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‘Information on Looted Funds Will Enhance 2018 Budget’

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President Buhari presenting the 2018 federal budget to the National Assembly in Abuja yesterday.

BudgIT, a civic society organisation says transparent information on looted funds from the federal government will enhance the non-oil revenue plan of the 2018 federal budget.

A statement on the budget by BudgIT reads in part:

BudgIT welcomes the relatively early presentation of the 2018 Budget and accepts that the economy requires significant fiscal injections to sustain and accelerate economic growth. Significant investment in infrastructure, education, agriculture among others are also important if Nigeria’s hope to diversify government revenue and export base is to be sustained.

Improvement in tax administration which the government hopes to push ahead within 2018 as highlighted in Mr. President’s budget presentation speech is also welcome.  Equally important is the need to end the cycle of poverty through some form of social intervention.

In all, the 2018 proposed budget of N8.6tn and its guiding framework captures a majority of the objectives and philosophy which scholars, researchers and economist are inclined to think about when the need for fiscal injections arises. The philosophy of the current government to spend big due to the relatively slow economic activities is welcome and clearly understood.

As such, the capital expenditure allocation of N2.42tn is huge in nominal terms when compared to previous budgets. Given that almost all capital expenditure allocation will be financed primarily by debts, we hope that the line items in the budget will reflect such.

Nigeria cannot continue to borrow to buy cars, computers, retrofit office buildings at the detriment of the critical mass needed to end the cycle of poverty and improve the economy. We hope the biggest proportion of capital allocation will go into improving infrastructure, expanding access to education, health among others.

Also, we believe the revenue projection of N6.6tn is very optimistic considering the total retained revenue of the federal government including non-oil and oil-related revenue in 2015 and 2016 was N2.8tn and N2.6tn respectively.

Federal government non-revenue in the first six months of 2017 stood at N587bn and no significant facts suggesting the figure would double or triple in approaching the new fiscal year. Oil revenue for the 2018 fiscal year is projected at N2.332tn while the biggest bracket of government expected revenue is projected to come from the non-oil sector at N4.16tn.

We accept that the budget benchmark is of $45 per barrel is within the band but there has to be excessive caution in keeping the peace of the Niger Delta which is a crucial element in ensuring optimal production.

Overall, the budget proposal will need proper interrogation from all stakeholders and analysis will be better when the line items are released to the public in a timely manner in line with the fiscal responsibility act which the president swore to uphold.

Also, given that the biggest proportion of government projected revenue will come from the non-oil sector, Government will need to be more transparent about government finances including releasing more information on actual recoveries from loot purported returned by former public officials.

About BudgIT

BudgIT is a civic organization that applies technology to intersect citizen engagement with institutional improvement, to facilitate societal change. A pioneer in the field of social advocacy melded with technology, BudgIT uses an array of tech tools to simplify the budget and matters of public spending for citizens, with the primary aim of raising the standard of transparency and accountability in government.

‘MTN Nigeria Will Not Go Public in April 2018’

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MTN

Despite the recent assurance from Mr. Rob Shuter, Group CEO of MTN that its Nigerian operation will enlist on the Nigerian Stock Exchange (NSE) in April 2018, a senior official says the company is still thinking through the process of going public in Nigeria due to the huge fine imposed on it by the Nigerian Communications Commission (NCC).

The official told Business Journal in Lagos that the announcement of the April 2018 date was meant to deflect intense pressure on the company from the Nigerian government and the NCC.

He maintained that the company will possibly shift the date of going public as much as possible until the pressure on them wanes.

9mobile: Hanging in the Balance!

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9mobile
l-r: Vice President, Regulatory and Corporate Affairs, Ibrahim Dikko; Chief Executive Officer, Boye Olusanya; Chief Financial Officer, Funke Ighodaro and Vice President, Marketing, Adebisi Idowu all of 9mobile at the launch of 9mobile’s new brand identity.

When the curtain fell on Etisalat Nigeria in the middle of 2017 over a controversial loan of $1.2 billion from 13 banks, a new entity known as 9mobile rose from the ashes of the defunct Etisalat Nigeria. Today, the fate of 9mobile hangs in the balance as it hunts desperately for new investors to keep it afloat in the market.

For the fourth largest network operator in Nigeria, the journey from Etisalat Nigeria to 9mobile is better told in movies than reality.

The decision of the management to expand its network exponentially within a short time-frame led them into a $1.2 billion facility with a consortium of 13 Nigerian banks, leading to the eventual collapse of the Etisalat brand in the country.

9mobile
l-r: Vice President, Regulatory and Corporate Affairs, Ibrahim Dikko; Chief Executive Officer, Boye Olusanya; Chief Financial Officer, Funke Ighodaro and Vice President, Marketing, Adebisi Idowu all of 9mobile at the launch of 9mobile’s new brand identity.

As 9mobile wobbles in the market, putting its corporate future in doubt, the new management team decided to seek new investors who must acquire ‘assets and liabilities’ of the floundering operator. That decision has left the company with a deluge of serious and unserious bidders, just like hungry vultures hovering over a helpless, dying animal.

The Bidders

At the last count and still counting, 17 local and international firms have signified interest in form of Expression of Interest (EoI) to acquire in 9mobile.

These bidders include Dangote Group, Helios Towers, MTN Group, Vodacom, ntel, Airtel, Virgin Mobile, BUA Group, Morning Side Capital Partners, Africell, Obot Etiebet & Co., Tel-ology Holdings Limited, Ericsson, De-elim Services Limited, Veittel, AB-Bro Limited, Hamilton and George International Limited etc.

