Stakeholders in the economy have at various times rued the continuous borrowing by the Federal Government, especially in recent times. This is why at various times, the government has been advised to look inwards to generate revenue instead of the constant resort to borrowing. One viable means to achieve this is through taxation, which experts say remains one of the areas the government needs to grow if it desires better revenue. In this interview with President, Chartered Institute of Taxation of Nigeria (CITN), Adesina Adedayo, he espouses ways through which the government can raise its earnings through taxation; structures and strategies required to ensure more Nigerians pay taxes and how to efficiently use tax resources. Adedayo speaks with COLLINS NWEZE.

What are your views on taxing tech giants like Google, Facebook, and Twitter that the government has  complained about not paying the right taxes?

My views are strictly based on the law, international practice, our policy, administration, governance and politics. In my opinion, the logical question is: what constitutes the “right taxes”? The international nature of these tech giants shows clearly the necessity of cooperation and collaboration among nations.This is to address what is fair and equitable and we need to get what is justly ours.

What should the government do to earn more income from these tech giants?

We need to review what countries with similar circumstances to ours are doing in addressing this problem, raise it at international fora and do what is needful in terms of engagement to ensure this is addressed.

Our Faculty of International Taxation is following up with the progress in the multilateral agreement on the digitalisation of the economy. October 2021 will be a watershed on this subject as the Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting will likely perfect the agreement signed in July, this year. The outcome of the event will determine to, a large extent, the likely government policy and legislation regarding the taxation of digital companies.

Can the poor payment of taxes in Nigeria be linked to the country’s  economic challenges?

I will try not to use the chicken and the egg argument. How did we get to the level of  economic challenges, one may ask? How did we deploy our previous revenue for purpose of accountability? It is only when we address accountability that we can talk about attitudinal change, otherwise this will be challenging.

Given the low tax to Gross Domestic Product (GDP) ratio in the country, what structures do you think the government can put in place to ensure that more Nigerians pay taxes, especially corporate tax?

I will talk from only two angles: advisory and research.Talking from advisory perspective, we should be focusing on infrastructure, enabling environment and investment in data base management based on integrity and not politics. Talking from the research perspective, there is the need if I have to borrow from the religious perspective, for the leaders to know the state of their flock (citizens). Serious minded questions such as, who are the people/entities behind all these companies? As a nation, we need to be deliberate about our developmental objectives, craft appropriate strategies and apply these four actions to track implementation. They are monitor, evaluate, account and learn as you progress from one milestone to another.

The International Monetary Fund (IMF) and World Bank have advised Nigeria to raise its tax rates and increase tax net. Do you think that Nigerians are paying enough tax when put side by side with the level of infrastructure executed by the government with tax income?

The challenge lies in the breadth and depth of our systems, including the tax system. In my view, raising the tax rates is the depth side and, I need to say, this must be cautiously approached. If we have to be sincere with ourselves, the social protection of the citizens comes more from friends and family members and, with about 40 per cent of the population operating at poverty level, the next question will be, how far can you go with this option?

On the issue of increasing the population of those in the tax  net, this appears logical to me. If you find yourself fishing in an ocean, you do not use a small fishing net. You strengthen your fishing equipment, build capacity and go to the deep part of the ocean and catch the big fish.

The big fish will not only be good consumption for a large family, the economic benefit, including infrastructure deficit, will also be addressed. I think we can do better in terms of our compliance culture relating to payment of taxes and the government can do better in terms of accountability and infrastructure financing.

What do you think is the solution to Nigeria’s huge debt burden that is threatening the country’s economic stability?

One of the first lessons in street wisdom I learnt is that, if you are in a hole, stop digging.  I also learnt in my professional journey as a tax adviser, business planner and turnaround specialist that, if you desire an economic turnaround, you do one of two things or both: reduce your overheads and/or increase your income.  In my view, let us plug the leakages and loopholes in governance, programmes and policy frameworks, then we will gradually start our journey out of the hole.

What is your view on the rising complaints against tax practitioners by taxpayers, especially as it relates to multiple taxation?

Let me clear a misconception. The complaints cannot be against the tax practitioners, because these are just professionals within the tax system.The complaints can only be against the tax system. We need to review our governance model, tax policies and attitude to compliance while not ignoring tax accountability. Without going into technicality, there is a need to have a proper perspective into our understanding and clarification of what we mean by ‘multiple taxation’ in the Nigerian context.There are some elements of rascality within the system, which is not an issue of multiple taxes but a symptom of governance and systemic failure while other cases have to do with legislative and administrative review which we have always addressed as an institute.

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Some tax practitioners have been found wanting in several instances. How do you hope to call erring members to order? Any sanction for complacent members?

