goods 

Index was the next highest 

loser, dragged by declined 

fortunes from profit taking 

in Dangote Cement that lost 

5.09 per cent compared to 

the previous week. The NSE 

Banking index suffered a hit 

with a decline of 2.36 per cent 

as profit taking in UBA pushed 

the stock to give up 6.19 per 

cent from its price the previous 

week. 

Gains recorded by some 

sectors of the market could 

not stem the tide of the bears, 

which continued their onslaught 

despite good showing 

by the Insurance and the oil 

and gas sectors. 

The insurance index 

gained 1.90 per centre to come 

back from the loss recorded 

the previous week on the back 

of interest in Continental 

Insurance, Custodian and 

Allied Insurance, and Mansard 

Insurance that pushed 

the stock into the league of 

gainers with 13.95 per cent, 

5.26 per cent, and 2.63 per 

cent surge. 

Other gainers were Total 

and Seplat, whose shares 

jumped 13.01 per cent and 

1.76 per cent, to the delight 

of investors in the oil and 

gas sector; the index posted 

a positive return last week, 

gaining 0.29 per cent versus 

the previous week. 

The NSE traded for four 

days last week as the Nigerian 

Government had declared 

Friday Sptember 1 2017 and 

Monday September4 2017 

as Public Holidays in commemoration 

of the Eid -el- 

Kabir Celebrations. 

Some analysts predicted 

negative outlook for this week 

with the end of earnings season, 

adding that a rebound in 

the market may take a while 

to happen. 

Ayodele Akinwunmi, head 

of research at FSDH Merchant 

Bank, said that the market 

may not see a resurgence 

of the in the next 2 to three 

weeks. 

“Usually we see market 

going down little bit in the 

third quarter of the year. But 

in the last two years we have 

seen a lot of appreciation 

between the month of August 

and September,” Akinwunmi 

said in a meadia chat in Lagos 

last week. “We see people 

positioning to take advantage 

of end of the year earnings 

season sometime around 

October or November.” 

Philip Anegbe, research 

analyst at ARM said that the 

performance of the bourse 

will largely be subdued going 

forward as earnings for the 

remaining part of the year 

may not be as impressive as 

the first half. 

“For the fourth quarter 

(Q4), we are not expecting 

earnings to be that strong,” 

Anegbe said in a media interview 

last week. “Second half 

of the year is not usually as 

strong as the first half.” 

Fidelity Bank beat profit estimates as operating expenses curbed 

BALA AUGIE 

Fidelity Bank Plc reported 

second quarter 

profit that beat estimates 

as the lender’s 

operating expenses were reduced 

to the barest minimum 

amid inflationary pressure. 

For the first six months 

through June 2017, net profit 

rose 66 percent to N9.03 billion 

from N5.45 billion the previous 

year. Analysts had predicted 

N7 billion, according to a BusinessDay 

survey. 

Gross earnings rose 22.13 

percent on a year-on-year 

basis, slightly higher than 

18.22 percent jump in the 

first three months of the year. 

Second-quarter gross earnings 

of about N85.82 billion broadly 

matched analysts’ predictions. 

Fidelity’s interest income 

was up 28.05 percent to N72.85 

billion, thanks to 29.54 percent 

increase in interest earned on 

loans and advances to customers. 

Net interest income moved 

by 11.11 percent to N34.70 billion 

on the back of 100bps expansion 

in net interest margins, 

as asset yield growth outpaced 

the increase in funding costs. 

The Nigerian lender’s stellar 

performance amid a tough 

and volatile operating environment 

has boosted investor 

confidence as they continue 

to buy in to the banks’ stocks. 

Fidelity’s shares have 

gained 60.71 percent since 

the start of the year, compared 

to 32.11 percent return on the 

NSE All Share Index. 

While most lenders in Africa’s 

most populous and largest 

economy are groaning under 

rising operating expenses 

caused by rising inflation and 

regulatory charges, Fidelity 

was able to curb operating 

expenses, thanks to effective 

cost control measures. 

Total operating expenses 

was down 3.05 percent to 

N30.35 billion as at June 2017, 

from N31.45 billion the previous 

year. Staff costs were down 

8 percent to N11.07 billion. 

Although Nigeria’s 16.05 

percent inflation figure for the 

month of July is lower than 

the 16.10 percent recorded in 

June, it is behind the 6-9 band 

targeted by the Central Bank. 

Fidelity is efficient as cost to 

income ratio improved to 67.74 

percent in June 2017 from 74 

percent in June 2016. 

Net margin, another measure 

of efficiency, increased to 

10.48 percent in June 2017 as 

against 7.78 percent recorded 

in June 2016. 

Fidelity has made it easy 

for small and medium scale 

enterprises to access loans 

and grow their businesses. The 

lender has disbursed a total of 

N2.2 billion out of the N220 billion 

earmarked by the central 

bank for Small and Medium 

Enterprises (SMEs). 

SMEs are the wheels of the 

economy as 96 percent of Nigerian 

businesses fall into the 

category of small businesses. 

This compares to 53 per cent 

in the United States and 65 per 

cent in Europe, according to a 

report by the World Bank. 

Fidelity’s total deposit liabilities 

to customers fell by 4 

percent to N761.06 billion in 

the period under review from 

N792.97 billion as at June 2016. 

The Nigerian lender’s capital 

adequacy ratio of 18.40 percent 

gives it the room to pursue 

organic growth. 

ts risk management strategy 

paid off as Non-performing 

loans (NPLs) fell to 5.80 percent 

in June 2017 from 6.60 percent 

as at December 2016. 

Fidelity’s shares closed at 

N1.35 as at close of trading on 

Thursday, valuing it at N39.16 

billion.

16 

COMPANIES & MARKETS 

NIM restates commitment to 

young managers’ development 

… As winners emerge in the 2017 YMC 

Seyi John Salau 

The Nigerian Institute 

of Management 

(NIM) has restated 

its commitment towards 

developing 

young managers in Nigeria as 

winners for the 2017 Young 

Managers’ Competition (YMC) 

emerged recently in Lagos. 

The competition, which is 

the Institute’s way of contributing 

to youth development is an 

annual competition established 

in 1974 under the leadership of 

Olusegun Osunkeye, the then 

MD/ Chairman of Nestle Foods 

Nigeria Plc and president of the 

Institute. 

Munzali Jibril, President/ 

Chairman of Council, NIM, in 

his address said the competition, 

which is open to young 

managers between ages 25 and 

40, was instituted to encourage 

participants with creative and 

research abilities hone their 

skills. 

According to him, YMC will 

enable participants conduct 

Draiklinas says Cleaning subsector can boost Nigeria’s GDP by $1bn 

JOSHUA BASSEY 

BUSINESS DAY 

Draiklinas Limited, a 

corporate and industrial 

cleaning company, 

has highlighted 

the potential of the cleaning 

sub-sector of the facilities management 

(FM) industry, saying 

it can contribute up to $1 billion 

to the Nigerian economy. 

The company’s country manager 

in Nigeria, Afolabi Abraham, 

who stated this said the industry 

can also lift families out of 

poverty by employing at least 

a million people. He stated the 

need for a more deliberate effort 

at structuring, professionalising 

and supporting the cleaning 

industry in Nigeria. 

He spoke in Lagos recently, 

citing industry statistics, Abraham 

stated the cleaning industry 

contributes over GBP 24 billion to 

the UK economy and one of the 

largest employers of labour at 

over 700,000 while the sector is 

estimated at $53 billion employing 

close to two million people 

in the US. 

He reiterated the determination 

to provide the required 

leadership in the sector to engage 

other operators in the 

sector; education; trade & industry 

authorities as well as 

local and multilateral financial 

institutional partners to bring 

attention to the potential locked 

in this sector in contributing 

significantly to GDP growth 

and support the country’s effort 

to get out of recession and 

empower people especially the 

most economically vulnerable 

in a sustainable manner that will 

assure a decent quality of life. 

The company commended 

the efforts of government at instituting 

the National Vocational 

Qualifications level 1 -13 and 

implored the speedy and effective 

implementation of the policy 

by ensuring that key operators 

and stakeholders especially in 

the private sector are consulted 

and engaged on the modalities 

FEC approves construction of $5.8 billion 3,050MW 

Mambilla hydroelectric power plant (Nigeria) 

Nigeria’s Federal 

Executive Council 

(FEC) has approved 

the construction of 

the $5.8 billion Mambilla 

hydroelectric power plant by 

the China Civil Engineering 

Construction Corporation 

(CCECC). 

According to the Babatunde 

Fashola, minister of power, works 

and housing, 85 per cent of the 

funding for the project will come 

from China’s export-import bank 

while the Nigerian Government 

will provide the remaining 15 

per cent. 

Located on the Donga River 

in the eastern Taraba State, the 

project is expected to take up 

to 6 years to complete. The construction 

of the 3,050-megawatt 

Mambilla hydroelectric plant 

was announced over three decades 

ago. 

“The scope of works is very 

extensive; it requires the construction 

of four dams. It will 

involve a lot of preparatory work 

(and) resettlement. It will also 

help Nigeria strike a very big blow 

on the climate change issue,” 

Fashola said. 

Whereas several administrations 

promised to commence 

work on the project, having 

signed contracts and memoranda 

of understanding, nothing 

was actually done. 

The government believes 

independent in-depth research 

into management related problems 

with a view to proposing 

new solutions. “In addition, the 

competition was established 

to create a corps of young men 

and women who can distinguish 

themselves in conducting studies 

in different areas of human 

endeavour in the hope that 

such propositions would help 

development in all its ramifications,” 

he said. 

Speaking further on the 

competition, Munzali said it 

presents participants an opportunity 

to demonstrate their 

knowledge of management, 

originality of thought and ability 

to communicate their ideas 

logically. 

While encouraging healthy 

rivalry among young managers, 

the competition exposes them 

to stimulate positive, analytical 

and professional research writing 

on management issues 

relevant to the Nigerian environment. 

“Participants were allowed 

to choose their topics from identified 

areas of Sales and Marketing, 

Production Management, 

Human Resource Management, 

Logistics, Management Information 

System, Cost and Management 

Accounting, Financial 

Management, and Environment, 

Health, Safety and Social 

Responsibility,” Munzali stated. 

Tony Fadaka, Registrar/ 

Chief Executive, NIM in his 

closing remarks said the 2017 

edition serves as a pilot test for 

the newly repackaged Young 

Managers’ Competition. 

“We hope to expand the 

scope, duration and size of 

participants, going forward, to 

make it the best intellectuallybased 

and most sought-after 

management reality show in 

the country. We believe that 

well-meaning individuals and 

corporate organisations will 

support us in this direction by 

supporting the competition,” 

he said. 

The competition usually saw 

the emergence of a national 

champion, between the six 

persons who had won in the 

six geopolitical zones of the 

country. 

for professionalising the operators 

in the sector to ensure the 

implementation is aligned with 

the overarching objective of 

strengthening the sector and 

raising the profile of the sector as 

potential significant contributor 

to the national economy. 

In recognition of the contributions 

of the important resource 

within the cleaning industry, 

Valentine Mbachu, one of 

the staffers, was rewarded as the 

2017 service ambassador for the 

company. He is a cleaner who in 

addition to gifts by the company 

was also rewarded with an allexpense 

paid trip to Dubai by a 

technology partner and TAMS 

supplier to Draiklinas Limited 

for being the most punctual and 

most productive janitorial operative 

for the past year. 

The company also recognised, 

Jude Mmaduwuba for 

his long service to the company 

and unwavering commitment 

to excellent service for the past 

13 years. 

that once completed, the project 

could provide the muchneeded 

energy to the country. 

But environmental groups 

have expressed concerns about 

the project. 

“Many fear that Mambilla 

will go the way of previous large 

development projects (including 

large hydropower projects) 

where contracts are meted out 

but projects are never built,” the 

International Rivers campaign 

group said on its official site. “If 

the Mambilla dam project does 

continue, it could mean disastrous 

environmental and social 

impacts for those already living 

in poverty along the banks of the 

Benue River.” 

Business Event 

C002D5556 


L-R: Leke Alder, CEO, Alder Consulting; Doug De Villiers, CEO Intergroup, South Africa; Yomi Badejo- 

Okusanya, Managing Director, CMC Connect; Tunji Olugbodi, Executive Vice Chairman, Verdant Zeal; and 

Tijjani Borodo, Company Secretary, FBN Holdings Plc at therecently concluded NBA Conference in Lagos. 

R-L: Abike Dabiri-Erewa, senior special adviser to the president on Diaspora and Foreign Affairs; Ozena 

Utulu, team member, Heritage Bank’s Brand Management & Compliance Unit; Habu Mamman, State 

Sole Administrator Yamkri Game Reserves, representative of Buachi State Governor, Mohammed 

Abubakar and Rabbi Halevi, executive director, PANAFEST and Member Diaspora Festival Badagry, 

during the 2017 edition of Diaspora Festival Badagry, titled, “Door of Return Ceremony Badagry,” which 

was co-sponsored by Heritage Bank Plc 

L-R: Uche Jombo, show co-anchor; Julius Akanwa, Zack Adume, both are Glo subscribers and quiz 

winners, and Ebube Nwagbor, show co-anchor, at the Suleja, Niger State edition of the ongoing nationwide 

comedy tour, Glo Laffta Fest. 

L-R: Ezekiel Iyi Omisore, celebrant; Adedotun Aremu Gbadebo III, Alake of Egbaland/royal father of 

the day, and RilwanAkinolu, oba of Laggos/ royal father of the day, during the Omisore 90th birthday 

Symposium, with the theme “Sustainability in the Built Environment: The Nigerian Perspective” in 

Lagos. 

Pic Olawale Amoo



C002D5556 

INTERVIEW 

John Buck: Influencing and negotiating for value 

creation in turbulent times and in prosperity 

UK Ambassador 

John Buck is an 

experienced and 

capable facilitator 

between business 

and governments. His vast experience 

qualifies him in the fields 

of energy; EU and UN issues; 

Southern and South East Europe; 

international negotiation; 

alternative dispute resolution, 

mediation, foreign policy, diplomacy, 

corporate diplomacy, 

government relations. 

Following an early career as 

a probation officer and social 

worker, John spent more than 

25 years with the British Diplomatic 

Service (including as 

British Ambassador to Portugal) 

before joining a leading British 

energy company as Group Director, 

Government and Public 

Affairs. He now represents clients 

in their negotiations and 

dealings with governments. He 

also delivers executive training 

in negotiation and diplomatic 

skills to senior representatives 

of international organisations. 

During his Foreign Office 

career, John was involved in EU, 

UN and human resource issues 

and was posted to Bulgaria, 

Cyprus and Portugal. He was 

Principal Private Secretary to 

successive Cabinet Ministers in 

the Cabinet Office and Director 

for Iraq in the FCO during the 

year following the 2003 military 

intervention. John’s final post 

from 2004-2007 was as Ambassador 

to Portugal, where he 

focused on EU issues and supported 

partnerships between 

British and Portuguese companies 

in the IT, renewable energy 

and water sectors. 

During his time in the energy 

industry John had responsibility 

for a global network of government 

relations specialists in 

the company’s most important 

overseas assets. Specific projects 

included developing an 

improved framework for the 

assessment and mitigation of 

political risk; advising on the 

political context in West African 

countries; building relationships 

with the authorities in 

South American countries to 

support the company’s commercial 

partnerships; deepening 

government relationships 

in Central Asia to underpin 

operations and business development; 

and ensuring good understanding 

of UK Government 

policy, levering UK Government 

resources when necessary to 

support the company’s ambitions 

and operations overseas. 

Excerpts: 

Tell us about TEXEM 

These Executive Minds 

(TEXEM) pride themselves on 

their ability to customise programmes 

for their clients and 

John Buck is the founding director of Ambassador Partnerships and former 

director of British Gas 

TEXEM have a deep understanding 

of Africa. Also, TEXEM and 

its world class faculty partners 

have a very good grasp of contextual 

realities of Africa vis-à-vis 

fragile institutions, resource dependence, 

limited infrastructure 

and the huge size of government. 

TEXEM’s forthcoming 

programme on influencing and 

negotiating for value creation in 

turbulent times and in prosperity 

would be delivered by me and 

General Nick Parker (formerly 

commander in chief, land forces) 

at the Intercontinental Hotel, 

Victoria Island, Lagos on the 6th 

and 7th of September, 2017. (For 

more information, please email 

exec@texem.co.uk. Please allow 

me to share with you some of 

TEXEM’s unique selling points: 

-Good reputation in offering 

tailored, relevant and contextrich 

executive education programmes 

which is relevant and 

has impact on the bottom line. 

-Network of key stakeholders 

in Europe and North America 

that we have worked with in the 

past, which we could deploy 

towards delivery of executive 

development programmes. 

-Impressive track record on 

customer satisfaction with 60% 

of our delegates being repeats 

customers. 

-Understanding of the challenges 

that organisations face 

and committed, distinguished 

advisory board, which have a 

passion for the growth of Africa. 

-Great networking opportunities 

with very senior executives 

as participants and over six hundred 

years of experience of participants 

and faculties in every 

programme thus steepening the 

learning curve of participants via 

peer to peer learning moderated 

by world renowned faculties. 

You are in Lagos next 

week to lead, with General 

Sir Nick Parker, a session 

of TEXEM’s Executive Programme. 

It will focus on negotiation 

skills. What are the 

aims of the course? 

Much of business, indeed 

much of life, comes down to 

negotiation – how to achieve 

compromises that satisfy your 

interests. Negotiation skills and 

techniques are in that sense for 

life as well as business, easily 

transferrable from one context 

to another. We aim to enhance 

the negotiation skills of senior 

Nigerian executives, drawing on 

our international military, diplomatic 

and business experience. 

Participants will understand the 

importance of developing options 

and levers. They will have 

an opportunity to apply, in an 

international context, specific 

interpersonal skills for successful 

negotiation - how to anchor 

a negotiation, how to frame and 

reframe the discussion, how to 

seek information effectively. We 

will focus on the importance of 

establishing credibility, honesty 

and trust. More broadly, we will 

discuss the connection between 

successful business negotiation 

and the building of peace and 

prosperity. 

How will the course help 

Nigerian participants lead 

their organisations? 

Business leaders in today’s 

world have a difficult job. The 

age of the instinctively dominant 

leader who simply tells others 

what to do seems to me over. Yes, 

a business leader must set a clear 

direction. But a successful leader 

will do that through a process 

of listening and consultation, 

inside and outside the business, 

to understand the wider context 

and the perspective of others. 

He, or increasingly she, will set 

a collaborative tone, seek mutually 

beneficial partnerships, 

understand how to manage 

and benefit from cultural differences. 

He or she will establish an 

ethical culture by setting a strong 

example and seeking fair and 

balanced solutions. The course 

will cover all these issues, and 

good negotiating skills are at 

their heart. 

Do you think Nigerian 

leaders have the skills for 

international influence? 

Well, I’m not an expert on Nigeria. 

That said there are clearly 

some very successful Nigerian 

businesses with international 

impact, and that requires skilful 

leadership. But Nigeria remains 

a developing country with many 

challenges. It’s way down the UN 

Development Index, below the 

Indian subcontinent, below the 

Congo, Burma and Syria. Its GDP 

per head, in real terms no higher 

than in 1960. It presents a daunting 

prospect for potential foreign 

investors. Enhanced negotiation 

skills are no panacea for all 

these complex challenges, but 

if business leaders - and indeed 

political and administrative 

leaders – improve these skills, 

that can only help in terms of 

business success, international 

influence and overall development. 

After all, every one of us 

has room for improvement, in 

this and other areas. 

In your experience, how 

far do leaders with little or no 

negotiating skill go? 

I think we can all point to 

people, in organisations we’ve 

worked in, who’ve gone a surprisingly 

long way without apparently 

the skills you might 

expect. Sadly, that even seems 

to be the case with one or two international 

political leaders right 

now. For them, negotiation is all 

about ‘I win, you lose’. In my experience 

that’s not how successful 

negotiation works. Successful 

negotiation, particularly in an 

international political or business 

context, is about designing 

arrangements of shared benefit 

that can underpin a continuing 

relationship. I think those 

without the necessary skills, 

including negotiation skills, get 

found out. They fail to establish 

the necessary relationships or 

achieve the optimal solutions 

necessary for business - or indeed 

international political 

- success. Perhaps we’re seeing 

that process at work right now 

on the international stage. 

What was your experience 

working with TEXEM at Henley 

Business School? 

I led the introductory session for 

TEXEM’s course at Henley Business 

School last year. I didn’t participate 

in the rest of the course, though I 

understand it was very successful. I 

would certainly have expected that 

to be the case, given Henley’s international 

reputation. What struck me 

was how interested, engaging and 

lively the participants were. As always 

on these courses, they learn as much 

– no, I won’t be too modest: almost 

as much - from each other as they do 

from the course leaders. It was great 

fun to meet such an engaging group 

of people, and it makes me very optimistic 

about Nigeria’s future. 

Why should Executives attend? 

Please allow me to share some 

testimonials from previous delegates 

of TEXEM and please you be the 

judge. 

Testimonials 

“Highly interactive and very practical; 

high profile speakers with excellent 

pedigree and track record of 

professional achievements; provided 

networking among participants”, said 

previous TEXEM delegate, Dayo 

Babatunde, Senior Partner, Ernst 

and Young. 

“I regard the These Executive 

Minds Executive Education programme 

as the best I have attended 

in recent times. Not one of them, but 

the very best as it was humanly perfect” 

said previous TEXEM delegate, 

Peter Atolo Irene, CEO, International 

Energy Insurance Company. 

“The content of the programme 

has been rich and educative, refreshing, 

enlightening and thought 

provoking. I enjoyed this programme 

and I am looking forward to another 

programme, said previous TEXEM 

delegate, Andy Uwejeyan, Managing 

Director A&J Construction Company 

Ltd. 

“I found this programme very, 

very rewarding. In the past I always 

had a way of thinking that the matter 

of sustainability related only to policy 

matters but during this programme, 

it has been broken down into the 

company level and for me there are a 

number of take-aways that I hope to 

begin implementing once I get back 

home”, previous TEXEM delegate, 

Frank Aigbogun, CEO and Publisher 

Businessday 

“My experience in this programme 

has been quite enormous…The organisers, 

we saw that they prepared 

for us and they were quite good, quite 

sociable, and quite academic and we 

had discussion platforms that were 

divided into groups. On a general 

note, TEXEM is laying a foundation 

that will grow like an iroko tree. On 

this note I want to thank the CEO 

of TEXEM, Alim Abubakre and his 

colleagues for making it possible for 

us to attend”, said previous TEXEM 

delegate, Godson Mark Torukuru – 

Chair Bayelsa State Internal Revenue 

Service


BUSINESS DAY 

Cowry Weekly Financial Markets Review & Outlook 

19 

ECONOMY: July Inflation Rate Slows to 16.05% on Core 

Inflation; Economy Expands in August… 

EQUITIES MARKET: NSE ASI Closes in Negative Territory on 

Banking, ConsumerGoods, Industrial Stocks… 

In the just concluded week, July inflation report released by the National 

Bureau of Statistics showed Nigeria’s consumer prices decreased year-on-year by 

16.05% (easing from a 16.10% increase in June). The sustained decline in headline 

inflation followed a faster y-o-y decrease in core inflation to 12.21% in July (from 

12.50% in June) which reduced the impact of a faster y-o-y rise in food inflation to 

20.28% in July (from 19.91% in June). The sustained increase in food inflation could 

be attributed to the current planting season. Meanwhile, the average prices per 

litre of major fuels continued to moderate – PMS, AGO and HHK tanked monthon-month 

by 1.39%, 6.08% and 2.36% to N148.2, N197.62 and N280.49 respectively. 

The index for “transport” inflation rate also moderated y-o-y to 11.74% in July (from 

12.25% in June), “imported food” inflation accelerated slower y-o-y to 14.08% in 

July (from 14.19% in June), while “housing water, electricity, gas and other fuel” 

inflation rate slowed to 9.56% in July (from 10.90% in June). However, “clothing 

and footwear” inflation rose faster y-o-y to 15.77% in July (from 15.73% in June). In 

a related development, the August 2017 survey report on purchasing and supply 

executives from manufacturing and non-manufacturing businesses recently 

released by Central Bank of Nigeria showed sustained, but slower, expansions in 

both the manufacturing and non-manufacturing businesses. Sustained expansion 

in the real sector continued to indicate a soon exit from the country’s five month 

long economic recession. The boost in real sector activity could be partly attributed 

to growing demand for goods and services on the back of improving purchasing 

power domestically. This, coupled with favourable ongoing economic reforms to 

improve the business environment, led to a strengthening of business sentiment. 

