Muktari, Royal Exchange CEO Wins Most Outstanding CEO Award

22/02/2018

L-R: Alhaji Auwalu Muktari, Group Managing Director/CEO, Royal Exchange Plc receiving the award from Mr. Sam Amuka, the Publisher of Vanguard Newspapers at the ceremony.

The Group Managing Director, Royal Exchange Plc, Alhaji Auwalu Muktari, has been awarded the Outstanding Chief Executive Officer of the Year (Insurance), by the Independent Newspapers, during its 2017 Annual Awards ceremony which held on Saturday, February 17, 2018 at the Eko Hotel Banquet Hall, Lagos.

The award to Alhaji Auwalu Muktari, according to Mr. Ade Ogidan, Managing Director/Editor-in-Chief, Independent Newspapers, was in recognition of his extra-ordinary doggedness, dynamism, unparalleled energy and passion in impacting the insurance industry and excelling in a very difficult business terrain as a role model.

Commenting on the award, which was presented by the publisher of Vanguard Newspaper, Mr. Sam Amuka, Alhaji Muktari thanked the management of Independent newspapers for selecting him, from the over 50 insurance chief executives in Nigeria and acknowledged the support received from the Board and Management of Royal Exchange Plc, which has enabled him succeed as the Group Managing Director, following his appointment in 2016.

According to Alhaji Auwalu Muktari, “This award will only spur me and the Royal Exchange Team to strive to achieve even better financial results for the group. Our resolve as a 100-year company operating in Nigeria is to ensure we leave a great legacy for those coming behind.”

The goal for all of us in Royal Exchange is to ensure we make the company among the best insurance groups operating in Nigeria, he further added.

Profile of Alhaji Auwalu Muktari

He completed his 1^st degree in Business Administration and later his Masters Degree in Banking and Finance at Bayero University Kano in 1993 and 1995 respectively. He also attended Ahmadu Bello University Zaria where he obtained a Diploma in Insurance at Credit Level in 1983.

He started his working career with the Kano-based insurance company, Kapital Insurance Limited and rose to become Head of Re-insurance Department.

Alhaji Muktari joined Royal Exchange Assurance Nigeria (as it was then known) in 1995 as Branch Manager in Kano, with direct oversight and responsibility over the activities of Bauchi, Maiduguri and Yola offices of the company. In 2003, he became the Regional Director, Abuja.

He left Royal Exchange Plc to become the Managing Director/Chief Executive Officer of Yankari Insurance Co. Ltd in 2008, (later called Fin Insurance Co. Ltd) and returned to Royal Exchange as the Group Executive Director, Marketing and Sales in 2010 and was appointed the Group Managing Director in June, 2016.

Alhaji Muktari is a member of the Institute of Directors, Nigeria; Fellow of the Institute of Islamic Finance Professionals, Nigeria; Associate Member, Institute of Management Specialist, UK; Member, Chartered Insurance Institute of Nigeria; Associate Member, Institute of Management and is currently the President of the Institute of Sales and Marketing Management of Nigeria.

He has attended various Executive Management & Development programmes around the world and is an alumni of Harvard Business School, USA. A recipient of many industry awards, he was the BusinessToday Online Insurance CEO of the Year, 2016.

About Royal Exchange Plc

Royal Exchange Plc started operations in 1921 and continues to be driven by innovation and a determination to offer services that are of exceptional value to its customers. Following the recapitalization exercise in 2007, the company was reorganised into a group structure comprising Royal Exchange Plc as the holding company and five strategic subsidiaries namely:

Royal Exchange General Insurance Company Limited (Non-Life Insurance Services)
Royal Exchange Prudential Life Plc (Life Assurance Services)
Royal Exchange Finance and Asset Management Limited (Financial Advisory Services)
Royal Exchange Healthcare Limited (HMO and Health Insurance)
Royal Exchange Microfinance Bank Limited (Banking Services)

BPE Privatises 142 Firms Since Inception

Business Journal

22/02/2018

The Bureau of Public Enterprises (BPE) has privatized 142 enterprises from inception to date, Director General of the privatisation agency, Mr. Alex A. Okoh has revealed.

Receiving members of the House of Representatives Committee on Privatisation, led by its Chairman, Alhaji Ahmed Yerima who were on an oversight visit to the Bureau in Abuja on Thursday, February 15, 2018, Okoh said out of the number, 94 enterprises have been monitored while the rest have been not because “some were either assets sale or in the first phase of privatization and as such did not fall within the BPE’s monitoring purview”.

