Nigeria Ranks 18 in 2016 ICT/Telecom Index in Africa

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03/01/2017

The Global Telecommunication Union (GTU) recently published a report entitled Measuring the information society 2016 which reveals that in terms of ICT and telecom’s growth around the world (175 countries listed), Mauritius comes first in Africa and 73^rd worldwide.

The Island is followed in Africa by Seychelles, South Africa, while Niger and Chad came last in the ranking, both in Africa and in the world. The two nations must muster more efforts to improve access to telecom services for their populations and work toward adopting digital economy.

The GTU used eleven criteria to conduct its study and assess the global development level in terms of ICT and telecom. These criteria are the level of access of to ICT and telecom, their usage and ICT skills in each of the countries listed.

Ranking for African Nations

Africa		2016	2015
1	Mauritius	73	73
2	Seychelles	86	88
3	South Africa	88	86
4	Tunisia	95	95
5	Morocco	96	98
6	Cape Verde	97	99
7	Egypt	100	97
8	Algeria	103	112
9	Botswana	108	109
10	Ghana	112	111
11	Namibia	120	121
12	Gabon	124	126
13	Kenya	129	129
14	Côte d’Ivoire	132	139
15	Zimbabwe	133	132
16	Lesotho	134	138
17	Swaziland	136	136
18	Nigeria	137	137
19	Sudan	139	134
20	Senegal	141	140
21	Gambia	143	141
22	Zambia	147	148
23	Cameroon	148	146
24	Mali	149	149
25	Rwanda	150	158
26	Mauritania	151	154
27	Angola	154	152
28	Liberia	156	161
29	Uganda	157	155
30	Benin	158	156
31	Togo	159	159
32	Equatorial Guinea	160	157
33	Djibouti	161	160
34	Burkina Faso	162	163
35	Mozambique	163	164
36	Guinea	165	166
37	Madagascar	166	165
38	Tanzania	167	167
39	Malawi	168	168
40	Ethiopia	169	172
41	RD Congo	170	169
42	Burundi	171	173
43	South Sudan	172	170
44	Guinea Bissau	173	171
45	Chad	174	175
46	Niger	175	174

Muriel Edjo

ADB Provides $159m to Ethiopian Airline for Expansion

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03/01/2017

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The African Development Bank (AfDB) announced in a statement published on December 15, it has granted Ethiopian Airline a $159 million loan to fund part of its strategy to grow and modernise its fleet.

The statement reveals that the funding comes in two tranches.

The first which represents 85% of the funding is covered by the African Trade Insurance (ATI), the African agency for export credit.

Ethiopian Airlines is fully owned by the Ethiopian government. The company which currently serves 93 international destinations plans to increase its fleet to 140 planes by 2045, from 77 now. By the projected year, the firm expects a turnover of more than $10 billion.

According to the International Air Transport Association, Ethiopian Airlines is presently Africa’s leading company in terms of profit and turnover.

Based at the Bole international airport, the firm registered record net profit of $165.4 million for its 2014-15 fiscal year, up 12% compared to the previous year.

NIGERIA in 2017: Experts Project Roadmap for Growth

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01/01/2017

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The NIGERIA in 2017 Special Report is designed to gauge the valued opinion of critical stakeholders in key sectors of the economy on the socio-economic prospect of the country in 2017.

Published below is PART ONE of the Special Report:

Agriculture, SMEs, Single-Digit Interest Rate Critical to Growth in 2017

By Prof Segun Ajibola, President, Chartered Institute of Bankers of Nigeria.

Introduction

The year 2016 witnessed fundamental political and economic developments both on the international scene and in the country. Expectedly, several projections were made at the beginning of the year.

While some of these were confirmed, others came as a rude shock to the entire world.

Brexit and the emergence of Donald Trump as the President-elect of the United States of America were two occurrences that economic watchers and political analysts continue to wrestle with as they turned already entrenched theories on their heads. There is no gainsaying the fact that these events would have material impacts on global trade and international relations.

The Nigerian economy was also stretched along major indicators. Inflation rate hovered around 20 per cent by the end of the year. Exchange rate against the US Dollars remained at the stubbornly high level of N305.00 and N480.00 at the official and parallel markets respectively. Stakeholders are still developing strategies to salvage the country’s economic fortune which is currently experiencing stagflation or at best recession.

Social indicators such as poverty rate, inequality rate, educational attainment (both in quantity and quality), life expectancy, employment and unemployment rates, health expenditure etc. are also at their lowest ebbs.

The Niger Delta Avengers (NDA) destruction of oil pipelines continued unabated in spite of government’s efforts at tackling it and agricultural activities were badly hit by the crises between farmers and the Fulani herdsmen.

The banking and finance sector of the economy also had its fair share of the challenges even though the sector was able to weather the storm with some level of resilience. The number of bad loans, arising from the lackluster economic performance continues to increase having a telling effect on banks’ bottom lines. At the end of June, 2016, the Financial System Stability Report of the Central Bank of Nigeria noted that non-performing loans in that period grew by 158 per cent from N649.63 billion at end of December 2015 to N1.679 trillion at end of June 2016.

The Apex Bank also observed that the industry ratio of non-performing loans net of provision to capital increased significantly to 30.9 per cent at end of June 2016 from 5.9 per cent at the end of December 2015 depicting weak capacity of the sector to withstand the adverse impact of non-performing loans. The much-desired financial inclusion expected to be championed by the banking industry continued to be hampered from poor infrastructural base and security challenges in the country.