The reforms include efforts by monetary authority at improving foreign exchange 

supply to end users. According to the survey, the manufacturing composite PMI 

stood at 54.1 index points in August 2017 (better than 54.1 index points in July 

2017), the fifth consecutive expansion. The increase in manufacturing composite 

PMI was driven by expansion in new orders, to 52.3 in August (slower than 52.7 in 

FOREX MARKET: Naira/USD Rates Appreciate Across 

Most Market Segments… 

In the just concluded week, the Central Bank of Nigeria (CBN) injected 

USD250 million into the interbank foreign exchange market. In the wholesale 

segment of the market, CBN auctioned USD100 million while the Small and 

Medium Enterprises (SMEs) and the Invisibles segment received USD85 million 

and USD65 million respectively. However, the interbank exchange rate (NIFEX) 

remained unchanged at N330/USD. In other segments, the Naira appreciated 

week-on-week (w-o-w) at the Bureau De Change and Parallel market segments 

by 1.36% and 1.35% to N362/USD and N365/USD respectively. It however 

depreciated at the Investors & Exporters Forex and Window (I&E FXW) by 0.03% 

to N359.67/USD. In the forwards market, the spot contract depreciated w-o-w by 

0.02% to N305.85/USD. However, the 3 months, 6 months and 12 months forward 

contracts appreciated w-o-w by 0.27%, 0.34% and 0.10% to N377.4/USD, N397.17 

MONEY MARKET: NIBOR Falls Across All Maturities on 

Sustained Liquidity Ease… 

In the just concluded week, CBN auctioned treasury bills via primary and 

secondary markets totalling N211.77 billion, viz: 91-day bills worth N26.14 billion 

(Stop Rate [SR] fell to 13.30% from 13.42%); 182-day bills worth N30.00 billion 

(SR fell to 17.36% from 17.40%); 364-day bills worth N137.00 billion (SR fell to 

18.52% from 18.53%); 175-day bills worth N18.58bn and 177-day bills worth 

N0.05 billion. A part of these was offset by matured treasury bills worth N88.14 

billion. However, NIBOR fell across all of the maturities: NIBOR for overnight 

funds, 1month, 3 months and 6 months fell w-o-w to 9.03% (from 11.32), 19.09% 

(from 19.88%), 21.39% (from 22.71%) and 22.77% (from 23.61%) respectively. This 

was as the impact of the Federation Accounts Allocation Committee’s (FAAC) 

disbursement of N467.8 billion to the three tiers of government last week was 

felt by the financial system. Similarly, NITTY fell for all the maturities– yields 

on the 1month, 3 months, 6 months and 12 months maturities fell to 17.01% 

from (18.28%), 19.66% (from 20.30%), 19.48% (from 20.38%) and 22.20% (from 

22.39%) respectively. 

This week, we expect maturities via secondary market worth N135.41 

BOND MARKET: FGN Bond Prices Decline Across Most 

Maturities… 

In the just concluded week, prices of FGN bonds traded at the OTC segment 

fell for most maturities amid sustained profit taking; the 20-year, 10% FGN JUL 2030 

paper, the 10-year, 16.39% FGN JAN 2022 debt and the 5-year, 14.50% FGN JUL 2021 

debt depreciated w-o-w by N0.06, N0.31 and N0.69 respectively; corresponding yields 

rose to 16.62% (from 16.61%), 16.47% (from 16.37%) and 16.77% (from 16.51%). 

However the price of the 7-year, 16.00% FGN JUN 2019 appreciated by N0.34 with 

the corresponding yield falling to 16.67% (from 16.89%). Elsewhere, FGN Eurobonds 

traded on the London Stock Exchange appreciated in value for all of the maturities 

amid sustained bargain hunting. The 10-year, 6.38% JUL 12, 2023 and 5-year, 5.13% 

JUL 12, 2018 bonds appreciated by USD0.74 (yield fell to 5.24% from 5.39%) and 

USD0.14 (yield fell to 3.29% from 3.49%) respectively. In addition, a 10-year FGN bond 

worth N20.00 billion matured in the just concluded week; hence, we anticipate boost 

in liquidity with attendant increase in bond prices at the OTC market in the new week. 

July); expansion in production level to 57.4 in August (from 59.3 in July); and a faster 

expansion in purchase of raw materials/inventories, to 54.9 in August, following 

an expansion of 53.6 in July. In the same vein, the index for employment showed 

sustained increment, to 51.5 in August (compared to 51.8 in July) while supplier 

delivery times shortened, to 52.0 (more than 51.3), possibly due to improved capacity 

at input suppliers’. Expansion in input prices increased to 64.9 (from 64.1) even as 

output prices expanded slower to 58.8 (from 60.4). Of the sixteen manufacturing 

sub-sectors under survey, twelve sectors recorded expansions (better than eleven 

in the preceding month) – manufacturers of ‘Cement’, ‘Chemical & pharmaceutical 

products’, ‘Food, beverage & tobacco products’ and ‘Textile, apparel, leather & 

footwear’ recorded expansions: of 51.2 (from 64.1), 60.9 (from 59.9), 53.2 (from 56.5) 

and 56.5 (unchanged) respectively. On the other hand, the non-manufacturing 

sector extended its advance as the non-manufacturing composite PMI increased 

to 54.1 in August 2017 (from 54.4 in July 2017). This was partly driven by expansion 

in business activity and incoming business to 56.1 in August (albeit slower than 

56.8 in July) and 53.5 (faster than 55.1) respectively; while employment level and 

work in progress expanded, to 54.4 (better than to 54.0) and 52.3 (from of 51.9) 

respectively. Of all eighteen non-manufacturing sub-sectors under survey, sixteen 

sectors recorded expansions (less than sixteen in the preceding month): notably, 

‘Agricultural’, ‘Finance & Insurance’ and ‘Wholesale & retail trade’ sectors saw 

expansions of 56.8 (from 63.1), 58.4 (unchanged) and 53.2 (from 52.5) respectively. 

and N435.18/USD resepctively. 

This week, we expect that CBN’s continued intervention in the interbank 

segment and increasing investor confidence would lead to further stability of the 

Naira/USD exchange rate. 

billion viz: 345-day bills; hence, we look forward to further financial system 

liquidity ease and resultant decline in interbank rates. 

Cowry Weekly Stock Recommendations As At Thursday 31 August 2017 

The Nigerian bourse continued bearish as the twin market performance 

measures, NSE ASI and market capitalization dropped w-o-w by 312bps each to 

close at 35,504.62points and N12.24trillion respectively. On a year-to-date basis, the 

NSE ASI and market capitalization increased by 3,211bps and 3,234bps respectively. 

On the sectoral front, the NSE Banking Index, the NSE Consumer Goods Index and 

the NSE Industrial Index all underperformed, losing 236bps, 288bps and 248bps to 

close at 439.69points, 946.88points and 2,051.96 points respectively. On the other 

hand, the NSE Insurance Index and the NSE Oil/Gas Index increased by 190bps and 

29bps respectively to close at 137.54points and 298.93points. Meanwhile, transacted 

volumes fell w-o-w by 35.03% to 0.99 billion shares while Naira votes and total deals 

fell by 52.70% and 28.98% to N11.46 billion and 13,626 deals respectively. On the 

sidelines of trading activities, Stanbic IBTC Holding Plc (H1 June 30, 2017) recorded 

a 36.28% increase in gross earnings to N97.20 billion as trading revenue grew to 

N11.97 billion. In addition, profit after tax stood at N24.11 billion rising 113.06% from 

the same period in 2016. An interim dividend of N0.60 per share was proposed. This 

week, we expect a mix of profit taking and bargain hunting activities. 

POLITICS: AGF Abubakar Malami Goes Soft on Hate 

Speech Propagators… 

In the just concluded week, the Federal Government, through the Attorney 

General of the Federation (AGF) and Minister of Justice, Mr. Abubakar Malami 

(SAN), recently requested the court to withdraw the bail conditions granted to the 

leader of the Indigenous People of Biafra (IPOB), Nnamdi Kanu,for violation of his 

bail terms. However, the AGF’s request was met with accusations of bias for failure 

to also arrest leaders of the Arewa Youth Consultative Forum – the proponents 

of the quit notice to Nigerians of South-east extraction residing in the Northern 

part of the country – along with the propagators of hate speech. According to Mr. 

Malami, the decision to go soft on the association and the propagators of hate 

speech in the North was due to the Federal Government’s consideration of “the 

security implications on the issue”. We consider the excuse given by the AGF not 

to hold water as it is unjustifiable not to apprehend a group which had clearly 

begun to carry out their threat by propagating hate speech, while on the other 

hand, seek to apprehend another which so far has made its demands in a nonviolent 

way. The excuse also adds credence to the narrative that there appears to 

be political bias in favour of one section of the country over others. We expect that 

for the current administration to succeed in bringing everyone onboard its latest 

crusade against hate speech, it needs to be perceived as treating cases based on 

their merits and not based on ethnic colourations. Meanwhile, following his return 

to the country after spending 103 days in London on medical treatment, President 

Muhammadu Buhari, for the first time in five months, presided over the meeting of 

the Federal Executive Council (FEC) on Wednesday. We seize this platform wish Mr. 

President full recovery as he grapples with presiding over the affairs of the nation. 

Disclaimer 

This report is produced by the Research Desk of Cowry Asset Management 

Limited (COWRY) as a guideline for Clients that intend to invest in 

securities on the basis of their own investment decision without relying 

completely on the information contained herein. The opinion contained 

herein is for information purposes only and does not constitute any offer 

or solicitation to enter into any trading transaction. While care has been 

taken in preparing this document, no responsibility or liability whatsoever 

is accepted by any member of COWRY for errors, omission of facts, and any 

direct or consequential loss arising from the use of this report or its contents. 

Cowry Asset Management Limited (Member of the Nigeria Stock Exchange) 

Plot 1319 Karimu Kotun, Victoria Island Lagos Tel: +234-1-2715008-9; +234-1-2716614-5 www.cowryasset.com

C002D5556 



businessday 

EDUCATION 

Weekly insight on current and future trends in education Higher Primary/Secondary Human Capital 

Two mindsets: fostering growth mindset 

among learners ensures lifelong education 

STEPHEN ONYEKWELU 

Recent studies have shown 

that for learning and personal 

development to 

be sustained outside the 

confines of academic institutions, 

teaching methods would 

have to serve as catalysts enhancing 

growth mindset. 

The view anyone adopts of themselves 

profoundly affects the way 

they lead their lives. There are two 

kinds of mindset with varying effects 

on learning: the fixed mindset 

and the growth mindset. The former 

makes the learner believe their 

qualities are carved in stone and creates 

an urgency to prove oneself over 

and over. The fixed mindset assumes 

that you have only a certain amount 

of intelligence, a certain personality, 

and a certain moral character and 

puts pressure on individuals to continually 

prove they possess a healthy 

dose of these qualities. 

One manifestation of the fixed 

mindset is the tendency to believe 

that people’s Intelligence Quotient 

(IQ) scores told the whole story of 

who they were, unlike Alfred Binet, 

the inventor of the IQ test. Binet, 

a Frenchman working in Paris in 

the early twentieth century, designed 

this test to identify children 

who were not profiting from the 

Paris public schools, so that new 

educational programmes could be 

designed to get them back on track. 

“A few modern philosophers assert 

that an individual’s intelligence 

is a fixed quantity, a quantity which 

cannot be increased. We must 

protest and react against this brutal 

pessimism. With practice, training, 

and above all, method, we manage 

to increase our attention, our 

memory, our judgment and literally 

to become more intelligent than we 

were before” wrote Binet in one 

Meadow Hall Educamp focuses on teacher training, enters edition nine 

STEPHEN ONYEKWELU 

Meadow Hall Educamp, 

an annual educational 

event designed to improve 

the quality of education 

in Nigeria and organised by 

Meadow Hall Consult, during its ninth 

edition focused on ‘People, Purpose 

& Passion: The Pathway to Success’ 

with many members of the education 

sector, local and international in 

attendance. 

Educamp is three-day residential 

training programme targeted at all 

members of the education sector. It 

provides an enabling environment 

for key educational stakeholders to 

network and share ideas on the best 

education practices. Like last year, 

this year’s edition took place in Lagos, 

August 30 to September 1 and is due 

to begin in Port Harcourt September 

5-6. To register, visit http://meadowhallconsult.com/educamp-porthacourt-2017. 

Teachers arrived to take part in a 

of his major books, Modern Ideas 

About Children. 

Carol S. Dweck, professor of psychology 

at Columbia University, USA 

and one of the leading researchers in 

fields of personality, social psychology, 

and developmental psychology, 

narrated an experience with her 

sixth-grade teacher, Mrs Wilson, 

who ran the classroom rigidly along 

a fixed mindset paradigm. 

Leaners were seated around 

the room in IQ order, and only the 

highest-IQ students could be trusted 

to carry the flag, clap the erasers, or 

take a note to the principal. Aside 

from the daily stomachaches she 

provoked with her judgmental 

stance, she was creating a mindset in 

which everyone in the class had one 

consuming goal; look smart, do not 

look dumb. The emphasis was not 

placed on learning. 

On the reverse side of the mindset 

coin is the growth mindset, which is 

based on the belief that one’s basic 

bouquet of courses, such as ‘Critical 

thinking and problem solving’, ‘Emotional 

intelligence,’ as well as specific 

courses to improve their productivity 

and that of the students, such as 

‘Creating an outstanding classroom’, 

‘Effective use of data for teaching 

and learning’, ‘alternative discipline 

methods for high school students’ 

and much more. The classes were 

vibrant and extremely engaging, with 

the speakers leaving room for dialogue 

with the intrigued participants. 

The participants listened to inspirational 

keynote speakers such as 

Kehinde Nwani, GMD/CEO, Meadow 

Hall Group; Lolu Akinwunmi, Group 

CEO, Prima Garnet, and Folasade 

Adefisayo, Principal Consultant/CEO, 

Leading Learning Ltd. 

These speakers persistently 

touched on the theme of the programme, 

asking participants what 

their ‘Passions’ are, what their ‘Purpose’ 

is and how they interact with 

‘People’ and build relationships. 

Nwani and Akinwunmi both spoke of 

the importance of teachers educating 

their students ‘ethically as well as academically’. 

Adefisayo spoke about the 

massive influence teachers have on 

their students as ‘leaders’ “a teacher’s 

impact on society is everlasting, so it is 

important to take your leadership role 

very seriously, she said. 

The Meadow Hall Group is passionate 

about the holistic development 

of children and committed to 

raising excellent, Godly and wellrounded 

children who will attain 

their full potential and use their skills 

and knowledge to affect their nation 

positively. However, they understand 

that the key to this process is developing 

teachers to be the best they can be 

in all aspects. 

As part of the highlights of Educamp 

2017, the winner of the Inspirational 

School Leaders Awards 2017, 

Remi Tanimola, of Army Children Senior 

High School, Ikeja and the winner 

of the Inspirational Teachers Awards 

2017, Odueke Abiodun Kafilat of Station 

Junior Grammar School, Iju were 

invited to share their inspirational 

stories with the participants. 

qualities are things they can cultivate 

through sustained effort and focus. 

People may differ in every which 

way, in their initial talents and aptitudes, 

interests, or temperaments; 

everyone can change and grow 

through application and experience. 

People with the growth mindset 

do not necessarily believe anyone 

can be anything, that anyone with 

proper motivation or education 

can become Einstein or Beethoven. 

But they believe that a person’s true 

potential is unknown (an unknowable); 

that it is impossible to foresee 

what can be accomplished with 

years of passion, toil and training. 

Charles Darwin, an English naturalist, 

geologist and biologist, best 

known for his contributions to the 

science of evolution and Leo Tolstoy, 

a Russian writer who is regarded as 

one of the greatest authors of all time 

were considered ordinary children. 

Ben Hogan, one of the greatest golfers 

of all time, was completely uncoordinated 

and graceless as a child. 

Growth mindset fosters the 

belief that cherished qualities can 

be developed, which creates passion 

for learning. The passion for 

stretching oneself and sticking to it, 

even (or especially) when it is not 

going well, is the hallmark of the 

growth mindset. This is the mindset 

that allows people to thrive during 

some of the most challenging 

times in their lives. 

On one hand, people in growth 

mindset do not just seek challenge, 

they thrive on it. The bigger the 

challenge, the more they stretch. 

On the other hand, people with 

fixed mindset thrive when things are 

safely within their grasp. If things get 

too challenging, when they are not 

feeling smart or talented, they lose 

interest. People with fixed mindset 

expect ability to show up on its own, 

before any learning takes place. After 

all, if you have it you have it, and if 

you do not you do not. 

L-R: Moses Mogbolu, senior marketing manager, Meadow Hall Group; Charles Imevbore, executive director, business affairs, 

Meadow Hall Group; Lolu Akinwunmi, Group CEO, Prima Garnet Africa, and Ola Opesan, executive director, academic 

affairs, Meadow Hall Group, at EDUCAMP 2017 hosted by Meadow Hall Consult in Lekki, Lagos recently. 

How Abdulkareem appointed 

as new Unilorin VC 

SIKIRAT SHEHU, Ilorin 

The appointment of Suleiman 

Age Abdulkareem as 

the new Vice Chancellor of 

University of Ilorin, was announced 

August 28, by the chairman 

of the University Governing Council, 

Abdullahi Jubril Oyekan at the University’s 

Council Chamber. 

Oyekan noted that the tenure of 

Abdul-Ganiyu Ambali, the current 

VC, will end October 15, 2017, which 

prompted council to start a process 

leading to the appointment of a new 

VC by announcing the vacancy in two 

national Newspapers on Friday, April 

14, 2017. The advertisement was also 

placed on the university’s website and 

weekly bulletin. 

Subsequently, the selection board 

considered based all the applications 

received and shortlisted candidates 

based on the various parameters 

indicated in the advertisement. 

The selection board later interacted 

with the shortlisted candidates 

over a period of three days from 

Wednesday August 23 to 25, 2017. At 

the end of the exercise, the selection 

board forwarded its recommendation 

to council for further consideration. 

At its meeting on Monday August 

28, 2017, council, in accordance with 

the university Act and the provisions 

of the universities (miscellaneous 

Provisions) (amendment) Act 2003, 

considered the recommendation of 

the selection board and “I am happy 

to announce that the council approved 

the appointment of Sulyman 

Age Abdulkareem as the 10th VC of 

the university of Ilorin. The appointment 

is to take effect from October 16, 

2017,” said Oyekan 

Suleiman Age AbdulKareem, who 

is of the Department of Chemical 

Engineering of the University, is a 

Professor of Polymer Chemistry and 

also a former Vice Chancellor of the 

Al-Hikmah University. 

Osun to train 5,000 teachers annually 

BOLA BAMIGBOLA, Osogbo 

Osun state government 

recently said it had embarked 

on the training of 

5,000 teachers annually as 

part of its programmes to enhance 

human capital and capacity development 

in the education sector. 

The state’s commissioner for 

Adelani Baderinwa, Information 

and Strategy, said the teachers are 

being trained in Mathematics while 

headmasters and teachers are undergoing 

training in Information and 

Communication Technology (ICT). 

Baderinwa, who spoke at a lecture 

marking Press Week of the Nigeria 

Union of Journalists (NUJ), Osun 

state Information chapel, noted that 

Osun state government presently has 

15,000 teachers in its employment. 

“This means that in three years, 

all the teachers would have benefited 

from one form of training or 

the other, according to the State 

Universal Basic Education Board”, 

Baderinwa said. 

Baderinwa said the government 

would also build ICT centres in the 

modern schools across the state to 

train teachers periodically. 

He added that government has 

recruited more teachers to fill up 

the shortages caused by death and 

retirement, while effort is ongoing 

to ensure vacancies are filled by systematic 

recruitment of more teachers 

to suit the efforts at rejuvenating 

the education sector the more. 

Stephen Onyekwelu 

Content producer 

Fifen Eyemisanre Famous 

Graphics 

For comments and 

contribution write to: 

stephen.onyekwelu@ 

businessdayonline.com


OYIN EGBEYEMI 

Leadership and teamwork 

are nearly inevitable 

in all aspects of 

our lives. Therefore it 

is imperative that we 

do our best to ensure that we 

get it right. 

Having had the experience 

of working in various teams, 

I am continuously learning 

more about their dynamics. 

This is something that people 

could very easily take for 

granted in the work environment, 

as well as other settings 

such as social clubs, religious 

gatherings and even within the 

household. 

There are numerous books 

and guides about working in a 

team, especially for structured 

environments where roles are 

clearly defined. While acquiring 

specific technical skills in 

these environments is very 

important towards attaining 

success, working with people 

is one of the greatest challenges 

of mankind. 

There may be a plethora of 

literature on human psychology, 

but these still attempt to 

box people up into textbook 

personalities. While this helps 

us to understand one another a 

little better, it does not provide 

the solution to how we should 

behave around each other 

when working in teams to yield 

the best results. After all, we are 

human beings and are far from 

perfect. 

So how do we figure out this 

challenge of “cracking the human” 

and working effectively 

Leadership and 

teamwork dynamics 

businessday 

EDUCATION 

with each other? There is no 

text or research material that 

would give us the solution to 

that. Experience helps, but 

self-awareness also goes a long 

way. Self-awareness goes beyond 

just knowing oneself and 

identifying ones strengths and 

weaknesses. It has more to do 

with what we do about them, 

and how our actions affect the 

people around us. 

If we take a look at the world 

today, we would observe that 

there are various leaders who 

have different personalities, 

but were able to make a mark 

in history based on where their 

interests and skills lie. Some 

leaders such as Martin Luther 

King had the gift of a charismatic 

personality compared 

to other civil rights movement 

leaders such as Rosa Parks 

who was more subdued and 

quiet, yet made a mark in history 

by saying one word, “No”. 

This goes to show that there is 

not one stereotype of whom a 

leader should be or what her or 

his attributes are. We all have 

our very own gifts, strengths 

and weaknesses. 

So how does this now translate 

into teamwork? Did you 

know that Rosa Parks and 

Martin Luther King worked 

together, despite their different 

personalities? What held them 

together was one shared vision 

that drove them both. If a team 

does not have a shared vision 

or complete buy in from all its 

members, then the leader and 

its members have failed. They 

may never reach a coherent 

conclusion, may end up just 

being busy being busy and may 

not get along (whether or not 

they actually even liked each 

other in the first place). 

This brings me to an interesting 

analogy that comes up 

occasionally when people talk 

about teamwork: 

There were four colleagues 

named Everybody, Somebody, 

Anybody and Nobody. 

These colleagues had a very 

important task to carry out, 

and Everybody was asked to 

do it. However, Everybody was 

sure that Somebody would do 

it. Anybody could have done it, 

but Nobody did it. Somebody 

became upset about that, because 

really it was Everybody’s 

job. Everybody thought that 

Anybody could do it but Nobody 

realised that Everybody 

wouldn’t do it. It ended up that 

Everybody blamed Somebody 

when Nobody did what Anybody 

could have done. 

As a leader, it is important 

to set direction, communicate 

with your team, listen 

attentively, correct mistakes, 

encourage participation, and 

identify all members’ strong 

points so that the vision and 

objectives of the work are 

executed in unison, thereby 

making all members have that 

sense of achievement when the 

task is completed. 

This is, however, easier said 

than done. As leaders and team 

members, we have to be mindful 

of the effects of our words 

and actions on other people 

and adjust our behaviour to 

suit theirs. We cannot expect 

everyone to think in the same 

way as we do or do things the 

way we would. We are not the 

same, and neither are we mind 

readers. This takes a lot of 

patience and emotional intelligence. 

A positive attitude goes 

a long way as well. 

There is no one way of getting 

it right when it comes to 

interacting with each other in 

teams or even in general, but 

if we continue to make that deliberate 

effort to exercise some 

self-awareness and emotional 

intelligence, then we will learn, 

grow and attain success. 

Oyin Egbeyemi is an Executive 

Administrator at The Foreshore 

School, Ikoyi, Lagos state. 

Hallmarks of a millennial undergraduate 

OLUWASEUN AYANSOLA 

In 2012, it was reported that 

six Doctor of Philosophy 

(Ph.D) holders, 704 Master’s 

degree holders and 

over 8,460 first degree holders 

sought employment as drivers 

in Dangote group. Recent 

reports reveal that the number 

has worsened. With this in 

mind, the following constitutes 

some of the things you must do 

as a millennial undergraduate 

to be better equipped for the 

challenges of today’s labour 

market. 

Find yourself a mentor 

Find yourself a mentor and 

make sure they teach you everything 

that they know. Imagine 

you start your life from 

where they are now; think of 

where you will be when you 

are their age. In Grucho Marx’s 

wisdom, “learn from the mistakes 

of others. You can’t live 

long to make them all yourself.” 

One thing also is certain: if you 

fail to learn from the mistakes 

of a more experienced person 

(mentor), you are bound to 

repeat those mistakes yourself. 

Join a Club or Student Organisation 

Join an organisation or club, 

be active in it and, where you 

can, successfully lead it. Some 

‘outstanding’ students however 

erroneously think it is a 

distraction that profits little. 

Joining an organisation which 

draws its membership from 

people of different disciplines 

or backgrounds (for example 

JCI, AIESEC, Toastmasters 

and ILSA among others) is 

one of the easiest and surest 

ways to grow your network as 

a student. As Porter Gale put 

it, “your network is your net 

worth.” Here’s how to increase 

your net worth: join an organisation 

or a club and if you 

haven’t already, join LinkedIn! 

Volunteer 

According to a Guardian UK 

Report, in the last 15 years, the 

overall number of volunteers 

has stayed largely the same. 

However, the latest findings 

showed that 70% of young people 

by 2021 are likely to participate 

in social action. Make sure 

you are one of those making 

that decision to get involved. 

The benefits of volunteering 

cannot be overstretched, they 

include: making a difference, 

giving back to the community 

and developing new skills. Volunteering 

also enhances employment 

opportunities with 

certain Non-Governmental 

Organisations (NGOs) or International 

Organisations such 

as the United Nations or The 

International Committee for 

the Red Cross (ICRC). 