We have mechanisms in place from allegation to investigation and discipline once an infraction of what we stand for is breached.  We refer allegations to our Investigation Panel to investigate and deal with. A no-case submission discharges the member but if there is a case submission, it is referred to the Disciplinary Tribunal.

It is at the Disciplinary Tribunal that the final decision is taken on such cases and it may interest you to know that a representative of the Attorney-General of the Federation from the Federal Ministry of Justice is a member of the Disciplinary Tribunal as an assessor.

What is the approved code of conduct for members and what is the level of compliance and sanctions within the system?

Our members are within the public sector, private sector, academia and in professional practice. The nature of misconduct will vary, but in whatever form it manifests, we have zero tolerance for any misconduct. The cases that have been brought to our attention have been summarily dealt with and I can boldly say, our members comport themselves with integrity and high sense of professionalism.

What piece of advice do you have for companies and individuals that refuse to pay tax because they are not seeing commensurate development with tax resources?

Technically, this is an offence against the state. Oliver Wendell Holmes, former Justice of the United States Supreme Court, said: “Taxes are what we pay for a civilised society.” The only piece of advice I will give to such individuals and companies is to follow the right path of compliance before it is too late.

How is CITN collaborating with their counterparts in other parts of the world to ensure it achieves its objectives?

We collaborate at global level, through our membership of the Global Tax Advisers Platform. We are part of the restructuring of the Association of African Tax Institutes. We were part of the formation of the West Africa Union of Tax Institutes, where I was privileged to serve as the International Honorary Treasurer for eight years. Nigeria was also privileged to lead the association as president on three different occasions.

We also collaborate in terms of membership development with Association of Certified Chartered Accountants (ACCA). Within Nigeria, we are part of the Association of Professional Bodies of Nigeria. We also have a working relationship with the Chartered Institute of Bankers of Nigeria, Institute of Chartered Secretaries and Administrators of Nigeria, Chartered Institute of Stockbrokers, Association of National Accountants of Nigeria and the Institute of Chartered Accountants of Nigeria.

As the 15th President/Chairman of Council of CITN, what is your vision for the institute?

My vision aligns with the long-term vision already crafted for the institute, which is, ‘to be one of the foremost professional associations in Africa and beyond’.  My part in actualising this vision is to move the ball forward, so that, incrementally, we get closer to this ultimate goal. I can assure you, each word in that vision means a lot when you break it down. As at today, the institute has gained primacy in tax matters in all its ramifications in Nigeria. We have the intellectual power bank. Everyone that matters in the tax system has one thing or the other to do with CITN.

Can you give us a breakdown of the agenda for your presidency?

I have put together 10 articles of faith that will drive my tenure as the 15th President/ Chairman of Council of CITN.

My plan is to be a team player and run a collective presidency,  harvest the diverse intellectual backgrounds and wisdom of Council members in particular, and CITN members in general, in the quest to take the institute to its apogee of glory and provide a working environment comparable to the best from other institutes, and to work with council to provide more opportunities for capacity building for the staff.

Within my tenure, I would reward staff loyalty and dedication to the institute in line with our motto of “Integrity and Service” while indolence and indiscipline will be frowned at and punished and improve the visibility of District Societies and their impact within their jurisdictions.

It is also an opportunity to engage meaningfully with the district societies through effective use of the media to ensure that distance and logistics do not constitute barriers to effective communication while ensuring the  adoption for operational implementation the Draft 2021 to 2027 Strategic Plan in 2021 to serve as directional compass for this administration and the next two administrations.

My tenure will also give me an opportunity to  ensure that the contents of the Strategic Plan for Y21-Y27 are holistic, and will be applied for the following purposes. First is by crafting of strategic agenda for recognitions, quality and up-skilling.

In relation to employers, educational institutions and learning providers: crafting of strategic agenda on ethics and standard practices; and concerning regulators, policy makers and the general public: crafting of a strategic agenda on trusts, collaboration and influence.

We will also implement the Strategic Plan in a manner that will connect with stakeholders, build administrative and technical capacity, and effective communication.

We will further implement policies that will influence the emergence of a new tax system that will make Nigerians talk tax.The envisaged new tax system will incorporate the use of Technology (Research/Technical, Administration and Practice), Data Analytics (Descriptive, Diagnostic, Predictive, and Prescriptive), and Environment x-ray (Economic Indicators, Revenue Generation and Fiscal Policy).

To lead the institute in playing a critical role in national growth and development, and to mobilise its members and the public to  continue to ask the right questions with respect to generation of revenue, accountability for such revenue and productive utilisation of such revenue.