He said out of the privatised enterprises, 63 percent of them are doing well while the remaining 37 percent are not performing. The Director General attributed the poor performances of the non-performing enterprises to the operating business environment in the country in which many private or privatised public enterprises have either closed down or relocated to neighbouring countries.

Out of the 142 privatised enterprises, the Director General said, 63 were through core investor sale, nine through guided liquidation, one through sale to existing shareholders, five through public offer and two, through liquidation. He added that eight were privatised through private placement, 41 through concession, two through debt/equity swap and 11 through sale of assets.

Breaking down the enterprises by sectors, the Director General said, five were in the agric machanisation, eight in automobiles, seven in banking and insurance, six in brick making and six in the cement sector. The others, he listed are 10 in energy construction & services,12 in hotels &tourism, eight in oil & gas, four in paper & packaging, 19 in solid minerals & mining, 7 in steel & aluminum, four in the sugar sector, 26 in marine transport sector, 19 in power and one in telecoms.

The BPE helmsman informed the lawmakers that the Bureau has commenced a thorough review of the non-performing enterprises to ascertain the issues affecting their non- performance.

He listed the new initiatives embarked upon by the Bureau to include; the Afam Power & Yola Distribution Company privatisation, concessioning of the Terminal B of the Warri old Port, restructuring and commercialization of the Bank of Agriculture (BOA), partial commercialisation of NIPOST, restructuring and commercilaisation of the 12 River Basin Development Authorities (RBDAs), reform and commercialisation of three of the nation’s national parks and other initiatives in the power sector.

Earlier, Chairman of the House of Representatives Committee on Privatisation, Alhaji Ahmed Yerima had said that the Committee was at the Bureau to have first hand information on its activities; and to ascertain its compliance with the provisions of the 2017 Appropriation Act in line with the resolution of the House that all Ministries, Departments and Agencies (MDAs) complied with the Act.

The Chairman assured that the Committee would use it legislative powers to ensure that BPE’s mandate is not usurped by MDAs; and noted that any attempt in that direction was an infraction on the constitution of the country.

Market Closes Flattish as Banking Stocks Rebound… NSE ASI up 2bps

Business Journal

22/02/2018

The Local Bourse extended gains from the previous session as the All Share Index (ASI) marginally rose 2bps to close at 42,158.32 points while YTD return stayed flat at 10.2%.

Accordingly, investors gained N3.6bn as market capitalisation closed at N15.1tn. Today’s positive performance was on the back of a rebound in banking stocks- GUARANTY (+1.6 %), ZENITH (+1.5%) and UBA (+3.3%).

Similarly, activity level strengthened as volume and value traded rose 11.8% and 15.0% to 570.3m units and N5.3bn respectively.

Mixed Sector Performance
Sector performance today was mixed as 2 of 5 indices closed in the green, while 3 trended southwards. The Banking and Insurance indices advanced 1.1% and 0.7% respectively due to gains in GUARANTY (+1.6 %), ZENITH (+1.5%), CONTINSURE (+0.1%) and PRESTIGE (+0.02%). On the flipside, the Oil & Gas index declined the most, shedding 1.2% as investors sold off positions in CONOIL (-9.6%) and MOBIL (-4.5%).

The Consumer and Industrial Goods indices trailed, down 0.9% apiece, dragged by price depreciation in NESTLE (-0.7%), NIGERIAN BREWERIES (-2.7%), WAPCO (-1.8%) and CCNN (-4.3%).

Investor Sentiment Improves
Investor sentiment measured by market breadth (advance/decline ratio) improved to 0.7x from 0.5x recorded yesterday as 27 stocks advanced against 30 decliners.

The top performing stocks were JAPAUL OIL (+5.7%), CHAMPION (+4.8%) and CONTINSURE (+1.6%) while the worst performers were CONOIL (-9.6%), UNIC (-6.2%) and FIDELITY (-5.7%).

Despite the marginal gain today, the improvement in sentiment shows the market is gradually stabilizing. Thus, we expect performance in subsequent trading sessions to remain positive.

mCoin, 1st Crytocurrency Outside Internet Unveiled

Business Journal

22/02/2018

Introducing mCoin, the first cryptocurrency accessible on any mobile. mCoin is a unique first of a kind inclusive cryptocurrency, that makes it possible for the 3 billion people around the world who don’t have access to the Internet to take advantage of new kinds of services tied to block chain technology.
mCoin is powered by ONEm’s Global and scalable Platform, which has the ability to reach billions of people around the world even through traditional mobile without the Internet.

