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Finally, FG begins

implementation

of Orosanye

report

>> Turn to page 6

FOREIGN investors are holding

off on new investments into Ni-

geria until the naira finds some

stability.

A fresh inflow of around

$700 million was expected to

come but that has now been

suspended as investors grow

cold feet and fear losses piling

over the naira volatility.

“Foreign investors that

thought the peak of the ex-

By Lolade Akinmurele

News you can trust

Tuesday 27 February 2024

Vol. 21, No 1,623 N500 www.businessday.ng facebook/businessdayonline @businessdayng @businessDayNG

Maize 585.67 2.45% ACI-Points 472.04 5.71%

Sorghum 555.00 0.00% AEI-Points 688.34 2.98%

Soybean 660.93 0.00%

Turnover-NGN’ mn 112,516,504

-13.10%

Ginger 990.00 0.00% Contracts Traded 213,526

14.24%

Cocoa 7,000.00 0.00%

EURO BOND 10YR

9.93%

Foreign Reserve $33.30bn

Cross Rates GBP-$:1.26 YUAN -175.72

Commodities ($)

Cocoa Gold Crude Oil

$4,736.00 $5,589.00 $81.55

Commodities Cash Settled Price(NGN-1kg) D-o-D (%) Benchmark Value D-o-D %

OPEN CLOSE %CHANGE

NGX ASI 102,088.30

101,995.53 -0.09%

1YR NTB

20.74%

FGN BOND 10YR

16.85%

INVESTMENT ONE

FMDQ Close

Foreign Exchange NTB

Market Spot ($/N) 22-Aug-24

NAFEM 1582.94 0.23

17.79

Exchange-Traded FX 3M 6M

Futures Rates ($/₦) 24-Apr-24 31-Jul-24

1620.58 1679.73

Foreign investors hit brakes

on Nigeria over volatile naira

L-R: Abdulwasiu Omogbolahan Lawal, Oniru of Iruland, Lagos; Babajide Sanwo-Olu, governor of Lagos State; Tayo Amusan, chairman, Persianas

Group; John Enoh, minister of sports development; and Aminu Umar-Sadiq, MD/CEO, Nigeria Sovereign Investment Authority, at the groundbreak-

ing of Africa's rst purpose-built 12,000-seater capacity Arena in Victoria Island, Lagos, on Saturday.

Continues on page 30

BIG STORY

THE prices of drugs jumped

last year in Nigeria but five

of the major manufacturers

saw a decline in their financial

performance on the back of the

worsening shortage of foreign

exchange and rising inflation.

The firms are Fidson Health-

care Plc, May & Baker Plc, Mori-

son Industries Plc, GlaxoSmith-

Kline (GSK) Consumer Nigeria

Plc and Neimeth International

Pharmaceuticals Plc.

BusinessDay analysis of

the latest unaudited financial

statements of the pharmaceu-

tical firms shows that Fidson

Healthcare, May & Baker and

GSK Consumer Nigeria re-

ported a combined after-tax

profit of N4.81 billion in 2023,

down from N6.47 billion in the

previous year.

Neimeth reported an after-

tax loss of N2.58 billion com-

pared to a profit of N19.1 mil-

lion, while Morison Industries

posted a loss of N89.4 million,

down from N107.5 million.

“The pharmaceutical indus-

try is in a very difficult situ-

ation now. Everything in the

industry is imported from raw

materials to the packaging,”

Gabriel Idahosa, president of

Lagos Chamber of Commerce

and Industry, said.

Continues on page 2

Drugmakers

see decline in

fortunes despite

soaring prices

By Bunmi Bailey & Ifeoluwa Adebayo change rate would be N1,550/$

and came in have now picked

mark-to-market losses on the

currency,” a source familiar

with the matter told Business-

Day.

“They are touching their

stop losses and are reversing

their inflows. And we don’t have

the liquidity to support that,”

the source said.

Over a billion dollars of for-

eign inflows greased the foreign

exchange market two weeks

ago after the Central Bank of

Nigeria (CBN) began to push

through long-awaited pending

reforms in the market.

The reforms, which included

more transparent pricing of the

dollar at the Nigerian Autono-

mous Foreign Exchange Market

(NAFEM) and higher interest

rates on treasury bills, attracted

dollar inflows and helped stabi-

lise the naira after a period of

turbulence.

But it wouldn’t last as the

currency resumed its free-fall

last week, closing at a new low

of N1,665.50 per US dollar at the

official market.

It however started to pare

some of its losses in the parallel

market towards the end of the

week, appreciating to close on

Friday at N1800/$, after weaken-

ing to as low as N1900/$.

“They set up stop losses at $/

N1,700-1,800. There was no hedge

FG’s health backward integration

plan faces old problems

What Nigeria can learn from emerging

markets’ pharma industries

THE Federal government’s

proposed backward integra-

tion policy to boost local manu-

facturing in the health sector

has elicited concerns and

cautious optimism from stake-

holders and experts.

Some said the plan may not

achieve its ultimate purpose

of taming the surging cost of

medical products manufac-

tured in the country if the

government does not proffer

sustainable solutions to the pe-

rennial problems affecting the

entire manufacturing sector.

In January, the govern-

ment announced that it had

designed a backward integra-

WHILE Nigeria grapples with

challenges in its pharmaceuti-

cal industry, several emerging

markets offer valuable lessons

on how government policies can

spur growth and innovation.

From India’s production

incentives to Brazil’s focus on

biosimilars, emerging markets

like Vietnam and Thailand

showcase diverse approaches

to fostering a thriving phar-

maceutical industry, offering

valuable lessons for Nigeria.

India’s fast-growing $42 bil-

lion drug sector has for instance

been enabled by a production-

linked incentive (PLI) scheme

for bulk drugs and active phar-

maceutical ingredients.

The industry has also been

backed by tax breaks for re-

search and development, result-

ing in increased domestic pro-

duction and growing exports.

However, pressure has

been mounting on the industry

to improve quality control and

regulatory efficiency.

India reigns as a global pow-

erhouse in affordable health-

care, supplying over half the

tion programme which incor-

porates policies that affect

medical devices and the entire

healthcare industry. Reports

estimate that 70 percent to 99

percent of medical devices

and equipment needed in the

country are imported.

Doris Uzoka-Anite, min-

ister of industry, trade, and

investment, who announced

this during a meeting with

manufacturers of needles and

syringes, said the policy would

be a game changer for the

healthcare industry.

“It will incorporate policies

and incentives to support local

manufacturers in the sector

and boost local manufactur-

ing of medical devices and the

entire healthcare industry,”

world’s vaccines and 40 percent

of US generics.

From a quarter of UK medi-

cines to 45 percent of Africa’s,

its drugs reach millions glob-

ally, with world-class factories

ensuring quality and safety.

About 3,000 Indian compa-

nies are running 10,500 generic

manufacturing plants.

GV Prasad, managing direc-

tor of Dr. Reddy’s Laboratories,

one of India’s leading drug

companies, said in an interview

that the industry has become

proficient at developing generic

products and ripe enough to

chase innovations in new thera-

pies and biology-based medi-

cines such as antibodies and

novel cell and gene therapies.

He explained that the cost of

building in India is a lot lower

than in Western markets, due

to lower infrastructure and

personnel costs.

“We can have a big com-

petitive advantage in clinical

development. We have a large

population of patients who have

not previously received any

treatments and are therefore

eligible for a robust clinical

trial procedure, a good hospi-

she said at the time.

She said the programme

was in line with the Presi-

dent’s planned executive order

that aims to enable local manu-

facturers while ensuring fair

pricing of essential medicals.

The minister said the

policy will go through the

Federal Executive Council for

approval.

Citing previous backward

integration policies in indus-

tries like sugar and cement,

some stakeholders expressed

concerns about the potential

limitations of such an ap-

proach. They argued that pre-

vious policies haven’t neces-

sarily translated into reduced

prices, largely due to high

operating costs.

tal network, and reasonable

regulatory pathways for clinical

development. If we can lever-

age our existing competence

in chemistry, new biology, and

clinical development, India can

be a force in innovative pharma-

ceuticals,” Prasad said.

Brazil is embracing local

content requirements (LCRs)

to propel domestic production,

but with caution. While Brazil

boasts a strong domestic market

and growing exports, concerns

about LCRs hindering competi-

tion and affordability exist.

Vietnam’s industrial clus-

ters for pharma offer a blueprint

for targeted development. Creat-

ing similar clusters in Nigeria,

coupled with tax breaks for re-

search and development (R&D)

as well as technology transfer

incentives, can foster innova-

tion and competitiveness, ac-

cording to stakeholders.

Thailand’s focus on bio-

pharma and medical devices

showcases the potential for

diversification. By incentiv-

ising investment in these

high-growth areas, fostering

public-private partnerships,

and establishing regulatory

Paul Alaje, chief economist

at SPM Professionals, said pre-

vious backward integration

policies did not meet expecta-

tions due to the lingering prob-

lems affecting manufacturers.

For instance, despite the

Backward Integration Policy

in sugar, Nigeria is still heav-

ily reliant on imports, with the

average price of sugar in the

country rising astronomically.

The country spent about N2.7

trillion on raw sugar imports

between 2012 and 2022, accord-

ing to data from the National

Sugar Development Council

and the National Bureau of

Statistics.

A review of the Nigerian

frameworks for these niche

sectors, Nigeria could also

upscale. However, Thailand’s

challenges in attracting large-

scale investment serve as a

reminder of the need for infra-

structure improvement and a

stable business environment.

Indonesia’s tax breaks for

R&D and public-private part-

nerships for health insurance

demonstrate the importance of

both innovation and accessibil-

ity. Nigeria can emulate these

measures while acknowledg-

ing Indonesia’s need for further

regulatory development and

infrastructure improvements.

Each emerging market

offers valuable lessons, but

successful implementation

requires tailoring to Nigeria’s

unique context.

By carefully studying these

peers, Nigeria can craft a multi-

pronged approach that pro-

motes local production, fosters

innovation, and ensures medi-

cine affordability for all.

The future of Nigeria’s phar-

maceutical industry lies not

just in its potential, but also in

the wisdom gleaned from its

emerging market counterparts

as well implementation of exist-

ing policies that already seek to

ease the operating environment

for businesses, Okey Akpa,

chairman of the Pharmaceuti-

cal Manufacturers Group of the

Manufacturers Association of

Nigeria, told BusinessDay.

Godsgift Onyedinefu & Favour

Okpale

By Temitayo Ayetoto-Oladehinde

BIG STORY

Continues on page 30

Continues on page 31

L-R: Alex Otti, governor, Abia State; Priscilla Otti, rst lady; Vice President Kashim Shettima; and Ikechukwu Emetu, deputy governor, Abia, at the

commissioning 181MW Geometric Power plant as part of the events launching the Light Up Nigeria South East Initiative, in the state yesterday.

and Industry, said.

He said the industry

is just a part of the manu-

facturing sector and that

they are just another set

of manufacturers who

are affected by the chal-

lenges facing other manu-

facturers in the country.

“Whatever will improve

the manufacturing sector

will also improve the phar-

maceutical one.”

Since President Bola

Tinubu announced petrol

subsidy removal during

his inauguration on May

29, pump prices have more

than tripled to N600, while

the value of the naira has

plunged following the

floating of the currency.

Last June, the Central

Bank of Nigeria merged

all segments of the FX

market into the Investors

and Exporters window

and reintroduced the will-

ing buyer, willing seller

model.

The naira has contin-

ued to depreciate against

the dollar and other major

foreign currencies since

then.

The official exchange

rate fell from N463.38/$

to N1,665.5/$ as of Friday.

The naira has hit N1,800/$

at the parallel market, up

from 762/$.

Nigeria’s headline in-

flation rate rose for the

13th consecutive time in

January to 29.90 percent

from 28.92 percent in the

previous month, accord-

ing to the National Bureau

of Statistics.

Food inflation, which

constitutes 50 percent of

the inflation rate, rose to

35.41 percent from 33.93

percent.

Sam Ohuabunwa, the

immediate past president

of the Pharmaceutical So-

ciety of Nigeria, said the

devaluation of the naira

led to a depression in the

demand for drugs.

“And with high infla-

tion and devaluation, it

becomes difficult for busi-

nesses in the pharmaceuti-

cal industry to recover the

price and when they try to

recover it, their products

become unaffordable,” he

added.

The high cost of sourc-

ing FX drove down the im-

portation of pharmaceuti-

cal products into Africa’s

biggest economy for the

second straight time to

$1.05 billion in 2022 from

$1.37 billion in 2021. It also

declined by 63 percent

from $2.84 billion in 2020.

Pharmaceutical exports

reduced by 65 percent to

$779 million in 2022.

A recent report by SBM

Intelligence, a research

consulting and data ana-

lytics firm, titled ‘Pay-

ing the price on health’,

showed that between 2019

and 2023, a pack of 500-mil-

ligram Ampiclox capsules

recorded the highest jump,

with the cost price increas-

ing by 1,390 percent and

the selling price increas-

ing by 1,100 percent.

It said a pack of 500-mil-

ligram Amoxil capsules

grew the fastest among

all the medicines anal-

ysed, with the selling price

jumping by 456 percent

between 2022 and 2023.

“Over the years, the

rate of increase in the cost

price was faster than the

rate of increase in the sell-

ing price. This signals that

a larger percentage of the

proceeds from the sales of

medicines are returned to

the manufacturers, giving

the retailers less wiggle

room to expand their busi-

nesses,” the report said.

Boladele Silva, a phar-

maceutical professor at

the University of Lagos,

said in the SBM report that

Nigeria’s pharmaceutical

industry is highly exposed

to shocks from foreign

exchange volatility.

“In Nigeria, what we

have are packaging hubs.

The active pharmaceuti-

cal ingredients and most

excipients used by the

manufacturers are import-

ed. That makes them very

vulnerable to economic

shocks,” he said.

Africa’s most populous

nation relies heavily on

imported drugs, active

pharmaceutical ingredi-

ents and equipment used

in drug manufacturing

from China, India, Malay-

sia and the Netherlands.

Pharma West Africa,

a major pharmaceutical

exhibition in Africa, said

that over 70 percent of

medicines in Nigeria are

imported, with medicines

accounting for a chunk of

the country’s total health-

care spend of $10 billion.

Capacity utilisation

in the industry is below

50 percent, according to

industry players, who

complain that the lack of

a reliable petrochemical

industry in the country

means most raw materials

are imported.

“Nigerian manufac-

turers suffer from poor

infrastructure and low

patronage, which make

them uncompetitive in

both local and global mar-

kets,” they said.

Last August, GSK an-

nounced plans to exit the

country this year ending

a 51-year-old history of

doing business. Another

French pharmaceutical

multinational also an-

nounced in November an-

nounced plans to exit the

country. Both countries

said it would adopt a third-

party distribution model

to continue product supply

in Nigeria.

Analysis of data from

individual rms

Fidson Healthcare

Fidson’s after-tax profit

in 2023 declined to N3.28

billion from a profit of

Continued from page 1

Drugmakers see decline in fortunes...

2TUESDAY 27 FEBRUARY 2024

www.businessday.ng

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

TUESDAY 27 FEBRUARY 2024

4www.businessday.ng

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

6TUESDAY 27 FEBRUARY 2024www.businessday.ng

NEWS

Court to rule on Kanu’s bail plea,

preliminary objection March 19

A Federal High Court,

Abuja, on Monday, fixed

March 19 for ruling on

the bail application filed

by Nnamdi Kanu, leader

of the Indigenous People

of Biafra (IPOB).

Justice Binta Nyako

will, also on the same

date, rule on a notice of

preliminary objection

filed by Kanu praying the

court not to allow his trial

until certain conditions

were met by the Federal

Government.

Nyako fixed the date

after the new counsel for

the Federal Government,

Adegboyega Awomolo,

and Kanu’s lawyer, Alloy

Ejimakor, adopted their

processes and presented

their arguments for and

against the motions.

The IPOB leader was

initially standing trial on

a 15-count charge border-

ing on terrorism offences

before eight of the counts

were quashed by the tri-

al judge leaving seven

counts, and the Supreme

Court, on December 15,

2023, affirmed the lower

court decision.

When the matter was

called on Monday, Awom-

olo told Justice Nyako

that the case was coming

up for hearing after the

decision of the Supreme

Court on December 15,

2023.

Awomolo said the apex

court affirmed Nyako’s

decision of April 8, 2022,

by preserving counts one,

two, three, four, five, eight

and 15 of the charge to

which Kanu pleaded not

guilty.

The senior lawyer said

that the Supreme Court

ordered the continuation

of the trial of Kanu on the

remaining seven counts.

“We are ready to pro-

ceed with the hearing of

this matter and it is in the

defendant’s interest and

everybody’s interest in

this country to see to the

end of the trial” he said.

But counsel to Kanu,

Ejimakor, told the court

that he had two motions;

an application for bail and

a preliminary objection.

He said though he

agreed that the Supreme

Court directed the con-

tinuation of Kanu’s trial,

they were not ready to

continue the proceedings.

He urged the court to take

his client’s bail appli-

cation and preliminary

objection for the court to

decide whichever way,

and the prosecution did

not object.

While given grounds

why the bail plea should

be granted, Ejimakor said

Kanu currently suffered

from life-threatening and

serious health conditions.

According to the law-

yer, Kanu has heart dis-

LEGAL

ease, hypertension and

dangerous potassium

levels that pose daily

risks to his life while in

detention.

He argued that the DSS

had no standard medical

facility that could treat

the defendant but was

only subjected to cell-

grade medical treatment,

which did not abate his

conduction but instead

worsened it.

He urged the court to

grant the bail request on

the most liberal terms to

enable the IPOB leader

seek better medical care

he urgently requires.

He said though Section

161 of the Administra-

tion of Criminal Justice

Act (ACJA), 2015, raised

three conditions for bail

to be satisfied, Kanu had

met those terms, includ-

ing ill health, delayed

proceedings and not being

given adequate time and

facilities to prepare for

his defence.

Ejimakor alleged that

the prosecution, since Ka-

nu’s arrest and arraign-

ment, had delayed the

proceedings for several

months through amend-

ment of charges and ad-

journments

Justice Nyako ad-

journed the matter until

March 19 for ruling and

trial commencement for

March 20. NAN

• to scrap, subsume, merge parastatals, agencies

By Cynthia Egboboh, Abuja

Finally, FG begins implementation

of Orosanye report

AFTER years of dilly-dal-

lying, the Federal Govern-

ment, on Monday, finally

agreed to begin the imple-

mentation of the Oronsaye

report which recommended

the pruning and merger of

government parastatals and

agencies to cut the cost of

governance in Nigeria.

President Bola Tinubu

ordered the full implemen-

tation of the report, which

will have several agencies

of the government merged,

subsumed, scrapped, and

relocated.

BusinessDay gathered

that some of the agencies

that might be affected in-

clude the Nigerian Commu-

nication Satellite Limited,

the National Broadcasting

Commission and the Nigeria

Communications Commis-

sion in the area of frequency

allocation.

Others are the Economic

and Financial Crimes Com-

mission, Independent Cor-

rupt Practices and Other Re-

lated Offences Commission,

and Federal Road Safety

Commission.

Mohammed Idris, min-

ister of information and

national orientation, dis-

closed this while briefing

State House journalists after

Monday’s Federal Executive

Council meeting presided

over by President Tinubu.

According to Idris, with

the development, several

agencies, commissions, and

departments of government

have been scrapped, with

some moved to other min-

istries where the govern-

ment felt they would operate

better

“So in a very bold move

today, this administration,

under the leadership of

President Tinubu, consis-

tent again with his courage

to take very far-reaching

decisions in the interest

of Nigeria, has decided to

implement the Oronsaye

report.

“Now, what that means

is that a number of agen-

cies, commissions, and some

GOVERNANCE

departments have been

scrapped. Some have been

modified, marked while

others have been subsumed.

Others, of course, have also

been moved from some min-

istries to others where the

government feels they will

operate better,” said Idris.

Commenting on the de-

velopment, Hadiza Bala-

Usman, special adviser to

Tinubu on policy coordi-

nation, said the president

constituted a committee

to implement the mergers,

scrapping and relocations

within 12 weeks.

The Oronsaye report

on public sector reforms,

which was submitted in

2012, revealed there were 541

statutory and non-statutory

Federal Government para-

statals, commissions and

agencies.

The 800-page report

recommended that 263 of

the statutory agencies be

slashed to 161; 38 agencies

be scrapped; 52 be merged

and 14 be reverted to depart-

ments in various ministries.

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

NEWS

By Hope Moses-Ashike

Why CBN should peg

customs duty at N1000/$

THE Centre for the Promo-

tion of Private Enterprise

(CPPE) has urged the Cen-

tral Bank of Nigeria (CBN)

to peg the customs duty

exchange rate at N1000/$ for

the rest of the year, in line

with the Federal Govern-

ment’s commitment to ease

the current hardships on

Nigerians and the burden

on businesses.

Muda Yusuf, the chief

executive officer of CPPE,

in a statement obtained by

BusinessDay, said the high

exchange rate for import

duty assessment was fueling

the already high inflation.

This, he added, was also

increasing production and

operating costs for manu-

facturers, worsening the

cost-of-living crisis, and put-

ting thousands of maritime

sector jobs at risk.

According to Yusuf, the

bank’s interventions have

not addressed the current

prohibitive cost of cargo

clearance at the ports, which

had risen by over 40 percent

in the last two months.

“The CPPE welcomes the

decision of the Central Bank

of Nigeria to approve the use

of the exchange rate reflect-

ed on the import documenta-

tion (Form M) at the onset

of import transaction. This

was a laudable response to

the grievances of investors

in the economy. This would

reduce the current uncer-

tainty around imports and

related transactions in the

economy.

“However, the CBN in-

tervention did not address

the bigger and more trou-

bling issue of the current

prohibitive cost of cargo

clearance at the ports which

had risen by over 40 percent

in the last two months.

“There is also the added

risk of cargo diversion to

neighbouring countries

and heightened smuggling

which could jeopardise the

realisation of customs rev-

enue targets.

Against this background,

the CPPE appealed to the

CBN to peg the customs duty

exchange rate at N1000/$ for

the rest of the year. Yusuf

noted that the current cus-

toms duty exchange rate of

N1488.9/$ was too high in the

context of the current gallop-

ing inflation and difficulties

facing businesses and citi-

zens adding that instances of

abandoned cargo are on the

increase as a consequence of

escalating trade costs.

“These are not good

outcomes for an economy

seeking to ensure recovery,

drive growth, promote in-

clusion and guarantee social

stability.

“Businesses are current-

ly grappling with multiple

macroeconomic and struc-

tural headwinds which are

negatively impacting prof-

itability, competitiveness,

job creation, retention of

existing jobs and business

sustainability.

ECONOMY

Naira gains as CBN plans $40,000 weekly sales to BDCs

NAIRA on Monday appreci-

ated across official and unof-

ficial foreign exchange (FX)

markets as the Central Bank

of Nigeria (CBN) plans to sell

$40,000 weekly to Bureau De

Change (BDC) operators.

The CBN under Godwin

Emefiele, on July 29, 2021,

discontinued the sale of dol-

lars to BDC operators, citing

foreign exchange infractions.

A document from the

leadership of the BDCs seen

by BusinessDays stated,

“The CBN has considered

our request to reinstate our

operations for bidding twice

a week starting from Mon-

day 26/02/2024. The rates,

volumes, and accounts to be

funded for bidding will be

provided today (Monday).

Collections of disburse-

ments will be in the CBN

branches in Abuja, Awka

Lagos, and Kano.

“Funding is extended to

Tuesday, February 27 2024

and collections for Wednes-

day, February 28, 2024, for

the first instance and second

instance for the week to be

shared Tuesday (today).”

The news of the CBN’s

planned intervention to

boost dollar supply may

have triggered the gradual

offloading of the greenback

by some speculators.

Naira on Monday appre-

ciated by 5.22 percent as the

dollar was quoted at N1,582.94,

stronger than N1,665.50 quot-

ed on Friday at the Nige-

rian Autonomous Foreign

Exchange Market (NAFEM),

data from the FMDQ Securi-

ties Exchange indicated.

At the parallel market,

also called the black market,

naira strengthened to an

average rate of N1,590 per

dollar, stronger than N1,700

in the morning of the same

Monday. This represents

FOREX

ECONOMY

Shettima flags off ‘Light Up

Nigeria Project’ in South-East

THE Federal Government

on Monday flagged off the

“Light Up Nigeria Project’

in the South-East aimed at

providing electricity across

the country.

Flagging off the project

in Enugu during the South-

East Business Roundtable,

Vice President Kashim

Shettima said the project

was the reassurance of the

Federal Government’s re-

sponsibility to expand the

country’s industrial sector.

He said, “We gather

here today to embark on

a transformative journey,

the launch of the Light

of Nigeria project in the

southeastern states.

“What we are witness-

ing is the second launch

of the strategic collabora-

tion with the Nigeria Delta

Power Holding Company

(NDPHC) and other invalu-

able partners.

“We are sure of the di-

rect pursuit of the prior-

ity set by his Excellency,

President Bola Tinubu and

the project is a long-awaited

solution to the power sup-

ply that undermines the

economy,” he said.

Shettima, who is the

chairman, board of direc-

tors, NDPHC, said the in-

tervention was a calculated

endeavour to engineer the

nation’s economy, serve

as the oil wheel of indus-

tries and improve Nigeria’s

power supply.

While describing the

southeast as the “industrial

power of the country”, the

vice president said the proj-

ect remained a critical pri-

ority of President Tinubu.

“Igbos are enterprising,

practically mobile and edu-

cationally ambitious. You

are the hope of the nation.”

“I can assure you that

President Tinubu means

well for Nigeria and Ndigbo

and southeast; the south-

east governors are among

the best in the country,”

he said.

Adebayo Adelabu, the

minister of power, said

the Federal Government

would pursue the project

to achieve its objectives,

stressing that it would turn

around power issues in the

country and create jobs for

Nigerians.

According to him, the

project has been structured

to resolve major challenges

in the Nigeria electricity

supply industry since the

privatisation in 2013.

He regretted that despite

the huge investment in the

sector, the power supply

had not improved but kept

deteriorating.

“Since I was I born, we

have experienced the same

issue and currently, we

are generating only 4000

megawatts which is one of

the fundamental issues this

administration is trying to

address,” he said.

Chinedu Ugbo, manag-

ing director, NDPHC, added

that the project was part of

a historic initiative by the

government to address the

issue of electricity in the

country.

Governor Peter Mbah of

Enugu State said the project

signalled a new dawn for

power and industrialisa-

tion of the southeast region.

The governor said the

initiative aligned with his

administration’s disruptive

approach to governance

underpinned by thinking

outside the box.

L-R: Awa Faburay; Abdulrahman Bah, both o󰀩cials of Gambia Revenue Authority; Innocent Ohagwa, vice president, Chartered Institute

of Taxation of Nigeria (CITN); Samuel Agbeluyi, president and chairman of council; Simon Kato, deputy vice president; and Yetunde

Suleiman, assistant director, CITN Tax Academy, during the opening ceremony of the third batch of the in-house training on tax audit on

oil and gas industry for o󰀩cials of Gambia Revenue Authority on Monday

POLITICS

Edo 2024: Ighodalo hails APC, LP

candidates, urges issue-based campaign

ASUE Ighodalo, the candi-

date of the Peoples Demo-

cratic Party (PDP) in the up-

coming Edo State governor-

ship election, has congratu-

lated the candidates of the

All Progressives Congress

(APC), Monday Okpebholo,

and the Labour Party (LP),

Olumide Akpata on their

emergence as flag bearers

for their respective par-

ties, urging them to commit

to issue-based campaigns

ahead of the poll.

Ighodalo, in a statement

on Monday, emphasised the

strength of Edo’s unity and

appealed to all candidates

to avoid divisive campaign

messages. He underscored

the need for respectful,

issue-based campaigns fo-

cused on the concerns of

the people.

“The February 2023 gen-

eral elections saw a level of

hate and vitriol masked as

political sloganeering that

took this nation to the brink,

and the fires politicians

lit back then continued to

smoulder across the nation.

“I and my team will con-

tinue to campaign to the peo-

ple of Edo State in language

and behaviour that seeks

to unite rather than divide.

We will stay focused on the

issues that matter to our

people; and there will be no

descent into abuse, ethnic-

baiting and name-calling. We

must not destroy the unity of

the state we seek to govern.

I, therefore, urge my fellow

candidates to similarly run

respectful issue-based cam-

paigns.” he said

The PDP candidate ex-

pressed concern about the

economic hardships faced

by the people and outlined

plans, together with his

team of young profession-

als and politicians, to uplift

millions of citizens into

prosperity.

He emphasised intentions

to reduce insecurity, secure

financing, attract private

sector investors for intra-

state road development, and

boost the state’s economy,

job creation, and overall

well-being of the people.

Ighodalo emerged as the

winner of the PDP governor-

ship primaries held at the

Ogbe Stadium sports com-

plex on Thursday, February

22, 2024.

By Taofeek Oyedokun

19.49 percent gain when

compared to N1,900 quoted

on Friday.

In response to evolving

market dynamics and regu-

latory imperatives, the Asso-

ciation of Bureau De Change

Operators (ABCON) con-

vened a crucial nationwide

Zoom meeting on February

25, 2024. The outcome of the

emergency session has paved

the way for the implementa-

tion of comprehensive op-

erational guidelines aimed

at enhancing transparency

and regulatory compliance

among members.

During the meeting, the

ABCON national executive

council revealed a series of

pivotal updates and direc-

tives designed to navigate

the intricacies of the foreign

exchange market:

Members of the bureau de

change community received

encouraging news as the

CBN signalled the resump-

tion of operations, allowing

for bidding twice a week,

effective from Monday, Feb-

ruary 26, 2024.

A clear timeline has been

established, extending fund-

ing availability until Tues-

day, February 27, 2024, with

collections scheduled for

Wednesday, February 28,

2024, for the first instance

of the week. Further details

regarding the second in-

stance will be disseminated

accordingly.

In a bid to uphold opera-

tional transparency, mem-

bers are required to submit

daily returns for utilization

by 10 am the following day,

ensuring compliance with

regulatory requirements.

To address potential chal-

lenges encountered dur-

ing return renditions, help

desks will be established in

zonal headquarters, provid-

ing invaluable assistance to

members in need.

By Cynthia Egboboh, Abuja

TUESDAY 27 FEBRUARY 2024

8www.businessday.ng

OPINION

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

Improving productivity in Nigeria’s public

sector through public-private partnerships

lic service will never be the

same.

Indeed, delivering servic-

es to citizens by governments

could be improved through

world-class technology sys-

tems, deepening productivity

at scale. Technology provides

a better way to organise fac-

tors of production more ef-

ficiently, enabling a sym-

phonic arrangement between

people, processes, and tools.

Nigeria’s public service has

served the nation, but as

the population continues

to grow even as economic

growth stays largely frozen,

one way to look for higher

productivity will be to deploy

technology.

With better technology,

public-sector workers will

see improved productivity,

and that will be good for the

nation. Already, some criti-

cal sectors like banking and

insurance in the nation have

demonstrated the immense

value derivable when essen-

tial technologies are deployed

to improve operations and

broad service delivery to

customers. The public sector

must follow that trajectory

by automating and digitising

processes, which are core

enablers for the delivery of

social services and powering

the economy.

