Category: Investors

Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue has urged investors  to take advantage of opportunities that abound  in the financial market despite the continuous state of uncertainty.

He spoke against the background of some  media reports that investors face bleak future in  the second half of 2022, following continuous macroeconomic vagaries, supply chain disruptions arising from the Russia-Ukraine conflict, drop in production and trade growth, rising higher energy,  food prices, and  inflation among others.

Onukwue said there would always be investment opportunities.

According to him, regardless of the state of uncertainties in the global financial markets, investors that take sound investment advice from certified securities dealers, commonly called stockbrokers can enjoy superior return on investment on constant basis.

Onukwue lamented that many  investors often lose huge amount of money by  relying on their own intuition or consulting unqualified investment advisers.

He explained that investment in any asset class required a lot of variables, including an investor’s investment objective, risk tolerance, sources of funds and time horizon, among others.

“ Investment is a trade off of risk and return, whereby an investor aspires to post highest return at lowest risk. This is achievable if proper analysis is done by certified investment advisers. Our association, ASHON, shall continue to engage investors on the need to work closely with stockbrokers for sound investment advice. We are not saying that there are no risks. Even asset classes that are believed to be risk free contend with inflation risk, exchange rate risk and a host of others. What we are saying is that risk can be managed to ensure superior returns.

“In every risky situation, there are opportunities. The same applies to investment. It is all about understanding and deploying appropriate investment strategy. It’s not a game of one-size-fits all. Contacting a professional investment adviser is in itself a risk management strategy. Investment professionals profile their clients as a precondition for advice on the appropriate investment opportunities.

“ There shall always be challenges as long as human beings exist. This doesn’t mean that one cannot post superior return on investment. This is where consulting certified investment professionals becomes essential. We shall continue to guide investors on how to identify the registered investment professionals as they have the skills, competencies and integrity to assist investors make the right decision,” Onukwue said.

He noted that ASHON placed premium on professionalism of its members and would always collaborate with other stakeholders in the financial market to ensure that market integrity is protracted.

“ASHON has always been at the forefront of ensuring that its members operate professionally while the association collaborates with the capital market regulators, operators and other members in the ecosystem. ASHON shall continue to play pivotal roles in  policies that positively impact the capital market. We were at the forefront of  banks’ recapitalisation, demutualsation of The Exchange among other,” Onukwue said.

Market watchers explained that the introduction of derivative trading by NGX would create opportunities for investors to hedge their investment against risks but emphasized the need for enlightenment of shareholders on the benefits of derivatives.

The International Organisation of Securities Commissions (IOSCO) has published a report that described the impact of the COVID-19 pandemic on the operations of trading venues and market intermediaries.

The report concluded that the regulated entities largely proved to be operationally resilient during the pandemic.

The report emphasised that the regulated entities continued to serve their clients and the broader economy during the pandemic, despite unprecedented challenges, such as the restrictions on mobility and business operations and periods of extreme market volatility and record trading volumes.

The pandemic also increased cyber security risks, accelerated the use of existing, new and emerging technologies and disrupted some outsourcing arrangements.

In the report, IOSCO defined operational resilience as the ability of a regulated entity to deliver critical operations through a disruption, consistent with other international definitions. The existing IOSCO operational resilience principles, recommendations and guidance provide the core structure for regulated entities and regulators when considering operational resilience, and the findings in this report suggest this framework has worked well.

However, the pandemic has also highlighted opportunities for regulated entities to learn how to improve their operational resilience.

The report, therefore, set out some observations and identifies lessons learned from how regulated entities responded during the pandemic to help inform future operational resilience arrangements.

According to the report, operational resilience means more than just technological solutions; it also depends on the regulated entity’s processes, premises and personnel.

The report noted that operators must consider dependencies and interconnectivity before and after a disruption to adequately assess potential risks and changes to controls, especially for service providers and off-shore services.

It also noted the need for a review, update and test of business continuity plans to ensure they reflect lessons learned from the pandemic, such as the prolonged nature of the crisis and its impact on multiple locations, as well as the implication of remote/hybrid working and the importance of communication channels between regulators, key authorities, regulated entities and third-party service providers to help understand any impacts on operational resilience.