It is however necessary for me to stress the fact that the government’s fight against the hydra-headed monster of corruption is commendable albeit efforts should be intensified in this regard. The sanity being restored on the electoral process is also a major milestone in the country’s history.

The level of success in the fight against the onslaught of the Boko Haram sect is also worthy of mention when one considers the havoc wrecked by the sect on both the social and economic landscape of the country, especially the north-eastern part of the country.

Anecdotal evidence also reveals that the country’s payment systems has indeed been transformed making it one of the most vibrant in the African continent. The Central Bank of Nigeria is also bracing up to the challenge in the forex market and recession with the various policy pronouncements aimed at safeguarding the country against total collapse.

As a major stakeholder in the Nigeria’s financial services sector, The Chartered Institute of Bankers of Nigeria (CIBN) also engaged other stakeholders at different fora, all aimed at proffering workable solutions to the myriads of problems facing the country.

The themes/topics of our Conferences/Workshops/Trainings were deliberately structured to identified gaps in the economy. The outcomes and issues raised at these knowledge sessions were widely publicized to relevant stakeholders and adequately monitored to ensure the implementation of the solutions provided.

General Expectations of the Economy in 2017 and Policy Advice to the Federal Government on the Banking Sector

Largely, expectations on the rebound of the Nigerian economy in 2017 are mixed. While some analysts view the prospects more positively others have a rather conservative opinion about the growth prospects. For analysts with a more positive outlook, the economy would likely grow at the rate between 2.5 and 3.0 per cent. Those with a more conservative outlook, including the International Monetary Fund (IMF) has however predicted a growth rate of about 0.6 per cent.

Even if the most conservative of these growth prospects would be achieved, there is the need for the government and the financial services sector to play their roles in revamping the economy. Infact, in periods of economic downturn, nations look up to the financial services sector for its financial intermediation role. However, the enabling regulatory environment should be provided for the sector to play this central role.

In my submission, the expectations in 2017 for the general economy in Nigeria would only be premised on some fundamental structural transformation in the economy. Brexit and the United States’ election in 2016 had buttressed the fact that political and economic dynamics are being redefined and we therefore need a new approach to explaining economic data.

Hence, the expectations are subject to the governments at all levels commiting to the implementation of the following:

There is the need to reduce the current self-inflicted pressure on the Naira. A religious commitment to the diversification of the Nigerian economy is highly critical. The agricultural sector and the Small and Medium Enterprises (SMEs) should be well developed to forestall the current importation of products that could be produced locally. If this is achieved it would reduce the demand for forex and bring the country back to the path of sustainable growth and development.

Access to funds, at a single digit interest rate, is critical for the growth of the agricultural sector and the SMEs. The recent policy of the Central Bank of Nigeria to Deposit Money Banks not to charge more than 9 per cent on loans guaranteed by the apex bank for the growth of critical sectors like agriculture is commendable. However, adequate monitoring of the scheme is highly essential for it to achieve the desired objective.

Incentives, such as waiving a percentage on tax, should be provided by government for institutions in the financial services sector who deployed a minimum of 70 per cent local content in their various activities. This would encourage the growth of local firms while reducing the pressure on forex arising from importation.

The government should provide an enabling policy environment for commercial banks to take advantage of the vast opportunities in retail banking. There is also the need for both the government and the banking sector to go into public-private partnership agreements in the provision of infrastructural facilities and security that would encourage banks to set up retail banking facilities and cater to the unbanked and under-banked.

To further enhance the activities of the Nigerian banking sector, the Federal Government should create a national innovation hub for financial technology that would be easily accessible to young innovators in the industry who need an outlet for their creative energy. This hub would go a long way not only in enhancing the banking sector but also providing a space where ideas and innovative concepts would flow freely

The CIBN Game-Plan (Policy Initiatives/Direction) in 2017

The Chartered Institute of Bankers of Nigeria (CIBN) has repositioned itself through the newly approved Strategic Plan for the Institute. The Plan is aimed at making the Institute a global reference point for professionalism and ethics in the banking and finance industry. In year 2017, our main would therefore be on the following:

Competency Framework for the Nigerian Banking and Finance Sector – The Institute has recently been engaged as the Accreditation Agency responsible for the implementation of the Competency Framework for the Nigerian Banking and Finance Industry. This new development would give the Institute the authority to set the standard for banking operations and the competencies for all banking professionals in the country. The Institute would also be given the opportunity to develop the framework for the evaluation of Educational Training Service Providers (ETSPs). This mandate shall be pursued vigorously by the Institute in 2017.

Capacity Building – the Institute would continue to build the capacity of all banking professionals. Various trainings and workshops would be held to reflect the vital learning needs of bankers in the coming year. These trainings which would be held through the Learning & Development and Compulsory Continuous Professional Development Divisions of the Institute and would deal with pressing issues such as innovative debt collection and recovery methods, optimal portfolio management strategies and the effective utilization of analytics.

Research – The Institute would continue, through its Centre for Financial Studies, to conduct research projects and organise knowledge events for top management staff of banks and other financial institutions with the sole aim of generating ideas on how to make the financial services industry more relevant to the entire economic value chain of the country.

Insurance Sector to Tap N250bn Budget Value; Expect Recapitalisation & Consolidation in 2017

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01/01/2017

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The Insurance Industry in 2017

The year will be a tremendously better year for the insurance industry than 2016; much depends though on faithful execution of the 2017 N7.5Trillion Budget.

The embedded insurance value on the recurrent and capital expenditure is in excess of N250 billion on the conservative estimate.