Intern 

Internship opportunities are 

everywhere. While this is true, 

what is rare is a paid internship. 

Most young people don’t ever 

like to work for free. However, 

you forget a vital point that 

nothing in life is automatic. 

Oluwaseun Joshua Ayansola 

(known by the pseudonym 

Sage) is a 500 level undergraduate 

of Law at Obafemi 

Awolowo University. Sage is the 

president of the International 

Law Student Association, OAU 

and the President of the Mooting 

Society. He is a keen debater, 

blogger and freelance writer. 

21 

C002D5556 BUSINESS DAY 

human capital 

Influencing and negotiating 

in turbulence and prosperity 

These Executive 

Minds (TEXEM) 

is a leading UK 

based company 

that specialises in delivering 

value adding educational 

programmes that 

addresses the needs of 

executives of organisations 

in the African private 

and public sector. TEXEM, 

UK invites you and other 

executives in your organisation 

to its upcoming 

Executive Master Class: 

Influencing and Negotiating 

for Value Creation in 

Turbulent Times and Prosperity 

(2 days) 6th -7th 

Sept 2017, at the Intercontinental 

Hotel, Plot 52, 

Kofo Abayomi St, Victoria 

Island, Lagos, Nigeria. 

Delivered by renowned 

faculties carefully chosen 

based on their excellent 

skills sets, combined experience 

of about eighty 

years and unparalleled 

expertise in leading and 

influencing in over fifty 

countries. For more information, 

please visit www. 

texem.co.uk 

Faculty: 

• General Sir Nick Parker: 

Formerly Commander-in-Chief, 

Land Forces. 

Senior Associate Fellow 

at Royal United Services 

Institute. 

• Ambassador John 

Buck, Founding Director of 

Ambassador Partnerships& 

Former Director of British 

Gas and Ambassador of UK 

to Portugal. 

For more information, 

please contact Dr. Alim 

Abubakre via alim@texem. 

co.uk: +447983128450 & Babatunde: 

via- 09060724518 

& babatunde@texem.co.uk 

Some benefits of the 

Programme 

Every organisation engages 

in influencing and 

negotiating daily, but few 

succeed at it. For organisations 

to excel, there is an urgent 

need for leaders to become 

aware of the various 

influencing and negotiating 

strategies for value-creation 

for multiple stakeholders. 

Thus, it is necessary for 

executives to hone their 

ability to plan, analyse, and 

deliver superior influencing 

and negotiating outcomes 

successfully. 

This programme will enable 

participants to engage 

in different real life 

influencing and negotiating 

situations that will lead to 

the assessment of personal 

hindrances and potential 

drivers of interpersonal encounters, 

structural problems 

such as misaligned 

frames or poor management 

of the entire process 

and ineffective communication. 

The training aims to empower 

senior executives 

with the tools and practical 

experiences, which 

they require to identify and 

transform the analytical 

challenges associated with 

influencing and negotiating. 

Thus, upon completion, 

delegates would have 

developed a symbiotic, systemic 

and persuasive mind 

set. Also, senior executives 

would have enhanced 

their leadership quotient, 

learned how to make better 

decisions and improve their 

communication skill sets 

that they require to attain 

and sustain strategic goals. 

Cost: N1,050,000.00 

i.e. £2100 (covers study 

materials, meals during 

programme, group 

picture&certification). 

Themes include: 

1. Decision-making prejudice, 

value based agreement. 

2. Understanding and 

managing positions, interests 

and options. 

3. Influence and persuasion, 

leading contentious 

negotiations. 

4. Winning Strategies for 

successful influencing and 

negotiations. 

5. Improve skill sets on 

how to facilitate change, 

develop competence; on 

persuasion as well as how to 

engage internal and external 

stakeholders for optimal 

results. 

Upon completion of this 

programme, delegates 

would have successfully 

challenged their assumptions 

and mind-sets around 

negotiation such that they 

would move from; adversarial 

to sustainable collaboration 

and from a winning 

to problem-solving outlook. 

Testimonials 

“Highly interactive and 

very practical. High profile 

speakers with excellent 

pedigree and track record 

of professional achievements. 

Provided networking 

among participants”. 

Dayo Babatunde (Senior 

Partner, Ernst and Young, 

Nigeria) 

“It has been fantastic 

been in Manchester and 

having this course organised 

by TEXEM. We have 

had wonderful lectures 

and wonderful colleagues. 

The organisers have been 

simply very great and very 

supportive. 

I will definitely come 

back again, again and again. 

I want to recommend to all 

organisations in Nigeria 

that they should sign as 

many people up for this 

course as possible - they 

will never regret it”. 

Chief James Katugwa 

– Federal Commissioner, 

Presidency 

“I regard the These Executive 

Minds Executive 

Education programme as 

the best I have attended 

in recent times. Not one of 

them, but the very best as it 

was humanly perfect.” 

Previous TEXEM delegate, 

Peter Atolo Irene, 

CEO, International Energy 

Insurance. 

For more information, 

please contact Dr. Alim 

Abubakre via alim@texem. 

co.uk: +447983128450 Babatunde: 

via- 09060724518 

& babatunde@texem.co.uk 

What sets TEXEM apart 

from the competition? Its 

unique selling points, they 

include: 

• Good reputation in offering 

tailored, relevant and 

context-rich executive education 

programmes which 

are relevant and has an 

impact on the bottom line. 

• Network of key stakeholders 

in Europe and 

North America that TEXEM 

have worked with in the 

past, which the company 

could deploy towards delivery 

of executive development 

programmes. 

• Impressive track record 

of customer satisfaction 

with 60% of her delegates 

being repeat customers- 

This is commendable for 

a company that offers an 

intangible service. 

• Understanding of the 

challenges that organisations 

face and committed, 

distinguished advisory 

board, which have a passion 

for the growth of Africa. 

• Great networking opportunities 

with very senior 

executives as participants 

have over six hundred years 

of experience of participants 

and faculties in every 

programme thus steepening 

the learning curve of 

participants via peer to 

peer learning moderated by 

world renowned Professors 

and professionals.

22 

BUSINESS DAY 

BDTECH 

In association with 


‘We develop products based on our understanding 

of operating environments’- HP Inc 

HP Inc. the multinational Information Technology (IT) Company recently launched its latest wireless printer targeted at high volume home users 

into the Nigerian market. In this interview, Tolulope Lawani, Retail Account Manager, Central Africa, HP Inc, provides detailed features of HP 

products and how Nigerians could save on printing costs with its new DeskJet GT 5810/5820 All-in-One printer. 

What are the peculiar 

features of the 

HP DeskJet GT 

5810/5820 All-in- 

One printer that 

would distinguish them in the market? 

The products were developed 

based on our market experience and 

consumer feedback. They feature a 

high-capacity ink tank system that 

delivers excellent quality at an extremely 

low cost per page. Also, the 

process of replenishing the ink is 

clean and easy to handle with the HP 

spill-free refill system. This feature 

goes a long way in ensuring seamless 

and uninterrupted workflow 

and higher productivity. The inking 

system is designed in such a manner 

that you will get crisp and sharp text, 

vibrant graphics, reliability and so 

much more. Another major innovation 

is the ease with which you can 

print. Rather than physically move to 

the printer, you have the convenience 

of printing from a smartphone or 

tablet through the GT 5820 model. 

Other features of these products are 

that they have sharper lines, darker 

blacks, and reduced smudging on 

coloured papers, thus producing top 

quality printing and documents. By 

using the Original HP inks, the user 

is assured of durable colour photos 

that resist water and fading, ensuring 

that photos and documents are 

preserved for several decades. Let 

me also add that the products are 

easy to monitor and maintain. They 

are designed with the intention that 

human intervention and the disruption 

that that can cause are highly 

minimized. Just automate the process 

and it will independently give 

you the desired result. It is consistent 

and durable, ensuring high-quality 

results for everyday documents and 

photos. It also has capacity for borderless 

printing for brochures, flyers, 

photos and much more. The HP 

DeskJet GT 5810/5820 All-in-One 

printer can be set up in record time. 

The system is designed to be up and 

running in minutes, whereas similar 

Tolulope Lawani 

products by our competitors do take 

up to 40 minutes to set up to print 

for the first time. Our products come 

with an Original HP GT51 black ink 

bottle that enables prompt set-up 

and printing. It comes with a oneyear 

commercial hardware warranty, 

24-hour, 7 days a week Web and 

technical support in our care centers 

across the country. Our overarching 

intention in designing these products 

is to ensure exceptional output 

no matter what you print. The key 

functions of this amazing product 

can be described in four words - 

print, copy, scan, wireless. 

What particular segment of the 

market are you targeting with the 

new products? 

A wide variety of market segments 

can use the products. However, 

they are ideal for high volume 

users as well as small and microbusinesses 

that need low-cost, highvolume 

printing. Take the instance 

of someone who runs a business 

center at a university campus, where 

there is high demand for volume and 

prompt delivery. These products will 

ensure that documentation, whether 

they are projects, thesis, tests, designs, 

and even books, among others, 

are quickly done and in good 

numbers. The 5820 also offers easy 

mobile printing options for users 

who want the freedom to print from 

their smartphones or tablets. 

What specific features underline 

the coinage - Ink Tank Series? 

The HP DeskJet GT 5810/5820 

All-in-One comes with a set of three 

Original HP GT52 colour ink bottles, 

plus an Original HP GT51 black ink 

bottle that enables prompt set-up 

and printing. The high-yield HP 

GT51/52 ink bottles are specifically 

designed for high-volume printing. 

Original HP inks are specially 

formulated to work with the all-inone, 

which ensures that printing is 

simple and reliable. The additional 

enhancement in the ink supply ca- 

pacity underscores what we have 

dubbed the Ink Tank Series. The 

product has the capacity to print 

up to 8,000 colour pages and 5,000 

black and white pages. HP’s unique 

spout design prevents ink from filling 

past the tank’s maximum fill 

line. All you have to do is simply plug 

the bottle into the ink tank and let 

it drain; there will be no squeezing 

or spilling. In essence, this feature 

prevents the messy overflow of ink 

and enables you to produce quality 

print-out all the time. There are no 

cartridges. By having the opportunity 

to print for a longer period of time 

without having to replenish the ink, 

you will agree with me that there will 

be significant improvement in the 

workflow and level of productivity. 

You are also availed the opportunity 

to monitor ink levels with transparent 

ink tanks, which ensures that you 

can easily replenish whenever you 

like, thus preventing a disruption of 

the workflow. So, the transparent ink 

tanks allow you to print with confidence. 

Note also that the customised 

icon enables you to monitor the 

number of copies printed. 

Can you throw more light on 

what you mean by ‘low cost per 

page’? 

Because you can easily see the 

ink levels and replenish when it’s 

convenient, you will avoid the extra 

cost of cleaning the mess resulting 

from a spill-over as well as a reduction 

in output due to disruption in 

the workflow. Also, as earlier indicated, 

the products can deliver up 

to 8,000 printouts in the colour set 

or up to 5,000 printouts in black. 

Based on the principle of economy 

of scale, the cost of printing per page 

reduces as more copies are printed, 

simple. Our products are developed 

to match the needs of the various 

segments of the economy, and that 

includes price affordability. 

Where can customers buy these 

products in Nigeria? 

We have a network of distributors, 

dealers and vendors spread across Nigeria. 

There are of course thousands 

of stores across the country where you 

can purchase our products, including 

the HP DeskJet GT 5810/5820 All-in- 

One printer. Our major sales dealers 

and stores are located in Lagos (Ikeja, 

Ikoyi, Victoria Island), Port Harcourt, 

Abuja Kano, Ibadan, Enugu, and Warri, 

among other cities. There are also numerous 

authorised HP service centers 

in the country. With the largest population 

in Africa and the second largest 

economy, Nigeria’s growth potential remains 

high and the country still represents 

a real opportunity for us. As I said 

earlier, we are here for the long term. As 

a development partner, HP will remain 

steadfast in supporting the growth 

and development of Nigeria. We must 

also acknowledge that every business 

needs to have a clear understanding of 

the environment or economy where it 

operates and must undertake a review 

of its operational template when the 

need arises if it hopes to compete and 

be profitable. Nigeria is an emerging 

economy with enormous potential.


Nigeria to take technology growth tips 

from India at Indo-Africa ICT summit 2017 

STORIES BY 

JUMOKE AKIYODE LAWANSON 

The Indo-Africa ICT 

Expo and Summit 2017 

will give Information 

Communication Technology 

(ICT) players in 

Nigeria the opportunity to learn 

from and interact with technology 

experts from India, the country 

with the largest and arguably the 

most developed ICT sector in the 

world. 

As new technologies and innovations 

emerge and become 

ubiquitous and demanding, African 

communications ministers 

led by Adebayo Shittu, Nigeria’s 

Minister of Communication and 

Ursula Owusu-Ekuful, Ghana’s 

Communication Minister, will 

join Shri Manoj Sinha, India’ s 

Minister of Communication at 

the two day summit starting on 

Wednesday, 6 September 2017, 

to discuss the future of Africa’s Information 

and Communications 

Technology industry. 

The forum is designed under 

the auspices of strengthening 

Indo-African relations essentially 

to move the African ICT industry 

to greater heights with the theme 

‘Digital Dreams of Developing 

Nations’. 

According to Shri Rajesk Kumar 

Bhatnagar, Director-General, 

of the Telecom Equipment 

and Services Export Promotion 

Council (TEPC), a body set up by 

the Indian Government, which is 

organising the event, the program 

presents African ICT experts 

a unique opportunity to present 

and review their nations’ ICT 

plans over short, medium and 

long term periods. 

“Digital Transformation is the 

need of the time for the developing 

world, and nations in Africa 

and India can share their experiences 

on embracing digital technologies, 

digital competencies, 

SAP’s Africa Code Week 

(ACW) initiative, has received 

accolades as a critical 

leverage to bridge the continentwide 

digital divide, as well as being 

a significant launch-pad for 

youth empowerment in the digital 

era. 

Oluwarotimi Odunayo Akeredolu, 

Executive Governor of 

Ondo State gave a rousing speech 

where he thanked SAP and ACW 

key and primary partners (UNES- 

CO YouthMobile, the Cape Town 

Science Centre, the Galway Education 

Centre and Google) for 

their vision of every African child 

empowered though ICT. 

Akeredolu spoke through Agboola 

Ajayi, Deputy Governor of 

the State, at a two-day Train-the- 

Trainer (TTT) hands-on workshop 

organised by SAP in partnership 

with the State. Based on 

the globally-acclaimed Scratch 

interface developed by the MIT 

Media Lab to simplify the face 

of coding for the young generation, 

this TTT aimed at imparting 

coding skills to secondary school 

teachers across the three Senatorial 

Districts in the run up to Africa 

Code Week 2017 – which will 

take place from 18 to 25 October 

across 35 countries. 

digital literacy for re-inventing 

lives and changes covering all aspects 

of human society in the respective 

nations,” Shri Bhatnagar 

said. 

The organizers have revealed 

that topics for the conference will 

range from training, regulation in 

telecom sector, convergence 

of IT and Telecom, e-Health, 

e-Governance, e-education, 

e-finance, infrastructure, new 

technologies, standardisation, 

spectrum auction and optimisation, 

licensing, evolving needs 

of consumers, service providers, 

among others. 

India’s giant strides in ICTs are 

globally recognised as a shiny example 

for all developing economies 

to emulate, hence, this event 

being organised by the TEPC in 

conjunction with the National As- 

The Governor said he considers 

the workshop as very relevant 

since the time has come for Government 

and the private sector 

entities to work together to promote 

digital access, improve ICT 

skills and create opportunities for 

youths in our ever-competitive 

and dynamic world. 

“It is also gratifying to note that 

SAP shares this philosophy that 

we need to join forces to bridge 

the digital skills and gender gap 

continent-wide. I am therefore 

very happy that SAP is deploying 

their skilled volunteers to train 

teachers in Ondo State who, will 

in turn, will train the next generation 

of ICT savvy youths,” he said. 

Akeredolu said the State desires 

that the citizenry of Ondo 

State participate actively in the 

new economy, benefiting from 

the opportunities it presents. To 

facilitate this, the Government is 

championing many ICT initiatives 

such as the planned establishment 

of Tech Hubs in each of 

the three senatorial districts, to 

make governance more effective 

and efficient. 

“This will provide an enabling 

environment for different categories 

of youths and ICT enthusiasts 

to acquire and develop different 

sociation of Software and 

Services Companies (NASS- 

COM) of India offers the African 

continent a huge opportunity to 

learn and adopt new strategies for 

technology growths. 

Alhaji Abdulaziz M. Abdullahi, 

Permanent Secretary, Nigeria’s 

Ministry of Communications; 

Umar G. Danbatta, Executive Vice 

Chairman of the Nigerian Communications 

Commission (NCC); 

Isa Ali Ibrahim Pantami, Director- 

General, National Information 

Technology Development Agency 

(NITDA); Yusuf Kazaure, Managing 

Director of Galaxy Backbone; 

Abimbola Alale, Managing Director, 

Communication Satellite 

Limited and Aliyu Abubakar, 

Director-General of the National 

Identity Management Commission 

(NIMC) are on the list of 

skills in information and communication 

technology, which can be 

deployed for economic gains as 

‘techpreneurs’, the Governor said. 

Speaking further on ACW 

2017, Claire Gillissen-Duval, Director 

of EMEA Corporate Social 

Responsibility at SAP and Africa 

Code Week Global Lead said: 

“Leveraging freely accessible 

teaching materials like Scratch, 

speakers and dignitaries scheduled 

to attend the event. 

Key industry associations in 

Nigeria, including the Information 

Technology Association 

of Nigeria (ITAN), Association 

of Telecom Companies of Nigeria 

(ATCON), Association of 

Licensed Telecom Operators 

of Nigeria (ALTON), Institute of 

Software Practitioners of Nigeria 

(ISPON), Nigeria Computer 

Society (NCS) as well as the 

Computers and Allied Products 

Dealers Association of Nigeria 

(CAPDAN), have pledged support 

for the event 

According to the organisers, 

a key highlight of the 

event will be an ICT Ministers’ 

Roundtable Meeting scheduled 

for September 6, on the 

guiding theme ‘Digital Vision 

23 

BUSINESS DAY 

BDTECH 

E-mail: technologybusiness@businessday.com 

of the Developing Nations,” a 

platform for ministers to present 

and share the ICT visions 

of their countries over the next 

five years thereby showcasing 

partnership opportunities that 

such vision would bring to the 

industry at large for the two regions. 

With lots of 

opportunities for SMEs, the 

event will also showcase the 

best of the telecom and IT industry 

from Africa and India. 

The organisers, TEPC, say 

that they are working in conjunction 

with the National 

Association of Software and 

Service Companies, (NASS- 

COM), which is the premier 

trade body and the chamber 

of commerce of the IT-BPM industries 

in India. 

The TEPC stated that the 

vision of a knowledge based 

society “is built on an edifice 

where IT and Telecommunications 

merge,” adding that; 

“rapid technological convergence 

has already established 

a symbiotic 

relationship between the 

development strategies of IT 

and telecommunications. IT 

flourishes on the telecom-network 

and in turn permits modern 

day telecommunications to 

use sophisticated IT-software.” 

The Council says as Africa 

is among the fastest growing 

markets worldwide, improving 

macroeconomic indicators, 

conducive business environment, 

larger, younger 

and more affluent population, 

rising middle class – all are 

strong indicators of not only a 

source of capital but also of job 

creation, skills development, 

technology transfer, 

infrastructure development, 

responsible governance 

and most of all –sustained 

growth that eventually will 

lead to transformation of African 

economies. 

Ondo State commends SAP’s Africa Code Week initiative for digital youth empowerment 

From right; Olumbe Akinkugbe, SSA ICT to Ondo State Deputy Governor; 

Agboola Ajayi, National Coordinator Africa Code Week; Olajide Ademola 

Ajayi, Permanent Secretary, State Information Technology Agency and 

Victor aladenola at the opening event of SAP/Ondo State training for 

teachers as prelude to African Code Week 2017. 

ACW Train-the-Trainer workshops 

provide a sound, scalable 

structure for inter-group knowledge 

sharing, unlocking people’s 

potential and desire to serve as 

resources for each other. In the 

knowledge sharing age we live 

in, this is the key to scaling digital 

literacy initiatives in a sustainable 

way, across all communities.” 

Also speaking, Pedro Guerreiro, 

MD SAP West Africa stated 

that ACW, reinforces SAP’s commitment 

to education, creating 

a full lifecycle of skills support for 

young people in Africa. With a 

goal to empower 200,000+ teachers 

and positively impact the 

lives of 5M young Africans over 

the next 10 years, ACW is built to 

be sustainable and provide longterm 

impact. 

Commenting on the success 

of the TTT event, Olajide Ademola 

Ajayi, Africa Code Week 

Ambassador in Nigeria, thanked 

the Ondo State government for 

embracing the initiative, facilitating 

teachers’ attendance and 

providing a superb venue (The 

Public Service Training Institute, 

Ilara-Mokin) for the event. He 

stated that 209 teachers, volunteers 

and unemployed graduates 

were trained by ACW Master 

Coding Instructors and Ambassadors 

over a 2-day period. 

jayi also said: “following this 

successful TTT, we are working 

with the state government to ensure 

that the program is sustained, 

starting with teachers introducing 

Scratch coding to as many students 

as possible during the ACW Live 

sessions (from 18 to 25 October).” 

9mobile partners 

Africa’s talking to 

boost activities 

in software 

development 

9mobile has partnered with 

Africa’s Talking to empower 

software solutions developers 

and Small and Medium-scale 

Enterprises with access to telecommunication 

infrastructure 

through mobile communication 

Application Programming Interfaces 

(APIs). 

According to 9mobile, its 

partnership with Africa’s Talking, 

a Pan-African company focused 

on providing developers with an 

easy and reliable way to access 

telecommunication infrastructure, 

is aimed at boosting the 

activities of Nigerian software 

developers and to enable Small 

and Medium Enterprises (SMEs) 

to effectively engage customers 

across multiple channels. 

Adia Sowho, Director, Digital 

Business, 9mobile, said that 

through the direct connection to 

9mobile’s infrastructure and the 

unified API platform that Africa’s 

Talking provides, developers will 

be able to access and build innovative 

applications while SMEs 

can use the platform to improve 

their marketing capabilities. 

“We at 9mobile are delighted 

to partner with Africa’s Talking in 

our bid to support Nigerian software 

developers and small businesses 

as they build viable and 

scalable businesses. This partnership 

will provide businesses with 

quality and affordable mobile 

communication tools like 2-way 

SMS and USSD APIs that they 

can then embed into their day to 

day business activities. With these 

tools, SMEs can improve their 

marketing capabilities and interact 

easily with their customers,” 

Sowho said. 

She added that; “In the past 

decade, mobile communication 

has proven beneficial for 

businesses seeking to create and 

maintain meaningful relationships 

with their existing and future 

customers. It is through this 

that businesses are able to offer 

effective customer support, real 

time communication solutions, 

collect data as well as optimise 

their operations. With this solution, 

SMEs will also be able to tap 

into the local developer community 

to build systems that enhance 

business efficiency, leading to job 

creation and overall support of local 

talent.” 

Sowho noted that with the 

partnership, individual developers 

do not need to interface directly 

with telco-grade protocols 

which prove to be difficult and 

time consuming. 

“With an estimated 250,000 

developers in the country, having 

easy access to this infrastructure 

will encourage more developers 

to build innovative solutions 

that can directly impact the lives 

of the Nigerian populace. At 

9mobile, we are always passionate 

about providing technology 

based support to innovative 

thinkers,”Sowho said.



C002D5556 

BD 

Markets + Finance 

‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s 

market. Published twice weekly, Markets & Finance provides all the key intelligence you need.’ 

Unilever Nigeria plc: Aggressive market 

penetration strategy underpins earnings 

BALA AUGIE 

UNILEVER Nigeria 

Plc, one 

of the leading 

multinationals 

on the Nigeria 

Stock Exchange, NSE, 

has released its second 

quarter financial results 

that showed improved sales 

and profit. 

The company, with 

some of its leading brands 

in the FMCG (fast moving 

consumer goods) market 

segment, has always surmounted 

the headwinds 

that plunge the country 

in its first recession in 25 

years. The consumer goods 

giant benefitted from price 

increase across its key 

product line as evidenced 

in strong growth in sales. 

For the first six months 

through June 2017, sales 

increased by 39.79 percent 

or N12.82 billion to N45.10 

billion from N32.27 billion 

the previous year. 

Revenue was bolstered 

by price increases across 

key product portfolios 

(Royco, Knorr, and Close 

Up) as the company gradually 

pass on impact of 

inflationary pressures on 

consumers. 

A breakdown of revenue 

per segment or department 

shows the Home 

Care division grew by 77 

percent year on year (y/y) 

and 17 percent quarter on 

quarter (q/q), and while 

Food revenue declined by 

2 percent q/q, it grew by 

24 percent, y/y during the 

review period. 

Unilever has been 

growing steadily since 

December 2015 when it 

rose by 6.25 y/y, March 

2016, (+12.15 percent); 

June 2016, (+12 percent), 

September 2016, (+16.75 

percent); December 2016, 

(+17.82 percent); March 

2017, (+32.15 percent). 