According to the report, an effective governance framework facilitates and supports operational resilience during novel or unexpected situations.

The report underlined compliance and supervisory processes with greater automation and less dependence on physical documents and manual processes may better accommodate a remote workforce. A review of monitoring and supervision arrangements by regulated entities for remote workforces may be appropriate to help ensure continued effectiveness in a remote or hybrid environment.

The report highlighted information security risk and noted that  decentralised and remote work may increase the importance of monitoring processes to help ensure information security and prevent cyber-attacks.

IOSCO published the consultation report on operational resilience before the conflict in Ukraine began. Recent geopolitical tensions, disruptions to supply chains and energy shortages have challenged the operational resilience of trading venues and market intermediaries. In particular, financial and commodity markets have been volatile and cyber risks have increased. The situation will likely evolve further, highlighting the ongoing importance of operational resilience and maintaining an adaptable approach to operational resilience. The observations and lessons learned in this report should also be relevant to new scenarios, particularly the importance of reviewing, updating and testing business continuity plans, information security risks and maintaining good communication channels between regulators, authorities, regulated entities and third-party service providers to help understand any impact on operational resilience.

VFD Group Plc and Sterling One Foundation, will support this year’s Africa Social Impact Summit aimed at achieving sustainable development goals (SDGs).

The submit starts today in Abuja amd will end  tomorrow.

The summit, entitled “Rethink, Rebuild, Recover: Accelerating Growth for the SDGs,” will provide an excellent opportunity for the VFD Group to encourage and foster conversations among members of the private and public sectors, industry experts, policymakers, impact investors, entrepreneurs, civil society organisations, and African leaders that will usher in market-led solutions aimed at achieving the SDGs by 2030.

“VFD Group Plc is leveraging both local and global expertise to drive long-term positive impact.” We believe that if we have meaningful partnerships that result in measurable SDG achievement, we have a better chance of creating a truly diverse business ecosystem that yields significant results across Nigeria and Africa.” Nonso Okpala, the Group’s Managing Director, elaborated on the partnership.

Olu Salami, Head, Strategy, Investment Management, and Corporate Performance at VFD Group Plc, stated at the Summit that “education is key to economic growth, so we are committed to creating and executing lasting home-grown solutions like educating future generations to ensure they have adequate resources to thrive in years to come.”

Salami noted that education, according to Article 26 of the 1948 Universal Declaration of Human Rights, is a passport to human development that opens doors and expands opportunities and liberties.

“VFD Group is committed to addressing Africa’s challenges, particularly in technology, empowerment, and healthcare, by encouraging collaborations on long-term job creation and strategies that ensure diverse viable pathways from education to employment.

“VFD Group, as an industry-agnostic proprietary investment firm, is constantly promoting and participating in public and private sector discussions and programmes that aid in the sustainable development of indigenous economies,”  Salami said.

Daraju Industries Limited and Eat ‘N’ Go Limited plan to raise about N25 billion in debt capital from the capital market.

The two indigenous firms will use the short-to-medium debt capital to diversify their balance sheet and support ongoing business growth plans.

Daraju, a household trading and manufacturing company, plans to raise about N10 billion in short-term capital through the issuance of commercial paper (CP). Eat ‘N’ Go Limited, through its special purpose vehicle, Eat & Go Finance SPV Plc, has registered a N15 billion bond issuance programme. The holding company for the Domino’s Pizza in Nigeria will be raising additional N3.5 billion under the issuance programme.

Daraju engages in manufacturing and trading of household items such as fabric care, oral care and body care products among others. Already, Daraju has registered its N10 billion CP at the FMDQ Securities Exchange, which strategically positions the firm to raise short-term finance for its working capital need at any time deemed suitable.

Eat & Go Finance SPV Plc will be offering a N3.50 billion Series 2 Fixed Rate Bond under its N15 billion bond issuance programme. Eat & Go Finance SPV was specially established by Eat ‘N’ Go to raise finance from the capital market through the listing of debt securities.