Every citizen or organisa-

tion understands the efficient

public sector’s catalytic role

in any economy. It is also

well known that no grand

empowering people, advanc-

ing processes, and improving

tools.

Nigeria needs a dose of

that redesign since public

sector transformation and

fostering a culture of digital

innovation and efficiency

will advance the nation. Do-

ing that via a public-private

partnership (PPP) becomes

very strategic in an era where

public resources are limited.

Digitisation brings trans-

parency and collaboration

across departments, enhanc-

ing efficiency and broaden-

ing public service delivery

while facilitating the capture

and retention of institutional

knowledge, ultimately pav-

ing the way for improved

welfare for citizens.

One important lesson

from the highlighted Aig-

Imoukhuede Foundation

and OHCSF partnership is

that this can be replicated

across the MDAs (ministries,

departments, and agencies)

within governments. And the

arrangements do not neces-

sarily have to be between

governments, non-profit or-

ganisations, and foundations.

I envisage a situation

where for-profit entities like

banks and telcos can partner

with special government

institutions, deepening their

capacities and deriving value

from them. For example, a

bank equips and modern-

ises one of Nigeria’s Fed-

eral Schools of Statistics and

works with that institution to

train its staff in that domain.

Possibly, the government

could also deliver additional

benefits to the bank by mak-

ing the investments tax de-

ductible. Largely, if that does

that, more PPPs will begin to

happen at scale.

In summary, Nigeria will

accelerate its economic per-

formance when we have a

more effective, values-driven,

and results-focused public

sector with the capacity to

deliver enhanced outcomes

for the citizens. Building that

future must not wholly be

funded and supported by the

government, as demonstrat-

ed by the Aig-Imoukhuede

Foundation and OHCSF part-

nership.

The implication is that

MDAs must explore new

capacity-building models

with foundations, non-profit

organisations, and for-profit

institutions to support their

missions towards improv-

ing the welfare of Nigerian

citizens through world-class

service delivery.

delivers world-class services

to its citizens will remain the

bedrock of any functioning

society.

But in a time when the

budget is constrained due

to many economic upheav-

als, how can this playbook

be achieved? The simple

answer is to explore public-

private partnerships where

institutions can work with

governments to fund and

support the digitization and

process improvement of bu-

reaucracy.

As part of digitization, the

workers must be trained and

retrained, the processes up-

graded and reformed, and the

right tools provided to turn

policies into services for the

citizens. In other words, the

architectural design of the

partnership must go beyond

the mere supply of technol-

ogy to include redesigning

processes and equipping the

workforce with the capabili-

ties they need to play critical

will cite the Aig-Imoukhuede

Foundation, which is work-

ing with the Nigerian govern-

ment via a strategic partner-

ship with the Office of the

Head of Civil Service of the

Federation (OHCSF).

The Foundation, through

Microsoft’s implementing

partner, is spearheading a

digital upskilling programme

that aims to equip civil serv-

ants with essential digital

skills, creating a digitally

competent workforce capable

of driving innovation within

the civil service. Besides the

knowledge component, it

was reported that OHCSF,

supported by the Foundation,

implemented an Enterprise

Content Management Solu-

tion (ECMS) that has auto-

mated important work pro-

cesses in line with the federal

government’s e-governance

drive. The overriding goal

of this triple-agenda model

is to improve innovation in

public service delivery by

AROUND the world, the

drums of innovation are beat-

ing the loudest. The resulting

lyric is transformational,

as technological innovation

continues to facilitate the

process of socio-economic

development of nations. The

anchor driver - information

and community technology

(ICT) - is enabling new ways

of exchanging information,

transacting businesses, and

serving citizens, efficiently

and cheaply.

This driver has also

changed the dynamic na-

tures of all major industries

and some government sys-

tems, by providing better

means of using the human

and institutional capabili-

ties of nations in both the

public and private sectors,

radically altering the ordi-

nances of trade, commerce,

and public governance, at

state, national, regional, and

international levels.

As technology transforms

economies into knowledge-

based economic systems, and

data societies, made up of

citizens, organisations, and

states, entwined in electroni-

cally linked interdependent

relationships, the constructs

of market systems and pub-

Every citizen or organisation understands

the ecient public sector’s catalytic role

in any economy. It is also well known that

no grand national vision can be realised

without a dynamic civil service

national vision can be real-

ised without a dynamic civil

service. Indeed, a competent,

values-driven, and results-

oriented public sector that

roles in the economy.

Fascinatingly, there are

institutions that are inter-

ested in seeing this improve-

ment in the public sector; I

Herbert Wigwe, Access Bank and the danger of a single story (2)

organisation known as the

ria (COSON). In the article,

Okoroji wondered how Her-

bert made so much money

to establish a university and

why he named the university

after his family’s name. He

wrote, ‘’I’m in the creative

industry and can understand

the pitfalls of unbridled self-

promotion’’. He then went

on to allege that Access Bank

has refused to release funds

in the account of COSON to

him and that the ‘’bank has

looked for every silly reason

to hold onto our money’’.

First, how did Herbert

make all the money to estab-

lish a university? Herbert

is one of the major owners

of Access Corporation, the

holding company of the bank,

and as a publicly quoted com-

pany, Access Corporation

publishes the particulars of

each director in its annual

reports and audited accounts

every year. This is a statutory

requirement for all quoted

companies. Such details in-

clude the number of direct

and indirect shares held by

the director and the dividend

payments received by each

cial ratios, namely: efficiency

ratio; profitability ratio; capi-

tal adequacy ratio; income-

expenditure ratio; deposits

and return ratios. These are

not visible to the public and

may not be understood by

those who are not financially

literate. Intercontinental’s

ratios were in the red when

the acquisition occurred. Its

huge after-tax loss of N321

billion for the year ended Sep-

tember 2009 was one of the

biggest in the industry then.

On the other hand, Ac-

cess Bank was then in its

tenth year after it was taken

over by Herbert and Aigboje

Aig-Imokhuede. It was very

profitable, and the ratios

were very positive. Senior

lawyers like Banire have a

responsibility to speak with

some knowledgeability; oth-

erwise, they would misrep-

resent their clients.

Another nasty and decep-

tive single story that emerged

soon after the death of Her-

bert Wigwe was an article

published recently by Tony

Okoroji, a former President

of the Performing Musi-

cians Association of Nigeria

(PMAN), who now runs an

director and shareholder.

This will give Okoroji an

idea of the man’s wealth if

he cares to review the bank’s

latest annual reports. In ad-

dition, Herbert’s family also

has interests in other busi-

nesses, including construc-

tion. Why did Herbert name

the university after his fam-

ily? This is as silly a question

as it can get. Organisations

and institutions are named

after their founders as a mark

of honour or memorabilia to

the memory of the founder or

the family.

Herbert is proud of the

Wigwe family he hails from,

and the university was ap-

propriately named to give

honour to the family, just

as Harvard (the oldest in-

stitution of higher learning

in the US is named after

John Harvard); Yale (named

after Elihu Yale); Obafemi

Awolowo University; Ah-

madu Bello University;

Nnamdi Azikiwe University,

etc. are named after great

personalities. Many others

across the globe, like Albert

Ludwig University, Freiburg,

Germany; Aga Khan Univer-

sity, Karachi, Pakistan; Alice

Lloyd College, Kentucky, US;

Anglia Ruskin University,

Cambridge, England; and

Gregory University, Uturu,

Abia State, among many

others, are named after their

founders.

Tony Okoroji’s claim that

Access Bank has deliberately

withheld COSON’s funds is

a deliberate fabrication and

obfuscation of information

just to hoodwink the public

and impugn the characters

of those involved. The fact

is that some members of

COSON—Premier Music,

Ivory Music, and Pretty Oka-

for—have sued COSON and

the bank, seeking to restrict

their accounts. The case is

still in court, and as a senior

lawyer in Access Bank’s Le-

gal Department told me, ‘’in

keeping with the legal doc-

trine of Lis Pendis, the bank

as a responsible corporate

citizen cannot take any steps

that will tie the hands or foist

a fait accompli on the court.’’

In other words, the bank

cannot release the funds un-

til the litigation is over. But

Okoroji did not tell his read-

ers that there is a pending

case in court involving the

accounts of the association.

Rather, he blamed the late

Herbert Wigwe for the delay

in releasing his money and

insinuated that the deaths

of Herbert and another staff

member of the bank who

died in December were a

punishment from God for the

bank’s delay in releasing the

money. How mean-spirited

can people be?

Finally, Herbert is no

longer with us, and he can-

not defend himself against all

these baseless and putrid sto-

ries deliberately churned out

to defame him and his legacy

and traumatise his family

and business associates. May

God forgive those who are

perpetrating these evil deeds,

and may the souls of Herbert

Wigwe, his wife, Chizoba; his

son, Chizzy; and his friend,

Abimbola Ogunbanjo, who

died with him, rest in peace.

Amen.

I HAVE also read an article

written by Mr. Muiz Banire,

a senior advocate of Nigeria

(SAN), in which he flippantly

referred to the acquisition of

Intercontinental by Access

Bank as ‘’tilapia swallow-

ing a whale’’. This is mis-

leading and false imagery

purportedly indicating that

Intercontinental was bigger

than Access at the time of

the transaction. In the first

place, the financial strength

of a bank is not all about the

number of branches it has or

the height of its headquarters

building, which the public

usually sees.

Rather, its strength is

measured in terms of finan-

Ndubuisi Ekekwe is the Lead

Faculty of Tekedia Institute

Etim, a social commentator

writes from Lagos

By Ndubuisi Ekekwe

By Etim Etim

OPINION

10 TUESDAY 27 FEBRUARY 2024

www.businessday.ng

The political economy of cement

hike in Nigeria reflects the

country’s economic deg-

radation and complexity,

highlighting the intercon-

nectedness of factors af-

fecting the economy. The

government’s response to

these hikes is often criti-

cised for its reactionary

approach and the wrong

application of policy in

society.

The government plays

a crucial role in shap-

ing the economy, often

being the highest single

stakeholder in certain

sectors. Its primary role

is to create an environ-

ment for market forces to

determine cement prices

while constraining market

arbitrariness. However,

when market structures

fail, the government must

intervene to produce pub-

lic value by diagnosing

and solving problems ap-

propriately. Government

officials should not act

like elected kings, using

coercive powers to solve

problems that require col-

laboration.

Between May 2023 and

January 2024, the price of

cement increased by 100-

200 percent, affecting all

construction industry seg-

ments. The government

responded by threatening

cement producers to lower

prices or allowing massive

importation to flood the

market. This reflects the

government’s mindset,

taxes is devastatingly af-

fecting the industry.

The issue of exces-

sive cement price hike

requires a comprehen-

sive approach involving

various stakeholders.

Addressing factors such

as gas availability, rail

transportation, foreign

exchange components,

tax harmonisation, inse-

curity, and bureaucratic

interference is crucial.

The government should

not ignore these factors

and assume the problem

has been solved, as any

solution that doesn’t ad-

dress these issues is un-

sustainable.

All factors considered,

because of the socio-eco-

nomic impact of cement,

the government needed

to diagnose the challenge

correctly, consult widely,

and develop a sustainable

policy solution. The im-

pression I get is that this

is not the case. If cement

prices continue to sky-

rocket, the cost of public

infrastructure will esca-

late, many will lose their

jobs, and the nation will

be thrown into further eco-

nomic depression. There

may not be a straight

answer to resolving the

paradox of cement price

hikes, but it is urgent and

imperative that a holistic

approach to tackling the

problem be followed.

Addressing the high

cost of cement requires

collaboration between

the government, industry

players, and other stake-

holders to implement

sustainable and practical

solutions. The govern-

ment must work with the

industry to develop poli-

cies that stabilise prices

and prevent unnecessary

fluctuations. It must en-

force policies that ensure

fair competition and avoid

price gouging. It should

invest in infrastructure

development to improve

transportation networks

and reduce the cost of

transporting raw materi-

als and finished products.

Put mildly, the govern-

ment must create an ex-

ternal environment that

is business-friendly.

The cement industry on

the other hand must im-

plement energy-efficient

technologies to reduce op-

erational costs and explore

alternative and renewable

energy sources.

moting trade liberalisa-

tion to reduce prices. The

recent cement price hike

is rooted in the perception

of cement monopoly, with

the Obasanjo presidency’s

selective protectionism

allowing industrialists to

establish large plants for

cement. However, there is

an unwritten understand-

ing that these investors

will reciprocate by keep-

ing prices low, posing a

challenge for the govern-

ment.

Cement manufacturers

have raised fundamental

issues that need appropri-

ate diagnosis and solu-

tions. Issues raised by

cement manufacturers are

grouped into 5 categories:

-First, with the general

paucity of power in Nige-

ria, almost all manufac-

turers generate their own

energy, and many rely on

tion relies on many import-

ed inputs, such as gypsum,

machinery,explosives to

blast the mines, spare

parts, and propylene to

produce bags, all of which

are imported using USD.

The foreign exchange vola-

tility against the naira has

not helped matters.

-Third, customs duties

are indexed in USD, and

lately, they have moved

from 450/USD to 1700/

USD in just a few months,

a more than 300 percent

increase.

-Fourth, the cost of

diesel, which is critical

in the transportation of

cement and for excava-

tors to mine limestone,

has tripled over the past

three months. Fifth, the

unfriendly operating envi-

ronment characterised by

corruption, strangulating

bureaucracy, and multiple

CEMENT is synonymous

with the strength of the

economy and infrastruc-

tural development. It is

specifically an indicator

of how we prioritise hous-

ing, roads, and other in-

frastructure projects that

rely on it. When cement

prices go up consistently,

it reverberates across

the country, sending cold

chills down the spines of

many.

An increase in cement

prices threatens the hope

of millions of Nigerians

who are struggling to af-

ford homes, a fundamental

human right. The cement

industry is linked to home

ownership, public works,

local manufacturing, and

employment, causing out-

rage and panic among

many. The price of ce-

ment also impacts the

construction industry,

public works, and local

manufacturing.

The recent cement price

An increase in cement prices threatens

the hope of millions of Nigerians who are

struggling to aord homes, a fundamental

human right

but it is unrealistic to solve

problems by threatening

everyone. The public up-

roar prompted the govern-

ment to take action.

The Nigerian govern-

ment faces a dilemma be-

tween protecting the local

cement industry and pro-

gas. Despite being a gas-en-

dowed nation, it is simply

unavailable—a paradox of

plenty. The available gas is

denominated in USD, and

the price has increased by

over 300 percent in the past

6 months.

-Second, cement produc-

Peterside is a management

turnaround professional, lead-

ership coach and public affairs

analyst

Awodu is the chief operating

ofcer, StreSERT Integrated

Limited

When take home is not taking home: why it’s time to

rethink your organisation’s reward practices

AT the start of this year, a

conversation with a long-

time client, a talent leader,

painted a sobering picture of

the challenges many organi-

sations operating in Nigeria

face today.

“My people are complain-

ing that their take-home is

not taking-home. In fact,

some say it finishes before

they get to the bus stop,”

he lamented with a weary

chuckle.

These staff sentiments

were despite the organisation

implementing a cost-of-living

adjustment in the previous

year’s third quarter.

Employee disengage-

ment and attrition persisted,

prompting our conversa-

tion and eventually our en-

gagement to redesign their

reward strategies in light

of their executive manage-

ment’s growing concerns

over employee financial well-

being amidst rising inflation

and living costs in Nigeria.

In the face of real-world

struggles by the average

Nigerian with inflation, the

rising cost of living, and the

economic slowdown, it has

become more urgent than

ever for corporations to re-

visit their reward strategies

and schemes.

Most talent and business

leaders in the country will

tell you that attrition and

mobility of key talent have

increased since the latter part

of last year, fuelled primarily

by talent searches for greater

economic gain. This is also

the driving force behind the

talent drain ‘Japa syndrome’

that has bedevilled business-

es in the last couple of years.

As the value of employee

disposable income continues

to diminish, organisations in

the formal sector are facing

mounting pressure to in-

crease compensation even as

their economic fundamentals

stagnate or decline.

More than a dozen organi-

sations have reached out in

the last two to four weeks

to explore their options for

meeting the very legitimate

needs of their employees for

increased pay.

This is reflective of the

growing conversations and

recognition of the human

imperative in boardrooms

across the country. Moreo-

ver, the federal and some

state governments commit-

ment to increasing pay for

civil servants further un-

derscores the urgency of an

organisational response.

Beyond altruistic con-

siderations, recalibrating

reward schemes is a business

imperative. For businesses to

not just survive but thrive in

today’s economic landscape,

their employees are going to

have to increase their produc-

tivity and performance.

And given that employee

productivity has been shown

to be firmly tied to their well-

being and that their physical

and mental well-being is cur-

rently being negatively im-

pacted by the prevailing eco-

nomic challenges, it makes

eminent sense for businesses

to try to review their reward

schemes to alleviate the con-

cerns of their staff and foster

a conducive environment

for enhanced performance

and overall organisational

success.

A few corporations, those

that can afford to, have im-

plemented generous pay in-

creases. However, for most

organisations, a large per-

centage increase in staff com-

pensation is not feasible, and

they fear starting down the

compensation review given

how easily employee com-

pensation costs can grow out

of proportion and impact the

survivability of the business.

Most companies and employ-

ers take a present-value per-

spective on compensation,

focusing on the long-term

cost commitments.

So, a decision to increase

compensation presupposes a

multi-year cost commitment,

as consideration is given not

only to today’s reward pack-

age but to future bonuses

and promotions. Hence the

seeming reluctance of or-

ganisations to greenlight

compensation reviews.

A well-executed compen-

sation and benefit review

can yield a reward scheme

that costs less than their

current reward packages, in

real terms and when juxta-

posed with the comparative

measurable improvements

in engagement, satisfaction,

retention, and performance.

In our work supporting

clients in reimagining their

reward strategies to improve

employee satisfaction while

optimising individual, team,

and organisational perfor-

mance, we encourage an ap-

proach based on a big-picture

perspective of reward that

can surface new avenues to

tailor reward elements to fit

their particular objectives

and contextual nuances.

Businesses need to take a

total rewards perspective, un-

dertake a data-driven review

of the existing reward system

and employee preferences,

embrace creativity, and com-

municate constantly with all

stakeholders.

The insights obtained

from listening to employees

often provide employers with

surprising insights as to what

their employees value, which

in turn helps in designing

reward packages that fit the

particular context of the or-

ganisation and its workforce.

Data from our work over

the last couple of years con-

sistently points to the rela-

tive importance of financial

compensation to employees,

which is not particularly

surprising, but the data also

clearly shows that they also

value work-life balance (flex-

ibility and hybrid work),

health insurance, career

development, bonuses, and

recognition.

This points to levers avail-

able for organisations to

pull when redesigning their

reward packages. Tapping

into these levers can allow

organisations to impact em-

ployee well-being without

substantial pay increases

and necessarily increasing

the cost to the organisation.

Considering how im-

portant compensation is in

driving culture and strat-

egy, organisations need to

proactively redesign their

reward schemes before they

are forced to do so by a reduc-

tion in productivity and/or

the loss of key talents.

By Patrick Awodu

By Dakuku Peterside

OPINION

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

Obiotika Wilfred Toochukwu;

St. Anthony’s Catholic Com-

prehensive Institute (SACCIA):

Agulu – Anambra State

Segun Tomori is the Special

Assistant on Media to the

Honourable Minister of Solid

Minerals Development

“Public funds were diverted into private

pockets, hampering infrastructure

development and social welfare programs.

In fact, the only language those leaders

understood was bribery and corruptio”

introduced in the 1980s,

₦1:00 was equivalent to

$1:00. Then, every person

with a school certificate .

had a job, and all gradu-

ates obtained house and

car allowances with a

profitable job.

Obviously, we could

infer that Nigeria was

far better under colonial

rule and during the early

days when the colonial

template prevailed. The

military struck in 1966

and took over power, cit-

ing corruption and in-

efficiency, but did the

military end corruption

in Nigeria? Many civilian

presidents were military

men who changed to ci-

vilians, but did they fight

corruption? Presently,

the president, vice presi-

raw materials for the pro-

vision of infrastructure

without jeopardising local

value addition,” he added.

Highlighting why Ni-

geria should be the des-

tination of choice for

prospective investors in

the lithium value chain,

Alake stressed that the

country is experiencing

a ‘Lithium boom’ citing

the preponderance of the

critical metal in several

localities, which he noted

are literally on the surface

of the earth, in most loca-

tions. “This will culminate

in lower production costs

for extraction compared to

other countries.”

While reiterating the

need for public-private

partnerships (PPP) in ca-

hoots with multilateral fi-

nancial institutions to un-

lock the requisite funding

for mining sector devel-

opment, the Minister in-

formed his audience that

Nigeria has taken the lead

with the establishment of

the Solid Minerals Devel-

opment Fund (SMDF) to

build the capacity of local

investors to engage in min-

eral exploitation.

“The SMDF is also in

partnership with the Afri-

can Finance Corporation

(AFC). This body has been

responsible for encourag-

ing local investment in the

mining sector, and appre-

ciable results are coming

in. They are also through

the AFC involved in the

Lobito corridor involving

Angola, Zambia, and the

DRC. We are encouraging

the same corridor to be

put in West Africa, start-

ing with Nigeria, because

we have these mineral

resources in abundance.”

Speaking further on

financing, Alake charged

African countries to take

a cue from Nigeria by tak-

ing a critical look at the

SMDF model. “While we

look forward to the foreign

financial institutions, I

will recommend to other

African countries to also

look inwards. The SMDF

in Nigeria is sourcing

its funds from other eco-

nomic engagements. I will

recommend this policy

initiative to other African

countries”.

Back home in Nigeria,

reforms of President Bola

Tinubu on the mining

sector are gathering mo-

mentum. Just recently, an

inter-ministerial commit-

tee tasked with developing

a blueprint for securing

natural resources estab-

lished by the president and

chaired by Dr. Alake has

since swung into action.

CORRUPTION, like a

stealthy predator, has

long lurked within the

corridors of power in Ni-

geria, leaving a trail of

devastation in its wake.

Despite numerous ef-

forts to combat it, cor-

ruption remains deeply

entrenched, rendering

Nigeria’s governance sys-

tem ineffective and the

nation ungovernable. We

cannot say that during the

colonial era, the British

showed no evidence of

corruption.

At least, we could re-

member ‘tipping’ usually

given to British police, yet

the effects were not felt

in governance. We talk

about poverty, inequality,

and weak institutions to-

day because of corruption.

Many people weep not for

corruption but because

they have never gotten the

opportunity to practice

corruption.

Surreptitiously, a lot

of people imagine vain

things by thinking that

Nigeria will get better

someday. Some are even

praying for their leaders

to be honest, serve with

integrity, and lead the na-

tion towards a noble path.

Such things are what hu-

man minds can conceive,

but the earlier we real-

ise the truth, the better

for us. One of the former

presidents, Muhammadu

Buhari, hypnotised many

Nigerians with the axiom

that corruption will kill

Nigeria if he doesn’t take

up leadership to kill cor-

ruption. Some freedom

fighters, like Mazi Nnam-

di Kanu, have repeatedly

hinted that something is

wrong with a black man.

Incidentally, most of

the political leaders Ni-

geria had governed with

ruined senses. Due to en-

demic corruption during

their tenures and disre-

gard for the rule of law,

citizens’ trust in govern-

ance was eroded. Public

funds were diverted into

private pockets, hamper-

ing infrastructure devel-

opment and social welfare

programs. In fact, the only

language those leaders

understood was bribery

and corruption. At the

time Naira and Kobo were

THE 30th edition of “In-

vesting in Mining In-

daba,” recently held in

Cape Town, South Africa,

provided another opportu-

nity for African countries

through their Ministers of

Solid Minerals and Miner-

al Resources to consolidate

on the pact to forge a com-

mon front in projecting the

continent’s interest in the

global mining industry.

Nigeria and Uganda

had led over a dozen other

African countries into a

coalition in early Janu-

ary on the sidelines of the

Future Minerals Forum

in Riyadh, Saudi Arabia,

to make a case for local

value addition and maxi-

mum beneficiation from

its vast mineral resources

for citizens and member

countries.

The African Minerals

Strategy Group (AMSG)

was formed through a

coalition, with Nigeria’s

Minister of Solid Min-

erals Development, Dr.

Dele Alake, elected as its

pioneer chairman. Alake

emphasised the end of

wasting solid minerals

without adding value to

Africa’s economy.

His words were, “We

must speak with one voice

on value addition as a pre-

requisite for investment

in the mining sector. Let

those who want our miner-

als know that if you go to

country A, you have the

same regulations and laws

guiding the sector. You

go to country B; you find

the same. So, there is no

divide and rule anymore.

That is when we can show

sincerity of purpose, and

the world will begin to take

Africa seriously. On behalf

of our president, I pledge

our full support to achieve

our objectives.”

Doubling down on the

resolve of the African con-

tinent, the Minister, while

speaking as a panellist on

the theme ‘Positioning

Africa to Succeed in Di-

versifying Global Value

Chains’, emphasised the

necessity of creating the

value chain from explora-

tion to mining, processing,

inventory management,

transportation, and then

delivery to the end-con-

sumer.

“All these processes re-

quire infrastructure, and

in my engagement with

private sector players over

time, I have discovered

that a lot of them prefer to

engage in investments in

mining sites close to ports.

That means there is a need

for transportation—roads

and rails. I’m thinking

that the best approach is to

collaborate with consumer

nations that need these

Corruption has made

Nigeria ungovernable!

Nigeria Leads Africa’s

Mining Sector Resurgence

with high fuel costs.

AFCON 2024 saw no

Nigerian referee due to

corruption, leading to cer-

tificate forgery, violence,

loss of life, killings, ter-

rorism, and banditry. Stu-

dents graduate without

jobs and lack values and

models. Nigeria’s young

generation lacks good

examples and values, and

the judiciary and courts

have become rotten due

to corruption. To find five

righteous Nigerians, we

need biblical examples

and a focus on promoting

good examples.

Corruption in Nigeria

has led to the circulation

of two different denomi-

nations of the same cur-

rency, with 80 percent of

Nigerian students being

The administration en-

visages the setting up of a

specialised security outfit

made up of well-trained

operatives equipped with

the requisite technology

and ammunition that will

secure natural resources

comprising solid miner-

als, forest flora and fauna,

and the marine economy.

The last meeting involved

heads of security agencies,

and they were given a

timeline to come up with

a robust action plan that

will assist the committee

in turning in its report.

In line with the Minis-

ter’s 7-point agenda, plans

are ongoing to bequeath

an efficient governance

structure for the mining

sector with the establish-

ment of a Special Purpose

Vehicle (SPV), tentatively

called the Nigerian Mining

Corporation.

The corporation is con-

ceptualised to be private

sector-driven, with cu-

mulative equity for the

private sector pegged at 50

percent, the government at

25 percent, and the Nige-

rian public at 25 percent,

respectively. Learning

from past experiences, this

model is designed to mini-

mise government interfer-

ence and guarantee the

corporation’s efficiency

and stability, even beyond

any administration.

The National Assembly

is amending the 2007 Nige-

rian Minerals and Mining

Act in collaboration with

the Ministry of Solid Min-

erals Development. The

amendment will support

proposed mining corpora-

tions and other reforms.

The House Committee on

Solid Minerals recently

held a public hearing in-

volving top officials, min-

istry agencies, and mining

industry stakeholders.

Dr. Alake hinted at the

revocation of more mining

licences in an interview

with Channels TV, follow-

ing the revocation of 1,633

mining licences due to a

default in annual service

fees. He vowed to enforce

stricter regulations to free

up space for genuine inves-

tors and those willing to

comply with regulations.

In all of these, what is

not in doubt is that Nigeria

is playing a pivotal role

in Africa’s mining sector

renaissance. Summing up

the new direction as chair

of the AMSG during Cape

Town’s Mining Indaba,

Alake affirmed, “We are

sanitising the mining en-

vironment, creating the

enabling environment

to attract investments,

whether local or foreign.

This time around, the em-

phasis will be on local

value addition. So that

henceforth, Africa can

gain maximally from its

abundant natural resourc-

es.”

dent, senate president,

and most of the governors

have corruption charges

and allegations hang-

ing on their necks even

through their political ca-

reers. It is a vicious circle

in the country whereby a

corrupt leader hands over

power to the more corrupt

leader.

Nigerians are wishing

for relief in 2027, unaware

of the collapse of the sys-

tem. After the fuel subsidy

was removed, the Fed-

eral Allocation Accounts

Commission increased

allocations to different

states and shared billions

of naira as palliative. The

PDP’s maxim “share the

money” has taken on a

new form, with citizens

paying heavy taxes for

utilities like electricity,

security, water, and sew-

age disposal. The national

grid often collapses, leav-

ing Nigerians in darkness

fraudsters and deep in

cybercrime and occult-

ism. Despite efforts to

combat corruption, there

has been no sincere effort,

and trade unions, labour

unions, and civil society

organisations are unable

to checkmate or call the

government to order due

to the power of corrupt

leaders and the influence

of EFCC and ICPC.

Bemusedly, everyone

gives an analysis of the

poverty index in Nigeria,

the reasons for the oil

crisis, and the GDP per

capita that made Nigeria

a very poor country. Eve-

ryone agrees that the gov-

ernment is following the

instructions of the World

Bank and IMF. To fight

corruption in Nigeria is

to endanger your life, and

writing about corruption

in offices, the judiciary,

and politics, even to ex-

pose it, is a grave dan-

ger and a risk to one’s

life. Some who came out

to fight corruption were

consumed by corruption.

The culture of impunity

reigns supreme in Nigeria

because of corruption.

In conclusion, corrup-

tion’s pervasive grip on

Nigeria has rendered the

nation ungovernable, un-

dermining democracy, sti-

fling economic progress,

and exacerbating social

inequalities. However,

with concerted efforts to

strengthen institutions,

foster political will, and

engage civil society, Ni-

geria can break free from

the shackles of corrup-

tion and pave the way for

a more prosperous and

equitable future.

By Obiotika Wilfred Toochukwu By Segun Tomori

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LEGAL ADVISERS

e Law Union

THE Economic Community

of West African States (ECO-

WAS) lifted the four-month

ban it placed on Burkina

Faso, Guinea, Mali, and Ni-

ger on Saturday, February

24, 2024, in response to mili-

tary coups and pressure to

restore civil rule. ECOWAS

Chairman and Nigeria’s

president, Bola Ahmed Tinu-

bu, was instrumental in the

sanction and removal. A

crucial question for Nigeria

and ECOWAS remains: what

was the fuss about, and what

did we gain or lose from it?

The lifting of the sanc-

tions has sparked debate

and raised questions about

the strategic wisdom of the

initial sanctions and their

subsequent removal. While

the move might offer a path

towards dialogue and de-

escalation, examining the

broader context and poten-

tial consequences is criti-

cal. The dashboard should

include an interrogation

of the gains and losses to

Nigeria and ECOWAS of the

entire exercise.

Nigeria led and felt the

consequences of the sanc-

tions the most. The Niger

Republic was closest to Ni-

geria and shared so much

affinity. Niger shares the

longest border with Nige-

ria, which covers up to five

states. Nigeria stopped the

age-long practice of pro-

viding electricity to the

Niger Republic. Niger, in re-

turn, imposed a no-fly zone

recovery, and undermin-

ing public trust in regional

institutions.