This long list of potential buyers does not inspire confidence in the future of 9mobile. Rather, it tells the story of a company on the throes of death and decay, with no viable plan of survival in the highly competitive mobile network market in Nigeria.

Industry analysts have worried that even if 9mobile is successfully sold off to any of the buyers angling for it at the moment, the prospect of turning the company around towards the path of survival, stability and growth in the foreseeable future would be a daunting task for the new owners.

Invariably, the future looks horribly bleak for 9mobile!

Emirates Enhances Nigeria Service, Special Dubai Fare

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emirates

Emirates has announced it will reinstate its second daily service to Lagos and resume operations to Nigeria’s capital city, Abuja, with four weekly flights from 15 December 2017.

Similar to the current daily service between Dubai and Lagos, the added frequencies to Lagos will be operated with Emirates’ Boeing 777-300ER aircraft, offering eight private suites in First Class, 42 lie-flat seats in Business Class and 310 spacious seats in Economy Class. The reinstated service to Abuja will be served by a 360-seat Boeing 777-300 in a three-class configuration.

However, Emirates will be offering Nigerian travellers the opportunity to visit Dubai with a special Economy and Business Class return airfare that includes a free third piece of luggage of up to 23 kg.

Under the special offer, an Economy Class ticket from Lagos to Dubai costs USD899 and Business Class USD3499. The fare offer is for a limited time only and tickets must be booked between 1st November and 17 November 2017.

Travel must take place between 1st November 2017 and 30 March 2018. The cost of the ticket includes airport taxes. Seasonality and blackout dates apply as well as other terms and conditions.

“Nigeria is a key market for Emirates and its importance is reflected by the fact that we will add 11 weekly flights between Dubai and two major cities in Nigeria, Abuja and Lagos. This is great news for both our business and leisure customers and highlights our commitment to providing travellers in Nigeria with not only the very latest in aircraft innovations but also increased connectivity,” said Orhan Abbas, Emirates Senior Vice President, Commercial Operations, Africa.

“We thank the Nigerian authorities for facilitating the reinstatement of our flights to Abuja and Lagos which will, in turn, greatly benefit Nigerian tourism, trade, investment and economy at large.” added Mr Abbas.

By operating a double daily service to Lagos and four weekly flights to Abuja, Emirates will offer travellers in Nigeria very convenient and comfortable access to Dubai, and onwards to other destinations on the Emirates network, including more than 35 destinations in the Middle East and Far East, 18 destinations in South Asia and over 20 destinations in the Americas and Australia. Many of these destinations are served by Emirates’ iconic A380 aircraft.

Apart from the increased passenger capacity, the new flights will provide up to 23 tonnes of cargo capacity per flight, giving businesses and traders more opportunities for increased imports such as electronic goods, construction equipment and pharmaceuticals, and exports such as fresh produce and perishables.

The added Lagos flight EK781 will depart Dubai every day at 0355hrs and arrive in Lagos at 0905hrs. The return flight EK782 will depart Lagos at 1240hrs and arrive in Dubai at 2255hrs. The Abuja flight EK785 will depart Dubai every Monday, Wednesday, Friday, and Saturday at 1035hrs and arrive in Abuja at 1535hrs.

The return flight EK786 will depart Abuja at 1855hrs and arrive in Dubai at 0435hrs the next day. The arrival of the flight in Dubai is conveniently timed to enable a shorter transit period for customers connecting to Emirates’ early morning flights to popular destinations such as New York, Houston, London, Beirut, Bangkok, Jeddah, Medina, Singapore, Beijing, Shanghai, Guangzhou, Mumbai, Delhi and Sydney, amongst others, which are popular cities for Nigerian travellers.

Customers on Emirates can look forward to the famed on board service and hospitality from its multi-national cabin crew including Nigerians, as well as enjoy regionally and internationally inspired meals and complimentary beverages.

Passengers can also enjoy Emirates’ award winning ice entertainment system, offering up to 2500 channels of on demand movies, television programmes, music, audio books and music. Families with young children are also well catered for with special products and services to ensure a comfortable and enjoyable flight, from free toys to kid’s meals and entertainment, as well as priority boarding.

Emirates launched services to Nigeria on 2 January 2004 with four flights per week from Dubai to Lagos linked with Accra in Ghana, using an A330-200 aircraft. Just over a year later Emirates increased its services from four to six flights a week, and following further demand, it became a daily operation in October 2005.

On 1 January 2006, Lagos was delinked from Accra and became a direct service to Dubai. Emirates operated a second daily service to Lagos between February 2009 and June 2016 and daily flights to Abuja between August 2014 and October 2016. From 15 December 2017, Emirates will operate 18 weekly flights between Dubai and Nigeria.

Ease of Doing Business Report: 15 Years of Reforms to Improve Business Climate Worldwide

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WHAT IS “DOING BUSINESS”?

Doing Business is a project that provides objective measures of business regulations and their enforcement across 190 economies. It looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for policymakers, academics, journalists, private sector researchers and others interested in the business climate of each economy.

In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that the global Doing Business has ranked.

HOW IT ALL STARTED

Doing Business started from two developments in economic growth which happened simultaneously in the late 1980s and early 1990s, said Simeon Djankov, the creator of the Doing Business series and former Deputy Prime Minister and Minister of Finance of Bulgaria.