It is expected that government will continue to engage in meaningful dialogue with restive Niger Delta militants and sustain oil production at 2.2m barrel per day with average price above budget benchmark of $42 per barrel. This will reflate the economy and improve upstream and downstream activities with multiplier effects on other sectors including insurance.

Strict compliance with extant law on local contents and NAICOM guidelines on full utilisation of local capacity will bring improve income to local underwriters.

Companies must brace up for the recapitalisation guideline soon to be released but we are still in confusion how RBS will commence at the same time with new round of recapitalisation.

NAIRA may appreciate significantly with increased forex supply to the gasping economy.

Some couples of consolidation will occur in insurance industry and more incursion of foreign companies buying over local companies struggling to keep afloat.

NAICOM will likely conclude sale or disposal of some companies currently under its regulatory management.

Companies engaging in personal lines insurance and retail will grow better than conventional competitors on the back of significant growth in personal lines and retails.

Cost may increase in the year if government grants the prayer of Discos.

By Ademayowa Adeduro

Managing Director/CEO

Anchor Insurance Company Limited

Sustain War on Corruption in 2017; Firms Must Innovate Or Die

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01/01/2017

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General Expectation(s) of the Economy in 2017
– Stay consistent in the fight against corruption. Corruption has water in the basket effect on the economy and society at large.
There are hints and speculations that the anti-corruption agencies themselves are getting corrupt themselves. The Buhari administration must address this urgently as perception is reality.
– Secondly, the Government must create a more enabling environment for investors both from within and abroad. Capital does not discriminate and goes to where it will get the greatest returns and protection. Attracting investors and encouraging local manufacturers must be more intentional and go beyond lip service.

The PR & Marketing Market
The PR and advertising market in reflection of the overall socio-economic state will remain challenging in 2017.
Growth will come from clear innovation, strategic thinking and relentless commitment to delivering world class service and value.
Cream always rises to the top in any situation.

Peter Drucker’s famous challenge to “innovate or die”, will be a valuable reminder to the PR & Advertising industry in 2017 and beyond.

By Dr. Phil Osagie

Global Lead Strategist

JSP Communications Limited

IATA: Global Airline Industry Targets $30bn Profit in 2017

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01/01/2017

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The International Air Transport Association (IATA) has announced that it expects the global airline industry to make a net profit in 2017 of $29.8 billion.

On forecast total revenues of $736 billion, that represents a 4.1% net profit margin. This will be the third consecutive year (and the third year in the industry’s history) in which airlines will make a return on invested capital (7.9%) which is above the weighted average cost of capital (6.9%).

IATA revised slightly downward its outlook for 2016 airline industry profitability to $35.6 billion (from the June projection of $39.4 billion) owing to slower global GDP growth and rising costs. This will still be the highest absolute profit generated by the airline industry and the highest net profit margin (5.1%).

“Airlines continue to deliver strong results. This year we expect a record net profit of $35.6 billion. Even though conditions in 2017 will be more difficult with rising oil prices, we see the industry earning $29.8 billion. That’s a very soft landing and safely in profitable territory.

These three years are the best performance in the industry’s history—irrespective of the many uncertainties we face. Indeed, risks are abundant— political, economic and security among them. And controlling costs is still a constant battle in our hyper-competitive industry,” said Alexandre de Juniac, IATA’s Director General and CEO.

“We need to put this into perspective. Record profits for airlines means earning more than our cost of capital. For most other businesses that would be considered a normal level of return to investors. But three years of sustainable profits is a first for the airline industry. And after many years of hard work in restructuring and re-engineering the business the industry is also more resilient. We should also recognise that profits are not evenly spread with the strongest performance concentrated in North America,” said de Juniac.

2017

While airline industry profits are expected to have reached a cyclical peak in 2016 of $35.6 billion, a soft landing in profitable territory is expected in 2017 with a net profit of $29.8 billion. 2017 is expected to be the eighth year in a row of aggregate airline profitability, illustrating the resilience to shocks that have been built into the industry structure. On average, airlines will retain $7.54 for every passenger carried.

Expected higher oil prices will have the biggest impact on the outlook for 2017. In 2016 oil prices averaged $44.6/barrel (Brent) and this is forecast to increase to $55.0 in 2017. This will push jet fuel prices from $52.1/barrel (2016) to $64.9/barrel (2017). Fuel is expected to account for 18.7% of the industry’s cost structure in 2017, which is significantly below the recent peak of 33.2% in 2012-2013.

The demand stimulus from lower oil prices will taper off in 2017, slowing traffic growth to 5.1% (from 5.9% in 2016). Industry capacity expansion is also expected to slow to 5.6% (down from 6.2% in 2016). Capacity growth will still outstrip the increase in demand, thus lowering the global passenger load factor to 79.8% (from 80.2% in 2016).

The negative impact of a lower load factor is expected to be offset somewhat by a strengthening of global economic growth. World GDP is projected to expand by 2.5% in 2017 (up from 2.2% in 2016). Along with structural changes in the industry, this is expected to help stabilize yields for both the cargo and passenger businesses. This is a welcome development as yields (calculated in dollar terms) have fallen each year since 2012.

There is some optimism over the prospects for the cargo business in 2017. The break in falling yields and a moderate uptick in demand (3.5%) will see cargo industry volumes reach a record high of 55.7 million tonnes (up from 53.9 million tonnes in 2016). Industry revenues are expected to rise slightly to $49.4 billion (still well below the $60 billion level of annual revenues experienced in 2010-2014). Trading conditions remain challenging.