Lifting the sanctions

could promote dialogue

and flexibility. It might be

seen as an attempt to open

channels for discourse

and encourage progress

towards democratic transi-

tion through engagement

rather than isolation. On

the obverse, people could

see it as ECOWAS caving

into geopolitical pressures.

External pressures, mainly

from Russia, could have

influenced ECOWAS’ deci-

sion in a bid to maintain

regional stability.

ECOWAS lifted the

sanctions without achiev-

ing even one of its stated

objectives for the action.

Instead, the affected coun-

tries effectively called the

bluff by setting up an alter-

native. Capitaine Ibrahim

Traore of Burkina Faso

swore there would be no go-

ing back on their decision

to leave ECOWAS.

While lifting sanctions

presents an opportunity for

dialogue and progress, sev-

eral uncertainties remain.

Can ECOWAS secure

concrete commitments

from these countries to-

wards demonstrably tran-

sitioning to civilian rule

and addressing human

rights concerns? What is

the guarantee of progress?

On the other hand, could

the ECOWAS back down

be perceived as a sign of

weakness that encourages

military regimes? Could

it hinder future efforts to

hold them accountable?

Will the move stabilise the

region in the long run, or

could it create a precedent

for further coups and in-

stability?

The only takeaway

from the ECOWAS events

is prioritising dialogue

and accountability. ECO-

WAS and African coun-

tries must also agree on

the values drawn from

their histories. At its

inception in 1975, eight

percent of the signatory

nations of ECOWAS were

under military rule. The

narrative of civilian con-

trol as the only acceptable

framework in West Africa

did not sound convincing.

Is ECOWAS back to Alex-

ander Pope’s couplet: “For

forms of government, let

fools contest; whatever is

best administered is best?”

With dialogue and

agreement on political

systems, it may be easier

to ensure concrete steps

towards democratic tran-

sition and human rights

improvements. More sig-

nificantly, ECOWAS must

work collaboratively with

other regional and inter-

national actors to address

underlying issues contrib-

uting to instability, such

as poverty, inequality, and

corruption.

against Nigerian aircraft.

It was significant because

the air route over Niger was

the shortest and most eco-

nomical route to and from

Europe for flights from Ni-

geria. Internally, Nigeria’s

states in the North protest-

ed against the sanctions on

the Niger Republic, citing

their siblings across the

border. The National As-

sembly did not buy into the

government’s rationale and

decision. Niger was also a

strategic ally of Nigeria in

terms of security.

Then, the clincher: Four

countries withdrew their

membership in ECOWAS

in January 2024. They an-

nounced a new regional

bloc called the Alliance of

Sahel States.

On Saturday, February

24, President Tinubu led

advocacy for the lifting of

sanctions against Burkina

Faso, Guinea, Mali, and

Niger. It was at the general

meeting of the body.

Two days earlier, ECO-

WAS founding leader and

former Nigerian Head of

State General Yakubu Gow-

on went to its Secretariat to

canvas the closing of ranks.

He urged all the West Af-

rican leaders to “consider

the implementation of the

following: lifting of all sanc-

tions imposed on Burkina

Faso, Guinea, Mali, and Ni-

ger; withdrawal by Burkina

Faso, Mali, and Niger of their

notices to leave ECOWAS;

and participation of all 15

ECOWAS Heads of State in

a summit to discuss the com-

munity’s future, regional

security and stability, and

the international commu-

nity’s role given the current

geopolitical context.”

General Gowon reiter-

ated to the regional leaders

that “ECOWAS is more

than a coalition of states. It

is a community established

for the good of our people

based on shared history,

culture, and tradition.”

ECOWAS Commission

President Dr Omar Alieu

Touray assured Gener-

al Gowon that the letter

would be sent to all the

leaders. The Secretariat

played its part as the lead-

ers cooperated at their

leader’s request.

The lifting of sanctions

and its implications

The decision to lift sanc-

tions appears to be moti-

vated by several factors.

For one, the sanctions had

a limited impact. Citizens

criticised it for dispro-

portionately impacting

ordinary citizens, poten-

tially hindering economic

“The decision to lift

sanctions appears

to be motivated by

several factors; for

one, the sanctions had

a limited impact”

ECOWAS sanctions as a strategic gamble

12 TUESDAY 27 FEBRUARY 2024

www.businessday.ng

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

PROPERTY&LIFESTYLE

14 TUESDAY 27 FEBRUARY 2024www.businessday.ng

Arkland Group in expecting the unimaginable era for real estate sector

????

By Pius Dukor, Port Harcourt.

L-R: Nobert Oleah, group CEO, Technova Africa International Limited; Bolanle Oyeledun, CEO, Centre for Integrated Health Programmes;

Mobola Faloye, chairperson of board of directors, Global Accelerex Limited; Adunola Olumodimu, wife of founder/CEO, Arkland Group;

Jide Olumodimu, founder/CEO, Arkland Group; Adeyeye Enitan Ogunwusi, Ooni of Ife; Siky Aliyu, former GMD, NEDCO; Emmanuel

Odiaka, CEO, ECOOB Finance; and Ziad Boutros, general manager, Yasnas Engineering, at the 10th anniversary celebration of Arkland

Group in Lagos, recently.

By Chuka Uroko

FOR the real estate sector

in Nigeria, an exciting mo-

ment is underway as one of

the leading operators in the

sector has entered an era

when the sector should be

expecting the unimaginable

in terms of products and ser-

vice delivery to the housing

market.

The operator, known as

Arkland Group, set the stage

for this era following its

10th anniversary which it

marked recently in Victoria

Island, Lagos, where the

Founder/CEO, Jide Olu-

modimu, went down mem-

ory lane to talk about the

making of the Group that has

become a reference point in

luxury real estate.

Olumodimu revealed

that his passion for real

estate, which gave birth

to Arkland, was fuelled

by his childhood dream of

becoming a major player

in that sector, pointing out

that over the last 10 years,

the company has not only

impacted lives in various

ways, but also contributed

to growing the economy.

The turning point in the

life of the Group was the de-

livery of its first residential

development called Grace

Court located at Dideolu Es-

tates, Victoria Island, Lagos.

The project’s success marked

the beginning of Arkland’s

journey because, 10 years

ago, I embarked on my real

estate journey fuelled by

my childhood dream,” he

enthused

He told the stakeholders

that their unwavering sup-

port, belief in the Group’s

vision, and collaboration

have been instrumental to

the Group’s success, adding

that the celebration was as

much theirs as it was for the

Group.

Though the Group started

out as an agency firm in Ajah,

Lagos amid the challenges in

the real estate sector, it recog-

nized the complexities of the

sector and sought to provide

solutions.

Over the years, the Group

has navigated through mar-

ket fluctuations, regulatory

changes, evolving customer

demands, and has become a

360-degree real estate organi-

zation, providing solutions

in property development,

construction and facilities

management, earning rec-

ognition as a real estate com-

pany with a commitment

to excellence, integrity and

credibility.

Arkland Group’s impact

over the past decade extends

beyond individual projects,

reaching diverse markets

and states. With presence

in prime locations across

Lagos and Abuja, the Group

has consistently delivered

high quality developments.

In 2019, it made a giant leap

into development in Eko At-

lantic City—an ambitious

city development in Nigeria

patterned after Dubai.

Daring to be different,

Arkland Group upscaled

its dreams, team, and op-

erations for unprecedented

success, showcasing its am-

bition to contribute to the

transformation of iconic

cityscapes.

the setting up of Arkland

was inspired by the Marina

Street’s tall buildings in La-

gos Island, thanking God that

the company has become a

prominent force in the real

estate industry today.

“Today, as we celebrate

a decade of Arkland Group’s

accomplishments, I want to

express my deepest grati-

tude to the stakeholders

who have been part of this

triumphs.

Subsequent projects

like Providence Court,

Ade Court, Fabian Court,

Vantage Court, La Paz

Apartments amongst oth-

ers in prime locations in

Lagos and Abuja have

demonstrated the com-

pany’s ability to replicate

successful models.

It is through these pro-

jects that the company has

impacted lives and contrib-

uted to the growth of the

country’s economy by way

of providing housing for a

good number of Nigerians

at home and abroad, and also

creating jobs for both skilled

and unskilled labour in the

built environment.

Besides the childhood

dreams, the Founder/CEO

disclosed further that his

foray into real estate and

THE price of cement in the

Nigerian market remains

outrageously high as 50kg

bag of the product still goes

for an average of N12,000 in

defiance to an intervention

by the federal government

and a threat to open doors for

importation of the product

if the manufacturers do not

reduce their prices.

A market survey by Busi-

nessDay shows that a 50kg

bag of Dangote Cement sells

for N12,500 while Lafarge

sells for between N12,000 and

N14,000 per bag. Though it

the considered the cheapest

in the market today, the BUA

brand of the product sells for

between N10,000 and N11,000

per bag.

Other brands like Ibeto

cement and United Cement

Company of Nigeria Lim-

ited (UniCem) are selling

for N10,000 and N11,000 as

well as N12,000 to N14,000

respectively.

These shows that Nige-

ria’s real estate, especially

the housing sector, is in the

most uncertain and troubling

times which has seen a lot

of developers abandon their

project sites while activities

at other construction sites

have slowed significantly.

As a response to these

prices which started from

the first and second week of

February, the federal gov-

ernment met with the ma-

jor cement producers and

other relevant stakeholders

where they agreed to peg

the price of the product at

N7,000 to N8,000 depending

on location of the buyer and

the buyer. Even though the

Minister of Housing and

Urban Development, Ahmed

Dangiwa, does not see any

justification for the price

increase, the manufacturers

told David Umahi, Minister

of Works who chaired the

meeting that they had their

challenges, listing them as

high cost of gas and high

import duty on spare parts.

Other challenges, accord-

ing to them, are poor road

networks, high foreign ex-

change rates and cement

smuggling to neighboring

nations. They insisted that

the only way the price of ce-

ment could come down was

for the federal government

to address all the challenges

they have raised.

At a separate meeting

with manufacturers of ce-

ment and other building

materials, Dangiwa decried

the high cost of building

materials despite the abun-

dance of its raw materials in

the country. He queried the

recurring disproportionate

increase in the price of ce-

ment in particular, especial-

ly considering that cement

producers in the country

source virtually all their raw

materials locally.

“It is disheartening to

see how much Nigerians

have to pay for essential

building commodities like

cement, with the prices ris-

ing almost on a daily basis. I

don’t understand the reason

Cement: Price at N12,000 defies FG’s

intervention, importation threat

By Chuka Uroko for this increase, and it is not

acceptable.

“The manufacturers

should explain to Nigerians

their reasons for such inces-

sant hikes. I know that the ce-

ment producers source their

raw materials in Nigeria;

limestone, clay, silica sand,

gypsum, iron ore, and the

rest. These minerals abound

in Nigeria and these manu-

facturers get them here, so

there is no justification to try

and blame it all on the rise of

the dollar”, he said.

Dangiwa warned that the

government might be com-

pelled to open the borders for

cement importation if manu-

facturers of the product fail

to bring down the prices,

expressing concern that in

the past couple of months,

the country had witnessed

an alarming increase in the

prices of cement and other

building materials.

“Clearly, this is a crisis

for housing delivery. An in-

crease in essential building

materials means an increase

in the prices of houses,” the

minister said.

Like the minister, many

other Nigerians are at a loss

why the price of cement keeps

rising almost on monthly

basis. The cement which

sells for between N10,000 and

N14,000 today was sold for

between N5,000 and N6,000

just last January.

Group set to provide 5,000 affordable

houses for low income earners

A group known as Global

Centre for Empowerment

and Care for Life Challenges

has disclosed its readiness to

provide 5,000 housing units

in Rivers State to reduce the

suffering of the masses.

The group added that it

would do this through the

promotion of advocacy and

creating beneficial inter-

est for the general public

towards housing and indus-

trial development in line

with the Sustainable Devel-

opment Goals ( SDG) 9 and 11.

Vincent Agbo, the Na-

tional President of the group,

made the remark at a press

conference in Port Harcourt

where he maintained that

the purpose of the project

was to provide decent and

low cost housing units to

meet the needs of the people

irrespective of their age and

class.

He explained that the vi-

sion of the organization was

geared towards enhancing

and encouraging proto-type

housing and industrial de-

velopment that will spread

across the 36 states of the

federation, noting that the

project will be beautiful, com-

prehensive and all inclusive

when completed.

Agbo who is also a clergy-

man stated that the project

would use available technol-

ogy and science in designing

the houses that will be com-

parable to others globally.

He expressed optimism that

state governors of each of the

states will be a critical stake-

holder in providing land and

other essential elements for

the success of the project,

saying that both the local and

international partners and

financiers are standing-by

to kick-off the project after

all necessary arrangements

have been concluded.

The group in collabora-

tion with the United Nation,

through the SDG express

concern that such a won-

derful window of opportu-

nity should be utilized by

all stakeholders, govern-

ment agencies, individual,

national and international

investors should bridge the

gap in the housing sector

so that those who are of the

working class could have

affordable houses.

Shitu Salami said the

housing units when built will

reduce the number of those

who are still tenants, hoping

that after this project many

will be landlord. “We are

not here to make money but

to help you ‘ he stated.” We

are to make you grow and

develop yourself and make

money,” he explained.

Agbo told journalists that

the basic human needs are

food, clothing and housing

but noted that affordable

housing is the most impor-

tant thing among all others,

hence they are in Rivers

State to solve the housing

challenge.

…marks a decade of impacting lives, growing economy

COMPANIES & MARKETS

FTN Cocoa posts zero revenue for

first time in 12 years

By Olamide Ologunagbe

By Charles Ogwo By Olamide Ologunagbe

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

Seplat Energy-NNPC joint venture

graduates 331 teachers Unilever unveils new employee

policies amid rising inflation

FTN Cocoa Processors

Plc, one of Nigeria’s old-

est cocoa companies,

has recorded zero rev-

enue for the first time in

at least 12 years, accord-

ing to data compiled by

BusinessDay.

The company’s lat-

est unaudited financial

statement shows that

its revenue plunged by

100 percent from N62.19

million in 2022.

The cocoa processor

also saw its after-tax

loss widen to N8.13 bil-

lion from N431.19 mil-

lion. Foreign exchange

loss jumped to N7.76

billion compared to a

gain of N13.30 million.

“The company has

not been producing due

to the lingering work-

ing capital inadequacy.

This impacted on the

gross margin as a result

of huge fixed cost that

has to be borne,” the

company said in the

statement.

Its cost of sales de-

clined to N200.49 mil-

lion in 2023 from N241.84

THE Nigerian National

Petroleum Corporation

(NNPC) E&P Limited/

Seplat Energy Joint

Venture (JV) has gradu-

ated 331 teachers and

27 chief inspectors of

education (CIE) at the

2024 education summit

and empowerment pro-

gramme for Edo and

Delta states.

The Seplat Teach-

ers Empowerment Pro-

gramme (STEP) gradu-

ation ceremony which

was held in Benin City

recently hinged on the

Joint Venture’s contin-

ued quest to contribute

towards the improve-

ment of quality educa-

tion in the communities

and states where Seplat

Energy operates, and by

extension Nigeria.

Chioma Afe, director of

external affairs and social

performance at Seplat En-

ergy addressing the chal-

lenges within the educa-

tion value chain explained

that the education value

chain plays a crucial role

in shaping the workforce

and fostering economic

UNILEVER Nigeria, a

fast-moving consumer

goods company, has

implemented a series

of forward-thinking

policies, including a

flexible working model,

to accommodate the di-

verse needs of its work-

force.

Ola Ehinmoro, hu-

man resources director

for Unilever West Afri-

ca, disclosed these poli-

cies in a statement last

week, noting their fo-

cus on maximising pro-

ductivity and achieving

work-life balance.

The policies, struc-

tured around six core

areas, encompass ma-

ternal and paternal

leave, menstrual leave,

lactation and childcare

facilities, hybrid work-

ing arrangements, sup-

port for employees with

special needs, and en-

gagement initiatives

While these policies

apply to all employees,

million in the previous

year.

Operating expenses

rose to N284.48 million

from N124.74 million.

Other operating in-

come recorded a surge

to N222.3 million from

N6.69 million.

The firm’s total assets

rose by 82.86 percent

to N13.31 billion from

N7.28 billion, while total

liabilities increased by

development.

“At the foundation of

the education value chain

lie primary and secondary

education, crucial for lay-

ing the groundwork for

future learning.

However, access to

quality early education,

especially in rural areas,

remains a challenge. This

affects children’s abil-

ity to proceed to higher

education or enter the

workforce.

“Despite efforts to in-

crease access to quality

education, disparities in

resources persist across

different regions, par-

ticularly in secondary

education. Higher educa-

tion institutions play a

critical role in shaping the

workforce through spe-

cialised training and skills

development, but they face

challenges such as limited

funding and outdated cur-

ricula,” Afe said.

According to her, edu-

cation disparities among

socioeconomic groups hin-

der inclusive growth and

poverty reduction efforts,

emphasising the need for

uniformity in resource

particular attention is

given to supporting fe-

male employees.

“Putting into consid-

eration the challenges

that come with child-

birth, the transition to

parenthood and the im-

portance of family, the

company offers gener-

ous maternity and pater-

nity leave beyond legal

requirements as expect-

ant mothers are entitled

to 16 weeks of maternity

leave, while fathers re-

ceive three weeks of

paternity leave,” Ehin-

moro said.

Unilever offers ma-

ternity and paternity

leave, provides on-site

childcare and lactation

facilities, and grants a

one-day menstrual leave

to female employees for

rest and recuperation.

“Nursing mothers in

the company are also

provided with onsite

crèche and lactation

rooms to enable them to

care for their babies and

children while engaging

106.8 percent to N18.26

billion.

Net cash used in in-

vesting activities re-

corded a negative of

N562.83 billion from a

negative of N149.9 bil-

lion. Net cash generated

from financing activi-

ties surged to N9.69 bil-

lion from N196.4 mil-

lion.

Cash and cash equiva-

lents at the end of the

allocation and quality im-

provement.

“Addressing challeng-

es within the education

value chain is crucial for

workforce development

and socioeconomic growth

in Nigeria. Our collective

efforts are vital in building

a skilled and productive

workforce that can drive

the nation’s growth and

development in the years

to come.”

Ayodele Olatunde, MD

Seplat West Limited at Se-

plat Energy, represented

by Emmanuel Otokhine,

the base manager at West-

ern Asset, earlier in his ad-

dress, said the programme

stands as a beacon of the

company’s unwavering

commitment to champi-

oning and empowering

educators in their noble

quest for excellence.

“The collective mission

of the NEPL/Seplat JV

is to equip teachers with

the tools, knowledge, and

resources essential for

thriving in today’s dynam-

ic educational landscape

while leaving an indelible

mark on the lives of their

students,” he said.

in impactful work,” he

added.

He also said that

as part of its flexibil-

ity measures to enable

emotional, physical, and

psychological balance

for female employees

during their menstrual

period, the company al-

lows for a one-day men-

strual leave for them to

rest and recuperate.

Ehinmoro added

that the company also

promotes flexibility

through hybrid work

arrangements, allow-

ing three days of on-site

and two days of remote

work, supported by al-

lowances and digital

tools for seamless col-

laboration and produc-

tivity.

“The company also

provides allowances to

support remote work

and boasts offices that

are equipped with the

best digital tools to facili-

tate seamless collabora-

tion and productivity,”

he said.

year was N874.83 mil-

lion, up from N4.95 mil-

lion.

To address its work-

ing capital challenges,

FTN Cocoa secured a

short-term loan facility

from Zedcrest Capital

Limited to meet urgent

needs.

“The company has a

short-term loan facility

from Zedcrest Capital

Limited to meet some

urgent working capital

needs of the company,”

the report said.

Additionally, it dis-

closed that its core in-

vestor, OH Ecosystem,

was investing in the

company, facilitating

a factory facelift and

import of spare parts

in preparation for re-

sumed operations.

“Factory facelift is

ongoing alongside im-

port of spare parts in

preparation for the com-

mencement of operating

activities,” the company

said in a statement.

Last June, stakehold-

ers approved the com-

pany’s decision to ob-

tain a convertible loan

of $6.35 million from

OH Ecosystems LLC,

with the authorisation

to provide security in

favour of the Norwegian

Investment Fund for De-

veloping Countries and

OH Eco.

That the company is

and is hereby authorised

to provide security in

favour of the Norwegian

Investment Fund for

Developing Countries

and OH Eco in accord-

ance with the terms of

the relevant security

documents, according to

a statement.

“That pursuant to the

company’s Articles of

Association, the direc-

tors having recommend-

ed, be and are hereby

authorised to raise such

additional amount con-

sidered necessary for

the business operations/

working capital require-

ment of the company in

any way thought fit and

subject to the approval

of relevant regulatory

authorities and on such

conditions/terms as the

directors may deter-

mine,” the statement

said.

The company issued

an 18-year bond in 2008,

due in 2026 to Daewoo Se-

curities (Europe), with

an option to convert

the bond into ordinary

shares of FTN Cocoa

Processors at maturity.

The proceeds from the

bond issue received in

2009 were used for the

initial expansion of the

company, the firm said.

By Olamide Ologunagbe

SON gets international accreditation

for quality management

The Standards Organi-

sation of Nigeria (SON)

has announced that its

Management Systems

Certification (MSC) de-

partment has received

accreditation from the

International Accredi-

tation Service for four

management system

standards

The MSC depart-

ment earned accredi-

tation for Quality Man-

agement System ISO

9001:2015; Occupational

Health and Safety Man-

agement System ISO

45001:2018; Environ-

mental Management

System ISO 14001:2015,

position as a leading

authority in standardi-

sation and quality as-

surance, not only in

Nigeria but also on the

global stage.

“It instills trust and

confidence in stake-

holders, assuring them

that the organisation

and its certified part-

ners consistently de-

liver products and

services in line with

the requirements of its

specific standard.”

Egbuciem added that

the IAS affirmation was

a direct reflection of the

SON team’s pursuit of

excellence and commit-

ment to international

best practices.

and Food Safety Man-

agement System ISO

22000:2018.

“The accreditation

signifies the depart-

ment’s unwavering

commitment to deliv-

ering exceptional qual-

ity in all its services,”

Obiageli Egbuciem,

acting director of the

SON MSC Department,

said.

“We are incredibly

proud of this achieve-

ment, and it catalyses

further advancements

in our journey towards

continuous improve-

ment,” she said.

She added that the

prestigious accredita-

tion solidifies SON’s

16 TUESDAY 27 FEBRUARY 2024www.businessday.ng

By Folake Balogun

COMPANIES & MARKETS BUSINESS EVENT

L-R: Ngowari Torunana, director, medical services, Ministry of Health, Bayelsa State; Ayebatonye Benja-

min Basuo, head, social performance, FIRST Exploration and Petroleum Development Company Limited

(FIRST E&P); Moses Theophilus, chairman, KEFFESO Host Communities’ Development Trust (KHCDT),

Mokoama Sangana Kingdom; Hameed Oyedeji, representative of NNNPC-NUIMS; Abel Bahuo, chairman,

council of chiefs, Sangana Kingdom; and Mathew Sele-Epri, secretary, KEFFESO Host Communities’

Development Trust (KHCDT), during the second edition of the medical outreach by FIRST E&P/NNPC

Joint Venture held in Sangana, Bayelsa State.

South Africa’s Hohm Energy secures

$8m to boost solar adoption

HOHM Energy, a South

African solar energy start-

up, has secured $8 million

in its successful final close

of the seed round to boost

solar adoption.

The funding was led

by E3 Capital and 4DX

Ventures, with additional

support from new inves-

tors, including Breega,

E4E Africa, TO.org, Tek-

ton Ventures, Sunu Cap-

ital, Musha Ventures,

and Climate Capital Ven-

tures.

“The energy system

in South Africa is bro-

ken. ClimateTech is key

to solving the current

challenges through the

provision of a scalable

and sustainable alterna-

tive,” Tim Ohlsen, chief

executive officer of Hohm

Energy, said while speak-

ing on the investment.

“Our robust software

platform and fintech mar-

ketplace, which enables

us to offer value to all

stakeholders, is pivotal in

enhancing the efficiency

of rooftop solar instal-

lations and ultimately

mitigating the severity of

load-shedding being expe-

rienced,” he said.

The company said in

a statement that it would

now accelerate the adop-

tion of rooftop solar in the

region by investing in its

new cutting-edge climate

fintech strategy

It said the new fund

would enable it to bolster

tech, product innovation,

and solar installer skills

development to make roof-

top solar more accessible,

trusted, and affordable for

everyone.

The firm said it lever-

aged technology to tackle

challenges in South Af-

rica’s $51.4 billion com-

plex rooftop solar market,

streamlining the design.

According to the firm,

it also schedules and

procures processes for

installers and enhances

accessibility for buyers,

mitigating delays, instal-

lation flaws, compliance

risks, and financing ob-

stacles

“Amid a growing en-

ergy crisis, South Africa

finds itself in the grip of

escalating power short-

ages, resorting to daily

electricity rationing to

prevent a nationwide grid

collapse,” it said.

L-R: Adedeji Stanley Olajide, House of Representative chairman on ICT and cybersecurity; Lola Aworanti-

Ekugo, AI in Nigeria board advisor; Dotun Adeoye, co-convener, AI in Nigeria; Rodger Werkhoven, independent

creative director, Open AI; Ehia Erhaboh, co-convener, AI in Nigeria; and Raghu Bala, head instructor, MIT

Executive AI Programme, during the lnnovate AI Conference Lagos 2024, in Lagos.

L-R: Hammed Adebiyi, brand manager, edrington portfolio, Nigeria; Kelechi Amadi-Obi, creative photographer

and publisher, Style Mania; and Daniel Atteh, The Macallan brand educator and ambassador, Lagos, during

the unveiling of The Reach, The Macallan’s oldest whisky, in Lagos.

L-R: Alexander Yesayan, co-founder and CEO, Intent.ai; Danice King’Ori, media investment lead, Airtel

Africa; Nandu Buty, head of brands, Airtel Africa; Julia Tumasyan, chief operations ofcer, Intent.ai; and

Anthony Shiner, group chief commercial, Airtel Africa, during the ofcial launch of Airtel Ads powered by

Intent.ai, in Lagos.

By Folake Balogun

Nigerian Bottling Company launches

recycling banks

NIGERIAN Bottling

Company Limited, one

of the biggest compa-

nies in the non-alcohol-

ic beverage industry,

has inaugurated recy-

cling banks in Lagos

and Abuja.

According to a state-

ment, this is in further-

ance of its commitment

to collect and recycle a

bottle or can for each

one introduced into the

market for recycling or

reuse by 2030.

The statement said

the neighborhood-

give residents an op-

portunity to turn their

plastic waste into cash.

Oluwasoromidayo

George, director of Cor-

porate Affairs and Sus-

tainability at Nigerian

Bottling Company, said

there is a need to ad-

dress current global

challenges associated

with single-use plastics

was important.

“We recognise that

there is an urgent need

to create solutions to

some of the challenges

that the world is facing

today with single-use

plastics,” she said.

based recycling bank

in Ifako-Ijaiye housing

estate, Agege, was one

of 10 strategically posi-

tioned facilities across

communities in Lagos

and Abuja

“These hubs will

collect polyethylene

terephthalate bottles

(PET bottles), allow-

ing residents to con-

vert plastic waste into

cash,” it said.

It added that the facil-

ities will serve as a hub

for collecting polyethyl-

ene terephthalate bot-

tles, otherwise referred

to as ‘PET bottles,’ and

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

Lagos, Ogun, led mobile

subscriptions in 2023 - Report

‘Nigerians most trusting of generative AI tools’

SEVENTY-FIVE percent of

Nigerians are comfortable

sharing their personal

information with Generative

Artificial Intelligence (AI)

tools, according to a survey

conducted by KnowBe4

Africa, a platform for new-

school security awareness.

The ‘Generative AI in

the Middle East and Africa

Survey 2024 Survey’ revealed

that Nigeria’s 75 percent is the

highest among the countries

it studied.

“In South Africa, only

54 percent of users feel

comfortable sharing their

personal information with

generative AI tools, compared

to 67 percent in the United

By Boluwatife Omotayo

Arab Emirate and 75 percent

in Nigeria,” it noted.

The firm noted that the

surveyed countries included

Nigeria, South Africa,

Botswana, Ghana, Kenya,

Egypt, Mauritius, Morocco,

UAE, and Saudi Arabia, with

1,300 users as respondents.

The firm said almost two-

thirds of these respondents

are at ease sharing their

personal information with

generative AI tools such as

ChatGPT.

Anna Collard, SVP Content

Strategy and Evangelist,

KnowBe4 Africa, said, “While

the results clearly show that

generative AI tools are widely

used, they also highlight

the need for increased user

training and awareness

regarding the potential risks

associated with this powerful

new technology.”

83 percent of users feel

confident about the accuracy

and reliability of generative

AI, showing an excessive

level of trust, KnowBe4 Africa

highlighted. “42 percent of

respondents use generative

AI several times a week,

67 percent of respondents

use generative AI for doing

research, 81 percent of

respondents use generative

AI to save time, and 95

percent of respondents are

concerned about adversaries’

use of generative AI,” the firm

added.

The firm noted, however,

that the survey results

highlight the need for user

By Boluwatife Omotayo

DATA from the Nigerian

Bureau of Statistics (NBS)

has shown that Lagos and

Ogun states had the highest

number of active voice and

internet subscribers as of

the end of 2023.

The NBS revealed this in

its latest ‘Telecoms Data on

Active Voice and Internet

per State, Porting and Tariff

Information’ report. As of

the end of the fourth quarter

of 2023, Lagos has 26.74

million voice subscriptions

and 18.93 million Internet

subscriptions.

Ogun had 13.07 million

active voice subscriptions

and 9.57 million Internet

subscriptions. Kano

completes the top three

states with 12.33 million

mobile subscriptions

and 9.03 million Internet

subscriptions.

Bayelsa, Zamfara, and

Gombe had the least voice

and Internet subscriptions

in 2023. The NBS highlighted,

“On the other hand, Bayelsa

still recorded the least

with 1,557,786, followed

by Zamfara and Gombe

with 2,772,424 and 2,785,030,

respectively. “Likewise,

Bayelsa recorded the least

active internet subscriber

with 1,193,525, followed

by Zamfara and Gombe

with 1,959,252 and 2,100,073

respectively.”

MTN Nigeria continues

to dominate the telecom

space. As of the end of Q4,

2023, it had 87.04 million

and 70.66 million voice and

Internet subscriptions,

respectively. Globacom

had 61.61 million and 43.99

million voice and Internet

subscriptions, respectively.

On network usage, it

was noted that MTN had

the highest active voice

and internet subscribers

throughout the year, with

others following closely.

Airtel had 61.83 million

and 45.06 million voice and

Internet subscriptions,

respectively. And 9mobile

had 13.94 million and 3.63

million voice and Internet

subscriptions, respectively.

As of the end of Q4, 2023,

Nigeria’s total number of

voice subscriptions was

224.71 million, and Internet

subscriptions totalled 163.84

million.Lagos continues

to dominate the nation’s

telecom space because of its

high population density and

level of development. It also

has the country’s largest

kilometer of deployed fibre

optic cable. As of 2023, Lagos

had 7,864.60km of deployed

optic cables.

