Ease of Doing Business Reforms Under Focus As London Hosts 5^th NDDIS

…ERGP on course

By Clifford Agugoesi                                                                                          

Another opportunity is around the corner for Nigeria to demonstrate to the global investment community that her Ease of Doing Business Reforms are working in line with the government’s economic recovery and growth plan (ERGP), which seeks to restore the nation’s economic status following the high rate of inflation and recession. Although Nigeria has exited recession, the country’s inflation rate hovers around 16 per cent.

As at December 2017, for the tenth consecutive time, Nigeria's Consumer Price Index, CPI, which measures inflation, decreased to 15.90 per cent making it 0.01 per cent lower than the 15.91 per cent recorded in October 2017, according to statistics released on the website of the National Bureau of Statistics (NBS).

As per Afrinvest Research, the Presidential Enabling Business Environment Council (PEBEC) was set up to remove the administrative bottlenecks associated with doing business in Nigeria. At the tail end of 2016, the operational arm of PEBEC - the Enabling Business Environment Secretariat (EBES) agency - became functional with a delivery span of 2 years to implement the reforms of PEBEC.

The impact of these reforms were manifest in the recently released Doing Business 2018 report titled “Reforming to Create Jobs” as Africa’s largest economy  moved up 24 places (surpassing the target of 20) to 145th and ranked in the top 10 most improved countries.

Now, the reforms look set to be further tested as arrangements are in top gear to hold the 5^th Nigerian Diaspora Direct Investment Summit (NDDIS), from April 27-28, 2018 in London, the United Kingdom.

The two day event is being organized in partnership with the Federal Ministry of Communications and Information, The Nigerian High Commission in London, British African Business Alliance, Office of the Senior Special Adviser to the President on Diaspora and Foreign Affairs, Africa Leadership Forum, Afford UK, Cruxstone Development and Investment, NDDIS Business Club, NIPC, UK Department of International Trade and several other high profile partners.

Minister of Communications Adebayo Shittu, while briefing journalists in Abuja, recently, hinted that about 3000 delegates,  including telecommunications companies, investors, funders, government leaders, business leaders, British business leaders, Diaspora business leaders, equipment and technology suppliers, bankers, entrepreneurs, venture capitalists, states and federal government agencies, are expected to participate in the event.

The minister said the aim of the summit “is to galvanize Nigerian businessmen and women in the Diaspora and their counterparts in UK Business environment along with international investors  to establish new businesses in Nigeria.”  He also explained that the summit would be an opportunity to identify potential sources of finance, technology and technological skills that could boost the promotion and stimulation of enterprise and the creation of jobs in Nigeria.

Chairman of the British African Business Alliance,(BABA) marketers of the event, David Smith, communicating with GutsyPen4ICTD, over LinkedIn, seems to agree with Shittu on the number of delegates.  He told us: “Over 2 days the Ministry and Communications Industry Leaders will be appraising the diaspora of the investment and commercial opportunities that are arising in Nigeria and will help to deliver the Ministry targets of broadband deployment throughout the country.

“Nigerian companies and those organisations that support the communications industry and the diaspora. We think delegate numbers will be in excess of 1000 people. However, we are offering an exhibition opportunity that will be open to a wider public and will not be limited by seating. We therefore envisage that the Nigerian Diaspora will attend in large numbers.”  Currently, the marketers are “finalising the details of the venues and costs.”

BABA currently has networks in Aberdeen, Edinburgh, Glasgow, Newcastle, Middlesborough, Manchester, Birmingham, Leicester, Oxford, Reading, London, Edmonton, Peckham/Dulwich, Croydon, Southend, Kent,  Sussex and Belfast.

The main event speaker, Shittu, will meet and present investment opportunities to investors, the office of the Special Adviser to the President on Diaspora and Foreign Affairs led by Mrs. Abike Dabiri-Erewa will present new government position as it affects the Diaspora and other foreign investors; while the delegation from the National Assembly will be led by Senator Lanre Tejuosho.