The above analysis 

shows on a quarter on 

quarter basis, sales started 

it upward trajectory in the 

third quarter of 2016, a period 

when price increase in 

key products were taken by 

Yaw Nsarkoh, managing director, Unilever Nigeria, 

Cost of sales 

margins increased 

to 69.15 

percent in the 

period under review 

from 67.92 

percent the 

previous year, 

which means 

the company 

has spent more 

on input cost to 

produce each 

unit of product 

management. 

Unilever’s profit after 

tax surged 236.69 percent 

to N3.67 billion from N1.09 

billion a year earlier, thanks 

to strong sales. 

That compares with the 

N2.97 billion average estimate 

of five analysts surveyed 

by BusinessDay. 

Unilever also recorded 

strong profit margins amid 

a tough and unpredictable 

macroeconomic environment. 

Net margins 

increased to 8.13 percent 

in June 2017 from 3.37 

percent as at June 2016. 

Earnings before and Tax 

(EBIT) moved to 14.16 

percent in June 2017 as 

against 6.69 percent the 

previous year. 

Despite the improved 

earnings, Unilever succumbed 

to inflationary 

pressures and a weak naira 

as cost of sales spiked by 

42.29 percent to N31.19 

billion. 

Cost of sales margins 

increased to 69.15 percent 

in the period under 

review from 67.92 percent 

the previous year, which 

means the company has 

spent more on input cost 

to produce each unit of 

product. 

Consumer goods firms 

in Africa’s most populous 

nation and largest oil 

producer have had cost 

of raw materials went up 

due to the devaluation 

of the currency by the 

central bank as they continue 

to feel the pinch of 

imported inflation. 

A sharp drop in the 

price of oil since mid 2014 

stoked a sever dollar scarcity 

as firms were forced 

to source dollars at the 

parallel market. 

Analysts say the currency 

controls imposed 

by the central bank and 

refusal to weaken the naira 

and lure foreign portfolio 

investors is responsible 

for the country’s 

economic downturn. 

Nigeria’s economy 

contracted by 0.52 percent 

in 2016, according 

to the National Bureau of 

Statistics (NBS). Inflation 

eased to 16.05 in July from 

16.10 percent, in June, 

the Abuja-based National 

Bureau of Statistics (NBS) 

said in an emailed report 

Monday. 

Inflation has been 

above the upper end of the 

central bank’s target band 

of 6 percent to 9 percent 

for two years. Unilever is 

to raise N63 billion via a 

right issue, the proceeds 

of which will be channeled 

to deleveraging the 

balance sheet and meeting 

the working capital 

and capital expenditure 

requirement. 

Indeed the company 

needs a cash injection 

given its huge debt and 

high gearing ratio as debt 

to equity ratio stood at 

126.83 percent as at June 

2017. Total long term debt 

in the balance sheet was 

N19 billion in the period 

under review. 

Unilever’s trade and 

other payable increased 

by 46.87 percent to N47.68 

billion in June from N32.47 

billion as at June 2016. 

Analysts are of the view 

that the market may react 

positively to the stellar 

earnings of the consumer 

goods giant. 

BD MARKETS + FINANCE (Business Team lead: PATRICK ATUANYA - Analysts: BALA AUGIE and LOLADE AKINMURELE)

C002D5556 

BUSINESS DAY 

25 


HOMES&PROPERTY 

In Association 

Heritage Place: Riding glut, competition 

on strong value proposition 

…security, high productivity, over 20% lower energy cost for tenants assured 

CHUKA UROKO 

When the Nigerian 

economy 

was in boom 

and business 

activities 

were up and running, demand 

for Grade A office buildings 

jumped, prompting investors 

and developers to rush and 

attempt to create office space 

products to serve the surging 

demand. 

The downturn which the 

economy has seen in the last 12 

to 20 months has since changed 

the narrative for an otherwise 

thriving market that guaranteed 

fabulous returns for investors. 

Demand has fallen off and some 

of the products have got stuck, 

leading to the existing glut and 

vacancy. 

But there is always market 

for good quality and well finished 

products and that is the 

group to which Heritage Place 

belongs. The market has seen 

quite a good number of Grade 

A office buildings and there are 

many others too where construction 

is still on-going. 

New developments currently 

leasing or due to be delivered 

into 2017 include The 

Wings Towers (27,500 sqm), 

Nestoil Tower (7,500 sqm), 

Madina Tower (8,300 sqm) and 

Civic Centre Towers (8,096 sqm) 

in Victoria Island. In Ikoyi are 

Heritage Place (15,631 sqm), 

Alliance Place (6,670 sqm), 

Kingsway Tower (12,000 sqm), 

Temple Tower (14,000 sqm), 

BAT’s Rising Sun (10,000 sqm) 

and Lake Point Towers (13,400 

sqm). 

For its strong value proposition, 

Heritage place stands tall 

ahead of the stiff competition 

which the market situation 

has engendered. Amidst the 

glut and all, it has been able to 

record 70 percent occupancy 

rate. “Tenants always recognize 

quality and will be willing to pay 

a reasonable rent for what they 

believe to be a quality product ”, 

said Tolu Sokenu, a principal at 

Actis, in an interview. 

Developed by Actis, an international 

private equity firm that 

invests exclusively in emerging 

markets, with its development 

partners—Primrose Development 

Company (PDC) and 

Laurus Development Partners, 

Heritage Place is an ultra-modern 

office building standing on 

14-floors with 16,097 gross lettable 

area (GLA). 

“This ultra modern, ecofriendly 

building is Nigeria’s 

most advanced development, 

employing the latest building 

principles and state-of-the-art 

finishes; it is one of Lagos’s 

most recognizable and accessible 

buildings”, said Funke 

Okubadejo, a director at Actis. 

Sokenu added that Heritage 

Place is the only Leadership in 

Energy and Environmental Design 

(LEED)-certified building 

in Nigeria. It has five floors of 

parking with the highest parking 

availability for 360 cars. It has 

high profile tenants including 

Actis, British Petroleum, BBC, 

HP, Visionscape and others. 

“This is an exclusive address 

for corporates that want the 

best in office accommodation. 

It is managed by Broll which 

manages top office buildings 

in Nigeria. The energy mix in 

the building is much lower than 

what you get in other buildings 

and energy cost is about 20 to 30 

percent lower”, he said. 

Security arrangement in the 

building top-notch and Sokenu 

explained that the idea behind 

the security measures is that 

they should be able to track 

information on whoever comes 

in to see somebody so that in the 

event of anything, they should 

be able to identify the culprit 

very quickly. “This aligns with 

what obtains in top-notch offices 

abroad; we have top world 

citizens here so we have be very 

careful”, he said. 

The LEED-certification 

which sets Heritage Place apart 

from its peers is an accreditation 

that started in the United States. 

It looks at things that reduce 

a building’s carbon footprint 

and energy use. “It takes into 

consideration the architectural 

design of the building, the material, 

the cost of construction 

which embodies the life-cycle 

cost of being in that building 

that has to be much lower, the 

air-flow within the building, the 

health, safety and environment 

(HSE) issues, the glaze and the 

orientation, etc. 

“It considers too all the 

things that promote wellness 

for the inhabitants of the building. 

It is a lot cheaper to service 

and maintain the building over 

its life-cycle. The return on 

investment is quite high. It also 

considers the ambience, façade, 

air quality, fire rating on the 

doors, water usage, etc. Everything 

has to be very efficient”, 

Sokenu informed, pointing out 

that all of this is about the Actis 

Strategy which is to be in the 

Grade A market with a location 

and product that they can put 

their name behind. So Heritage 

Place is simply in line with that 

strategy. 

He admits that there is a lot 

of glut at the grade A market. 

Apart from the Trinity Towers 

and the Atlantic Resort being 

promoted by The City of David 

(church) and Grenadine Homes 

respectively in Lagos, Sokenu 

does not see many grade A 

buildings coming up soon, but 

notes that there is good market 

for grade B and C products that 

are of good quality and in good 

locations. 

He pointed out that part of 

the challenges in the Nigerian 

market is that, unlike what obtains 

in developed markets, 

the gap between rents in lower 

grade products and the upper 

grade is too wide. 

“We have a peculiar problem 

in Nigeria. In most markets, the 

difference between rents in 

high level office space and the 

low level is not always wide. An 

old building may be rented for 

just $100 while a new building 

will be rented for just $200 or 

$300. But here in Nigeria and in 

Lagos, for instance, you can rent 

an office space for $1,000 per 

square metres in Lagos Island 

while another person goes to 

rent a space in Ikoyi or Victoria 

Island for $15,000. So, the gap is 

too much”, he observed. 

Foreign investors in Oyo as govt improves 

environment, infrastructure 

Akinremi Feyisipo, Ibadan 

Oyo State, one of the 

thriving states in 

South West Nigeria, 

has become a destination 

of sorts for foreign investors 

who now find the state 

investment-friendly because 

of its improved environment 

and roads infrastructure. 

The state governor, Abiola 

Ajimobi, gave this hint during 

the commissioning of the 

reconstructed 5.5 kilometers 

Mobil-Oluyole-Wema Bank, 

Apata Road with associated 

bridge work in Ibadan. 

“As a result of our serene 

environment and developmental 

projects, foreign investors 

have started massive 

investment in Oyo State which 

is not only one of the five most 

investment-friendly states but 

also one of the only five to 

attract investment this year 

in Nigeria”, the governor said. 

“We are not just building 

roads, we are building 

multiple road network systems 

which are important 

for the enhancement of the 

socio-economic development 

of the state. We do not 

just dream, we ensure the 

actualization of the dream. 

We do not just plan but we execute 

our plan”, the governor 

added, pointing out that what 

was being witnessed was the 

result of a careful plan that 

was executed in the course of 

modernizing the state. 

He described the completion 

of that road as another 

dream come true, saying it 

would alleviate the traumatic 

experiences of commuters 

and residents of this area. 

“We saw the need to construct 

major and entry roads 

within Ibadan and across 

the state such as Saki, Iseyin, 

Ogbomoso and Oyo as well as 

Ibarapa axis and we have done 

this”, he enthused. 

Continuing, he said, “we 

appreciate the people of the 

state for their patience and 

endurance whenever there 

are ongoing projects. We also 

commend the management 

and staff of the Ministry of 

Works and Transport as well 

as the contractor of this project 

for delivering the project 

within the scheduled period”. 

Oba Lekan Balogun, the 

Otun-Olubadan of Ibadanland, 

on behalf of the traditional 

rulers at the event, 

said he was happy for Ibadan 

indigenes for having such an 

ingenious governor at a crucial 

time when states across 

the federation were in competition 

for development. 

“We are glad with the innovation 

and initiative of Governor 

Ajimobi. I do not praise 

people unnecessarily, but I 

am happy with the present 

administration. Though, I 

am not surprised with his 

achievements, he has the 

managerial background and 

his antecedents speak for him. 

We thank the government for a 

job well done as well as cutting 

out indiscipline in the civil 

service and we expect more 

developmental projects,” Balogun 

said. 

Gboyega Adebunmi, an 

resident, noted that the road 

was of high quality and its 

importance in the economy 

of the area cannot be over 

emphasized. Adebunmi who 

spoke on behalf of the residents 

of the area, stressed 

that the road had enhanced 

the business activities while 

traffic situation has improved 

significantly.


C002D5556 Tuesday 05 September 2017 

HOMES&PROPERTY 

Opportunities, possibilities seen in Ambode’s 

random thoughts on livable cities 

…as Fine & Country, BusinessDay bullish in Taking Nigeria to the World 

Stories by CHUKA UROKO 

Since after the latest ranking of 

world cities by the Economist 

which placed Lagos State second 

among 10 cities it considered 

least livable in the world, 

there have been different shades of 

opinions, comments and arguments on 

that ranking which the state government 

has reacted to, albeit positively. 

The most thought-provoking of all 

the questions that have been asked seeks 

answers to “is Lagos really that bad a 

city”? Perhaps, not, but that can only 

be justified, rationalized and explained 

when placed in context as has been 

expertly done, interestingly, by Fine & 

Country International West Africa. 

This international realtor believes 

that the issues raised in the Economist’s 

ranking are pointers to what’s possible 

for a state (Lagos) that is already great 

work in progress. “We are pleased to 

note that Governor Ambode realises this 

and put it in great context in his recently 

published ‘not-so Random Thoughts’”, 

the company said. 

The Economist Intelligence Unit (EIU) 

is the research and analysis division of 

The Economist Group and the world 

leader in global business intelligence. It 

has 70 years’ experience in helping businesses, 

financial firms and governments 

to understand how the world is changing 

and how that creates opportunities to be 

seized and risks to be managed. 

In this year’s Global Livability Ranking, 

which scored lifestyle challenges in 

140 cities worldwide, the Unit noted that 

global livability has improved for the first 

time in a decade, but pointed out that 

some cities have seen notable declines 

due to the continued threat from global 

terrorism. Lagos, Nigeria’s sprawling 

commercial city, is among the cities that 

emerged as most and least livable. 

In a sublime reaction, the state gover- 

Housing career brings 

about income stability, 

sustainability — Northcourt 

Having a housing career brings 

about stability and sustainability 

in income and social well-being, 

Northcourt Real Estate has said, noting 

however that with shifts in demography, 

housing policy, housing markets, labour 

mobility, change in attitudes and social roles 

amongst other factors, housing careers are 

ever changing. 

Tayo Odunsi, a seasoned real estate 

economist and chartered surveyor, and the 

chief executive officer of the award winning 

real estate services company, who gave this 

insight at a career talk organized by the 

company in Lagos and Abuja recently, also 

noted that housing is a factor of production 

like food and clothing. “It needs change 

over time because we never select a house 

just because it houses us; we choose one 

house above another because of the utility 

we derive from it”, he posited. 

When professionals in real estate, 

telecommunications, investment markets, 

oil and gas, and eager students of estate 

management gathered for the career talk, 

the focus was on the economics of housing 

and homeownership. 

Odunsi who facilitated the sessions at 

the two locations highlighted the importance 

of a housing career by having a sustainable 

and balanced perspective to home 

ownership with considerations for size, 

tenure and options for acquisition. He commenced 

both sessions by asking a seemingly 

innocuous question as to whether housing is 

a means to an end or an end itself. 

nor, Akinwunmi Ambode said, “we love 

the criticism that Lagos is the second 

least livable city. It is a challenge to us and 

we are working on disproving the false 

basis of this ranking, but people forget 

that the major considerations for this 

classification are terrorism and crime, 

which I believe we do not have in Lagos. 

“I am passionate about Lagos. But I 

will not compare Lagos with Melbourne. 

What is important is that we are making 

some giant strides, positively affecting 

the lives of our people and even receiving 

accolades for what we have been doing. 

There is still a lot more to come and in another 

one year, I believe that people will 

see that Lagos has taken proper shape. 

I am a good listener and I appreciate 

objective criticism. I read and listen even 

though I often do not respond. 

Lagos is the most thriving cosmopolitan 

city right now in Sub-Saharan Africa. 

Our goal is to expand capital expenditure 

such that in another two to three years, 

Lagos State will become the third largest 

economy in Africa. These are just some 

of my random thoughts…”, he assured. 

Lagos residents were thrilled by this 

assurance from their governor. Fine & 

country describes the governor’s ‘random 

thoughts’ as visionary, saying that, 

if implemented, could open up some real 

opportunities for exponential growth in 

the state. “Imagine the value of real estate 

in the near future when Lagos attains the 

lofty goals of becoming the third largest 

economy in Africa? Now that’s a prospect 

to get excited about”, Udo Okonjo, the 

company’s CEO/Vice Chair, enthused. 

Okonjo advises that before that happens, 

“we all must become great ambassadors 

in spreading the news of what’s 

positive about not only Lagos but across 

Nigeria”, revealing that “there are pockets 

of opportunities which need to be highlighted 

to Nigerians at home and abroad, 

and it’s our collective responsibility not 

to allow others take over the narrative”. 

IPP to light up IIBC’s exclusive neighbourhoods, business districts 

In an environment where energy cost 

takes a large chunk of household and 

organizational income and supply 

is erratic, no effort is spared to leverage 

available alternatives. This is the basis 

on which the developers of the emerging 

Imperial International Business City 

(IIBC) have decided to light up the city’s 

exclusive residential neighbourhoods 

and business districts with independent 

power plants (IPP). 

IIBC is an upcoming smart city that 

will be sitting on 200 hectares of land 

to be reclaimed from the Lagoon in the 

Ikaete area of Lagos. The city, which will 

be parading exclusive neighbourhoods 

consisting of high-rise residential district 

offering luxury living and entertainment 

as well as business districts, will be 

featuring world class infrastructure that 

will set it apart as a new generational 

Taking the lead in this responsibility, 

Fine & Country and BusinessDay, 

Nigeria’s leading voice in business and 

financial journalism, will be ‘Taking 

Nigeria to the World’ in what has come 

to be known as the leading premium 

real estate forum—the Refined Investors 

Series. 

The event, already slated for October 

6 and 7 in London, will be targeting Diaspora 

Nigerians and other international 

investors. It is primarily meant for astute 

and aspiring investors to receive accurate 

destination. 

Among the several neighbourhoods 

in the city are the imperial city and the 

Marina East and West. Whereas the 

Imperial City located in the centre of the 

island city is the commercial focal-point 

of island, Marina West is a high-rise 

residential district close to the Imperial 

City. It has spectacular views across the 

marina and Lagos Bay, and provides city 

living close to the heart of the Island. 

The central business district (CDB) 

in the city is a walkable district centre 

and is linked to the marina with a green 

pedestrian corridor which is punctuated 

with a hierarchy of public places 

including a leisure fronted plaza and a 

transport hub that intersects with the 

main linear park. 

Vehicle access is along the west and 

eastern sides of the commercial core 

The Mott MacDonald of London Team during an inspection visit to the project site 

and current market insight. It will also 

lead conversations addressing the myths 

and misconceptions about investing in 

Nigeria while exposing, and connecting 

investors with safe, pre-qualified real estate 

opportunities from leading and most 

reputable Nigerian developers. 

“Certainly, for the real estate sector, 

we see exciting possibilities. We see 

growth prospects. We see, increasingly, 

the will by the government to improve 

standards in this sector going by the 

upgraded title registry and private sector 

and these link to a gateway from the 

main land. The gateway is celebrated 

with a large formal plaza which extends 

to the water’s edge. Tall iconic buildings 

form a distinctive skyline, visible from 

across the island and beyond. 

The district promises high energy 

mood while activities here will include 

restaurants, clubs, retail, motor boat 

sailing, outdoor performances in an 

environment that will give access to 

luxury marina leisure. 

Determined to ensure that the 

energy mix in the city is top-notch, 

ChannelDrill Resources Limited, the 

developers of the city have perfected 

plans to ensure that city boasts interrupted 

power supply that will luxury 

living an experience and not a wish in 

the city through the IPP initiative. 

“The IPP plan in the smart city is 

aimed to ensure that the city is selfsustaining. 

It will also ensure that the 

city has no need for the use of generator 

by residents, leading to clean energy. 

A waste treatment plant is to be built 

on the Island to produce methane that 

will be used for the production of more 

electricity or cooking gas”, said Olufemi 

Akioye, ChannelDrill’s managing director, 

assuring that “electricity will be 

available on daily basis; cooking gas will 

also be piped into each building thereby 

eliminating the use of gas cylinders. 

Continuing, he said, “the IPP plan in 

the smart city is aimed to ensure that the 

city is selfsustaining. Besides, the use 

of IPP in the city is to ensure that there 

infrastructure collaborations. There are 

many positive developments and we 

must celebrate them”, Okonjo said. 

For that reason, she added, her company 

and BusinessDay remain bullish 

and passionate about ‘Inspiring Confidence 

in Diaspora and International 

investors’ by taking Nigeria to the world 

through the Refined Investor Series. “Let 

us celebrate what’s positive while making 

progress towards what’s desired- a prosperous 

vibrant and respected economy”, 

she advised.w 

is no need for the use of generators by 

residents, leading to clean energy”. 

He assured that a waste treatment 

plant is to be built in the city to produce 

methane that will be used for the production 

of more electricity or cooking 

gas. “Electricity will be available on daily 

basis; cooking gas will also be piped into 

each building thereby eliminating the 

use of gas cylinders in the city,” Akioye 

assured further. 

Because of the epileptic nature of 

power supply in Lagos and other cities of 

the country, the developers have taken 

for granted that Lagos lacks the capacity 

to take up new demand coming from the 

Imperial city, hence their decision a new 

intake substation on the Island would 

be supplied directly from an existing 

substation on the mainland via a subsea 

cable. This, he explained, will act as a 

secondary supply to the city and could 

be used to export surplus capacity to 

the existing Lagos distribution network. 

He disclosed that the infrastructure 

consultants to the project, Mott 

MacDonald Limited of London were 

banking on past project experience on 

past master plans that were executed in 

climatic conditions similar to those of 

Lagos to estimate power density figures. 

“This will be calculated for each 

load zone based on land allocation; 

we are aware that air-conditioning is 

a large element within power demand 

in a highbrow area like the IIBC, so 

preliminary load estimate per plot is 

100MVA,” he said.

Tuesday 05 September 

27 

BUSINESS DAY 

Energy Report 

C002D5556 

Oil & Gas Power Renewables Environment 

Stakeholders want government to show commitment on energy mix policy 

Olusola Bello 

The need for Nigerian 

government 

to diversified her 

energy mix have 

again been emphasised 

as operators in the 

power industry say that is the 

only way the country can have 

a reasonable and sustainable 

energy that would help her 

development. 

According to the stakeholders 

any country that 

depends on one source of 

energy would forever remains 

under-developed and retrogressive. 

Tonye Cole, a co – founder 

of Sahara group owners of 

Egbin Power plc said that 

the country should diversify 

by harnessing her coal, biomass 

resources, sun and wind 

where ever possible so that 

the country can have a robust 

energy development. 

He urged the Federal Government 

to make policies 

that would make it easy for 

investors to invest in different 

areas of the energy mix, 

especially renewable and 

KELECHI EWUZIE 

Stakeholders in Nigeria’s 

gas sector have 

insisted that unresolved 

challenges in 

gas infrastructure will continue 

to pose bigger barrier 

for development in the sector. 

They observed that Nigeria 

as one of Africa’s leading 

oil producing country 

no doubt is endowed with 

abundant gas resources 

which holds huge potentials 

for unprecedented growth, 

however a cursory look at 

developments in the sector 

today suggest that the existing 

infrastructure does not 

provide robust technical 

and commercial framework 

for gas. 

Industry analysts opine 

that if the issue around infrastructure 

is not tackled, 

willing local investors will 

continue to shy away from 

putting their money into production 

of gas. 

They are of the view that 

Gas projects will become 

more profitable if indigenous 

provide clear cut road map 

on how they can make their 

returns without difficulties. 

He however commended 

the government for trying to 

work towards an energy mix 

policy, saying that it is a step 

in the right direction. “This is 

the right way to go”. 

He noted that the efforts 

government is making currently 

in this regards might be 

futile unless the rate at which 

energy is being stolen across 

the country is checked. 

The co-founder of Sahara 

Energy group stated that the 

stealing of energy must stop if 

the downstream of the power 

sector must develop. He decried 

the situation whereby 

some workers of Electricity 

Distribution Companies (Disco) 

in conjunction with some 

members of the public bypass 

meters and transformers to 

steal electricity. He described 

the situation as very bad, saying 

this will certainly hinder 

the growth of the industry. 

“As long as we have people 

who are consistently interested 

in compromising the 

downstream aspect of the 

electricity we would always 

have problems. We must stop 

Unresolved Infrastructure challenges 

stifling gas sector growth 

companies are given access, 

stressing that it will be easier 

for local companies with 

proven track records to attract 

investors to execute 

projects that can unlock gas 

for Nigeria. 

Analysts were unanimous 

in their calls that if government 

doesn’t address pressing 

issues bedeviling gas sector 

in the country currently, 

there will not be one penny 

investment in gas infrastructure, 

in gas development, in 

gas projects in Nigeria in the 

foreseeable future. 

Chijioke Mama, Founder 

of Energy Datar a Lagosbased 

advisory firm observes 

that the gas sector in Nigeria is 

progressing as an attachment 

to the oil sector and thus gas 

is sometimes treated as an 

incidental resource. Nigeria’s 

oil and gas laws contain many 

evidences to this and it should 

be discontinued. 

Mama asserts that there 

should be a proper decoupling 

of the gas sector from 

the oil sector with frameworks 

that will enable it to progress 

independently. “This 

includes dedicated gas exploration 

licenses and gas 

utilisation specific laws. Once 

this is achieved we will see 

improvements and accelerated 

efforts in other areas 

such as infrastructure, pricing, 

technology and skills 

development”. He said 

Gas infrastructure in the 

views of Ayodele Oni, an 

energy expert and lawyer is 

a very expensive project, but 

the private sector is willing 

to invest provided there is a 

willing buyer willing seller 

system; provided they can 

earn decent rate of return for 

their investment. 

“Nigeria’s gas development 

in the medium term 

could derive much from local 

demands as from export, if 

not in volume but in value”. 

He said. 

