businessday mark et monitor commodities nse bitcoin everdon bureau de change fMdQ close b$7re6n.9t7 o il bOikgogmeusoti lgainer bSeipglgatest loser 3,390,638.00 +0.94pc buY sell foreign exchange TreasurY bills fgn bonds N85.05 5.00pc N725 -3.33pc $-N 361.00 364.00 Market spot $/n 3M 6M 5 Years 10 Years 20 Years cocoa Powered by £-N 491.00 501.00 I&E FX Window 361.36 1.09 0.25 0.18% -0.09% 0.08% 40,914.94 US $2,763.00 €-N 422.00 432.00 CBN Official Rate 305.75 12.77 12.41 13.43% 13.25% 13.10% news you can trust I **friDay 11 may 2018 I vol. 15, no 52 I N300 @ g What a Buhari victory Leadway, AIICO, NEM, CRe, AXA M, FBNIns, in 2019 could mean for economy CHI well capitalised for big ticket risks … and 3 other things learnt from S&P conference LoLAde AKInMureLe G lobal ratings agency Stan- dard and Poor’s held its annual Nigerian ratings Solvency margins above 100% regulatory benchmark and capital markets conference on Thursday. Here are four things we learnt at the event insurance Plc, AXA Mansard Section 24(2) of the Insurance on admissible assets only, as which held at the Wheatbaker Modestus AnAesoronye Insurance Plc; FBNInsurance Act 2003 stipulates that the sol- inadmissible assets are normally hotel Ikoyi. I nsurance industry regula- and Consolidated Hallmark In- vency margin of an Insurer shall excluded in line with section 24 What Buhari’s probable tor, the National Insurance surance Plc have strong solvency not be “less than 15 per cent of (1-4) and (13) of the insurance second term could mean for Commission (NAICOM) margins well above the regula- the gross premium income less Act 2003. economy has confirmed that lead- tory benchmark of 100 percent. reinsurance premiums paid out According to the Commis- President Muhammadu Bu- ing insurance companies NAICOM is the apex regula- during the year under review or sion, these companies have hari has overwhelmingly disap- in Nigeria including Leadway tor for the Nigerian insurance the minimum paid up capital strong solvency margins (ratios) pointed some Nigerians, with Assurance Company Limited, industry and is governed by the whichever is greater”. and strong capacities that enable his administration growing a AIICO Insurance Plc; NEM In- Insurance Commission Act 1997 In other words, the solvency penchant for dragging on badly- Continues on page 2 surance Plc; Continental Re- and Insurance Act 2003. margin assessments are based needed economic reforms to lift inclusive growth. 2019 elections: Obasanjo’s It took the 74-year old leader S/NO COMPANY GROSS SOLVENCY SOLVENCY MARGIN Continues on page 4 MARGIN % SURPLUS CNM transforms into Inside 1. NEM INSURANCE PLC 302% 202% political party INEC urges potential voters 2. AIICO INSURANCE PLC 195% 95% to go for registration P. 4 3. LEADWAY INSURANCE LTD 645% 545% ... Merges with ADC 4. FBN INSURANCE LTD 486% 386% rAZAQ AyInLA, Abeokuta 5. CONTINENTAL RE 168% 68% The three horse race presi- dential poll for 2019 Nige- The rise and rise of 6. PRESTIGE INSURANCE PLC 377% 277% ria general elections seems OGE MODIE 7 WAPIC INSURANCE PLC 385 285% to have begun with the fusion of Coalition for Nigeria Move- 8. LAW UNION & ROCK INSURANCE PLC 184% 84% ment (CNM) created by former 9. LASACO INSURANCE PLC 156% 56% Continues on page 4 10. AXA MANSARD INSURANCE PLC 126% 26% Watch out for 11. CONSOLIDATED HALLMARK INSURANCE PLC 156% 56% BusinessDay MTN pre- Adidas sales decline as 12. CUSTODIAN & ALLIED INSURANCE LTD 504% 404% IPO Equity Research World Cup date approaches 13. CUSTODIAN & ALLIED ASSURANCE LTD 248% 148% Source: NAICOM Report out Monday The Solvency margin assessments are based on admissible assets only, as inadmissible assets are normally excluded in line with Section 24(1-4) and (13) of the Insurance Act 2003 2 BUSINESS DAY C002D5556 Friday 11 May 2018 NEWS Iran’s deal: MTN may lose $237m INEC urges potential voters to go for registration “The remaining balance due bomb under the decaying and DIpo olaDehInDe to MTN is about €200m,” MTN rotten structure of the current M ... As BusinessDay publishes list of TN Group, South said. agreement,” Trump said from registration exercise venues in Lagos Monday African tele- Irancell is an Iranian tele- the White House. coms giant, says communications company that “The Iran deal is defective United States operates Iran’s second largest at its core. If we do nothing we InIobong Iwok the state to the other as well as President Don- 2G-3G-4G-4.5G mobile network, know exactly what will happen,” Following the widespread those who want to transfer from ald Trump’s decision to pull out and fixed wireless TD-LTE inter- US President said. complaints by many pro- one state to the other. of the nuclear accord with Iran net services. The company’s joint Early this month, Africa’s spective voters in Lagos A breakdown of the registra- may make it difficult to repatri- venture in 2006 with MTN Group biggest mobile phone operator about their inability to track the tion venues released to Business- ate $237 million of its fund in owning 49percent and Iran recorded 9.1 percent increase in venues for the continuous voter Day by the Lagos office of INEC the country, which it has being Electronics Industries owning its revenue for the first quarter of registration to enable them pre- indicates that registration centres operating in since 20o5. 51percentwere launched in Iran. 2018 ended March 31. pare for the forth coming general are rotated within the INEC of- Iran is MTN’s second-largest The company said this deci- The rise in revenue of the election, the Independent Nation- fices in the LGAs and some other market with 43 million custom- sion will “limit the ability of MTN South African telecom firm was al Electoral Commission (INEC) special registration venues mostly ers at the end of 2017; MTN Group to repatriate cash, both due to growth in Nigeria and in the state has urged residents to public primary and secondary Group Ltd. said efforts to repa- dividends and loans, from MTN Ghana, where voice revenue avail themselves of the opportu- schools across the state. triate about 200 million euros Irancell”. expanded. nity of the published venues. Recall that there have been ($237 million) from its Iranian “We will continue to monitor A further breakdown of the The comprehensive list of the so much complaints over the unit will become tougher after the situation including the re- report revealed that MTN Group venues for the rotational sched- seemingly difficulty in obtain- U.S. President Donald Trump sponse of the Iranian authorities voice revenue grew by 5.4 per- ule in Lagos State is available at ing the permanent voter’s card reinstated economic sanctions and the other JCPOA members,” cent. The group’s data revenue INEC’s offices in the state. (PVC) ahead of the 2019 general on the Islamic republic. the company announced. was up by 26.9 percent, as it The list, containing the ven- election. MTN issued a statement say- Trump on Tuesday signed executed on dual-data strategy, ues in the twenty local gov- INEC had last year April com- ing: during 2018 MTN Group a presidential memorandum ensuring appropriate data cover- ernment areas of Lagos State, menced a continuous voter has repatriated approximately withdrawing from the 2015 age across their footprint. obtained by BusinessDay will be registration exercise, citing in- $104 million from MTN Irancell agreement and said he is plan- The MTN group said they published in full in the Monday adequate funds to continue including $72.44 million relating ning to reinstall sanctions on the have made good progress on the edition of the newspaper. with the former format in which to the full 2017 dividend due to Iranian regime. IPO processes in Nigeria, and To be published also is the the commission carried out the MTN as well as a further $32 mil- “It is clear to me that we can- they aim to conclude it during transfer procedure for those who exercise in wards across the lion of historic dividends, it said. not prevent an Iranian nuclear 2018. wish to transfer from one part of country. Leadway, AIICO, NEM... Continued from page 1 them meet claims obligations, as shown in their 2017 financial statements approved by the Com- mission. In a statement issued by the NAICOM, confirming the compa- nies’ solvency margin strengths, the Commission said “while not holding brief for any company, NAICOM, being the apex regula- tory and supervisory body of the insurance sector in Nigeria does hereby affirm that the companies mentioned above are financially strong and solvent. In document accessed by Busi- nessDay from NAICOM, NEM Insurance Plc has gross solvency margin