Unlike other Cryptocurrencies, people will have the ability to trade mCoin securely through their SMS based virtual wallets which is not connected to the Internet. Users will be able to earn mCoins through “Pseudo-Mining” which is a type of “Proof of Work” based on meaningful activities.

mCoin is bringing together a community of people outside the domain of the Internet who for the first time will be able to participate in sharing information that will have positive social and economical impact.

Millions of small businesses around the world will have access to mCoin through ONEm’s Sweb for Business, Market Place, mCatalogue and many social applications that use SMS and/or the Internet.
ONEm’s powerful ecosystem can be harnessed by Governments and Organizations to provide valuable services for their citizens who don’t have access to the internet, and in the same vein make use of mCoin’s underlying SMS accessible blockchain technology.

“It is exciting to see so many people who share in our vision for an inclusive Cryptocurrency outside of the domain of the Internet. People from all over the world are participating in mCoin Pre ICO and taking advantage of the attractive bonus packages now available as they see tremendous high growth potential of a cryptocurrency that can reach this very big un-tapped market” said Christopher Richardson, CEO of ONEm.

Arsenal, Emirates Make Football History in Sponsorship Deal

Business Journal

22/02/2018

Emirates, the world’s largest international airline, and Arsenal Football Club, yesterday announced a new sponsorship deal.

The sponsorship, the largest ever signed by the club and one of the biggest ever agreed in football, grants the airline a 5-year extension to their shirt partnership with the Club until the end of the 2023-2024 season. Nigeria is one of Arsenal’s biggest fan base. This big football news would delight them

The new sponsorship agreement strengthens one of the most recognisable and respected partnerships in sport. The agreement was formally finalised today by Arsenal Chief Executive Ivan Gazidis and Emirates President, Sir Tim Clark.

Gazidis said: “Our shirt partnership is the longest running in the Premier League and one of the longest relationships in world sport. This mutual commitment is testimony to the strength and depth of our unique relationship. Emirates are again demonstrating their great belief in our approach and ambition and their significantly increased investment will help us continue to compete for trophies and bring more success to the club and our fans around the world.”

“Emirates is a great partner for Arsenal – a world class brand with a truly global reach. The airline plays a significant role in our ambitions to extend our influence and following around the world. The new deal, extending our shirt partnership until 2024, underlines how much both organisations value and benefit from the relationship.”

In addition to being shirt sponsors, with the Emirates brand continuing to appear on Arsenal’s playing and training kits, Emirates will provide access to their award winning planes for Arsenal to use on pre-season tours. Emirates will retain marketing rights to develop campaigns and initiatives around the world. Arsenal’s home will continue to be known as Emirates Stadium up to 2028, as part of the extension agreed in 2012.

Emirates President, Sir Tim Clark, said: “Arsenal’s strong appeal and influence around the globe, combined with their ambitions as a Club makes them an ideal partner for Emirates, with values that reflect ours as a brand. As a long-standing supporter of football, we are passionate about the game and are a proud partner to the team.”

“As a business, we are hugely committed to supporting sports all over the world and our relationship with Arsenal is no different. Our partnership with Arsenal Football Club is a great combination of two truly global brands and we’re very pleased to have extended this relationship for five more years – connecting fans from around the world with one of the greatest teams in the world.”

Arsenal fans in Nigerian will continue to see their favorite Arsenal team in Emirates flying colours.