Oni says a strategic effort 

towards solving the issues 

around gas is the need to 

incentive gas projects by introducing 

a “gas preference” 

rule in the award and renewal 

of our current acreages. 

To him, “The gas price 

must also be liberalised so 

that operators are incentivised 

to enter into the industry. 

it,” he said. 

On the consistent complaints 

about low tariff by the 

Discos, he said there is the 

need for the government to 

educate the populace on the 

need to increase tariff so that 

they would buy into the idea. 

The consumers of electricity 

he said must be educated 

enough about the change in 

policy so as to know what is 

going to happen and the benefit 

for them at the end of the 

day if the tariff is increased. 

Akachukwu Okafor, 

founder, and lead consultant 

at Change Partners International, 

an energy, environment 

and sustainability consultancy 

firm said although 

Nigeria’s installed capacity 

is estimated at around 13,000 

MW, only half of it is operational, 

and a little below 

5,000 MW is generated and 

reaches consumers on the 

grid. 

He said restricted generation/output 

has been blamed 

on gas supply problems, water 

shortages, grid constraints 

and breakdowns. 

“With a current supply 

of130kWh per capita, Nigeria 

is lagging well behind 

other developing nations in 

terms of grid based electricity 

consumption. Based on 

the country’s GDP and global 

trends, electricity consumption 

should be four to five 

times higher than it is today. 

For example, Ghana’s per 

capita consumption of360k- 

Wh is 2.9 times higher than 

that of Nigeria, and South Africa’s 

(4,000kWh) is 31 times 

higher”. 

Primary energy consumption 

in Nigeria he said 

is largely satisfied by traditional 

biomass and waste 

(typically consisting of wood, 

charcoal, manure, and crop 

residues) and accounts for 

74% of the energy mix. He 

said this high share represents 

the use of biomass to meet 

off-grid heating and cooking 

needs, mainly in rural areas. 

As for renewable energy 

sources, Nigeria has standalone 

solar energy projects, 

which do not produce considerable 

electricity and a 

wind project that is yet to start 

generation, he said. 

He stated that the insufficient 

energy generation and 

inadequate transmission and 

distribution infrastructure 

is a great obstacle for economic 

growth and industry 

development. Energy supply 

shortage have an adverse effect 

on the standard of living 

of the citizens. 

“Realising the great economic 

risks that come with 

relying heavy on only a few 

sources of energy, the Nigerian 

government took a decision 

to add nuclear power to 

diversify the energy mix and 

generate reliable and affordable 

electricity. 

He said Nigeria wants 

to embark on the path of 

dynamic development it 

needs more than 60,000 MW 

to ensure sustainable growth. 

“The Nigerian government 

aims to electrify at least 

80% of its population by the 

year 2035, and is investing in 

nuclear energy to help meet 

this target. 

As oil prices weather storm, OPEC looks 

for long-term boost from Harvey 

For veteran OPEC officials, 

Hurricane 

Harvey’s impact on 

global oil markets is 

one of the strangest things 

they have seen. 

The storm has led to some 

of the biggest disruptions to 

U.S. energy infrastructure; 

yet it has failed to boost crude 

prices. 

According to Reuters in 

contrast with previous major 

hurricanes such as Katrina 

in 2005, Harvey has actually 

seen oil prices edge down as 

traders have focused more on 

the hit to demand from damaged 

U.S. refineries than the 

blow to supply from knockedout 

production. 

That is deeply frustrating 

for OPEC countries currently 

restricting oil supplies in an 

attempt to push prices higher. 

“It seems no event will 

move the oil price up much,” 

said one OPEC delegate, surprised 

by the lack of impact 

from Harvey. 

Another was also bemused 

after oil prices fell this 

week, defying too a steep drop 

in Libyan production due to 

unrest. 

“It is all really strange. The 

sentiment of the market has 

changed a lot in the last 10 

years,” he said. 

Whether the market continues 

to frustrate its wouldbe 

masters remains to be 

seen, however, with analysts 

divided whether demand 

from U.S. refineries will recover 

more quickly than U.S. 

production. 

OPEC long ignored the 

U.S. shale revolution that 

helped the world’s largest 

oil consumer sharply raise 

output and become a major 

exporter of both crude and 

products in recent years. 

When it finally recognized 

the threat, OPEC led by Saudi 

Arabia embarked on a pump 

war with the United States 

aimed at hitting the high-cost 

U.S. industry with lower oil 

prices. 

In the past two years, however, 

OPEC has restrained 

production to prop up prices, 

because the pain of cheaper 

barrels was putting too much 

stress on most members’ 

finances. 

The move has revived 

growth in the U.S. oil industry, 

with production and exports 

hitting new highs - until 

Harvey. 

Unlike hurricanes Katrina 

or Gustav, when strong winds 

mainly caused damage to oil 

production, Harvey has also 

severely disrupted the U.S. refining 

industry and products 

pipelines, causing a spike in 

products prices. 

Olivier Jacob from consultancy 

Petromatrix said U.S. 

gasoline prices were trading 

at levels normally equivalent 

to oil prices of around $84 

per barrel, whereas Brent and 

WTI crude futures are actually 

at $51 and $46 per barrel 

respectively. 

Olusola Bello, Team lead, Analysts: Kelechi Ewuzie, Isaac Anyaogu, Graphics: Fifen Famous. Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378; +234-8036534708



C002D5556 

Energy Report 

NERC opens grid connected investment windows for feed-in tariff, net metering 

... Targets 2,000MW from renewable energy sources by 2020 

ISAAC ANYAOGU 

The Nigerian Electricity 

Regulatory Commission 

(NERC) has opened 

three investments windows 

in net metering, 

feed-in tariff and capacities above 

earlier agreed thresholds to encourage 

investments in grid connected 

renewable energy projects in the 

country 

Net metering is a billing mechanism 

that credits solar energy system 

owners for the electricity they 

add to the grid, while a feed–in tariff 

is a policy mechanism designed to 

accelerate investment in renewable 

energy technologies by offering 

long-term contracts to renewable 

energy producers based on the cost 

of generation. 

According to information obtained 

from NERC’s website, the 

first window is the net-metering 

for very small capacities below 

1 megawatt while the second is 

the feed-in tariff for capacities up 

to 5 MW of solar, 10 MW of wind, 

10 MW of Biomass and 30MW of 

small hydro. The third window is 

for capacities above these thresholds. 

“NERC is committed to stimulating 

investment in renewable energy 

generation in Nigeria. With a vast 

and mostly untapped potential in 

renewable energy resources, the 

Commission has set a target of generating 

a minimum of 2,000MW of 

electricity from renewables by the 

year 2020,” said NERC on its website. 

Renewable energy industry 

operators have long decried the 

absence of net metering and feed-in 

tariff mechanisms in Nigeria’s electricity 

sector, which has discouraged 

investment in renewable energy 

to add to Nigeria’s 6,000MW grid 

capacity. 

“A major challenge operators 

have, is the absence of a developed 

grid that will allow investors to take 

advantage of mechanisms, such as 

net metering and feed-in tariff to 

spur investments in the sector. In 

the absence of this, investors are 

counting on offgrid solutions,” said 

Yusuf Sulaiman, MD of Blue Carmel 

Energy, during a presentation at the 

Nextier Power conference held last 

Thursday, in Lagos. 

Due to the absence of net metering 

and feed-in tariff, embedded 

generation around the country 

waste excess capacity produced. 

The net metering regulation will now 

allow operators who generate excess 

capacity feed it back to the grid and 

be paid according to the Multi Year 

Tariff Order (MYTO) 2015. 

NERC says operators who want 

to take advantage of this regulation 

would be subjected to competitive 

tender that would be procured 

through the Nigerian Bulk Electricity 

Trading (NBET). 

NERC recently approved a mini 

grid regulation which provides that 

an isolated mini grid with distributed 

power larger than 100kW and up 

to 1MW of generation capacity will 

require a permit, while for isolated 

mini grids with distributed power 

of up to 100kW, a permit is optional. 

It is however, subject to conditions 

including an understanding with 

the DisCos operating around the 

franchise area. 

Mini-grids are electricity supply 

systems with their own power 

generation capacity, mostly from 

renewable energy, supplying more 

than one customer and can operate 

either in isolation from or connected 

to an existing distribution 

network. 

“The Mini Grid Regulation seeks 

to incentivize and simplify the 

process for private sector participation 

in the Mini Grid sector of the 

Nigerian Electricity Market, which 

will in turn contribute to increasing 

access to electricity in unserved and 

underserved parts of Nigeria (rural 

and urban areas),” said legal analysts 

at Detail Commercial Solicitors who 

helped write the regulation, on the 

company’s website. 

Until now, Nigeria has only paid 

lip service to the national renewable 

energy and energy efficiency 

policy, approved since 2015, which 

sets out a framework for action to 

address the challenges of inclusive 

access to modern and clean energy 

resources, improved energy security 

and climate objectives. 

Delta, Benin Disco, Thames sign 

MoU on 20 mw Isoko Power plant 

Efforts at ensuring that over 

200 commercial entities 

around Ozoro in Isoko 

Local Government areas 

of Delta State benefit from power 

supply has gotten a boost as Benin 

Electricity Distribution Plc (BEDC) 

signed a Memorandum of Understanding 

(MOU) with Thames 

Energy Limited and the Delta State 

Government on the construction 

of 20megawatts power plant in 

the area. 

The MOU signing ceremony, 

which took place at BEDC Head 

Office in Benin signalled a tripartite 

partnership that is expected to 

galvanize the potentials of several 

commercial entities in addition to 

rejuvenating the economy of the 

Isoko and thus make the location 

an economic hub for Delta State. 

Funke Osibodu, managing 

director/ceo, BEDC, in her opening 

remarks at the ceremony, said 

the company was poised to make 

the project a reality with a view to 

improving on the socio-economic 

development of the Isoko people 

and Delta state at large. 

Osibodu who argued that no 

urban renewal or development 

was complete without power 

supply, said BEDC’s involvement 

in the deal was informed 

by the quest and commitment 

at improving the quality of life of 

customers through the provision 

of reliable and stable electricity 

supply with limited interruptions. 

Also contributing, Abu Ejoor, 

executive director, Commercial, 

commended the people of Ozoro 

for creating a peaceful and friendly 

environment for the project to 

take off. 

The Executive Director said 

the project when completed will 

improve the lots of the people, 

create jobs, reduce poverty and 

create enterprise. 

Akpovi Oyo, managing director 

of Thames Energy Limited, 

assured that the power plant 

project would be completed within 

18months saying that power 

was one of the biggest industries 

which required tapping into with 

a view to enable sustenance in the 

economy. 

He declared that the rationale 

for the project was to ginger 

Deltans into improving the lots 

of its people, create jobs and 

reduce poverty, explaining that: 

“it is an off grid project where 

20megawatts of electricity would 

be installed in the first phase, 

while the second, third and 

fourth phase will come up based 

on demand.” 

“In a couple of weeks, a ground 

breaking will be done for construction 

to kick off immediately,” 

he pledged, adding that Delta 

State required five of such power 

plants in key areas.” 

In his remarks, Delta State 

Commissioner for Urban Renewal, 

Ilolo Oghenekaro commended 

BEDC for its display of professionalism 

in the packaging of the 

project, declaring that Delta State 

was committed to the development 

of key infrastructure that will 

improve the economy. 

“You cannot renew any urban 

centre without critical infrastructure 

like power, hence the basis for 

the Delta State government’s partnership 

with BEDC and Thames 

Energy on the project” he said, 

expressing hope that the partnership 

will bear fruit. 

“Power is the biggest industries 

that is emerging out of the 21st 

industry which will be bigger than 

telecoms and there is need to key 

in into the sector in such a way that 

it will help everybody. 

Nigerian businesses shortlisted for Shell 

Global entrepreneurship innovation prize 

Three Nigerian entrepreneurs 

have been shortlisted 

for Shell LiveWIRE 

‘Top Ten Innovators’, a 

global competition which highlights 

and rewards LiveWIRE 

businesses that demonstrate excellence 

in innovation. 

According to a statement from 

Shell,the three Nigerians have 

come up with creative ideas on 

energy efficiency and access to 

chemical and paint products, 

and join 22 entrepreneurs from 

nine countries to vie for the prestigious 

prize. A public vote of the 

shortlisted businesses takes place 

September 1–8, 2017, with the 

results helping to determine the 

winners. 

“We are pleased at the opportunity 

for the Nigerians to 

showcase their talent on the global 

stage using Shell’s flagship entrepreneurship 

development 

programme,” said Igo Weli, General 

Manager, External Relations, 

Shell Petroleum Development 

Company of Nigeria Ltd (SPDC.) 

“SPDC launched the LiveWIRE 

programme in Nigeria in 2003, 

providing training, business development 

services and start-up 

capital for youth-owned businesses. 

Our ambassadors have 

benefitted from this support to 

make their mark and we call on 

Nigerians to encourage them by 

voting for their ideas.” 

‘Top Ten Innovators’ is a 

worldwide competition open to 

the alumni of Shell LiveWIRE, a 

Royal Dutch Shell Social Investment 

Programme, operating in 15 

countries, which enables young 

people to start their own business 

and create employment. The 

shortlisted entrepreneurs have the 

chance to win a top prize of US 

$15,000, three Runner-up prizes of 

US $10,000 or six Merit awards of 

US $5,000. The programme aims to 

create role models for other young 

entrepreneurs, and demonstrate 

that introducing innovation supports 

growth and job creation. 

Joanna Cochrane, Vice President 

Social Performance at Shell 

said, “Shell LiveWIRE is very 

important to us, because when 

we help local entrepreneurs to 

set up businesses, they create 

long term sources of income for 

communities, they create jobs 

and they help to find innovative 

solutions to social and economic 

problems.” 

The Nigerian businesses 

are:Nigeria De-rahbs Energy Services: 

Produces, installs, services 

and repairs solar energy equipment, 

and also provides training 

to future engineers and energy 

entrepreneurs. 

Nigeria Emobella Engineering 

Nigeria Ltd: Provides engineering 

services with a USP of 24h availability 

and high-quality customer 

service. 

Nigeria Fendwall Paint and 

Chemical Products: Produces and 

retails household and commercial 

paint products via a business model 

supporting low-income customers 

to access their products. 

Since its introduction in Nigeria 

in 2003, the LiveWIRE programme 

has trained 6,550 Niger 

Delta youths in enterprise development 

and management, and 

provided business start-up grants 

to 3,313.

Tuesday 05 September 2017 C002D5556 BUSINESS DAY 29 

Harvard 

Business 

Review 

Tips 

& 

Talking Points 

TALKING POINTS 

Entrepreneurial Ambitions 

1 in 4: According to a global study 

conducted by the INSEAD Emerging 

Markets Institute, Universum and the 

HEAD Foundation, 1 in 4 Generation Z 

workers — or those born after 1997 — is 

interested in starting a business. 

Plan what you’re going to say before 

starting a difficult conversation 

To get your boss to Stop 

micromanaging, clarify 

expectations 

The Cost of Employee Burnout 

20-50%: According to a survey of American 

human-resources executives conducted 

earlier this year by Kronos and 

Future Workplace, almost half reported 

that employee burnout accounts for 

20-50% of worker turnover at their 

companies. 

A Growing Economic Power 

$1.1. trillion: Consumer spending in 

Africa rose from $470 billion in 2000 to 

more than $1.1 trillion last year. 

Freelancer Payment Woes 

70%: According to data from the Freelancers 

Union, as many as 70% of freelance 

workers in the U.S. encounter 

trouble getting paid at some time in 

their careers. 

Support for Flexible Work Arrangements 

70%: More than 70% of respondents in a 

19-country survey said that flexible working 

arrangements would be an important 

aspect of their work lives through the 

next decade. 

Have you been putting off an important 

but difficult conversation? Perhaps you 

just can’t bring yourself to share some 

negative feedback with a peer. Or maybe 

you’re hesitant to admit to something you 

did wrong. But postponing a potentially 

awkward conversation usually only makes 

it worse. In the majority of situations, you 

should have the difficult conversation as 

quickly as possible. Just be sure to prepare 

beforehand. Write down exactly how 

you plan to broach the subject, and then 

share your thoughts with someone you 

trust. Find ways to make your message 

as objective as possible so that you’ll be less 

likely to trigger defensiveness. Remove judgment-laden 

terms, and stick to the facts. For 

example, you can replace “You were highly 

disrespectful of me in that meeting” with 

“You spoke over me on three occasions.” The 

more verifiable your position is, the more 

confident you can be that the conversation 

will stay professional. 

(Adapted from “A Game Plan for That Conversation 

You’ve Been Putting Off,” by Liane 

Davey) 

Do you ever feel like your boss is doing 

your job for you, preventing you 

from doing your best work? If your 

manager is stepping on your toes and 

getting in your way, have a discussion 

to clarify the expectations around your 

role. This might reveal that your boss 

isn’t even aware of what they’re doing. 

You can also ask if you’re falling short 

on some tasks — a gentle way to clue 

your boss in, or open up a door to 

important feedback. Micromanaging 

might be your boss’s way of trying to 

fix a problem that you weren’t aware 

existed. If nothing else is working, be 

direct: Point out the consequences 

of their behavior, unintended or not, 

and then try problem solving together. 

(Adapted from “How to Tell Your 

Boss to Stop Doing Your Job,” by Ron 

Carucci) 

Create a road map to make your 

work feel more purposeful 

ing on and when. Finally, 

name your distractions — and 

understand the root cause of 

them — so that you can catch 

yourself and return your attention 

to those tasks on your 

priority list. Knowing what 

you’re doing and why can 

give your job a fuller sense of 

purpose. 

(Adapted from “Stop Mindlessly 

Going Through Your 

Work Day,” by Leah Weiss) 

It’s too easy to allow entire 

days to pass by in a blur, 

without being able to articulate 

what you’ve actually 

done. One of the most 

effective tactics for staying 

focused and productive is 

to bring purpose to each 

moment of your work. 

Start by understanding and 

articulating how your daily 

work connects to your personal 

goals and the goals 

of the organization. Then 

use that information to 

create a road map in which 

you identify which tasks 

are critical and which can 

wait. Make time estimates 

for each task, plotting out 

your work so that you know 

what you should be focusc 

Don’t accept a job offer until you assess 

the 0rganizational culture 

You got the job. Now for the 

hard part: deciding whether 

to take it. Start by doing due 

diligence on the organization 

and its people to learn whether 

you would enjoy working 

there. Ask yourself, “Is this a 

place where I will 

be happy? Where 

I will be challenged? 

Where 

I will thrive?” 

Reaching out to 

your contacts and 

LinkedIn network 

and ask questions 

such as “What is 

the organization 

like?” and “How 

long do people stay?” Find 

out what happened to the last 

person who had the job you’ve 

been offered. If you can, do a 

trial run at the company. You 

can say, “I really want to learn 

more about this organization. 

Can I spend a few hours with 

the team?” You will not be able 

to negotiate or change the organization’s 

culture, of course, 

but it’s helpful to know beforehand 

what you’re getting into. 

(Adapted from “How to Evaluate, 

Accept, Reject, or Negotiate 

a Job Offer,” by Rebecca Knight) 

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

Take notes during meetings to be a better listener 

Nothing derails a meeting 

faster than people speaking 

just to be heard, interrupting 

each other and failing to 

integrate each other’s points. 

Being a good listener can 

help you be sure you aren’t 

adding to the chaos. Use a 

simple note-taking method 

called “margin notes” to help 

you separate key points of 

discussion from your questions 

and concerns, allowing 

you to truly listen to what’s 

being said. In the main body 

of your notes, write down only 

what the other person is saying, 

and then write your ideas and 

judgments to the side, allowing 

you to set aside your own voice, 

and giving you space to listen 

to others. If you take the time to 

write down your observations 

and make connections between 

key ideas, you can thoughtfully 

craft your contributions to the 

discussion and set an example 

for others to do the same. 

(Adapted from “Become a Better 

Listener by Taking Notes,” by 

Sabina Nawaz)



C002D5556


C002D5556 

BUSINESS DAY 

31



C002D5556 

Read Ambitiously 

Stocks fall, safe havens 

swell on North Korea 

nuclear test 

MIKE BIRD & ESE ERHERIENE 

Investors moved into haven assets 

and sold stocks following 

North Korea’s largest-ever nuclear 

test, prompting U.S. President 

Donald Trump to denounce the 

country as a hostile rogue nation. 

Just before European markets 

opened, South Korea’s Defense 

Ministry reported that North Korea 

was again preparing for a possible 

missile launch. 

Still, analysts said the moves 

were relatively muted and pointed 

to past market reactions to North 

Korean missile and nuclear tests, 

which have quickly been reversed. 

The Stoxx Europe 600 index was 

down around 0.4% at midday in 

London, after falling by as much as 

0.7% earlier in the session. Japan’s 

Nikkei 225 closed 0.93% lower. 

U.S. equity futures were hit too, 

with the S&P 500 down 0.3% and 

Dow Jones Industrial Average 0.2% 

lower. Most U.S. financial markets 

are closed Monday for Labor Day. 

“In general, investors have been 

rewarded for ignoring recent political 

risks and taking a long-term 

view, that’s what we recommend 

to our clients,” said Tilmann Galler, 

global market strategist at J.P. Morgan 

Asset Management. 

“Overall you need to recognize 

and take into account the 

overall fundamentals for the 

market, the economic and earnings 

growth we’ve seen in recent 

quarters,” he added. 

North Korea’s acceleration of 

both its nuclear and missile programs 

has presented Mr. Trump 

with his biggest foreign-policy 

crisis. In the wake of the latest escalation, 

the U.S. said it was drawing 

up new economic sanctions. 

The Japanese yen came off 

its initial lows and fluctuations 

in Asian markets were more 

pronounced last Tuesday, when 

North Korea fired a missile over a 

main Japanese island for the first 

time since 2009. 

As morning trading ended in 

Europe, the dollar was down 0.5% 

against the yen, with the dollar-yen 

pair at ¥109.6. The Swiss franc, another 

haven currency, was up 0.7% 

against the dollar. 

In other haven assets, New York 

spot gold prices were up 0.7% to 

$1,340.1, after rising by slightly over 

1% to touch 11-month highs earlier 

in the session. 

Investors and analysts have 

struggled in recent weeks to weigh 

up how much of a market reaction 

the escalating tensions between 

the U.S. and North Korea should 

warrant, and have generally advocated 

caution against selling. 

China bans digital coin offers as 

celebrities like Paris Hilton tout them 

PAUL VIGNA 

Chinese regulators 

on Monday declared 

initial coin offerings 

illegal, dealing a blow 

to the latest financialmarkets 

mania and sending the 

prices of the two leading cryptocurrencies, 

bitcoin and ether, 

tumbling. 

The move by China, which 

included a call for fundraising activities 

through the digital tokens 

to “cease immediately,” follows on 

the heels of a recent warning by 

the U.S. Securities and Exchange 

Commission that it may treat the 

coins as securities. 

The regulatory maneuvering 

occurs as fears have grown about 

initial coin offerings, which have 

captured investors’ imagination 

like dot-com startups once did 

years ago. 

Paris Hilton on Sunday tweeted 

about a coin offering. Boxer 

Floyd Mayweather has promoted 

two separate offerings. Tim Draper, 

a founder of the Silicon Valley 

Kenya election ruling may be 

watershed for African democracy 

JOE PARKINSON 

The stunning ruling by 

Kenya’s Supreme Court to 

annul last month’s presidential 

election marks a 

new threshold for democracy in 

Africa, and a new front in a battle of 

ideas over resurgent authoritarianism 

elsewhere on the continent. 

The verdict comes as the contest 

between political systems in 

Africa has become more intense 

than at any moment since the 

Cold War, when U.S. and Sovietbacked 

regimes faced off across 

swathes of the continent. Emboldened 

democrats are jostling with a 

rising cadre of autocratic technocrats 

who argue that Western-style 

democracy has failed to produce 

a large and sustained rise in living 

standards. 

Kenya’s institutions struck a 

symbolic blow for the rule of law on 

Friday, as top judges on Friday up- 

venture-capital firm Draper Fisher 

Jurvetson, has said two of his coin 

holdings could bring about a “sea 

change as big as the internet.” 

Coin offerings this year have 

raised nearly $1.5 billion, up from 

$256 million last year, according to 

research site CoinDesk. Of offerings 

that have gained since their 

launch this year, the coins have 

jumped nearly 28 times in value, 

on average, according to data from 

research firm Smith & Crown. 

But the latest market gold 

rush also has produced its share 

held an opposition challenge 

alleging the Aug. 8 poll, which 

authorities initially declared was 

won decisively by President Uhuru 

Kenyatta, was marred by irregularities. 

Mr. Kenyatta has grudgingly 

accepted the court’s call for a rerun, 

reassuring his supporters he will 

win a second poll. 

Kenya now moves into uncharted 

territory, holding another 

expensive and potentially divisive 

ballot within 60 days. But the judges’ 

ruling has already made history. 

It is the first of its kind in Africa and 

only the fourth time globally that 

courts have overturned presidential 

poll results after Austria, the 

Maldives and Ukraine. 

As party leaders returned to 

campaign mode, many in Nairobi 

spoke of their pride in a verdict 

that has spotlighted the independence 

of the country’s institutions 

and for now helped narrow bitter 

political divides. 

of pyrite. Of more than 100 coin 

offerings launched this year, 10% 

have declined in value and 30% 

haven’t traded, according to Smith 

& Crown. 