“Connectivity continues to set new records. We expect nearly 4 billion travelers and 55.7 million tonnes of cargo in the coming year. And almost 1% of global GDP is spent on air transport—some $769 billion. Air transport has made the world more accessible than ever and it is a critical enabler of the global economy,” said de Juniac.

“Governments, however, do not make aviation’s work easy. The global tax bill has ballooned to $123 billion. Over 60% of countries put visa barriers in the way of travel. And the total number of ticket taxes exceeds 230. Billions of dollars are wasted in direct costs and lost productivity as a result of inefficient infrastructure. These are only some of the hurdles which confront airlines. Our aim is to work in partnership to help governments better understand and fully maximize the social and economic benefits of efficient global air links,” said de Juniac.

2017 Regional Analysis

North American Carriers:

The strongest financial performance is being delivered by airlines in North America. Net post-tax profits will be the highest at $18.1 billion next year, although down slightly from the $20.3 billion expected in 2016. The net margin for the region’s carriers is also expected to be the strongest at 8.5% with an average profit of $19.58/passenger. In 2017 capacity offered by the region’s carriers is expected to grow by 2.6%, slightly outpacing expected demand growth of 2.5%. Recent consolidation continues to underpin the region’s strong profitability, even as the region faces upwards cost pressures which include the price of fuel.

European Carriers:

Airlines based in Europe are expected to post an aggregate net profit of $5.6 billion in 2017 which is below the $7.5 billion for 2016. Nonetheless, carriers there are forecast to generate a 2.9% net profit margin and a per passenger profit of $5.65. There remains a significant gap between the performance of the region’s carriers and the performance of North American ones. Capacity in 2017 is expected to grow by 4.3%, ahead of demand growth which is forecast at 4.0%. The region is subject to intense competition and hampered by high costs, onerous regulation and high taxes. And terrorist threats remain a real risk, even if confidence is starting to return after the tragic incidents in recent times.

Asia-Pacific Carriers:

Airlines in the Asia-Pacific region are expected to generate a net profit of $6.3 billion in 2017 (down from $7.3 billion in 2016) for a net margin of 2.9%. On a per passenger basis average profits are anticipated to be $4.44. Capacity offered by the region’s carriers is forecast to grow by 7.6%, ahead of a forecast growth in demand of 7.0%. Improved cargo performance is expected to offset rising fuel prices for many of the region’s airlines. The expansion of new model airlines and progressive liberalization in the region is intensifying already strong competition. In addition profitability varies widely across the region.

Middle Eastern Carriers:

Middle Eastern airlines are forecast to generate a net profit of $0.3 billion for a net margin of 0.5% and an average profit per passenger of $1.56. This is below the $900 million profit expected in 2016. Average yields for the region’s carriers are low but unit costs are even lower, partly driven by the strong capacity expansion, forecast at 10.1% this year, ahead of expected demand growth of 9.0%. Threats are emerging to the success story of the Gulf carriers, including increases in airport charges across the Gulf States and growing air traffic management delays.

Latin American Carriers:

Latin American airlines are expected to post a net profit of $200 million, which is slightly lower than the $300 million forecast for 2016. Profit per passenger is expected to be $0.76 with a net profit margin of 0.7%. Capacity offered by the region’s carriers is forecast to grow by 4.8% which is ahead of expected demand growth of 4.0%. Despite some signs of improvement in the region’s currencies and economic prospects, operating conditions remain challenging, with infrastructure deficiencies, high taxes, and a growing regulatory burden across the continent. Venezuela continues to block the repatriation of some $3.8 billion of industry funds in contravention of international obligations.

African Carriers:

Carriers in Africa are expected to deliver the weakest financial performance with a net loss of $800 million (broadly unchanged from 2016). For each passenger flown this amounts to an average loss of $9.97. Capacity in 2017 is expected to grow by 4.7%, ahead of 4.5% demand growth. The region’s weak performance is being driven by regional conflict and the impact of low commodity prices.

2016 Review

2016 will be a record year for industry profitability. The expected net profit of $35.6 billion is slightly ahead of the $35.3 billion recorded in 2015, as is the 5.1% net profit margin (slightly ahead of the 4.9% recorded for 2015).

The modest revision from previous expectations largely is owing to two factors:

Slower global GDP growth: 2.2%, which was below mid-year expectations of 2.3% growth.

Non-fuel unit costs increased by 2.0% in 2016.

The Business of Freedom

“Air transport is the business of freedom. The safe and efficient global movement of goods and people is a positive force in our world. Aviation’s success betters peoples’ lives by creating economic opportunity and supporting global understanding. We must stand firm in the face of any rhetoric that would put limits on aviation’s future success,” said de Juniac.

Some key indicators of the strength of global connectivity include:

The average return airfare in 2017 is expected to be $351 (2015 dollars), which is 63% below 1995 levels.
Average air freight rates in 2017 are expected to be $1.48/kg (2015 dollars) which is a 68% fall on 1995 levels.
The number of unique city pairs served by aviation grew to 18,429 in 2016, a 92% increase on 1995.
The value of trade carried by air transport in 2017 is expected to be $5.7 trillion, a 4.9% increase on 2015. Air cargo accounts for around 35% of the total value of goods traded globally.
The global spend on tourism enabled by air transport is expected to grow by 5.1% in 2017 to $681 billion.
Supply chain jobs supported by aviation are expected to grow by 3.4% in 2017 to some 69.7 million worldwide.
Airlines are expected to take delivery of some 1,700 new aircraft in 2017, around half of which will replace older and less fuel-efficient aircraft. This will expand the global commercial fleet by 3.6% to 28,700.