FinTech in Africa Targets $3bn by 2020

Business Journal

15/02/2018

Millions more people in Africa now have access to financial systems thanks to cashless systems using digital technology, and more and more people are seeing the benefits of mobile banking, according to Ecobank, the leading independent pan-African banking group.
Ecobank is the main sponsor at the Africa Tech summit currently taking place in Kigali, Rwanda. Today, Nshuti Lucy Mbabazi, Assistant Vice President, Push Payments for the Ecobank Group will take part in a panel looking at delivering a cashless society in Africa.
Ecobank has spearheaded the development of cashless payment systems in Africa through its mobile app and other products. Africa is now at the forefront of fintech with 57.6% of the world’s 174 million active registered mobile money accounts (100.1 million) in Sub-Saharan Africa. Fintech in Africa is predicted to grow from US$ 200 million to US$ 3 billion by 2020.
Ecobank’s mobile app allows customers in any of the 33 African countries in which it operates to check balances, pay bills and merchants, and many other services. The mobile app offers banking services at a much cheaper cost than traditional banking, thus making it much more accessible to millions of users thanks to the rapid growth in mobile phone use. Rwanda, where the summit is taking place, has the second highest use of mobiles in Africa, with more than 50% of the population unique subscribers. Kenya has the highest penetration rate of almost 60% of the population.
As Ecobank works seamlessly across 36 countries in total, Ecobank is also the only bank that allows customers to transact more easily across borders.
Speaking at the Africa Tech summit, Nshuti Lucy Mbabazi explained the importance of fintech and moving towards a cashless society: “Digital technology is central to what we do at Ecobank. Technology offers us great opportunities to open up new markets, increase choice and speed delivery of services.”
“For instance, Rwanda, where the summit is taking place, is seeking to move from a cash-based economy to a digital one. The number of digital transactions in Rwanda increased by 11 per cent in the first half of 2017 from 1.37 million the previous year to 1.53 million in the same period, and more and more merchants and dealers are becoming access points.”
“Rwanda has had a 26% growth in the volume of transactions from 8.6 million to 119 million in 2016/17, representing an increase of a third in value from Rwf 469 billion to Rwf 622 billion. Point of sale (POS) transactions in Rwanda have almost doubled in volume from 270,084 to 523,473, doubling the cash value to Rwf 32 billion.”
“Overall fintech in Africa will grow from around US$ 200 million currently to US$ 3 billion by 2020,” said Ms Mbabazi.
“Going digital provides not just better services and connectivity, but enables banks and businesses to unlock productivity and play a role in development.”
Ms Mbabazi will be joined by other panellists including Norman Munyanpunda, MTN Rwandacell’s Chief Business Officer, and Patrick Buchana, CEO of AC Group.

PZ Cussons Chemistry Challenge 2018 Commences Registration

Business Journal

15/02/2018

Nigeria’s number one pure science competition, PZ Cussons Chemistry Challenge (PZCCC) competition has commenced registration for its 5^th edition.

The competition which is an initiative of the PZ Cussons foundation and supported by some of its premium brands; Premier and Nunu Milk, is designed to promote the study of chemistry through open competition amongst public and private secondary schools in Lagos.

Since its inception in 2013 the PZ Cussons Chemistry Challenge has grown from barely over 800 students entering the competition to 3000 in 2017 being its most successful edition.

In a statement issued by the company to announcement PZCCC 2018, the Executive Director for Brand Development & Activation, Christos Giouras said that the continuous increase in the number of participants each year was a testament to the fact that the objectives of the competition was being achieved.

“Our main objective with the PZ Cussons Chemistry Challenge is to stimulate and inspire the learning of Chemistry among students and raise their IQ, while demonstrating the relevance of chemistry in our society. To see how the competition has grown over the years is very inspiring, and we are indeed pleased to be kicking off the 5^th season. As part of our growth process we have increased the stakes this year, the overall winner will receive a prize money of N1m amongst other prizes for the schools, the teachers aren’t left out as well” he said.

The competition is divided into four stages and is quite tasking, as it has been designed to challenge the IQ of contestants; the general tests, practical tests and then the live quiz, only successful contestants from each of the stages progress and eventually the best six will battle it out at the final to produce the PZ Cussons Chemistry Challenge Champion for 2018.

According to PZ Cussons, the overall top three winners will receive “a trophy, a medal and N1, 000,000, N750, 000, and N500, 000 respectively. Additional prizes also include laboratory equipments for the schools and teachers who came out tops in the Teacher’s Aptitude Test segment.

Schools in Lagos are advised to take advantage of this platform to also encourage the study of science, particularly Chemistry thereby inspiring the junior ones to pick interest in the study of Chemistry across all secondary schools. Interested students and schools are required to register online at www.pzchemistrychallenge.com.

Entry closes on Friday, 16 March 2018. Science enthusiasts and the general public can also take part in the online chemistry challenge and stand the chance to also win exciting prizes.

The 2018 edition promises a lot more excitement and engagement as Premier and Nunu Milk will be on ground to provide the needed support for the competition and participants.

PZ Cussons Nigeria Foundation has been helping Nigerian communities by supporting projects in the areas of education, potable water, health and empowerment. The Foundation has completed over 58 projects in different parts of the country after the launch in 2007.

Equities Market Sustains Gains… NSE ASI up 1.0%

Business Journal

15/02/2018

The equities market sustained gains yesterday as the All Share Index (ASI) grew 1.0% to 42,604.40 points while YTD return improved to 11.4%. Consequently, market capitalisation increased by N155.2bn to N15.3tn.

Yesterday’s performance was majorly driven by price appreciation in FBNH (+8.2%), GUARANTY (+2.0%) and DANGCEM (+0.6%). Similarly, activity level improved as volume and value traded inched 18.1% and 33.0% higher to 615.1m units and N6.3bn respectively.

