Author: Anthony Nlebem

BY HOPE IKWE

Vice President Yemi Osinbajo, a frontline All Progressives Congress (APC) presidential aspirant, is projecting economic boom in the offing as he bids for the number one position in Nigeria.

Osinbajo who met with national delegates and APC critical stakeholders from Plateau State in Jos, the state capital, where he promised a secured Nigeria with economic prosperity, emphasised that he will work in collaboration with Nigerians for the advancement of peace and development if elected president in 2023.

The vice president while briefing journalists after an interface with APC delegates at the Government House, Rayfield, Jos, said: “We had a very robust and useful interactive session with the delegates. We had [an] opportunity to share ideas about the economy, about security, health care, education and other sectors of the economy.”

Osinbajo explained that he is in sync with the delegates who have a better understanding of the issues that concern development of Nigeria.

BY CHARLES ABUEDE

The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC), after its meeting on Tuesday chaired by Godwin Emefiele, the bank’s governor, raised policy rate by as much as 150 basis points to 13 percent and retained all other parameters, including the asymmetric corridor of +100/-700 basis points around the MPR; the CRR at 27.5 percent; and the Liquidity Ratio at 30 percent.

The decision puts the CBN in line with steps being taken by other central banks around the world in different attempts to curb money demand growth and upward movement of domestic prices.

Just as was anticipated by a myriad of analysts including those at Business A.M., who had projected the possibility of a rate hike by the CBN Monetary Policy Committee suggesting a marginal 25 basis points, the decision to raise the rate aligns with the point made by this newspaper that the uptrend in inflation had served the committee à la carte, giving it clear reason for a tightening stance in order to rein in the current rise in inflation and avert the adverse effect on economic growth.

It follows the pattern just like it did in May 2020 at the bimestrial gathering, when the MPC tweaked the rates as a result of the coronavirus pandemic, and also to stimulate spending and act pro-growth, and then had to loosen it at the next meeting to 11.50 percent from 12.50 percent.

Nigeria’s headline inflation had risen to another high, according to the National Bureau of Statistics (NBS), as it crossed the 16 percent mark to reach 16.82 percent in the face of the festivities and commencement of the planting season. In March, inflation had printed 15.92 percent. The increase was 1.3 percent points lower than the 18.12 percent recorded in April 2021 indicating a slowdown in the headline index but showing an accelerated increase in prices across all components that yields the headline index.

Governor Emefiele said the decision was made from the deep concerns about the continued uptrend of inflationary pressure, which the committee said may be inimical to growth, and thus hinder the full recovery of the economy.

He also said the committee, in taking the decision for a rate hike, identified several supply-side factors which may be contributing to inflationary pressure, emerging evidence shows that money demand pressure is on the rise and is unlikely to abate until 2023 general elections are concluded.

While reading out the policy communiqué from the meeting in Abuja on Tuesday, Emefiele said, “After carefully reviewing the developments of the last two months and the outlook for both the domestic and global economies, as well as the benefits and downsides of each policy option, the Committee decided to raise the Monetary Policy Rate (MPR) to rein in the current rise in inflation as members were of the view that the continued uptrend would adversely affect growth.

“In the current circumstance, the Committee was of the view that it was confronted with the choice of either to hold all policy parameters constant to allow previous policy measures to continue to support growth or tighten the stance of policy to curb money demand growth and upward movement of domestic prices. A loosening option would likely result in an increased liquidity surfeit, a rise in inflationary pressure, and further pressure on the exchange rate.

“The choice of holding, in the view of members, would not only continue to support growth, even though moderately, but will also allow the growth of money demand to continue at the current pace, leading to the uptick in inflationary pressure. While growth concerns remain paramount to the committee, the persistent uptick in domestic price levels is clearly a downside risk to growth that must be addressed urgently.

“While it may seem contradictory to raise rates in the face of fragile growth, this is the dilemma that most central banks around the world are grappling with at the moment. Yet, on balance, it is quite clear and compelling that tackling inflation is more urgent in the sequence of policy objectives. In this regard, the MPC urged the bank to redouble its efforts at supporting the priority growth-enhancing sectors of the economy while urging the Federal government to do more to provide a safe and secure environment for economic agents to boost activities and growth,” he said.

BY CHARLES ABUEDE

The introduction of the cashless policy by the Central Bank of Nigeria (CBN), the continuing impact of technology and adoption of mobile banking in Nigeria, are contributing significantly to the shift by Nigerians to the use of electronic transfer as one of the preferred methods or channels of payments in the country since the emergence of the coronavirus pandemic.

As a result, the efficacy of the policy has brought improvement in the use of financial services with the adoption of cashless transactions in the first four months of 2022 rising by 44 percent year on year to N117.33 trillion, according to data from the Nigeria Inter-Bank Settlement System (NIBSS).

An analysis of the data from the NIBSS shows that the N117.33 trillion processed through electronic channels between January and April translates to N35.79 trillion more than the N81.54 trillion processed in the corresponding period of 2021. These transactions are monitored by the apex bank, NIBSS through the Nigerian Instant Payment System (NIP) and Point of Sales (PoS) terminals.