Losing deals, which initially 

raised nearly $300 million, have 

lost about 40%, on average, since 

their offerings, the Smith & Crown 

data show. 

Duds have included some 

highly publicized offerings. 

Coins offered by Bancor, which 

is designing an exchange for the 

growing number of coins being 

offered by companies involved 

with cryptocurrencies, are down 

12% through Aug. 30. Bancor 

initially raised $143 million. Estonia-based 

Polybius, which raised 

about $32 million, has dropped 

about 24% since its offering. 

Bancor Chief Executive Guy 

Benartzi said his project had been 

hurt by external criticism, but 

added that the short-term price 

isn’t a concern to him. Polybius 

project manager Vitali Pavlov said 

the token’s price is probably due to 

limited liquidity, and he still sees 

“significant” upside. 

The losses haven’t deterred 

some coin buyers, many of whom 

have made so much in other deals 

that they are eager to take more 

chances. Mike Bardi, 28 years old, 

is a Chicago entrepreneur who 

started investing in cryptocurrencies 

last summer, just before the 

two big ones, bitcoin and ether, 

started taking off. 

In a year, he turned an inheritance 

of $80,000 into a couple of 

million dollars. “It was pure luck, 

literally,” he said. Mr. Bardi then 

put $1 million into Bancor, even 

as the price was falling. 

While Mr. Bardi said he is 

mindful of price swings, and isn’t 

willing to take a chance on another 

token offering, he said he 

believes in Bancor’s product and 

has no plans to sell. “I’m not really 

touching it,” he added. 

Trump expected to lift protections for immigrant 

‘dreamers’ but delay move for up to six months 

MICHAEL C. BENDER & LAURA MECKLER 

President Donald Trump 

is expected to lift deportation 

protections for 

undocumented immigrants 

brought into the country 

as children, but delay the move 

for as long as six months in order 

to allow time for Congress to approve 

legislation to substitute for 

the program, two White House 

officials said. 

The officials cautioned that 

such a move remained under 

consideration, and weren’t yet 

finalized. 

House Speaker Paul Ryan and 

other Republicans in recent days 

had joined Democrats in urging 

Mr. Trump to retain the Obamaera 

program that protects young 

illegal immigrants from deportation, 

promising to push legislation 

to protect them if he doesn’t. 

The program is called DACA, for 

Deferred Action for Childhood 

Arrivals. 

Mr. Trump was facing pressure 

from both sides of the emotional 

debate, and the White House said 

Friday the president would announce 

his decision on Tuesday, 

after the long Labor Day weekend. 

Asked at an Oval Office appearance 

Friday if the young 

immigrants, known as Dreamers, 

should be worried, Mr. Trump 

said: “We love the Dreamers…We 

think the Dreamers are terrific.” 

Immigration hard-liners inside 

his administration have 

been urging the president to kill 

the program, and 10 states were 

threatening to sue him if he didn’t. 

Pressure to keep it came from Mr. 

Ryan and other Republicans, as 

well as from U.S. corporations and 

the young people themselves. 

Mr. Ryan said Friday that former 

President Barack Obama 

was wrong to create the Deferred 

Action for Childhood Arrivals 

program using executive authority, 

but that Mr. Trump shouldn’t kill it. 

The program, created in 2012, 

offers young people brought to 

the U.S. as children a reprieve 

from deportation and work permits. 

Since then, nearly 800,000 

people have enrolled. Mr. Obama, 

a Democrat, and his advisers 

have defended the program as a 

legitimate exercise of presidential 

discretion. 

Mr. Trump opposed the program 

as a candidate but has allowed 

it to continue and said the 

issue is a difficult one for him. 

The 10 states threatening to sue 

the administration over the issue 

set Tuesday as the deadline 

for him to make a decision, and 

anticipation has run high as that 

date approaches.


New investor in 4th Mainland Bridge emerges... 


Visible Assets Limited and Access 

Bank Plc. 

The contract was sealed in 

May 2016 with the signing of a 

Memorandum of Understanding 

(MoU) between the government 

and the investors for 

the construction of the bridge 

within three years. But one 

year after the MoU, nothing had 

happened. Akinsanya said the 

state government this time, had 

to more painstakingly verify the 

claims of would-be investors 

who have submitted proposals 

Cross-section 

of holiday makers 

boarding 

the free train 

provided by the 

State of Osun 

government to 

return to Lagos 

after 2017 Eidel-Kabir, 

at Osgbo 

Terminus 

of the Nigerian 

Railway Corporation, 

Osogbo, 

yesterday. 


expired in 2014, many Nigerians, 

especially those who maintained 

multiple international 

travel passports under different 

identities, which they switched 

for various purposes, especially 

upon being denied visa by some 

countries, have now become 

restricted to their true and verifiable 

identities. 

The immigration department 

source further said that the deluge 

of name change and identity 

verification advertisements in 

the Nigerian media, following 

the Bank Verification Number 

exercise, underlines the volume 

of “shoddy and shady” identifications 

presented by many 

Nigerians before then. 

Abiola Akiyode Afolabi, 

Chairperson, Transition Monitoring 

Group, says that the digital 

passport regime has limited the 

incidence of identity crimes in 

Nigeria but observes that more 

can be done to create synergy 

with other digital identity verification 

platforms, such as the SIM 

card registration and the BVN. 

“When you go to the airport 

now, one of the things they do is 

to scan your passport and when 

they scan it, it shows whether it 

is original or not, but I think that 

criminal acts could be reduced 

drastically if there are greater 

because the mistakes of the past 

must be avoided. 

According to Akinsanya, 

the government will announce 

the new investors/partners 

before the end of year, just as 

he dismissed insinuations in 

some quarters that the project 

is unrealisable. 

“The 4th Mainland Bridge is 

realisable and I want to assure 

Lagosians that the present administration 

of Governor Akinwunmi 

Ambode is totally committed 

to it. We had to terminate 

the last contract because of the 

Nigeria’s image, business gaining on identity... 

synergies. 

“I do not think these things 

have been linked in such a way 

that it could be used as a source 

of identification by Nigerians 

in other countries. In other developed 

countries, your social 

security card says a lot about 

you. You can use it to know your 

name, address, work and many 

other personal information. We 

have not explored this yet in 

Nigeria,” Afolabi said. 

She explained that in the 

United States of America, when 

a crime is committed, the information 

of the culprit could 

be accessed and could help in 

investigation and tracking down 

of criminals, adding that Nigeria 

can achieve this feat if there are 

proper synergies. 

“There could be synergy at 

some point. The Nigerian Immigration 

Service is collaborating 

with National Identity Management 

Commission, (NIMC) so 

that the information in our data 

base can be accessed and the 

information in NIMC can also be 

accessed together,” a senior immigration 

service source added. 

Although the global online 

fraud report by Iovation in 2012 

ranked Nigeria as the highest 

for cybercrime activities, recent 

data from the Nigeria Inter-Bank 

Settlement System (NIBSS) on its 

fraud landscape report, shows the 

decline of e-fraud in the country. 

Femi Fadairo, Head, Industry 

Security, NIBSS, said at a Cyber 

security and Banking Fraud 

Summit, held in Lagos that 

Nigerians are becoming more 

comfortable transacting on electronic 

channels which seem to 

be more much safer than before. 

“There has been a 43 percent 

increase in the volume of 

electronic transactions and 11.5 

percent increase in the value 

of transactions done online 

between 2014 and 2015. Even 

with the bad economy, Nigeria 

still saw a volume of 166,598,740 

e-transactions compared to the 

volume of 43,857,767, 842 in 

2014,” he said. 

Fadairo said that regardless 

of the fact that electronic transactions 

have increased, which 

should naturally translate to 

higher risk, Nigeria has seen less 

e-fraud cases over the years. 

“In 2014, a total of 1,461 fraud 

cases were reported, with an attempted 

fraud value of N7.8 billion 

but there were eventually able 

to steal about N6.2 billion. That is 

a success rate of over 80 percent. 

“However, in 2015, we had 

a total of 10,743 fraud cases 

reported with a value of about 

N4.3 billion and the actual loss 

was about N2.2 billion. From 

these statistics, we can see that 

the success rate has decreased. 

C002D5556 

long delay in commencement 

of work by the investors. We 

have learnt from that mistake 

and we have to get it right this 

time,” he said. 

Governor Akinwunmi Ambode 

had announced at the 

signing of the MoU with the 

formers investors last year, that 

the proposed alignment of the 

bridge would pass through Lekki, 

Langbasa and Baiyeiku towns, 

along the shoreline of the Lagos 

lagoon estuaries, further running 

through Igbogbo River basin and 

crossing the Lagos lagoon estuaries 

to Itamaga area in Ikorodu. 

The alignment is also designed 

to cross through the 

Itoikin road and the Ikorodu– 

Sagamu road, to connect Isawo, 

inward Lagos Ibadan Expressway 

at the Ojodu Berger axis. 

“This structure will be a fourlane 

dual carriageway with 

each comprising three lanes 

and two metres hard shoulder 

on each side. The bridge will be 

constructed to have a generous 

median to allow for both 

future carriageway expansion 

and light rail facility with huge 

benefits to be derived from this 

project, but most importantly, 

make life more comfortable for 

Lagosians,” Ambode said. 

Also the value of attempted 

fraud and the actual losses also 

reduced. Although we had more 

fraud attempts reported, many of 

those frauds did not sail through, 

to as compared to 2014,” he said. 

Regha Onajite, Chief Executive 

Officer, Electronic Payment 

Providers Association (E-PPAN) 

said “most of the issues we have 

with e-commerce seem to revolve 

largely around anonymity that 

beclouds the whole process.” 

Fortunately, the CBN recognised 

these issues and came 

up with the BVN registration 

amongst other means to verify 

the identity and authenticate 

every account holder. 

Dipo Fatokun, director, banking 

and payment systems department 

at the CBN said Nigeria’s 

reliance on mobile technology 

made it compulsory for the 

Central Bank to keep working on 

new ways to further the banking 

environment in Nigeria. 

“The CBN remains in the 

fore-front of ensuring that hacking 

security is not up-ended 

and this, we have been able to 

achieve by providing leadership 

to the Nigerian Electronic 

Fraud Forum (NEFF) which is an 

industry initiative that has aims 

such as educating and informing 

all banks and other stakeholders 

of various electronic fraud 

issues and trends, both locally 

and globally. 

BUSINESS DAY 

33 

NEWS 

Briefs 

Harvey: Texas recovery could cost $180bn 

Texas Governor Greg Abbott 

has said the bill for reconstruction 

after Hurricane Harvey 

could be as high as $180bn 

(£138bn). 

He said the damage was 

worse than that caused by Hurricane 

Katrina, which devastated 

New Orleans in 2005. 

VW recalls 1.8 million cars in China 

More than 1.8 million Volkswagen 

cars are being recalled in China 

because of a faulty fuel pump. 

China’s consumer watchdog 

said the recall affected vehicles 

made by VW and its two Chinese 

joint ventures with SAIC and FAW. 

The defect can cause the engine 

to stall due to an electronics failure 

in the fuel pump. 

Boeing declares victory in Airbus subsidies dispute 

US aircraft manufacturer 

Boeing has won a victory in a 

long-running dispute with European 

rival Airbus. 

The World Trade Organization 

has reversed on appeal a 

ruling that Boeing received some 

state aid to help build its newest 

aircraft, the 777X. 

“The WTO has rejected yet 

another of the baseless claims 

the European Union has made,” 

Boeing said in a statement. 

Bitcoin peaks above $5,000 for first time 

Bitcoin has crossed the $5,000 

(£3,862) threshold for the first 

time. 

The virtual currency peaked 

at $5,103.91 in the early hours 

of Saturday, according to 

CoinDesk’s price index. 

The record high helped push 

the total value of publicly traded 

crypto-currencies- including 

Ethereum and the Bitcoin-offshoot 

Bitcoin Cash - to more 

than $176bn. 

Trump opens door to attack on North Korea 

The Trump administration 

has warned North Korea that 

any threat to the US or its allies 

would be met with a “massive 

military response”, opening the 

door to direct military conflict 

with Pyongyang following its 

largest nuclear test to date. 

The warning from Jim Mattis, 

the defence secretary, came 

after a White House meeting 

between Donald Trump and his 

top military advisers on Sunday 

in which the US president 

reviewed defence department 

plans to respond to a North Korean 

provocation. 

U.S. gasoline prices tumble as Harvey subsides 

Benchmark U.S. gasoline 

prices slumped on Monday to 

pre-Hurricane Harvey levels as 

oil refineries and pipelines in the 

U.S. Gulf Coast slowly resumed 

activity, easing supply concerns. 

Brent crude oil futures were 

flat at $52.75 by 1340 GMT, paring 

earlier losses after a powerful 

North Korean nuclear test triggered 

a shift away from crude 

markets to assets perceived to 

be safer, such as gold.


34 BUSINESS DAY


C002D5556 

BUSINESS DAY 

35


NEWS 

August PMI shows growth in production 

level of manufacturing sector 

HOPE MOSES-ASHIKE 

Production level index 

for manufacturing 

sector grew for the 

sixth consecutive 

month in August 2017, according 

to the Central a Bank 

of Nigeria (CBN). 

The index, which stood 

at 57.4 points in the month 

under review, indicated an 

increase in production at a 

slower rate, when compared 

to its level in the preceding 

month. Of the 16 manufacturing 

subsectors, 11 recorded 

increase in production level, 

one remained unchanged 

and the other four declined 

during the review month. 

The Manufacturing PMI 

stood at 53.6 index points in August 

2017, indicating expansion 

in the manufacturing sector for 

the fifth consecutive month. 

A total of 12 out of the 16 

subsectors reported growth 

in the review month. They include 

computer and electronic, 

products; appliances and, 

components; chemical and 

pharmaceutical products; 

textile, apparel, leather and 

footwear; electrical equipment; 

printing and related 

support activities; paper prod- 

Vuma Reputation 

Management has 

signed memorandum 

of understanding 

(MoU) with four 

leading African communications 

agencies, boosting 

the footprint of this South 

African reputation and crisis 

management company 

across the continent. 

Vuma Reputation Management 

is a proudly South 

African company that is 

certified AAA Level 1 contributor 

to broad-based 

black economic empowerment 

(B-BBEE) with a 

proven track record for 

working with multi-national 

companies across 

Africa. 

In line with its strategy 

to grow its presence in Africa, 

the Johannesburgheadquartered 

company 

The commitment 

made by Governor 

of Edo State 

Godwin Obaseki 

to continue to cater to the 

needs of pensioners who 

are the state’s senior citizens 

has again been demonstrated, 

with the payment of 

N212,879,888 million to local 

government pensioners. 

According to Obaseki, 

the state will continue to 

accord its pensioners the 

respect they have earned 

and deserve, in the scheme 

of things in the state. 

He explained that the 

over N212 million was for 

the month of August and 

ucts; non-metallic mineral 

products; food, beverage and 

tobacco products; furniture 

and related products; cement 

and plastics and rubber 

products. 

The remaining four subsectors 

contracted in the order: 

transportation equipment; 

primary metal; petroleum 

and coal products and 

fabricated metal products. 

The composite PMI for the 

non-manufacturing sector 

stood at 54.1 points in August 

2017, indicating growth in 

non-manufacturing PMI for 

the fourth consecutive month. 

Of the 18 non-manufacturing 

subsectors, 15 recorded 

growth. They are utilities; 

public administration; information 

and communication; 

finance and insurance; health 

care and social assistance; 

agriculture; accommodation 

and food services; electricity, 

gas, steam and air conditioning 

supply; transportation and 

warehousing; maintenance/ 

washing vehicles; wholesale 

educational services; 

professional, scientific, and 

technical services; arts, entertainment 

and recreation, 

and water supply, sewage and 

waste management. 

SA’s reputation management agency 

expands with new partnerships 

announced that it had 

signed MoUs with the following 

agencies: Kenya 

- BSD Group (based in Nairobi); 

Ethiopia - Zeleman 

(based in Addis Ababa); 

Ghana - Prosper Agbenyega 

(based in Accra), and 

Zambia - Design Innovation 

(based at Lusaka). 

Vuma Reputation Management, 

which is celebrating 

its 12th birthday 

this month, has built a 

track record as a leading 

reputation and crisis 

management company in 

South Africa, having provided 

world-class advisory 

and consulting services 

to at least 50 JSE-listed 

companies. Vuma has also 

operated in 10 African 

countries, where it has 

provided support to multinational 

companies. 

urged Edo pensioners and 

workers to support the ongoing 

reform embarked 

upon by his administration 

in key areas such as education, 

primary healthcare, 

infrastructure, security, job 

creation and industrialisation 

amongst others. 

The governor tasked 

heads of local government 

areas to creatively harness 

the huge human and natural 

resources that abound in 

all parts of the state for the 

good of all Edo people. 

He assured that the 

newly commissioned BUA 

Cement company and the 

Edo Fertilizer and Chemi- 

C002D5556 

BUSINESS DAY 

BoI agrees to fund Aba shoemakers 

GODFREY OFURUM 

Bank of Industry 

(BoI), Nigeria’s 

industrial 

development 

bank, has 

signed a memorandum 

of understanding (MoU) 

with the Leather Products 

Manufacturers Association 

of Abia State, the umbrella 

body of shoe, belt, bag and 

trunk box manufacturers 

in Aba, to boost local production 

of finished leather 

goods. 

The agreement, which 

was facilitated by Market 

Development in the Niger 

Delta (MADE), a DFID 

sponsored project, would 

enable BoI provide funding 

for the Aba finished 

leather cluster to produce 

seamless products, as well 

as increase the volume of 

production. 

About 5,000 artisans are 

expected to benefit from 

the first roll out of scheme, 

Edo LGA pensioners get over N212m for August 

… as Obaseki says he holds Edo senior citizens in high esteem 

… signs MoU with LEPMAAS 

which is expected in few 

weeks. 

Betsy Obaseki, managing 

director, BOI Investment and 

Trust Company Limited, 

described Aba as a potential 

hub for finished leather 

goods with good prospects 

to put Nigeria on a global 

shoe manufacturing map. 

She expressed joy over 

the collaboration, which 

according to her would 

give the cluster financial 

advisory and funding support 

with the intention to 

grow the sector, improve 

quality and quantity of 

their products. 

“Already, they are doing 

so well, they are producing 

over 20,000 pairs of shoes 

per day and so you can 

imagine the potentials. And 

so when we support them 

more, we expect that they 

will produce a lot more. 

“And already they are 

exporting to West African 

Countries and we expect 

them to be able to do better 

so that they can produce 

high quality products that 

they can even export to 

Europe and the rest of the 

World. 

“Nigerians are going to 

start sourcing their shoes 

and other finished leather 

products from within, 

which will help us to save 

scarce foreign exchange. 

“We believe in this cluster 

as a potential sector 

for growth and development 

of Nigeria. Nigeria 

has a huge population so 

rather than go abroad to 

buy those expensive shoes, 

we support our own, build 

capacity, enable them to 

do these things for us locally, 

by so doing we will 

keep our money within the 

country, rather than using 

it to help others to develop 

their economy.” 

Tunde Oderinde, team 

Top 50 Brands Nigeria® 2017 

Every year, we present 

the 50 top there is no overstatement GERIA, we select, rate and 

time in our nationhood, At TOP 50 BRANDS NIbrands 

for the year. of the important roles top celebrates top corporate 

These are brands brands are playing in our brands that have consistently 

that have been able to 

weather the storms, and deliver 

on their promises. They 

have good understanding 

of the market, and have aggressively 

worked towards 

meeting the expectation of 

the consumers. 

With the volume of competition 

that businesses 

face in most industries, it 

has never been more important 

to stand out and 

develop unique identity and 

value proposition through 

strategic branding. These 

brands are now part of our 

lives; they represent more 

than their products/services 

and have become part of 

the popular culture. They 

provide the ultimate experience, 

drive innovation, 

as well as deliver quality 

products and services. 

At this very important 

national space. They are 

vital elements that sustain 

daily lives, providing the 

much needed jobs, goods 

and services, create wealth 

and also socially responsible, 

with many interventions 

that endeared them 

more to the people. 

One of the driven forces 

that will propel us forward 

to the next level as a nation, 

particularly now, and 

‘enhancing the value of the 

Nigeria brand’ which is the 

cardinal objective of our 

annual Brand Nigeria Leadership 

Forum is the positive 

disposition of the brands 

that power our economy. 

We are using this medium 

to evaluate and celebrate 

them. 

maintained a leadership 

position in their categories, 

living up to their promise, 

and have become a part 

of the popular culture, attracting 

powerful visual 

cue that evokes emotion 

from the people. They have 

transcended their product/ 

services’ categories and 

mean much more to the 

consumers. They have been 

able to master the art of 

brand building to the point 

earning equity. 

According to Taiwo 

Oluboyede, CEO, Top 50 

Brands Nigeria® are 9mobile; 

Access Bank; Airtel 

Nigeria; Axa-Mansard; 

Bua Group; Cadbury Nigeria; 

Channels Television; 

Chi Limited; Coca-Cola 

Bank; 

cal Company Limited have 

started impacting positively 

on the economy of the state 

through the creation of jobs, 

access to affordable fertilizer 

by farmers and the 

emergence of several allied 

businesses. 

Edo State exited the committee 

of civil service states 

last week, when the Vice 

President Yemi Osinbajo 

commissioned the 60,000 

metric tons fertilizer plant 

in Auchi and the 2 million 

metric tons BUA Cement 

plant in Okpella in the state, 

setting the stage for huge 

industrial activities in the 

two key sectors of the state. 

A1 

leader of MADE, observed 

that the partnership between 

BoI and LEPMAAS 

would boost local shoe 

industry and appealed to 

the beneficiaries of the first 

batch to be prompt with 

their repayment to create 

opportunities for others. 

According to Oderinde, 

“this is the beginning of 

good things to come. I 

know that if we can start 

this well, irrespective of 

what we are able to get 

as funding tranche now 

and we can repay, I know 

that BoI will be interested 

in increasing and also increasing 

the number of 

beneficiaries of the subsequent 

batches. 

“So, we are going to be 

our brothers keeper here, 

we are going to be guaranteeing 

ourselves as well 

as ensuring that what is 

giving out is paid back at 

the right time. 

Nigeria; Conoil Plc; Coscharis 

Group; Daar Communications; 

Dana Group; 

Dangote Group; Diamond 

Dufil Prima; 

Exxonmobil; First Bank 

Nigeria; Flourmill Nigeria; 

and Forte Oil. 

O t h e r s a r e 

Frieslandcampina; Globacom; 

Gtbank; Guinness 

Nigeria; Heritage Bank; 

Honeywell Group; Julius 

Berger; Lafarge Africa; MTN 

Nigeria; Multichoice Nigeria; 

Nestle Nigeria. Nigerian 

Breweries; Oando Nigeria; 

Olam Nigeria; P&G; Promasidor; 

Punch Nigeria; 

PZ-Cussons; Samsung W.A; 

Seven Up Bottling Company; 

Shell Petroleum; Shoprite; 

Stanbic IBTC Bank; Total 

Nigeria; Toyota Nigeria; 

UAC Nigeria; UBA; Unilever 

Nigeria; Union Bank, and 

Zenith Bank.


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C002D5556 

NEWS 

ASUU denies receipt of 

invitation for negotiation 

... as uncertainty mounts on Resident Doctors’ negotiation 

KEHINDE AKINTOLA, Abuja 

Leadership of 

Academic Staff 

Union of Universities 

(ASUU) on 

Monday evening 

disclosed that it had not 

received any invitation on 

the proposed negotiation 

with Federal Government 

scheduled to hold after Sallah 

break. 

Biodun Ogunyemi, 

ASUU president, stated this 

via a telephone talk with 

BusinessDay, but expressed 

the readiness of the Union 

towards further engagement 

with the Federal Government’s 

negotiation team. 

When asked whether 

the chief conciliator, Chris 

Ngige, minister of labour 

and employment, has sent 

invitation for negotiation, 

Ogunyemi said: “I’ve not 

Rivers orders release of another N100m to EU for water project 

IGNATIUS CHUKWU & FORTUNE OKORIE 

Governor Nyesom 

Wike of Rivers 

State made last 

minute order for 

release of another N100 million 

to the counterpart fund 

with the European Union 

(EU) on its Niger Delta water 

support scheme. 

Wike made the order in 

the presence of a delegation 

that came to remind him that 

the deadline for the scheme 

involving two local council 

areas was at hand, called the 

RSG/EU NSDP. 

Water supply has been on 

the freeze in the state capital 

and most of the 23 local 

council areas for years and 

the last scheme sponsored 

Glo calls for unity among Nigerians at 2017 Ojude Oba festival 

As the calls for the 

self-determination 

and restructuring 

of the Federation 

take the centre stage 

in recent times, Globacom, 

has called for the unity of 

the Nigerian nation, urging 

all citizens to see the 

strength in the diversity of 

the country. 

Globacom, which made 

the calls at this year’s Ojude 

Oba Festival that held yesterday 

in Ijebu Ode, Ogun State, 

also charged the youths 

especially, to be more interested 

in the histories of 

the different communities 

that make up Nigeria, adding 

that such would give 

them the opportunity of 

having greater understanding 

about the benefits of the 

diverse cultures and traditions, 

thereby deepening the 

unity of the country. 

seen the invitation. But as 

I said, anytime we see the 

invitation, we will go.” 