One was exemplified by Peruvian economist, Hernando de Soto, known for his work on the informal economy and on the importance of business and property rights. In his book The Other Path, published in Spanish in 1989, de Soto makes the point that the prohibitively high cost of establishing a business in his home country of Peru, economic opportunities to the poor were denied. As a result, they end up operating outside the formal economy.

“That was one motivation of the observation,” Djankov added. “If you make it easier for business by simplifying laws and regulations, many more firms and entrepreneurs will switch to the formal sector.”

In the formal sector, he said, workers will have benefits like social security, pension and insurance coverage. At the same time, the government benefits because it will get taxes through which health and education budgets can be replenished.

Second, with the collapse of communism after the Berlin Wall fell in 1989, new questions ascended. Many countries in Eastern and Central Europe and the former Soviet Union were running the economy as a state-owned economy. As a result, they did not think about how do you actually establish laws and regulations for small domestic private business to develop.

“These two things came together,” Djankov said. “We then asked the question in the one case, how can you simplify regulation, and in the other case how can you create new regulations so that businesses can be formal and that new businesses can be established in the formal economy and they can be a large generator of jobs.”

At that point when Doing Business was being considered in the late 1990s in the World Bank, there was a big discussion about whether the private sector can generate jobs at all, or the private sector is actually for small tiny firms and it’s just the state sector generating jobs.

“At that time 20 years ago, having to make that point that yes, if the private sector has simplified regulations it can actually be a generator of jobs and innovation. So, we helped establish that literature.” He added.

The Doing Business report was then established with five sets of indicators for 133 economies.

TOP IMPROVERS IN 2017

Governments in 119 economies carried out 264 business reforms in the past year to create jobs, attract investment and become more competitive, says the World Bank Group’s latest Doing Business 2018: Reforming to Create Jobs report.

This year marks the 15th Doing Business report. Since the inception of the project in 2003, the global business regulatory environment has changed dramatically. Governments around the world have embraced and nurtured advances in information technology to reduce bureaucratic hurdles and increase transparency.

Today, in 65 of the 190 economies covered by Doing Business, entrepreneurs can complete at least one business incorporation procedure online, compared with only nine of the 145 economies measured in Doing Business 2004. Furthermore, in 32 economies it is now possible to initiate a commercial dispute online. This kind of progress can also be observed in the other areas measured by Doing Business.

Marking its 15th anniversary, the report notes that 3,188 business reforms have been carried out since it began monitoring the ease of doing business for domestic small and medium enterprises around the world.

“Job creation is one of the transformational gains that countries and communities can achieve when the private sector is allowed to flourish. Fair, efficient and transparent rules, which Doing Business promotes, improve governance and tackle corruption,” said World Bank Chief Executive Officer Kristalina Georgieva.

Developing countries carried out 206 reforms, accounting for 78 percent of the total reforms, with Sub-Saharan Africa implementing 83 reforms, a record for a second consecutive year for the region, and South Asia implementing a record 20 reforms. A large number of reforms centered on improving access to credit and registering a new business, with 38 reforms each, as well as facilitating cross border trade, with 33 reforms.

In its annual ease of doing business rankings, New Zealand, Singapore and Denmark retained their first, second and third spots, respectively, followed by Republic of Korea; Hong Kong SAR, China; United States; United Kingdom; Norway; Georgia; and Sweden.

This year’s top 10 improvers, based on reforms undertaken, are Brunei Darussalam (for a second consecutive year); Thailand; Malawi; Kosovo; India; Uzbekistan; Zambia; Nigeria; Djibouti; and El Salvador. For the first time, the group of top 10 improvers includes economies of all income levels and sizes, with half being top improvers for the first time – El Salvador, India, Malawi, Nigeria, and Thailand.

“As we celebrate the 15th anniversary of Doing Business, it is particularly gratifying to see that many of the reforms are being carried out in economies and sectors where they are most needed. We look forward to continuing to shine a light on the real hurdles faced by entrepreneurs, both women and men, and celebrating policy change successes,” said Rita Ramalho, Acting Director of the World Bank’s Global Indicators Group, which produces the report.

WHERE IS BUSINESS REGULATION BETTER?

Although the economies with the most business friendly regulation in this year’s ease of doing business ranking are relatively diverse, the economies within the top 20 share some common features. Thirteen of the top 20 are OECD high-income economies; four are from Europe and Central Asia and three from East Asia and the Pacific. Eighteen of the top 20 are classified as high-income economies.

BUSINESS REGULATION IMPACT ON EMPLOYMENT AND POVERTY

Many factors explain poverty. These can include vulnerability to natural disasters, remoteness and quality of governance etc. Reforming in the areas measured by Doing Business can be particularly beneficial to employment creation when those reforms take place in the areas of starting a business and labor market regulation.

Across economies there is a significant positive association between employment growth and the distance to frontier score. While this result shows an association, and cannot be interpreted in a causal fashion, it is reassuring to see that economies with better business regulation, as measured by Doing Business, also tend to be the economies that are creating more job opportunities.

When it comes to unemployment, the expected opposite result is evident. Economies with less streamlined business regulation are those with higher levels of unemployment on average.

LIKE THE “WORLD CUP”

Throughout the 15 years of Doing Business, Djankov said that the biggest impact is that countries would compete on it. “That’s a component that in a way that most of our analytical and theoretical work we hadn’t thought of.”

He added that in addition to good policy, once you start ranking countries and comparing them, natural competition like a “World Cup” or the “Olympics” comes about.