There are fears of food crises across the country. While Nigeria has vast arable land, it has remained unharnessed. This, among other reasons, accounts for the creation of the National Agricultural Land Development Authority (NALDA) by the Federal Government. Its Executive Secretary/Chief Executive Officer, Prince Paul Ikonne, in this interview with JULIANA AGBO, explains that the agency is working hard to ensure that land is used efficiently by farmers for adequate food production. One way it is achieving this is by the creation of integrated farm estates across the country.

How will you describe the National Agricultural Land Development Authority (NALDA) Integrated Farm Estate and how will it impact on the economy?

The National Agricultural Land Development Authority (NALDA) Integrated Farm Estate is designed with a production chain for food and livestock. The system is organic and will be fully mechanised with all-year-round farming  as irrigation systems will be deployed across all zones. The aim is to make agriculture attractive to our citizens, especially the youth to increase our agricultural output as a nation. The farm estate, when replicated across the country, will increase Gross Domestic Product (GDP), reduce unemployment and will go a long way towards achieving food security.  As the number of enterprises increase, the profit margin also increases and further generates employment opportunities for the farming communities all year round and this will provide better economic and nutritional security. This will go a long way to uplifting rural life through increased income. The project is a true reflection of what NALDA is meant to achieve in every community in terms of impact by improving standard of living and income generation.

Soil rotation is a challenge for farmers. What are you doing in educating farmers on best practice to maintain soil quality?

We have trained soil doctors and agricultural extension workers on soil sample collection and testing as well as extension services.The trainees comprise graduates with science-related educational backgrounds and corps members were awarded certificates and also given test kits to facilitate their field operations. The programme is an effort geared towards introducing young people into the scientific method of farming for better crop yields and food security. It is expected that the injection of soil doctors and extension service providers into the agricultural system will correct the anomalies of non-soil testing so that farming becomes healthy for the environment, humanity and quality food production.

What measure is NALDA taking to prevent looming food insecurity in the country?

To produce what Nigerians eat and create employment opportunities for youths and women,  the NALDA is supporting the drive for food and fibre security while assisting in diversifying the economy, improving household incomes, enhancing revenue mobilisation and generation. We have introduced a series of projects. They include: the National Young Farmers Scheme (NYFS), Women In agriculture, Back to Farm Initiative and Agro Input Initiative.

After the inauguration of the first NALDA Integrated Farm Estate in Katsina State, what is the next step for other zones?

NALDA has commenced the implementation of the directive given by President Muhammadu Buhari after the inauguration of the first farm estate in Katsina State that the Authority should replicate the Integrated Farm Estate module in all the 109 senatorial zones in Nigeria. We have also identified and recovered land in Gombe, Borno, Adamawa, Taraba, Niger, Kebbi, Oyo, Imo, Katsina, Lagos, Ekiti, Delta, Bauchi, Yobe, Kaduna, Benue, Kogi, Osun, Anambra, Akwa Ibom and Abia states. We have started reactivating them in phases. For us, it is purely based on the President’s directive to reactivate abandoned farm estates and create new ones to create employment and achieve food security for the country and also attract youths to go into modern farming and see this as a means of livelihood.

Where and when should we expect the next  inauguration?

NALDA will be inaugurating its next integrated farm estate in Imo State. With the progress being made on the rehabilitation of Acharaubo Emekuku Integrated Farm Estate in Owerri North, Local Government Area of the state, it is expected that the first week of September for the official inauguration would be met. Rehabilitation is 75 percent complete with drainage facilities in place, two functional solar powered boreholes and access roads already on ground. The farm, which belongs to the Imo State government, has been abandoned for more than 30 years, but we have signed a Memorandum of Understanding (MoU) to reactivate and take it up, our intention is to make the farm fully functional and bring back the things that used to be there.

What is the capacity of the farm?

The farm has the capacity to engage 500 direct beneficiaries because we are bringing back the things that used to be there like the poultry, piggery, goat pens and additional facilities like the processing unit, packaging unit, training centres, an administrative block, snail rearing where farmers will be taught on rearing and processing. We will also have a veterinary training centre which will give practitioners the opportunity to be trained to have veterinary centres so that people from the south east and prospective veterinary doctors will also be trained and acquire knowledge on how to take care of the animals within the farm. The farm is on 35 hectares, but the governor has assured us that he is going to increase it to 100 hectares capacity that will be able to take in all these and then have a crop production area.

What’s the state of the NALDA fish village in Abia?

Construction is ongoing aon the NALDA fish village in Ariam, Ikwuano Local Government Area of Abia State. The fish ponds are nearing completion, access road has been constructed with drainages and a concrete covert constructed over a river to allow for access to other parts of the farm, a solar powered borehole that would service the farm is already installed and the crop farming area already cleared and ready for farming.