Bullish Sector Performance
Performance across sectors was largely bullish as 4 of 5 indices closed in the green while one closed flat. The Banking index led gainers, up 1.3% due to a rally in GUARANTY (+2.0%), UBA (+4.2%) and ACCESS (+2.4%).

The Industrial and Consumer Goods indices trailed, rising 0.9% and 0.8% respectively as investors took positions in DANGCEM(+0.6%), WAPCO (+2.0%), NIGERIAN BREWERIES (+1.9%) and DANGSUGAR (+4.8%). Similarly, the Oil & Gas index appreciated marginally by 1bp following gains in SEPLAT (+1bp). The Insurance index however closed the day flat.

Investor Sentiment Stays Positive on Bargain Hunting
Investor sentiment, measured by market breadth (advance/decline ratio) remained positive despite weakening to 1.2x from 1.3x recorded the previous day as 29 stocks advanced relative to 24 stocks that declined.

The best performers were FBNH (+8.2%), WAPIC (+6.3%) and MAYBAKER (+5.0%) while CAVERTON (-8.8%), COURTVILLE (-8.7%) and FIRSTALUM (-7.5%) led laggards. Following the rebound in the market yesterday and further gains recorded today, we believe the positive trend will be sustained in the last trading day of the week as investors continue to seek for bargain opportunities in the market.

Nigeria’s Headline Inflation Rate Drops to 15%

Business Journal

15/02/2018

According to Cordros Capital, Nigeria’s headline inflation rate commenced 2018 with sustained deceleration (for the 12th consecutive month), which it started last year, moderating to 15.13% y/y (compared to 15.37% in December 2017).

January’s decline was widely expected, as the figure came in line with both our forecast and Bloomberg compiled average estimate of 15.14% and 15.13% respectively.

The high base of January 2017 supported the moderation recorded during the period, as the impact of the lingering fuel scarcity, particularly in the Federal Capital Territory (FCT) and some northern states, during the month appeared muted.

On month-on-month basis, the headline index increased by 0.80% (vs. the unexpected 0.59% recorded in the previous month).

We think the Monetary Policy Committee (MPC) will further hold the line on its policy stance, as the current inflation rate (at 15.1%) remains at a growth inhibiting level and the current level of real interest rate is appropriate to equilibrating the objectives of price stability, exchange rate stability, and output stabilisation.

The MPC is unlikely to consider a rate cut until inflation rate drops circa 100 bps – 150 bps below the current MPR of 14%. In our view, that may not be earlier than May 2018 (we forecast inflation rate of 12.73% y/y).

Though still high, food inflation increased at a slower pace of 18.92% y/y in January, compared to 19.42% y/y in the preceding month, driven by a faster rate of increase in imported food prices.

Core inflation was unchanged at 12.10% y/y during the review period, failing to reflect the overall impact of the lingering fuel scarcity which resulted into higher fuel prices across most states in the country.

While noting potential upside and downside risks to inflation rate in 2018 — which could stem from intense crude oil price shock and domestic production turbulence, and higher-than-expected crude oil price and stronger domestic production respectively – we forecast the headline inflation rate to average 13.15% for the year.

Our expectation is hinged on naira exchange rate stability, generally unchanged energy (fuel and electricity tariff) prices, delayed upward review of the national minimum wage, and average to above-average domestic food production.

Specifically, we estimate the headline inflation rate to increase at a slower pace of 14.66% y/y (1.09% m/m) in February, supported by the relatively high base of the corresponding period of 2017.

Equity Market Halts 7-day Bearish Run… NSE ASI up 1.1%

Business Journal

15/02/2018

The local bourse halted a 7-day bearish run yesterday as the All Share Index (ASI) rose 1.1% to close at 42,171.80 points while YTD gain improved to 10.3%.

Accordingly, investors gained N166.4bn in value as market capitalization increased to N15.1tn. Today’s positive performance can be largely attributed to buying interest in Banking and Consumer counters with ZENITH (+5.0%), UBA (+6.3%) and NESTLE (+1.9%) weighing the most on performance.

Also, activity level improved as volume and value traded advanced 10.7% and 28.1% to 520.7m units and N4.7bn respectively.

Banking Sector Leads Gainers
Sector Performance was largely positive as 4 of 5 indices closed northwards. The Banking index recorded the highest gain – up 2.7% on renewed interest in Banking stocks – driven by ZENITH (+5.0%), UBA (+6.3%) and ACCESS (+5.0%).