Several Director-Generals of Federal Parastatals in the Information and Communication Technology (ICT) sector will present opportunities from their various agencies to the audience. Opportunities will be provided for Nigerian based companies to liaise with and explore partnership opportunities with investors from Europe and with the Diaspora.

Shittu listed the Nigerian ICT Road Map 2017-2020, the National Strategic Plan 2016-2024, and the Broadband Plan (2013-2018) as some of the strategies put in place by  government to address some of the sector’s challenges.

He said: ‘‘The sector is the fastest growing at a rate over 25 per cent and currently contributes about 10 per cent to the country GDP.  Nigeria’s over 60 per cent internet penetration means that more 90m people would be online in the coming years. Cloud usage is expected to move more than double to 80 per cent of businesses in the next year.’’

Nigeria has attained a broadband penetration of 22 per cent and telecom analysts are optimistic the nation will achieve its 30 per cent by end 2018.

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Professor Umar Danbatta, disclosed recently that the ICT sector is contributing nearly 10 per cent to the GDP annually, while stating the telecommunications sector has attracted more than US$68billion in private sector investment since 2001."

The NDDIS was wet up to address the questions being raised by the Diaspora and other foreign investors who want to engage with businesses in Nigeria. Many Nigerian business owners and ideas generators are keen to participate in the economic boom of Africa in general and Nigeria in particular.

The Executive Director of NDDIS, Bimbo Afolayan stated: “NDDIS was established to address the questions being raised by the Diaspora and other foreign investors who want to engage with businesses in Nigeria. Many Nigerian business owners and ideas generators are keen to participate in the economic boom of Africa in general and Nigeria in particular.”

Nigeria’s High Commissioner to the United Kingdom, Ambassador George Adesola Oguntade  said: “The economic and technological power of the United Kingdom offers huge potential to the Nigerian Diaspora in the UK and to Nigerian Business, as Nigeria seeks to grow to new economic heights - The Nigerian High Commission is at the forefront of stimulating this interaction.”

Since its inception in June 2013, the NDDIS has hosted several highly successful summits and events that once attracted over 2,000 delegates.

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MTN targets $500M in Nigeria IPO

MTN Group plans to raise around $500million through an IPO of its Nigerian unit, as part of a deal struck with the country’s regulators to settle a $1.7 billion fine, Bloomberg reported.

The operator is exploring the disposal of as much as 30 per cent of the business, which it will list on the Nigerian Stock Exchange. Shares will be sold mainly to local institutions and individuals, but non-domestic investors may be included in the process to ensure the IPO is a success, a source told Bloomberg.

MTN is being advised by Standard Bank Group and Citigroup and discussions are still ongoing.

The South Africa-based company, which is the largest operator in Nigeria, faced scrutiny in the country after being hit with a $1.7 billion fine in 2015 for failing to disconnect unregistered subscribers, violating a security measure designed to crackdown on crime and terrorism.

It then agreed to conduct an IPO as part of its settlement with Nigerian regulators and met with the country’s Securities and Exchange Commission in November 2016 to discuss the process.

Last month, MTN predicted improved annual earnings for 2017, as it bounces back from a net loss of ZAR3.1 billion ($255 million) in 2016 (its first such loss in 20 years).

In a stock market statement issued ahead of the release of its annual results in March, the company said earnings will improve due to the resolution of problems in Nigeria.

GutsyPen4ICTD: Nigeriahits 22 per cent Broadband Penetration

GutsyPen4ICTD:

Nigeriahits 22 per cent Broadband Penetration
<!...: Nigeria hits 22 per cent Broadband Penetration Nigeria may hit its target of 30 per cent broadband penetration by year end 2018, if...

Nigeria hits 22 per cent Broadband Penetration

Nigeria may hit its target of 30 per cent broadband penetration by year end 2018, if current indications to that effect are anything to go by. As at December 2017, the country attained a 22 per cent broadband penetration, telecommunications sector regulator, the Nigerian Communications Commission, NCC, has said.

The Board of the Commission, in its effort to deepen broadband penetration in the country,  recently approved two additional Infrastructure Company (Infraco) Licences, with  Zinox Technologies Limited promoted by techpreneur Leo Stan Ekeh, snapping up the license for South East while Brinks Integrated Solutions Limited got the license for North East.
With this approval, according to information from the NCC, penned by its director of public affairs, Tony Ojobo, the number of Infracos licenced now stand at four.