What is the capacity?

The fish village is for the entire value chain of fish production from the hatchery point to the rearing, then processing and packaging. Our total estimate of the number of people that will benefit directly from this project is about 300 direct beneficiaries in areas of fish and grass cutter production. The processing machines are purely international standards and the grass cutter that will be produced here will also be processed, dried and packaged for export and for local consumption. We will also have our crop section like maize production so that from there, we will produce feeds for our birds in other locations, so the fish village is part of Mr President’s directive to NALDA as measure to develop villages and communities. We can only develop these areas when there are land donations, so any community that makes land available to NALDA can be assured that the land will turn into meaningful use for their own use, so that youths restiveness will reduce, unemployment will drop and then we will achieve food security.

Are there other fish villages in other locations?

Yes, we have three pilot states for fish villages to include Abia, Borno and Katsina State. That of Katsina has been inaugurated by President Buhari. We have started the construction of fish villages in 10 locations out of the 50 provided by the Borno State Government to engage 2,200 women and we are expecting that either Abia or Borno State to be next in line for inauguration. That is why we are doing these on the spot assessment.

You have cleared the farmland in Ogun State. What activities will be carried out in that location?

NALDA has commenced the construction of the integrated farm estate in Ogun State and is expected to be completed by February 2022. The land is being mapped out for different activities such as crop farming zone, cassava processing zone, fish processing zone, snail processing zone, warehouses, fish pond, snail farm, poultry, goat and Sheep pen, office area and pasture area for grazing the animals.

What is the capacity of the farm and how much will it generate yearly?

The Special Agro Industrial Zone, in Makun-Obafemi Owode Local Government Area of the State would be engaging 1,500 workers and would generate N2 billion yearly after its first year.The farm would be the biggest in production of fish, goat and snails.

Why is NALDA particular in making Ogun farm estate biggest in production?

The reason we want to make Ogun farm one of the biggest in production is its proximity to Lagos State, and you know that there is a market for everything in Lagos. Ogun is one of our key farm estates because of its proximity to the sea ports for export purposes and the farm estate would give the country and Nigerians an image in food production.

What are your plans for the host communities?

The plan is to take development to the communities. The integrated farm estates would help in developing communities, reduce rural-urban migration, increase their incomes through agriculture and increase the Gross Domestic Product (GDP) such that the living standards within the communities that are hosting the NALDA integrated estates would definitely go up.

The prospects are high because there would be traffic of people coming into the communities to buy from the farm estate based on what is being produced there. So, it’s a win-win for all the communities that are hosting NALDA Integrated Farm Estates.

How will these integrated farm estates be managed?

In terms of management, we are going to use the same formula we used in Katsina State where we designed a management system whereby Jaiz Bank will manage the entire facility with a team of our professionals. We are also going to have a private organisation managing it.

Beautician and Influencer, Egbedi Lucky Goldenclaim said his company, Golden House Nigeria is set to unveil new collections of fashion.

The Chief Executive Officer of Golden House Nigeria stated this on his Instagram page @goldtiful where he outlined the company’s plans for their clients and his fan base.

According to Egbedi: “We have new arrivals of clothing at Gold fashion home which people needs to see.

“At Golden House, we are always up to something amazing, and we love to thrill our fans with trending fashion styles.

“We have gold print footwear, and underwear collections called gold.c.undies, with high level quality, suitable for celebrities and socialites and every other person with resources for purchase.

“We are always a call away from delivery for any of our products, and that is why golden house has consistently made a name in the entertainment industry.”

In this interview with COLLINS NWEZE, the Managing Director/CEO Coronation Merchant Bank Limited, Banjo Adegbohungbe, elaborates on capital raising opportunities through the private markets, how more companies are embracing the markets and state of the economy, among other issues.

Why are more companies raising capital through the private markets?

With the reforms we have seen, private markets have become efficient and transparent. Issuers are always looking to gain competitive advantage, thus speed and precision are critical.The added flexibility and variety in the nature of funding, as well as the speed that the private markets provide, are the ingredients which make the private markets a viable platform for issuers.

Secondly, the low-yield environment since the beginning of last year encouraged not only traditional issuers but eligible private companies to raise funding from the capital markets. We have seen an increase in the number of first-time issuers who are willing to test the markets for both strategic and tactical reasons.

Are there other reasons for companies raising funds through private markets?