Fibre optic cables are

crucial to achieving wider

connectivity across the

nation. Other states that

have large areas covered,

according to the Ministry

of Communication,

Innovation and Digital

Economy, include

Edo (4,892.71km), FCT

(4,472.03km), Ogun

(4,189.18km), Niger

(3,681.66km), Kaduna

(3,028.88km), Delta

(2,750.42km), Kano and

Kogi have 2,697.72km and

2,602.25kn respectively.

education regarding the usage

of AI tools.

It declared, “The

report’s findings highlight

the need for more user

education regarding the

potential dangers of AI tools,

particularly the growing

threat of deepfake technology.

“The adoption of

GenAI offers tremendous

opportunities for African

users and organisations, but

we also need to consider the

associated risks. Our survey,

which runs across users

owning smartphones in 10

African countries, indicates

that all respondents are

using generative AI in their

personal and professional

lives, with many using it daily

or weekly.”

???

GOOGLE has announced

that its Gemini AI-powered

chat-like tool for Search Ads

is now available for African

businesses.

“The Gemini AI-powered

chat-like tool is now fully

operational and designed to

help businesses in Africa and

worldwide boost their online

visibility.

“Our conversational

experience takes the

complexity out of ad creation,

empowering businesses

of any size to easily craft

campaigns that resonate

with local audiences. This

new addition features an

easily accessible interface,

tailored suggestions, visual

inspirations, and overall

control for the users,” the

global firm said.

Google noted that with

the increase in Internet

penetration in Sub-saharan

Africa, it is now pertinent for

African businesses to reach

customers effectively through

online advertising.

“Creating effective ads can

be time-consuming, especially

for small businesses. Our new

conversational experience

helps businesses of all sizes

tap into the power of Google

AI to create successful Search

campaigns with remarkable

ease,” Shashi Thakur, VP

and GM of Search Ads and

Ads on Google Experiences,

explained.

The firm noted that the

conversational AI experience

for Google Search Ads is

available globally for English-

speaking business owners,

with plans to extend support

to additional languages in the

near future.

This feature is part of

Google’s broader initiative

to empower small businesses

in Africa by facilitating

the creation of impactful

Search ads. By automatically

generating headlines and

descriptions based on existing

website content, Google’s AI

dynamically enables ads to

respond to relevant searches.

Google’s Gemini-powered chat tool

now operational in Africa

ABISOYE Coker-Odusote,

Director General and

Chief Executive Officer

of the National Identity

Management Commission,

has urged the commission’s

Front End Enrolment

Partners (FEPs) to comply

with the terms of the Nigerian

Data Protection Act.

She charged the FEPs to

ensure no one is left out of

the National Identity Number

(NIN) registration process.

NIMC’s CEO said this

recently while addressing the

commission’s management

retreat attendees.

In a statement signed by

Kayode Adegoke, head of

corporate communications at

NIMC, she said, “Our mission

at NIMC is clear: to equip each

Nigerian and legal resident

with a unique and secure

NIN. This number is the key

to accessing critical services,

social benefits, and economic

prospects. However, in order

to accomplish this, we must

ensure the integrity of our

enrollment process.”

According to her, FEPs

are the link between citizens

and the NIMC enrollment

ecosystem. She noted that

citizens’ information must be

treated with care, accuracy,

and thoroughness.

“While we welcome the

expansion of our National

Identity Database to over

104 million captured NINs,

we cannot rest on our

laurels. Millions more are

waiting to be enrolled. They

include students, farmers,

businesspeople, and the

elderly. They are the heartbeat

of our country.

“Let us reach out to

all parts of Nigeria, from

booming cities to isolated

villages. Allow us to

collaborate with schools,

hospitals, and community

leaders. Let us ensure that no

one is left behind, including

the vulnerable, people with

disabilities, those living in

remote locations, and so

on. Let us make the NIN

enrollment process accessible,

fast, and inclusive,” Coker-

Odusote added.

NIMC DG urges registration

agents to comply with data law

By Boluwatife Omotayo

ENERGY INTELLIGENCE

By Dipo Oladehinde &

Abubakar Ibrahim

By Dipo Oladehinde

Nigeria’s oil rebounds with first

growth since Q1 2020

Oil industry bets on OPEC+ extending

production cuts into Q2

Shell’s LNG business grows with $2.4 bn profit

NIGERIA’S oil sector GDP

has recorded its first posi-

tive growth since the first

quarter of 2020, marking a

potential turning point for

the nation’s economy.

This news comes after

several quarters of con-

traction due to fluctuating

oil prices and production

challenges.

According to the latest

data released by the Na-

tional Bureau of Statistics

(NBS), the oil sector’s GDP

grew by 12.11 percent in

the fourth quarter of 2023,

a significant reversal from

the negative growth figures

seen since the first quarter

of 2020.

Further findings showed

crude petroleum GDP sky-

rocketed from a -0.85 per

cent decline in Q3 to a ro-

bust 12.11 per cent growth

in the fourth quarter of 2024.

The nation in the fourth

quarter of 2023 recorded an

average daily oil produc-

tion of 1.55 million barrels

per day, higher than the

daily average production of

1.34 million barrels per day

recorded in the same quar-

ter of 2022 by 0.21 million

barrels per day and higher

than the third quarter of

2023 production volume

of 1.45 million barrels per

day by 0.10 million barrels

THE oil industry is heavily

expecting the OPEC+ group

of oil-producing nations to

extend their current pro-

duction cuts into the second

quarter of 2024, accord-

ing to a recent survey by

Bloomberg.

The survey, which

included 17 anonymous

traders and analysts, over-

whelmingly predicted that

OPEC+ will maintain its

current production levels

in Q2. This comes as the

group attempts to balance

the global oil market amidst

concerns of slowing de-

mand growth and record-

high U.S. shale production.

“OPEC+ is facing a deli-

cate situation,” said Bob

McNally, president of Rapi-

dan Energy Group. “Supply

is exceeding demand, and

to keep prices stable, they

need to keep that excess oil

off the market.”

OPEC+, led by Saudi

Arabia, implemented pro-

duction cuts totaling 2 mil-

lion barrels per day (bpd)

in October 2023. These cuts

were initially scheduled to

last until the end of March

2024, but the industry now

anticipates an extension.

Several factors are in-

fluencing this expectation.

The International Energy

Agency (IEA) predicts a

SHELL’S liquefied natu-

ral gas (LNG) business

emerged as a bright spot in

the company’s final quar-

ter of 2023, generating a

stellar profit of $2.4 billion.

Gas has become Shell’s

biggest money-spinner.

Its integrated gas divi-

sion, which is dominated

by LNG activities, was

the largest contributor to

group profits in four of

the past five years and ac-

counted for just over half

the company’s $14.7bn in

earnings in the first half

of 2023.

The LNG trading profit

for the final quarter of 2023

was among the highest

quarterly earnings from

LNG in company history,

two of Reuters’ sources

said.

Early this month, Shell

reported consensus-beat-

ing adjusted earnings of

$7.3 billion for the fourth

quarter, well ahead of

estimates of $6.4 billion,

thanks to strong LNG

trading and optimization

results.

The supermajor, how-

18 TUESDAY 27 FEBRUARY 2024www.businessday.ng

per day.

The oil sector contrib-

uted 4.7 per cent to the total

real GDP in Q4 2023, up

from the figure recorded in

the corresponding period

of 2022 and down from the

preceding quarter, where

it contributed 4.3 per cent

and 5.5 per cent respec-

tively.

The real growth of the

oil sector was 12.1 per cent

(year-on-year) in Q4 2023,

indicating an increase of

25.5 per cent points relative

to the rate recorded in the

corresponding quarter of

2022 (-13.4 per cent).

Nigeria, Africa’s larg-

est oil producer, has long

relied on crude oil to fuel its

economy. However, recent

years have seen a decline

in global oil prices and pro-

duction challenges, impact-

ing the nation’s economic

global oil surplus in the

second quarter if OPEC+

relaxes its production

curbs. Additionally, Saudi

Arabia’s Energy Minister,

Prince Abdulaziz bin Sal-

man, has previously hinted

at the possibility of extend-

ing the cuts beyond March

if necessary.

While the survey indi-

cates a strong industry belief

in an extension, the official

decision from OPEC+ is still

pending. The group is expect-

ed to meet in early March

to discuss their production

plans for the second quarter.

The OPEC+ group has

not announced its official

Q2 plans, and they haven’t

set a date yet to discuss Q2

plans either.

While most of those sur-

veyed feel that OPEC+ is

likely to extend their cuts

into the next quarter, oth-

ers feel that OPEC+ may

increase their production

cuts, after some of its mem-

bers—including Iraq and

Kazakhstan—continued to

overproduce in January.

Apart from the survey,

the IEA has estimated that

while global oil demand

growth is losing momen-

tum, the global oil markets

are indeed tightening after

observing that oil stocks fell

by about 60 million barrels

in January. If markets are

to continue to tighten, one

ever, did not disclose the

exact contribution of LNG

trading to its earnings and

a company spokesperson

declined to comment for

Reuters on the LNG trad-

ing profit.

During the fourth quar-

ter of 2023, ahead of peak

winter in the northern

hemisphere, there were a

lot of arbitrage opportuni-

ties between the Atlantic

Basin and Asia, which ben-

growth.

Yet, 2024 could offer a

glimmer of hope, with ex-

perts suggesting a combina-

tion of increased drilling,

gas commercialisation,

and the incoming Ajaokuta-

Kaduna-Kano gas pipeline

project, among others, as

ways oil can once again

jump-start Nigeria’s eco-

nomic engine.

Cordros Securities Lim-

ited, in its 2024 full-year

outlook, projected that the

economy will remain on

a growth trajectory, sup-

ported by improvement in

the oil sector amid the gov-

ernment’s ongoing efforts

to curb pipeline vandalism

and oil theft and, gradual

recovery from the impact

of policy reforms imple-

mented in the prior year, as

well as continued resilience

in the services sector.

thing must be true, if IEA

estimates prove accurate:

OPEC+ must maintain its

current discipline and un-

wind its production cuts

gradually—not all at once at

the end of the first quarter.

How slow the cuts would

have to be unraveled to

not send oil prices spiral-

ing downward varies from

analyst to analyst.

“The physical markets

are telling us that actually

markets have tightened,”

director of research at En-

ergy Aspects Ltd, Amrita

Sen told Bloomberg. “We do

believe that OPEC+ will ex-

tend its cuts in some form.”

Then, according to Sen, the

surplus will disappear.

The potential extension

of production cuts could

have significant impli-

cations for the global oil

market. It could help to

stabilize oil prices, which

have been volatile in recent

months due to various fac-

tors, including geopoliti-

cal tensions and economic

uncertainty. However, it

could also raise concerns

about potential supply con-

straints and higher fuel

costs for consumers.

The oil industry will be

closely watching OPEC+’s

decision in March, as it will

have a significant impact

on the global oil market in

the coming months.

efited Shell’s performance

in LNG trading, chief ex-

ecutive Wael Sawan said

on the earnings call in

early February.

Shell believes in the

long-term demand growth

in LNG and will continue

to look at LNG and LNG

trading as one of the pil-

lars of its business.

“They are moving fur-

ther and further away

from me being comfort-

able that they have a genu-

inely compelling view for

what this business should

look like in 25 years,” said

one top 20 shareholder.

Increasing LNG vol-

umes was a “pragmatic”

strategy for the current

environment, the share-

holder said, noting that

demand for natural gas

in a decarbonising world

was likely to outlast de-

mand for other fossil fu-

els, particularly as Eu-

rope weans itself off Rus-

sian gas and Asia seeks

alternatives to coal. But

in the longer term, pri-

oritising LNG over clean

energy could be a risk, the

shareholder added.

“We would like Shell to

be doing a lot more around

developing and articulat-

ing and then committing

to a genuinely compelling

energy transition strat-

egy.” Other shareholders,

particularly those based

in the US, are more posi-

tive about Shell’s commit-

ment to its most lucrative

business, according to

Oswald Clint, an analyst

at Bernstein.

“Investors can see that

the demand is there, it is

most likely multi-decade,

and if you’re the biggest

player in the market, you

own the space, why not

add to it,” he said.

Shell’s focus on LNG

dates back to the very

start of the industry. The

company shipped the first-

ever commercial cargo of

fuel from Algeria to the

UK in 1964 and later that

decade was instrumental

in developing the Asian

LNG market as a partner

in Brunei LNG.

Before then gas was

largely considered an un-

wanted byproduct of oil

production and was usual-

ly flared on site. Shell’s es-

pecially large portfolio of

oil-producing assets gave

it a particular “problem”

of what to do with associ-

ated gas, according to one

former senior executive in

Shell’s gas business.

Last week, Shell pub-

lished its annual LNG

outlook, in which the su-

permajor expects global

LNG demand to surge by

50% by 2040, driven by

higher demand from Asia,

with coal-to-gas switching

in China and a boost in

LNG consumption to fuel

economic growth in South

and Southeast Asia.

In the long term, the

global LNG market is set

to continue growing into

the 2040s, largely driven by

China’s industrial decar-

bonization and strength-

ening demand in other

Asian countries, Shell said

in its Shell LNG Outlook

2024.

In association with

TUESDAY 01 AUGUST 2023

FUTURE OF POWER

Meet Barth Nnaji, mastermind of Nigeria’s only

integrated power project in Aba

FG targets 1,268MW boost from eight new power plants

POWER supply is expect-

ed to witness a significant

boost in over half of Abia

State as the Geometric

Power Group is set to

start firing the first of its

four power-generating

turbines after inaugura-

tion this week.

Geometric Power is

licensed to produce 188

Megawatts (MW) and is

currently Nigeria’s only

integrated power project,

as it has its own embed-

ded power plant, which

enables it to generate

and distribute its power,

separating it from other

electricity companies that

either generate or distrib-

ute electric power, as none

can generate and distrib-

ute power as it would.

BusinessDay findings

showed the electricity gen-

eration company in the

Geometric Power Group

(GP) is Geometric Power

Aba Ltd, (GPAL), while

the distribution company

is Aba Power Limited

Electrical (APLE), which

services nine (9) of the

seventeen (17) local gov-

ernment areas (LGAs) in

Abia State.

These nine Local

Government Areas, Aba

South, Aba North, Osi-

sioma Ngwa, Obingwa,

Ugwunagbo, Ukwa East,

Ukwa West, Isiala-Ngwa

South and Isiala-Ngwa

North collectively make

up the Aba Ring-fenced

Area where GPAL in

charge of producing and

distributing electricity.

The mastermind be-

By Faith Esiho

THE Federal Govern-

ment of Nigeria (FG) is

setting its sights on a sig-

nificant increase in na-

tional power generation

by developing eight new

power plants. These pro-

jects, expected to be con-

structed through public-

private partnerships

(PPPs), are projected to

add a combined capacity

of 1,268 megawatts (MW)

to the national grid.

This news comes

amidst ongoing chal-

lenges in Nigeria’s pow-

er sector, characterized

by limited generation

and distribution capac-

ity. The current national

grid struggles to meet

hind the project, Bartho-

lomew Nnaji, also known

as Barth Nnaji, is a pro-

fessor of mechanical en-

gineering and the found-

er and chairman of the

indigenous power com-

pany, Geometric Power

Limited (GPL).

Nnaji holds a doctor-

ate in Industrial and

Systems Engineering

from Virginia Polytech-

nic Institute and State

University in the United

States. He is a professor

of Computer Integrated

Manufacturing and Ro-

botics in the Department

of Mechanical and Indus-

trial Engineering at the

University of Pennsyl-

vania. He also received

his dual MSc and PhD

degrees in physics from

St. John’s University in

New York, US.

Nnaji returned to Ni-

geria in 1993 to serve as

the federal minister of

Science and Technology.

After this, he founded

GPL, Nigeria’s first in-

digenous-owned power

development company

in 2000.

Geometric Power Lim-

ited under Nnaji brought

in the first high-efficien-

cy combined emergency

power station in 2001

for Abuja. The 22 MW

Emergency Power Sta-

tion successfully supplied

uninterrupted power to

a dedicated distribution

network within Abuja and

its environs.

Nnaji’s experience

in executing the Abuja

22MW emergency power

project led Geometric

Power to develop the “In-

tegrated Power Solutions

Model” which essentially

entailed the development

of power generation and

distribution companies

that serve the needs of

industrial, commercial

and residential areas in

an economic cluster.

To illustrate the Inte-

grated Power Solutions

model, Prof Barth Nnaji

conceptualized the Aba

Integrated Power Project,

to supply reliable power

to industries, commercial

businesses, residences

and other power off-takers

in the Aba ring-fenced

area through construc-

tion, operation and deliv-

ery of electricity from the

140 MW gas-fired power

plant.

Nnaji traced the his-

tory of the Aba power

plant to when Ngozi Okon-

jo-Iweala, Nigeria’s for-

mer minister of finance

invited the late James

Wolfohnson, a former

President of the World

Bank to Aba to see, first-

hand, Aba’s tremendous

economic and technologi-

cal potential.

“After the visit in 2004,

I was asked by the duo

to consider building a

50-megawatt power plant

in Abia for manufactur-

ers, both big ones like the

Star Paper Mill and small

ones like the hundreds of

excellent shoemakers and

clothiers at the famous

Ariaria Market.

“They approached

me obviously because I

had led a small team of

dedicated Nigerian engi-

neers and entrepreneurs

to build a 22megawatt

Emergency Plant in Abuja

in 2001 for the supply of

electricity to State House,

the NNPC headquarters,

the Abuja Business Dis-

trict and other places.

“I acceded to the re-

quest by Dr. Okonjo-Iwea-

la and Dr. Wolfohnson.

What the two did not real-

ise is that my enthusiastic

acceptance was because

the plant would be located

in Aba. This city has a spe-

cial place in the heart and

mind of every person in-

terested in our country’s

rapid progress: It is the

home of indigenous manu-

facturing, innovation and

entrepreneurship.

“There is another rea-

son why I accepted to

build the plant in Aba.

I had experienced, first-

hand, what industrialists

in Igbo land were going

through.

“As a professor of man-

ufacturing engineering

in the United States in the

1990s, I decided to build a

plant in Emene, Enugu,

to produce vehicle spare

parts, including engines,

of the highest standard in

the world. After all, I had

watched my former stu-

dents from Taiwan and

other places in Southeast

Asia rush home to pro-

duce sophisticated auto

parts and engines.

“So, a large swath of

land was purchased for

this purpose, but when

my South Korean part-

ners visited Enugu, it

became obvious that the

project would not take

off principally because

of poor electricity. It was

while I was thinking of

how to help resolve the

electricity problem in

Ala Igbo that Dr. Okonjo-

Iweala and Dr. Wolfohn-

son made the request.

The rest is history,” Nna-

ji said.

Yet, the proprietor of

the Geometric Group,

said: “I must add that

it has since 2004 been

tears, sweat and blood, to

borrow the words of late

Mr. Winston Churchill,

the former British prime

minister.

“I don’t want to tell

the story of sweat, blood

and tears now; all I can

say this moment is the

game is worth the can-

dle. Nothing can give

as much fulfillment and

satisfaction as working

wholeheartedly for your

people,” he said.

the electricity demands of

the nation’s over 200 mil-

lion population, often hov-

ering between 3,000MW

and 4,000MW.

According to reports,

three of the eight planned

power plants have already

been awarded to conces-

sionaires, while the Fed-

eral Executive Council

(FEC) recently approved

the concession of another.

The remaining projects

are expected to be award-

ed soon, paving the way

for construction to begin.

The new power plants

will utilize a mix of

brownfield and green-

field development ap-

proaches. Brownfield

projects involve the re-

habilitation and expan-

sion of existing facilities,

while greenfield projects

involve the construction

of entirely new power

plants on undeveloped

land. This diversified ap-

proach aims to leverage

existing infrastructure

while also promoting the

development of new re-

newable energy sources.

Joseph Utsev, the

minister of water re-

sources and sanitation

presented details of the

project to the National

Council on Water Re-

sources and Sanitation

at its 30th regular meet-

ing. He emphasized the

government’s commit-

ment to improving the

nation’s power situa-

tion through strategic

By Dipo Oladehinde

www.businessday.ng

TUESDAY 27 FEBRUARY 2024

partnerships and invest-

ments in the sector.

“We have conclusive-

ly concessioned some

projects while still de-

veloping others through

various PPP models

itemised as follows:

concession of the 40MW

Dadinkowa Hydropower

Project in Gombe State.

We have attained finan-

cial closure and the plant

is operational, thereby,

stabilising the transmis-

sion voltage of the North-

East of Nigeria.

“Concession of the

30MW Gurara Hydro-

power Plant in Kaduna

State up to financial

closure and the plant,

which is under reha-

bilitation will commence

commercial operation in

the third quarter of the

year 2024.

“Concession of the

40MW Kashimbila Hy-

dropower Plant in Taraba

State. The Federal Execu-

tive Council approval has

been secured, the conces-

sion agreement executed

and the commencement

fee paid by the concession-

aire to the special conces-

sion account as approved

by the Federal Ministry

of Finance Budget and

National Planning,” Utsev

said.

Outlining other pro-

jects, the minister said,

“Development of 360MW

Gurara Phase II Hydro-

power Project in Niger

State (engineering, pro-

curement and construc-

tion contract awarded

and FEC approval for

the concession of opera-

tion and maintenance of

the power plant through

PPP model secured).

The anticipated in-

crease of 1,268MW from

these new plants rep-

resents a notable step

towards addressing

Nigeria’s longstanding

power challenges. How-

ever, experts caution

that achieving a sustain-

able and reliable power

supply will require con-

tinued investment in

infrastructure upgrades,

transmission networks,

and addressing gas sup-

ply constraints to exist-

ing power plants.

•On-Grid • Off-Grid • Hydropower • Policies

BD TECH

In association with

20 TUESDAY 27 FEBRUARY 2024www.businessday.ng

Illegal crypto transactions dropped

by $15bn in 2023 — Report

mate and illicit. However,

the drop in money launder-

ing activity was steeper,

at 29.5 per cent, compared

to the 14.9 per cent drop in

“Chainalysis attribut-

ed the overall decrease in

money laundering to the

reduction in crypto trans-

action volume, both legiti-

By Chinwe Michael

By Temitayo Jaiyeola

Cyberthreat in Nigeria declined

by 10% in 2023 — Kaspersky

5G, 6G increases risk of cyberattacks — NCC

KASPERSKY has revealed

that cyber threats declined

by 10 percent in Nigeria in

2023.

The cybersecurity firm

disclosed this during its

9th annual Cyber Security

Weekend – META 2024, held

in Kuala Lumpur, Malaysia.

According to its experts,

these cyber threats included

those caused by web pages,

emails, or web services vul-

nerabilities.

In a statement, the ex-

perts said, “Despite the de-

cline in cyber threats in

Nigeria, banking malware

attacks designed to collect

online banking credentials

and other sensitive informa-

tion from infected machines

increased by 8 percent.”

Other African countries

recorded declines, too, in

2023. Threats in South Af-

FIFTH-generation (5G)

and sixth-generation (6G)

technology and other ad-

vancements in network

technology increase the

risk of cyberattack, the

Executive Vice Chairman

of the Nigerian Commu-

nications Commission,

Dr Aminu Maida, has

disclosed.

The NCC boss noted

this is because of the in-

creased interconnected

devices and denser net-

work infrastructure. He

stressed that network

advancements come with

the responsibility of ad-

dressing new risks, from

cybersecurity threats to

ethical considerations.

Maida revealed this

during a two-day Tele-

coms Industry Risk Man-

agement conference in

Lagos.

rica decreased by 29 per-

cent, but phishing attacks

that use social engineering

tactics to scam people into

revealing sensitive informa-

tion rose by 29 percent.

Kenya saw a fall in over-

all threats by 8 percent.

Despite this, the country

saw a 68 percent increase

in ransomware attacks, and

phishing rose by 19 percent.

Amin Hasbini, director

of META Research Center

Global Research and Analy-

sis Team (GReAT) at Kasper-

sky, highlighted the impact

of emerging technologies on

the threat landscape. The

expert noted that integrat-

ing Artificial Intelligence

(AI) into various sectors has

become a significant risk

factor influencing the scale

of modern threats.

“The cybersecurity land-

scape continues to evolve,

and threats become more di-

The conference,

themed ‘Evolution and

Future Risk Management

in the Telecoms Indus-

try: Harnessing Emerg-

ing Technologies and

Trends,’ aims to address

new challenges that come

with technological ad-

vancements.

Speaking through Mr.

Ubale Maska, the Com-

mission’s Executive Com-

missioner for Technical

Services, Maida said,

“While we discuss the

current landscape of 5G

networks, which boast of

wider attack surface due

to the increased number

of connected devices and

denser network infra-

structure, it is imperative

to even cast our gaze into

the future.”

As more people get

online, the risk of attack

increases. Commenting

on risks associated with

verse and sophisticated, par-

ticularly with the emergence

of advanced technologies

like AI within the META

region,” Hasbini said.

Kaspersky’s further re-

vealed that Turkiye had

the highest number of users

affected by online threats

(41.8 percent), followed by

Kenya (39.2 percent), Qatar

(38.8 percent), and South

Africa (35 percent) in 2023.

Oman (23.4 percent), Egypt

(27.4 percent), Saudi Arabia

(29.9 percent), and Kuwait

(30.8 percent) reported fewer

affected users.

“As the cybersecurity

landscape continues to shift,

Kaspersky emphasises the

importance of staying ahead

of emerging threats and im-

plementing robust security

measures to protect indi-

viduals and organisations

across the META region,”

Hasbini added.

By Chinwe Michael

ILLICIT cryptocurrency

activities dropped by $15.4

billion in 2023 to $24.2 bil-

lion in 2023, Chainalysis

has disclosed.

In a report titled, ‘Mon-

ey Laundering Activity

Spread Across More Ser-

vice Deposit Addresses

in 2023, Plus New Tactics

from Lazarus Group,’ the

blockchain analytics firm

revealed that total illicit

transactions amounted to

$39.6 billion in 2022.

In 2023, online crypto

platforms were increas-

ingly used for illicit trans-

actions, including money

laundering. The firm noted

that the amount laundered

through crypto totalled

$22.2 billion.

While this is a 29 percent

decline from the $31.5 bil-

in 2022.

It added, “In 2022, just 542

deposit addresses received

over $1 million in illicit

cryptocurrency, for a total

of $6.3 billion, which was

over half of all illicit value

received by centralised ex-

changes that year. In 2023,

1,425 deposit addresses re-

ceived over $1 million in

illicit cryptocurrency, for

a total of $6.7 billion, which

accounts for just 46 percent

of all illicit value received

by exchanges for the year.”

The firm attributed this

to a change in the modus op-

erandi of crypto criminals

who might be “diversifying

their money laundering

activity across more nested

services or deposit address-

es in order to better conceal

it from law enforcement

and exchange compliance

teams.”

lion recorded in 2022, the

firm attributed the overall

decrease in money launder-

ing to a reduction in crypto

transaction volume.

total transaction volume,”

it highlighted.

Chainalysis categorised

illicit transactions into two:

those sent to addresses linked

to known illegal activities

and those stolen through

cryptocurrency hacks.

“2023 mostly resembled

2022 in terms of the break-

down of service types used

for money laundering. Over

time, the role of illicit ser-

vices has shrunk, while

the share of illicit funds

going to DeFi protocols has

grown and an increase in

funds moving to gambling

services and bridge proto-

cols,” Chainalysis said.

The blockchain firm

noted that more addresses,

109 to be exact, received

high amounts ($10 million)

of illicit crypto in 2023. Only

40 addresses received over

$10 million in illegal crypto

6G, the NCC’s CEO not-

ed, “We are witnessing

the dawn of 6G technol-

ogy, the next frontier in

wireless communication.

With promises of even

faster speeds, lower laten-

cy, and groundbreaking

applications, 6G has the

potential to revolutionise

how we experience con-

nectivity.”

In 2023, GSMA, the

global association of tel-

ecom operators, revealed

that 5G will be exposed

to more cyber threats

because of its higher

data speeds and lower

latency.

Samantha Kight, head

of industry security at

GSMA, explained that

higher data speeds and

lower latency will pro-

vide cybercriminals

with new opportunities

to launch sophisticated

attacks.

TECHNOLOGY

Tech tales from Nigeria:

The rise of informal innovation

By Olufemi Kazeem Oluoje

ACROSS the bustling tech

scene of Nigeria, a unique force

thrives on casual innovation.

While European counterparts

may depend on based research

and improvement (R&D) depart-

ments, Nigerian marketers often

wield ingenuity and resource-

fulness to conquer demanding

situations and create answers

that leapfrog set-up technolo-

gies. This “jugaad” technique,

because it’s acknowledged in

India, isn’t approximately slic-

ing corners; it’s approximately

embracing adaptability and lo-

cating creative solutions inside

restrained assets.

Imagine a bustling market

where mobile money platforms

like M-Pesa have revolutionised

payment systems, born not from

Silicon Valley but from the need

to navigate a cash-heavy econ-

omy with a confined banking

infrastructure. Also, take into

account the ingenuity behind

alternative delivery networks

like “okada riders” (bike taxis)

and “keke NAPEPs” (tricycles),

which sprang up to address

transportation gaps in urban ar-

eas. These innovations, driven

by nearby wishes and a spirit of

improvisation, have come to be

ingrained within the material of

Nigerian life.

Beyond Jugaad: A Strate-

gic Advantage:

Informal innovation isn’t

pretty much plugging holes;

it holds strategic benefits. Ni-

gerian startups/organizations

frequently function with leaner

systems, bearing in mind faster

choice-making and adaptation

to market situations. They pos-

sess an innate understanding

of local needs and cultural nu-

ances, enabling them to develop

solutions that resonate deeply

with their target audience. This

agility and deep-rooted know-

how can supply them with a

critical aspect in a swiftly evolv-

ing global tech landscape.

Impact of Employment

Nigeria’s tech area isn’t only

transforming the manner enter-

prise is conducted but addition-

ally serving as a catalyst for

task advent, especially among

its teenage population.

The upward push of informal

innovation in the country’s tech

atmosphere has drastically

contributed to employment

opportunities, economic em-

powerment and social mobility.

In a nation where youth unem-

ployment remains an urgent

situation, the tech industry has

emerged as a beacon of hope,

providing avenues for signifi-

cant employment and entrepre-

neurship. With its emphasis

on creativity, adaptability, and

digital abilities, the sector has

grown to be an appealing choice

for younger Nigerians seeking

to harness their competencies

and contribute to the country’s

growth.

Beyond traditional employ-

ment opportunities, the rise of

informal innovation has also

fueled entrepreneurship and

the creation of new businesses.

Businesses and tech-driven

enterprises are springing up

across the country, driven by

ambitious founders who are

eager to disrupt established in-

dustries, solve pressing societal

challenges, and carve out their

niche in the global market.

Examples of Informal In-

novation in Action:

Harnessing the Power of

Mobile Phones: From farmers

using mobile apps to access

climate forecasts and market

expenses to students attend-

ing online courses on their

smartphones, Nigerians are

innovatively leveraging mo-

bile technology to overcome

infrastructural limitations and

access essential services.

Building on Existing Sys-

tems: Platforms like Jumia, an

e-commerce marketplace, and

Konga, an internet retail giant,

capitalised on existing mobile

payment technology and infor-

mal delivery networks to build

a successful business. They

understood the limitations of

traditional logistics systems

and adapted to the realities of

the Nigerian market.