The NIBSS data also appears to point to some positives from the coronavirus pandemic as it seems to have led to an increased adoption of the internet which has then aided the switch by Nigerians to the use of virtual banking channels and platforms for their day to day transactions. Consequently, the ease, convenience and fast way of payments through internet-enabled smartphones have brought about the growth in the channel of payments.

However, even though there has been a glaring shift, the increase in the numbers as shown in the data only indicates a gradual yet inevitable shift towards an electronic-based economy, from a cash-driven economy.

According to the NIBSS data, the month of January this year saw the sum of N27.22 trillion processed electronically across the country, which increased through to February, which recorded N27.76 trillion. March and April recorded N32.5 trillion and N29.84 trillion, respectively. These numbers edged above the amounts reported in the same period of 2021 where in January last year, N18.99 trillion was processed electronically, N18.79 trillion was processed in February, N22.55 trillion was processed in March, and N21.19 trillion was processed in April.

The NIBSS data also showed that with the sustained growth from the adoption of electronic banking across the country since the emergence of the pandemic, the data recorded 1.88 trillion times as the number of times transactions through electronic channels were used in the first four months of 2022, representing an increase of 44.26 percent year on year, from 1.3 trillion times reported during the year 2021.

As the NIBSS noted in a 2020 annual statistical report, “COVID had changed the e-payments landscape, and hastened the adoption of instant payments as people switch to electronic channels for funds exchange.”

Also, Lilian Phido, head, corporate communications, NIBBS, commenting on the rise in transactions via electronic channels, said, “It is very clear that more and more people are accepting the channels of payment that are available and the platforms are stable. With stability, these components have grown. With stability more and more people are moving.”

BY CHARLES ABUEDE

Weak daily production at 1.4 million barrels per day, vandalism and theft of crude oil in Nigeria are having a negative impact on the economy of the country, eroding potential windfall gains in its lacklustre performance for the eighth consecutive quarter despite the price of oil averaging $98.5 barrels daily during the first three months of 2022.

The situation has been further compounded by the weak investment inflows into the economy through the oil sector seen in the sustained fall in active rig count to eight from a height of 16, three years ago, and have combined to keep Nigeria’s year on year real gross domestic product (GDP) growth to only 3.1 percent in the first quarter of 2022, marginally down from 3.98 percent in the last quarter of 2021.

The recent GDP report published by the National Bureau of Statistics (NBS), shows that the real growth in the first quarter of 2022 represents sustained positive growth for 18 consecutive months since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020 and indicates gradual economic stability and an improvement in economic performance during the review period. To this, Nigeria’s real GDP moderated to N17.35 trillion in the first quarter of 2022 while the nominal GDP hit N45.32 trillion during the same period.

A cursory analysis of the performance in Q1 indicates that there are some levels of recovery in personal household expenditure in accordance with the latest GDP (by expenditure approach) report, published by the Bureau, which highlighted that household personal consumption grew by 26 percent in real terms in 2021 compared with -1.7 percent a year earlier. Also, the first quarter growth was higher than the 0.51 percent growth rate recorded in Q1 2021 by 2.60 percentage points and lower than 3.98 percent recorded in Q4 2021 by 0.88 percentage points.

Nevertheless, quarter-on-quarter, real GDP grew at -14.66 percent in Q1 2022 compared to Q4 2021, reflecting a lower economic activity than the preceding quarter.

A look at the growth drivers during the quarter indicates that the non-oil sector continued its stellar performance and expanded 6.1 percent to beat both the first and final quarters of 2021 growth of 0.8 percent and 4.7 percent year on year respectively, as the oil sector continues to dwindle, contracting by 26 percent year on year and hitting the highest decline in 10 years.

From the impressive performance of the non-oil sector at 6.1 percent, which was jointly fuelled by the modest growth in the services and agriculture sectors by 7.4 percent and 3.2 percent apiece, the services sector grew on the back of immense growth recorded by the labour elastic sectors such as information and communications, trade, and financial and insurance.

Other vital drivers of the growth were manufacturing and agriculture which rode on the back of improved crop production by three percent and livestock production by 5.6 percent, year on year and was believed to have been helped by the favourable weather condition and intervention facilities, as well as the elevated food items prices which doubled levels from Q1 2021.

In addition, the information and communication sector has remained quite resilient. For instance, MTN Nigeria’s Q1 ’22 results revealed that steady double-digit year on year growth in data revenue continues to drive performance. This was mirrored in all other segments except voice.

In real terms, the non-oil sector contributed 93.37 percent to the nation’s GDP in the first quarter of 2022, higher than the share recorded in the first quarter of 2021 at 90.75 percent, and lower than the fourth quarter of 2021 recorded as 94.81 percent. The real growth of the oil sector by -26.04 percent indicates a fall of 23.8 percent points relative to the rate recorded in the corresponding quarter of 2021. Meanwhile, the Oil sector contributed 6.63 percent to the total real GDP in Q1 2022, down from the figures recorded in the corresponding period of 2021 and up compared to the preceding quarter, where it contributed 9.25 percent and 5.19 percent respectively.