Similarly, price appreciation in MANSARD (+4.0%), WAPIC (+4.9%), NESTLE (+1.9%) and NIGERIAN BREWERIES(+0.9%) pushed the Insurance and Consumer Goods indices 1.3% and 1.0% higher respectively.

The Industrial Goods index followed, up 0.2% on the back of gains in BETAGLASS (+4.9%) and BERGER (+4.8%). On the other hand, the Oil & Gas index was the lone loser, falling 0.3% largely due to sell pressures in FORTE (+1.8%) and TOTAL(+0.4%).

Market Breadth Improves
Market breadth (advance/decline ratio) which measures investor sentiment, improved to 1.3x from 0.4x recorded the previous day consequent on 25 stocks advancing against 19 stocks that declined.

The best performing stocks were SKYE (+10.0%), FCMB (+9.8%) and DIAMOND (+7.8%) while FIRSTALUM (-9.1%), LASACO (-5.9%) and ABCTRANS (-5.0%) were the worst performers. In line with expectation, the market rebounded today.

Following the improvement in investor sentiment, we anticipate positive market performance till the end of the week. We also expect sustained improvement in market activity as investors take position in stocks with attractive valuation.
In the NASD OTC Exchange, total volume and value traded stood at 577,500 units and N89.3m respectively.

IDC Forms Council to Drive Tech, Innovation in Gulf Region

Business Journal

15/02/2018

International Data Corporation (IDC) yesterday formally announced the formation of its new CIO Advisory Council, an independent industry body tasked with spurring collaboration, incubating innovation, and accelerating the proliferation of new technology trends across the Gulf region.

“The CIO Advisory Council will provide strategic direction to IDC in terms of research coverage, thereby assisting us in our quest to provide the region’s ICT professionals with a trusted, neutral, and secure source of information, advocacy, and resources for enhancing their processes and shaping the technology landscape of tomorrow,” says Jyoti Lalchandani, IDC’s vice president and regional managing director for the Middle East, Africa, and Turkey. “Its members have also been instrumental in shaping the agenda for the upcoming IDC Middle East CIO Summit 2018 , and will chair a number of informative sessions at the event.”

Membership of IDC’s CIO Advisory Council is strictly by invitation only and is restricted to senior executives from the region’s foremost end-user organizations. The founding members include the following esteemed leaders, whose influence on the region’s ICT environment extends far beyond the widely respected organisations they represent:

E. Wesam Lootah, CEO, Smart Dubai Government Establishment
Fuad Al Ansari, Vice President of IT, ADNOC Refining
Yahya Abdulrahman, Executive Director of IT & Communications, Saudi Electricity Company
Ahmad Almulla, Executive Vice President of Corporate Services, Emirates Global Aluminium
Salim Al Ruzaiqi, CEO, Information Technology Authority, Oman
Robert Teagle, Group CIO, Kuwait Food Company (Americana Group)

One of the members’ first tasks is to sit on the official judging panel that will review nominations for the IDC CIO Excellence Awards 2018, which will honor those ICT leaders that have excelled in conceptualizing and delivering game-changing digital transformation initiatives for their organizations. With five categories in total, the winners will be announced during the IDC Middle East CIO Summit 2018 on February 21-22, and the Council’s members will be personally handing out the awards.

Hosting more than 200 of the region’s most influential ICT leaders at Dubai’s JW Marriott Marquis, the IDC Middle East CIO Summit 2018 will combine an eclectic mix of presentations, panel discussions, focus groups, and workshops. The event’s agenda has been designed to help the region’s CIOs exploit the transformative powers of innovation accelerators such as robotics, artificial intelligence, next-gen security, and the internet of things.

Global Airlines Financial Monitor: January 2018

Business Journal

15/02/2018

The initial airline financial results from the final quarter of 2017 indicate that the industry-wide EBIT profit margin remained broadly unchanged during Q4 relative to the same period in 2016, at a robust 10.7% of revenues.
Global airline share prices rose by 2.9% in January, with increases in Europe and Asia offsetting a modest decline in N. America. The airline index has fallen broadly in line with the global equity market during the early-Feb sell-off.
Industry-wide passenger yields in late-2017 were largely unchanged in year-on-year terms. We forecast passenger yields to rise modestly in 2018 alongside a strengthening in global economic activity and rises in key input costs.
Oil prices rose to a three-year high during January, but fell back sharply in early-February driven by record-high levels of oil production in the US. At the time of writing, the Brent crude oil price is currently around $63/bbl.
Passenger and freight volumes grew by 7.6% and 9.0% respectively in 2017 as a whole and are both carrying solid momentum into 2018. The passenger load factor posted a record high for a calendar year in 2017 (81.4%), while the freight load factor climbed by 2.5 percentage points compared to 2016.
Stronger global trade conditions have helped to support premium-class demand. Premium’s share of total international passenger revenues increased to 27.0% in the first 11 months of 2017, up from 25.9% a year ago.