AMCON Donates to IDPs, Earns Adamawa Gov’s Commendation

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AMCON
Mr. Aliyu Adamu, Mr. Hassan Tanko, Aisha Bello-Tukur all of Asset Management Corporation of Nigeria (AMCON); the District Head of Girei, Dr. Ahmed Ibrahim Mustafa, Ubandoma Adamawa; Mr. Usman Abubakar, Hiradi Malgwi and Jude Nwauzor when the AMCON delegation paid a courtesy visit to the District Head in Yola before the flagging-off of the distribution of Scholastic Materials for Mainstreamed Learners donated by AMCON to seven local government areas of Adamawa State north-east Nigeria.

Mr. Aliyu Adamu, Mr. Hassan Tanko, Aisha Bello-Tukur all of Asset Management Corporation of Nigeria (AMCON); the District Head of Girei, Dr. Ahmed Ibrahim Mustafa, Ubandoma Adamawa; Mr. Usman Abubakar, Hiradi Malgwi and Jude Nwauzor when the AMCON delegation paid a courtesy visit to the District Head in Yola before the flagging-off of the distribution of Scholastic Materials for Mainstreamed Learners donated by AMCON to seven local government areas of Adamawa State north-east Nigeria.

The Executive Governor of Adamawa State, Senator Mohammed Umar Jibrilla Bindo has commended the management of Asset Management Corporation of Nigeria (AMCON) for partnering with the government and people of Adamawa State towards the provision of educational materials and other support items especially for the Internally Displaced Persons (IDPs) in the state.

The items AMCON donated to the state, which would be distributed to seven local government areas in the state include scholastic materials to Mainstreamed Learners and Parents Caregivers; starter packs for small scale businesses as well as food items for the affected families in the host communities.

Speaking in Yola on Thursday when he received a team of AMCON officials who were in Yola to commence distribution of relief materials, Bindo said he was happy that AMCON support and association is coming at a time the incumbent government of Adamawa State under his humble self is also focusing a lot of attention to educational provision to children across the state, which he said was nearly destroyed as a result of insurgence in the Northeastern part of Nigeria.

The District Head of Girei, Dr. Ahmed Ibrahim Mustafa, Ubandoma Adamawa (left), flagging-off of the distribution of Scholastic Materials for Mainstreamed Learners donated by Asset Management Corporation of Nigeria (AMCON) to host communities of the victims of insurgence in the North-Eastern state of Yola, Adamawa State at Girei 11 Primary School, Yola.

He said, “On behalf of the government of Adamawa and the good people of the state, I welcome AMCON to Government House, Yola. We are happy to receive you and are also happy with the support you are giving us in the area of education with the intervention you are providing in that regard. I want to let you know that we have also declared state of emergency in education in the state because it was really bad when we came in but with this sort of assistance coming from your organization and your partners, which is the United States Agency International Development (USAID) Education Crisis Response (ECR), I want to give you the assurance that we do not need to lose any advantage going forward.”

Speaking in the same vein but at a separate meeting, the District Head of Girei, Dr. Ahmed Ibrahim Mustafa,Ubandoma Adamawa also commended the management and staff of Asset Management Corporation of Nigeria (AMCON) for coming to the aide of victims of insurgence and called on other well-meaning organisations in the country to do same.

Dr. Mustafa who flagged-off of the distribution said such a gesture from AMCON who is collaborating with USAID – ECR) would go a long way to reassuring the beneficiaries, their families and the host communities that all hope is not lost.

He said Girei, which AMCON chose to flag-off the exercise showed that the leadership of the Corporation led by Mr. Ahmed Kuru, Managing Director/Chief Executive Officer is in sync with history because Girei was indeed the first community in Adamawa State to accommodate thousands of Internally Displaced Persons (IDPs).

According to him, the community gave up their schools, provided farm lands for the affected families among other supports, which helped the IDPs settle down in the state. He therefore thanked AMCON and the Education Crisis Response (ECR) team for the rare support and called on well-meaning individuals and corporate organisations like AMCON to continually donate to the rehabilitation of the affected individuals and rebuilding of the Northeast.

Earlier, Mr. Usman Abubakar, who led the AMCON team and also represented the MD/CEO informed that the relief items donated by AMCON would be distributed to beneficiaries across the seven local government areas of the state.

According to him, other local government areas that would join Girei include Fufore, Shelleng, Song, Numan, Yola North and Yola South where over 3,000 individuals would directly benefit from the items. He also charged the officials of ECR to ensure that the items are distributed as fast as possible so as to cushion the suffering of the beneficiaries.

Market Statistics: Thursday, 2nd November 2017

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Market Cap (N’bn)               12,763.1
Market Cap (US$’bn)                    41.7
NSE All-Share Index             36,887.15
Daily Performance % (0.0)
Week Performance % 1.0
YTD Performance %                  37.2
Daily Volume (Million)                 318.1
Daily Value (N’bn)                      4.0
Daily Value (US$’m)         12.9

Equities Halt 3-Day Bullish Run… NSE ASI down 3bps
Today, the equities market reversed a 3-day gaining streak, as the All Share Index (ASI) fell 3bps to close at 36,887.15 points, while YTD return moderated to 37.2%. The negative performance was largely due to profit taking in NIGERIAN BREWERIES (-3.2%), DANGCEM (-0.2%) and UNILEVER (-2.4%).

As a result, market capitalisation reduced by N3.5bn to settle at N12.8tn. However, activity level was mixed as volume traded inched 27.6% higher to 318.1m units while value traded declined 24.1% to N4.0bn respectively.