In addition to this, with companies trying to cope with the economic implications and setbacks of the COVID-19 pandemic on business operations, there has been an increased need for these firms to become more flexible in tapping into alternative sources of funding. We found out that various companies are waking up to opportunities that private markets provide and since they do not have to become public to raise capital, they are more accommodating of the concept.The fear of dilution is a very cultural challenge and testing private markets is helping to defuse that concern.

Coronation Merchant Bank is one of the 15 transaction sponsors in the private markets. What are the considerations for operating within that circle?

The FMDQ recognises transaction sponsors as financial institutions appointed by issuers to act on their behalf in the issuance, noting and ensuring ongoing compliance with the requirements of the private markets.

The FMDQ has an application process for financial institutions wishing to register as a transaction sponsor. Sponsorship usually varies based on the category of sponsorship, which are differentiated both by product and issuer classifications. Coronation Merchant Bank is a licensed Transaction Sponsor and Dealer on the FMDQ. Despite its short history, the bank has been quite consistent in its support for issuers and their issuances such that today, the bank is easily ranked a top-five institution in terms of the value of transactions it sponsors on the FMDQ Exchange. Bear in mind that this ranking does not take cognisance of its activities in the private market space where it is also a very active participant.

Private placements and IPOs are becoming a thing of the past in the market. What do you think are the limitations for such offers?

While it is true that there have not been many Initial Public Offerings (IPOs) lately, it would be inappropriate to conclude that they are a thing of the past in the market. The reality is that the preponderance of private placements is part of the preliminary activities that lead to a flourishing IPO market. We should remember that IPOs are typical exit points for some private investors and if there are no private placement activities, IPOs will eventually dry up. In our view, the current resurgence being witnessed in the private markets space, if properly nurtured, could lead to the rebirth of the IPO market in Nigeria.

A healthy public market usually has its roots in a well-organised and disciplined private market. The typical capital raising journey of a private company has evolved from mobilising capital at the level of family and friends – unstructured, and zero scrutiny, to a semi- organised private market (venture capital, private equity etc.), to accessing the well organised markets of today. As a result, issuers have learnt the discipline of accountability and responsive stewardship such that when they are introduced to the public, they are rarely unprepared for the demands and scrutiny of the global capital market space. At Coronation Merchant Bank, we are conscious of our responsibility as an institution to help both issuers and investors to achieve their objectives.

Why is your bank showing much interest in private markets?

We have a client base that includes both issuers and investors. This means that we are a natural intermediation agent for issuers (our corporate clients) and investors like the High net-worth individual. Thus, it is only appropriate that we harness the full potential of the private markets for the benefit of our clients. Furthermore, we have realised that a lot of individual investors are leaning into risk to find alpha, given the potentially strong and consistent returns from private market investments.  Likewise, institutional investors across the world are in search of alternative outlets to achieve returns, and the private markets give access to these alternative investment opportunities while providing diversification benefits. Adding value to our clients is important to us at Coronation Merchant Bank Limited and this is why we have strategically positioned ourselves as an active participant in the private market. It is a journey but we are committed to supporting our clients and all stakeholders through the process.

How does factor investing affect risk and return?

Factor Investing is an investment approach that involves targeting specific drivers of return across asset classes with the goal of achieving a given investment outcome or to improve long-term risk adjusted return.

The drivers of return are called “Factors”, and they form the foundations of factor investing. At its most basic level, factor-based investing is simply about defining and then systematically following a set of rules that produce diversified portfolios.The underlying assumption is that an investor can build a portfolio that consistently outperforms market by examining assets under defined characteristics.

The Capital Asset Pricing Model (CAPM) advancement has shown great potential for factor-based strategies to play a key role in diversified portfolios. The identification of the CAPM “beta” (the measure of the sensitivity of a stock to the movement of the broader market) and other factors/betas that drive risk and return has established the importance of factor investing.

What are the key factors that drive portfolio returns?

Generally, two main factors drive portfolio returns: Macro factors explain broad risks across asset classes like the pace of economic growth and inflation rate, which in turn provides an explanation for the returns on asset classes. On the other hand, Style factors explain the risk and returns within these asset classes. For instance, low priced stocks are more likely to generate higher returns than high priced stocks.

How does one apply factor investing in fixed income?

Despite the importance of factors, factor-based investing in fixed income has been slow to develop and remains a developing area of study. This is driven partly by the lack of data, relatively opaque pricing, and a relative lack of transparency in the asset class. Another challenge identified in applying factor investing to Fixed Income assets is that the various segments of fixed income markets make it difficult to create a one-size fits all factor investing model. However, factors may be even more critical in fixed income, as systematic risk constitutes a significant proportion of bond total risk.

What do you think is needed for the market to grow and attract foreign investors who are not playing there?