Crowdsourcing Innova-

tion: Platforms like “TechCa-

bal” foster collaboration and

knowledge sharing within the

tech community. These plat-

forms permit aspiring entre-

preneurs to access mentorship,

resources, and funding, creat-

ing an ecosystem that thrives

on collective ingenuity.

The Nigerian tech ecosystem

offers valuable lessons for the

global tech community. By em-

bracing a more open and adapt-

able approach to innovation,

established players can tap into

new markets, develop solutions

that address unmet needs, and

foster a culture of continuous

learning and improvement.

As Nigeria’s tech scene con-

tinues to mature, informal

innovation will undoubtedly

play a pivotal role. However,

challenges remain. Access to

funding, and infrastructure.

Solving these problems will

require cooperation between

government, business, and

the community to support and

cultivate this strong innovative

spirit.

The Nigerian tech envi-

ronment is a testament to the

strength of informal innovation.

By embracing resourcefulness,

adaptability, and a deep under-

standing of local needs., Nige-

rian entrepreneur is not just

creating solutions for their own

market, but also offering valu-

able lessons for the global tech

community. As the world seeks

new and modern answers to

complex demanding situations,

the spirit of “jugaad” holds a

significant capacity to shape the

future of technology

The Nigerian

tech environment

is a testament

to the strength

of informal

innovation.

By embracing

resourcefulness,

adaptability,

and a deep

understanding of

local needs

Olufemi Kazeem Oluoje, a

seasoned software developer

residing in the United King-

dom, boasts more than 7 years

of expertise in the software de-

velopment field. With a rich

background collaborating with

diverse organizations both in

Nigeria and internationally, He

currently serves as a tech coach

at Unlock Academy in the United

States. In this role, he has suc-

cessfully mentored and assisted

approximately 3,200 students

in enhancing their skills for a

successful career in software

development. Additionally, he

has contributed to the creation of

AI-powered applications aimed

at enhancing the productivity,

profitability, and cost efficiency

of small and medium-sized en-

terprises (SMEs).

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

TRANSPORT

22 TUESDAY 27 FEBRUARY 2024www.businessday.ng

Road crashes rise 24.23%

in quarter four - NBS

and minor cases increased

by 9.32 percent in the quar-

ter under review relative to

the preceding quarter.

THE total number of road

traffic crashes in quarter

four of 2023 increased by

24.23 percent to 2,717, from

the previous quarter three

which recorded 2,187, ac-

cording to the National

Bureau of Statistics.

NBS in its recent Road

Transport Data Q4, the

total number of crashes

decreased by 3.12 percent

from 3,617 in quarter four

of 2022 on a year-on-year

basis.

Of all crashes, serious

cases stood top at 1,772 in

quarter four of 2023 com-

pared to fatal and minor

cases with 687 and 258 re-

spectively.

According to NBS, the

three categories of cases

recorded an increase, fatal

crashes increased by 29.13

percent, serious crashes

increased by 24.87 percent

NBS stated that a total

of 1,104 males were killed

in quarter four of 2023, ac-

counting for 83.45 percent

By Amaka Anagor-Ewuzie

of 1,323 persons killed,

compared to 219 females

killed, which represents

16.55 percent of the people

These three minivans are suitable

for transport business in Nigeria Carloha excites Nigerians with a

range of auto innovations

WITH the current economic

situation in the country,

many families are facing a

cash crunch and other situ-

ations that are pushing peo-

ple into serious hardship.

This has made it very

important for people to

have multiple streams of

income to be able to pay the

piling bills and deal with

soaring prices especially

given a situation of accel-

erating inflation.

Transport business is

one of the business ideas

where people can raise

daily income to put food

on their table. It could be

car hire, taxi business or

carpooling. Transportation

is good business because

people must move from one

place to another especially

from home to work or their

business centres to money.

This makes transport an

essential service which

people must subscribe to.

However, in deciding

the car to buy for your

transport business, it is also

important to buy cars that

are fuel efficient, strong for

Nigerian roads, spacious/

comfortable for passengers

and their spare parts are

easily accessible anywhere

in Nigeria.

Therefore, if you are

considering going into the

transportation business

as a side hustle, you may

need to get one of these

three cars:

IT was a moment of ex-

citement at the just con-

cluded Lagos Motor Show

as Carloha Nigeria, the

authorised dealer of Chery

vehicles, offered Nigeria’s

auto lovers a firsthand ex-

perience with a wide range

of new cars from Chery.

Chery, which stood out

among a host of other au-

tomobile companies, came

to the show with a range

of the latest Chery brands

that excited auto lovers

at the two-day event and

they include the Arrizzo

5, Tiggo 2, Tiggo 4, Tiggo 7

Pro, and Tiggo 8 Pro.

To excite attendees, the

organisers treated people

to a feast with exciting side

attractions such as a drive-

in event, motor stunts

featuring antique cars,

and Chery’s innovative

experiential marketing

By Amaka Anagor-Ewuzie By Amaka Anagor-Ewuzie

Toyota Sienna

The Toyota Sienna is a

top-rated minivan in Nige-

ria, known for its reliabil-

ity, durability, and safety

features. It is a spacious ve-

hicle that can comfortably

seat up to eight passengers,

making it an ideal option

for transport business.

The Sienna comes with

a 3.5-liter V6 engine that

delivers 296 horsepower

and 263 lb-ft of torque.

It has a fuel economy

of 11.7 km/litre, making it

an economical option for

transport business. The

Sienna’s interior is well-

crafted, with comfortable

seats, a user-friendly in-

fotainment system, and a

spacious cargo area. It also

comes with advanced safety

features like a rearview

camera, blind-spot moni-

toring, and adaptive cruise

control.

Honda Odyssey

Another minivan that

can serve your commer-

cial transport needs is the

Honda Odyssey. It is an-

other popular minivan in

Nigeria, known for its reli-

ability, fuel efficiency, and

safety features.

It is a spacious vehicle

that can comfortably seat

up to eight passengers. The

Odyssey comes with a 3.5-li-

tre V6 engine that delivers

280 horsepower and 262 lb-ft

of torque.

It has a fuel economy

initiative.

As a forward-thinking

company, Chery pledged

its commitment to sustain-

ability by showcasing eco-

friendly models and initia-

tives aimed at reducing the

environmental impact of

transportation.

Visitors to Chery’s

display at the show were

treated to an immersive

experience, where they

could explore the brand’s

offerings up close and

learn about the latest ad-

vancements in automotive

technology.

The company also re-

affirmed its position as

a leader in the Nigerian

automotive market, set-

ting new standards for

innovation, quality, and

customer satisfaction, and

looks forward to build-

ing on the success of its

participation in the Lagos

Motor Show by continuing

of 11.3 km/litre, making it

an economical option for

transport business. The

Odyssey’s interior is well-

crafted, with comfortable

seats, a user-friendly in-

fotainment system, and a

spacious cargo area. It also

comes with advanced safety

features like a rearview

camera, blind-spot moni-

toring, and lane departure

warning.

Toyota Picnic

Another very good

minivan to consider for

your transport business

is the Toyota Picnic. It is

a reliable minivan that is

widely used in Nigeria for

transport business. It is

known for its reliability,

durability, and practicality,

making it a popular choice

for transport business in

Nigeria.

The Picnic comes with

a 2.0-litre 4-cylinder engine

that delivers 155 horsepow-

er and 142 lb-ft of torque. It

is a spacious vehicle that

can comfortably seat up to

seven passengers.

It has a fuel economy

of 10.3 km/litre, making it

an economical option for

transport business. The

Picnic’s interior is well-

crafted, with comfortable

seats, a user-friendly in-

fotainment system, and a

spacious cargo area. It also

comes with advanced safety

features like airbags, anti-

lock brakes, and a rearview

camera.

to engage with customers,

partners, and stakeholders

to drive positive change in

the automotive industry.

Chery’s participation

at the show underscores

its commitment to inno-

vation, excellence, and

customer satisfaction. The

brand has continued to set

new standards in the auto-

motive industry, offering

a wide range of vehicles

that combine style, perfor-

mance, and affordability.

Meanwhile, the com-

pany says it offers a war-

ranty of six years/200,000

km whichever comes first,

and a six-year free main-

tenance package for the

purchase of any Chery

models towards making

vehicle ownership easy

and affordable.

Also, Carloha said it has

a state-of-the-art workshop

with qualified engineers

and technicians to ensure

adequate aftersales servic-

es to all Chery customers.

The event was declared

opened by Mohammed

Dantoro (Kitoro IV), Mai

Borgu, Emir of Borgu

Kingdom in Niger State,

whose presence added a

touch of royalty and pres-

tige to the occasion, setting

the stage for a remarkable

showcase of automotive

excellence.

Other automotive tech-

nologies that were on dis-

play at the show include

Jetour, Toyota, JAC, Fiat,

Seclev, and Suzuki.

killed.

Also, a total of 6,929

males were injured during

the period, indicating 76.01

percent of 9,116 injured

persons compared to 2,187

females injured, which rep-

resents 23.99 percent.

NBS further stated that

a total of 4,195 vehicles

were involved in road traf-

fic crashes in the quar-

ter under review, higher

compared to the previous

quarter which recorded

3,371 vehicles, indicating

an increase of 24.44 percent.

The North-Central re-

corded the highest number

of crashes within the period

with 905 crashes, followed

by the South-West with 650

crashes, while the South-

South had the least with 141

crashes.

Similarly, the North-

Central recorded the high-

est number of casualties

with 3,152 persons, followed

by the North-West with

2,550 persons, while the

South-South recorded the

least with 412 persons.

MARKETING

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

By Chisom

By Daniel Obi

PLAYERS in Nigeria’s ad-

vertising space have joined

stakeholders in other sec-

tors to advocate for the

elimination of multiplicity

of informal taxes.

To curb the phenom-

enon which has put pegs on

businesses, the advertisers

in a communiqué, emanat-

ing from their National

Advertising Conference

2023 in Abuja called for

enhancement of tax system

and harmonisation of tax

administration leveraging

technology and big data.

While there could be

administrative burden to

comply with various offi-

cial taxes, high prevalence

of informal taxes described

as ‘nuisance taxes’ by ex-

perts on mobility of goods

and vehicles is really wor-

risome and a burden to

business.

The conference which

also looked at the current

and imperative for reforms

suggested the prioritisation

of government spending to

address multi-dimension-

al poverty and re-classify

budgeting based on human

capital development, infra-

structure and overheads.

On economic impact of

advertising in the Nigerian

economy, the conference

resolved to foster collabo-

ration and synergy among

professionals leveraging

the diverse value contrib-

uted across sectors with

the objective of achieving

a national goal of $2 trillion

by 2030.

The conference which

was attended by major

players from various sec-

tors of the advertising pro-

fession and government

officials agreed on the need

to initiate a nationwide

story-telling campaign that

would encourage ordinary

Nigerians to share their

personal stories that reflect

the positive aspects of Nige-

ria’s identity and to utilise

various platforms to create

a groundswell of authentic

narratives. The conference

also emphasised the need

for cultural sensitivity in

content creation and great-

er infusion of Nigerianess

in marketing communica-

tion content.

The conference also

resolved to implement a

comprehensive marketing

communication for SMEs

to address the industry

specific needs.

Multiplicity of taxes in informal

sector worries advertisers

Wemabod completes signing of N50bn bond

WEMABOD Limited, a

Nigerian real estate solu-

tions provider, founded 62

years ago, has begun the

process to raise N50 billion

through bond issuance to

finance construction of

commercial and residential

developments in Lagos.

The management and its

partners completed the

signing last week.

The N50 billion which

will be raised in series is

starting with N4 billion

bond issuance to finance

the construction of mixed-

use development of Unity

House in Lagos that will

include office space and res-

idential apartments. The

company created Wema-

bod Financing SPV Lim-

ited (“WFSL”) to execute

the earmarked real estate

and property development

projects. This is to ensure

transparency. The SPV is

comprised of independent

trustees.

Speaking at the signing

ceremony in Lagos, Yemi

Ejidiran, Chief Executive

Officer of Wemabod said

the first series of the funds

would be used to support

the development of Unity

House at 37 Marina from

pure commercial rental to

a mixed-use property.

The Unity House is a

21 storey building and the

new construction accord-

ing to Ejidiran is one of

the kinds in Central Busi-

ness District anywhere in

Nigeria. He said 15 floors

of the building will be con-

verted to residential floors

and it has been designed

by consultants to accom-

modate one-bedroom and

two- bedroom suits.

In addition to the re-

development of the Unity

House, the other funds

will also be used for the

development of a mixed

development property that

will house a mall and other

recreational facilities in

Ikorodu and other parts of

Lagos.

He said the idea behind

the project and more to

come is to promote resi-

dential development in the

central business district

of Lagos State which will

reduce commuting time for

workers.

Ejidiran said Wemabod

is “using this as a spring-

board to commence the

regeneration of central

business districts. Accord-

ing to him, ”this project is

very critical at this point

in the nation’s life know-

ing well the policies of the

Federal Government which

has affected where people

work and live.

“It is critical for inves-

tors to take advantage of

the opportunity that this

development will bring.

The benefit is that people

can stay close to where they

work”, he said.

Olu Abayomi Sanya,

Managing Director of

Goldblanc Management

Associates, GMA, finan-

cial adviser to Wemabod

company and the leading

issuing house explained

that they are giving a range

of between 17.5 percent and

18.5 percent to the first of

the series bond. “This was

done because the FG three-

year bond is 16.5 percent.

They added 150 basis point

above FG bond”.

On the importance of

the bond to construction,

Sanya said this is what

realtors should be doing be-

cause construction financ-

ing is always a difficult

thing to do.

While commending the

initiative of Wemabod to

convert some buildings in

Central Business District

to mixed-use, he said some

people want to live closer

to where they work. “The

direction Wemabod is go-

ing is the direction to go as

it is done in major cities. All

the dilapidated structures

in Marina could be recon-

structed and put back to

the market for people to live

and work”, he said.

Group develops app to monitor

real implementation of

governors’ campaign promises

READY To Lead Africa

(RTLA), an ecosystem of

emerging young African

leaders, has unveiled the

‘FollowThePromises’ web

and mobile app aimed at

tracking the implementa-

tion of campaign promises

of elected officials, especially

governors.

Speaking at the unveiling

event recently in Abuja, the

Global President, RTLA,

Godbless Otubure, said

that the board of RTLA had

begun a revolution by creat-

ing a form of e-governance

and e-democracy in Nigeria.

According to him, the

app is aimed at promoting

transparency, accountabil-

ity and citizenship participa-

tion in the socio-economic

development in six states of

the six geo-political zones in

Nigeria. He listed the pilot

states as Sokoto, Akwa Ibom,

Plateau, Ekiti, Gombe and

Ebonyi.

He said the event was to

enlighten the public on the

functionality of the app; re-

vealing how government of-

ficials could be monitored to

fulfill the promises made to

their citizens upon election.

“Today, what we are do-

ing here is the unveiling

of the followthepromises

mobile and web application.

“The goal is to track the

promises made by governor-

ship candidates during their

last elections and for the last

couple of months that they

have been sworn in, we are

following the promises that

they made, vis a vis , their

manifestos.’’

Otubure added that his

team was working with peo-

ple who lived in every local

community of the six states

to get factual data on the

happenings in their local

communities.

“We are working with

people who live in every

local government of these

states. Gone are the days

when governors finish their

tenure and then come up

with a document of what

they have done.

“This time, every day,

the people who live in these

communities are constantly

updating us through our

mobile apps; tracking eve-

rything that these governors

are doing in the states.’’NAN.

…To convert Unity House to mixed-use apartments

By Daniel Obi

Airtel Nigeria moves to transform

multi- billion digital advertising

with new initiative

AS advertising method

evolves, Airtel Nigeria has

introduced a platform that

will revolutionise audience

engagement leveraging its

robust data.

The platform, Airtel

Ads enhances connection

between consumers and

advertisers in a seamless

interaction with data in-

fused Artificially Intelligent

generated information.

Introducing the product

in Lagos last weekend, An-

thony Shiner, Group Chief

Commercial Officer of Airtel

Africa said Airtel Ads is

designed for media agencies

and businesses of all sizes,

offering focused audience

targeting using Airtel’s rich

database of customer data

and their spending behav-

iors, coupled with the state-

of-the-art Intent.ai platform.

“We have created differ-

ent platforms and ways of

targeting, so that advertisers

can track the performance of

their campaigns and be sure

that the people they are talk-

ing to are exactly the people

they want to talk to, when

and where they want to talk

to them

“We are going in to adver-

tisement space to reach con-

sumers using our platforms

and data. We are using our

platform and privacy of cus-

tomers is paramount and we

are connecting customers

and advertisers together”,

Shiner said.

The initiative by Air-

tel in conjunction with its

partners - INTENT.AI and

fonYou allows play of adver-

tisement and the customer

chooses whether to listen

and thereafter continues

their conversation for anoth-

er one minute or chooses to

decline. They are rewarded

if they say yes, says Anthony

Shiner. He said “Advertising

is evolving, and shifts in data

policies are presenting new

challenges”. According to

him, “Airtel Ads is a game-

changer, offering a unified

solution across data sets and

reaching a precisely segment-

ed audience, unrestricted by

category or budget.”

Airtel Ads taps into Telco

and Wallet data, targeting

both the digitally engaged

and those traditionally ex-

cluded from the digital realm

in Africa, including 2G and

feature phone users. This

platform is designed for me-

dia agencies and businesses

of all sizes, offering focused

audience targeting using

Airtel’s rich database of cus-

tomer data and their spend-

ing behaviors, coupled with

the state-of-the-art Intent.ai

platform.

“We understand the need

for a platform that provides

greater value and reaches

the unreachable,” says Alex-

andr Yesayan, Co-Founder of

Intent.ai.

By Daniel Obi

ACROSS THE STATES

24 TUESDAY 27 FEBRUARY 2024www.businessday.ng

INVESTMENT

ReelFruit inaugurates $2.5m dried

fruit processing plant in Ogun

REELFRUIT also known

as Nature’s Bounty Health

Products Limited, has inau-

gurated a $2.5 million, 800

metric tons capacity, dried-

fruit processing factory,

which is the largest dried

fruit processing plant in the

Country, in Abeokuta, the

Ogun State Capital.

The inauguration of the

dried fruit processing plant

was borne out of ReelFruit

Management’s desire to re-

duce post-harvest losses of

agricultural produce, espe-

cially fruits, and empower

farmers across the Country,

particularly in Ogun State

and its environs.

BusinessDay reports that

the $2.5 million dried-fruit

processing facility located

in Abeokuta was jointly fi-

nanced by the United States

Agency for International De-

velopment (USAID), Alitheia

Identity Fund and First City

Monument Bank (FCMB).

Speaking at the inaugura-

tion which was held recently

in Abeokuta, Affiong Wil-

liams, the CEO of ReelFruit,

said the inauguration of the

dried fruit plant was a ful-

filled dream as it would boost

agriculture and agribusiness

in the Country; empowering

farmers and curbing increas-

ing post-harvest losses.

She said, “Today marks a

momentous occasion in the

history of our company.

“We are proud to have

commissioned the largest

dried fruit factory in Nigeria,

which serves as a testament

to my long-term unwavering

belief in Nigeria’s agricul-

tural and manufacturing

opportunity.

“We are going to process

our range of dried fruits at

scale, to serve customers

across the country, as well

as sell ‘Made in Nigeria’ to

the rest of the world, creating

hundreds of jobs, and posi-

tively impacting farmers.”

Earlier, Sarah Werth, US-

AID Nigeria’s Deputy Mis-

sion Director, declared that

USAID’s investment in Nige-

rian economy especially in

agriculture and agribusiness

spanned 25 years, including

its in investment in ReelFruit,

which is a deliberate effort of

USAID to ensure that Nigeri-

an farmers are empowered in

terms of funds and necessary

agronomic trainings.

“In a world grappling

with climate change and

protracted conflict, the im-

portance of food security

cannot be overstated. USAID

stands in solidarity with our

Nigerian partners, such as

Nature’s Bounty, as they

tackle the root causes of

hunger and poverty.

“With a $500,000 grant

from USAID’s West Africa

Trade and Investment Hub,

Nature’s Bounty supported

350 smallholder farmer net-

works across eight states

in Nigeria—Kaduna, Oyo,

Edo, Ondo, Adamawa, Ekiti,

Niger, and Lagos. Farmers

received training on good

agronomic practices and es-

tablished a direct channel for

purchasing fresh produce.

“The impact of this part-

nership extended even fur-

ther as Nature’s Bounty

leveraged an impressive

$2,000,000 in private sector

funding, which led to this

state-of-the- art processing

factory”, she said.

But, Governor Dapo Abio-

dun declared Government’s

intention to further create

enabling environment for

businesses to thrive in the

State with unhindered ac-

cess to both agricultural

and industrial land as well

as the availability of skilled

and semi-skilled labour

for would-be investors in

the State, saying all efforts

would be made to boost in-

dustrialization and agribusi-

ness in Ogun State.

By Razaq Ayinla

By Anieok Udonquak, Uyo

L-R: David Oyejide, registrar, Trinity University; Samuel Olatunji, pro-chancellor and chairman of council; John Obaro, group managing

director, SystemSpecs Holdings Limited; Achenyo Idachaba-Obaro, founder, MitiMeth; and Nike Akande, former minister of industry, at the

conferment of honorary doctor of science degree on Obaro during the Trinity University Convocation Ceremony, held in Lagos on Friday.

HEALTH

Ogun boosts healthcare delivery with provision

of consumables, training of workers, others

AS part of measures to en-

sure successful implementa-

tion of Primary Health Care

Under One Roof (PHCUOR)

in Ogun State, the State Gov-

ernment says it will invest

in the training of health

workers, ensure provision

of essential commodities

and availability of drugs,

towards achieving global

health practices in health-

care delivery.

PHCOUR is a policy doc-

ument, introduced by the

National Primary Health

Care Development Agency

(NPHCDA) and approved

by the National Council on

Health in 2011, to reduce

fragmentation of all services

under one Authority.

Tomi Coker, Commis-

sioner for Health, gave the

assurance in Abeokuta,

during a meeting organised

by the Primary Healthcare

Development Board for Lo-

cal Government Chairmen,

Supervisors for Health and

Local Government Health

Secretaries, stating that gov-

ernment was passionate and

focused on achieving robust,

efficient and effective pri-

mary health care delivery.

Coker noted that efforts

were geared towards solv-

ing challenges faced by Pri-

mary Healthcare Centres

(PHCs), with the notion of

incorporating Local Gov-

ernment Chairmen for ef-

fective implementation of

the programme, adding that

the initiative would make

health workers in local gov-

ernments to be competent in

the discharge of their duties.

“We will be investing

in training of our health

workers; we will also in-

vest in ensuring essential

commodities and drugs are

available”, she said.

The Commissioner how-

ever assured of continuous

upgrade of PHCs across the

state with modern equip-

ment, stressing that qualita-

tive services at the centres

would be accessible and

affordable.

Speaking on the functions

of the Local Government

Chairmen, Coker explained

that there were six Health

Authorities in each Local

Government, headed by the

Chairman, who would co-

ordinate and ensure health

workers in his local govern-

ment comply with guidelines.

Babatunde Emilola-

Gazal, Chairman, Ijebu Ode

Local Government, charged

his colleagues to brace up to

the responsibilities assigned

to them, in achieving the

objectives of PHCOUR.

COMPANY & ALLIED MATTERS

UC Rusal to contest shareholding

claims over ALSCON

UC Rusal, the major-

ity shareholder of the Alu-

minum Smelting Company

of Nigeria (ALSCON) in Ikot

Abasi, Akwa Ibom State has

vowed to contest any claim

affecting its title to share in

the company.

This is as largest share-

holder expressed sadness

over the false statement

claimed to have been delib-

erately published in various

news media to discredit it as

the major stakeholder in the

company.

A statement by Dmitry

Zavyalov, Managing Direc-

tor, made available to the

media, said UC Rusal was

currently negotiating with

Nigeria Government on

resumption of operation at

ALSCON.

The statement further

stated that neither the ALS-

CON nor UC RUSAL was

party to the proceedings of the

Supreme Court ruling on the

26th of January, 2024 which

ruled in favour of BFIG

“ It came to our knowl-

edge that on 26 January,

2024, the Supreme Court of

Nigeria ruled in favour of

BFIG, claiming that the Bu-

reau of Public Enterprises

failed to comply with the

decision of the Supreme

Court of 2012. Neither ALS-

CON nor another company

of UC RUSAL group is party

to the these proceedings.

UC RUSAL, through its

subsidiaries, continues to be

the majority stakeholder of

ALSCON and fully exercises

its right over the company.

“UC RUSAL will vigor-

ously contest any claim

affecting its title to share

in ALSCON. As of this day,

UC RUSAL is continuing

negotiations with the Gov-

ernment of Nigeria on re-

sumption of operations at

ALSCON.

“The restart is subject to

Government’s guarantee of

uninterrupted gas supply

at a price acceptable for the

project economics and is

dependent on ensuring the

safety and stability of the

operational process by all

involved parties.

“BPE representing the

Government being the mi-

nority shareholder of ALS-

CON is well informed about

the current state of the plant

by way of participating in

the regular board meetings.

“In the absence of the op-

portunity to get acquainted

with the full text of the Su-

preme Court decision deliv-

ered on 26 January, 2024, UC

RUSAL shall not comment

on rumours.

“Deliberately false state-

ments published in various

media manipulate facts and

public opinion which effec-

tively prevent UC RUSAL,

as the majority shareholder

of the ALSCON, from doing

business in Nigeria and the

mutual efforts of UC RUSAL

and the Government aimed

at restart of production are

discredited

....as Abiodun pledges more support for industries

Enugu upgrades Agwu school of

midwifery to college of nursing sciences

IN compliance with the

directive of the National

Board for Technical Educa-

tion (NBTE) and the Nurs-

ing and Midwifery Council

of Nigeria (NMCN), Gover-

nor Peter Mbah of Enugu

State has approved the up-

grade of School of Basic Mid-

wifery Awgu, built in 1957

to Enugu State University

of Science and Technology,

College of Nursing Sciences

after 67 years.

Governor Mbah, who

was commended by the

Awgu traditional rulers,

religious leaders, Awgu De-

velopment Unions and other

stakeholders for his zeal and

interest in the development

of Awgu General Hospital

and School of Midwifery,

noted that the upgrade was

necessitated by the Author-

ity directive and current

trends in the Health Sector.

The governor, who was

represented by chief medi-

cal director of Enugu State

University of Science and

Technology( ESUT,) said the

interventions in the institu-

tion became necessary so as

to avoid its closure.

Governor Mbah how-

ever commended Umuada

Awgu for their support.

He said the National Board

for Technical Education

(NBTE) had drawn their

criteria for accreditation

and the School had migrated

to a College that would offer

Ordinary National Diploma(

OND) and Higher National

Diploma(HND) in Nursing

and anybody who gradu-

ates from the College will go

for National Youth Service

Corps (NYSC).

He said, “The College

would have been closed

down if not for those inter-

ventions, which earned the

College Accreditation and

upgrade. The stone laying

of 100 bedded hostel is a

fundamental requirement

for this institution.

“Infact, one of the basic

things that could have de-

nied us the elevation from

the Dchool of Basic Mid-

wifery to College of Nursing

Sciences could have been

hostels but because we have

one or two buildings that

can start off the College, it

was granted to us.

EDUCATION

By Regis Anukwuoji, Enugu

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

By Sikirat Shehu, Ilorin

ACROSS THE STATES

We’re yet to receive directive to

share seized rice in Kwara - Customs

THE Nigeria Customs Ser-

vice, Kwara State Com-

mand has said that the

Command is yet to receive

any directive from the

Headquarters of Customs

to begin the sales of repack-

aged 25kg of rice to the

members of the public.

A statement by Zakari

Chado, Public Relation Of-

ficer of the Command, said

“we want to clarify that

we’re yet to receive direc-

tives from our Headquar-

ters, Abuja on modalities

to share the seized items.”

The Kwara State Com-

mand however assured the

residents that the populace

would be adequately in-

formed when they get direc-

tive, adding that every stra-

tum of the society would be

carried along in order to

ensure that residents of the

State benefit from the Fed-

eral Government’s gesture.

Meanwhile, FM Ojeifo,

the new Customs Area Con-

troller of the Kwara State

Command has enjoined of-

ficers to imbibe the culture

of transparency and profes-

sionalism while discharg-

ing their duties.

He equally warned that

any act of negative con-

ducts among officers would

not be tolerated, assuring

them to work assiduously

towards consolidating the

feat attained by his prede-

cessor.

The new Customs boss,

who replaced KD Ilesanmi,

the outgoing Controller of

Customs, reiterated that,

the Federal Government

fiscal policy on border clo-

sure is still in force and

Kwara land border is not

exceptional. The task to

effectively secure our land

borders remains his utmost

priority.

HIGH COST OF LIVING

By Nkechinyere Oginyi, Abakaliki

By Jacob Akintunde, Akure

REVENUE

Borno internal revenue service extends tax net, generates N2.8bn

THE Borno State Internal

Revenue Board (BSIRS)

says it generated N2.8 bil-

lion internally-generated

revenue (IGR) between

January 1 and February

15, 2024.

Bello Ibrahim, Chair-

man, Borno State Reve-

nue Board, stated this at a

Maiden Press Conference

of Board in the year in

Maiduguri, Borno State

Capital at the weekend, said

the revenue board also gen-

erated N19.4 billion from

Ministries, Departments

and Agencies of State Gov-

ernment as well as the 27

local Government Councils

of the State in 2023.

“The Revenue Service

collected N1.7 billion reve-

nues in January while N1.1

billion had been generated

from February 1 to Febru-

ary 15, 2024”, he said.

According to him, such

successes are achieved as

a result of the newly in-

troduced reform system

and strategies he brought

into the Service for zero

tolerance, transparency

and accountability in the

entire process in the overall

interest of the state gov-

ernment and not to witch

hunt anybody neither being

malicious.

“The Board has also

digitalized and mapped

out all it’s revenue gener-

ating centers and screened

all the locally generated

revenues collectors and

ad hoc staff by way of

cross examining the total

number engaged to mobi-

lize, monitor and collect

revenues physically by

the past management of

the board, dropping about

25% of the casual staff

to sensitize the staff and

sanitize the system.

“The tax payers’ con-

fidence and trust has in-

creased alongside regular

payment of their taxes in

all the three categories

of tax payments compris-

ing personal tax, business

premises tax and trade tax

which are all being paid

in iinstallments at ease

and grace or relief of three

times per annum with 50%

first or initial tax pay-

ment and subsequently,

25% payment twice before

the year runs out and to

begin a new payment pro-

cedures”, he said.

REGIONAL DEVELOPMENT

Southeast development commission

will accelerate economic growth in

our region - Tinubu’s aide

CHIOMA Nweze, Senior

Special Assistant to Presi-

dent Tinubu on Commu-

nity Engagement (South

East), has said that the

South East is a melting

pot of commerce and with

the passage of South East

Development Bill eco-

nomic growth and devel-

opment of the Region will

be accelerated.

While commending the

Senate for passing the Bill

seeking the establishment

of the South East Develop-

ment Commission, Nweze

noted that the passage of

the Bill was timely and es-

sential for proper integra-

tion of the South Eastern

enclaves in the political

equation and scheme of

things.

According to her the

legislation represents a

landmark institutional

development that would

oil the wheels of devel-

opment in South East

region.