Airlines are expected to operate 38.4 million flights in 2017, up 4.9%.

The Fate of Oil in 2017

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01/01/2017

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The Journey in 2016

It was a roller coaster year for oil prices. And little wonder.

Iranian oil flooded onto world markets after sanctions were lifted, OPEC squabbled over production levels and then ended the year with a rare agreement to cut supply.

The icing on the cake: big producers outside the cartel promised to help curb output and drain a huge oil glut.

After starting the year around $30 a barrel, prices plunged to $26 in February — the lowest since 2003 — before climbing back above $50 this month.

So what Does 2017 Hold?

Leading industry experts say prices should stay above $50 if oil producing nations stick to their guns and cut supply by nearly 1.8 million barrels per day.

“I know the countries are serious,” BP (BP) CEO Bob Dudley told CNNMoney in Abu Dhabi. “Notices of curtailment have gone out from this region. Russia is clearly very serious about participating in that …all the ingredients are there to do it.”

“There is no question in my mind that if this agreement stays intact the floor will be around $50,” Dudley said.

Efforts to curb supply should mean the global crude oil glut will disappear in the first half of next year, according to the International Energy Agency. That’s much earlier than it had previously predicted.

Again, as long as OPEC — led by Saudi Arabia — sticks to its word.

That’s no small caveat. OPEC’s record on that score isn’t good.

Since 1989, OPEC has hammered out several production cuts like the one it just negotiated in November. But in that period, the cartel has produced more oil than its quota in all but a handful of months.

“OPEC (countries) never holds to their deals. They always cheat,” said John La Forge, Head of Real Asset Strategy at Wells Fargo.

Still, there’s a lot at stake for producing countries whose budgets have been hammered, and oil companies who have slashed investment in their businesses.

If the production cuts hold, business intelligence firm Wood Mackenzie says the oil and gas industry could see positive cash flow for the first time since 2014.

“Overall 2017 will be a year of stability and opportunity for oil and gas companies in positions of financial strength,” said Tom Ellacott, Head of Corporate Analysis Research at Wood Mackenzie. “More players will look at opportunities to adapt and grow their portfolios.”

FUG Pensions Partners Down Syndrome Foundation On CSR

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01/01/2017

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The Future Unity Glanvills (FUG) Pensions Limited, one of the frontline pension fund administrators in the country, has partnered with Down Syndrome Foundation (DSF), to organise a Christmas Carol for children of the foundation.

The company, known for its drive to pay back to the society through its Corporate Social Responsibility (CSR) project, has been in the forefront in ensuring that people with special needs, including the children with Down Syndrome have a sense of belonging.

At this year’s Christmas Carol organized and hosted by the company for the children of the foundation, the Managing Director, FUG Pensions Limited, Mr. Usman Suleiman, said the gesture was to assist the children with Down syndrome have a sense of belonging in the society, adding that the PFA, in the past, has been supporting not just the DSF, but also in other CSR projects within the environment it operates.

He maintained that his PFA had in the past, supported the Foundation morally, physically and financially, in a bid to give back to the society it is conducting its business activities. Suleiman pledged that his firm will continue to impact the lives of the less privileged so that they can be successful in the society,

“This is also an avenue to sell not only FUG Pensions brand, but also the entire pension scheme in the country”. Suleiman stressed.

Speaking on the sideline of the event to journalists, the General Manager & Head of Investment, FUG Pensions, Mrs. Ngozi Chuks-Okeke, said, aside the partnership with Down Syndrome Foundation, her company has recently partnered the Federal Road Safety Corps (FRSC) on ember months, donating reflective jackets and distributing handbills to create awareness on speed limits, driving with good tyres and how to have a safe drive all the time, especially, in the current month, where people travel for Christmas and New Year festivals.

She added that the firm equally partnered with Lion’s Club, adopted a classroom at Anthony Village Primary School, where it furnished the classroom with furniture as well as partnered with Bells of Mercy Orphanage Home, all in Lagos State.

While urging other corporate organisations to extend their helping hands to the less privileged in the society, she promised that her PFA will continue to initiate and support projects, such as this, in a bid to grow and develop the country.

This is our own little way of contributing to the society we operates in and we will continue to do more of this, she pointed out.

About FUG Pensions

FUG Pensions was licensed by the National Pension Commission (PenCom) on the 21st of June, 2007 to carry on the business of Pension Fund Administration. Its shareholders are UnityKapital Assurance Plc- an insurance company with shareholders’ funds of N8billion and Glanvill Enthoven & Co Limited- an insurance broking company with over 30 years’ experience in pension fund management and administration.

FUG Pensions has an authorised and paid up share capital of N1.5 billion and operates from six regional offices in Port Harcourt, Ibadan, Abuja, Kano Maiduguri and Lagos and several branch/zonal offices spread across the country.

About Down Syndrome Foundation

Down Syndrome Foundation Nigeria (DSFN) is a non-governmental, non-political, not-for-profit association of children with Down syndrome, as well as their parents, guardians, care –givers and other interested stakeholders. Most of these children are neglected, relegated, or abandoned by their parents and society on the basis of culture and myths that tend to stigmatize them and their family.