When contacted on the 

Federal Government’s position, 

Samuel Olowookere, 

deputy director (press) for 

Federal Ministry of Labour 

and Employment, however 

noted that negotiation with 

ASUU would resume after 

Sallah break. 

“In view of the determination 

of the Federal 

Government to end every 

disruption in the academic 

calendar of universities, 

the Minister of Labour and 

Employment, Sen. Chris 

Ngige wishes to inform all 

stakeholders and the general 

public that conciliation 

with the university lecturers 

will resume immediately 

after the Sallah break as 

requested by ASUU,” the 

statement read. 

by the World Bank and the 

African Development Bank 

(AfDB) has been stalled. 

Last week, it was revealed 

that the Rivers State government 

had earlier released the 

first tranche of counterpart 

fund of N100 million to the 

EU partners. The two benefiting 

local government areas 

are Akuku-Toru and Opobo- 

Nkoro (covering Opobo/ 

Nkoro made up of Opobo, 

Nkoro and Kalaibiama; and 

Akuku-Toru made up of 

Abonnema, Kula and Abissa. 

Speaking during a courtesy 

visit by the EU counsellor 

Nigeria, Kurt Cornelis to the 

Government House, Port 

Harcourt, last week, Gov 

Wike noted that the fact that 

the state government paid 

The company described 

the theme of the 2017 celebration, 

Ojude Oba: A Rich 

Heritage For Ijebu Unity, as 

not only apt, but an affirmation 

that traditions, cultures 

and religious beliefs are 

the ingredients which have 

united peoples and races 

throughout the history of 

mankind. 

According to Globacom, 

it also wish to appeal to all 

Nigerians irrespective of 

ethnic and religious persuasions 

to do all within their 

capabilities to strengthen 

that cord of unity that has always 

bound us together. We 

owe the present generation 

and posterity the responsibility 

to join forces with men 

and women of goodwill to 

sustain the renewed drive 

towards the historical and 

cultural renaissance of our 

country. 

While responding to 

BusinessDay’s inquiry on 

the government’s position 

to the outcome of the 

emergency meeting held by 

the National Association of 

Resident Doctors (NARD), 

in which the association 

rejected the provisions in 

the memorandum of settlement 

signed by both parties, 

Olowookere who denied 

knowledge of the situation, 

noted that necessary action 

will be taken by the Ministry 

on resumption from Sallah 

break. 

Members of the National 

Executive Council had at 

the end of the meeting held 

in Abuja which ended at 

3am on Monday, directed 

all its members across the 

country to embark on total 

and indefinite strike until all 

its demands were met by the 

Federal Government. 

the first tranche of 50 percent 

proved its commitment to the 

project. 

He said: “I have given the 

authority that by tomorrow 

the second tranche of N100 

million be paid. Be rest assured 

that whatever needs 

to be done would be done. 

I commend the EU for this 

programme. We will never 

be a state that will be backwards 

in water and sanitation 

projects.” 

The governor urged the 

implementers of the Niger 

Delta Support Programme 

component three to be transparent 

as they award contracts 

for the projects. “Water 

and sanitation remains key 

because they are close to the 

health of our communities. 

The company stressed 

that its continued support 

and sponsorship of 

the Ojude Oba Festival is a 

true reflection of its avowed 

commitment to constantly 

be at the forefront of major 

initiatives aimed at accentuating 

the best of Nigeria’s 

cultures, values, desires and 

traditions. 

It added that it was proud 

of its rising profile as the 

biggest corporate promoter 

of Arts and Culture, including 

celebration of traditions 

and desires of Nigeria, and 

restated its resolve to keep 

supporting Ojude Oba Festival. 

It also added that it 

would continue to provide 

world-class voice and data 

infrastructure that would 

enable all Nigerians to communicate 

seamlessly within 

the nation and across the 

world. 

‘AMCON not in discussion with Ethiopian Airlines’ 

IFEOMA OKEKE 

Asset Management 

Corporation of 

Nigeria (AMCON) 

Monday denied 

the media reports saying 

the organisation was in talks 

with Ethiopian Airlines for 

the carrier to render management 

services to Arik Air. 

“Our attention has been 

drawn to a barrage of media 

reports, which claimed that 

there are discussions going 

on with Ethiopian Airlines 

Buhari assures of commitment to give Nigerians a better life 

ELIZABETH ARCHIBONG 

President Muhammadu 

Buhari on 

Monday assured 

Nigerians of his 

continuous commitment 

to serving the nation, attributing 

his recent convalescence 

to a divine act of 

the Almighty God. 

President Buhari returned 

to the country after 

convalescing in London 

for 104 days. 

Speaking while receiving 

associations of 

farmers, businessmen, 

for the carrier to render management 

services to Arik. 

“Contrary to these reports, 

the Asset Management 

Corporation of Nigeria 

(AMCON) is not aware 

of any current discussion 

or negotiation with the 

management of Ethiopian 

Airlines regarding Arik Air 

Limited (Arik),” AMCON 

disclosed in a statement 

issued by Jude Nwauzor, 

head, corporate communications, 

AMCON. 

According to Nwauzor, 

youths, elders and politicians 

from Katsina at his 

country home, in Daura, 

Katsina State, President 

Buhari said he returned 

to the country with a renewed 

hope and strength 

to pursue policies that will 

improve the livelihood of 

the people, and reposition 

Nigeria for good. 

“Considering the challenges 

we are facing as a 

nation, we have been doing 

our best to provide sustainable 

solutions, and we will 

keep doing our best. 

“I am happy you came 

Arik was placed in receivership 

last February, following 

the airline’s inability 

to repay debts in excess of 

N300 billion to AMCON and 

other creditors in Nigeria 

and around the world. 

“It is on record that the 

Receivership Team has 

within the period stabilised 

the operations of the 

airline, marked by stability 

of schedules; improved On- 

Time-Performance (OTP) 

and revamped customer 

service among others. 

here today, and I am thankful 

for all the prayers. You 

are leaders of various 

groups at the grass root, 

and you are closer to the 

people so you understand 

these problems as well. We 

need your support,’’ a statement 

by Presidential media 

aide, Garba Shehu quoted 

Buhari as saying. 

In his remarks, the leader 

of the group of associations, 

Zannan-Daura, Sani Ahmed 

Daura, said the President’s 

return signalled God’s interest 

in turning around the 

fortunes of the country.


FT 

TIMES 

C002D5556 

BUSINESS DAY 

B1 

Chinese agree $1bn deal for Brazilian port 

operator 

Page B3 

Japan - A scientific ‘moonshot’ 

Page B4 

- 

FINANCIAL 

World Business Newspaper 

US seeks new 

UN sanctions and 

says N Korea is 

‘begging for war’ 

SHAWN DONNAN & DEMETRI SEVASTOPULO 

The US warned North 

Korea was “begging 

for war” yesterday but 

asked the UN to respond 

to Pyongyang’s 

test of its largest nuclear device 

with stronger sanctions in a bid 

to force the regime to end its 

weapons programme through 

diplomatic means. 

Nikki Haley, the US ambassador 

to the UN, said two decades 

of “half measures” had failed, 

arguing that despite UN efforts 

“the North Korea nuclear programme 

is more advanced and 

more dangerous than ever”. She 

said Washington wanted the 

“strongest sanctions” ever imposed 

on the regime to “resolve 

this problem through diplomacy”. 

The move by Donald Trump’s 

administration to press for fresh 

sanctions at the UN comes despite 

increasingly heated warnings 

from the White House that 

it was actively weighing military 

Turkey hits at Merkel 

over EU accession 

STEFAN WAGSTYL & GUY CHAZAN 

Turkey has accused 

Germany of fuelling 

“discrimination and 

racism” after Angela 

Merkel said she wanted to scrap 

Ankara’s long-running EU accession 

talks. 

The German chancellor’s 

statement in a televised election 

debate on Sunday seems 

likely to add urgency to moves 

formally to end Turkey’s EU 

entry bid, which Ms Merkel said 

she would discuss with other 

EU leaders next month. 

The spokesman for Turkish 

president Recep Tayyip Erdogan 

said German mainstream 

politics had bowed to “popularism, 

alienation and hostility” 

after Ms Merkel said it was 

“clear that Turkey should not 

become an EU member”. 

The rising tension comes after 

EU politicians criticised Mr 

Erdogan’s crackdown on political 

opponents, seen in Europe 

options if North Korea threatened 

the US or its treaty allies in the 

region. 

Military tensions escalated 

yesterday after South Korea conducted 

a live-fire exercise simulating 

an attack on North Korea’s 

Punggye-ri nuclear test site, and 

its intelligence agency warned 

that Pyongyang was preparing 

another intercontinental ballistic 

missile launch. 

Despite the sabre-rattling, 

the US move to appeal to the UN 

illustrated the limited options facing 

Mr Trump as he weighs how 

to respond to mounting political 

pressure domestically to take 

more decisive action. 

Besides drawing up military 

plans, the US is working on a 

package of unilateral sanctions. 

The main targets are expected 

to be Chinese banks and other 

companies that do business in, or 

with, North Korea. Almost 90 per 

cent of North Korea’s trade is with 

China, which supplies Pyongyang 

with supplies of key commodities, 

such as oil. 

as anti-democratic. Berlin is 

incensed by the detention of 12 

German citizens on politically 

linked charges. 

Ms Merkel toughened her 

approach to Turkey in the debate 

with Martin Schulz, her 

Social Democratic party rival, 

after he pledged to end entry 

talks if he won the election. Ms 

Merkel promised to talk to EU 

partners about “a joint position 

. . . so that we can end these accession 

talks”. 

Steffen Seibert, Ms Merkel’s 

spokesman, said the chancellor’s 

words spoke for themselves. 

“At the moment, Turkey 

is not at all in a position to join 

the EU.” 

EU leaders would discuss 

relations with Turkey at their 

next European Council meeting 

at the end of October, and 

consider whether to end accession 

talks, said Mr Seibert. He 

cautioned that such a decision 

would require the unanimous 

Continues on page B2 

Nikki Haley, US ambassador to the UN 

Chinese traders fret over economic 

fallout from Pyongyang test 

YUAN YANG 

The trading hub of Hunchun, 

sandwiched between 

China’s borders with North 

Korea and Russia, has long 

reaped the rewards of its location. 

But after feeling the tremors 

from Pyongyang’s sixth nuclear test 

on Sunday, residents are worrying 

about the fallout - both radioactive 

and economic. 

“We felt the earthquake in our 

rooms,” says Liu Xiumei, a native 

of the city that lies just 200km from 

North Korea’s Punggye-ri test site. 

“We had never felt previous nuclear 

tests.” 

China has released a list of areas 

affected by radioactive matter blown 

across the border, but while it has 

declared the situation safe, Ms Liu 

adds that she will wear a face mask 

when outdoors. 

Others are more concerned about 

the impact on their livelihoods. 

“I think the government will step 

up sanctions,” says one seafood and 

herb trader who, like most people 

in the city speaking to the Financial 

Times, declines to be named. “In our 

small city of 300,000 people there 

must be more than 10,000 of us doing 

trade with North Korea. 

“If they really do stop trade coming 

through our port, what will all 

these people do?” 

China last month backed the 

UN’s strongest measures yet against 

its reclusive communist neighbour, 

agreeing to ban imports of North 

Korean coal, iron ore and seafood - a 

move that prompted protests from 

fish traders in Hunchun, who said 

they should not be the ones to suffer. 

Hunchun is heavily reliant on 

trade with its neighbours. According 

to the local government, the city’s 

imports were up 47 per cent last year 

to $845m - more than a third of its 

total economic output. 

Pedestrian traffic on the bridge 

between the city and North Korea, 

designed to carry 600,000 people 

and 600,000 tonnes of freight a year, 

has dramatically decreased since last 

month’s sanctions, locals say. 

“There used to be hundreds of 

people crossing each day but, after 

the sanctions hit, there are only 20 

or 30,” says one taxi driver waiting 

to pick up businesspeople returning 

from North Korea. 

A ramp-up in sanctions could hit 

the city hard, causing more pain in 

China’s north-east, a region suffering 

from an industrial slowdown. 

“All we have in Hunchun is real 

estate and seafood,” says a forestry 

bureau worker, adding that many 

newly built flats in the city are empty. 

In recent weeks the government 

has been careful to suppress expressions 

of discontent caused by 

sanctions. 

Videos and articles of traders’ 

protests that had circulated on Chinese 

social media have been deleted 

by censors. 

“The [articles] have been harmonised,” 

says Dali, a prominent Chinese 

blogger who focuses on the North 

Korean economy. 

Fearful of falling foul of the authorities, 

many traders are no longer 

giving interviews, while foreign journalists 

visiting the region surrounding 

Hunchun have been tailed and 

turned back by police. 

Another local fish trader says 

factories in Hunchun’s economic cooperation 

zone, which are permitted 

to employ North Korean workers, are 

starting to send them back. 

However, while the recent UN 

sanctions impose a cap on the total 

number of North Korean workers 

abroad, no repatriation policy has 

been announced and the claim could 

not be independently verified. Since 

the latest sanctions were imposed, 

many shops in Hunchun city centre’s 

two main seafood streets have 

been shut. 

A third fish trader says the price of 

seafood rose 50-100 per cent after the 

latest sanctions because more had to 

be imported from Russia. She says 

all she has to sell is frozen seafood 

and that this earns little profit, as 

Chinese customers place a premium 

on fresh food. 

At a nearby North Korean seafood 

store most of the tanks stand empty, 

with the owner saying her stock is 

Russian-imported apart from one 

tank with four lonely purple crabs - 

the remainder of her final shipment 

from North Korea.


B2 BUSINESS DAY 

C002D5556 

FT 

Turkey hits at Merkel... 

NATIONAL NEWS 

Spy agency warns of N Korea missile launch 

BRYAN HARRIS 

North Korea may be 

preparing to launch 

another intercontinental 

ballistic missile, 

South Korea’s 

spy agency said yesterday, in a 

move that could further aggravate 

the tense geopolitical stand-off in 

east Asia. 

Continued from page A1 

vote of the 28-member bloc. 

Officials said Sigmar Gabriel, 

foreign minister, an SPD colleague 

of Mr Schulz, backed his 

party leader’s line, signalling 

broad agreement for a tougher 

approach to Turkey across Germany’s 

governing coalition of 

Ms Merkel’s conservatives and 

social democrats. 

Ibrahim Kalin, Mr Erdogan’s 

spokesman, said the tone of the 

TV debate reflected “narrowing 

horizons” in Europe. Writing on 

Twitter, he said it did not matter 

to Turkey which party emerged 

victorious from the German 

elections on September 24 

because “it is now clear which 

mentality will win”. 

Relations between Turkey 

and Germany have been in 

a downward spiral since July 

2016, when a violent coup attempt 

in Turkey by rogue army 

factions left 250 people dead. 

Following the failed putsch, 

Mr Erdogan ordered a vast 

crackdown in which thousands 

of people have been sacked or 

arrested, hundreds of media 

outlets and civil society organisations 

closed and dozens of 

journalists jailed. 

The 12 German citizens arrested 

include Deniz Yücel, a 

journalist who has been held 

since February on charges of 

“spreading terrorist propaganda”. 

Germany has accused Turkey 

of taking political hostages 

in an attempt to force Berlin 

to hand over wanted Turkish 

citizens who sought asylum in 

Germany following the coup 

attempt. 

Brussels has already frozen 

EU entry talks with Ankara 

in response to Mr Erdogan’s 

crackdown, and talks on deepening 

Turkey’s customs union 

with the EU have been suspended. 

But the EU has held back 

from formally ending entry 

negotiations, which would be 

a symbolic move as Turkey has 

pursued membership since 

1987 and negotiated accession 

since 2005. 

The EU is vital to the Turkish 

economy, with bilateral trade 

worth $140bn a year. Turkey, 

a Nato member that shares a 

550-mile border with Syria, 

also co-operates with the EU 

on intelligence, security and 

Syrian refugees. 

The reclusive nation on Sunday 

tested its sixth nuclear device, 

further exacerbating international 

fears about its increasingly 

sophisticated weapons 

programmes. 

The detonation, which triggered 

a 6.3 magnitude earthquake 

near the test site in north-east 

North Korea, prompted a warning 

from the White House that 

Robert Lighthizer, US trade representative. 

ED CROOKS 

Bruce Bodson was in a boat at 

the weekend rescuing people 

stranded by the devastating 

flooding that followed tropical 

storm Harvey. This week, he will start 

to address the longer-term problems 

left in its wake. 

The Houston-based environmental 

lawyer is also the leading scientist for 

an environmental group called Bayou 

City Waterkeeper, which plans to start 

flights over the flood-hit area to survey 

the damage and begin testing the water. 

“Once we start getting these bayous 

and rivers back into their banks 

again, that’s when the real scope of the 

disaster will be seen,” Mr Bodson says. 

“This is a slow-moving disaster that is 

far from over.” 

any threat to the US would be 

met with “massive military retaliation”. 

Following the test, the South 

Korean military yesterday staged a 

live-fire exercise using surface-tosurface 

and air-to-surface missiles 

to simulate an attack on the North’s 

Punggye-ri nuclear test site. 

The National Intelligence Service 

later told a parliamentary 

Risk of industrial pollution 

complicates Harvey clean-up 

The interrogations came 

a day after police carried 

out a series of high-profile 

arrests related to the 

case, including David Sharan, who 

served as chief of staff for Benjamin 

Netanyahu, the prime minister. 

He was detained on suspicion of 

accepting bribes, fraud, breach of 

trust and conspiracy. 

Others arrested on Sunday included 

a former head of the Israeli 

navy and a former naval commando 

chief. 

Mr Netanyahu, who has previously 

defended his government’s 

decision to buy the submarines, has 

The pollution and health hazards 

that have followed the flooding have 

drawn attention to land use on the coast 

of Texas, where millions of people live 

alongside one of the world’s greatest 

concentrations of infrastructure for 

the oil, gas and chemicals industries. 

A legacy of the region’s industrial 

past is 41 “superfund” sites, the country’s 

worst toxic waste dumps. The 

Environmental Protection Agency 

said at the weekend that 13 of the sites 

had been flooded or possibly suffered 

damage. As of Saturday, only two had 

been inspected. 

“This part of the country has been 

a sacrifice zone for the nation,” says 

Bryan Parras, a Houston resident who 

works for the Sierra Club, an environmental 

group. “We provide a lot of the 

country’s energy resources, and that 

committee: “There is a possibility 

that the North could make additional 

provocations by firing an 

ICBM towards the North Pacific.” 

If conducted, such a test would 

further rile Donald Trump, US 

president, and underline Pyongyang’s 

steadfast refusal to bow to 

international pressure. Mr Trump 

has vowed that “all options are 

on the table” when it comes to 

has come at a cost to us here.” 

The energy industry has also 

brought wealth and opportunity to the 

region. The population of the Houston 

metropolitan area has risen by almost 

60 per cent in the past 20 years to 

about 6.9m. Wages are above average 

for the US. But the rapid growth in a 

low-lying flood-prone area has put 

more people in harm’s way. 

The flood water had receded from 

most of Houston by the weekend, and 

the region’s oil and gas industry was 

getting back to work. 

At the height of the storm, 11 

refineries with a combined capacity 

of about 3m barrels a day were shut 

down, and a further seven were operating 

at reduced rates, restricting fuel 

supplies and causing US retail petrol 

prices to hit a two-year high. 

Ex-minister quizzed about Israeli deal for submarines 

ILAN BEN ZION 

not been implicated in the case. But 

the widening investigation includes 

many of his close associates, including 

his personal lawyer, David 

Shimron, who is the prime minister’s 

cousin, and a former member 

of the national security council. 

It adds to the sense of scandal 

surrounding Netanyahu’s administration 

as police conduct a separate 

investigation into allegations that 

he and his family received gifts 

worth tens of thousands of dollars 

from wealthy benefactors. In a third 

case, police are investigating allegations 

that the prime minister sought 

to strike a deal with a newspaper 

to soften coverage of him ahead of 

2015 elections. Mr Netanyahu has 

denied any wrongdoing in both 

cases. 

The scandal surrounding Israel’s 

$2bn deal to buy three submarines 

and coastal patrol craft from ThyssenKrupp 

erupted last year after it 

emerged that Shimron also acted 

for Miki Ganor, the local representative 

for the German marine 

systems company. 

Shimron was placed under 

house arrest but later released. He 

has denied any wrongdoing. 

Ganor allegedly bribed senior 

Israeli officials to get the submarine 

deal inked. He signed an agreement 

last month to turn state’s witness, 

according to reports in Israeli 

media. 

disarming North Korea, although 

experts believe North Korea is calling 

his bluff. 

In July, Pyongyang tested two 

intercontinental ballistic missiles 

that could theoretically reach the 

US mainland. The tests were followed 

by intelligence reports suggesting 

the regime of Kim Jong Un 

was capable of mounting nuclear 

weapons on to the missiles. 

WTO overturns 

Boeing state aid 

ruling in victory for US 

PEGGY HOLLINGER & JIM BRUNSDEN 

The US has scored a victory 

over the EU in a long-running 

tit-for-tat trade dispute, 

after a World Trade 

Organisation appeals body overturned 

a ruling that Boeing had 

received “prohibited” state aid for 

its newest long-haul jet. 

The decision marks the end of 

just one chapter in what is among 

the most contentious battles in the 

global trade system over billions in 

illegal state aid to Boeing and its 

European rival, Airbus. 

The EU and the US continue 

to accuse each other of wrongdoing 

over subsidies, loans and tax 

breaks given to the aircraft makers 

in a spat that has already lasted 13 

years. Another ruling is expected 

later this year on whether the US 

had complied with an order to halt 

illegal aid, while a second on the 

EU’s compliance is due next year. 

The dispute reached a head in 

2010 and 2011 when the WTO ruled 

that both Boeing, which won government 

money through contracts 

for defence and space business 

as well as tax breaks, and Airbus, 

which received aid to launch many 

aircraft repayable on delivery, had 

collected billions in unlawful assistance. 

The latest ruling concerns a case 

brought by the EU in 2014 which 

challenged tax breaks granted by 

the state of Washington to Boeing 

in return for the aircraft maker’s 

promise to assemble the 777X in 

the state. 

The EU had claimed the agreement 

violated global trade rules by 

in effect making the tax breaks contingent 

on using domestic rather 

imported goods. In November the 

WTO had ruled this amounted to 

a “prohibited” subsidy, the most 

severe category of illegal aid. 

However, the WTO’s appeal 

judges yesterday reversed that 

finding, which had also imposed a 

three-month deadline to withdraw 

the tax breaks. US trade officials 

hailed the ruling as a significant 

victory. 

“European governments have 

provided billions of dollars in illegal 

subsidies to Airbus for years, yet 

they have tried and failed to create 

a false equivalence with the US and 

Boeing,” said Robert Lighthizer, 

US trade representative. “The EU 

cannot justify their own illegal subsidies 

by hiding behind groundless 

claims against the US.” 

Washington claims Airbus has 

benefited from $22bn in illegal aid.


FINANCIAL TIMES 

COMPANIES & MARKETS 

@ FINANCIAL TIMES LIMITED 2015 

Chinese agree $1bn 

deal for Brazilian 

port operator 

DON WEINLAND 

China is moving to 

deepen its overseas 

port holdings with the 

purchase of the Brazilian 

port operator TCP 

Participações for nearly $1bn, the 

latest inroad into South America 

for a Chinese state-backed group. 

China Merchants Port Holdings 

said yesterday that it had agreed 

to buy 90 per cent stake of TCP 

Participações for $924m. It will give 

the company its first port operating 

capabilities in Brazil. 

The company will buy the 

shares from investment funds 

including Fundo de Investimento 

em Participações, Soifer, Pattac and 

Tuc Par. The remaining 10 per cent 

of TCP will be held by Soifer, Pattac 

and Tuc Par. 

Earlier this year, China Merchants 

Port, which is part of a state 

conglomerate with holdings in 

banking and shipping, said it would 

invest more than $1bn to develop 

and operate Hambantota Port in Sri 

Lanka. That deal was part of China’s 

drive to invest hundreds of billions 

of dollars in a series of ports, roads 

and other infrastructure spanning 

Novartis has appointed 

Vasant Narasimhan, 

its 41-year-old head 

of drug development, 

to succeed Joe Jimenez as chief 

executive early next year. 

Jimenez, 57, who is quitting 

after eight years at the helm, 

restructured and streamlined 

the Swiss pharmaceuticals group 

following its global expansion 

through mergers and acquisitions 

under his predecessor, 

Daniel Vasella. 

Novartis has had a difficult 

two years with sales falling as 

patents expired, including on its 

best-selling Gleevec cancer drug. 

Initial sales of a new heart drug 

have been disappointing, and 

uncertainty remains over the 

future of its underperforming Alcon 

eyecare business, acquired 

from Nestlé for $50bn in 2010. 

Mr Jimenez, one of pharma’s 

longest-serving bosses, has predicted 

a return to sales growth 

next year, citing a development 

pipeline of 12 possible “blockbuster” 

products, with annual 

revenues of $1bn or more, to be 

rolled out over the next three 

years. 

In its latest medical break- 

across Eurasia and into South 

America. 