As a developing nation, we cannot deny the critical impact of foreign direct investments to our economic growth. It is, therefore, important to create the enabling environment that will attract foreign investors into the capital market. This is a joint responsibility for all stakeholders, not just the fiscal and monetary policy authorities. When everyone in both the public and private sectors are working together in harmony towards creating a conducive environment for capital, we would be on our way to having both local and foreign investors play active roles in our economy. In the public sector, the judiciary, the legislative and the regulatory authorities are all critical stakeholders. In the private sector, issuers, investors, issuing houses and so on – we all have our roles in this. It is not the sole responsibility of any stakeholder.

What are the challenges faced by companies in raising capital in the markets?

There are challenges faced by issuers in the capital market. From possible crowding out in the debt capital market, to the concern around dilution in the equity market and the perception of over-regulation in both markets. However, discerning issuers have learnt to appoint knowledgeable and experienced issuing houses and advisers to guide them through the process. This is one of the major ways that our bank continues to give our clients the edge in the global market place.  We prefer to focus on the opportunities that the challenges represent rather than dwell on the downsides.This has helped us to push boundaries and create value for our clients.

What other steps do you think companies and banks need to take to deepen the market?

Issuers need to take advantage of the unique opportunities provided by the evolution of the private market. There have been significant improvements in governance, regulation, transparency and efficiency in the private market. At Coronation Merchant Bank, we see our role as a catalyst for further development of the market in alignment with regulators and other stakeholders. We see opportunities for product development, financing for both public and private sectors, enablement of economic growth and regulatory evolution. We are well positioned to create value for our customers – issuers and investors alike and to support all stakeholders in the development of the private markets.

Your research team recently presented report on factor investing. What does that entail?

The concept of investing broadly covers the purchase or creation of assets with the use of funds or capital in order to obtain a return on the investment, also known as capital gain. It entails the purchase of a financial product with an expectation of favourable future returns. Investment assets comprising equities, fixed income instruments, derivative instruments, commodities, among others, are purchased with the sole aim of earning the maximum possible return. Over the years, researchers have developed various approaches and models for driving optimal returns on various investment products. The two major approaches to investing include Factor investing and Value investing. These models were developed to ensure optimal asset allocation and maximum return on investment. Value investing is an investment approach that seeks to leverage the value of underpriced or cheap stocks on the expectation that improving market conditions and strong corporate fundamentals will be priced into the value over time.The strategic asset allocation expectation is that the stock price will rise as its intrinsic value becomes more evident and widely acknowledged by investors. When the stock price rises to its intrinsic value over a given time frame, this translates to an increase in the value of the investment portfolio through capital gains and dividend cashflow. The greater the difference between the intrinsic value and the current stock price, the greater the margin of safety for value investors looking for investment opportunities. Key financial metrics (such as earnings, revenue, or cash flow) are usually deployed to determine the value of a stock. Other characteristics considered during the stock valuation process include consistent profitability, stable revenue streams with reasonable growth, future earnings outlook and a long streak of established success history.

Tell us about the bank’s governance structure?

Our governance structure and compliance principles are robust and responsive to the needs of the various market participants and we have consistently ensured responsible and sustainable service delivery across platforms. Commitment to continuous learning, active human resource development, a clear strategy and collaboration with market enablers, regulators and the investment community are some of the things that are critical to an enduring, sustainable and robust market participation.

The founder of House of Amearypearl (Mrs.) Shyllon Adeola, has pointed out the Federal Government’s indefinite suspension of twitter has affected many online businesses.

Adeola explained that many online vendors have lost their businesses due to inability to reach customers whose sole means of communication was direct messages on Twitter.

According to her, the economy will ultimately be affected because in barely four weeks of the ban, many online businesses have crashed while others are struggling despite the availability of other social media platforms.

“Most online businesses are interlinked with influencer marketing space and the reach of this mainly is on Twitter which is the primary platform and while some now use VPN services

“Many customers that make the business functional do not feel the need for this and have abandoned Twitter until the government decides to lift the ban, this is crippling for small online businesses and startups.

“Social media, especially Twitter, is what many use to market, run campaigns and build relationships with their customers and without access to this platform.

“It is like a death knell for businesses because while vendors can move their businesses to other platforms, their posts might not gain as much engagement as Twitter provides,” she said.

According to her, government needs to consider effects of policies on the masses and not just its sensitivities. Actions that push the poverty index should be avoided,” she stated.

She further advocated the needs to utilise social media platforms to boost commercial activities for entrepreneurs as a sure means by which they can expand the frontiers of budding businesses to increase profit, adding that social media remains a good platform for business if used properly.