They are equally abused physically and sexually with impunity. In extreme cases even their rights to life itself is denied them. It is under this harrowing and ugly backdrop that Down Syndrome Foundation Nigeria (formerly an Association) evolved on the 4th of December 2001, with the avowed commitment to bridge the gap between children/adults with Down syndrome (DS) with the rest of the society, through a support system that seeks ultimately to integrate them into the mainstream of the society which they belong.

Heritage Bank: No Relationship with Heritage Capital

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01/01/2017

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Ifie Sekibo Managing Director/CEO Heritage Bank

Heritage Bank Limited says there is no form of relationship with Heritage Capital Limited suspended recently by the Securities & Exchange Commission for certain regulatory infractions.

A statement from the Management of Heritage Bank read in part:
“Our attention has been drawn to a certain recent publication in some of the national dailies regarding the suspension of a certain “Heritage Capital Market Limited” by the Securities and Exchange Commission (SEC).
“Our concern stems from the resemblance in its name to our organisation, and the impression that this might leave on the minds of our dear customers.
“We wish to hereby state that “Heritage Bank PLC” HAS NO BUSINESS RELATIONSHIP OR ASSOCIATION WITH THE AFFECTED COMPANY – “Heritage Capital Market Limited”.
“Heritage Bank PLC remains resolute and committed to our customer’s upholding in trust the privilege to partner with them in fulfilling your financial objectives.

World Bank: Year in Review-2016 in 12 Charts

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01/01/2017

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Between the social, political, and economic upheavals affecting our lives, and the violence and forced displacement making headlines, you’d be forgiven for feeling gloomy about 2016. A look at the data reveals some of the challenges we face but also the progress we’ve made toward a more peaceful, prosperous, and sustainable future.

Here are 12 charts that help tell the stories of the year.

1: The number of refugees in the world increased

At the start of 2016, 65 million people had been forcibly displaced from their homes, up from 60 million the year before. More than 21 million were classified as refugees. Outside of Sub-Saharan Africa, most refugees live in cities and towns, where they seek safety, better access to services, and job opportunities. A recent report on the “Forcibly Displaced” offers a new perspective on the role of development in helping refugees, internally displaced persons and host communities, working together with humanitarian partners. Among the initiatives is new financial assistance for countries such as Lebanon and Jordan that host large numbers of refugees.

About a quarter of the world’s refugees live in camps

Number of refugees by accommodation type and region (end of 2015)

2: The global climate change agreement entered into force

The pact negotiated in Paris in 2015 was ratified by 118 of the 194 countries that signed it , triggering new commitments to combat global warming. One of the agreement’s major goals is to promote a shift to low-carbon energy. Demand for renewable energy is picking up in developing countries as prices decline. In May, Africa saw its lowest solar price to date when the winning bid to develop large-scale photovoltaic solar plants in Zambia came in at 6 cents per kilowatt hour – or 4.7 cents/kwh, spread over 20 years. That followed bids as low as 3 cents in the United Arab Emirates and 4.5 cents in Mexico. Renewables are now cost competitive in many markets and increasingly seen as mainstream sources of energy, according to REN21.

3: Global trade weakened

In 2016, global trade growth recorded its weakest performance since the global financial crisis. Trade volumes stagnated for most of the year, with weak global investment playing an important role, as capital goods account for about one third of world goods trade.

Trade has been a major engine of growth for the global economy and has helped cut global poverty in half since 1990. A trade slowdown, therefore, could have implications for growth, development, and the fight against poverty.

4: More people had access to mobile phones than to electricity or clean water

Access to mobile phones has surged in low- and middle-income countries, but many of the other benefits of the digital revolution – such as greater productivity, more opportunity for the poor and middle class, and more accountable governments and companies — have not yet spread as far and wide as anticipated, according to the World Bank’s 2016 World Development Report on the Internet, “Digital Dividends.” The report says greater efforts must be made to connect more people to the Internet and to create an environment that unleashes the benefits of digital technologies for everyone.

5: A third of all people were under the age of 20

In around 40 African countries, over 50% of the population is under 20. By contrast, in 30 richer countries, less than 20% of the population is under 20. As the 2015/2016 Global Monitoring Reports notes, the world is on the cusp of a major demographic transition that will affect countries along the development spectrum.

6: 600 million jobs will be needed in the next 10 years

One third of the world’s 1.8 billion young people are currently neither in employment, education nor training. Of the one billion more youth that will enter the job market in the next decade, only 40% are expected to be able to get jobs that currently exist. The future of work is changing, and the global economy will need to create 600 million jobs over the next 10 years to keep pace with projected youth employment rates.

7: 1 in 3 people did not have access to a toilet

The UN estimates that 2.4 billion people still lack access to improved sanitation facilities, nearly one billion of whom practice open defecation. Good sanitation is a foundation for development – conditions such as diarrhea are associated with poor sanitation, and left untreated, can lead to malnutrition and stunting in children. This year’s first High-Level Panel on Water brought together world leaders with a core commitment to ensuring the availability and sustainable management of water and sanitation for all.

8: Most of the world’s extreme poor lived in Sub-Saharan Africa and South Asia.

While over 1 in 10 people lived in extreme poverty globally in 2013, in Sub-Saharan Africa, that figure was 4 in 10, representing 389 million people – that’s more poor people than all other regions combined, according to the World Bank’s Poverty and Shared Prosperity report.

..but extreme poverty is declining worldwide

And while the numbers of extremely poor remain unacceptably high, data in the report reveal the tremendous progress the world has made lifting people out of poverty since 1990:

How Does Extreme Poverty Vary By Region?