But while the growth may not be highly encouraging at 3.1 percent, down from 3.98 percent last quarter, there is the need for the economy to grow at a considerable pace of at least five percent to five percent to achieve the much-needed inclusive growth and development and inch closer to its fair potential, growth-wise.

This, according to Business A.M. Intelligence can be achieved when there is a diversification into and expansion of the non-oil sector to boost revenue. In contrast, investment in oil and other booming sectors will help drive enhanced growth across the board. On the other hand, they noted that the cases of low investment into the oil sector may stall performance and soaring inflation, in view of the shocks in commodity prices will be a downside risk to growth in the second quarter and 2022 as we approach the general elections.

Ahead of the governorship primaries of the People’s Democratic Party (PDP) in Enugu State, Peter Mbah, a businessman and considered a frontline aspirant, continues to push forward his credentials as the best among aspirants jostling to succeed the incumbent, Governor Ifeanyi Ugwuanyi.

Sources in Enugu, the state capital, said the 15 aspirants in the race for the party ticket are continuing with their intense lobbying. But political commentators and analysts are saying support for Mbah appears to be on the increase, even across party lines.

The PDP is expected to hold its governorship primaries in Enugu and other states on Wednesday, May 25, 2023 in the updated timetable released last week.

Information gathered in the last 72 hours shows that most of the influential leaders in the state known to have a strong say in past voting patterns within the parties and in the elections proper, appear to be queuing up behind the one-time commissioner for finance in the state and who currently runs Pinnacle Oil and Gas Limited, said to be one of the best managed businesses in Nigeria.

Also, it has also emerged that a number of former governors of the state, former senators, and influential non-partisan religious leaders have quietly restated their support for Mbah with one of them quoted as saying that, “Dr. Mbah is in the best position to take Enugu to where the people want it to be beginning from 2023.”

This is coming as the statutory and ad-hoc delegates from the senatorial districts of the state continue to assure Governor Ifeanyi Ugwuanyi that they are solidly behind him and will only vote according to his direction, in the selection of PDP candidates for the 2023 general elections in the state.

The PDP recently conducted ward congresses across the 260 electoral wards of Enugu, a development party members and elders have continued to commend the governor.

One political pundit expressing his view on the primaries said going into the primaries slated for May 23, Mbah has the ‘best choice’ written all over him, adding that there is a strong belief that other aspirants in the Enugu governorship race, know and share quietly in their hearts that Peter Mbah is an authentic leader in his aspiration to govern the state.

According to sources close to Mbah, the aspirant set out to become the most genuine leader to transit from a very successful boardroom leader to a political leader, and is set to replicate his private sector feats in the service of his Enugu people.

There are some analysts who say that as a candidate, the markets favour Mbah because without a baggage of any sort, the ticket appears to be his to lose. Michael Udeh, a veteran politician, believes that, “It’s almost impossible to think that others in the race with him will not try to hit him with some real and imagined dirt. But Mbah, our son is the best we are putting forward for 2023.”

Regarded as a successful leader, Mbah has executive degrees and programmes from leading business schools across the world, including Harvard Business School, IESE Business School, Barcelona, Lagos Business School, Said Business School and Stanford Business School, among others. And as a very successful businessman, Mbah has provided many people with platforms for self actualization through numerous businesses which cut across oil and gas, properties and hospitality, further laying foundations for posterity.

Governor Ugwuanyi has expressed the view that the power sharing arrangement, which has made elections less rancorous and divisive in Enugu State, should be sustained. Interestingly, Enugu East has a number of prominent leaders and former governors, including Jim Nwobodo, who governed the old Anambra State and Chimaroke Nnamani, who began the relay in the present dispensation in 1999.

Ken Nnamani, former president of the Senate, who moved from PDP to APC shortly after the 2015 general elections, is also from Enugu East and has joined in the chorus of voices insisting that Ugwuanyi’s successor should be elected from Enugu East, which has been out of the governorship seat for the past 16 years.

BY CHARLES ABUEDE

Data, they say, is power, and open banking in an economy like Nigeria has the power and potential to revolutionise the financial services landscape for all stakeholders (customers, traditional banks and regulators) as it brings about that fundamental shift from a closed model to a model which allows for the full authorisation and central control of information sharing by the customer to financial and non-financial services providers.

The Central Bank of Nigeria (CBN), last week, introduced the operational guideline for the operation of open banking in Nigeria in its efforts to enhance competition and innovation in the banking system. But the move by the CBN is raising concerns from different quarters on the secrecy of customers’ information and the issue of data breach and information security which, without any doubt, Nigeria’s traditional financial institutions have made giant strides in while maintaining a monopoly of this information.

According to an explanatory note by PwC, Open Banking is a blanket financial services term used to describe the use of open technologies by third-party providers (TPPs) to build services and applications around financial institutions. It provides guidance on how TPPs can access and utilise customer bank data in a standard format to provide more open, transparent and competitive banking services.

However, open banking recognises the ownership and control of data by customers of financial and non-financial services, and their right to grant authorisations to service providers for the purpose of accessing innovative financial products and services. This, the apex bank anticipates to drive competition and improve access to banking and payments services.