Mixed Performance across Sectors
Sector performance was mixed at the close of trade. The Banking and Insurance indices closed positive, rising 0.7% apiece due to a rally in UBA (+4.1%), ETI (+1.2%), MANSARD (+2.9%) and CONTINSURE (+2.3%).

On the flip side, the Consumer Goods index depreciated the most, down 1.2% due to profit taking in NIGERIAN BREWERIES(-3.2%), UNILEVER (-2.4%) and PZ (-4.0%). Similarly, losses in DANGCEM (-0.2%) dragged the Industrial Goods index 0.1% lower. However, the Oil & Gas index closed flat.

Investor Sentiment Strengthens
Investor sentiment further strengthened as market breadth (advancers/decliners’ ratio) improved to 1.5x – from 1.0x recorded in the previous trading session – consequent on 27 stocks advancing against 18 that declined.

The top performers were FBNH (+9.2%), FLOURMILL (+4.9) and UPL (+4.9%) while CUSTODYINS (-5.0%), TRANSEXPR (-4.9%) and AIRSERVICE (-4.9%) were the worst performers. Although market performance was dragged by profit taking, investor sentiment strengthened.

Hence, we expect to see a rebound in subsequent trading sessions.  Our view is further buttressed by the sustained rally in oil prices – above US$60.00/b- which is expected to have a positive knock on impact on the broader economy.

Microsoft, Angola Cables Drive Africa Digital Transformation

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Angola Cables announced yesterday that it has become a Microsoft ExpressRoute partner to meet the needs of Africa-based organisations migrating business applications and IT infrastructures to the cloud and accelerating digital transformation on the continent.

Taking advantage of the Microsoft Azure cloud platform, Angola Cables has created ACloud Connect to provide dedicated, high-quality connections to a worldwide network of 42 Azure regions offered by Microsoft, and connectivity to Angonap, Angola Cables’ data centre located in Luanda.

Predictable Performance
As one of the world’s most trusted and flexible enterprise-grade cloud computing platforms, Azure allows organisations to extend on-premises networks into the cloud over a private connection. Because ExpressRoute connections do not go over the public internet, customers experience reliable, fast and more predictable connectivity than conventional connections.
Offering dedicated Ethernet links between customers’ infrastructures and Azure’s data centres– as well as running one of the world’s most advanced IP / MPLS backbones – Angola Cables ACloud Connect will interconnect Africa and the rest of the world. Expected to be available in November 2017, Angola Cables will initially concentrate on servicing Angola and South Africa-based organisations with ACloud Connect.
“We see ACloud Connect as a natural extension of customers’ own IT infrastructures,” said Antonio Nunes, CEO at Angola Cables. “In addition to benefiting from the scale and economics of Microsoft Azure, Africa-based customers should also look forward to low latency services.”
Complementing NAPAfrica in South Africa – offering peering across sub-Saharan Africa – the Azure cloud platform will help protect organisations’ online assets as they look to expand globally, while maintaining ‘data residency’ on the African continent.
“Microsoft’s enterprise experience and approach to the cloud addresses customers’ needs in a differentiated way. Our unique approach to the cloud spans three areas that, when combined, give customers the most choice and flexibility with the cloud: enterprise capabilities, global cloud infrastructure, and comprehensive hybrid solutions,” said Laurence Janssens, Country Manager, Microsoft Southern Africa.
“Through the partnership with Microsoft, Angola Cables seems to be making all the right moves to become a key enabler of cloud adoption on the continent,” said Lehlohhonolo Mokenela, Industry Analyst for the Digital Transformation Practice at Frost & Sullivan Africa.

“The impact on latency and the cost of bandwidth will make cloud an even more viable option for enterprises across Africa. This will also see greater demand from small and medium enterprises (SMEs), a segment of the market that typically drives cloud adoption in some of the more developed countries. With SACS due to go live in 2018, Angola is well-positioned to become an important technology hub in the region.”
Mokenela further notes that economies with relatively more mature technology adoption such as South Africa, Kenya and Nigeria, are already witnessing a growing transition towards the cloud. “These types of partnerships, along with the impending arrival of new cables like SACS, can provide the platform for greater cloud uptake across the rest of the continent as well.”

Nigeria Moves Up 24 Places in Ease of Doing Business Ranking

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·         Besides moving up 24 places in the rankings, Nigeria is also reported by the World Bank to be among the Top Ten Reformers globally
President Muhammadu Buhari welcomes most heartily the phenomenal improvement of Nigeria on the World Bank’s Doing Business latest rankings released Tuesday.
Besides moving up 24 places in the rankings, Nigeria is also reported by the World Bank to be among the Top Ten Reformers globally.
The President congratulates all Nigerians on this very significant step forward which symbolizes the real success achieved by the Presidential Enabling Business Environment Council, (PEBEC), the National Assembly and State Governments in making it easy for people to register their businesses speedily, obtain licenses and approvals from government agencies without encountering unnecessary bureaucratic bottlenecks.
According to President Buhari, “it also reflects our efforts to make it easy for foreign business visitors to obtain visa on arrival, pass through our airports and do their businesses with ease and speed.”
He particularly commends PEDEC chaired by Vice President Yemi Osinbajo, SAN, for a job well done, stressing that he looks forward to even greater achievements for the nation.