Eat ‘N’ Go is a master franchisee for the Domino’s Pizza, Cold Stone Creamery and Pinkberry Gourmet Frozen Yoghurt brands with more than 100 stores in nine states across Nigeria.

Preliminary details indicated that Eat ‘N’ Go will use the net proceeds from the bond issue to fund reserve accounts and offset the costs of the company’s capital expenditure, among others.

FMDQ Exchange assured that as part of its efforts toward unlocking the potential of the Nigerian economy, it will continue to promote market development in collaboration with its diverse stakeholders, to make the markets within its purview globally competitive.

“FMDQ Exchange continues to sustain efforts in ensuring that corporates have uninterrupted access to a credible and robust platform for the registration, listing, quotation, and trading of debt securities. The Exchange, through continuous information disclosure, will continue to provide tailored and value-adding services, offer end-to-end support for a streamlined and seamless process, foster transparency and information symmetry, and promote credibility” FMDQ stated.

The Exchange noted that the recourse to the capital market by the companies underlines the confidence of the companies in its platform and the Nigerian capital market generally as a viable marketplace to raise funds to meet funding requirements of companies and governments.

Geregu Power Plc is raising about N40 billion from the capital market to support its ongoing expansion project. Geregu Power generates about 10 per cent of Nigeria’s power supply.

Geregu Power, a power generation company (Genco) owned by billionaire businessman, Mr. Femi Otedola, has launched its N40 billion Series I Fixed Rate Senior Unsecured Bond Issue. The issuance is the first tranche under the company’s N100 billion multi-instrument debt programme.

Geregu Power will use the net proceeds of the N40 billion bond to part-finance expansion of its current power generation capacity and also to acquire other strategic new power assets in Nigeria.

The Genco is offering naira-denominated seven-year bonds at the par value of N1000 with a pricing range of between 12.75 per cent and 13.25 per cent. The bond is due in 2029 but it has a 24-month moratorium on principal repayment. The fixed rate coupon will be paid semi-annually while the principal repayment will be by way of amortised-redemption, after the expiration of the principal moratorium period.

Minimum subscription to the issue is N10 million and thereafter in multiples of N1million.The book-building-application process, for the offer, which started on Friday, July 1 will close tomorrow.

The bond is expected to be listed on the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited, providing investors with opportunity to trade on their bondholdings.

Geregu Power is rated Bbb+ by Agusto & Co and A by Global Credit Rating, the same ratings awarded to the issue by the rating agencies.

A power generation company at Itobe, Ajaokuta, Kogi State, Geregu Power plant was constructed by the Federal Government and inaugurated on February 16, 2007 to generate electric power and supply to the national grid managed by the Transmission Company of Nigeria (TCN).

Geregu Power is effectively wholly-owned and operated by Amperion Power Distribution Company Limited (APDCL), after APDCL acquired remaining 20 per cent equity stake held by government.

The Federal Government had in 2013, through the Bureau of Public Enterprises (BPE) initially sold 80 per cent stake to APDCL while it retained 20 per cent equity stake hed by BPE and Ministry of Finance Incorporated.

Geregu Power’s main business is electric power generation and sale of electric power through the national grid of the TCN to the Nigerian Bulk Electricity Trading Plc (NBET). The national grid serves as a “power pool” to which all the power plants and load centres are connected.

The company’s power plant consists of three natural gas-fired SIEMENS V94.2 STG5-2000E gas turbine generator units with a 435MW installed capacity. The turbine units are GT11, GT12, and GT13 and each is designed to produce 145 MW at 15.75KV, stepped up to 330kV via a 173.6MVA power transformer and generates on average 10 per cent of Nigeria’s power.

As part of its operations, natural gas is transported by Nigerian Gas Company (NGC) from SEPLAT through a 135km, 24 inches underground pipeline in the Niger Delta at 35 bar pressure and reduced to 25 bar operating pressure. The plant supplies power directly to the national grid via the transmission switchyard.

PwC Nigeria has admitted five new partners with effect from July 1, this year.