of 302 percent and a sol- vency margin surplus of 202 per- L-R: Abidemi Ademola, legal director and company secretary; Nnaemeka Achebe, chairman, board of directors, and Yaw Nsarkoh, managing cent; AIICO Insurance Plc has director, all of Unilever Nigeria plc, during the 93rd annual general meeting of Unilever Nigeria plc in Lagos, yesterday. gross solvency margin of 195 per- cent and a solvency margin surplus of 95 percent; Leadway Assurance Insurance (general) gross solvency story on May 8 indicating that five margins and this is backed by the economic news. Company Limited has gross sol- margin 504 percent, and solvency top insurance companies have Insurance Act, 2003. We have since Insurance companies in Ni- vency margin of 645 percent and margin surplus 404 percent; while solvency margins that are below retracted our story and expressed geria have proven in recent times a solvency margin surplus of 545 Custodian and Allied Assurance 150%. But we have since found out our apologies to the concerned that they are liquid and have the percent; Continental Reinsurance (life) gross solvency margin is 248 that our mode of calculating the insurance firms and our reading required capacity to meet claims Plc has gross solvency margin of percent, while solvency margin solvency ratios is totally different public in line with our commit- obligation when losses crystalise. 168 percent and a solvency margin surplus is 148 percent. from that used by the insurance ment to remain a credible and As at 2016 financial year, under- surplus of 68 percent; Prestige As- BusinessDay had published a regulator in estimating solvency trusted platform for business and writing companies in Nigeria paid surance Plc gross solvency margin claims totaling N110 billion. of 377 percent and a gross solvency Re: Solvency ratio of 5 insurers below regulatory threshold According to a 2015 Pwc report, surplus of 277 percent; and Wapic the Nigerian insurance industry Insurance Plc gross solvency mar- is ranked 62nd in the world and T gin of 385 percent and a solvency he attention of the established facts. Our solvency position is has a total premium volume of margin surplus of 285 percent. Management, Board AIICO’s financials which also stated on page 114 of our $1.64 billion. Insurance premium Others: Law Union and Rock of Directors, Share- was approved by The National 2017 Annual Report, which penetration rates of 0.7% of GDP, have gross solvency margin of 184 holders and other Stake- Insurance Commission (NAI- has been attached for ease of is ranked 87th in world terms, and percent and a solvency margin holders of AIICO Insurance COM) has since been pub- reference. average premium per capita of plus of 84 percent; Lasaco Assur- Plc has been drawn to a lished in the public domain, AIICOhas brought this issue $9.4, reflecting an industry that is ance gross solvency margin 156 still struggling to gain acceptance. publication by Business Day including The Nigerian Stock to the attention of NAICOM percent, while solvency margin But in order to improve penetra- newspaper, dated May 8, Exchange shows solvency and other vital stakeholders surplus is 56 percent; FBNInsur- tion levels, the National Insurance 2018 with the caption “Sol- margin based on extant laws for necessary action. ance gross solvency margin 486 Commission (NAICOM) launched percent, and solvency margin vency ratio of 5 Insurers fall at 195% contrary to the alleged While we take necessary the Market Development and surplus 386 percent; AXA Mansard below regulatory threshold” 55% in Business Day. corrective measures, we urge Restructuring Initiative (MDRI) 126 percent, and solvency margin where AIICO Insurance was AIICO’s submission of 2017 the general public to kindly in 2009, to among others, enforce plus 26 percent; Consolidated named as having solvency financials to The Nigerian accept our assurances of un- compulsory insurances and eradi- Hallmark gross solvency margin ratio of 55%. Stock Exchange can also be wavering commitment to best cate ‘fake’ that is procured by mo- 156, and solvency margin surplus The report is completely referenced on their portal by practice and service excel- torists from unregistered insurers 56 percent; Custodian & Allied inaccurate as it is not based on following the link below: lence. in the country. 3 WOMEN’S HUB BUSINESS DAY Friday 11 May 2018 World Maternal Practically in Our Environment: Approaches that Work, The Influence of Environment on Mental Health Maternal Mental Health: Social Support and the Role of /New/ Social Media and Improving Conference Early Detection and Access to Maternal Mental Health Services (Research Training, Protocols). “Our goal at PSN Africa is to ensure no woman in Nigeria Looking beyond the stigma suffers alone. Mothers need all the support they can get dur- ing the perinatal period. We are KEMI AJUMOBI there were expert speakers from more than ever committed to T mental and public health sector, educating women across Nigeria he 2nd annual World midwives, mothers and media about Postpartum depression. Maternal Mental personalities who spoke about Onyedikachi Ekwerike, Founder, Health Conference the challenges, approaches, PSN Africa said. in Nigeria brought treatments and intervention “I greatly commend the work together the mater- modules that could work in PSN Africa is doing to raise nal mental health stakeholders managing postpartum depres- awareness and support women in Lagos Nigeria to learn, share sion in Nigeria. struggling with postpartum experiences, network and prof- “I wish every woman was at depression, it is such an impor- fer workable solutions to ma- this event. The Maternal Mental tant work that everyone should ternal mental health problems Health conference was the true support.”  Femi Olugbile, Former in Nigeria. The event also fea- definition of support. I almost Permanent Secretary, Ministry tured women who shared their cried when our warrior mums, of Health, Lagos, stated. personal experiences. Many of the survivors of PPD braved the whom were helped to recover audience to share their story, from postpartum depression by some still surviving. God truly PSN Africa. bless PSN Africa because they The theme for this year was are really touching a lot of lives! will be looking forward to future cause and for inviting me as a “Looking Beyond the Stigma”. Well done for a very well put events!’ Shirley Anne Bello Psy- speaker.” The conference featured inter- together event, thank you for chologist and Director of Iyabeji Another member of the au- national high level professionals; inviting me to speak, definitely Online, said. dience who spoke was Okorie Femi Omololu, Head of Clini- Judith. In her words, “The ma- cal Services and Training, Island ternal mental health conference Maternity Hospital, Lagos, said was informing and inspiring. “Thanks so much for the oppor- The highlight of the event was tunity and the exposure. I learnt when mothers who have gone so much that will definitely through and survived PPD nar- positively impact my practice rated their experience. I shed and training of others. Keep up a few tears. I’ve heard about the good work.” and know what PPD is but I’ve The participants also shared never heard someone who has their experience. One of them gone through it narrate it the was Lolo, O.A.P on WAzobia FM. way these mothers did. They are According to her, “Postpartum indeed warriors.” depression is real; we need to There were 4 Plenary Ses- break the stigma and keep the sions including Maternal Mental conversation going. Thanks to Health /PPD in Nigeria, Manag- PSN Africa for championing this ing Postpartum  Depression Living with HIV/AIDS Against All Odds M y name is Benoite. In little girls (they were 1 and 2 at September 2008, my the time). Someone at AIDS partner had a head- Action told me it would be ok to ache for three days. He’s never wait a bit, and it was like permis- been to the doctor before – he sion to get myself together first. I was raised on an island and needed that and it made all the never had any type of health difference. My man was so sick, care. I knew it was serious we had to change insurance when I offered to take him to companies, change paediatri- the ER and he agreed. Three cians, and I was still at work full days later, he was diagnosed time. I just knew I’d be frozen if with AIDS and a raging case of I found out bad news about my cryptococcal meningitis. His babies. I’d had a negative test CD4 count was just 3. during pregnancy number 1  I went for a rapid test in the and I think I must have told the clinic attached to the hospital midwife she