“This Bill essentially

aims to establish a Com-

mission for the South

East Region that will be

charged with the respon-

sibility among others, to

receive and manage funds

allocated by the Federal

Government for the con-

struction, reconstruc-

tion and rehabilitation of

roads, houses and other

infrastructural damages

suffered by the Region

and the need to tackle the

ecological problems and

any other related environ-

mental or developmental

challenges in the South-

east states and for related

matters.

“We are particularly

gratified by the action of

the Senate under the lead-

ership of Senator Godswill

Akpabio and concomitant

passage of the bill by the

House of Representatives

earlier on.

“Both chambers de-

serve praise for answer-

ing the call of humanity

and history and rising to

the occasion. It is also the

desire and plea of South

East people that the Bill

when transmitted to Mr.

President will receive

quick assent to enable

the Commission activate

the full benefits it bodes

for the South Eastern

people.

“It’s a very important

Bill passed by this 10th

Senate, this Bill addresses

all the fears of our broth-

ers and sisters from the

South East. I want to say

congratulations. I pray

this commission will

bring a lot of develop-

ment to South East and

we will assist you to stop

any form of agitation and

bring peace to your re-

gion. When harmonized,

it will addressed the fears

of the south East.

“South East is a melt-

ing pot of Commerce and

with the birth of this bill,

accelerated economic de-

velopment is also guar-

anteed.

“The journey to the

passage of this bill has

been a very long but fruit-

ful one. The roles played

by all stakeholders on the

road to the passage of the

bill will also be remem-

bered too”, she said.

AGRIBUSINESS

Group tasks govt, investors on investment

in cocoa production to boost economy

GOVERNMENT at all lev-

els have been called upon

as a matter of urgency

to save cocoa production

from extinction and en-

hance the capacities of

farmers to contributing to

diversification efforts of

the Federal Government.

Stakeholders, at a two-

day awareness campaign

hosted to eliminate child-

labour practices and their

negative impacts on co-

coa farmers in Idanre and

Ifedore local government

areas of Ondo State, how-

ever, said that cocoa is a

good source of national

wealth apart from oil. Un-

like petroleum, they said

its price remains stable at

the international market.

BusinessDay reports

that the awareness cam-

paign, a Child Labour

Education and Resilience

(CLEAR) project was or-

ganized by the Lutheran

World Relief and funded

by Evangelical Lutheran

Church in America (ELCA)

in partnership with the

Ondo State Government,

Cocoa Farmers Associa-

tion of Nigeria (CFAN),

Federal Ministry of Labour

and Employment and Inter-

national Labour Organisa-

tion (ILO).

In his introductory re-

marks, the Chief of Party,

Lutheran World Relief,

Nene Akwetey-Kodjoe said;

“we need to eradicate using

of children for labour, what

we are saying is that hard-

labour is not allowed, we

need to do it right.”

Akwetey-Kodjoe, who

was represented by Fo-

luso Wilson, the Human

Resources Manager, Lu-

theran World Relief, main-

tained that; “we want those

children out-there to go

back to school because edu-

cation is a general knowl-

edge that will grow our

brain.”

Adeola Adegoke, presi-

dent of the Cocoa Farm-

ers Association of Nigeria

(CFAN), in his goodwill

message, said cocoa pro-

duction is now alternative

to oil with the current

economy hardship Nigeri-

ans are facing.

Adegoke said; “the prob-

lem we are having today

is because we are mov-

ing from production to

consumption. Our cocoa

is the prospect that can

guarantee our push from

consumption to produc-

tion in Nigeria. Cocoa still

remains what can actu-

ally be the backbone of our

economy with what we are

seeing now in this country.

“For example now, Idan-

re happens to be the singu-

lar local government area

that produces the highest

cocoa in Nigeria and it

shows the potential for our

teeming youths to go to sus-

tainable cocoa production

in this country.”

In his brief presentation

on CLEAR project, Siji

Ofoesuwa, the Programme

Technical Advisor, Lu-

theran World Relief, said

the goal of the project was

to significantly reduce the

prevalence of child labour

practices among cocoa

farmers in the state.

According to Ofoesuwa,

schools that were approved

for the project in the two

local government areas in-

cludes; Ala Comprehensive

High School Ala-Elefosan,

Oniseere Community High

School Ofosu, Olofin Gram-

mar School, L.A Primary

School Ita-Loorun, L.A

Primary school Gbalegi,

Alasagba Community High

School Ibuji, United Com-

prehensive High School

Ikota, Ayo Grammar

School Ibulesoro, Com-

munity Primary School

Molete and L.A Primary

School Ajebamidele.

Olayemi Fakehin, the

Deputy Director, Guidance

and Counseling unit of the

Ondo State Ministry of Edu-

cation, Science and Tech-

nology said Government

had put in place a compre-

hensive plan to eliminate

child labour in the state.

According to her, the

comprehensive plans in-

clude; strengthening the

existing laws and policies

towards providing a great-

er protection for children

and harsher penalties for

those who exploit them for

labour.

By Ladi Jossy, Maiduguri

Shell sta󰀨 members at the 8th Sub-Saharan Africa International Petroleum Exhibition and Conference, where SNEPCo emerged the winner

of the ‘International Oil Company of the Year 2024’ award, which the organisers of the conference, Petroleum Technology Association of

Nigeria, handed out at the awards dinner.

Nestle, Eterna, Fidson, others cause

market’s negative start to new week

NIGERIA’S equities mar-

ket closed in the negative

region on Monday, con-

firming some analysts

expectation that the bear-

ish sentiment will persist

ahead of MPC decisions.

The Nigerian Exchange

Limited (NGX) All-Share

Index (ASI) and Market

Capitalisation decreased

by 0.09percent or N51bil-

lion, from preceding

trading day’s 102,088.07

points and N55.861trillion

to 101,995.21 points and

N55.810trillion.

“We still anticipate an-

other rocky trading week

this week, as market par-

ticipants look forward

to the first MPC meeting

for the year,” said Lagos-

based Vetiva research

analysts. They noted that

the market had recorded

positive sentiment on Fri-

day’s close as it appeared

“slightly stable following

the rate hikes in the fixed

income space.”

Stocks that caused the

market’s negative start to

new week are Nestle Nige-

ria, Eterna, Fidson, CWG

and Sunu Assurances.

Nestle share price

dropped most from

N1100 to N990, losing

N110 or 10percent, fol-

lowed by that of Eterna

which moved from a

high of N17.55 to N15.80,

shedding N1.75 or

9.97percent.

Fidson went down from

N16.80 to N15.15, shedding

N1.65 or 9.82percent of its

day-open valued. CWG

decreased from N6.80 to

N6.15, losing 65kobo or

9.56percent, while Sunu

Assurances dropped by

19kobo or 9.09percent,

from N2.09 to N1.90.

FBN Holdings, UBA,

Zenith Bank, Fidelity

Bank and Veritas Kapi-

tal Assurance were most

traded stocks on the

Bourse.

In 9,957 deals, in-

vestors exchanged

294,324,992 shares worth

N6.722billion.

“We anticipate the

bearish sentiments

amongst investors to per-

sist in the local equities

market given the recent

developments in the fixed-

income market.

“The impact of the high

yields in the fixed-income

market will continue to

drive sell-offs as investors

switch their asset classes

to less risky assets,” ac-

cording to Lagos-based

United Capital research

analysts.

They noted that other

headwinds to the equities

market are the uncertain-

ties surrounding interest

rate decision and the pos-

sible hike in Monetary

Policy Rate (MPR) by the

Monetary Policy Commit-

tee (MPC) at their meet-

ing scheduled for today

Monday, February 26 and

Tuesday February 27.

LIVE @ THE EXCHANGES

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

By Iheanyi Nwachukwu

THE NNPC E&P Limited/

Seplat Energy Joint Ven-

ture (JV) has graduated

331 teachers and 27 Chief

Inspectors of Education

(CIE) at the 2024 edition

of the Seplat JV Educa-

tion Summit and Seplat

Teachers Empowerment

Programme (STEP) grad-

uation ceremony for Edo

and Delta states.

The events, held in Be-

nin City, are hinged on

the Joint Venture’s con-

tinued quest to contribute

towards the improvement

of quality education in the

communities and states

where Seplat Energy op-

erates, and by extension

Nigeria. Public and pri-

vate school teachers were

beneficiaries of the pro-

gramme.

STEP is designed to pro-

mote teacher’s creative

thinking, provide training

on teaching applications

for Science, Technology,

Engineering, Arts and

Mathematics (STEAM),

provide leadership and

self-improvement train-

ing, allow for higher stu-

dent’s engagement, and

offer a well-rounded edu-

cation for recipients of the

programme. For this edi-

tion, which is the fourth, a

total of 358 teachers gradu-

ated from the programme

Seplat says joint venture STEP graduates

358 teachers in Edo, Delta State

and were presented with

requisite certificates.

The programme is tar-

geted at secondary school

teachers in public and pri-

vate schools in Delta and

Edo states, including the

communities where Seplat

Energy operates. It is a six-

month intensive training

programme which kicks

off with a four-day resi-

dential workshop aimed

to provide leadership and

self-improvement train-

ing, training on STEAM

modules and its applica-

tion to teaching. The teach-

ers are also provided with

STEAM gadgets and Apps

to support their delivery

of quality teaching in their

schools.

In his remarks, Sam-

son Ezugworie, Chief

Operating Officer, Seplat

Energy Plc lauded the gov-

ernments of Edo and Delta

states, and the NNPC for

earnestly working with

the management of Seplat

Energy to drive the STEP

initiative.

The commitment, he

said, showed that the or-

ganisations recognised

the problem facing the

education sector and the

need to confront it head-

on. “The country’s educa-

tion system today is not

where it should be, and

we understand its pivotal

role in development. If

the youths of this country

are not developed, there’s

a problem. This shared

drive among Seplat, our

senior partners, and the

state governments in the

areas we operate is what

propels us forward,” Ezug-

worie explained. He add-

ed: “To the teachers in the

room, you shape individu-

als, and you should take

pride in your work. I’m

sure your teachers would

also be proud to see you,

knowing you were once

their student, bringing

them a sense of satisfac-

tion. Always remember

that wisdom is the key.”

Chioma Afe, Direc-

tor, External Affairs and

Social Performance, ex-

plained that the educa-

tion value chain plays a

crucial role in shaping the

workforce and fostering

economic development.

Addressing the chal-

lenges within the educa-

tion value chain, especially

in the areas where Seplat

and NNPC operate, as well

as across the nation, Afe

said: “At the foundation of

the education value chain

lie primary and second-

ary education, crucial for

laying the groundwork for

future learning.

INSIGHT

IT is a welcome develop-

ment that the Senate re-

cently opened an investi-

gation into the alleged $2.4

billion foreign exchange

transactions pronounced

invalid by the Central

Bank of Nigeria (CBN)

from the outstanding $7

billion obligations.

Olayemi Cardoso, the

CBN governor earlier this

month, said that a foren-

sic audit of $7 billion of

overdue foreign exchange

transactions the bank

had been trying to clear

uncovered irregulari-

ties around $2.4 billion in

transactions.

It is hard to fault CBN,

but obviously, the out-

come of the probe by the

Upper Chambers will re-

veal the true situation in

the transactions by either

identifying the culprits

and bringing them to jus-

tice or validating some of

the transactions declared

invalid.

It is possible that some

of the transactions de-

clared invalid could have

resulted from unverified

or non-provisional docu-

mentation.

This position was un-

derscored by organisa-

tions like Social Integrity

Network (SINET), which,

in a report published in

Eagle Online, requested

that CBN reconsider

honouring the forward

contracts that are eventu-

ally found to be genuinely

backed up with proper

compliant documents for

utilisation against each

Letter of Credit opened

by the commercial banks

using the forwards as a

hedge.

While any action asso-

ciated with fake foreign

exchange transactions

could be regarded as eco-

nomic sabotage, it is ap-

propriate and welcome

that the Senate is stepping

in for a second look to pos-

sibly separate the wheat

from the chaff by perhaps

identifying the genuine

ones. It is also appropriate

that the Senate is wading

in on the lack of consulta-

tion with the manufactur-

ers before the amount was

invalidated.

The Senate probe,

which will eventually

identify those who are

guilty and perhaps ab-

solve some firms of blame,

will help to obviate the re-

percussions of the invali-

dated forward contracts

for some of the companies.

In the end, honouring

the forward contracts that

are eventually found to

be genuinely backed up

with proper compliant

documents will definitely

ease some of the pressures

experienced by the manu-

facturers, who are facing

a number of challenges

Re-evaluating the N2.4 bn

invalid forex transactions

By Daniel Obi

already.

“An average member

of MAN is subjected to

no less than 30 different

forms of taxes, fees, and

levies. The consequences

of the incidence of multi-

ple taxes are immense and

include the rising cost of

doing business and rapid

divestment in the manu-

facturing sector. These

issues combine to depress

demand, worsen job loss-

es, and increase the inci-

dence of poverty and low

revenue generation from

the sector,” MAN says in

a report. In addition to ep-

ileptic electricity supply,

poor road network, poor

water supply, and insecu-

rity about the distribution

of goods, other serious im-

pediments hampering the

growth of the manufactur-

ing sector in Nigeria in-

clude poor infrastructure

and inefficient port facili-

ties.

For an industry ana-

lyst, it is important to

identify the genuine com-

panies that are perhaps

wrongly grouped in the

invalidation, and that

is why the Senate probe

is considered crucial at

this time. Ordinarily,

the adverse effect of the

invalidation on all the

manufacturers, whether

genuine or not, will be dis-

astrous. This is premised

on the fact that the for-

wards have been utilised

to establish LCs for valid

Form M transactions at

rates within N600/USD,

and the repayments of the

obligations would have to

be done at N1,500/USD.

Due to the devaluation of

the naira, the invalidation

by the CBN has increased

the cost of transactions

by N900/USD for genuine

and non-genuine busi-

nesses. It is important

that the genuine ones be

spared from this huge

business loss.

The analyst further

argues that some of the

adverse effects of this

cancellation on genuine

companies and even those

who tendered wrong

documents for the forex

deals include a possible

increase in the unem-

ployment rate: Due to the

increased cost of opera-

tions, various companies

would be forced to down-

size their workforce. This

will lead to a high unem-

ployment rate within the

country.

Though the number of

those companies involved

in the invalidated $2.4 bil-

lion forex transactions is

not ascertained, it is obvi-

ous that the invalidation

would affect the manufac-

turing sector.

The industry is cur-

rently burdened by the

effects of fuel subsidy re-

moval and devaluation

of the naira, which have

led to a hyper-increase

in the cost of production.

With the cancellation of

forward contracts for any

genuine manufacturer

who has already utilised

it for LC establishments,

shipment, and costing of

products, it would be prac-

tically impossible to re-

cover this cost on current

production.

It is pertinent to state

that genuine business-

men and women across

the country borrowed

funds from commercial

banks, some with interest

rates as high as 30%, to se-

cure forex from the CBN

through their respective

commercial banks since

the CBN does not sell the

dollars to individuals di-

rectly. The same funds

were deposited with CBN

for the past 1 and a half

years for forwards allo-

cated, for which many of

them are declared invalid.

To the analyst, it is

important for the CBN

to re-evaluate this invali-

dation and ensure that

customers with valid ex-

port documentation are

exempted from the list of

invalid forward contract

obligations. This can be

ascertained by request-

ing documents to prove

that the funds were used

for importation.

This will help the CBN

separate genuine custom-

ers that have utilised the

forex allocation for legiti-

mate business from those

who may have diverted

the forex for other uses.

Daniel Obi, Editor,

Marketing and Brands,

BusinessDay Media

INFLATION and rising build-

ing materials prices are said

to have crippled construction

sites such that some develop-

ers have abandoned their pro-

jects. What is your story; how

are you navigating all these?

Rising cost of materials is a

major problem in the real estate

industry. Anywhere you turn

now you see developers pulling

out of sites, everyone is waiting

and praying to see what happens.

If nothing is done to curb this and

get things to a level of instability,

we would face a very major crisis

in the industry soon.

I started a project in the Epe

area of Lagos, October last year

and I bought a trip of sand for

sand-filling at the cost of 37,000

naira. Three months later in

January, I started a project in one

of my estates in Ibeju Lekki, Em-

erald Garden Estate and I bought

sand at the rate of 90,000. That’s

an almost 200% increase in price

in just three months.

This is the type we have not

experienced before. It’s a major

problem that must be tackled

head long; else there would be

serious problems. I can imagine

developers that have collected

money from clients with the

hope that they would build and

deliver in 2024. If you took money

when sand was 37,000 naira per

trip and now its 90,000 naira,

that means you may have to

spend over 100% more than you

budgeted to complete the project.

It’s a challenging situation and

something needs to be done as

soon as possible.

As a player in the luxury seg-

ment of the property market

where over 70% of the materi-

als are imported, how is the

crisis in the FX market affect-

ing your operation?

The free fall of naira is affecting

everyone and everything, but we

are hoping to come out of it soon. I

also hope that in days to come our

dependence on imported materi-

als and stuff should be revisited

so that we can begin to mitigate

some of these effects on the cost

of living. Imagine the shock when

you bought cement at 6,000 naira

today and go back the next week

to hear that the price is now 8,500

naira per bag.

Personally, I have had to halt

a lot of projects so that we can

watch what happens. We are

keeping hope alive seeing that

the government is doing some-

thing about it and we hope they

get a solution soon.

As a nation, I believe we need

to do something to reduce our

dependence on imported materi-

als; our nation is not a dumping

ground. The funny thing is that

the majority of these imported

materials can be produced in

Nigeria and exported abroad. The

70% you quoted in your question

where we gave people the op-

portunity to purchase Awele at

almost half the price for just a few

plots before the launch, and the

post launch price which takes ef-

fect immediately after the launch

of the estate on 23rd March 2024.

In Awele Residential, class

is important to us and we have

created two classes or sections

in the estate. The Odogwu plots

which 1,000 square meters are for

the real ballers who desire more

space to express their building

designs and Ijele plots which are

500 square meters for the Ijeles

who are on their way to becoming

an Odogwu.

How does Esso Properties en-

sure transparency and trust

in its dealings with clients,

considering the importance

of trust in the real estate in-

dustry?

We have been around for a num-

ber of years and we have a policy

in Esso Properties that we only

sell what we have. We have a

reputation as an organization

and we are for sure the best real

estate development company in

south eastern Nigeria.

The moment we launch our

buildings for sale, we give our

clients some form of guarantee.

We are planning to partner with

one of the major banks in Nige-

ria as our guaranteeing partner

who holds the funds. Clients will

pay to a designated account and

the bank will release funds in

tranches until we complete the

building as promised. We created

that to give our Diaspora market

some major form of guarantee

and trust to know we will deliver

on our promise.

With the seeming insecurity in

the South East, how will Awele

Residential thrive?

Awele residential will have 24/7

security both smart and others.

Infact, security is one of the

things that will be celebrated in

Awele residential as this class

of people that would live in the

estate is more particular about

security.

Aside from that, the South

East is not as insecure as the

social media makes it look. We

just celebrated Christmas and we

didn’t hear of casualties, despite

the mass number of people that

came in to celebrate Christmas.

It is safe in the east.

Also we are igbos, and we be-

lieve so much in our homeland.

We actually have a saying that,

Aku lue uno, Okwuo Onye kpata-

ra ya - which means, when wealth

gets home, it will announce who

owns it. No matter what happens,

our home is our home and we

cannot run away, I am calling on

my brothers all over the world

to bring our wealth home. It is

safe here beyond what the social

media shows us.

Shelter risks becomingluxury if nothing

is done to curb building materialprices

SMITH EZENAGU is the MD/CEO of Esso Properties Limited. In this interview with select property editors, he speaks on the effect of

rising inflation and building materials prices on housing projects. He also speaks on Awele Residential, his pet luxury project targeted

at Easterners with a knack for taste and class. CHUKA UROKO reports:

We will create rain water

harvesting technology which

is one of the known practices

in ancient Eastern Nigeria for

community use. Some of our

buildings will have green roofs

to help us achieve a completely

healthy luxury living space.

We will also create a strong

sense of community by includ-

ing features like farm market,

community gardens, pedestrian

friendly streets, well lighted

walking paths, community pool,

fitness centre, nursery and day

care centers.

To celebrate our culture, we

will have features like Communi-

ty Theater for weekend cultural

performances, museum and art

galleries in the most luxurious

and modern way possible. In Igbo

land, we like open space for even-

ing friendly sit outs and we will

have a botanical garden for even-

ing sit outs, a meditation garden,

and sports facilities in place. So,

Awele Residential is a place built

for the people that have taste

for luxury in the Eastern style.

Our green roof, solar system,

green streets were all carefully

designed to help achieve envi-

ronmental and energy efficient

standards.

Can you share insights into the

target demographic for Awele

Residentials and how the of-

ferings cater to their specific

needs and preferences?

Awele is built for anybody that

wants to live above average. It

is true that Easterners have a

culture that celebrates work

because we are the hardest work-

ers in this continent. That’s why

we also play hard. So we want

to achieve a relaxing, healthy,

luxury community for the upper

class, the Agba Ballers.

We accommodate those look-

ing for affordable housing with

other average properties we have

in the market like Summerview

Estate, etc. but Awele Residential

is for the Odogwu class. Every-

thing we are planning to build in

Awele will only be made possible

with the use of technology. We

have a feature called virtual in-

spection in Awele which enables

those in the Diaspora whether

United States of America, United

Kingdom or Canada to inspect

Awele in real time and tour the

estate as if he is there live.

We want our brothers and

sisters spread all over the world

to have an estate of pride where

they can buy their properties

and feel safe and proud, or buy

some of the buildings that will be

coming up in Awele and be able

to bring beck their friends and

colleagues from any part of the

world to come and experience.

We have three purchase cycles

for Awele Residential – Pre-

launch purchase that started on

the 26th of this month (February)

INTERVIEW

and others.

Can you elaborate on the in-

spiration behind the creation

of Awele Residential and how

it aligns with restoring the

ancient eastern aura?

I am from the eastern part of

Nigeria and whenever I visit

the east and look at the kind of

estates we are building, I realize

that much more still needs to be

done. We have very few estates

and even the few we have are so

normal, just the house and all.

So, I decided to create the kind of

estate that people will travel from

a distance, even the Diaspora to

come and see.

Secondly, there are things

associated with Easterners. We

have our unique architecture,

unique style, unique taste and

our way of defining luxury. So,

while developing the concept of

the estate, we decided to align

it with our definition of luxury

- hence restoring that ancient

Eastern aura.

What we want to achieve in

Awele Residential is a perfect

blend of modern luxury and cul-

ture. It is a very unique concept

and the first of its kind in Nigeria.

Anambra state is a take-off point

for the Awele Residential, but it

is not a project for Anambra state

alone. We intend to have Awele in

other Eastern states, including

Abia, Ebonyi, Enugu, and Imo.

Can you discuss the key ameni-

ties and facilities offered by

Awele Residentials and how

they contribute to enhancing

the overall living experience

for residents?

In Awele Residential, our key

focus includes the Igbo pride,

modern luxury, green spaces

and community centers. We have

residential space, commercial

space and recreational areas.

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

is actually too conservative, it is

actually over 80% because we

import over 80% of our building

and construction materials.

Imagine our doors for in-

stance, we use largely foreign

doors, we are the ones that export

the timbers abroad, they develop

the timber and produce doors,

then we import into Nigeria to

use. It’s funny. How can we be a

nation that exports raw materials

and imports finished products?

All we need to do is to make

the environment right for local

industries to spring up and begin

to cover these gaps.

Cement has become the lat-

est elephant in the house for

developers. Government and

manufacturers have set the price

at N8000/bag. Tell us about this in

relation to your business.

Cement is a very important

ingredient in construction, hence

whatever happens to cement as

it goes on to affect the entire real

estate and construction industry.

Apart from that, hardship is high

and a lot of the guys on the street

depend largely on the construc-

tion industry. Construction sites

all over Nigeria employ a major

percentage of these guys and with

developers pulling out of sites, it

means there is no job for them.

Once there is no job for these

guys, idle hands could be the

devil’s workshop.

Everybody is talking about

cement alone but it’s not just

cement because we have other

materials like rod, sand, etc. In

fact, if nothing is done to curb the

current prices of building materi-

als in Nigeria, we might get to a

point where shelter will become

a luxury and not a basic neces-

sity. Apart from the government

stepping in like they are doing to

curb these things, I believe this is

the time we explore alternative

buildings like wooden houses

TUESDAY 27 FEBRUARY 2024

28 www.businessday.ng

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

• PSP operators to receive 2000 tricycles for waste evacuation

NEWS

By Seyi John Salau

• as experts say food distribution unsustainable

By Cynthia Egboboh, Abuja

Why I sited $800m Geometric Power plant in Aba — Barth Nnaji

BARTH Nnaji, chairman of

Geometric Power Group,

has attributed the reason

he developed the $800m Geo-

metric Power Plant in Aba

to the prompting of Ngozi

Okonjo-Iweala and the late

James Wolfohnson.

The power plant commis-

sioned yesterday by Vice

President Kashim Shettima

is expected to ease the power

challenge faced over years by

clusters of small businesses in

Aba, the industrial hub of Abia

State, in South-East Nigeria.

Speaking at a recently

convened colloquium on

“Igbo Leadership and De-

velopment,” Nnaji linked

the origins of the Aba power

plant to the time when the late

James Wolfohnson, a former

president of the World Bank,

was called to Aba by Ngozi

Okonjo-Iweala, the former

minister of finance for Ni-

geria, to witness personally

the enormous economic and

technological potential of Aba.

He said, “After the visit

in 2004, the duo asked me to

consider building a 50-mega-

watt power plant in Abia

for manufacturers, both

big ones like the Star Paper

Mill and small ones like the

hundreds of excellent shoe-

makers and clothiers at the

famous Ariaria Market.

“They approached me

obviously because I had led

a small team of dedicated

Nigerian engineers and

entrepreneurs to build a

22-megawatt Emergency

Plant in Abuja in 2001 for the

supply of electricity to State

House, the NNPC headquar-

ters, the Abuja Business

District, and other places.

“I acceded to the request

by Okonjo-Iweala and Wol-

fohnson. What the two did

not realise was that my en-

thusiastic acceptance was

because the plant would be

located in Aba. This city has

POWER

a special place in my heart

and every person interested in

our country’s rapid progress:

It is the home of indigenous

manufacturing, innovation,

and entrepreneurship.

Nnaji emphasised his en-

thusiasm for Nigeria’s quick

development, beginning with

Ala Igbo, citing the region’s

tremendous technological

and economic potential and

the structural issues it has en-

countered since the end of the

Nigerian Civil War in 1970.

“Geometric Power Lim-

ited is making its contribu-

tion to help reclaim the old

economic days of the Great

Zik of Africa, M.I. Okpara,

and many others. Once Geo-

metric Power addresses the

electricity challenge in nine

out of 17 local government

areas in Abia State fully,

not even the sky will be the

limit of the attainments of

the people and government

of Abia State. Abia can set the

stage of development miracle

which has been waiting to

happen,” he said.

Nnaji also revealed that if

the 188-megawatt Geometric

Power Plant in Aba and the

Aba Power distribution com-

pany in Osisioma Industrial

Layout had been situated in

Ikeja, the Ilupeju Industrial

Estate in Lagos State, the

Agbara Industrial Layout in

Ogun State, or somewhere

in the vicinity of the Federal

Capital Territory of Abuja,

they would have been more

profitable ventures.

Nnaji also said, “The re-

turn on investment would

have been quicker and bigger

(in these locations). However,

we would have missed the

strategic reason for locat-

ing both the generation and

distribution arms of Geomet-

ric Power Group. Only the

investors and promoters of

Geometric Power would have

benefitted directly, but the

people and governments of

Ala-Igbo would be the losers.”

LASG, Jospong sign MoU

on waste management

THE Lagos State Govern-

ment (LASG), on Monday,

signed a Memorandum of

Understanding (MoU) with

the Jospong Group of Com-

panies, for effective and

efficient waste management

in Nigeria’s sprawling com-

mercial city.

“This partnership with

the Jospong Group, a leader

in environmental and waste

management services in

Africa, represents a great

leap forward in our com-

mitment to enhancing the

quality of life for all Lago-

sians through effective waste

management,” said Tokunbo

Wahab, commissioner for

environment and water re-

sources, who signed on be-

half of the state government.

According to him, the

challenges of solid and liq-

uid waste management in

Lagos are well documented.

He said the partnership was

about a shared vision for a

cleaner, healthier, and more

sustainable Lagos.

“Lagos, with its vibrant

population, bustling mar-

kets, and dynamic indus-

tries, generates substan-

tial amounts of waste that

require innovative, sus-

tainable management solu-

tions,” he said.

Wahab further said that

the collaboration with the

Ghanaian firm will focus

on technology, advocacy,

enforcement, and the pro-

motion of circular economy

innovations such as recy-

cling, composting, reuse, and

waste-to-energy projects.

According to him, the

state will leverage the part-

nership to develop inte-

grated solid and liquid waste

management facilities to

meet the current needs of

Lagos and also anticipate

the demands of the growing

population.

“These efforts are crucial

for reducing the environ-

mental footprint of waste,

creating jobs, and fostering

sustainable development in

Lagos,” he said.

Joseph Agyepong, CEO,

Jospong Group, said that

the problem of environ-

mental sanitation was not a

mere matter of convenience;

rather, it’s a fundamental

human right and a corner-

stone of public health.

“Yet, regrettably, mil-

lions of our fellow citizens

continue to suffer due to

inadequate access to infra-

structure, proper sanitation

facilities, and water treat-

ment facilities,” he said.

Agyepong said the group

would distribute about 2000

tricycles to PSP operators

in the waste collection and

management ecosystem.

According to him, the

company would not be in-

volved in direct waste col-

lection from residences, as

its role would be limited to

managing waste collected by

the PSP operators.

He said the pride of the

partnership was that it was

being carried out by Afri-

cans, just as he solicited the

support of all stakeholders

in the sector.

ENVIRONMENT

By Ladi Patrick-Okwoli, Abuja

FCTA to destroy 130

substandard vehicles

THE Federal Capital Terri-

tory Administration (FCTA)

is set to destroy 130 im-

pounded substandard vehi-

cles that failed the integrity

test in the nation’s capital.

Abdulateef Bello, direc-

tor, Department of Road

Traffic Services (DRTS),

stated this after taking

journalists around the im-

pounded vehicles in various

offices in Abuja on Monday.

Bello said that the ve-

hicles would be subjected

to all standard verification

for registration, roadwor-

thiness and other checks,

adding that those that failed

short of the minimum stan-

dard would be crushed.

He also said that the

owners of some of the im-

pounded vehicles would

face the mobile court and

pay requisite penalties in

line with the provision of

the law.

“Owners of some of the

vehicles that are here will

be made to face the mobile

court. The mobile court will

decide the kind of penalty

that will be given to them.

“But there are some that

definitely will not go back

to the road. We are going to

invite the owners. We will

ask them to pick whatever is

valuable in the vehicle, and

the vehicle will be crushed,”

he said.

The director added that

those arrested based on

crimes committed in the

guise of commercial opera-

tions would be handed over

to the police for prosecution.

Bello explained that a

total of 130 substandard

vehicles were impounded

in the last two weeks during

evening raids.

According to him, most

of the substandard vehicles

were plying the city roads

in the guise of commercial

business, whereas many of

them were running the city

to perpetrate crime.