 

‘African Devt Bank Strongly Supports Nigeria’s Economic Recovery’

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The ‘High Fives’ Development Initiative by AfDB

 ‘The African Development Bank wishes to categorically refute the statement that it has “called off loans to Nigeria”, as reported in Reuters and credited to AfDB Vice-President for Power, Energy, Climate and Green Growth, Amadou Hott.
The African Development Bank is highly encouraged by the economic recovery of Nigeria from recession and salutes the Government’s efforts towards diversification of the economy. The Bank also strongly supports the Economic and Growth Recovery Plan of the Government and efforts to stem corruption and strengthen fiscal consolidation and efficiency.
In November 2016, the Board of the African Development Bank approved a $600-million loan to support Nigeria’s efforts to cope with macro-economic and fiscal shocks that arose from the massive decline in price of crude oil. An additional $400 million in support could be considered, if requested and approved by the Board, as part of a larger coordinated effort with other development partners, including the World Bank and the International Monetary Fund.
The African Development Bank is in consultations with the Government on how best to continue its support for its laudable Economic and Growth Recovery Plan through investment projects that will help address existing structural challenges, including infrastructure, power, agriculture and support to boost private sector and job creation.
The Bank assures the Nigerian Government of its full support for its continued reforms to diversify the economy and boost economic growth and development.’

Brokers Initiate 10-Year Strategic Plan

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L-R Council member, Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs. Ekeoma Ezeibe , Executive Secretary, NCRIB; Fatai Adegbenro, Deputy President, NCRIB; Dr. Mrs Bola Onigbogi, new President, NCRIB; Shola Tinubu, President, National Association of Insurance and Pension Correspondents; Omobola Tolu-Kushimo and council member, NCRIB; Tunde Oguntade at the maiden press briefing addressed by the new NCRIB president in Lagos.

L-R Council member, Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs. Ekeoma Ezeibe , Executive Secretary, NCRIB; Fatai Adegbenro, Deputy President, NCRIB; Dr. Mrs Bola Onigbogi, new President, NCRIB; Shola Tinubu, President, National Association of Insurance and Pension Correspondents; Omobola Tolu-Kushimo and council member, NCRIB; Tunde Oguntade at the maiden press briefing addressed by the new NCRIB president in Lagos.

The Nigerian Council of Registered Insurance Brokers (NCRIB) has initiated a 10-year strategic plan to further develop the broking arm of the Nigerian insurance industry and consolidate on the gains of the past and present.

Mr. Shola Tinubu, the 19thPresident of NCRIB, said the Plan will roll-over with two successive presidencies of the Council and lead to autonomy as part of the 8-point agenda of his administration. He also emphasized the importance of self-regulation by brokers to avoid running foul of the law guiding the conduct of their business.

“I want to champion self-regulation by brokers. This implies our members meeting their obligations in-house before assessment by regulators. That would strengthen our level of professionalism and practice in the sight of regulators and customers. We also need more brokers beyond the current number of 500 to achieve greater insurance penetration in the country.”

On the issue of rate-cutting, the NCRIB chief said: “There is no need for rate regulation. It is like taking the industry back to the era of marketing boards for cocoa etc of 50 years ago.” He added that each corporate entity should be able to fix its own rate taking cognizance of its competencies since there is currently no official or mandatory rate in the market.

Tinubu said the federal government has so far released 62 percent of the premium on its group life assurance policy, meaning that the policy might not take full effect until December 2017 in accordance with the ‘No Premium, No Cover’ policy of the industry.

Market Statistics: Wednesday, 1st November 2017

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NSE
Market Cap (N’bn)               12,766.6
Market Cap (US$’bn)                    41.7
NSE All-Share Index             36,887.20
Daily Performance % 0.6
Week Performance % 0.7
YTD Performance %                  37.3
Daily Volume (Million)                 249.3
Daily Value (N’bn)                      5.2
Daily Value (US$’m)         17.0

Equities Maintain Positive Trend as Oil Price Rises… NSE ASI up 56bps
The positive run in the local bourse extended to the 3rd trading session as the All Share Index (ASI) rose 56bps to settle at 36,880.20 points while YTD return expanded to 37.3%. In the same vein, market capitalization increased by N71.6bn to N12.8tn.

Today’s positive performance can be broadly attributed to gains in DANGCEM (+1.6%%), ZENITH (+1.5%) and FBNH (+5.0%). However, activity level was mixed as volume traded declined 3.8% to 249.3m units while value traded spiked 70.3% to N5.2bn.

Bullish Performance across Sectors
Performance across sectors was bullish as all sector indices closed in the green. The Industrial Goods index led gainers, up 0.9% on the back of gains in DANGCEM (+1.6%) and WAPCO (+0.1%). The Oil & Gas index followed, rising 0.4% due to price appreciation in MOBIL (+3.9%), while the Banking and Insurance indices each climbed 0.2% as investors took positions in ZENITH (+1.5%), FIDELITY (+1.3%), NEM (+4.0%) and AIICO (+3.9%). The Consumer Goods index marginally added 1bp, propped by buying interest in DANGSUGAR (+1.5%) and FLOURMILL (+1.9%).

Market Breadth Improves
Market breadth (advancers/decliners ratio) which measures investor sentiment strengthened to 1.0x (from 0.9x the previous day) with 22 stocks advancing relative to 21 stocks that declined. The top performers were BERGER (+5.0%), FBNH (+5.0%) and PRESCO (+5.0%) while the worst performers were AIRSERVICE (-4.9%), VITAFOAM (-4.0%) and NASCON (-4.0%).