didn’t need to test and never expected the an- me for pregnancy number 2. I swer to be that I was positive. was in a monogamous relation- I fell to the floor, cried like ship! I still think my man got I was in a soap opera, and it from his ex-wife years ago... asked: “who’s going to raise hopefully that’s true. Anyway, my children?” The tester was when I was ready, I got the girls so amazing, so helpful in talk- tested and they are both nega- ing me down from this reac- tive – Thank God! tion, telling me he’d known  I immediately started seeing CD4 crept up to over 850! precautions, but I don’t feel and doing well on meds. My people living with HIV for the docs, and since my CD4 was  I used to feel like if I saw a TAINTED, and that’s huge for relationship with my partner is 25+ years. I latched on to those in the “grey area” they didn’t drop of my blood that it was me. strong, my kids are healthy, and words like a life vest those first need to push me onto meds. disgusting, dangerous to my  I’ve disclosed to more peo- I have a supportive and loving few months. But when I eventually start- kids and tainted. Since being ple than I expected to at first. group of family and friends. I’m  I was paralysed with fear and ed, in Nov 2009, my viral load on meds, I don’t feel that way It’s getting easier as time passes, blessed!  couldn’t bring myself to test my dropped like a bad habit and my anymore. I know I need to take as I can explain that I’m okay -Avert 4 BUSINESS DAY C002D5556 Friday 11 May 2018 NEWS Growth: Nigeria to mobilise more revenues as tax base hits 19m – Adeosun 2019 Elections:... Continued from page 1 ing the ‘Ease of Doing Business’ in That is why we are driving the mo- private sector in Lagos and under- onyinye nwaChukwu Nigeria and improving our capital bilisation of more revenues. taken a tour of LAPO Microfinance President Olusegun Obasanjo in T February this year with a political he Honourable Minister of expenditure which we have done “We have been able to grow the project in Lagos. party - African Democratic Party Finance, Kemi Adeosun, in the last two years. tax payers’ base to 19 million in two The 10 World Bank’s Executive (ADC) on Thursday, May 10. disclosed on Thursday that “Nigerians should trust the years from the 65 million economi- Directors, representing 96 coun- Although, 68 registered political the Federal Government Government to deliver on its prom- cally active people who are not tax tries, are expected to inspect the parties may be in the electoral race would mobilise more revenues ises of improving the economy complaint,” she added. Azura Power Plant in Edo State in for the 2019 Nigeria general elec- to drive its growth plan for the and providing sustainable infra- The Leader of the World Bank the course of their three-day visit tions, the reality on ground may economy. structure development. We are Mission to Nigeria, Patrizio Pa- to Nigeria. limit serious political parties that The Minister made this known very optimistic but we will remain gano, explained that the team was The visit is expected to provide will field presidential candidates in Abuja at a meeting with a World vigilant,” Adeosun said. in the country to acquaint itself a first-hand impression of the chal- in the next year elections to three Bank Mission of 10 Executive Di- The Minister revealed that the with the Government’s growth and lenges that both the Federal and political parties, namely, ruling rectors led by Patrizio Pagano. country’s tax payers’ base had power priorities. State Governments face in imple- All Progressives Congress (APC), She stated that the Government risen from 14 million in 2016 to “We have met with several menting development projects as People’s Democratic Party (PDP) would accelerate Nigeria’s growth 19 million in 2018, grossing addi- Nigerian entrepreneurs and have well as ensuring good governance and new entrant - African Demo- level and also improve the ‘Ease tional five million tax payers into seen how vibrant the private sector overall. cratic Congress (ADC). of Doing Business’ in the country. the system. is. We want to understand how the It will further enhance the goal The emergence of African “The Nigerian Government is “By 2019, the growth will be power sector is evolving in Nigeria,” of the Bank for member-countries Democratic Party (ADC) which working towards accelerating the stronger than the present level in Pagano said. and the effectiveness of the Ex- drew ‘Democratic’ from PDP and country’s growth level. The growth 2018. We are optimistic in sustain- The World Bank officials had ecutive Directors in providing the ‘Congress’ from APC, may be a will be underpinned by stimulat- ing Nigeria’s economic growth. earlier met with the organised necessary support. game changer in the 2019 gen- eral elections going by increasing What a Buhari victory... population of Nigerians trooping into CNM and ADC as well as the political influence of the founder Continued from page 1 - former President Obasanjo, who six months to appoint cabinet still insists that he will not join, but ministers and another 16 months he is canvassing Nigerians to join to keep the naira from weakening CNM and ADC. in vain. It will also be recalled that some His supporters point to achieve- political parties, including the So- ments in taming the Islamist terror- cial Democratic Party (SDP) and ist group, Boko Haram, who have its leaders, mainly the Nigerian killed thousands in the country’s politicians who had defected from northern region. People’s Democratic Party, led by The pace of reforms will not Olu Falae, former Secretary to the change if he successfully grabs a Government of the Federation second term at next year’s polls, had earlier come to Obasanjo for according to Frank Aigbogun, who possible coalition with his Move- shared insights on the political ment. However, he has ignored risks that stare the country in the their request and decided to adopt face ahead of 2019. ADC whose sponsors, apart from “There isn’t anything on the Obasanjo, are still unknown. horizon to suggest that reforms Speaking at a Press Conference will move at a faster pace,” Aigbo- which he entitled “My Treatise for gun said. L-R: Kabiru Isa Dandago, professor of accounting, Bayero University, Kano/former commissioner for finance, Future of Democracy and Develop- Reforms are badly needed par- Kano State; Cyril Ede, president, Chartered Institute of Taxation of Nigeria (CITN); Sani Dambo, executive ment in Nigeria”, former President ticularly in the oil and gas sector, chairman, Kano State Internal Revenue Services, and Temitope Samagbeyi, tax partner, Ernst & Young, Obasanjo said, “Let me start by as well as power sector, where during the 20th annual tax conference, with the theme ‘Institutionalising Tax-Paying Culture in a Developing welcoming and commending investor-friendly policies and mar- Economy’ in Abuja, yesterday. Pic by Olawale Amoo the emergence of a renewed and ket tariffs are non-existent. reinvigorated African Democratic Downstream oil companies the CBN is that there would be no tion, they are careful to point the The naira exchanged for N360 Congress (ADC), as a political party. have had to stick to a retail petrol adjustment anytime soon, to the impact of higher oil prices and the per dollar at the I & E window “Since, the inception of Coali- price pegged at N145 per litre multiple exchange rate practice,” government’s external debt issu- Thursday, as has been the case for tion for Nigeria Movement (CNM), ($0.48), when the rally in oil prices said Gardner Rusike, S & P Global ances of about $6.8 billion in the months now. many of the 68 registered political alone has shut up landing costs. ratings Associate Director. past two years. Per capita GDP is going no- parties had contacted and consult- Consensus estimates point to a “For stability and predictability, Naira faces election pressure where ed with the Movement on coming landing cost per litre of N180. it is important to have a single ex- The general consensus among Despite exiting a five-quarter together and working together. The Buhari has resisted raising fuel change rate,” Rusike said. “Hope- panel guests (which included recession in the second quarter, leadership of the Movement after prices, given that many Nigerians fully, the current practice will be Bismarck Rewane, MD of Finan- GDP growth rate of 0.8 percent detailed examination, wide con- see cheap fuel as one of the few ben- adjusted in the near future.” cial Derivatives Company, Friday for the full year 2017 period hasn’t sultation and bearing in mind the efits they get from the