Over a year ago, MainOne Cable Company Limited,won the licence to provide services in Lagos while IHS got the licence to cover the North Central geopolitical zone including Abuja. The Infraco licences are based on the NCC’s Open Access Model (OAM) in line with the National Broadband Plan (NBP) of (2013 – 2018).  By provisions of the NBP, Nigeria is expected to attain 30 percent broadband penetration by 2018.

As part of the initiative to achieve this, NCC, as the driver of this process, has so far licenced a number of companies to stimulate broadband penetration.
These include Bitflux Communications Limited (Bitflux) for 2.3 GHz and MTN Nigeria for the 2.6 GHz licences. Other licences are in the pipeline in this process. As at December, 2017, Nigeria had attained 22 per cent broadband penetration.

With the licensing of four Infracos: MainOne Cable, IHS, Zinox Technology and Brinks Solutions, there are three more licencees waiting for approval to bring total number to seven.
These are for South South, North West and South West.
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New Boards for Parastatals Under the Ministry of Communication

Nigeria's President, Muhammadu Buhari recently approved appointments into the boards of ministerial departments and agencies (DAs), including the Ministry of Communication.  The National Broadcasting Commission (NBC), has the following: Mallam Ikira Iliyasu Bilbis-Chairman, Members-Saliu Bamidele Aluko, Rabi Anna Haruna, Chief Ajibade E. Balogun, Hon Ndubuisi K. Agbo, Danladi Bako, Dr. Yushau U. Ahmed and Hon Tijani Marafa. 

Others:

National Information Technology Development Agency (NITDA)
Prof. Adeolu Akande-Chairman
Members-Hon Kazeem Salako, Dr. Lawal Bello Moriki, Hajia Binta Mohammed, Mr. Uche Onwude, Rt. Hon. Abdullai Bello and Senator J.J. Akpanunudoedehe.

Nigerian Postal Service (NIPOST)
Barrister Maimuna Yahaya Abubakar-Chairman
Members-Tunde Agbabiaka, Mainasara A. Sani.

Nigerian Communications Satellite (NIGCOMSAT)
Chief George Moghalu-Chairman
Members-Zainab Ibrahim Jabo, Comdr. Chidi Okonji

ICT changes lives – a taste of my dreams

By Huawei Technology

15 December 2017  

My name is Victoria Aduwo, the only female child of my parents and the first of two. I am from Ondo State, Nigeria and I grew up in Navy Town, Festac area of Lagos. My father is a retired Nigerian Naval officer and my mother is an entrepreneur. I studied Chemical Engineering at the Lagos State University, LASU.

Growing up, I always wondered what it was like to be an innovator. As a little girl, I had dreams of being one of the world’s most prominent female innovators. I loved to create things. I enjoyed exploring and experimenting. This shaped all I thought about and all I aspired to do with my time. It fueled my passion. I spent my time experimenting and trying to develop solutions.

Unfortunately, this sort of behavior was generally regarded as masculine, especially as the male gender dominated the sciences, and information technology. I had little or no encouragement from my parents or the people around me. But I was not deterred.

I remember what it was like trying to convince my parents to allow me study Chemical Engineering in the University. My Dad wanted me to be a Medical Doctor. He clearly had his plans for me especially given my position in the family.

I was constantly reminded me that I needed to spend more time building myself as a woman, and not chasing ‘unrealistic’ dreams. The African society still considers the woman’s role as being primarily in the home. I do not entirely disagree, because the home and family should remain important to a woman. However, I do not agree with the idea that a woman should spend the better part of her life in the kitchen, or in the other room for that matter.

The world is itself the woman’s kitchen – a place she prepares and incubates her dreams before serving it to the world to enjoy. I am glad there are many more women in ICT, and that these women are looking to make a difference.

I remember studying Chemical Engineering at LASU. The course was expectedly male dominated and I faced the typical challenges women face being in such environments. People doubted my ability when I tried to prove myself. I was either not given the full credit for my work, or not rewarded for it at all.