The positive performance in the Bourse this week comes amidst an oil price rally which has taken Brent Crude to US$61.15/b as of writing – 43.8% above 2017 budget benchmark. We expect the gains in the oil market to further support banks asset quality metrics and fiscal balance, aid the economic recovery and strengthen the case for staying invested in Nigerian assets.

Nigeria Targets Top 50 on Ease of Paying Tax Index

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Comments from the International Monetary Fund (IMF) around Nigeria’s low tax-to-GDP ratio highlight the importance of driving higher levels of payroll and accounting automation among the country’s businesses, especially small, micro and medium-sized enterprises, says Magnus Nmonwu, Regional Director for Sage West Africa.
The IMF has warned that Nigerian governments’ ability to effectively finance infrastructure and services is constrained by low tax collection. Despite recent tax reforms by the Federal Government, Nigeria needs to grow tax revenue by registering more tax payers and enhancing collections and compliance, says Nmonwu.
Initiatives such as the government’s Voluntary Assets and Income Declaration Scheme (VAIDS) – which gives taxpayers an opportunity to voluntarily declare all previously undisclosed assets and income are steps in the right direction, he adds.

Higher levels of automation and modernisation among tax authorities as well as increased use of digital filing and payment are also positive developments.
Says Nmonwu: “Another way Nigeria’s Federal and State Governments could enhance compliance is by encouraging businesses of all sizes to use technology to streamline capturing of transactions and automate payroll calculations. These solutions can help minimize the risk of non-payment of tax or incorrect remittances of taxes to the relevant government agencies.
“What’s more, the ability to generate financial statements, tax certificates, reports and electronic payslips with the click of a button is a major timesaver. An automated, cloud-based solution also means that businesses have an audit trail and reliable backups for all of their financial transactions, so that they can demonstrate their compliance with tax laws.”
Such software can help address some of the complexity Nigerian businesses face in paying tax. Nigeria aims to move from its current position of 181 out of 189 countries to top 50 on the Ease of Paying Taxes World Report which means that we will see a lot of reform of the tax system in the years to come, says Nmonwu.
“Spreadsheets and other manual methods are no longer sufficient to keep up with the growing complexity of today’s tax environment,” Nmonwu says. “As the tax authorities digitise and automate processes, they should be supporting small and medium businesses in doing the same in an effort to accelerate Nigeria’s integration with the global economy. They could, for example, run seminars or workshops together with vendors to showcase how cloud technology eases the compliance burden for small businesses.”

PwC: Africa Needs Innovation, Tech to Grow Oil Sector

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The oil & gas industry in Africa continues to face market challenges arising from the low oil price, competition for revenue growth and local talent together with new expectations from investors and regulators.
“Africa’s oil & gas industry is experiencing significant change and upheaval. There are fundamental shifts in companies’ strategies, business models and ways of working,” says Chris Bredenhann, PwC Africa Oil & Gas Advisory Leader.
The sustained lower price of oil has been accepted as the new normal in the oil & gas industry with companies putting plans in place to enable a more agile response to commodity price fluctuations in the future. For some, this means a diversification of portfolio, with many considering moves to an energy mix that includes some form of renewables. Despite the challenges, there are a number of opportunities on the African continent.
“The time is opportune for oil & gas companies to take up and utilise advances in technology as an enabler in meeting some of the challenges faced. Instead of playing catch up the rest of the world, we believe that the industry should be ‘learning to leapfrog’ so that they are not only ahead of disruption – they actually cause it,” Bredenhann says.
PwC’s Africa oil and gas review, 2017 analyses what has happened in the last 12 months in the oil & gas industry within the major and emerging markets.
As at the end of 2016, Africa is reported to have had proven natural gas reserves of 503.3 trillion cubic feet (TcF), up 1% in total gas reserves on the continent. About 90% of African gas production continues to come from Algeria, Nigeria, Egypt and Libya though the overall quantity produced in 2016 reduced by 1.1% down to 208.3bcm.
Africa’ share of global oil production has continued its downward trend from the past four years, dropping sharply, moving it down from 9.1% of global output last year to 8.6%.

The challenges in Africa’s oil & gas industry
The top challenges in the oil & gas industry have remained similar to those in previous years with uncertain regulatory frameworks, corruption, and tax requirements remaining in the top six for the past four years. It is notable that financing costs and foreign currency volatility have both become more critical challenges since 2015 when they were ranked 11th and 10th respectively.
“It is disheartening that governments are not catching up to demands and calls from oil & gas companies to ensure regulatory certainty to players who are looking to invest in hydrocarbon plays in various African countries,” Bredenhann comments. Upstream regulation in South Africa remains uncertain, with the separation of oil & gas from mining still not achieved in the Mineral and Petroleum Resources Development Act (MPRDA). Other key markets in Africa, such as Nigeria and Tanzania, are also experiencing significant regulatory issues.
Corruption has remained among the top three challenges over the last four years, with numerous instances occurring across the continent. Despite the existence of anti-corruption programmes at government and corporate levels, the effectiveness of such programmes is questionable. In the context of corruption issues, it is not surprising that the costs of finance have risen to third among major challenges for African players. It is likely that the regional issues and uncertainties combined with a constrained wider industry, have led banks and other institutions to be wary of offering favourable financing terms.
The lack of skills development continues to be a problem in Africa, and it is becoming a global challenge in the oil & gas industry overall.