government. There’s the long-standing offi- Idise- the Group head at Guaranty moved the needle for many house- orientation, policies and direction Increasing pump prices could cial CBN rate of N305 per US dollar. Trust bank, Sam Ocheho- Head holds and businesses. of the Movement, have agreed to also dent the central bank’s efforts It was at this rate that the recent of global markets at Stanbic IBTC Average per capita income has adopt ADC as its platform to work to curb inflation which slowed to currency swap deal entered with and Omega Collocot- Director of retreated for four straight years and with others for bringing about de- 13.34 percent for the fourteenth China for some $2.5 billion was S & P global ratings) was that the unemployment has ballooned to a sirable change in the Nigeria polity successive month in March. It implemented. naira may weaken marginally on six-year high of 14 percent. Youth and governance”. remains above the target range of There’s also the interbank rate the back of portfolio flows reversal unemployment is over 40 percent. “In recommending the CNM 6-9 percent. of N330 per dollar, which the com- which is typical of election years. Rather than government re- to join the ADC, let me give you Despite being an OPEC mem- mercial banks carry on their books Rewane sees an 8 percent de- forms, it has been the recovery some points that are of interest. ber and Africa’s biggest oil pro- and is used by the central bank as a cline in exchange rates to N390 per in oil sector that has lifted the From the beginning, CNM is not a ducer, Nigeria imports nearly all its guide to sell dollars to banks during dollar from N360 at the Investors economy out of recession. The political party but a popular grass- fuel because of the decrepit state of weekly auctions. and Exporters window- which same thing that got it into one in roots movement to stimulate the its refineries. Airline operators also enjoy foreign portfolio investors rely on the first place. interest and participation of youth Most oil producing nations, a custom made rate of N360 per to get dollars. The decline in global oil prices and women in particular, in bring- including Saudi Arabia, are all in dollar. “If you discount possible capital was complemented by a poorly- ing about change in democratic the middle of a planned increase Then there is the N360 NAFEX reversals and a possible election timed production shortfall, after a dispensation, governance and de- in petrol prices, amid efforts to cut rate introduced April 2017 to serve spend of 1 percent of the country’s militant group (Niger-Delta Aveng- velopment in Nigeria in such a way down on spending and diversify the dollar needs of investors and $420 billion GDP ($4 billion), the ers), clamouring for a larger share that power addicts will be forced to their revenue source. exporters. The NAFEX rate is a impact of the upcoming election of the oil revenue extracted from yield places for new entrants and CBN in no hurry to divorce short crawl away from the black on reserves could be huge,” Re- their region, damaged oil pipelines. participants in the power equation multiple exchange rates market rate of N361 per dollar. wane said. That created a perfect storm for in the country. After the 2014 crash in oil prices Some may argue that the prac- “Given the current level of re- Nigeria, battling with decade low oil “They will sanitize the system. that triggered acute dollar short- tice has delivered gains in boost- serves ($47 billion), that may not revenues and a need to boost infra- With the ADC, embracing the ages in Africa’s largest oil producer, ing dollar liquidity, stabilising significantly dampen investor structure spend to provide a stimulus policy of 30 percent for youths un- the central bank turned to a system the exchange rate and clearing a confidence,” Rewane added. for the economy stuck in the middle der 40 and 30 percent for women in of multiple exchange rates; each demand backlog that choked the Ochecho of Stanbic IBTC ex- of its worst recession in 25 years. all organs of the party, a significant designed to meet separate dollar economy and put pressure on ex- pects a 10 percent decline as the Oil prices and production have paradigm shift has been brought needs depending on who is buying ternal reserves. As of May 9, exter- rate hikes in the United States forc- since rallied this year on the back about in the power equation. The and why they are buying. nal reserves touched an 18-month es capital reversals from emerging of OPEC’s supply cut and a relative ADC is a reformed and reinvigo- S & P’s short term outlook on high of $47 billion. and frontier markets. calm in the Niger-delta. rated party, it will embrace all the the practice, which some foreign Critics say the system encour- “Some portfolio investors with The oil rally has improved inves- features and policies, which make investors and the International ages round tripping, with benefi- maturities at the end of the year are tor sentiment about Nigeria, but CNM attractive and a source of Monetary Fund (IMF) have since ciaries of subsidised rates taking likely to exit, to leverage the decline worries remain if the Niger-Delta hope and inspiration to millions urged the country to scrap, may advantage of the huge differential in government bond yields which militants will return. at home and abroad.” squash any hopes for a rate con- and can get a little confusing for have collapsed from 22 percent Brent crude prices traded at vergence any time soon. investors. to under 10 percent this year,” $74 per barrel on Thursday, almost •Continues online at www.busi- “The sense we are getting from In explaining the reserve accre- Ochecho said. double the price in 2016. nessdayonline.com 5 Friday 11 May 2018 C002D5556 BUSINESS DAY 6 BUSINESS DAY C002D5556 Friday 11 May 2018 NEWS 50% decline in Lagos land revenue FG, states, others share N1.9trn in three months - NEiTI raises concerns over 2018 projections … expresses concern over projected revenues, budget disparity of most states The report projected bright- HARRISON EDEH, Abuja er prospects for higher revenue F ederation Account disbursements for the rest of … controversial Land Use Charge may impact negatively on estimates Allocation Commit- the year because of the rising tee (FAAC) disbursed oil prices, which currently percent for a state that had mand and prices have come ther impaired by laws such N1.938 trillion in the hovers around $70 per barrel, CHUKA UROKO projected to generate inter- down considerably, the con- as this; this is a very difficult first quarter of 2018. in addition to increase in oil T hough the Lagos nally N60 billion monthly to troversial Land Use Charge and wrong time in terms of The amount shared rep- production. State Land Bu- finance its budget. may have a significant im- the current economic reali- resented an increase of 37.3 The report however called reau grew its rev- The bureau explained, pact negatively on the bu- ties to enact this kind of law.” percent when compared with for caution while celebrating enue from N9.279 however, that the drop in its reau’s revenue projections Erejuwa Gbadebo, CEO, N1.411 trillion shared during the amounts disbursed in the billion in 2015 revenue was a result of the for 2018. International Real Estate the same period in 2017, and first quarter of 2018, because to N20.773 billion in 2016, decision by the state govern- The state government Partners, noted, “The real es- 71.1 percent of the N1.132 tril- of the volatility of the interna- the 2017 revenue dropped ment not to sell land in their in February this year an- tate sector has been in nega- lion shared in the same quarter tional oil market. significantly by 50 percent ongoing schemes until the nounced a new land use law tive growth for, at least, 8 of 2016. “The year started on a bright to N10.579 billion, raising necessary infrastructure had that raised charges on land quarters; what it needs now A breakdown of the FAAC note as all tiers of government concerns of likely impact on been put in place. by over 400 percent, spark- are incentives for growth. allocations shows that the received higher revenues than the state’s projections in the “The revenue of the bu- ing widespread anger and This new law is punitive in Federal Government received corresponding quarters in the N1.046 trillion 2018 budget. reau will definitely improve protest against the law and nature and will only serve N812.8 billion, the 36 states past two years. This was largely got N683.4 billion, while on the account of sustained Recently, the state an- at the kickoff of the new its provisions, which