The number and percentage of extreme poor by region in 2013

MMM Owner Begs Media: Leave Us Alone

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Business Journal

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19/12/2016

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Sergey Mavrodi , founder of Mavrodi Mondial Moneybox has pleaded with the Nigerian media to leave him and his subscribers in Nigeria alone.

His plea follows strident media reports on the ponzi scheme, especially warnings from Nigerian authorities over the operation of MMM and reports of its payment suspension to members till Janury next year.

The statement from Mavrodi read in part:

“Dear journalists, “analysts” and all kinds of “experts”! Please stop using MMM to gain cheap popularity. Leave us alone and let us work without interference. I’m just astonished by your irresponsibility and cynical attitude. Interests of millions of people, your fellow citizens are at stake. Don’t you have any sympathy for them? Why are you fueling hysteria around MMM and provoking a panic? Why are you doing this so diligently and persistently, what is your purpose? “In fact, absolutely all your provocative and worthless articles and “analyses” (I said “worthless” because you do not have any real information about what happens in the System, and might have never had; you simply invent everything, fabricate it) are merely negative: “MMM has collapsed!!!.. MMM will not be working in January!!!..” etc. “Are you intentionally presenting all of it in such a manner and whipping up tension by any means possible in order to increase the ratings of your publications and attract attention to them? Don’t you care about people at all? “So, nothing has collapsed, and MMM will safely resume its work in January, as announced. Suspension of work for holidays is a usual thing, merely working moment, no more than that. It would have remained a normal, just a part of the usual routine, and might have gone almost unnoticed if it were not for your totally cynical and irresponsible attempts to advertise yourself, create a scandal out of nowhere, and make the most of this news topic in any possible way. “Again, leave MMM alone and let us work. Nothing has collapsed, and MMM will perfectly resume its work in January. We Can Change the World!

Reps Issue 11-Day Ultimatum to CBN over Accounts

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19/12/2016

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The Central Bank of Nigeria has received 11-day ultimatum from the House of Representative over the failure of the banking regulator to submit its audited accounts for many years running.

The Minister of Finance, Mrs. Kemi Adeosun recently accused the CBN and other government departments of not remitting over N450 billion to the federation account as at when due.

In the current case, the House of Representative Adhoc Committee on Government-owned Development Institutions ked by Mr. Chukwuemeka Anohu has summoned the CBN, Bankof Industry and sundry to appear before it today with comprehensive details of their accounts and financial operations dating from 1999.

“Decades after the institutions were established and despite the huge budgetary provisions made for the agencies over the years, their impact in stimulating economic renaissance was yet to be felt.These institutions were charged with the primary mandate of providing long-term financing to the industrial and productive sectors of the economy and were designed to finance the establishment of large, medium and small industries as well as facilitate the expansion, diversification and modernisation of the existing concerns.”

Global Donors Commit $75bn to End Extreme Poverty

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19/12/2016

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A coalition of more than 60 donor and borrower governments have agreed to ratchet up the fight against extreme poverty with a record $75 billion commitment for the International Development Association (IDA), the World Bank’s fund for the poorest countries.

“This is a pivotal step in the movement to end extreme poverty,” World Bank Group President Jim Yong Kim said. “The commitments made by our partners, combined with IDA’s innovations to crowd in the private sector and raise funds from capital markets, will transform the development trajectory of the world’s poorest countries. We are grateful for our partners’ trust in IDA’s ability to deliver results.”

The funding will enable IDA to dramatically scale up development interventions to tackle conflict, fragility and violence, forced displacement, climate change, and gender inequality; and promote governance and institution building, as well as jobs and economic transformation—areas of special focus over the next three years. These efforts are underpinned by an overarching commitment to invest in growth, resilience and opportunity.

“With this innovative package, the world’s poorest countries – especially the most fragile and vulnerable – will get the support they need to grow, create opportunities for people, and make themselves more resilient to shocks and crises,” said Kyle Peters, World Bank Group Interim Managing Director and Co-Chair of the IDA18 negotiations.

“IDA’s focus on issues like climate change, gender equality and preventing conflict and violence will also contribute to greater stability and progress around the world.”

Financing during the IDA18 replenishment period, which runs from July 1, 2017 to June 30, 2020, is expected to support:

Essential health and nutrition services for up to 400 million people
Access to improved water sources for up to 45 million people
Financial services for 4-6 million people
Safe childbirth for up to 11 million women through provision of skilled health personnel
Training for 9-10 million teachers to benefit 300+ million children
Immunizations for 130-180 million children
Better governance in 30 countries through improved statistical capacity
An additional 5 GW of renewable energy generation capacity

“IDA is writing a whole new chapter in the story of development,” said Dede Ekoue, IDA18 co-chair and Togo’s former Minister of Development.

“Together with donors, working hand-in-hand with borrower governments, we are putting forward an innovative, ambitious and responsive package of support that gives hope to the poorest. These interventions will help transform the lives of billions of people living in IDA countries.”

To finance this groundbreaking package, IDA is proposing the most radical transformation in its 56-year history. For the first time, IDA is seeking to leverage its equity by blending donor contributions with internal resources and funds raised through debt markets. By blending concessional contributions from donors with its own resources and capital market debt, IDA will significantly increase the financial support it provides to clients.

“The innovative financing package offers exceptional value for money, with every $1 in partner contributions generating about $3 in spending authority,” said Axel van Trotsenburg, World Bank Vice President for Development Finance. “It is one of the most concrete and significant proposals to date on the Addis Ababa Action Agenda—critical to achieving the 2030 Sustainable Development Goals.”