Will lower oil prices continue?
Aside from those challenges highlighted by companies, adjusting to the new normal of lower oil prices remains a concern for companies. The oil price has been relatively ‘stable’ through 2017. Having recovered since the January 2016 low, it has typically been trading in the US$50-60/bbl range. As the Brent oil price reached close to US$60/bbl in September 2017, the market began asking whether ‘lower for longer’ may be over. The demand for oil is picking up, and supply is easing off, suggesting a market rebalancing is underway. However, as we have often seen with global oil prices, nothing is ever certain.

Oil & gas companies cited geopolitics, supply and demand as the three major reasons for the current oil price environment. Looking ahead, respondents expect modest increases in prices over the next two years – with 65% and 52% expecting the price to be in the US$51-60/bbl range for 2018 and 2019 respectively.

The changing competitive landscape
In response to many of these challenges, oil & gas companies are looking to alter their strategies and operating models, which has changed the competitive landscape. Companies reported that major changes anticipated or recently experienced in the competitive environment are driven by the growth in alternative fuels, the impact of technology-driven disruption and the need for cost reduction.

Are oil & gas companies fit for Growth?
Oil & gas companies cited ‘too little investment in developing capabilities’ as the most significant impediment to business growth. This was followed by weak strategy and leadership.
According to PwC research, companies become ‘Fit for Growth’ by doing three things consistently and continuously: they focus on a few differentiating capabilities; they align their cost structure to these capabilities; and they organise their businesses for growth.
According to PwC’s Oil & Gas Review, 75% of companies say that they have reviewed their Africa strategy in the last three years, but they also acknowledge that there are issues with incoherence and a problem with executing it in day-to-day business.
PwC’s Fit for Growth approach emphasises that investment in capabilities that enable the organisation to create unique value for customers is key for sustainable growth.
Survey respondents indicated that they are investing in the development of new or the enhancement of existing capabilities (18%), local content and skills development (14%), infrastructure improvements (13%), and regulatory compliance (12%) over the next three years.
It is notable that cost management as a strategic focus has fallen in importance this year. One-third of respondents indicated that they had no cost-cutting intentions. Just under half of respondents intend to reduce costs by up to 20%.

Achieving sustainability
The need to strategically assess the portfolio of activities oil & gas companies in Africa pursue in order to be sustainable in the drive towards a low-carbon environment is necessary. The review results indicate that M&A and partnerships are key to delivering the intended and repositioned strategies and growth. The minority of respondents were related to an M&A proposition to drive growth, with approximately 30% of respondents being targeted for acquisition and about 40% having targeted an entity themselves. The majority of respondents referred to a partnership proposition with nearly 60% having both been approached or approaching another entity for partnership.
While some oil & gas companies continue to explore opportunities for cost reduction and improved efficiency, consideration is now being given to how they will stay ahead of the competition. Given the perception of slow uptake of digital solutions in the oil & gas industry, it is surprising that nearly a quarter of companies stated that they had implemented some form of digital solution, from production and drilling to mobile solutions.

Leveraging local content
More than 25% of oil & gas companies said that projects had been postponed or delayed by local content policies, and about 15% have relocated or cancelled projects in response to local regulations. About 10% indicated an acceleration of their projects. One-third of respondents think that there are more local companies today that can serve the sector. Just under one-third acknowledge that local skills at the right level are available in their country and 11% said that new players have emerged in upstream as a result of the regulations.
“The oil & gas industry in Africa is riddled with complex challenges and adversity, but with challenge comes opportunity. The opportunity is there for players who are willing to ‘reimagine the possible’ in a future that looks very different to our present.
“It is clear that African oil players must ‘learn to leapfrog’ to remain competitive in the new energy future,” concludes Bredenhann.

Odimegwu Onwumere Makes Finalist in WA Media Excellence Awards By G.U Chukwu

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Odimegwu Onwumere
Odimegwu Onwumere

At the maiden edition of the West Africa Media Excellence Conference and Awards held on Saturday night, October 28 2017, at the Mövenpick Ambassador Hotel, Accra, Ghana, the dogged and multiple award-winning journalist, Odimegwu Onwumere emerged finalist with his article published in The Nigerian Voice, Nigeria.

Onwumere emerged finalist in the Anti-Corruption Reporting Category. According to a statement issued by a three member judges of the awards in the persons of Ms. Sophie Ly who is an experienced Senegalese journalist, media trainer and media development expert; Mr. Lanre Idowu who is an accomplished and highly respected Nigerian journalist, editor, author, publisher, media owner and trainer; and Ms. Elizabeth Ohene who is a veteran Ghanaian journalist, over 400 published stories that were sent in by journalists from 12 countries across West Africa, 15 journalists made the finalists from six categories.

Conversely, in the well competed awards, Jesusegun Alagbe of The Punch, Nigeria, won in the Anti-Corruption Reporting Category.  But Onwumere was elated that his name was not among those who entered for the awards but were not finalists, adding that having made a finalist showed that he is doing better in his chosen career than the poor leaders in Nigeria.

He added that objective journalism pays better than an oppressive government anywhere in the world, especially such that Nigerians have come to endure in the recent times in the name of democracy.

Onwumere said that objective journalism is hated by oppressive leaders but journalists inclined in objectivity in their reportages would stop at nothing to expose the highhandedness of the looting leaders and keep in touch with the different communities of their ill behaviours.

He, therefore, called on moneybags and the authorities to help journalism and journalists in this clime by pumping in money to sustain them. He, nonetheless, thanked those who have helped in one way or the other in making him the renowned journalist he has become today.