The new partners include Abisola Atitebi, Habeeb Jaiyeola, and Femi Madariola from the firm’s assurance practice, and Gbenga Adepetu and Tiwalade Otufale from advisory and tax.

A record 36 new partners joined the partnership in PwC Africa, of which 51 per cent are females.

Country Senior Partner, PwC Nigeria, Uyi Akpata, said welcoming the largest partner classes to date on the continent indicates the firm is leveraging its diversity to grow the business sustainably.

According to him; the five new partners admitted in Nigeria have distinguished themselves, utilising their expertise and decades of providing services of the highest standards to support its clients and help them build trust, in line withThe New Equation, its global strategy.

“I’m excited to welcome our new partners. Reaching this career milestone shows the monumental impact they have had on our business- helping our clients solve important problems, leading and inspiring our people.

“Our new partners understand that quality underpins everything we do at PwC. In addition to the work we do for our clients and stakeholders, making a difference in communities is something our new partners understand well. They carry out PwC’s societal purpose by driving innovative projects that are geared at developing sustained outcomes for our clients and communities in need,” Akpata said.

PwC is a network of firms in 156 countries with over 295,000 people delivering quality in assurance, advisory and tax services.

TAJBank plans to expand its operations across the nation by upgrading its licence to national banking licence.

Chairman, TAJBank Limited, Alhaji Tanko Gwamma, said the non-interest bank is focused on growing its business and attaining nationwide market.

According to him, TAJBank is committed to achieving required regulatory metrics, as well as pursuing strong growth in its balance sheet items, among other indices.

He noted that TAJBank attracted and retained more customers, and recorded exponential growth in its risk asset base assuring shareholders that the future of the bank is bright and beautiful.

“We are confident to state that our exceptional service delivery, robust technological deployment, and responsive operational system yielded the excellent performance we have recorded so far,” Gwamma told shareholders at the Annual General Meeting in Abuja.

Managing Director, TAJBank Limited, Mr Hameed Joda, said the non-interest bank has shown impressive performance since its inception in 2020 and now needs to move to higher level.

According to him, one of the major objectives now is to secure a national banking license in order to transform TAJBank into an industry leader.

“We will also be promoting financial inclusion by leveraging various channels and touch points, especially through the bank’s electronic platforms,” Joda said.

Joda said the non-interest bank is focused on attaining recognition as market leader in the non-interest industry in Nigeria.

“Another major strategy is to expand our branch network across state capitals and major commercial centers in Nigeria to offer non-interest banking product and services to the understand markets,” Joda said.

He attributed the performance of the bank over the past two years to innovativeness, customer-centric service delivery powered by world-class technologies and solutions, human resource capacity building and shareholders and customers’ growing confidence.

He also spoke on plans to grow the bank’s agency network to 100,000 agents by 2025, thereby reducing the financial exclusion rate.

“Our success in 2021 demonstrates that we not only kept our commitment to our stakeholders, but that we are growing in a sustainable manner. By so doing, we can continue to enhance value to society while also generating the revenue our shareholders will appreciate.

“We are constantly improving our operations so that we can respond to our clients’ ever-changing needs in their daily lives more efficiently and effectively. We are also pushing ourselves further beyond our comfort zones to provide a viable financial platform for all our stakeholders,” Joda said.

Directors and professional parties yesterday formally endorsed the offer documents for the N3.67 billion rights issue by Neimeth International Pharmaceuticals Plc, concluding the pre-offer documentations and processes.

At the completion board meeting yesterday at Radisson Hotel, Ikeja, Lagos, parties to the offer signed off the documents, a ceremony that signals final endorsement to open application list for the offer.

Neimeth is offering 2.374 billion ordinary shares of 50 kobo each to existing shareholders at N1.55 per share. The rights issue was pre-allotted to existing shareholders on the basis of five new shares for every four shares currently held. Application list for the rights issue opens on August 3, 2022.

Shareholders of the company had in March, this year at the 63rd annual general meeting (AGM) approved the creation of about 2.374 billion additional ordinary shares which would be allotted at the rate of five new shares for every  four shares currently held in the company.