resi- to put more pressure on the N393.3billion went to the 774 increase in domestic oil pro- nounced an Internally- schemes, subsequent trans- dents of the state described residential market, espe- local governments. duction and global oil prices,” Generated Revenue (IGR) actions on state land, pay- as insensitive and punitive. cially on those who having A further breakdown shows the NEITI report noted. of about N103.5 billion for ment of defaulters of capital The state had explained been paying the tax over the that N655.2 billion was dis- On allocations received by the first quarter of 2018, development levy and the that proceed from the new years.” bursed by FAAC in January, each state, the report reveals which, according to Oluse- recent redesigning and up- law would enable it provide The analysts are con- N635.6 billion in February, that Akwa Ibom got the high- gun Banjo, commissioner grading of the land registry,” and complete ongoing in- cerned that the impact of and N647.4 billion in March est amount of N50.44 billion for economic planning and Yetunde Onabule, special frastructure development this law, which seems to this year. while Osun State received the budget, is about 57 percent adviser to the governor on in the state. Real estate pro- have been put on hold, per- The information is con- lowest net share of N4.99 bil- of the projected IGR. urban development, who fessionals and stakeholders haps, for political expedien- tained in the quarterly review lion, a variance of 920 percent Although the N1.046 tril- spoke at the state’s annual argued against the timing cy, may further drag down latest edition of the Nigeria between the highest and the lion revenue is higher than ministerial briefing, said. of the law, saying, “agreed it the state’s revenue and, by Extractive Industries Transpar- lowest. N96.8 billion generated for But analysts argue that is the civil responsibility of extension, incapacitate the ency Initiative (NEITI). The report explained that the same period last year, it aside the slowdown on the everybody to pay tax, but the state in its infrastructure The publication observed these disparities in FAAC dis- represents a shortfall of 43 property market where de- ability to do that may be fur- development. that even with increasing bursements suggest differ- trends in the revenue dis- ences in revenue capacities of bursements to the three tiers different states and the impli- of governments, the disburse- cations for expenditure deci- ment in the first quarter of sions in the affected states. 2018 was still 25.6 percent The publication expressed lower than the N2.6 trillion concerns about the relation- disbursed during the same pe- ship between the projected riod in 2013, before the crash revenues of states and their in global oil prices. proposed budgets. Over 7.7m students, 46,000 schools benefitting from home-grown feeding programme - FG the scheme will directly em- KEHINDE AKINTOLA, Abuja power thousands of Nigerians N o fewer than 7.7 mil- engaged in the scheme in- lion students and cluding poultry associations, 46,000 schools across cooks as the money will be 24 states of the federation are paid directly to their accounts. currently benefitting from Na- According to Uwais, the tional Home Grown Feeding cooks and other suppliers L-R: Sulaiman Baffa, non-executive director, First Registrars; Ibironke Vanghan-Adefope, non-executive director, Programme (NHGFP). are to be working within First Registrars; Bayo Olugbemi,MD/CE, First Registrars; Ahmadu Abubakar, chairman, and Sunday Nwosu, national The programme is also the communities where the coordinator,Independent Shareholders Association, during the official introduction of First Registrars Mobile App in expected to be extended to schools are located, and that Lagos. Pic by Pius Okeosisi additional 12 states in the no money should be removed next few months, according to as supply during the imple- Rotary international president, Ian Riseley, visits Nigeria Nigeria gets first risk management training provider Abimbola Adesanmi, NHGFP mentation of the scheme. the opportunity to increase their national manager, who spoke Uwais expressed the need President of Rotary In- particularly to help maintain CHUKS OLUIGBO risk management knowledge, with BusinessDay at the side- to share experience garnered ternational Founda- the image of Nigeria as a po- The Institute of Risk Man- accessing the FoRM course lo- line of the two-day workshop from various states where the tion, represented by lio free nation. agement (IRM), an in- cally through an approved quality for FCT stakeholders. programme were currently Mary Beth Selene, paid a Received by high-ranking ternational professional training provider,” Sanjay Himats- Adesanmi said total num- being implemented. visit to Nigeria Wednesday, Rotarians and the heavy body for risk management, has ingani, director of training, IRM, ber of 3.2 million eggs, 50 tons She explained that the as a build up to its upcoming presence of the media at the announced the accreditation of said in the statement. of fishes; 255 cattle slaugh- office of the National Home cyeosnThteferedr etahnyr ceinee, -A dwbahey oicckohun tfsaet.raerntceed, Mn4:a4ut5rioi tpnamlaal ,M ASioerhpleaonmretm ,a wte deh xoIan chtetalrys- RLliciimsekni stMeedda nF(aRugnMedmCamIeRne)tn aCtaso lsnth soeuf lRftiiirnsskgt ianntdr“o FpdoruaRccMttiico engs i tvooef steh nsette uprdprierninscetis pr liaesnks tloerceadl r iacned h amdi blleioenns c oofn tsounms eodf Ggrraomwmn Sec hhaodo lt Foe leiadiisneg wPrioth- in celebration of the end served Rotary International Management training provider management and can be applied across the 24 states so far. various State Universal Basic of year for the foundation in many capacities includ- (FoRM) in Nigeria. to anyone from any sector glob- In his remarks, Ismaeel Education Boards to gener- in its entire “rotary clubs ing Fund National Adviser The IRM, which offers a vari- ally; it is also a great introduction Ahmed, senior special ad- ate the population of benefi- throughout the world,” and and International Train- ety of in-house and short courses to the International Certificate in viser to the Vice President on ciaries. would be an avenue to ad- ing Leader, with excitement on over 20 risk-related topics for Enterprise Risk Management,” Social Investment, noted that While declaring the stake- dress paramount issues that etched in her face, said, “I’m all levels of role from FoRM to Himatsingani said. 30,000 chickens were required holders’ workshop open, Mu- would support and further bringing the confidence that Risk in the Boardroom, said in a According to Robert Mbonu, to produce the entire eggs hammad Bello, FCT minister, fpaocliGiloiit vianitn etg ht ehth ece oe urrenapdtruiyct.aattiioonn ooff tpahnoedr t rifenosgut rNo mifg toehrneita hw, swo arelw’drae iy sa f syruoepamr- stcotoa mtbeemp rweenhoter tknhisanitvg iet w wEaintsht ve erRpryMr ipsClee IaRRsi,es dka mCthIeaR nI RiasgM nin,o gbw rp inaa rgltoinncegar ,lt hRpeMa trrCtanIienRri, n wRgMi ttho- neeHdeed e fxopr rtehses beedn oefipctiimariiessm. ethxper essuscecde ssastiessfa cretiocon rthdreodu gihn the foundation in the pre- being declared polio free in Management (ERM) training, Nigeria to develop the capacity of that the home-grown feeding the implementation of other cinct of serving humanity, Nigeria, a so the rest of the consulting and risk management the workforce. programme would provide op- components of Social Invest- the event also would en- world is behind you and we awareness advocacy firm, to de- “Through this training, firms portunities not only for poultry ment programme including: able them plan for the next want to give you our support liver the course in Nigeria. will discover how to embrace op- farmers but also private sec- N-Power-N-Teach, N-Agro, N- coming year to do more for as much as we possibly can, “Our Fundamentals of Risk portunities and uncover threats,” tor, just as he warned against Health, N-Build Government humanity, and the pres- both personally and finan- Management (FoRM) course Mbonu said. “Firms will be en- politicisation of the scheme. Enterprise Empowerment ence of the foundation’s cially” is well respected and attracts lightened on how to adopt ef- Speaking earlier, Mariam Programme (GEEP), State president in Nigeria holds When asked to be specific students from a wide variety of fective risk processes to support Uwais, senior special adviser Operations Coordinating Unit simntr ootnhneeg t afaisgrsyhu trt aeanrgmaceins f;so tar pnsuodpl iapolo sirnot awsibmooupulltdy t hsbeae it dyb