For the CBN, the move is to bring about established principles for the sharing of data across the banking and payments system to promote innovations and broaden the range of financial products and services available to bank customers. To this, it said stakeholders involved shall adhere strictly to security standards when accessing and storing data, and shall be subject to minimum privacy standards, operational standards, risk management standards and customer experience standards as prescribed by the CBN.

Guidelines to the operationalisation of open banking in Nigeria, according to the CBN, include the provision of clear responsibilities and expectations for the various participant categories; ensuring consistency and security across the open banking system; stipulating safeguards for financial system stability under an open banking regime; to promote competition and enhance access to banking and other financial services and then, outline minimum requirements for participants.

Before now, the drive toward open banking in Nigeria has seen various developments and efforts to create a uniform standard in the Nigerian banking sector, including the initiatives for the Nigeria Uniform Bank Account Number (NUBAN), Bank Verification Number (BVN) and NIBSS Instant Payment (NIP). These standards have opened up for the expansion and security of the payment ecosystem, landing Nigeria a position in the top five attractive countries for foreign direct investment in Africa.

In spite of all the signs of progress so far, the integration standard among the banks is still to be addressed making it a multifarious integration landscape across the industry. If banks adopt a uniform API standard, there would be more seamless integration with fintech leading to cheaper operating costs and enhanced customer experience. On the other hand, with the progression of open banking, there will be a drastic change in the ecosystem as innovators will be a part of the big table. And by means of making data and systems available to third parties, banks can expand their addressable market, achieve product diversity and commercialise core systems.

In Nigeria, nevertheless, integrating with banks and the financial network has been a complex thread; and anecdotally, as much as 90 percent of all integration projects with banks either fail or are significantly delayed, thus rendering them out-of-date. At this time, startups have to integrate with each bank, which could last months or even years. Even in the case where two banks use the same software, such as Finacle or Flexcube, the technical approach poses a barrier due to the uniqueness of and customised elements within each implementation. With all these challenges, it becomes imperative for a common standard and language for financial services providers to converse; and this is where Open Banking in Nigeria comes into play.

Meanwhile, across the globe, forms are transforming into entering into treaties to share financial data through channels, including APIs. For illustration, in the United States of America (USA), Wells Fargo Bank announced a partnership with Xero (Financial Software Provider) to share all transactions performed in the bank account with the accounting software. Singapore has also launched a large Fintech market built largely around APIs to regulate banking activities.

Other cases for the launch of open banking include the announcement by Finextra that BBVA has officially launched its Banking-as-a-Service platform in the US, using APIs to let firms offer their customers financial products without having to take on full banking themselves. Companies simply plug into a core digital platform and then access APIs including, Move Money, Identity Verification, Account Origination, and Card Issuance services. Also, in Australia, a new data-sharing regime which gives consumers greater access to, and control over, their data, permitting accredited third parties to receive banking data when customers provide express consent for it to be used for a specific purpose took effect July 2019 and other developments in the UK and some parts of Europe and, then, the 2017 open banking framework introduced by the Hong Kong Monetary Authority.

Although the major question banks and other financial services providers may have to ask is: ‘Do I have an inventory framework to know what data has been shared and received and how am I using it?’ Here, all parties involved need to be clear on who sent the data, why and what the data is going to be used for.

Without a doubt, open banking does come with risks and most conversations and concerns around open banking include privacy breaches, data security, cybercrime and fraud. Although open banking does have the potential to magnify the breach and cybersecurity risks when they happen, this could mean financial and reputational exposure for the affected organisations. However, the financial services sector is one of the most secure sectors in Nigeria and PwC experts envisage players will be able to improve their existing security posture to cater to specific open banking threats.

The journey to the acceptance of open banking in Nigeria is very much ongoing, and appears to have a lot of drive. At the moment, legacy banks like First Bank and Union Bank; modern banks like Sterling Bank, FCMB, Fidelity Bank and Heritage Bank; and even neo-banks such as Kuda, Sparkle, VFD Bank and Rubies are on board on the drive. They join the diverse group of providers and partners helping to transform the digital experience in Nigeria.

BY ONOME AMUGE

Aquaculture, which in simple terms is the farming or selective production of aquatic organisms, has shown an increasing trend in recent years, spurred by the global fluctuation in capture fisheries, changing dietary patterns, and a significant rise in the demand among consumers globally.

According to a 2020 report by the United Nations Food and Agriculture Organisation (FAO), Egypt is the leading aquaculture producer in Africa, accounting for 71.1 percent of regional production, most of which takes place in the River Nile, the world’s longest river. Nigeria is ranked the second largest producer in the continent but with a comparatively smaller volume of regional production at below 20 percent.

Though aquaculture is yet to record tremendous growth in Africa, aquaculturists opine that investments in the sector have played a commendable role in curbing reliance on fish imports, and also served as an effective tool for economic development by helping to address food security and employment generation.

Over the years, the growing importance of the demand and consumption of aquaculture species, especially freshwater fish, has catalysed the gradual adoption of aquaculture. Such a situation has also spotlighted the considerable development of tilapia farming.