Chairman, Neimeth International Pharmaceuticals Plc, Dr. Ambrosie Orjiako, said the company was raising funds two key reasons of constructing a world-class factory compliant to World Health Organisation (WHO) current Standards of Good Manufacturing Practice (cGMP)  at Amawbia in  Anambra State and to boost its working capital.

He said the projects will not only sustain the current upbeat performance of the company but will give it a quantum leap into the league of leading global health care commodities producers.

He noted that the fortune of Neimeth has taken an upward turn since 2018 when it returned to profitability after nearly a decade of predominantly losses.  From a loss of N404.9 million in 2017 the company made profit of N166.4 million in 2018, N304.4 million in 2019, N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million last year.

Orjiako assured that the company is working to ensure that the growth trajectory is sustained.

Managing Director, Neimeth International Pharmaceuticals Plc,  Matthew Azoji, said the  capital market is the most viable and cheaper option to source long term  funds because of the high cost of funds through other sources.

“We cannot finance such long term project as the new plant in  Amawbia with short term funds from banks. That will not be expedient and cost effective,” Azoji said.

He recalled that in the immediate past year, shareholders had approved a two-pronged expansion plan, including the construction of a new plant in Anambra State and a facility upgrade of the Oregun plant.

He explained that the Oregun factory upgrade is already close to completion with funds from the Bank of Industry (BOI) and internal capital noting that on completion, the Oregun plant alone will add additional 300 per cent to the company’s production capacity.

Azoji expressed optimism that shareholders will take their rights and the offer will be fully subscribed.

He outlined that Neimeth has emerged from an era of constant losses to a period of steady growth in both turnover and profitability.

According to him, in the past three years the company has built a regime of growth and profitability as it recorded growth in both turnover and profit in 2019 and 2020 after 10 years of low performance.

Following the same growth trajectory, the share price of Neimeth increased 343 per cent  from 40 kobo as at September 30, 2019 to N1.77 as at March 14, 2022.   Between 2012 and 2021 the Earnings Per Share of Neimeth grew 280 per cent  from negative 5kobo to  14 kobo per share,. The ability of the company to create wealth for shareholders has been applauded by industry and market  watchers and regulators.

In 2019  Azoji, was named among Nigeria’s top 25 CEOs on account of the wealth creation ability of the Company.  And in 2021 the company was rewarded with the award of the Nigerian Investor Value Awards as the Best Performing Stock (Healthcare) in the Nigerian capital market on account of the value it created for shareholders through capital gains.  The NIVA Award celebrates public companies that have created sustainable value through strategic intelligence, operating efficiencies, market leadership and organizational values for investors.  It celebrates the wealth building capabilities of quoted companies in Nigeria.

Also in 2021 Neimeth was nominated along with Airtel West Africa Plc and FBN Holdings Plc for the Award of the listed company of the year. This was meant for companies  that attained high level earnings for investors in this case over 300 per cent.

In May 2022, President Muhammad Buhari honoured  Azoji with the National Productivity Order of Merit (NPOM) Award  for his hardwork and excellence in piloting the affairs of the company to attain greater productivity.

The company has equally transited from non dividend payment which lasted for a decade to one of consistent payment of dividend to shareholders. In 2020 it applied its profits to restructure its balance sheet and returned to dividend payment in 2021.  In that year it paid a dividend of 6.5 Kobo and in 2022  this was increased by eight per cent to 7.0 kobo per share.

Lekki Gardens Estate Limited has registered a N25 billion commercial paper (CP) issuance programme on the FMDQ Securities Exchange, paving the way for the firm to raise up to that amount from the capital market.

Lekki Gardens is a luxury real estate company that provides innovative solutions in property development, facility management and sales of real estate products and services with special skills in service delivery.

The CP issuance programme enables Lekki Gardens to raise short-term finance from the capital market through CP issues within the CP programme limit.

Lekki Gardens Estate Limited Managing Director Mr. Richard Nyong said the company was pleased with the registration of the CP programme.

According to him, as a leading player in the real estate sector, the firm appreciates how critical sustained access to steady sources of funding is to real estate development.