“The idea is to ensure

that we return the city to

sanity; remove all traces of

insecurity and then ensure

seamless traffic flow in the

capital city,” he said.

TRANSPORTATION

ECONOMY

Tinubu urged to tackle insecurity

to boost food production

EXPERTS in the agricul-

tural value chain have chal-

lenged President Bola Tinu-

bu-led Federal Government

to address Nigeria’s wors-

ening insecurity if Africa’s

most populous nation is to

overcome its current food

shortage and rising prices

of commodities.

The experts, who spoke

to BusinessDay, also noted

that the planned distribu-

tion of 42,000 tonnes of as-

sorted grains to vulnerable

Nigeria by the government

was unsustainable.

The Federal Government

recently announced plans

to release 42,000 tonnes of

assorted grains from the

country’s strategic reserves.

Speaking to BusinessDay,

Yunusa Yabwa, the national

secretary of the All Farm-

ers Association of Nigeria

queried the sustainability

of the programme, stressing

the need for the government

to address the various chal-

lenges affecting food produc-

tion as well as the overall

agricultural system.

According to Yabwa,

many farmers have aban-

doned their farmlands due

to insecurity. This, he said,

has impacted the amount

of food available for sales

and consumption. “How

long are we going to keep

sharing foods like this, how

much do we even have in the

reserves? But our advice is

that the government should

focus on addressing issues

affecting our ability to pro-

duce food. Issues such as

insecurity; farmers every-

where in the country are

scared to go to their farms

and this is a big problem

that must be addressed.

Speaking on the modali-

ties for the distribution

of the grains, Yabwa said

the programme must be

administered fairly, void

of political influence. “The

government should collabo-

rate with the leaders at the

grassroots, as well as devise

means of identifying the

‘real’ vulnerable Nigerians.

If the government uses this

method, it will succeed but

they must avoid distribut-

ing these grains through

politicians, it will not yield

any result.”

Also speaking to Busi-

nessDay, Uchenna Dan-

iel, of Green Grain Nigeria

Company, said free distri-

bution of grain would only

suffice for a short period,

adding that Nigeria may

soon plunge into a severe

food crisis.

Citing the 2023 Cadre

Harmonise (CH) report re-

leased by the Food and Ag-

riculture Organisation in

March 2023, Daniel said, “it

is disheartening to see the

spread of hunger across the

country as it was projected

by the FAO. The report said

that over 20 million Nige-

rians would be faced with

acute food.

The report stated that

over 24 million Nigerians

in 26 states and the federal

capital territory (FCT), in-

cluding 18,000 internally

displaced persons (IDP)

were expected to face acute

food crises between June

and August 2023.

It also stated that the

monetary policy of the Cen-

tral Bank of Nigeria (CBN)

geared towards the redesign

of the currency notes and

withdrawal of the old notes

from circulation created a

serious bottleneck to house-

holds’ ability to access cash

as well as food commodities.

Bodger Scott Johnson

(l), executive director,

Public Procurement

and Concession

Commission of

Liberia, with Godwin

Obaseki, governor,

Edo State, during a

courtesy visit at the

Government House,

in Benin City, recently.

By Faith Esiho

Continued from page 1

Foreign investors hit brakes on Nigeria over...

NEWS

30 TUESDAY 27 FEBRUARY 2024

www.businessday.ng

TRADE is the lifeblood of the

global economy - it brings

countries and people to-

gether and can transform

our lives for the better. I’m

proud that the UK’s trading

offer to Nigeria and over 60

other countries is amongst

the most generous in the

world thanks to our Devel-

oping Countries Trading

Scheme. Globally, no coun-

try has lifted itself out of

poverty without increasing

its trade with the world and

over the last three decades,

we have seen more than a

billion people escape poverty

as exports from developing

countries have doubled.

At the heart of this suc-

cess story is the World Trade

Organization (WTO) and its

outstandingly successful

leader Dr Ngozi Okonjo-

Iweala. Since 1995 it has

set the global trading rules

which provide a common,

predictable, level playing

field for businesses around

the world. So far 164 coun-

tries accounting for over

98% of world trade have

joined the WTO and its

framework for trade have

driven export-led growth

and job creation in countries

from Vietnam to Bangladesh

to Ghana.

As Ministers from over

150 countries gather this

week in Abu Dhabi for the

WTO’s 13th Ministerial Con-

ference (MC13), the impor-

tance of the WTO for global

trade and growth is clear.

It is here that the rules that

will power the global econo-

my into the next decade must

be agreed. It is here that we

find the opportunity to make

the global trading system

work better for the world’s

poorest countries and ensure

that we all benefit from the

transformational impact of

trade.

The UK wants to see a

WTO which works for every-

one, including the develop-

ing countries which make

up almost two thirds of its

membership. As set out in

last year’s International

Development White Paper,

the UK puts the interests

of developing countries at

the heart of its approach to

the WTO. We are champi-

oning calls to extend lower

tariffs and flexible rules

for Least Developed Coun-

tries and to introduce new

rules on investment facilita-

tion that have the power to

boost investment in devel-

oping countries and across

the globe $250 billion. We

have been arguing for an

agreement that protects our

oceans and delivers sustain-

able fisheries, protecting

coastal communities in de-

veloping countries, and we

are trying to tackle food inse-

curity by removing harmful

export restrictions on food.

And we have backed up this

advocacy with financial sup-

port to enable all LDC gov-

ernments to attend MC13.

The World Trade Organization – More important now than ever

Of course, the WTO rules

will only deliver for develop-

ment if we stick to them and

can challenge one another

when we don’t. This requires

a fully functioning Dispute

Settlement System to ensure

that smaller economies are

not taken advantage of by

bigger states engaging in

unfair, unjust trading prac-

tices. This is a priority for

the UK as is ensuring that all

countries have a clear voice

in WTO negotiations – since

2011 the UK has provided

legal, technical, and finan-

cial assistance to develop-

ing countries at the WTO,

most recently to Ethiopia

to help prepare for its own

accession.

The UK has a long his-

tory of economic cooperation

with Nigeria and we want

to do more. As a continued

commitment to building on

our already strong trade

relationship, the UK’s Secre-

tary of State for Business and

Trade, Rt Hon. Kemi Bad-

enoch, recently signed an

Enhanced Trade and Invest-

ment Partnership with her

counterpart the Rt Hon. Dr

Doris Uzoka-Anite. The ETIP

builds on the commitments

made under the Economic

Development Forum and

highlights the key sectors of

focus that will see increased

trade and investment wins

for both nations.

I’ve been impressed by

the energy and commitment

from negotiating teams, in-

cluding Nigeria, in the run

up to MC13. We now need to

seize the opportunity before

us to make the rules that

bind us both stronger and

fairer so that everyone can

prosper, and no one is left

behind.

And we already support

many businesses operating

in Nigeria and UK busi-

nesses wishing to come to

Nigeria. For example, we are

supporting the UK-Turkish

construction firm, Zeberced

Ltd on their $144mn indus-

trial park project in Abuja.

This will be the first indus-

trial park in the capital and

set to create 40,000 jobs, and

provide a base for major

firms to access central and

northern Nigeria.

Under the previously

mentioned Developing

Countries Trade Scheme,

we are making it easier for

Nigerian firms to export

duty-free goods to the UK.

This includes removing tar-

iffs on nearly 3000 Nigerian

goods and products such as

cocoa, cotton, tomatoes, and

plantain, benefitting both

Nigerian exporters and UK

consumers. The goal is to

make it quicker, easier, and

cheaper for UK and Nigerian

firms to trade – no doubt an

ambition that both nations

share.

•Andrew Mitchell, the

UK’s minister of state for de-

velopment and Africa, writes

from London.

By Andrew Mitchell

Ngozi Okonjo-Iweala (2nd r), director general, World Trade Organization (WTO); Khaled bin Mohamed bin Zayed Al Nahyan (2nd l), Crown

Prince of Abu Dhabi/chairman of Abu Dhabi Executive Council; and others, at the opening of the WTO’s 13th Ministerial Meeting in Abu Dhabi.

because they didn’t think

the naira would weaken so

much but with the alterna-

tive market touching $/

N1,900 last week, they are

nervous already,” another

source familiar with the

matter said.

“We can’t afford them

asking for their dollars

now, it might be better to

provide a Non-Deliverable

Forward (NDF) for them so

that they can hedge against

any future volatility,” the

source said.

Reinstating the 13-month

NDFs for foreign investors,

a weekly offer of one-year

Treasury Bills- with the of-

fer size published ahead of

auction to aid planning- and

the consistent interven-

tion of the CBN via dollar

sales in the NAFEM are

all considered necessary

to improve liquidity in the

market and allay the fears

of investors.

The CBN started selling

dollars in the spot market

on February 13 after a five-

month break with the sale

of $87 million to banks. The

bank has sold more dollars

since then but there has

been no pattern to the sale

and analysts say the amount

being sold has been too little.

“What is very important

going forward is for us to see

an increase in supply,” said

Tajudeen Ibrahim, direc-

tor, research and strategy

at Lagos-based investment

bank Chapel Hill Denham.

“The CBN was in the

market again last week to

sell about $85 million to the

participating banks at the

official market. That kind

of development is encour-

aging, but it is not enough

to stabilise the currency,”

Ibrahim said.

The CBN’s latest inter-

vention pales in compari-

son to the amount it sold

daily in the market last

year.

The apex bank had

frozen dollar sales in the

spot market to deal with

a gaping FX backlog that

deterred foreign investors

from bringing in new mon-

ey into the economy.

CBN Governor Olayemi

Cardoso put the dollars

owed by the central bank in

forward contracts alone at

$2.2 billion in an interview

last month and vowed to

settle it in good time.

The CBN’s intervention

in the market was the latest

in a long list of moves aimed

at boosting liquidity in the

FX market and holding

the rates in the official and

black market from flying

apart like they did after

the naira was first allowed

to trade freely against the

dollar last June.

In addition to introduc-

ing better transparency

around pricing in the offi-

cial market and increasing

market interest rates, the

CBN also asked banks to

offload excess dollars and

removed the cap on transac-

tions done by International

Money Transfer Operators

lure in diaspora dollars.

Sources however say

weak enforcement has

muted the full gains of the

new regulation around the

net open position of banks

which was supposed to see

them offload excess dollars

in their vaults.

“That move was sup-

posed to offload over $5

billion into the market but

it hasn’t happened because

there are still concerns

about enforcement,” a

source familiar with the

matter said.

The reforms had led to

an initial appreciation in

the naira before a renewed

dollar shortage wiped the

gains, with the gap between

the official and parallel

market rates now over 10

percent having collapsed

to 2 percent on the back of

the reforms.

Stabilising the naira will

take higher interest rates,

according to several analysts

who spoke to BusinessDay

ahead of a crucial Monetary

Policy Committee meeting

on Monday and Tuesday.

The expectation is for

a 300 basis points hike in

benchmark interest rates as

the CBN attempts to send a

signal of monetary tightening

in order to curb accelerating

inflation. Headline inflation

hit 29.9 percent in January,

according to the National

Bureau of Statistics.

“What the government

and the Central Bank should

be doing is to allow for ele-

vated interest rates on naira

denominated assets, such

as the Nigerian local bonds

and the Nigerian Treasury

Bills,” Ibrahim said.

Market rates are start-

ing to rise with the one-year

Treasury bill now yielding

23 percent while seven and

ten-year bonds sold at a rate

of around 19 percent at an

auction last week.

Some investors who

spoke to BusinessDay say

market rates need to be

north of 20 percent at the

minimum across all asset

classes to encourage new

dollar inflows.

But there are still ques-

tions around the naira

which several foreign in-

vestors will be looking to

get answers to during a

foreign portfolio investor

call with CBN governor

Cardoso hosted by the NGX

this Wednesday.

The call which will hap-

pen at 4pm is supported by

Standard Bank, Citi bank,

JP Morgan and Standard

Chartered.

“There also needs to be

a concerted effort to court

investors,” a senior bank-

ing source said.

“We cannot assume

they will come. To be fair,

most people think what the

CBN has done are positive,

but they were neither se-

quenced nor coordinated,”

the source said.

COMMENTARY

ous year. The firm report-

ed a 30.7 percent increase

in its revenue to N53.1

billion.

Cost of sales grew to

N34.1 billion from N23.45

billion and finance cost

increased to N2.08 billion

from N1.77 billion.

May & Baker

May & Baker’s after-tax

profit dropped to N985.6

million from a profit of

N1.49 billion. The firm

recorded a 37.7 percent

rise in its revenue to N19.7

billion.

Cost of sales grew to

N13.1 billion from N10.5

billion and finance cost

increased to N346.1 million

from N286.0 million.

GSK Nigeria

GSK’s after-tax profit

declined to N510.8 million

from a profit of N771.2 mil-

lion. The firm recorded a

35.4 percent drop in its

revenue to N16.4 billion.

The cost of sales was N10.4

billion, down from N18.5

billion.

Morison Industries

Morison recorded an af-

ter-tax loss of N89.4 million

from a loss of N107.5 mil-

lion. Its revenue dropped

to N145.2 million from

N154.8 million.

Cost of sales declined to

N118.9 million from N131.3

million and finance expens-

es rose marginally to N19.7

million from N19.6 million.

Neimeth

Neimeth recorded an

after-tax loss of N2.58 bil-

lion from a profit of N19.1

million. The firm’s rev-

enue dropped to N2.21

billion from N3.46 billion.

Cost of sales declined to

N1.46 billion in 2023 from

N2.09 billion while finance

cost rose to N560.9 million

from N187.9 million.

Continued from page 2

Drugmakers see decline in fortunes...

NEWS

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

Continued from page 2

FG’s health backward integration...

INFLATION eroded the N8.44

trillion gain the telecommu-

nication sector made in 2023

despite its improving contribu-

tion to economic growth.

In 2023, the telecoms sector

contributed N25.22 trillion to

the country’s Gross Domestic

Product (GDP) in nominal

terms (at current prices). This

was an N8.44 trillion increase

from the N16.78 trillion the sec-

tor recorded in 2022. At current

prices, the telecom sector grew

by 50.28 percent in 2023.

However, when adjusted for

inflation (GDP at 2010 constant

basic prices), telecoms contrib-

uted N11.03 trillion, a N901.52

billion increase from the N10.13

trillion it recorded in 2022.

When adjusted for inflation,

the telecom sector grew by 8.90

percent in 2023.

Nominal GDP is the current

market value of goods and ser-

vices produced at a particular

period, while real GDP is the

value of goods and services af-

ter inflation has been factored

in. According to economists,

real GDP is the true reflection

of a country’s economic status.

Commenting on the impact

of the information and commu-

nication sector (to which tele-

coms contributed 83.69 percent

to) on the country’s nominal

GDP, the National Bureau of

Statistics said: “On an annual

basis, the sector grew by 40.79

percent, higher than 19.00 per-

cent in 2022. The information

and communications sector

contributed 12.52 percent to the

total nominal GDP in the 2023

fourth quarter, higher than the

rate of 10.42 percent recorded in

the same quarter of 2022.”

It said: “On an annual basis,

the sector growth stood at 7.91

percent relative to 9.76 percent

in 2022. Of total real GDP, the

sector contributed 16.66 per-

cent in the 2023 fourth quarter,

higher than in the same quarter

of the previous year in which it

represented 16.22 percent.”

The removal of fuel sub-

sidy and the harmonisation

of foreign exchange rates ex-

acerbated inflation in 2023.

Between January and May

(before the two policies kicked

in), inflation rose from 21.82

percent as of January 2023 to

22.41 percent as of May 2023.

Inflation jumped from 22.79

percent as of June 2023 to 29.90

percent as of December 2023 af-

ter implementing the policies.

This has led to a surge in

the cost of goods and services

in the country, with businesses

struggling to stay afloat as the

purchasing power of consum-

ers worsened.

High inflation is creating

hardships in Nigeria, the In-

ternational Monetary Fund

recently disclosed. In the 10

months leading to December

By Temitayo Jaiyeola

Inflation erodes N8.4trn telecom sector gain

2023, six Nigerian companies

stopped operations in the coun-

try because of the harsh busi-

ness environment, Business-

Day recently reported.

In the company’s nine-

month financial statement for

September 2023, Karl Toriola,

MTN Nigeria chief executive

officer, highlighted that infla-

tion has diminished the firm’s

consumer spending power.

He said the firm’s earnings

before interest, tax, deprecia-

tion and amortisation margin

came under pressure as the

impact on operating expenses

of the country’s forex har-

monisation kicked in in Q3,

heightened by rising inflation.

“However, the scale of the

impact on the business of rising

inflation and currency devalua-

tion necessitates an increase in

regulated tariffs. We are engag-

ing with the authorities through

the relevant regulatory bodies to

achieve this objective,” he said.

In Airtel’s report for the nine-

month period ended December

2023, Airtel Africa highlighted

that an increase in inflationary

pressures could lead to a sig-

nificant increase in its operating

cost structure while also nega-

tively impacting the disposable

income of its consumers.

“These adverse economic

conditions, therefore, not only

put pressure on our profitabil-

ity but also on customer usage

for our services,” it added.

L-R: Benjamin Kalu, deputy speaker, House of Representatives; Barau Jibrin, deputy Senate president; Tajudeen Abbas, speaker,

House of Representatives; and Yahaya Abubakar, Etsu Nupe, during the inauguration and citizens engagement of the House

Committee on Review of the Constitution of the Federal Republic of Nigeria 1999 (as amended), in Abuja on Monday. NAN

QATAR is courting foreign

investors to expand its gas ex-

pansion project, and the energy

companies falling over them-

selves are the same ones that

turned their nose up at Nigeria’s

invitation to invest in its lique-

fied natural gas (LNG) plants.

BusinessDay findings

showed Qatar is already one

of the world’s largest suppliers

of LNG — gas cooled into liquid

form so that it can be piped onto

ships for export – and it is mak-

ing plans to further increase

its LNG production capacity

following the discovery of vast

new gas reserves.

Qatar announced new plans

to expand output from the

world’s biggest natural gas

field, saying it will boost ca-

pacity to 142 million tonnes

per annum (mtpa) before 2030,

according to Saad Sherida al-

Kaabi, Qatar’s energy minister.

The new North Field expan-

sion, named North Field West,

will add a further 16 million

tonnes of LNG per year to exist-

ing expansion plans, Sherida

al-Kaabi said at a news confer-

ence on Sunday.

Meanwhile, Nigeria LNG

Limited (NLNG), owned by

the federal government of Ni-

geria and three international

oil companies, has been on

force majeure for more than

15 months.

“Recent studies have shown

that the North Field contains

huge additional gas quantities

estimated at 240 trillion cubic

feet, which raises the state of

Qatar’s gas reserves from 1,760

[trillion cubic feet] to more

than 2,000 trillion cubic feet,”

said al-Kaabi, who also heads

the state-owned company Qa-

tarEnergy.

These results “will enable us

to begin developing a new LNG

project from the North Field’s

western sector with a produc-

tion capacity of about 16 million

tonnes per annum”, he said.

This will bring Qatar’s pro-

duction capacity to 142 million

tonnes once “the new expan-

sion is completed before the

end of this decade” – a nearly 85

percent rise from current pro-

duction levels, al-Kaabi added.

The QatarEnergy chief said

the firm will “immediately

commence” with engineering

works to ensure the expansion

is completed on time.

BusinessDay’s findings

showed ExxonMobil has

pumped nearly $30 billion into

gas projects in Qatar within long-

term partnership agreements.

The US oil giant ExxonMo-

bil has pumped nearly $30 bil-

lion into gas projects in Qatar

within long-term partnership

agreements, its Senior Vice

President has said.

According to Peter Clarke,

ExxonMobil’s senior vice presi-

dent, the oil giant began in-

vesting in Qatar’s gas projects

during the 1990s and that it has

contributed to the development

of 12 of the 14 gas facilities in

the Gulf country.

“We have also invested in

27 LNG vessels to transport

Qatari gas...over the past years,

we have invested nearly $30

billion in major projects in

Qatar…we also have important

ventures with Qatar in the US,

mainly Golden Pass Termi-

nal,” Clarke told the Qatari

Arabic language daily Asharq

in an interview.

Contrast this with Nigeria

where investors have largely

been unimpressed with over-

tures to build new liquefaction

plants.

The NLNG has seen its out-

put decline owing to gas supply

constraints, which also pose a

threat to its expansion plan.

It had on October 17, 2022

declared a force majeure on

product supplies from its pro-

duction facilities on Bonny

Island, following the declara-

tion of force majeure by all its

upstream gas suppliers.

Since the development of

the NLNG, new projects have

been too few and far between.

e Two LNG projects in Nigeria:

Olokola LNG and Brass LNG

have been unable to reach a

final decision by the stakehold-

ers as investors have pulled out.

The OK LNG project was

stalled because all the inter-

national oil companies (BG,

Shell and Chevron) withdrew

from the project, with only the

Nigerian National Petroleum

Company (NNPC) left.

The Brass LNG project,

which was designed to produce

10 million metric tonnes per

annum, was to be built by the

NNPC, Total, ConocoPhillips

and Eni Group. But Cono-

coPhillips withdrew from the

project in 2013 and has stalled

since then.

“As we move into the early

2030s, there’s going be huge

demand for gas from Asia, and I

think QatarEnergy is squarely

focused on that,” said Tom

Marzec-Manser, head of gas

analytics at commodity pricing

and data company ICIS. Qatar

has secured two huge gas sup-

ply deals with China over the

past 15 months.

Last June, it agreed to sell

4mn tonnes a year of LNG to

China National Petroleum Cor-

poration for 27 years, following

a similar deal with China’s

Sinopec in November 2022.

Qatar’s LNG ramp-up

comes amid growing demand

for gas, which is set to grow by

2.5 percent, or 100 Bcm (3531

Bcf) in 2024, the International

Energy agency said in its gas

market report for Q1 2024.

Qatar accounted for 20 per-

cent of LNG volumes in 2023,

the Paris-based agency said in

the report.

“In particular, the United

States and Qatar have been

driving this trend, accounting

for 34 percent and 26 percent of

all contracted volumes in 2023

respectively. Considering only

post-FID (final investment deci-

sion) projects, these countries’

share was 21 percent and 39

percent,” the IEA said.

It is this kind of critical

thinking and rigour that is

absent in Nigeria’s policy for-

mulation and execution which

is scaring away investors.

Sugar Development Coun-

cil (NSDC) in 2021 showed

that successes recorded by

industry leaders in sugar were

anchored more on bringing

raw sugar into the country,

an economically costly model

with negative implications for

the naira and cost.

Backward integration,

as a policy, involves local

sourcing of raw materials

to reduce foreign exchange

dependence. It is a process in

which a company acquires or

merges with other businesses

that supply raw materials

needed in the production of its

finished product. Businesses

pursue backward integration

with the expectation that the

process will result in cost sav-

ings, increased revenues, and

improved efficiency in the

production process.

Anticipated benefits in-

clude cost reduction and im-

proved affordability of health-

care services, by gaining

control over the production

of essential materials, and re-

ducing reliance on expensive

imports.

While recognising the po-

tential benefits of backward

integration, Alaje cautioned

against viewing it as the pana-

cea for the manufacturing

sector and the wider economy.

He emphasised the need to

address critical challenges

obstructing manufacturing,

saying failure to do so could

undermine the effectiveness

of the proposed policy.

“We need to have technical

skills for health, we need our

energy sector, and we need

electricity to work,” he said.

“But we must start with the

fundamentals and work the

talk. If we can work the talk,

we will get there.”

Francis Meshioye, presi-

dent of the Manufacturers

Association of Nigeria, said a

policy such as backward inte-

gration requires a closer en-

gagement with manufacturers.

Meshioye pointed out that

the government ought to be

engaging closely with manu-

facturers on the components

and incentives that would

form its proposed backward

integration policy that should

benefit manufacturers.

He said: “Our view of the

backward Integration pro-

gramme is that it is very apt,

and what the government

should do is to engage with

the sector. It is better to en-

gage the sector to be able to

know how to assist the sector

if the results will be towards

constructive and effective

targeted objectives.

“The issue is to have a clos-

er engagement with the stake-

holders as any programme

or policy by the government

to help manufacturers is a

welcome idea but it will only

be effective by engaging the

manufacturers so that the

government can have a proper

direction on what to do.

Samuel Nzekwe, an eco-

nomic and financial analyst,

commended the government’s

initiative on backward in-

tegration, saying the policy

could significantly enhance

local productivity and reduce

foreign exchange pressure.

Nzekwe underscored the

pivotal role of a well-executed

implementation process for

the policy to yield the desired

results.

“Manufacturers need a

conducive environment for

production to thrive here.

They need power, electricity,

roads, security, network con-

nectivity, and it’s not yet avail-

able,” Nzekwe said, pointing

out that the use of generators

for manufacturing imposes

significant costs on the in-

dustry.

He urged the government

to include incentives in the

policy that specifically address

these challenges and not just

financial incentives. “Gov-

ernment incentives should

address power and other infra-

structure issues so that when

they empower manufacturers

financially, they will be able

to produce.”

“The health sector has

been suffering, and if we have

things that we can manufac-

ture locally. If Nigeria manu-

factures most drugs locally, it

can significantly reduce the

soaring cost of drugs and sub-

sequently reduce the overall

cost of healthcare,” Nzekwe

added.

For Muda Yusuf, chief ex-

ecutive officer of the Centre

for the Promotion of Private

Enterprise, the proposed ini-

tiative will address the chal-

lenges faced by manufacturers,

particularly in dealing with

foreign exchange issues, but

will also require a very robust

incentive. This includes subsi-

dising machinery and remov-

ing tariffs and value-added tax

on critical inputs, he said.

Yusuf highlighted the

importance of sourcing raw

materials locally to alleviate

pressure on forex and reduce

production costs, ultimately

bringing down prices.

“This is the time to look

inwards. You see all the chal-

lenges that manufacturers are

facing with foreign exchange.

So at a time like this, the

more manufacturers can look

inwards for raw materials

and other inputs, the better

for the sector and the better

for even our forex market. But

the government needs to drive

this with a lot of incentives so

that more of these things can

be sourced locally,” he said

Qatar seals LNG deals Nigeria once sought

By By Dipo Oladehinde

DIRECTOR General,

World Trade Organisa-

tion, Ngozi Okonjo-Iwea-

la, has called on various

governments in Nigeria

to create proper regula-

tory environments to

ensure success of invest-

ment in the power sector.

Okonjo-Iweala made

the call on Monday in

her goodwill message,

sent virtually, at the in-

auguration of the Aba

Integrated Power Project

(IPP), Geometric Power

Group.

She explained that cre-

ating proper regulatory

environments were need-

ed to enable the country’s

energetic private sector

follow the Aba IPP ex-

ample and invest more in

energy infrastructure.

According to her, the

Aba IPP is a great exam-

ple of the type of private

sector infrastructure in-

vestment we want to see

in Nigeria, especially

around the South East.

32 TUESDAY 27 FEBRUARY 2024www.businessday.ng

By Temitayo Jaiyeola

Third Mainland Bridge: Federal

Controller announces impending

24-hour total closure

3 docked over alleged

hoarding of foreign

currencies in Oyo

NCC reaffirms February 28

deadline for SIM-NIN linkage

THE deadline for block-

ing telephone lines with-

out National Identity

Numbers (NIN) remains

February 28, the Nige-

rian Communications

Commission (NCC) has

affirmed.

This was disclosed by

Reuben Mouka, Director

of Public Affairs, NCC,

on Monday. This is a fol-

low-up to its April 2022

directive when the com-

mission directed telcos

to restrict outgoing calls

on SIMs that have not

submitted their NINs.

Reaffirming the

NCC’s stance, Mouka

said, “I am unaware of

any extension and cer-

tain there won’t be. I

don’t know what to say,

but the fact is that there

is no change in that

deadline. The deadline,

which is February 28,

stands.”

Meanwhile, the Fed-

eral High Court in Lagos

has restrained telecom

operators from deacti-

vating or barring any

line or SIM not linked to

their NINs.

According to Chan-

nels TV, Justice Am-

brose Lewis-Allagoa re-

strained the telcos while

ruling on an application

THE Economic and Fi-

nancial Crimes Commis-

sion (EFCC), on Monday

arraigned three men

accused of hoarding for-

eign currencies.

The trio appeared at

an Iyaganku Chief Mag-

istrates’ Court, Ibadan,

for allegedly hoarding

foreign currencies and

selling same at exhorbi-

tant prices, without law-

ful authority.

The News Agency

of Nigeria (NAN) re-

ports that the suspects

– Thomas Olatokunbo,

62, Dauda Ismail, 32, and

Bello Muhammed 29 – all

residents of Sabo area,

Mokola in Ibadan, are

facing a five-count bor-

dering on conspiracy.

They are also accused

of unlawfully procuring

THE Federal Minis-

try of Works says both

bounds of the car-

riageways of the Third

Mainland Bridge will

be closed to traffic from

noon tomorrow to noon

on Thursday.

The Federal Control-

ler of Works, Lagos,

Olukorede Kesha, made

this known in a state-

ment made available to

journalists in Lagos on

Monday.

She said that the

total closure was in

continuation of the on-

going rehabilitation

works on the bridge.

Keisha said it was to

allow the contractor to

execute a major aspect

of the ongoing repair

works on the bridge.

“Consequently, the

bridge would not be

opened to traffic dur-

ing this critical 24-hour

period. Thus, all road

users are advised to use

alternative routes dur-

ing this period.

NEWS

ELECTRICITY NIN

Power Sector: Okonjo-

Iweala calls for proper

regulatory environment

“The benefits are truly

significant especially for

the thousands of small

and medium scale enter-

prises in Aba, including

our well-known industri-

al market, Ariaria.

“The nation will also

benefit from the addition-

al megawatts of power

that Aba IPP will send to

the national grid instead

of being used in Aba.

“The Aba IPP is totally

funded by African capi-

tal, something we should

all be proud of.”

Okonjo-Iweala also

said that the expectation

of establishing Aba IPP

was to help stimulate oth-

er investments in manu-

facturing in the Aba area

through providing reli-

able electricity.

She added that another

advantage of the IPP was

that it makes use of the

nation’s gas, a clean en-

ergy transition fuel that

Nigeria is so fortunate to

have in abundance.

“There is really no

reason why this country

should have the majority

of its households without

power or have industries

struggling when we have

the basic energy transi-

tion fuel that other coun-

tries are yearning for.

“Let me reiterate how

excited I am that this

thing has finally come. I

wish you all a wonderful

and successful event,”

she said. (NAN)

“Motorists are fur-

ther advised to coop-

erate with the traffic

management officials

deployed to manage

traffic and ensure

hitch- free movements

in order to minimize

the discomfort during

this critical 24-hours

period.

“While thanking the

general public for their

continued cooperation

and understanding,

please note that all in-

conveniences are high-

ly regretted,” she said.

The Lagos State Gov-

ernment also released

notification for the

planned total closure of

the bridge

The Commissioner

for Transportation,

Oluwaseun Osiyemi,

did this on Monday in

Lagos.

“All road users are

advised to use alterna-

tive routes already pro-

vided during this pe-

riod as the bridge will

not be opened to traffic

for 24-hours,” he said.

While thanking the

general public for their

patience and coopera-

tion, Osiyemi assured

that the traffic manage-

ment officials would be

on ground to manage

traffic and minimise

inconveniences. (NAN)

a license or certificate

for buying and selling of

foreign currencies, and

disobeying executive or-

der of the President.