Tilapia is renowned as the second most cultured species globally and considered by experts as one of the notable value chains that Nigeria needs to explore in the aquaculture space. This is spurred by the fish’s high growth rate, disease resistance, relatively large body size, high survival capabilities under different farming systems and excellent breeding capabilities which makes it one of the most productive and internationally traded fish in the world. The economics (capital and operating cost) and ease of culture are also perceived to be low, making tilapia farming favourable for producers and investors alike.

Moreso, the growing health consciousness among consumers globally and demand for protein-rich diets has further triggered the demand for tilapia, making it one of the most consumed farmed fishes in the world as it contains Vitamin B, selenium, iron,Vitamin D and omega-3 fatty acids, basic requirements for a healthy lifestyle.

Findings by Research and Markets, the world’s largest market research store, showed that the worldwide tilapia market was $7.9 billion in 2020 and it is projected to reach $9.2 billion by 2027, underpinned by rising demand for the versatile fish and the expansion of the e-commerce industry which has also stimulated both industrial and small-scale production.

Data gleaned from the FAO also showed that 5.5 million tonnes of the 82.1 million metric tonnes of aquaculture food-fish production recorded in 2018 came from Tilapia.

On account of the aforementioned factors, IMARC Group, a leading market research company, noted that the market is anticipated to reach a volume of 7.9 million tonnes by 2024, growing at a compound annual growth rate (CAGR) of 3.7 percent between 2019-2024.

Despite tilapia’s remarkable market value, production is not all rosy as challenges such as uncontrolled reproduction, inadequate availability of quality fry, deterioration in seed quality, and limited technical knowledge among farming communities has dampened its commercial success to some extent in not only Nigeria, but also in China, Egypt, Indonesia, the Philippines, leading producers of the commodity.

To address poor productivity of tilapia and inadequate tilapia seed supply, WorldFish, an international nonprofit research institute that advances and translates scientific research on aquatic food systems into scalable solutions, collaborated with partners from the Philippines and Norway to produce genetically improved farmed tilapia (GIFT) deemed suitable for both small-scale and commercial aquaculture.

Under the GIFT project, WorldFish pioneered a systematic breeding protocol with the breeding of full sibling families that were grown in separate cloth net cages until big enough to be individually tagged with microchips, before stocking seed from other parents into a communal pond, with the performance of all fish being monitored individually. Fish from the best-performing families were selected as parents of the next GIFT generation.

Since the inception of the project in 1988, WorldFish has conducted over 28 years of selective GIFT breeding which have been adopted in Bangladesh, Brazil,China, Ghana, Egypt, the Philippines, Thailand, among other countries.

Citing assessments from countries where GIFT breeding was adopted, WorldFish identified improved productivity, increased rural income and employment and other socio economic benefits.

An Asian Development Bank (ADB) study disclosed that the economic internal rate of return on investments (ROI) in GIFT development and dissemination was over 70 percent over a period from 1988 to 2010, with an estimated net present value of $368 million.

WorldFish, in a 2017 study, also found that GIFT yields were significantly higher compared to non-GIFT yields, adding that GIFT species were more profitable and cost-effective,making them better alternatives in the global market.

WorldFish introduces GIFT to Nigeria

In March 2022, WorldFish announced an inclusive legal agreement with Premium Aquaculture Limited (PAL), the largest tilapia production company in Nigeria. The genetically improved farmed tilapia, according to the agreement, is aimed at boosting the productivity of the Nigerian tilapia fish markets by 2023.

Highlighting the benefits of transferring GIFT into Nigeria, the research and innovation institution stated that it would introduce a new domestic industry in Nigeria for tilapia farming, increase smallholder income and employment, deliver significant quantities of new fish products to narrow the fish supply-demand gap and lead to better nutrition and health among the Nigerian population.

Commenting on the agreement, Colin Shelley, WorldFish project leader for the Bill and Melinda Gates Project, remarked that it reflects WorldFish’s ambitions for future growth and investment in the African continent and its commitment to support small-scale aquaculture producers to chart their pathway out of poverty.

On his part, Sunil Siriwardena, WorldFish Nigeria country manager, explained that the development will provide the foundation for establishing a sustainable private sector-based GIFT seed and grow-out industry in Nigeria.

“This programme is designed to prepare and bio-securely transfer GIFT from Malaysia to Nigeria, establish a GIFT breeding population for disease-free broodstock/seed dissemination and create a healthy GIFT seed industry/business and GIFT-seed-based smallholder out-grower business/industry in Nigeria,” Siriwardena stated.

Based on the agreement, WorldFish stated that GIFT fry will be transferred from its headquarters in Malaysia to Premium Aquaculture Limited’s quarantine facility in Ogun State in May 2022.

FishNet Alliance, HOMEF oppose GIFT

However, FishNet Alliance, a network of fishers engaged in and promoting sustainable fishing in line with ecosystem limits, has offered resistance to the planned introduction of the genetically improved tilapia fish into Nigeria, arguing that GIFT is not a solution to the root cause of challenges in the fisheries sector, neither will it solve the hunger and malnutrition problems in the country.