AMCON Takes Over Daily Times Plc

Business Journal

14/02/2018

In continuation of its recovery activities in the new financial year, the Asset Management Corporation of Nigeria (AMCON) yesterday took over the assets of the beleaguered Daily Times Nigeria Plc, a foremost media establishment in the country through Mr. Gbenga Fakoya, SAN.

Recall that the Federal Government of Nigeria held 96.05% shares in Daily Times of Nigeria Plc. through NICON Insurance Plc. In 2004, the Federal Government during the tenure of former President Olusegun Obasanjo, called for bids from the general public as it sought to divest its stake in oldest newspaper conglomerate.

Folio Communications Limited, owned by Fidelis Anosike and his brother Noel Anosike tendered a bid for the said shares and was confirmed by the Bureau for Public Enterprises (BPE), as the most preferred bidder for the shares. The BPE sold to Folio at the cost of N1.25 billion.

However, since the 2004 privatisation exercise, Folio Communications has been embattled with court cases following a loan of N750 million from Hallmark Bank Plc, which it secured to enable it pay the Federal Government for the newspaper company.

According to reports, Folio also got DSV Limited promoted by Senator Ikechukwu Obiorah to invest the sum of N500 million in the purchase of the shares with the understanding that upon concluding the transaction, DSV would be entitled to 40 per cent of the shareholding of the media empire.

A year after the sale, 2005 to be precise, Hallmark Bank Plc (now defunct), Folio Communications Limited, promoted by the Anosike brothers/Daily Times of Nigeria Plc and DSV Limited, promoted by Senator Ikechukwu Obiorah commenced several legal battles over the real ownership of the newspaper.

In 2010, AMCON purchased the loan from the then Afribank Plc, which later became Mainstreet Bank. Consequently, Folio Communications Limited also dragged AMCON to court on several claims while Senator Obiorah commenced an action against the Corporation in the name of Daily Times Plc at the Federal High Court vide suit no: FHC/L/CS/ 1254 /15 – the Daily Times Nigeria Plc vs AMCON. Both suits were however struck out by the respective courts.

But having exhausted all avenues of peaceful resolution over the huge outstanding debt owed AMCON by the Daily Times Plc, the Federal High Court on February 1, 2018, presided over by Honourable Justice I. N Buba ordered AMCON to take over the Daily Times Plc.

The court by the said order retrained the directors, shareholders, agents, servants, privies and /or employees howsoever described from preventing AMCON from taking possession of the Daily Times Plc.

AMCON has complied by effectively taking over the Daily Times on February 13, 2018. Moreso, AMCON is interested in the recovery of the debt and not the ownership of the media empire.

Editors to Lay Plaza Foundation March 1

Business Journal

14/02/2018

The foundation stone laying ceremony for the multi-purpose Editors’ Plaza owned by the Nigerian Guild of Editors (NGE) will hold on Thursday, March 1, 2018 at the project site located in the Guzape District of Abuja.

Former Governor of Akwa Ibom State, Senator Godswill Akpabio, who is also the Senate Minority Leader will chair the event while foremost industrialist and Chairman of BUA Group, Alhaji Abdulsamad Rabiu, will perform the traditional ‘turning of the sod’ to herald the construction of a befitting plaza for Nigerian editors in the Federal Capital Territory (FCT).

The Minister of the Federal Capital Territory, Alhaji Mohammed Bello, and his Information and Culture counterpart, Alhaji Lai Mohammed are expected to grace the occasion.

Other dignitaries expected at the event are governors, heads of ministries, departments and agencies (MDAs), members of corporate Nigeria, the business community, media executives, etcetera.

The journey of the proposed Editors’ Plaza started on April 10, 2014 with a fund-raiser in Abuja under the leadership of the then President of the Guild, Mr. Femi Adesina. The goal was to raise funds to build a befitting secretariat for the Guild in Abuja to be named as Editors’ Plaza. It is worthy to note that in its over 55 years of existence, the Guild does not have a secretariat of its own.

Part of the money realized from the fund-raiser has been used to acquire a property in Ikeja area of Lagos State christened Editors’ House which functions as the Guild’s secretariat in Lagos.