“God bless the creator of all social media apps, you get to interact with all kinds of people all over the world who will patronise your business and you even get to be friends with some. It is unfortunate that some people do not use their social media handles well.

“Rather than utilise it well, they are careless to the extent that they block opportunities that can set them on the path of breakthrough. Entrepreneurs should not fall in this trap because social media is a space where you don’t know who you are talking to and impressions matter in business,” she said.

Adeola however warned that doing business on social media comes with its challenges.

“My challenge is basically in having to literally do everything all by myself; posting goods, taking orders and having them sorted out for delivery.

“Another challenge is in having to attend to all my customers at the same time. If you spend too much time with one, another customer will complain that you are ignoring him or her.”

By Sheriff Atanda

Serial entrepreneur and CEO Royal Hairs Limited, Steve Maduka has performed traditional marriage rites as he tied the nuptial knot with his heartthrob, Sandra Iheuwa last Saturday.

The event took place at the bride’s hometown in Mbaise Local Government Area of Imo State.

Dignitaries from government and business attended the lavish wedding.

Sandra, who is a US-based entrepreneur, was said to have courted the ‘Business hair mogul’ for several years, a relationship kept very quiet to avoid the prying eyes of paparazzis.

Maduka shared several colourful clips from the traditional wedding on his Instagram business page, Royalhairs.

He captioned the post: “We went to Imo state and brought a queen home, they nearly used billing scatter us but we came prepared”.

The celebration for the church wedding is expected to hold on Sunday, 15th August in Lagos.

Beauty expert, Queeneth Wenike Beddie-Memberr has opened up on the role Elana Drell-Szyfer played in her life and how she became a role model.

In a post on her social media page, @lashiglow, Queeneth said Elana Drell Szyfer is a 25-year veteran of the cosmetics industry. Her experience spans working across multiple product categories and brands. … Elana is currently the CEO of ReVive Skincare, a role she has held since December 2017, when Tengram Capital Partners acquired the company from Shiseido.

The Rivers-born beauty queen also said, apart from caring for her clients, Elana has inspired her to be a beauty expert.

“Over the years, she has mentored people who are well placed in society today. I count myself fortunate to be her mentee and to be modeled by her.

“When I started my beauty care company, I read alot about her, and I was encouraged never to relent in my efforts, that every dream begins with the right step.

“She is an embodiment of encouragement, that is why I love her. She has mentored me to keep believing in myself.

“I do not have a complex issue today, because, Elana will always deliver speeches that will help you to confront your worst fears, and it has worked for me,” she said.

Group Managing Director, VFD Group Plc, Nonso Okpala, presides over an expansive financial conglomerate with expertise across many sectors. Okpala, a well-rounded finance and economic expert, in this interview with Deputy Group Business Editor, Taofik Salako, speaks on Nigeria’s macroeconomic outlook, financial markets and business development

What are the key variables that will shape the economic space in the second half, especially the financial markets?

Following the recession witnessed in third quarter 2020, the economy has recorded two consecutive quarters of economic growth, albeit marginal.

Two major factors have heavily influenced the economic conversation in first half 2021 are inflation and exchange rate. These will remain a key factor for the rest of the year. In second half, we expect a likely increase in headline inflation, followed by the growing trend of higher interest rate across most money market instruments, including treasury bills.

In the capital market, we have seen some progress with the implementation of the demutualisation. However, factors such as naira stability, earnings performances of key players and government policy would be crucial for market growth, especially towards attracting and retaining foreign investors.

We’ve seen a continuing decline in foreign portfolio investments. What is responsible for this and how do we make Nigeria the preferred destination among emerging markets?

The decline in foreign investments could be attributed to the condition of Nigeria’s economic and business space, as well as the security challenges, socioeconomic uncertainties associated with the COVID-19 pandemic, negative macroeconomic indices and mismatch in policies that have failed to give direction.

Huge concerns around foreign exchange (forex) liquidity, capital repatriation, rising inflation and the deterioration in the macro-environment have also dampened the appetite of foreign portfolio investors. In addition, the Nigerian Exchange (NGX) and mutual funds both recorded bearish performances with the NGX All Share Index on negative yield between January and June and only 25 out of 118 listed mutual funds posting growth in the first quarter 2021.

A possible increase in foreign inflow will be supported by the combination of significant improvement in operating environment and the capital market, relative stability in the foreign exchange market, improved security conditions and deliberate government policies that impacts ease of doing business.

Are we likely to see a rebound in the equities market in the second half?