The initiative is often referred 

to as China’s New Silk Road and 

is one of President Xi Jinping’s top 

global efforts. 

In the year to June, Chinese 

groups announced plans to buy or 

invest in nine overseas ports in projects 

valued at $20.1bn, according to 

a study by Grisons Peak, a Londonbased 

investment bank. That was a 

sharp rise from the $9.97bn in Chinese 

overseas port projects in the 

same period a year earlier, according 

to Financial Times calculations. 

As ports around the world attract 

Chinese investment, so too have 

global shipping companies. In July, 

Cosco agreed to buy Hong Kong’s 

Orient Overseas Container Line in 

a $6.3bn deal, which would make 

state-owned Cosco the world’s 

third-biggest container shipping 

group. 

• Chinese purchases of overseas 

ports top $20bn in past year • China 

encircles the world with One Belt, 

One Road strategy 

Chinese regulators have tightened 

controls this year on overseas 

investment by private companies, 

but acquisitions by state groups 

have been easier to execute. 

Novartis chief Jimenez 

to step down 

RALPH ATKINS & SARAH NEVILLE 

through, Novartis last week won 

US approval to use a chimeric 

antigen receptor therapy, known 

as Car-T, for children and young 

adults with a type of leukaemia. 

Mr Jimenez said it was “the 

right moment to hand the leadership 

reins of the company to 

Vas”, adding that a robust product 

pipeline and greater strategic focus 

had “put Novartis on a strong 

path for the future”. 

Under Mr Jimenez, Novartis 

has been cautious about mergers 

and acquisitions. 

Among the strategic challenges 

left in Dr Narasimhan’s 

in-tray is likely to be the future 

of Novartis’s $14bn stake in Swiss 

rival Roche, which was built up 

by Vasella in the expectation of 

the two group’s merging to create 

a Swiss drugs champion. 

Jimenez said that Novartis still 

planned to provide an update 

before the end of 2017 on options 

for Alcon, which could include 

a spin-off and separate market 

listing. 

Dan Mahony, a life sciences 

investor from Polar Capital, an 

investment management company, 

said that the change of 

chief executive might suggest 

Novartis had now decided what 

to do with Alcon. 

US benchmark petrol 

prices slid more than 

4 per cent yesterday 

as refineries began to 

gradually restart operations after 

tropical storm Harvey struck the 

heart of the country’s energy 

sector. 

Torrential rainfall and flooding 

along the US Gulf Coast hurt the 

operations of almost one-third 

of US oil refineries and curtailed 

flows along major fuel pipelines 

last week, driving up petrol prices 

to two-year highs. 

As several refiners - alongside 

terminals, drilling platforms and 

other facilities - sought to resume 

operations, Nymex RBOB futures 

contracts for October fell 4.2 per 

cent to $1.67 a gallon after reaching 

$2.17 a gallon last week. 

ExxonMobil said on Saturday 

it was restarting its Baytown, 

Texas, refinery while Phillips 66 is 

preparing to resume operations at 

its Sweeny refinery, also in Texas. 

Norway oil fund plans to alter bond holdings 

The world’s largest sovereign 

wealth fund has 

unveiled radical proposals 

to transform its bond 

investment by excluding corporate 

debt and fixed income in currencies 

other than dollars, euros 

and pounds. 

Norway’s $990bn oil fund proposed 

a number of big changes to 

its benchmark index for bonds in 

a letter published yesterday to the 

country’s finance ministry, which 

takes the main decisions on asset 

allocation. 

The oil fund recommends that 

only government bonds in dollars, 

euros or pounds should comprise 

its benchmark - an index against 

which its performance is measured 

- while the debt should 

not have a maturity of more than 

“about 10 years”. 

C002D5556 

Valero also said it was increasing 

crude processing at several sites. 

“This process may take several 

days or weeks to start producing 

product, depending [on] whether 

any damage is found during restart,” 

the US energy department 

said in its latest infrastructure 

security and energy restoration 

update. 

Colonial said it expected to 

reopen a Texas section of its fuel 

pipeline network, the country’s 

biggest, for distillates yesterday, 

with preparations under way to 

start moving petrol by today. 

“Gasoline prices are . . . pulling 

back, yet past lessons have shown 

that the aftermath from such 

disruptions will linger for weeks, 

if not months,” said Stephen Brennock 

at London oil broker PVM. 

The US government authorised 

the release of 4.5m barrels 

of crude from the strategic 

petroleum reserve, kept in underground 

caverns on the Gulf 

Coast, to help working refineries 

meet any potential fuel supply 

That would omit vast swaths of 

fixed-income assets including all 

corporate debt, bonds denominated 

in yen or emerging market 

currencies, as well as long-dated 

issues such as 100-year instruments. 

The proposal would not exclude 

the oil fund from owning 

such investments but over time its 

portfolio has tended to align itself 

to its benchmark so this could 

lead to significant shifts in bond 

investments. 

The move is likely to be closely 

followed as the fund is one of the 

biggest investors in the world, 

with a bonds portfolio of about 

$320bn. 

Norway’s sovereign fund reveals 

interventionist streak • 

Norway opposition leader slams 

government profligacy 

As of June 30, about a quarter 

of its fixed income investments - 

BUSINESS DAY 

US refineries restart and prices retreat 

ANJLI RAVAL 

Joe Jimenez, chief executive, Novartis 

RICHARD MILNE 

B3 

disruptions. 

US motorists faced higher 

prices at the pump ahead of the 

US Labor Day public holiday yesterday. 

Patrick DeHaan at retail 

fuel data company GasBuddy said 

all 50 states saw average petrol 

prices rise in the past week, with 

the national average up 27 cents 

a gallon to $2.64 a gallon. 

But any respite may prove 

shortlived as attention has now 

shifted to Hurricane Irma, which 

is moving towards the Caribbean 

and south Florida. 

As crude demand from refineries 

weakened, the international 

Brent oil benchmark and US 

marker West Texas Intermediate 

dipped last week. Yesterday, 

Brent ticked lower by 7 cents to 

$52.68 a barrel. WTI edged higher 

by 26 cents to $47.54 a barrel. 

Tankers carrying petrol from 

Europe and Asia were diverted 

to refineries in Mexico and other 

countries in Latin America that 

are dependent on US refined 

products. 

about $80bn - was in corporate 

bonds. Debt in emerging market 

currencies represented about 

$40bn of its portfolio while bonds 

in yen accounted for about $20bn. 

The oil fund’s proposals come 

in the aftermath of a decision by 

Norway to increase the risk the investor 

takes by boosting the share 

of equities in the benchmark 

portfolio from 60 per cent to 70 

per cent. The fund is only allowed 

to deviate from its benchmark - 

the so-called tracking error - by a 

relatively small margin compared 

with other investors. 

The recommendations are 

based on its view that bonds are in 

its portfolio to lower the risk in the 

fund and limit the fluctuations 

in its return. It also follows fund 

analysis that suggests the benefits 

of diversification across currencies 

and countries have been 

overstated for bond investors.

C002D5556 

B4 BUSINESS DAY 


FT 

ANALYSIS 

Japan - A scientific ‘moonshot’ 

LEO LEWIS & CLIVE COOKSON 

The Abe administration is 

determined to exploit its 

lead in stem-cell research 

to build a powerful domestic 

industry. But some 

of those involved are being tripped 

up by regulation, sparking fears that 

Japan could yet lose out to a rival. 

In mid-2008, when every headline 

was screaming market meltdown and 

the end of financial life as the world 

knew it, Hiromitsu Nakauchi spotted 

an old friend at a school reunion. 

Dr Nakauchi, professor of stem 

cell therapy at the Tokyo University 

Institute of Medical Science, had not 

seen much of Genjiro Miwa since the 

two left Azabu High decades earlier. 

But he knew his old friend’s career 

had something to do with investment. 

“Look at what is happening! 

You finance people have done so 

many terrible things,” the regenerative 

medicine pioneer told him. “It’s time 

you finally did something to make the 

world better.” 

Almost a decade later, the company 

that the two men agreed to set 

up just a few weeks after that conversation 

is claiming a breakthrough 

that could transform the lives of millions 

across the world who have no 

access to reliable supplies of blood 

platelets - an essential treatment for 

some cancer patients and accident 

victims. It could also rescue Japan 

from a health crisis as it runs out of 

younger blood donors. 

Megakaryon, the company that 

they formally founded in 2011, sits 

at the heart of a spiralling Japanese 

obsession with stem-cell based regenerative 

medicine. Almost 12 per 

cent, and rising, of the state’s ¥126bn 

($1.15bn) discretionary medical research 

budget is now channelled into 

the area amid fears that the country 

could lose its leading edge to the US 

or another rival. 

There is particular excitement 

about induced pluripotent stem 

cells, or iPS cells, which are created 

by removing mature cells from an individual 

- typically from the skin - and 

biochemically reprogramming them 

back to an embryo-like state. They can 

then be transformed into any type of 

cell needed to treat diseases. Early 

clinical applications range from making 

neurons to replace failing brain 

cells in Parkinson’s disease patients, 

to retinal cells to rescue the sight of 

people going blind. 

The invention of iPS cells in Japan 

10 years ago caused a scientific sensation, 

because it offered several advantages 

over the embryonic stem cells 

then being developed for regenerative 

medicine. For instance, they do not 

require the creation and destruction 

of human embryos, which some find 

ethically troublesome, and iPS cells 

made from a patient’s own cells are 

a perfect genetic match to his or her 

immune system, ensuring a higher 

success rate. 

Last month, Megakaryon provided 

details of what it says is the world’s 

first process for mass-producing 

clotting platelets from iPS cells - essentially 

a blueprint for artificial blood 

factories. Clinical trials are due to 

begin in Japan and the US next year, 

in Europe the year after, and if all goes 

well the products may be routinely 

flowing in patients’ arteries by 2020. 

Shinzo Abe 

The Kyoto-based company has not 

blazed this trail alone. In a country 

that is often described as difficult for 

entrepreneurs, dozens of iPS-related 

start-ups have exploded from the 

Kyoto hub, stimulated partly by state 

money. “There is a belief that stretches 

from basic researchers to government 

ministries that Japan is leading 

the world in creating a new industry 

around iPS,” says Mr Miwa. 

Backing the right horse 

Megakaryon is technically a private 

company. But one of its largest 

investors is the Innovation Network 

Corporation of Japan, a state-backed 

promoter of industries that the powerful 

trade ministry (METI) regards 

as important - and so the sense of 

national mission is everywhere. One 

bureaucrat involved in funding iPS 

projects describes Japan’s love affair 

with the field as the country’s own 

“Apollo moonshot”. 

For all that iPS has re-ignited 

Japan’s fervour for cutting-edge scientific 

adventure and global competition, 

many scientists fear it could still 

become a victim of familiar failings: 

burdensome regulation, excessive 

government interference and a lack 

of nimble thinking from big business. 

Looming over that are the broader 

risks that accompany any pioneering 

scientific endeavour: expensive culde-sacs, 

ferocious global competition, 

the threat of “leapfrogging” by a rival 

and, more fundamentally, whether 

you are backing the right horse. 

Nakauchi’s original plea to his old 

school friend, recalls Mr Miwa, was 

borne out of a fear that if he did not 

secure investment and create a business, 

Japan would fall behind foreign 

rivals in iPS despite discovering the 

technology. 

By 2013, when Dr Nakauchi 

opened a laboratory in Stanford to 

conduct experiments not possible 

under domestic law, Japanese media 

turned on their hero and accused 

him of “making off” with the nation’s 

iPS treasure. Four years later, despite 

repeated claims that regulatory loosening 

was coming, Dr Nakauchi conducts 

his interview with the Financial 

Times from a lab in Stanford as new 

avenues of regenerative medicine and 

experiments on larger animals are still 

not permitted in Japan. 

Restoring its edge 

What started in 2007 as Japan’s 

cautious excitement over the human 

iPS cells as both a “made in Japan” 

source of new therapies and a powerful 

accelerant for drug development 

has been transformed into an article of 

national faith. The discovery, say trade 

ministry officials, was the antidote to 

a feeling that Japan was losing ground 

to China and its broader technological 

edge in areas from science to consumer 

electronics. 

The awarding of the 2012 Nobel 

medicine prize to Shinya Yamanaka, 

who invented iPS cells a few miles 

away from Megakaryon’s labs, has 

redoubled Japan’s determination to 

mark this territory as its own. Prof 

Yamanaka suspects that the “home 

advantage” of inventing iPS does not 

in itself give Japanese researchers an 

edge over US and European rivals, yet 

he is satisfied the country is currently 

in the lead on regenerative medicine 

using iPS cells. 

To bolster that position hefty public 

and corporate research budgets 

have been funnelled towards iPS 

projects. Megakaryon is now working 

with a consortium of 15 Japanese 

industrial groups including Otsuka 

Pharmaceutical and Nissan Chemical 

Industries. A government agency has 

been created, in part to marshal the 

bureaucratic might of the state into 

regenerative medicine. 

The rewards, too, are starting to 

flow as pressure builds from cashconscious 

Japanese universities to 

convert years of generously funded 

science into commercial products. In 

March, Masayo Takahashi, a central 

figure in Japan’s tight group of iPS 

pioneers, successfully transplanted 

iPS-derived retinal cells into the eye 

of a patient suffering from macular 

degeneration. 

“iPS was invented in Japan. The 

government loves them. Researchers 

love them. Everyone wants to 

promote that, and the ministries are 

trying to make regulation easier,” she 

says. “Research budgets in Japan may 

have declined in general over the past 

10 years, but funding for iPS has been 

strong.” 

Two weeks ago, another Kyotobased 

team led by Professor Junya 

Toguchida unveiled a schedule of 

clinical trials of the world’s first drug 

developed through testing on human 

iPS cells to treat a rare bone disease. 

“The key for Japan to keep its leadership 

position in drug discovery is to 

form effective collaboration between 

researchers and pharmaceutical companies,” 

Prof Toguchida says, adding 

that even he could not believe how 

significantly iPS technology was accelerating 

drug discovery processes. 

Last week, another team at Kyoto 

University, led by Jun Takahashi, 

published research in Nature demonstrating 

that neurons derived from 

human iPS cells relieved symptoms 

of Parkinson’s when transplanted 

into monkeys’ brains - a vital step in 

using stem-cell technology to fight 

the disease. 

Japan’s leadership in the field 

depends partly on the government’s 

continued financial support but also 

on its future interaction with other 

fields like robotics in which Japan 

excels. Blood shortage 

Megakaryon was founded to address 

a problem faced by the world 

in general and in particular by Japan, 

which has the world’s fastest-ageing 

population. In 10 years, says Dr Nakauchi, 

the country will run short of 

blood platelets because there will 

be fewer donors and more cancer 

patients. 

Unlike other resources where 

Japan has faced shortages, from oil to 

lithium, platelets cannot be imported 

or stored for long. The iPS cell, he 

says, is a beautiful solution. With the 

clinical challenges now solved, the 

next step is mass production - an engineering 

and industrial issue where 

the government has pulled together a 

consortium of companies. 

Other regenerative medicine developments 

arising from the platelet 

work, such as using iPS cells to generate 

human organ factories, have hit 

against Japanese regulation. 

“We have proof of principle in rats 

and mice but now we need to test it 

in larger animals like pigs. I’ve been 

asking Japan to amend the guidelines 

for six years and the committee at the 

highest level agreed [to do that] three 

years ago but there has still not been 

a change,” says Dr Nakauchi. 

Education ministry officials directly 

involved in promoting the field 

warn that regulation represents one of 

the biggest hurdles to Japan maintaining 

its lead in the field. Yet observers 

overseas see no cause for Japanese 

concern. 

“It is not just about money,” says 

Keith Thompson, chief executive of 

the UK Cell and Gene Therapy Catapult, 

an initiative to promote human 

cell manufacturing. “They have a good 

position in intellectual property, and 

they have shaken up their regulatory 

system to make it easier to get stem 

cell products into the clinic.” 

An expert panel on bioethics has 

been convened under the Cabinet 

Office of Shinzo Abe to examine ways 

of bending guidelines to the benefit of 

Megakaryon and others, but concerns 

have been raised about how committed 

the prime minister is to the 

scheme. “It’s not that Abe is totally 

unaware of the issue but we don’t see 

he has shown high interest,” says one 

closely involved official. 

But Makoto Suematsu, president 

of the Japan Agency for Medical Research 

and Development (AMED), 

disagrees. AMED, created on the 

instructions of Mr Abe in late 2014, 

is tasked with tackling the biggest 

systemic constraint on Japanese 

regenerative medicine: the lack of 

co-operation between the three key 

ministries, education, health and 

trade, involved in research funding. 

By directing its own $500m budget, 

AMED has been asked to tackle the 

dramatic imbalance that means that 

the ministry of education funds 70 per 

cent of research while the health ministry 

funds just 30 per cent, skewing 

the finances towards basic research 

rather than the now more important 

task of producing clinical outcomes. 

Yet seen from outside, Japan has 

an enviable lead in the race to commercialise 

iPS cells. Dusko Ilic, a stem 

cell scientist at King’s College London, 

says the country has no need to worry. 

“There is no doubting Japanese dominance 

of the field. The cutting-edge 

science is there and so is the corporate 

activity. No one else is even close.”

BUSINESS DAY 

Quick-Takes 

a different look at business &market news 

NEWS YOU CAN TRUST I TUESDAY 05 SEPTEMBER 2017 

C002D5556 

The doctors and lecturers strike 

How Nigeria can leverage 

on a viable energy mix policy 

plants offline. 

Experts say a key step 

in improving Nigeria’s 

energy mix is decentralising 

the national grid 

and creating regional 

grid networks. However, 

grid connectivity 

reaches about 40 percent 

of the population 

leaving about 90 million 

people offgrid. 

A good energy mix 

policy will seek to harness 

alternative energy 

sources to generate 

power in a region and 

distribute power to the 

people in the region 

without sending it to 

the grid. Further investments 

in grid expansion 

have not achieved 

desired results as loss 

along transmission 

lines means that power 

transmitted do not get 

There is no better 

reflection of the 

challenging times 

in the country currently 

than the fact 

that both medical doctors and 

university lecturers have decided 

to go on strike at the same 

time. So, Nigerians are currently 

faced with a situation where 

majority of university students 

who depend on publicly funded 

university system are stuck at 

home and majority of Nigerians 

who depend on publicly funded 

medical care are dying because 

the hospitals are closed. 

Ironically, those exempted 

from the consequence of the 

current strike action in public 

universities and public hospitals, 

are senior public officials, 

many of whom have their children 

schooling abroad and who 

also do not hesitate to jet out of 

the country at the slightest sign 

of ‘headache,’ malaria or ear 

pain to take advantage of the 

well run public hospitals abroad 

while Nigerians are left to deal 

with the consequence of a failed 

health system. 

Interestingly, strikes by both 

lecturers and medical doctors 

are not new even if both of them 

going on strike at the same time 

is a new high. Also not strange to 

many Nigerians are the problems 

faced by our universities 

and hospitals. It is a fact that 

lecturers are poorly paid like 

many other public servants will 

also claim. It is also a fact that 

the state of infrastructure in our 

public universities is not worth 

boasting about. It is even more 

factual that the universities are 

poorly funded and that the consequence 

of that poor funding is 

why universities are in the state 

in which they are currently. 

The challenges in the medical 

sector are also well known. 

In a recent survey by NOI polls, 

they discovered eight of 10 doctors 

will want to emigrate outside 

the country if they got the 

opportunity. This is basically because 

they are dissatisfied with 

their poor remuneration and 

the poor facilities that they have 

to work with to provide medical 

care for the ordinary Nigerians. 

There is no arguing the fact that 

our hospitals are also poorly 

funded and have become death 

care centres instead of places of 

healing. 

The biggest challenge we 

face as a people is that despite 

years of knowing the problems 

in both critical sectors of 

the Nigerian economy, we are 

yet to devise permanent solutions. 

The consequence is that 

on an annual basis, we lose 

several lives to ‘strikes’ in both 

sectors. Many students have 

had their lives and ambitions 

permanently altered because 

of these consistent strikes. It 

is clear that the government is 

not in a position to adequately 

fund both the medical sector 

and the public universities. But 

the government also has viable 

options to fund both sectors 

without putting undue strain 

on its finances. 

In the educational sector, an 

increased fee structure, combined 

with increased autonomy 

for the universities is an obvious 

solution even though politically 

unpopular. Increased fees can 

be cushioned with the introduction 

of scholarships and student 

loans as it is done in most developed 

countries. In the medical 

sector, the obvious solution is 

the expansion of health insurance 

coverage to every Nigerian. 

Every Nigerian that has access to 

a phone should have access to 

health insurance. It can be done. 

But public officials, shielded 

from the consequences of poor 

management of these sectors 

can hardly be depended upon 

to provide the innovative solutions 

that can cure the ills of the 

sectors. 

So population growth is running faster than food supply 

Optimists about the 

future of Nigeria 

are quick to cite its 

fast growing population 

which would make it 

the fourth largest market in 

the world by 2050. With a 

population, currently estimated 

at anywhere between 

180 to 200 million, the World 

Bank estimates that the country 

will have a population in 

excess of 400 million by 2050. 

This could present a huge potential 

for companies looking 

for an outlet for their goods 

and services and therefore 

this potential could translate 

into a source of significant 

investment inflows into the 

country. 

However, there is no doubt 

that for this huge population 

to be an asset, they have 

to have access to healthy 

nutrition through adequate 

food supply. This is where the 

news that food production 

is falling short of population 

growth rate is scary. Without 

adequate feeding, Nigeria’s 

huge population will become 

a huge burden. 

The data on major food 

supply gap is scary. Latest data 

from Agriculture Ministry 

show that despite being the 

largest producer of yam with 

40 million metric tons per annum, 

the demand for yams in 

the country is 60 million metric 

tonnes per annum (MT), 

leaving a gap of 20 million MT. 

Even though the country 

produces 42 million MT of 

cassava, demand stands at 

53.8 million MT, leaving a gap 

of 11.8 million MT. National 

supply for Irish potato is put 

at 900,000 MT per annum but 

with a demand of 8million 

MT and a gap of 7.1 million 

MT. Local production of sweet 

potato is estimated at 1.2 

million MT, while demand is 

6million MT, leaving a gap of 

4.8 million MT. 

Nigeria produces 400,000 

MT of wheat annually but with 

a demand of 4 million MT, 

which leaves a gap of 3.6million 

MT. Ginger production 

is 310,000 MT but demand is 

650,000 MT, leaving a gap of 

340,000 MT. Rice production 

has risen to 5.3 million MT 

but demand is still 7.2 million 

MT, leaving a gap of 1.9 

million MT. Maize production 

in the country is put at 

10.5 million MT but demand 

is 15 million MT, leaving a 

gap of 4.5 million MT. Local 

Soybean production is 

750,000 MT but domestic 

demand is 2 million MT, 

meaning there is a gap of 1.3 

million MT. 

The gap exists across 

all major crops as a consequence 

of years of agricultural 

neglect in the country. 

While the gap is a major 

opportunity for Nigeria to 

scale up industrial production, 

it is also a major threat 

to food stability if we do not 

put in place strategies to improve 

supply. The current high 

food inflation rate despite the 

decline in headline inflation 

is an indication of how bad 

things could go if we do not 

take initiatives to urgently 

boost food supply in the face 

of a fast growing population. 

A 

lot has been 

said about the 

need for Nigeria 

to create 

an energy mix policy 

that will harness the 

resources available in 

each region to develop 

energy for the use of 

those living in that area. 

This becomes especially 

important because 

with the current 

supply of 130kWh 

per capita, Nigeria is 

lagging well behind 

other developing nations 

in terms of grid 

based electricity consumption. 

Based on 

the country’s GDP and 

global trends, electricity 

consumption should 

be four to five times 

higher than it is today. 

In practical terms, this 

means that Nigeria produces 

enough power for 

a light bulb per person. 

Ghana, Nigeria’s tiny 

neighbour boasts of 

electricity per capita 

consumption of 360k- 

Wh per capita which is 

2.9 times higher than 

that of Nigeria, and 

South Africa’s 

(4,000kWh per capita) 

is 31 times higher. 

The International 

Energy Agency (IEA) 

estimates that 115 million 

people in Nigeria 

rely on traditional 

biomass and waste as 

their main sources of 

energy. The other 26 per 

cent is made up of oil, 

gas and hydropower. In 

recent years, electricity 

production from hydroelectric 

sources has 

plunged due to water 

shortages and climate 

change. Disruption to 

gas supply to Nigeria’s 

power plants have kept 

about a dozen power 

to those it is meant for. 

Deploring solar power 

in northern Nigeria 

with vast amount of 

sunshine and localising 

hydro power generation 

to irrigate farmlands 

will contribute to reducing 

over 40 percent 

loss of farm produce 

due to lack of storage. 

In the Niger Delta with 

abundant gas resources, 

gas-fired plants will best 

meet the needs of the 

people. 

Nigeria plans to deplore 

30 percent energy 

generation from renewables 

by 2030 which 

can be best served with 

recent policy directives 

for feed-in tariff and net 

metering. Stakeholders 

say what is now required 

is for the country 

to provide incentives for 

importation and manufacture 

of solar PVs and 

granting tax waivers for 

renewables. 

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 05 Sep 2017

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