The additional financing will enable IDA to double the resources to address fragility, conflict and violence (more than $14 billion), as well as the root causes of these risks before they escalate, and additional financing for refugees and their host communities ($2 billion). Increased financing will help strengthen IDA’s support for crisis preparedness and response, pandemic preparedness, disaster risk management, small states and regional integration.

Efforts to stimulate private sector development in the most difficult environments, at the core of job creation and economic transformation, will receive a major push in the form of a new $2.5 billion Private Sector Window (PSW).

The PSW, being introduced together with the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), will help mobilize private capital and scale up private sector development in the poorest countries, particularly in fragile situations.

The funds will also help governments strengthen institutions, mobilize resources needed to deliver services, and promote accountability.

A total of 48 countries pledged resources to IDA; additional countries are expected to pledge in the near-term. The World Bank Group is continuing the tradition of contributing its own resources to IDA.

“One of the extraordinary things about IDA is that it brings different countries together to help the poorest. In this replenishment in particular, we’ve really seen that IDA is truly a global coalition,” said van Trotsenburg.

A total of 75 low-income countries are eligible to benefit from the IDA18 financing package.

4% of Pilots Worldwide Suffer Depression

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Business Journal

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19/12/2016

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According to the findings of a recent study at Harvard, one in eight commercial airline pilots might be suffering from depression. The study also showed that 4% of the 1,850 pilots from all around the world that were surveyed struggled with suicidal thoughts.

The findings have been published almost a year and a half after the intentional crash by a Germanwings pilot in the Alps that took the lives of 150 people.

The unprecedented study glimpses into the mental health of pilots that hide their disorders from their management in fear of losing their jobs. Interestingly enough, an average 7% of Americans suffer from depression, meaning that pilots might actually be twice as likely to have this disorder.

On the 9th of December 2016, EASA has published a proposal to the European Commission on new operational rules to better support pilot mental fitness. EASA’s proposal is part of its Action Plan following the Germanwings Flight 9525 accident.

EASA’s proposal is released in a document known as an Opinion (Opinion 14/2016) and it includes the new requirements on the mental fitness of the pilots, among which is ensuring that all pilots have access to a support programme and mandating airlines to perform a psychological assessment of pilots before the start of employment.

Africa, ME Tablet Market Declines 10% in 3rd Qtr

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Business Journal

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19/12/2016

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The Middle East and Africa (MEA) tablet market continues to decline in the face of cannibalisation from larger-screen-size smartphones.

According to the latest Middle East and Africa Quarterly Tablet Tracker from International Data Corporation (IDC), tablet shipments in MEA dropped 10.1% in the third quarter of the year (Q3 2016) when compared with the same period in 2015.

While shipments were down year on year to 3.85 million units, this still marked an improvement on the 3.52 million units shipped in Q2 2016.

“Smartphones with large screen sizes meet most needs of today’s consumers, who are slowly moving their tasks to these devices,” says Fouad Rafiq Charakla, Senior Research Manager for Client Devices at IDC MEA.

“The continuation of low crude oil prices in the Middle East and currency shortages in several African countries are compounding the problem, eventually leading to weaker consumer sentiment.”

Samsung continued to lead the MEA tablet market in Q3 2016 with 17.6% share, despite the vendor’s reduced focus on the category leading to a 34.3% year-on-year decline in its shipments. Lenovo maintained second position with 13.5% share, up from 12.9% in the previous quarter but down 6.8% on Q3 2015. Huawei followed just behind in third place after increasing its focus on tablets in the region. This resulted in year-on-year growth of 102.8% for 13.5% share. Apple finished fourth with 7.9% share, reflecting a year-on-year decline of 34.6% in shipments, while local vendor i-Life took fifth position with 5.5% share, its success stemming from the popularity of its low-priced consumer products.

“Demand for tablets in MEA is primarily being driven by entry-level slate models,” says Nakul Dogra, Senior Research Analyst for Client Devices at IDC MEA.

“This category offers quite low margins, so the focus on tablets from the supply side is also declining. Many vendors have cut their tablet lineups accordingly, and there don’t appear to be any exciting or innovative developments on the immediate horizon to spur purchases in the tablet space.”

“It’s worth nothing that with little difference between older and newer generation tablets, consumers are typically content with their existing hardware and subsequently holding onto it for a longer period of time,” continues Dogra.

“Free operating system updates ensure that these tablets remain essentially as good as new, so there is little or no motivation for consumers to replace their current devices.”

IDC has revised its overall forecast for 2016 downwards, with 14.49 million units now expected to be shipped for the year. This is down from the previous forecast of 15.07 million units and represents a year-on-year decline of 7.5%. The main factor behind this revision is the significant reduction in the quantity of tablets expected to be shipped as part of the Digital Literacy School Program in Kenya.

Detachable tablets are gaining traction in the market, and shipments are expected to grow by 147.9% year on year in 2016, driven by increasing demand from consumers and the education sector. “Detachable tablets are typically better suited for education purposes than traditional tablets, as these devices are primarily based on the Windows operating system,” says Charakla.

“As such, they can smoothly run the Microsoft Office applications typically required by the education sector. There are also numerous low-cost options with this form factor, which is ideal for large education deals where budgets are tight.”

IDC’s Middle East and Africa Quarterly Tablet Tracker provides insightful analysis of key market developments, covering vendors, operating systems, screen sizes, user segments and distribution channels, quarterly market share data, and a comprehensive 5–8 quarter and five-year forecast.

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