“The approval of this CP programme by the FMDQ Exchange represents a significant milestone in our near-term growth aspirations and further enhances our capacity to unlock value for all our stakeholders,” Nyong said.

Executive Director, Business Support & Corporate Services, Lekki Gardens Estate Limited, Ms. Emily Atebe, assured that Lekki Gardens remained strongly committed to enabling the greatest number of people get the most value from their property and property-related investments as it contributes its quota to closing the critical gap in home ownership and development.

“This issuance is in line with our strategy to diversify our financing options as we continue to deliver on our commitment while efficiently managing our cost of funds,” Ms. Atebe said.

Managing Director, Boston Advisory Limited, Mr. Rotimi Balogun, the transaction advisor, noted that real estate companies represented one of the most-attractive investment options and should leverage the capital market for effective pricing, good stability, growth capital and enhanced capital structure.

“I am therefore pleased to announce the registration of the N25 billion commercial paper programme Issuance for a premium real estate company, Lekki Gardens Estate Limited, in our capacity as sponsor, arranger, dealer and IPA. For my team and I, this registration is a success from all standpoints. And we believe that the groundbreaking transaction in the real estate space will further assist Lekki Gardens in its drive to be the leading real estate development and management company in Africa’s largest market,” Balogun said.

Senior Vice-President, Investment Banking, Boston Advisory Limited, Mr. Adekunle Alade, said the registration of the CP programme positioned Lekki Gardens to access short-term funding at a lower rate from the debt capital market and quickly complete its various on-going housing projects.

The management of FMDQ Securities Exchange Limited reaffirmed its commitment to continuing to propel businesses, corporates, and government entities to achieve their strategic objectives and ensure prosperity within the financial markets.

According to FMDQ, as the leading organiser for the Nigerian debt capital market and in its role as a catalyst for infrastructure development, FMDQ Exchange has continued to witness significant activity with diverse corporate institutions tapping into the market as an efficient alternative to meeting their funding and liquidity requirements.

FMDQ Exchange assured that it would  continue to provide timely and cost-efficient services to support its stakeholders, particularly issuers and investors, towards accessing capital, managing risks and invariably, improving their corporate profile.

FMDQ Group is a vertically integrated financial market infrastructure (FMI) group, strategically positioned to provide registration, listing, quotation and noting services; integrated trading, clearing and central counterparty, settlement, and risk management for financial market transactions; depository of securities, as well as data and information services, across the debt capital, foreign exchange, derivatives and equity markets.

FMDQ Group includes four subsidiaries – FMDQ Exchange, FMDQ Clear Limited, FMDQ Depository Limited and FMDQ Private Markets Limited. It operates Africa’s premier green exchange – FMDQ Green Exchange, which is being positioned to lead the transition towards a sustainable future.

A leading manufacturer of coated paints and allied products, Berger Paints Nigeria PLC., has blazed the trail as the first company in Nigeria to adopt a four-day work week. In this interview, the Company’s Chairman, Abi Ayida, a top-class economist and boardroom expert, explains how the innovative work plan will enhance productivity of the staff and boost shareholder value.

How has Berger Paints be coping with the inclement operating environment since the outbreak of Covid-19 pandemic and its variants?

Thank you for the question. Without a doubt you appear to have chosen a rather benign adjective to describe the current operating environment. The ongoing Pandemic does seem, in hindsight, to be a mere precursor to absolutely dire global macroeconomic headwinds. We have always operated in a challenging environment but the current situation is unprecedented in the unrelenting nature of the disruptions. There are simply no positive signals currently and we have the cherry on top of the peculiar country risk associated with a Nigeria on the cusp of elections and all that entails. As an organization we are coping and I use that word only if the ability to pivot in decision-making virtually instantaneouslywithout the comfort of any predictability is considered coping. As an organization we are focused on thriving despite the environment and that can only be achieved through meticulous preparation, a very dynamic and infinitely flexible approach to strategy design and implementation and most importantly a healthy dose of luck.

The Pandemic and resulting lockdowns led to a fundament change in attitudes to flexible working practices. How has this affected the employees of BPN?