This was very discouraging. For the first time in my life, I understood what it meant being in a man’s world. When I tried to be a voice, I was shut down; sometimes by threats. There were times when I would have spent all week building a model or perfecting an experiment. Yet the focus of students and teachers alike seemed to dwell lower down my anatomy than where my mind occupied. My hard work was often times secondary. However, I was determined to keep on trying and I am glad I did because all the hard work eventually paid off.

I had heard a lot about China but like many people of my generation, China meant Kung Fu. China meant the place where anything could be manufactured at low quality. I also innocently had the impression that it was a big country with poor people, poor housing and electricity problems. I had thought generators were used for power at night like most Nigerian neighborhoods. Although I knew it was a tech-driven society, I didn’t know to what extent until I was given the opportunity to see for myself.

My trip to China was facilitated by the ‘Seeds for the Future’ project championed by Huawei Technologies in partnership with the Nigerian Government. I had heard of the Seeds for the Future programme through a friend who sent me the ICT for Change website link. When I told my parents about it, they thought it was one of those scams or ‘promise and fail’ offers by the Nigerian Government.

Though my parents agreed that I apply, no one really expected me to be shortlisted. After all, applications had come from all over Nigeria. Having applied via the online portal, we got feedback after three months that I was one of the shortlisted students. I was so excited but this was just the first phase.

My parents had slowly started to believe but they still had doubts of my final selection. We were invited for the training programme, and scheduled to write an exam afterwards. Forty (40) out of two thousand (2000) students from different Nigerian universities were eventually selected.

The next phase was the interview, after which, ten finalists were selected, and I was one of the ten (10). I was so thrilled when I got the call informing me that I was one of the successful ten. I was commended for my effort and informed of my trip to China. My parents could not have been prouder! To be a top ten candidate from a pan Nigeria exercise, which only required intellectual input was an achievement almost unparalleled in my entire existence so far. Getting the B.Sc. in engineering was special but this was a completely different kind of rush.

Nothing could have prepared me for what I saw in China. Guangzhou airport alone was a wonder. On our trip to Shenzhen, I was completely blown away. During my stay, I realized China was made up of ultra modern cities, high level technologies, state of the art transport systems, great infrastructure. My original perception was completely wrong.

I particularly loved the Yellow Bike Park, which has bicycles accessible for public use via a mobile app. The app grants access to use the bike and makes payment when returned. I saw cars and buses running on electricity. What a wonderland!

Through the Seeds for the Future platform, we learnt so much about ICT and got first-hand experiences in a global ICT firm from leading ICT facilitators. I got hands-on with state of the art technologies.

My knowledge of ICT prior to the trip was clearly limited. I was introduced to the endless possibilities of information technology. I learnt about Smart Cities, Smart Banking, Smart Housing, Smart Digital Pipelines, Smart Agriculture, and Telemedicine. I learnt so much. My desire for innovation and to make an impact soared to an all-time high. Once again, I dared to dream. I could truly achieve anything I set my mind to.

Travelling to China broadened my horizon. I had a rich experience of the Chinese culture and visited so many historical centers like the Great Wall of China, the Zoo and Pearl Market in Beijing, Folk Town and Luohu Market in Shenzhen. I met other students from all over the world.

I made new friends from different countries like Ecuador, Sweden, Peru, and we still keep in touch up till now. I was thrilled to receive birthday messages from my new friends just a few weeks ago. And the people in China are so friendly. The food is exquisite, with a variety of delicacies to pick from like fried duck, crystal noodles, and dried beef. I really cannot wait to go back.

Professionally, my trip to China inspired me to keep believing that I had a future in ICT. I have developed more passion for innovation. I hope to acquire my Masters degree and probably get a doctorate degree in Information and communication technology, ICT.

Now I am back in Nigeria, with my nine colleagues, and I have new skills ready to execute on projects I am currently running. ICT is clearly the future, and has the capacity to change lives. I am so fired up and excited for the future of ICT in Nigeria, especially with my desire to train the coming generation of ICT enthusiasts.