The defendants, how-

ever, pleaded not guilty

to the charges.

The Chief Magistrate,

M. Mudasiru, granted

the defendants bail in

the sum of N1 million

each, with two sureties

in like sum.

Mudasiru adjourned

the matter till June 4,

for hearing

According to the Po-

lice Prosecutor, Amos

Adewale, the defen-

dants, with others now

at large, on February 21,

at Sabo area, Mokola,

Ibadan, allegedly con-

spired to commit the of-

fences. (NAN)

BRIDGE

ARRAIGNMENT

filed by a Lagos-based

lawyer, Olukoya Ogung-

beje.

In April 2022, Ogung-

beje filed a suit against

MTN when his SIMs were

barred, and the court, at

the time, dismissed his

suit for lack of merit. He

filed an appeal, which is

currently pending at the

court of appeal.

Ogungbeje had sued

the Federal Government

of Nigeria, the Attor-

ney General of the Fed-

eration and Minister of

Justice; MTN Nigeria

Communications Plc and

Airtel Networks Nigeria

Limited,

Ogungbeje has now

asked the court for an in-

junction pending appeal,

restraining all the re-

spondents (Federal Gov-

ernment of Nigeria, the

Attorney General of the

Federation and Minister

of Justice; MTN Nigeria

Communications Plc and

Airtel Networks Nigeria

Limited) from further

outright barring, deacti-

vating and or restricting

any SIM cards or phone

lines on Feb. 28, 2024,

or any other scheduled

date, pending the hear-

ing and determination of

his appeal at the Court of

Appeal of Nigeria.

Ukrainian troops pull back again as Russia’s

onslaught pushes ahead in eastern Ukraine

UKRAINIAN troops have

pulled out of a village in

the east of the country,

an army spokesman said

Monday, as Russian forc-

es display advantages in

manpower and ammuni-

tion on the battlefield at

the start of the war ’s third

year.

The latest setback for

Kyiv’s soldiers was in the

village of Lastochkyne,

where they fell back to

nearby villages in an at-

tempt to hold the line

there, Dmytro Lykhovii, a

spokesman for one of the

Ukrainian troop group-

ings, said on national tele-

vision.

Lastochkyne lies to

the west of Avdiivka, a

suburb of Donetsk city

that the Kremlin‘s forces

captured on Feb. 18 after

a four-month battle. The

outnumbered defenders

were overwhelmed by

Moscow’s military might,

and Ukraine chose to pull

out its troops and mount a

defense elsewhere.

Russian state-owned

news agency RIA Novosti

quoted local commander

Andrei Mordvichev as

uel Macron called a “criti-

cal” juncture. He says

Kyiv needs more military

resources and likely will

require them over an ex-

tended period of time.

U.S. President Joe

Biden was also seeking

to remove political road-

blocks on providing more

aid to Ukraine, convening

the top four congressional

leaders at the White House

on Tuesday.

In other developments,

Moscow-installed offi-

cials in Ukraine’s eastern

Donetsk region claimed

that Russian troops had

destroyed a U.S.-made

Abrams tank for the first

time since they were de-

ployed in Ukraine last fall,

RIA Novosti reported.

A drone strike on the

Russian city of Belgorod

near the Ukraine border

killed three people and

wounded three more, re-

gional Gov. Vyacheslav

Gladkov said Monday eve-

ning.

Russia launched seven

missiles of various types

and 14 Shahed drones over

Ukraine early Monday

morning. (AP)

Palestinian prime minister submits government’s

resignation, a move that could open door to reforms

Israel vows to target Lebanon’s

Hezbollah even if cease-fire

reached with Hamas in Gaza

THE Palestinian prime

minister announced the

resignation of his gov-

ernment on Monday,

paving the way for a

shake-up in the Palestin-

ian Authority, which the

U.S. hopes will eventual-

ly take on a role in post-

war Gaza.

Many obstacles re-

main to making a re-

vamped Palestinian

Authority a reality.

Palestinian President

Mahmoud Abbas, whose

forces were driven from

Gaza by Hamas in 2007,

has made clear that he

would like the PA to gov-

ern the enclave after the

war. But it is deeply un-

popular among Palestin-

ians, and Israeli Prime

Minister Benjamin Ne-

tanyahu has roundly re-

jected the idea of putting

the authority in charge

of the territory.

Abbas accepted the

resignation late Mon-

day, the official Wafa

news agency announced,

but left Prime Minister

Mohammad Shtayyeh

in place at the head

of a caretaker govern-

ment until a successor

is named. There was no

word on how long that

might take.

The move appears to

be the first step in a pro-

cess toward ushering in

reforms sought by the

United States, as inter-

national negotiations

ramp up to bring about

a cease-fire. The author-

ity, created under in-

terim Israeli-Palestinian

peace deals in the early

1990s, administers parts

of the West Bank but is

beset by corruption.

“The next stage and Strip on Oct. 7. Tens of

thousands of civilians on

both sides of the Israel-

Lebanon border have

been displaced by the

continued cycle of Hez-

bollah rocket and missile

attacks and Israeli air-

strikes and artillery fire.

Hezbollah leader Has-

san Nasrallah said in

a speech earlier this

month that the group

would adhere to a cease-

fire in southern Lebanon

if a cease-fire should be

reached in Gaza. But he

said it would resume and

escalate attacks if Israel

its challenges require

new governmental and

political arrangements

that take into account

the new reality in the

Gaza Strip,” Shtayyeh

said at a Cabinet meet-

ing.

Netanyahu has vowed

to destroy the military

and governing capabili-

ties of Hamas — which

has ruled Gaza since 2007

and staged the Oct. 7 at-

tack on Israel that set off

the current war. He has

called for Israel to main-

tain open-ended security

control in the territory

after the conflict, with

Palestinian officials in

charge of civilian affairs.

The Palestinians have

rejected such a limited

role and seek an inde-

pendent state in the West

Bank, east Jerusalem

and Gaza — areas cap-

tured by Israel in the

1967 Mideast war.

Abbas is expected to

choose Mohammad Mus-

tafa, chairman of the Pal-

estine Investment Fund,

as the next prime min-

ister. Mustafa is a U.S.-

educated economist who

has held senior positions

in the World Bank and

served in senior posts in

the Palestinian Author-

ity. Palestinian officials

say he has a good, long-

standing working rela-

tionship with American

officials. (AP)

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

FOREIGN NEWS

continued to strike in

Lebanon after any agree-

ment with Hamas.

A Lebanese security

official said Sunday that

five Hezbollah members

were killed in two sepa-

rate Israeli airstrikes on

trucks in the border area

between Lebanon and

Syria. The official spoke

on condition of anonym-

ity because he was not

authorized to share the

information with jour-

nalists. Hezbollah an-

nounced that three of its

fighters had been killed,

but did not say where.

(AP)

saying troops had pushed

Ukrainian forces back by

10 kilometers (6 miles)

and were continuing with

their offensive. The agen-

cy said a key Ukrainian

supply route ran through

Lastochkyne.

It was not possible to

ISRAEL’s defense min-

ister vowed Sunday to

step up attacks on Leba-

non’s Hezbollah militant

group even if a cease-fire

is reached with Hamas

in the Gaza Strip.

Hezbollah, which has

been exchanging fire

with Israel throughout

the war in Gaza, has said

it will halt its nearly

daily attacks on Israel if

a cease-fire is reached in

Gaza.

But Israeli Defense

Minister Yoav Gallant

said that anyone who

thinks a temporary

cease-fire for Gaza will

also apply to the north-

ern front is “mistaken.”

“We will continue the

fire, and we will do so

independently from the

south, until we achieve

our goals,” Gallant said.

He said there is a simple

aim: to push Hezbollah

away from the Israeli

border, either through a

diplomatic agreement or

by force.

Hezbollah began strik-

ing Israel almost im-

mediately after Hamas

triggered the fighting in

Gaza with a deadly at-

tack along Israel’s south-

ern border from the Gaza

independently verify each

side’s claims.

Though not in itself

a major loss, abandon-

ing the village illustrates

the battlefield challenges

Ukraine is currently fac-

ing. The new phase of the

war has brought some

bleak developments for

Ukraine.

Moscow’s troops are

driving on, smashing

towns and cities with their

superior firepower, de-

spite suffering high losses

of troops and equipment,

Ukraine says.

Western analysts say

the Russians are attacking

in strength along four par-

allel axes in the northeast,

aiming to press deeper into

the Ukraine-held western

part of the Donetsk region

and also penetrating into

the Kharkiv region north

of it.

Ukrainian Defense

Minister Rustan Umerov

complained Sunday that

half of promised West-

ern military support to

Ukraine fails to arrive on

time. That, he said, makes

it hard to undertake prop-

er military planning and

ultimately costs the lives

of soldiers.

Western leaders have

sworn to stand by Ukraine

as long as they need to de-

feat Russia’s full-scale in-

vasion of Feb. 24 2022, and

Bulgarian Prime Minister

Nikolay Denkov arrived

in Kyiv on Monday to

show his support.

More than 20 European

heads of state and govern-

ment and other Western

officials were due to meet

in Paris on Monday to

discuss the war at what

French President Emman-

34 TUESDAY 27 FEBRUARY 2024www.businessday.ng

2024 Olympics Qualifier: Super

Falcons edge Cameroon, face

South Africa in final round

Arsenal reportedly willing to

offer €130m for Osimhen

By Anthony Nlebem

Man United ready to

consider offers for Antony

Troost-Ekong undergoes

surgery, risks missing

rest of season

By Anthony Nlebem

SPORTS

NINE-time champions,

Nigeria’s Super Falcons

on Monday defeated the

MANCHESTER United

will reportedly consider

offers for Antony in the

summer transfer window,

with the Red Devils said to

be planning a squad exodus

at the end of 2023/24.

Antony has failed to im-

press since joining United

two years ago and has now

failed to score or provide an

assist in 20 Premier League

appearances this season.

With new co-owners

Ineos scrutinising the cost

and effectiveness of the

United squad following Sir

Jim Ratcliffe’s £1.3billion

investment, his figures

make grim reading.

He was overlooked by

Erik ten Hag for United’s

defeat to Fulham over the

weekend, with teenage

prospect Omari Forson

getting the nod to start on

the wing instead. It seems

as though Antony’s time at

Old Trafford may soon be

up amid suggestions that

he could be made available

for a summer exit.

According to the Man-

chester Evening News,

the 24-year-old Brazilian

winger is one of several

players who could be leav-

ing Old Trafford at the end

of the season.

The Red Devils are

thought to be willing to

consider offers for Anto-

ny, but it is unlikely they

will be able to recoup the

£81million fee they paid

to sign him from Ajax two

summers ago.

Raphael Varane, Antho-

ny Martial and Tom Heaton

will all be out of contract in

the summer, meaning they

are set to leave unless new

deals can be agreed over the

coming months.

Lionesses of Cameroon

1-0 in a crucial second-

leg qualifier for the 2024

Olympics Women’s Foot-

ball Tournament at the

MKO Abiola National

Stadium, Abuja.

Esther Okoronkwo’s

15th-minute goal separat-

ed Nigeria and Cameroon

in a highly tense 180-min-

ute battle over two legs.

ACCORDING to transfer

expert Ben Jacobs, Pre-

mier League club, Arse-

nal are seriously making

plans to bring Nigerian

and Napoli striker Victor

Osimhen to the Emirates

Stadium during the 2024

summer transfer win-

dow.

Jacobs said the Gun-

ners are willing to match

Osimhen’s €130m release

clause and ready to meet

his £250,000 a week wage

demands.

Arsenal are in search

of a prolific centre-for-

ward to add to the squad

for next season and re-

ports claim manager

Mikel Arteta has identi-

fied the Nigerian striker

as a perfect option.

The former Lille for-

ward has made his inten-

tion to play in the Pre-

mier League and several

reports have linked him

to Arsenal with Chelsea

and PSG also interested

in signing the Super Ea-

gles striker.

“We still can’t rule out

Arsenal in the race for

Osimhen,” Jacobs said as

reported by GiveMeSport.

“It’s also true that PSG

have Osimhen very, very

high on their list of tar-

Victory sets up a

mouth-watering final

round fixture between Ni-

geria and reigning Afri-

can champions South Af-

rica, scheduled in April.

After 105 minutes of

scoreless action (90 min-

utes in Douala and 15

minutes in Abuja), the

Henan FC of China for-

ward took matters into

her own hands.

Latching onto the ball

from a long thrust out of

the defence, Okoronkwo

outpaced her markers

and got close to the byline

before finding captain Ra-

sheedat Ajibade, whose

chip was parried by the

brilliant goalkeeper Mi-

chaely Bihina, only onto

the path of the onrushing

Okonronkwo who fin-

ished with aplomb.

SUPER Eagles vice cap-

tain William Troost-

Ekong is at risk of miss-

ing the rest of the season

after rupturing his biceps

femoris in his right leg.

According to a post by

Italian transfer expert

Fabrizio Romano, Troost-

Ekong will undergo sur-

gery in Finland on Tues-

day, February 27, 2024.

The 30-year-old defend-

er picked up a hamstring

injury in Nigeria’s group

game against Ivory Coast

at the 2023 Africa Cup of

Nations, where he scored

the winning goal for the

Super Eagles from the

spot, but played through

the final game in pain.

“Nigeria captain Wil-

liam Troost-Ekong, in

Finland for minor sur-

gery,” Roman posted on

his X handle.

“The injury occurred

during the 2nd group

stage game vs Ivory Coast.

gets and can move in the

market because they will

free up money due to Kyl-

ian Mbappe’s departure.

“I’m still told by sourc-

es that Osimhen’s prior-

ity is the Premier League,

which is encouraging

for Chelsea and Arsenal.

He would be looking for

about £250,000 per week,

which Arsenal, Chelsea

and PSG would all be hap-

py to pay.”

Arsenal are enjoying

another positive season

in the Premier League,

are in contention for the

title and are certain to

play Champions League

football next season.

The Nigerian was in-

strumental in Napoli’s

first Serie A title in 33

years last season, netting

26 times in 32 league ap-

pearances.

Osimhen, a 25-year-old

striker and current Afri-

can Player of the Year has

continued his impressive

run this season and has

scored eight goals in 14

Serie A appearances for

Napoli in the 2023/24 sea-

son.

Since joining Napoli

from Lille in 2020, the Ni-

geria international has

scored 69 goals with 17 as-

sists in 121 appearances

in all competitions for the

Italian club.

“Despite the injury,

William became Player

of the Tournament… and

he’s expected to return to

play for PAOK towards

the end of the season.”

The former Watford

player scored three goals

for the three-time Afri-

can champions and was

named Player of the Tour-

nament

Troost-Ekong is ex-

pected to return to play

for Greek side PAOK to-

wards the end of the sea-

son.

TUESDAY 27 FEBRUARY 2024 www.businessday.ng

Agbonlahor urges Sir Ratcliffe to sack Ten Hag

Everton points deduction

reduced after appeal

Former UFC star Hardy tips

Ngannou to beat Joshua in Riyadh

By Anthony Nlebem

By Anthony Nlebem By Anthony Nlebem

FORMER Aston Villa strik-

er Gabby Agbonlahor has

urged Manchester United’s

new minority owner Sir

Jim Ratcliffe to sack Erik

ten Hag following United’s

home defeat to Fulham.

The Red Devils suffered

their first home defeat to

Fulham since 2003 on Sat-

urday, as goals from two

Nigeria internationals Cal-

vin Bassey and Alex Iwobi

mounted more pressure on

the Dutch tactician again.

Aston Villa’s 4-2 win

over Nottingham Forest

moved Unai Emery’s side

eight points ahead of Man-

chester United in the battle

for a top-four place.

Ten Hag and his team

are in danger of missing out

on Champions League foot-

ball next season. Despite

a shambolic performance

without Rasmus Hojlund,

Ten Hag believes his side

still should have taken all

three points.

“We fought ourselves

back into the game and

we got a draw, and at that

EVERTON’s penalty

for breaching Premier

League financial rules

has been reduced from 10

points to six after an ap-

peal.

The club were immedi-

ately docked 10 points in

November for breaking

profit and sustainability

rules (PSR) in 2021/22.

The punishment -

the biggest in Premier

League history - dropped

cause of the unknown com-

modity of Francis Ngannou

there’s going to be a shock

to the system.”

He continued: “There’s

an unquantifiable power

about Ngannou and that’s

concerning because he can

punch through a decent

guard. I feel like AJ’s go-

ing to feel punches com-

ing through his guard and

they’re going to surprise

him a little bit.

“Because Ngannou will

let them go and try to hurt

him. But they’ve both got

to respect one another’s

power. If Ngannou gets

tired, he gets over-extended,

he leaves himself open, AJ’s

going to pick him apart and

it could look like a very easy

night for him.

“AJ knows how to land

SPORTS

and deliver a punch. He’s

very precise. He’s very

powerful as we know.”

He warned Joshua, say-

ing: “He has to give Ngan-

nou the respect; that he’s

improved since the last

fight and of course with the

confidence that he can do

10 rounds.

“I expect to see a busier

Francis Ngannou. I don’t

know whether that’s neces-

sarily a good thing because

the busier he is, the easier

he is to hit.

“Of course, AJ is a su-

premely talented boxer.

Very skilled. Good basics.

Good fundamentals. So on

paper, he should be able

to pick Ngannou off and

wear him down, keep him

at a distance and not over-

extend himself.

Everton from 14th to 19th

in the table.

The reduction lifts

them from 17th to 15th, al-

though the club is facing

another possible points

deduction.

Everton, who admitted

the breach, said they are

“satisfied” with the re-

duction though they now

face an anxious wait after

being charged in January

along with Nottingham

Forest for alleged breach-

es in their accounts for

2022-23.

That case must be

heard by 8 April, howev-

er, any appeal could take

that process to 24 May, the

week after the season has

concluded.

A Premier League

statement read: “Everton

FC appealed the sanc-

tion imposed against it

on nine grounds, each of

which related to the sanc-

tion rather than the fact of

the breach.”

“A three-person appeal

board concluded that the

independent commis-

sion which imposed the

10-point penalty “made

legal errors” on two

grounds.

It said the commission

was “wrong” to punish

Everton for being “less

than frank” over what it

told the Premier League

about its new stadium

debt.

The appeal board also

said the commission

was “wrong not to take

into account available

benchmarks” and that

a six-point sanction was

“broadly in line” with

English Football League

(EFL) guidelines, with

Sheffield Wednesday’s

six-point deduction in

2020 when their losses

were rising used as a

guide.

Everton said the ap-

point, I think we deserved

to win the game,” he said.

“Then in one loose mo-

ment, we lose the game. Of

course, we are very disap-

pointed about this, but we

also have to move on, and

we will do it.”

Iwobi scored a 97th-min-

ute winner, but his analysis

did raise an eyebrow after

a below-par performance.

United were rarely in the

game and Harry Maguire’s

late equaliser almost de-

nied Fulham what would

have been a well-deserved

win.

Agbonlahor was

shocked by Ten Hag’s

post-match interview and

claimed that the Red Devils

manager should be sacked

by Ratcliffe imminently.

“Have you ever heard

someone more delusional?

When a manager is de-

lusional like Ten Hag is

sounding now, it is time to

move him on,” Agbonlahor

told talkSPORT

“Come out and be hon-

est, your team were dread-

ful. Every player through

the whole 90 minutes.

Eighth home defeat this

season.

“United have been get-

ting away with bad perfor-

mances and still somehow

winning games, but today

they got exactly what they

deserved. Manchester Unit-

ed today were a disgrace to

that football club.”

There have been con-

cerns over Ten Hag’s future

at Old Trafford following

Ratcliffe’s arrival, who now

oversees the club’s sporting

affairs.

Sweeping changeeing

made behind the scenes as

right-hand man Sir David

Brailsford has already been

joined by new CEO Omar

Berrada and they have tar-

geted Newcastle’s sporting

director Dan Ashworth.

FORMER UFC fighter Dan

Hardy believes that Fran-

cis Ngannou will beat An-

thony Joshua when the

two heavyweights clash on

March 8 in Riyadh, Saudi

Arabia.

It is only the second pro

boxing bout for the MMA

fighter, who knocked Ty-

son Fury down in the third

round of their fight last

year and was a split-deci-

sion loser.

Joshua’s last fight was

against Otto Wallin in De-

cember, winning with a

convincing stoppage per-

formance.

The winner of Joshua

vs. Ngannou could well end

up meeting the winner of

Tyson Fury vs. Oleksandr

Usyk, who contest the un-

disputed heavyweight sta-

tus on May 18.

Speaking to Sky Sports,

Hardy said he sees Ngan-

nou coming out as the win-

ner.

“I’m going with Ngan-

nou genuinely,” he said.

“I picked Fury in the last

one. I felt Fury was going to

be able to catch him in the

fifth or sixth round once

he started to get tired. But

this for me is a much better

match-up for Ngannou.

“I feel like AJ’s easier to

hit, easier to rattle psycho-

logically and I feel like be-

INSIGHT

TUESDAY 27 FEBRUARY 2024www.businessday.ng sign up for https://bit.ly/bdnewsletters

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By Oluwatobi Ojabello

Nigeria faces a stagflation dilemma!

Regrettably, the

economy is now

grappling not only

with ination and

food ination but

also with rising

unemployment

rates—a

phenomenon

known as

stagation

NIGERIA finds itself entangled in a

challenging combination of soaring

inflation, economic downturn, and

mounting joblessness; a scenario com-

monly referred to as ‘stagflation’ by

economists. Stagflation is character-

ised by a simultaneous rise in inflation

and unemployment rates alongside

slowing economic growth.

Data from the National Bureau of

Statistics (NBS) confirm this, with a re-

cent publication showing a rise in the

unemployment rate from 4.2 percent

to 5.0 percent in the third quarter, a

staggering 0.8 percent increase.

Similarly, the same source reveals

that the inflation rate has increased

from 28.92 percent in December 2023 to

29.9 percent in January 2024, reflecting

a 0.98 percent increase, as reported

earlier by BusinessDay.

Thus, the simultaneous increase

in both macroeconomic indicators

– unemployment and inflation rates –

amidst sluggish GDP growth defines

stagflation, underscoring a troubling

economic scenario.

It would be misleading to claim

there’s no connection between Presi-

dent Bola Tinubu’s policies and the

increase in unemployment in Nigeria,

considering the evident signs from

various indicators, such as the rise in

living expenses following the removal

of subsidies.

Furthermore, the departure of

major corporations, such as P & G,

GlaxoSmithKline, Sanofi and partly

Shell for strategic purposes, amidst

soaring operational costs due to fuel

price hikes and currency volatility,

has exacerbated the economic chal-

lenges.

These corporations, which collec-

tively employed over tens of thousands

of individuals, have exited the country,

and their staffs have now joined the

ranks of the unemployed, further fuel-

ing the rise in unemployment rates.

The spillover effects of their depar-

ture are expected to intensify pressure

on the job market, compounded by the

relentless increase in inflation rates,

particularly in food prices that have

pushed food inflation rate to rise to

35.41 percent from 33.3 percent, a stag-

gering 2.11 percent increase, according

to data from NBS.

“I never imagined I’d be in this

situation,” laments an anonymous

victim of the multinational corpora-

tions’ retrenchment. “Losing my job

has turned my life upside down. It’s

not just about the income; it’s about

the sense of security and stability that

comes with it. I’m struggling to make

ends meet, and the uncertainty of find-

ing another job is overwhelming.” a

senior executive at a consumer goods

firm said on condition of anonymity.

This individual’s story reflects the

harsh reality faced by many affected

by these economic upheavals, high-

lighting the profound human toll of

such policies.

Regrettably, the economy is now

grappling not only with inflation and

food inflation but also with rising

unemployment rates—a phenomenon

known as stagflation. The ripple

effects of food price inflation have

pushed over 104 million Nigerians into

poverty, according to a recent World

Bank report.

With over 46 percent of Nigerians

already vulnerable due to the rising

cost of living, the uptick in the un-

employment rate to 5.0 percent adds

more fuel to an already volatile situa-

tion, ushering in a period of profound

hardship.

President Bola Tinubu’s defence

of these policies, citing their necessity

to attract investment and bolster gov-

ernment finances, seems to overlook

the immediate hardships faced by

ordinary citizens.

This stance contradicts the views

of John Maynard Keynes, renowned

economist, who famously remarked,

“There’s nothing like the long-run,

because in the long-run, everybody

will have died.”

In the face of such economic chal-

lenges, the government’s insistence

on prioritising long-term goals over

addressing immediate needs appears

out of touch with the harsh realities

on the ground.

As one observer, @waspapping on

‘X’, aptly put it, “The government is

playing with fire if they think Nigeri-

ans can endure hunger. Tamper with

fuel and electricity, etc., but make food

affordable.”

These figures depict a complex

economic situation in Nigeria, with

increasing inflation and unemploy-

ment alongside modest GDP growth.

The continuous rise in inflation

indicates growing pressure on Nige-

rians’ consumer purchasing power,

impacting the overall cost of living. At

the same time, the rising unemploy-

helped mitigate stagflation’s impact

on vulnerable communities. While

Brazil’s approach proved successful,

challenges persist, emphasising the

importance of continued policy action

and socioeconomic initiatives.

Similarly, other nations like Ar-

gentina, Turkey, India, and Venezu-

ela have faced similar struggles with

stagflation, each adopting unique

measures to address it. Despite Ven-

ezuela’s rich underground resources,

including crude oil, mismanagement,

political instability, and economic

sanctions have led to severe stagfla-

tion.

Despite efforts to control hyper-

inflation, Venezuela continues to

face social unrest and humanitarian

crises, highlighting the complex inter-

play between natural resource wealth,

political stability, and economic

management.

As Nigeria faces stagflation, with

unemployment at 5.0 percent and

inflation at 29.9 percent, alongside a

GDP growth dip to 2.74 percent in 2023

from 3.10 percent in 2022, it’s crucial

to balance addressing current issues

while aiming for lasting prosperity.

Learning from Brazil’s success in

managing stagflation to avoid Venezu-

ela’s situation is key. This requires

teamwork among policymakers and

stakeholders to ensure short-term

actions support long-term economic

growth, as advised by The Profes-

sional Updated forum.

To address these pressing issues,

Nigeria’s government should con-

sider adopting successful strategies

employed by other countries:

Implement targeted monetary

policies:

The Central Bank of Nigeria can play

a pivotal role in curbing inflation

and stimulating economic growth.

By adjusting interest rates and em-

ploying open market operations, the

central bank can effectively manage

the money supply, thereby controlling

inflationary pressures while fostering

investment and consumer spending.

Foster sustainable fiscal policies:

Prioritising fiscal discipline is essen-

tial. The government should focus on

enhancing revenue generation and

reducing unnecessary spending. This

includes implementing tax reforms

to broaden the tax base, curbing

wasteful expenditure, and promoting

transparency and accountability in

public finances. Adopting prudent

fiscal policies will create a conducive

environment for sustainable eco-

nomic growth.

Enhance social safety nets:

Strengthening social safety nets is

critical to support individuals and

families affected by rising unemploy-

ment and inflation. This entails ex-

panding social assistance programs,

providing targeted subsidies for essen-

tial goods and services, and investing

in skills training and job retraining

initiatives. These measures will help

displaced workers transition to new

employment opportunities, fostering

resilience in the face of economic

challenges.

Oluwatobi Ojabello, senior eco-

nomic analyst at BusinessDay, holds

a BSc and an MSc in Economics as

well as a PhD (in view) in Economics

(Covenant, Ota).

“Opeyemi, a co-worker at Omo-

Oba Autos along Olambe-Giwa Road,

expressed, ‘The impact of the recent

surge in inflation, attributed to subsi-

dy removal and currency unification,

has been keenly felt.’ He emphasised,

‘These measures have significantly

escalated our operational costs, par-

ticularly the expenses incurred in

clearing vehicles at Apapa-Lagos.’

With prices soaring, consumer

purchasing power has diminished,

leading to a noticeable downturn

in demand for their vehicles. The

economic uncertainty compounds

the challenges, making planning and

forecasting exceptionally daunting.’

‘To sell even a car is war,’ he added.”

In the midst of subsidy removal

and currency instability as well as

rising insecurity, businesses are

grappling with mounting challenges.

A Master Baker of Ase-Oluwa bread

shared his concerns, stating, ‘It’s crazy

to continue operations in this period.’

He highlighted how subsidy re-

moval has driven fuel costs sky-high,

significantly impacting bread produc-

tion expenses. ‘We cannot keep raising

prices,’ he lamented. ‘With queues

forming at fuel stations once more,

how can I expect my staff to continue

production?’ In light of these hurdles,

he made the difficult decision to close

shop until further notice, leaving his

employees without work.”

Amidst these challenges, there’s

a resounding call for leadership to

prioritise the immediate needs of the

populace while navigating the path to

long-term economic stability.

Several developing nations, in-

cluding Brazil, have grappled with

stagflation, marked by soaring in-

flation rates, escalating unemploy-

ment, and stagnant growth. Brazil’s

experience in the 1980s, highlighted

by data from the Brazilian Institute

of Geography and Statistics (IBGE),

underscores the severity of this crisis,

with inflation peaking at over 2,000

percent annually.

To combat stagflation, Brazil

implemented the Plano Real in 1994,

introducing a new currency and en-

acting stringent fiscal and monetary

policies. Market-oriented reforms,

such as trade liberalisation and pri-

vatisation, were pursued to enhance

competitiveness.

Additionally, social policies aimed

at reducing poverty and inequality

ment rate suggests challenges in the

labour market for Nigerians, affecting

economic productivity and household

income. While there is some optimism

in the modest GDP growth, it may not

fully offset the broader economic chal-

lenges faced by Nigerians posed by

inflation and unemployment.

Digging deeper, NBS further re-

veals that the unemployment rate

among youth aged (15-24 years) was

8.6 percent in Q3 from 7.2 percent in

Q2 and that the unemployment rate

in urban areas was 6.0 percent in Q3,

a slight increase of 0.1 from Q2 2023.

Gbenga Alawode, an information

technology economist, emphasised

the significance of the recent uptick

in youth unemployment, noting its

potential to exacerbate existing chal-

lenges. With youth unemployment

rising to 8.6 percent in Q3 from 7.2

percent in Q2, concerns loom over

the ability to provide employment

opportunities for young individuals,

risking widened economic disparities

and compromised long-term growth

prospects.

Additionally, Alawode highlighted

the delicate nature of the urban em-

ployment landscape, as evidenced

by the marginal increase in urban

unemployment to 6.0 percent in Q3

from 5.9 percent in Q2. While stability

is reassuring, even minor shifts could

signify underlying economic strains

or sector-specific hurdles, warranting

careful scrutiny and proactive mea-

sures to address emerging challenges.

Adejolu Joules, providing insights

from the perspective of an investment

analyst, emphasises the far-reaching

effects of the surge in youth unemploy-

ment on market dynamics.

“As youth form a significant con-

sumer group, their increased unem-

ployment can notably reduce spend-

ing and demand for various products

and services. This shift in consumer

behaviour may influence investment

choices, particularly in sectors target-

ing younger demographics.

“Conversely, the steadiness in

urban unemployment rates implies a

relatively stable economic situation

in urban areas. However, even slight

changes in these rates could have

significant impacts on investment

strategies, highlighting the impor-

tance of carefully assessing sectoral

performance and growth prospects

within urban economies.”

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