The equities market is not reflecting impressive corporate earnings or a continuous uptick in fixed income enough to weigh on the market. However, a decline in inflation and a convergence of forex rates and forex stability in second half will boost investor confidence and improve foreign portfolio investments in the equities sector.Those are a few of the conditions that will indicate whether a recovery will occur for NGX ASI, although some sectors are already seeing positive  year-to-date performance. In addition, the SEC is working on various initiatives which we are hopeful would increase local participation in the market.

What sectors do you think investors should look out for?

Across Africa, we have seen accelerated investments in financial technology. This trend would remain the same given the maturity stage we are in and the vast market that remains to be captured.

Real estate is a viable investment sector. A gradual shift into property-tech and rejig of the housing model to increase investment yield and rental yield is required to accelerate growth.

Other sectors to look at include telcos, food and beverages and travels and tourism especially as the world economy comes to a full reopening and travel restrictions are lifted.

Access to finance is still a major issue for individuals and businesses, especially small and medium enterprises (SMEs), how do we improve access to finance? And what is your Group doing about this?

This remains a challenge, especially in developing and underdeveloped countries.

Along the value chain of our businesses, we have different initiatives and products that helps address this. For individuals, this is purely technology focused. We have built a virtual banking solution that eliminates barriers and reduces the cost and time of accessing financing. In addition, we will continue to use data to understand our customers and provide them with risk-based credit access.

Within the Group’s portfolio companies, we have three entities with differentiated focus on creating access to credit for individuals and businesses, and emphasis on how important this is to us. We give loans to SMEs through our micro-finance bank while structured financing for larger corporates can be accessed from our bridge financing outfits. Hence, there is something for everyone.

Layered on this is our corporate banking portal which will be launched soon. In designing this, a large emphasis was placed on SMEs. Beyond financing, we are committed to providing end-to-end financial services and growth accelerators to business we work with.

What is your assessment of the first half economic performance, with emphasis on the financial markets?

The first half 2021 was a mix of outcomes. The country officially came out of recession in first quarter 2021,while we have seen strong resistance to the pandemic across some sectors with growth in key indicators, particularly in banking and telecoms. However, these gains remain limited tempered by rising inflation, declining foreign reserves and further naira depreciation across official and parallel windows.

In the financial markets, we witnessed rising interest rate for T-bills, bonds and fixed income instruments. The capital market, however, has witnessed a six per cent decline year to date

Micro-lending is a global tool for poverty alleviation and empowerment. What has been your experience?

We have been into micro-lending business since 2009 first with VFD Bridge using our Lagos State lending licence and now joined by our microfinance bank. From then till date, we have deepened our reach of clientele who can access micro-credit significantly. Particularly between 2019 and today, where we have grown from 3,000 customers to about 300,000, who can potentially access micro-credit on request. We have been able to provide credit to individuals and small businesses who, otherwise would not have had access to credit from mainstream financial institutions. This, in return, enables these businesses grow, while also creating more jobs for thousands of others.

That said, this is only one of the several means of poverty alleviation and the government needs to create more social programmes and an economic environment that ensures gains are sustained.

Nigeria’s national economic development programme revolves around diversification and job creation, what are your suggestions?

In addition to diversification of government revenue and job creation, bridging the infrastructure gap is also a front burner subject towards achieving our development goals. While the government continues to make progress in this regard, the pace of infrastructure needs to be sped up to achieve our goal.

Also, we have seen gradual decline in oil contribution to gross domestic product (GDP), with growth, especially in the agricultural sector. However, the future is technology. Even in our agricultural sector, growth accelerator from this sector would need investment in tools to increase mechanised farming and general produce efficiency. Still on technology, we saw the emergence of India in the 90s to 2000s as a major exporter of tech-based solutions, services and personnel. In today’s increasingly global village, we continue to see the ascendance of Nigerians in the tech and software development phase. Government policies need to fully support this budding area of expertise for job creation and economic value realisation.

What’s your view on Nigeria’s debts?

Our debt profile is on the rise, and this is well documented. The bigger challenge is our ability to generate revenue. In 2020, about 97 per cent of government revenue was used to service existing debt stock. Hence the focus in the future should be on how to enhance our revenue, and how future debt utilisation must support actual economic growth.

How much of a risk does the foreign exchange constitute to the markets and economy?

Considering the importance of foreign inflows to our financial markets, foreign exchange stability and availability is an important indicator for the market and our economy.

Investors need assurances that there will not be capital or interest gain erosion at repatriation point or worse case, scarcity of forex as we saw in 2016 when companies could not repatriate funds to home country.

This stability also has the potential to affect the prices of goods and services, especially for products in the manufacturing value chain that relies on imported raw materials. This, alongside the increasing cost of outrightly imported items, can lead to inflation, a scenario we also saw between 2016-2017, when “imported inflation” accounted for the upward trend in headline inflation.