I recommend that the Nigerian government explores the endless possibilities of ICT just like China has done to tremendously enhance its economy, particularly in the areas of human capacity building, knowledge acquisition and the creation of innumerable opportunities for individuals to optimize their potentials. ICT can be a part of our everyday lives, from smart education to smart telemedicine, smart communities, smart banking.

As Nigeria climbs back from its recent recession, the need for diversification increases and ICT can most definitely fast track the process. Currently, according to International Telecommunication Union (ITU), Nigeria is ranks 143 on the 2017 global ranking on ICT Development Index (IDI). This status can be improved with the joint effort of the Federal Government, academia, and the private sector.

With the appropriate funding for research and telecommunication infrastructure, and with the presence of leading ICT organizations like Huawei Technologies in Nigeria, the potential for success is without limit.

Through structured exchange programmes, Nigerian ICT students can attend foreign programmes in China and other leading ICT countries, to improve their skills. An ICT University with global facilitators can also be built in Nigeria. These skills and exposure can be used to improve the Nigerian economy.

My message to the other young people in the ICT space is that the possibilities are truly endless and with hard work, determination and dedication, their dreams are totally within reach.

Thank you Huawei Seeds for the Future, now I can believe again.

10 Firms Make It To 9mobile Bidding Stage

...Regulators raise serious concerns 

Which firm will acquire 9mobile?  This is the question on the lips of investment analysts who have raised their permutation game on the eventual suitor for the telco.  So far, 10 of the 16 companies who had submitted their expressions of interest(EoIs) for snapping 9mobile, have progressed to  the next stage.

Financial advisor Barclays prequalified the ten firms to advance to the financial bid stage of the process.  Those prequalified list the cellular arm of the First National Operator, Globacom, the Indian parent of third-placed Airtel Nigeria, Bharti Airtel; Dangote Group’s telecoms business unit, Alheri Engineering; pan-African LTE operator Smile Telecoms Holdings; infrastructure company Helios Towers; Centricus Capital with Africell, a subsidiary of Lebanon-based Lintel Group; Dubai-based private equity firm Abraaj Capital; Teleology Holdings Limited; pan-African investment firm Africa Capital Alliance (ACA); and The Carlyle Group from the US.

The companies will be required to submit bid bonds of US$150 million each as part of the financial bid process.
The lenders of 9mobile hired Barclays to scout for new investors for the Nigeria’s fourth largest telco by subscribers.

Meanwhile, Nigeria’s central bank (CBN) and telecoms regulator, the Nigerian Communications Commision (NCC) have expressed reservations over how Barclays Africa is handling the sale of 9mobile. The authorities believe companies with strong financial standing and advanced technical capabilities were dropped from the final bidding process.

In a joint letter, the CBN and the NCC said they want the sale process to be “transparent and fair”, but stated financial adviser Barclays Africa had “repeatedly exhibited signs of opacity”.

“Given the overriding public interest in the company and the need for transparency, we advised that Barclays advertise the call for ‘expression of interest’. Barclays declined, insisting instead that the company, being a private one, should not be taken through a public sale,” the pair wrote.
“This lack of a transparent process has proven to be selective and arbitrary, leading to allegations that the process is being teleguided to a rigged and predetermined outcome. The CBN and the NCC will not fold their arms and allow this to materialise,” they added.

Executive vice-chairman of NCC, Umar Garba Danbatta, and CBN governor Godwin Emefiele said their concerns were heightened following complaints from stakeholders, including some bidders.

CBN and NCC called for all decisions taken by the financial adviser to be approved by them in writing and said a 31 December deadline for the handover of 9mobile to the preferred bidders is “sacrosanct”.
The letter was sent to GTBank, the facility agent for a $1.2 billion loan Etisalat Nigeria was unable to pay to a consortium of banks, leading to parent Etisalat terminating a management agreement and the operator being rebranded as 9mobile.
Ten companies reportedly moved to the financial stage of the bid process, including Globacom Nigeria Limited, Bharti Airtel, Smile Telecoms Holdings, Helios Towers and Africell.

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