The alliance further alleged that the improved variety was produced to suit industrial aquaculture models, while neglecting its ecological and environmental implications.

Stephen Oduware, the coordinator of the organisation, explained that while the implication of having genetically improved tilapia released into the wild is yet to be ascertained, research has shown that escapes from aquaculture facilities are common and could bring severe consequences to local fish populations. He further cautioned that the “artificial” species, if allowed into Nigeria, would crossbreed and eventually lead to the extinction of the natural variety thereby distorting the nation’s rich biodiversity.

Oduware highlighted pollution caused by oil and gas and other minerals exploration and exploitation; insecurity and piracy; illegal, unreported and unregulated fishing activities of national and international trawlers, as challenges affecting tilapia production in Nigeria, adding that they are important issues that the government needs to focus on resolving rather than adopting genetically improved farm tilapia.

Speaking in the same vein, Nnimmo Bassey, the director, Health of Mother Earth Foundation (HOMEF), noted that the Nigerian environment is already overwhelmed with many genetically engineered crops and products with controversial results.

Bassey, who wondered if Premium Aquaculture Limited consulted with stakeholders and consumers before signing the agreement with WorldFish, warned that the introduction of genetically improved tilapia may be a step towards the adoption of genetically engineered fish into the Nigerian environment.

The coalition, therefore, appealed to the federal government to withhold regulatory approvals for the release of the altered fish variety until the biosafety concerns around it were addressed and regulatory authorities strengthened.

The government was also advised against embracing novel varieties coming under the guise of philanthropy that may negatively affect the country’s food systems.

On his part, Akpos Ejumudo, chief executive officer, Goldfisher Innovations & Logistics Ltd, a tilapia fish production and consultancy firm based in Warri, Delta State, raised optimism that the introduction of improved varieties into the Nigerian tilapia industry would improve production.

Ejumudo however maintained that there are more important factors that need to be considered to ensure Nigeria produces the required quantity and quality that meets local demand and also, gain significant recognition in the global market.

The fishery expert opined that one of the most effective ways to encourage increased participation in tilapia farming is to ensure consistent and formulation of high-quality fish feed products at affordable rates.

According to Ejumodu, Nigeria can be at the forefront of commercial tilapia production if the local production system is improved with greater emphasis placed on establishing best-practices of quality standard.

He also enjoined the government, stakeholders and experts in the industry to implement new innovations, establish professional training for local farmers, support investors through funding opportunities, and intensify local research and technologies channelled towards improving production of the local species.

Doing these, he stated, would help to bring greater market credibility, improve margins, and ensure that a more consistent quality product is available.

BY CHARLES ABUEDE & ONOME AMUGE

It may sound alarming that billions of naira may be lost effective June 1, 2022, as the Lagos State government begins the gradual clearance of commercial motorcyclists, popularly known as okada riders, from Nigeria’s commercial capital city.

The amount generated as revenues from fees and collections from an estimated 37,000 commercial motorcycle riders, according to figures from the Motorcycle Operators Association of Lagos State (MOALS), accounts for a good percentage of the state’s total internally generated revenues on a monthly basis.

National Bureau of Statistics (NBS) data analysed by Business A.M. indicate that Lagos State generated N127 billion in the first quarter of 2021 and N267.23 billion after the first six months of 2021. The data further showed that the state recorded about N45 billion (N44.5 billion) in monthly internally generated revenue in 2021 which translates to about N540 billion in annual IGR.

The Lagos State government, following security threats to life and property believed to be posed by the motorcycle or okada riders, has now dropped the hammer with a ban on the operations of the commercial motorcyclists, in the state metropolis effective June 1, 2022. The decision followed the gruesome murder of Sunday Imoh, a sound engineer in the Lekki area of the state by okada operators over an altercation involving N100.

Babajide Sanwo-Olu, the Lagos State governor, who issued the directive during a meeting with the state’s commissioner of police, area commanders and divisional police officers (DPOs) at the State House at Alausa, Ikeja, said:

“After a critical review of our restriction on okada activities in the first six Local Government Areas where we restricted them on February 1, 2020, we have seen that the menace has not abated.

“We are now directing a total ban on Okada activities across the highways and bridges within these six local governments — Ikeja, Surulere, Etiosa, Lagos Island, Mainland and Apapa — and their Local Council Development Areas, effective from June 1, 2022.”

Efforts to put a red flag to the operations of this segment of the transport business and the model by the state government can be traced back to the late 2000s and early 2010s when the state government, under the Babatunde Fashola administration, banned okada operations, stating that they were abetting robbery and other unscrupulous acts in the state.

This was followed by the government’s imposition of protective helmets on commuters and riders, respectively. This became a standard in the state but was abandoned when several conspiracy theories emanated from some quarters, giving credence to the rumours making the rounds that some of the bikers were involved in fetish acts.

The above event brought about the need to register all commercial motorcycles in the state and obtain an operating licence from the government through their local government councils. It seemed to calm frayed nerves and appeared to lay the matter to rest as more individuals filed for registration and consequently pulled a bumper harvest and led to a surge in the state’s revenues from this segment in the years that followed.