p“remin oogfn isneugyp,”.p Soertl esnhee owstruogdralendni.st saW tinieo N naisgr eefr rodiame wl iaiglllhl n tooevwde rht hathvaeet bgthoeeottidre rl ui kdneedlcyei isrmisotapnna-mdcti.”nakgi onfg r tishkrso aunghd tIon vtehsetm Perensti,d deinsct loonse Sdo tchiaatl (USnOitC (USC),T SUta)t,e a mCaosnhg Tortahnesrfse.r 7 Friday 11 May 2018 C002D5556 BUSINESS DAY NEWS Buhari’s medical trip: Adesina comes under fire even as he added, “On Mon- Part of his duties includes the BY OUR REPORTER day and Tuesday, he will visit supervision of key presidency S pecial adviser to the Jigawa State.” staff, controlling access to the President on media But BusinessDay Villa office of the President as well and publicity, Femi sources Thursday revealed as managing communications Adesina, has come that Kyari had invited Adesina and information flow. under attack for say- to his office where he liter- Other major roles include ing that the Presidency cannot ally lambasted him for saying facilitating smooth relation- guarantee President Muham- that “nobody can guarantee ship between the executive madu Buhari’s return within anything.” branch and the National As- the stipulated four days given Our source also talked of sembly, as well as smooth for his medical trip to London. his overbearing attitudes as he relationship between the Min- BusinessDay gathered at was regularly seen breathing istries, Departments and Agen- the Presidential Villa, Thurs- down heavily on other political cies (MDAs) and the National day, that Adesina was verbally appointees. This is not the first Assembly. queried by the Chief of Staff to time Kyari is involved in such The Chief of Staff tradi- the President, Abba Kyari, over verbal attacks with his fellow tionally ensure good relation- the telephone interview he political appointees. ship between the office of the granted to the Channels Tele- On November 1, 2017, at President and external political vision breakfast programme, the swearing in of the new groups to implement the Presi- Sunrise Daily. secretary to the Government dent’s agenda. Adesina, in response to one of the Federation (SGF) and The current Chief of Staff of the questions, said, “When the official launching of the has played very little roles in you talk of guarantee, man 2018 Armed Forces Remem- removing frictions between cannot guarantee. Nobody can brance Day celebrations and political appointees and the guarantee anything.” Emblems, Kyari was involved National Assembly, which is Adesina was asked by the in similar attacks with the Head partly blamed for the lingering Channels crew “if it is guaran- of Service of the Federation, Executive Legislature imbro- teed that Buhari’s stay in Lon- Winifred Oyo-Ita. glio and the long delay in the don will not exceed four days.” BusinessDay also gathered passage of the 2018 budget, Adesina however expressed that the Office of the Chief of despite the massive control of hopes that the President “will Staff to the President was cre- the National Assembly by the be back in the country on ated to assist the President in All Progressives Congress led Saturday by the grace of God,” coordinating his personal staff. government. Retraction BusinessDay report- two tranches for the pur- take money from the CBN ed on Wednesday, pose of processing fresh for this purpose. On this April 4, that Erisco tomatoes into triple con- basis, we express our apolo- Foods Limited centrate. gies to Erisco Foods Limited took N2 billion from the Erisco Foods has come for this report. Central Bank of Nigeria in out to state that it did not 8 BUSINESS DAY C002D5556 Friday 11 May 2018 NEWS Energy, oil/gas, manufacturing account for over Why World Bank should fund investments $6.3bn Q1 2018 investment inflows - NIPC in Lagos public transportation - Ambode came into 2016, signalling that inflow into the country, and to HARRISON EDEH, Abuja this year is going to be far better ensure seamless collaboration key areas to boost the economy the Federal Government, I think JOSHUA BASSEY and make life a lot comfortable that the greater part of what you Energy sector, oil and than the previous years.” and proper tracking.” L for the people. should concentrate on should gas as well as the man- The executive secretary clar- She noted, however, that the agos State governor, Available statistics from the be issues that relate to major sec- ufacturing sector top ified further that investments states however has a certain lev- Akinwunmi Ambode, United Nations confirm that an tors that have to do with Lagos list of ‘announced investments announcements were not the el of autonomy, and could go for has made case why the average of 86 people enter Lagos because anything that is driven by inflows’ monitored from 26 same as investments, saying investments on their own, but World Bank should see every one hour, which is the high- Lagos more or less has an overall states of the federation and the the investments reflected in 112 what is important is that there is reason in funding investments in est in the world, with attendant positive impact on the Nigerian Federal Capital Territory (FCT), projects tracked in 26 states and active collaboration, and ensure efficient public transport system, impact on infrastructure and economy,” he said. in the first quarter of 2018, the the FCT. proper harmonisation. energy and water resources in social amenities, the governor He said already his admin- Nigeria Investment Promotion “This figure gives us a sense, “We currently have a What- Nigeria’s commercial city, which is said, adding that the complexity istration had commenced the Commission (NIPC) said. but I tell you that there are saap group with all the state more compelling than ever before. of the state makes the need for process of implementing major Yewandu Sadiku, executive investments that may not be investments and promotion According to Ambode, with support in funding key projects reforms in the transport sector secretary, NIPC, said although disclosed, since investors are agency in Nigeria, various com- the confirmation by the United unavoidable. with major bus terminals and most of the announced in- not really under obligation to,” missioners of investments and Nations that the population of “The significance of Lagos to lay-bys springing up in key areas vestments were yet to mature, she said. special assistant to the gover- the city is now about 24 million, the overall economy of Nigeria across the state, adding how- the Commission now had a Also, she explained that nors on investments matters, the task of efficient movement of itself is not what we want to toy ever that major support was also seamless collaboration with the highest proportion of such to share information and also people and goods in a seamless with and so when I read in the needed in areas of integrated the states to enable it moni- announcements came from exchange ideas, aimed at better manner is now compelling and re- brief that the delegation would transport system involving road, tor closely investments inflow Nigerians who indicated inter- collaborations,” he said. quires huge resources, which the be coming to Lagos, I thought it rail and water transportation. into the country, as a one-stop est in investing into the country. Speaking further on how government alone cannot fund. was a very good decision that you “With the huge population centre. “We are interested in see- the Federal Government is Ambode, who received the would be able to see some of the of Lagos, we just have some ef- Speaking with some se- ing more Nigerians invest in handling incentives with appro- World Bank team led by Patrizio sectors and some of the impact we fective operation of one mode of lect journalists on Thursday in the country, and we have a priate safeguards, she said, “In Pagano in his office, Wednesday, have made. transportation which is road. So, Abuja, Sadiku said, “In the year Domestic Direct Investment 2017, we completed a reform said though the state govern- “So, if the World Bank were to technically, when you’re having 2016, the total capital inflow was model now in the commission, that started on 2015-2016. The ment in the last three years had generally support the develop- a whole lot of people coming $5.4 billion, in 2017, there was a and we are working with the reform was aimed at bring- invested in provision of infrastruc- ment of the Nigerian economy, into the state and you’re having material increase in the volume National Bureau of Statistics to ing greater transparency on ture across sectors, there was the beyond the fact that you would so much expansion around the of