The President of the Guild, Mrs. Funke Egbemode, said part of the proposed Editors’ Plaza in Abuja would serve as the Guild’s secretariat in Abuja while the rest would be leased to the public as offices.

When completed, the multi-storey edifice which sits on an expansive 5,600Sqm piece of land will add to the vastly changing Abuja landscape.

According to Egbemode, the construction of the Editors’ Plaza offers friends of the Guild, individuals and corporates, and all advocates and lovers of free press an opportunity to partner with Nigerian editors whom she described as the torchbearers of the nation’s democracy and bulwark against tyranny.

PenCom’s Micro Pension Initiative Suffers Setback

Business Journal

14/02/2018

There are indications that the micro pension initiative by the National Pension Commission (PenCom) which was conceived to capture about 250,000 workers from the informal sector has suffered significant setback.

PenCom in a statement in October 2016 maintained that it would release the guidelines in mid-2017 and commence the scheme by end of the year. This, vision was halted by the new leadership in the commission.

The assumption of leadership by the Acting Director-General, Mrs. Aisha Dahiru-Umar, seemed to have slowed down the micro pension scheme due to lack of Board for the Commission.

A top official at the Commission who spoke under the condition of anonymity affirmed that there is no activity in place at the moment to kick-start the scheme.

Another official further said the lack of a substantive DG and Board is affecting the functions of the Commission.

According to the Commission, the micro pension scheme is expected to help boost the pension contributors to 20 million Nigerians by 2019 and 30 million by the year 2024. It is also expected to generate about N3 trillion to the pension assets, while mobilising about 12 million contributors within five years.

However, the implication of the scheme not taking off as planned is that Nigerian workers in the informal sector would continue to be susceptible to old age poverty.

Micro pensions is a scheme targeted at self-employed people, especially those with irregular income, usually in the informal sector and are largely financially uninformed with limited or no access to financial services especially pension plan. This segment, which is estimated to be 70 per cent of the country’s population, largely exists in Nigeria as artisans and self-employed persons.

Former Head, Micro Pension Department at PenCom, Mr. Polycarp Anyanwu, had earlier said the commission has been collaborating with chambers of commerce, as well as other government agencies in charge of small businesses such as Small and Medium Enterprise Development Authority (SMEDAN) and is working on guidelines for the commencement of the scheme.

Anyanwu explained that micro pension initiative exists for the provision of pension coverage to self-employed persons.

He said: “Micro pension initiative exists for the provision of pension coverage to self-employed persons. In Nigeria, it covers three strata of income earners namely lowest, middle and high income earners. The commission is working assiduously to enroll 250,000 contributors within six months of the commencement of the initiative. The scheme is an offshoot of the pension industry five year strategic plan to expand the coverage of the CPS to 20 million contributors by 2019.

“The commission is also targeting the self-employed in various trades and professions in Nigeria such as artisans, accountants, lawyers, mechanics, tailors, market men/women, hair dressers, architects, engineers among others. We have reviewed the implementation of micro pension in other jurisdictions like Kenya and Ghana; formulated Guidelines and Framework on Micro Pension; consulted licensed Pension Industry Operators and enhanced its information and communications technology capacity to accommodate the scheme.

“The scheme will avail the contributor access to regular stream of retirement income at old age and improves living standards of the elderly. The contributors are to benefit from the various incentives to be offered by the PFAs adding that the initiative would deepen financial literacy and inclusion; secures financial autonomy & independence of retirees; passage of wealth to survivors in the event of death; increases National Savings and long term funds; promote growth development of the capital, mortgage and insurance markets and have positive effect on the national economy as pension assets increases”, he added.

Highlighting the challenges of the scheme, Chief Executive, Stanbic IBTC Pension Managers Limited, Mr. Eric Fajemisin said though micro pension scheme is good for the country, it has challenges.

These challenges, according to him, include insufficient awareness and negative perception towards it, modest financial literacy in the country, high cost of promoting awareness on the CPS, lack of reliable data on the informal sector and low buy-in by unions in the pension sector, among others. These challenges, he noted, must be addressed prior to commencement of the scheme and thereafter.

Fajemisin, on the other hand, said the micro pension scheme, when finalised, would ensure improved standard of living for the elderly, guarantee the safety of funds and may provide access to other incentives, such as mortgage facilities and health insurance.

He said other benefits include flexible contribution remittances, the opportunity to make withdrawal prior to retirement and the enhancement of financial inclusion and attainment of economic stability objectives.

He described the proposed micro pension scheme as having the capacity to deepen asset accumulation in Nigeria, which will also provide the vital capital required for investment in critical sectors of the economy.

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