In 2019 there was the emergence and birth of some registered and tax-paying ride-sharing firms that took advantage of the teeming population in the state and the need to bridge the existing gap between demands for motorbikes to commute a longer distance in the face of the notoriously, energy draining long hours spent on a very frustrating Lagos traffic. It gave rise to businesses like Gokada, Max.ng, ORide, among others, who came into a market sprouting rigorously, to change the transport landscape in Lagos and Nigeria; and also create more employment for citizens.

Unfortunately, this industry was short-lived following allegations that members of the state’s task forces feasted on the riders by allegedly extorting some of them, notwithstanding the fact that their companies paid taxes to the government. An impasse between the task forces and the companies that lingered, led to an enactment by the state government which put a dead end to the then growing and promising industry in Lagos and Nigeria.

In February 2020, the Lagos State government distinctly barred the operation of bike riders in some selected local government areas of the state owing to allegations that they deliberately created and worsened traffic congestions, perpetration of criminal activities by the commercial motorcyclists and being accident prone as there was loss of human lives due to the non-compliance with traffic rules and regulations in the state.

The decision was greeted with different reactions by stakeholders, with some arguing that the average Lagosian who depends and fends for the family from the earnings in the business would be left with nothing as they are made to return to the street, engage in crimes or engage in all manners of social vices, including touting activities. In the midst of it came lockdown imposition as a result of the outbreak of Covid-19.

While the recent ban is yet to get into gear since it takes effect from June 1, the announcement has been greeted with mixed reactions from different quarters. In particular, there are some who have described the action as an overreaction and a scratch on the surface of reality, as it leaves out pressing issues of priority in the wake of events that seem to be without serious threats.

John Adeyeye, a security guard at a company located in Apapa, lamented that the ban would subject him to the gruelling condition of walking a long distance from his home to his workplace. He added that most people are going to lose productive time on the road trekking because buses don’t operate in some of the places where motorcyclists have been banned from operating.

Speaking in a similar vein, Abubakar Yakubu, a 300-level student at the Lagos State University, opined that the ban would create a bigger disaster rather than resolve traffic challenges, considering the significant role the motorcycles play in easing transportation and providing income for passengers and commercial motorcyclists, respectively.

Farinu Bakare, a motorcyclist and father of three children, lamented that the ban would have an adverse effect on both himself and his family being that the route he operates his motorcycle is among the areas affected by the ban, rendering him jobless until he is able to seek another source of income.

Bakare who is also a registered motorcyclist under the Motorcycle Operators Association of Lagos State, Ikeja Chapter, described the ban as unjust, noting that he and many other motorcyclists had been operating in compliance with traffic regulations.

On his part, Williams Adeyemi, a secondary school teacher, considers the ban a welcome development, adding that the decision was long overdue as it had gotten to a state where the motorcycle operators had constituted themselves a nuisance to the environment through their disregard for traffic regulations, thereby endangering the lives of many youths.

Ndubuisi Eke, a computer dealer at the Computer Village in Ikeja, said many robbery incidents across the state were perpetrated by commercial motorcyclists. Eke opined that a ban on their activities would drastically reduce the crime rate across the city.

Meanwhile, Gbenga Omotosho, commissioner for information & Strategy, Lagos State, in his justification of the ban, noted that 1712 accidents have been recorded in Lagos in the first quarter of the year out of which 767 or about 45 percent of the accidents involved motorcycles. This, according to him, shows that motorcycles have in many cases put a lot of lives at risk.

The deadline, he explained, is to enable the okada operators to find time to seek alternative jobs, work routines and ease traffic gridlocks on the roads

“Lagos is aspiring towards being a megacity and the goal of the government is to have a Lagos without motorcycles because there is no megacity in the world that you go to and find this kind of mode of transportation,” he added.

Omotosho further explained that the state government is committed to providing alternative means of transportation, including mini buses, water jetties and the soon-to-be-completed railway system, to ease traffic.

BY MADUABUCHI EFEGADI

African business leaders have been shown through a study how greater innovation from telecoms and technology companies can fuel Africa’s economic growth, but they are, however, sorely worried that huge infrastructure problems are a key hindrance to this expected advancement, according to new research for blockchain-based mobile network operator World Mobile.

The study which interviewed senior business leaders from Nigeria, South Africa, Ghana, Ethiopia, Cameroon, Botswana, Angola and Tanzania whose companies have a combined annual revenue of more than $6.75 billion, found that 65 percent of these business leaders worry that a lack of infrastructure is stopping traditional telecom companies from delivering the internet connectivity the continent needs.

But they are optimistic that innovation from new entrants will achieve dramatic improvements. Nearly 71 percent of them say new approaches were expanding internet connectivity to the continent’s hard-to-reach areas more affordably.

The study also found that executives believe the expansion of the African middle class coupled with government support was driving demand for innovation. Two-thirds (or 66 percent) believe connectivity will improve over the next five years with a quarter (24 percent) expecting dramatic improvements, the research among senior executives at companies based in Tanzania, Angola, Botswana, Cameroon, Ethiopia, Ghana, Nigeria, and South Africa showed.