flows, and it is $12.4 billion. track investments inflow into pioneer status incentives,‎ and strong need for collaboration with be having anything to do with west coast, it is important that we The bulk of it is portfolio invest- the country,” she said. guidance to the government the Bretton Wood institution in review the integration of our pub- ment and is still yet to mature.” While speaking on further on the incentives that is being World Bank executives arrive Edo today lic transport management system According to the execu- collaboration with the states given and to ensure its value to in a manner that we can actually tive secretary, “In 2018, actual to track up their investments the overall economy.” Following the sustained and Lagos states as well as the stand to say that we are planning capital flows translated to $6.3 inflows, she said, “The current It is really from 2017 when of Edopr eSrcotoagtrerde,e ssdus i cnthh c aaristt ircheaaflos sr embcetsoe ornsf Fawceicdthoe rrtdahilne C gaa tcpoti ittvhailot Tiseeesr k roeitfeo ptrhiyne, gA b sbatuenpjkas,, acohhuaer lahledan nogdfe tshs. eth kaint dw oe fa urreb hanavisinatgio inn bimnilo ltirhoeen t .h fThiarnste a qilnlu voaefr sttthemre eoflnfo t2w i0ns1 flt8ho awist eminffcoorrreeta scs loeof st hethleye l we NviteIhPl otChf ieinn sv tweastoetmrsk isein ntogt wfionergm hosfa, dothu acrto wvmaerp idoleeuetsep deinn sceuednc thtriav rceeks--. the public sector and the huge shows the interest in the Nige- investment in infrastructure rian economy, especially since that have rekindled economic exit from recession. growth, officials of the World The 11 executive directors – Bank, a major development considered to be an interestingly partner of the state, will arrive large delegation – will assess the Benin City today, to assess the performance of the states on key impact of the bank’s sponsored development indicators, and projects across the state. review activities to determine Edo State has prudently ap- the feasibility of extending more plied its receipts, portfolios as support to some of the pro- well as technical support from grammes funded by the bank the bank, which account in part, in the country. for the erosion control projects, In the World Bank mission road projects, sanitation, water, are the Executive Directors for agricultural and policy reforms Switzerland, France, Italy, Peru, in institutions spread across Germany, South Africa (rep- the state, designed to engender resenting Angola, Nigeria and inclusive growth. South Africa), Burkina Faso Specifically, the Bretton (representing Francophone Woods institution will take sub-Saharan Africa), Zimba- stock of the number of people bwe (representing Anglophone that have been moved out of Sub-Saharan Africa), United poverty, projects’ s impact on Kingdom and Indonesia. the environment, reduction in Experts familiar with the de- child and maternal mortality velopment say that the focus on figures, gender mainstreaming Lagos and Edo states is as a result amongst other considerations, of the relative satisfactory per- underlying the World Bank’s formance seen in the two states partnership with various states after the World Bank’s extension and countries. of funding to strengthen institu- EY L-R Adedapo Adewole, director, advisory services, EY; Bunmi Akinde, senior partner, advisory services, EY; Bolaji Chandrasekaran, regional finance The May visit of 11 World tions, develop infrastructure and director, Olam, and Ashih Bakhshi, deputy market leader, EY, at the consumer prducts and retail event organised by EY Nigeria in Lagos. Pic by Pius Okeosisi Bank executive directors to Edo reduce poverty. Organisation links business growth to stable, quality leadership Celebrities delight, ‘StillBroke’ Clothing, set to launch Wizkid, Tiwa Savage, Broke’ promotes positiv- CEIBS, Nigeria chapter, said school helped to build busi- from CEIBS helps in activating DANIEL OBI Annie Idibia, and ity, instilling a sense of hard the session aimed at enhanc- ness and managerial skills in the salient opportunities that Lilian Esoro have work and responsibility in Ensure business opti- ing the knowledge attained members, essential for the are within the environment, been captured rocking the its wearer. mum productivity and by the alumni of the school advancement of any organisa- to impact positively on an first of its kind collection of He describes the theme growth, the China Eu- on how entrepreneurs can tion, whether small, medium organisation, society and the designer underwear ‘Still of the brand as a tool to rope International Business take advantage of innovative or large-scale enterprises. nation. According to him, the Broke,’ set to launch on the evoke appreciation of ones School (CEIBS) has encour- business trends and how Nwosu affirmed that the combination of Chinese and to demonstrate leadership country is endowed with European style of education May 13. means of living, emphasis- aged entrepreneurs to im- qualities that could be emu- mineral resources and the would be advantageous to The company, in a state- ing on the need to keep bibe the culture of effective lated for growth and business challenge it has, is that of the country and the African ment, describes the cloth- working hard despite re- business management and expansion. poor leadership and lack of continent, since China is one ing line as unique, and that cording success. quality leadership role within He said quality leader- managerial skills, areas where of the largest economies in customers will enjoy the ‘Still Broke’ has in its col- an organisation. ship is very essential for the CEIBS can make constructive the globe. comfort of the fabric that lection; an array of tracksuit This was the outcome of development of any business impact. Also, Temi Abimbola, rivals some of the world’s bottoms, sports bras, briefs, the breakfast session with the or organisation because it is He explained that CEIBS lead advisor to the senior most popular designs. Still among others, which cus- theme “Entrepreneurship and all about influencing people, would help in the area of ef- vice president of the African Broke also promise fans its tomers can choose from. Stable Leadership: Building making equitable decision, fective policy formulation and Development Bank, said an resolve to ensure products Inside sources reveal the Next Generation of Lead- and the direction which the governance since its members entrepreneur should have are very stylish and afford- the launch will have some ership,” held for alumni of the workforce should follow in or- cut across the various sectors integrity and competence to Nigeria chapter of CEIBS in able. of the industry’s biggest der to achieve desired results. of the economy and are dis- discern and solve problems, Lagos, recently. As subtly described by names in attendance; rang- In his remark, Kelechi posed to make meaningful while a good leader should be Speaking at the event, ac- the CEO, Michael Uyi Agho, ing from socialites to per- Nwosu, executive vice presi- contribution for developmen- able to inspire others to attain cording to a statement, Sun- the brand’s name ‘Still sonalities. dent, Hartford Allied Projects, tal purposes. success in business or in their day Agboola, president of an alumnus of CEIBS, said the He said the key learning profession. 9 Friday 11 May 2018 BUSINESS DAY 10 BUSINESS DAY C002D5556 Friday 11 May 2018 COMMENT comment is free Send 800word comments to comment@businessdayonline. Sorting the snakes out brave finally admitting they Can one describe as a drama as the leader of the main not too young to run? I think actually had some phobias, opposition party had issues there might be. First, it appears dense mass of snakes, the slim, beautiful, green, with the arrangements. For a self-evident that interventions short-for-a-snake creature the myriad political brief period, it seemed like the that do not address what must was sorted out. Apparently, violence of the 2012 elections be addressed but instead focus SOJI APAMPA economy actors creating as a tree snake, it had hopped were bound to be repeated. The only on what can be addressed Olusoji Apampa is the CEO of The across from some very gen- blockages to progress in the opposition seemed to have the are doomed to failure. Convention on Business Integrity. erous palm fronds overlap- power to call people out onto The fact that power is cur- Twitter: @sojapa E-mail: aviga@ ping the window while it was development of Nigeria... the streets at the drop of a hat. rently in the hands of heavily cbinigeria.com open and blended in with the In Nigeria’s current political Anyone opposed to the govern- entrenched interests should not very green window blinds ment in power appeared to have be glossed over – there should O I had pulled back to enjoy economy, we would have the ability to join forces with all be a strategy for ‘sorting the n a recent trip to the sunshine before my call others and threaten the stability snakes out.’ Before you throw to have the power of Nairobi, Kenya, I started. What almost killed of the country. The impasse be- your hands up in despair I learnt an impor- me were the what-ifs (since analysis to identify each tween the leader of the opposi- want you to consider that there tant lesson. The I had shared the room from tion and the President appeared might be four sources of power day before my about 2am with the snake) and snake in the morass and the biggest blockage to progress (according to Cambridge Polit- arrival, my host had aired the various scenario constructing then take an informed in the country. It seemed like ical Economist, Michael Mann) room and my flight from Abuja thoughts that kept flashing up Kenya was doomed, but that and perhaps they have not via Addis got me to Nairobi in my mind. I was officially decision as to whether or was until “the handshake.” It monopolised all the sources: about 1am the following day. traumatised and each time not an intervention had a appears the President of Kenya control of vast resources (al- Later that morning, I attended I closed my eyes or blinked, was decisive, did something in liances have always been the to various Skype meetings, all I could see was the snake. chance to succeed the background which resulted way to tip this balance), control kneeling between the bed and Needless to say, the snake in a public handshake between of state policy (here they may the nice bay window behind me dominated my conversations him and the leader of the op- have the edge), control of ide- but with forearms and elbows for the rest of the trip till I imagined upon reflection, that position. ology (this could be anyone’s on the bed. In the middle of began reflecting a little deeper we were only able to confront After that, a lesser opposi- game) and control of the use the call I felt something land on all sorts of symbolisms. I the slim, shortish, agile but light tion figure, feisty and agile, who of force (which can include on my legs and shuffle off at will share one of the allegories weight snake precisely because tried to throw influence around neutralizing their monopoly speed and instinctively I knew that stuck with me out of the despite being terrified, we felt it was summarily sorted out – he by changing the paradigm for whatever the thing was, it was hundreds I must have scanned was one that could be contained. got deported on a technicality their agents – young people). alive! At first, I thought it was over what was just a few days. So, the size, mass, length and (I refuse to comment on this in- Of the four sources, they a mouse, but turning my head Can one describe as a dense agility of the snake mattered. strument) and the country did might at first appear to have in the direction of the eerie mass of snakes, the myriad In Nigeria’s current political not burn! Had he been deported a choke hold on three. Closer feeling I had, I saw it, there, political economy actors cre- economy, we would have to have before “the handshake” it might inspection suggests this can coiled in the corner only about ating blockages to progress in the power of analysis to identify have drawn the main opposi- be whittled down to two. Hard 1.5meters away from where the development of Nigeria? each snake in the morass and tion figure and his supporters work in alliance and coalition I was, with head poised for These would be the “snakes” then take an informed decision into the fray, but the timing was building, setting the ideologi- a strike, the most beautiful, that incite violence, perpetrate as to whether or not an interven- after things had been “sorted cal narrative and neutralizing slim, not-too-long, but still- fraud and corruption, warp tion had a chance to succeed. out.” I admit it is hard to tell at their monopoly over the use of terrifying, green-snake I had systems and procedures for Let me illustrate this with this point “how” things were force might well tilt the balance ever seen! Out of good man- private profit, bribe judges, the tense situation in Kenya sorted out. We see the major of power in favour of those not ners and proper upbringing, sabotage public service deliv- around the 2017 elections. We opposition figure now acting too young to run. Whatever all in auto-pilot, I managed to ery for private gain; they know may recall the Supreme Court of like a de facto Prime Minister emerges would depend on how close the call in less than two what is right, refuse to do it, Kenya took the unprecedented and the longer-term implica- good they are at ‘sorting the seconds and high-tail it out of and also prevent others from step of annulling the elections tions for peace and stability snakes out.’ What do you think? the room. doing it … you know, snakes! based on irregularities it claimed are not so clear at the moment. After a lot of commotion and If we don’t sort the snakes out, were in the process. There was But, is there a lesson in all this Send reactions to: those who made out they were can we make progress? So, I a re-run and around that was for those who believe they are comment@businessdayonline. Nigeria’s external reserve @ $47bn: The more you look; the less you see reserves should impact posi- reserve and how much actually has already collected the naira It is our wish that net ex- tively on the appreciation of belong to the country. equivalent. ternal reserve numbers are local currency, investors’ sen- * According to the National * Remittances of Nigerians reported along with the gross VINCENT NWANI timents, stability and liquidity Bureau of Statistics (NBS) Q4- in diaspora, bank balances figures. There is need to deter- of the exchange rate. How- 2017 report, $4.6 billion was from domiciliary accounts mine the net or unencumbered Dr Nwani is the Director of Re- search and Advocacy at the Lagos ever, the realities on ground imported into the country out of Nigerians, inflows from part of our forex reserve at any Chamber of Commerce & Industry seem not to have reflected the of which 60% ($2.76 billion) grants/donor and NGO sourc- point in time. Also, commit- (LCCI) ideals of an economy experi- was directed to portfolio invest- es are hard to tell due to lack of ments such as forward obliga- Feedback email: Vincent_nwani@ encing exponential growth of ments. The figure has grown to detailed and timely numbers tions and the components of yahoo.com its reserves. well over $3bn at the end Q1- from CBN. Again, this part of the external reserve such as oil To begin with, the CBN cur- 2018. This money is a liability the reserve fund does not be- sale, non-oil export proceeds, rently report external reserves waiting to crystalize and did not long to FG. portfolio investment and FDI A t 47 billion in March as gross figures without clear form part of our wealth. To my conviction, the only proceeds, grants, receipts from 2018, foreign reserve disclosure of the reserve com- * Since February 2017, Ni- part of the current reserves debt liabilities and aggregate recorded significant- ponents or baselines. There is geria has issued about $7.5bn that is devoid of prior commit- balance from individual domi- ly 104 percent growth increasing concern about the worth of Eurobond debt com- ment, interest payment or re- ciliary accounts in the bank from a low of $23 billion in sources, real owners and costs pared to $1.5bn of Eurobonds fundable is the ECA which has should be reported by CBN. October 2016, the highest since of Nigeria’s growing reserves. raised by the country between about $2.5bn. This is the ready This will assist analysts to 2014. This is good news that is Thus, before Nigeria celebrate 2011 to 2015. This amount, for use and available reserve make informed decision and worth the celebration by stake- the wealth that does not be- $7.3bn is added to Nigeria’s value that belongs to the FG. sustain investors’ confidence. holders both at the public and long to her it is important to reserves as part of the Funds This may serve to moderate the the private sector. It is widely shed some light on the sourc- on paper. Again, the FG cannot ceremonies building around Send reactions to: believed that that growing es of the remarkable growth of spend the money because it our rising reserve figures. [email protected]