One of the first significant decisions I made when I became Chairman was to lead a transition to more flexible working practices. In 2018, we made the decision to invest in fully interactive Board and Management meeting rooms with full virtualcapabilities. By the time the Pandemic came along 15 months later we had already fully embraced hybrid or virtual meetings with our external stakeholders who had that capability. This is probably not the immediate image that comes to mind when you think of a traditional paint manufacturer in Nigeria and till this day our clients who come in for physical meetings are still surprised by meeting with us in a room that would not look out of place in a well-resourced Tech Startup. We cascaded this flexible work approach to our people and recognized that full adoption would take time but it does appear that the pandemic helped to catalyze this process in a good way as wider acceptance became the norm with our external partners and stakeholders.

Prior to the new era of work-from-home, traffic congestion has always taken significant part of workers’ official hours in Lagos. To what extent has this affected the employees’ output?

Our transition to more flexible working practices was initially primarily driven by the mobility challenges that are the outcome of perennial traffic congestion. We continue to have a firm understanding that this was a significant but not easily quantifiable, real cost to our business. What is often underestimated is just how much extra investment in people, assets and materiel is required to compensate for diminished productivity caused by the lost hours.  Perhaps, I could illustrate, say we have a prospective client in Ajah, a visit in person from our office in Ikeja could well turn out to be a 5hour adventure on a bad traffic day of which the actual visit may be under an hour. In that time -frame the sales person is mostly unproductive for 80% of that time window. Unfortunately, this scenario affects all our people even those who are just commuting daily. Productivity is adversely impacted and from the employees’ perspective this has an unrelenting cumulative negative effect. From the company’s perspective you do not have to be a rocket scientist to know the situation is very bad for business.

Given that there is no solution in sight to this, how do you see flexible working practices as a way to partially solve this? 

Our environment is very detrimental to work-life balance. We fully understand that at the leadership level and I must say I am very fortunate to have colleagues on the Board that are very forward-looking and provide the cognitive diversity that is required for better outcomes in these extraordinary times. We have thought long and hard on how we can better take care of our people in an impactful and lasting way. I am therefore pleased to announce that we will from next month be the first Nigerian company, that I am aware of, to permanently change to a four day work week.

As a manufacturing company, a significant segment of our staff  by the nature of their jobs are involved in repetitive tasks as part of the manufacturing process. In order to maintain our consistently high quality levels, very high levels of concentration over extended periods are required. As you well know, the unrelenting and deteriorating nature of our harsh operating environment has a cumulative corroding effect on an employee’s physical and mental well-being. We believe this initiative will go a long way in redressing this imbalance and is not only beneficial to the employee but will also benefit the company. For far too many employees their place of work represents the only setting where they are assured of basic services like power, water and security. Human capital is our most precious resource as a companyand we intend to nurture and protect our people in any way we can.

Will the proposed new work- hours lead to staff rationalization ?

Absolutely not. The intended outcome of this change is enhanced productivity from better rested people. Rest and recovery is a key metric of sustained performance. Get that balance wrong and you are locked in a spiral of diminishing returns. I would also like to point out that all our employees will remain on their full remuneration. There will be no loss of pay for a single employee.

What are the advantages of this work model ?

There are a lot of advantages and I have a given a couple of examples but I am mindful that we operate in a very competitive space and would rather be circumspect about giving too much away. What I would add is that our customers and other external stakeholders would not be impacted in any way as we will be providing a full week of services in certain core functions related to customer fulfillment.

Hope the workers  have keyed into this novel idea ?

Fundamental change is very challenging as we are dealing with an existing  framework that has been in place from the earliest days of formal employment. We instituted a robust change management program and recognized that for culture change, time is the key metric. We are blessed with an ideal blend of very experienced and new dynamic entrants in our workforce and we have significantly invested in transparent communication of our objectives and how the outcomes are beneficial. We are confident that we have enrolled enough advocates and change agents in the process. Ultimately the reality will set in when the additional day of rest crystallizes for our people and they start to feel the impact.

When is the commencement date ?

We start from July.