For the African business leaders, the biggest benefits of expanding connectivity will be growing internal trade on the continent which was highlighted by 78 percent. Around 75 percent pointed to growth in international trade, while 55 percent however, said it has rather led to better education and healthcare.

Micky Watkins, CEO of World Mobile said there was growing confidence that Africa is on the verge of a revolution in internet connectivity with innovators such as World Mobile responding to the huge growth opportunities across the continent and government support.

However, the research with business leaders observed that there was some scepticism with more than a quarter of senior executives saying they expect no change in connectivity over the next five years and pointing to potential roadblocks such as bureaucracy and a lack of innovation.

“Improving internet connectivity is vital to delivering the potential of Africa, which is not just good for global economic growth but also for improving living standards across the continent and we are focused on playing our part in supporting innovation,” Watkins said.

World Mobile is helping to revolutionise internet connectivity in sub-Saharan Africa, and is already working with the government in Zanzibar where it is launching a unique hybrid mobile network delivering connectivity supported by low altitude platform balloons.

Africa to date, on a regional scale has the lowest number of Internet connections—only 22 percent of the continent has access. It also has the largest potential for progress. The African Union (AU), with support from the World Bank Group, has set the goal of connecting every individual, business, and government on the continent by 2030.

BY PHILLIP ISAKPA

Africa’s biggest non-banking financial institutions, largely on account of their insurance businesses and presence in Africa, hence the biggest insurance company, recently emerged following the marriage between Allianz, already big globally and in Africa by its mere presence, and Sanlam, one of the old foxes in the business on the continent, and immediately focused attention of many on what the continent should be expecting following the combination.

While it is the entire continent that is now on the lookout for how and what the Allianz-Sanlam combination would unfold, the Nigerian insurance industry is salivating over what might still be. Allianz is in the Nigerian market and has been making a strong play in it since it settled down to do business. Sanlam is also playing deep in the Nigerian market and the decision to come together opens up room to speculate if two could soon become one since Sanlam is trading under a name that it can easily now discard. Time will tell, say analysts.

Sanlam is well regarded in Africa, being its largest non-banking financial services company. Allianz is a global player, one of the world’s leading insurers and asset managers and has been in Africa for at least a century. They both said they will be combining their current and future operations across Africa to create the largest Pan-African non-banking financial services entity on the continent. The key word is entity, not entities, which immediately gives away the fact that in Nigeria Sanlam-owned FBN Insurance and FBN General Insurance are heading for a tie-up with Allianz. This will be interesting to watch given that the Nigerian insurance market has defied different permutations to get it to wake up to its ‘responsibilities’, perhaps from slumber!

According to the two companies, there is the belief that the combination would offer their customers across the continent the opportunity to benefit from the expertise and financial strength of the two respected and well-known brands.

They explained that the joint venture will house the business units of both Sanlam and Allianz in the African countries where one or both companies have a presence, adding that Namibia will be included at a later stage, but that South Africa is excluded from the agreement. That’s understandable because South Africa is already a financially developed market. So is Nigeria at play here, as one major target out of many?

What more does the combination offer? Well, they have said, strong synergies. As they explained, “the combined operations of Sanlam and Allianz will create a premier Pan-African non-banking financial services entity, operating in 29 countries across the continent. The joint venture will be the largest Pan-African insurance player and is expected to be ranked in the top three, in the majority of the markets where the entity will operate. The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (approximately 2 billion euros).”

According to the two firms, “Sanlam and Allianz will leverage each other’s strengths to unlock synergies and provide customers with best-in-class, innovative insurance solutions and technical excellence. The joint venture will create value for all stakeholders through greater economies of scale, broader geographic presence, larger combined market share, and a more diversified product offering.”

They both noted that combining Sanlam’s expertise in Africa with Allianz’s global capabilities and insurance solutions, particularly for multinational businesses, they said their goal is to increase life and general insurance penetration, accelerate product innovation and drive financial inclusion in high-growth African markets.

“In line with Sanlam’s stated ambition to be a leading Pan-African financial services group, the proposed joint venture will enable us to take a significant step towards realising that ambition. It will also strengthen our leadership position in multiple key markets that are core to our Africa strategy, building quality and scale where it matters. We are delighted to have Allianz as partners and believe their expertise and financial strength will add tremendous value to our businesses,” Paul Hanratty, group chief executive officer, Sanlam Group, said.

In response, Christopher Townsend, member of the board of management, Alliaz SE, said: “In accordance with our enterprise strategy to expand our leadership position through scale and new partnership models, Allianz is pleased to accelerate its growth in this important region through a partnership with the undisputed market leader. Sanlam’s capabilities extend our local reach and market penetration, and the joint venture allows us to establish leading positions in key growth markets for Allianz.”

With the combination set in motion, it would be interesting to see what the game plan is for Africa’s largest economy, Nigeria, especially given that they are already in the market. How would these giants coming together shake and shape Africa’s biggest sleeping insurance market? Observers watch and wait to see.