Author: The Nation

Nigerian exports of sesame seeds have been fluctuating between 140,000 and 180,000 tonnes for some time.

Despite the high viability of the crop, data from the Food and Agriculture Organisation (FAO) said Nigeria’s production of sesame has been uneven compared to demand over the years. United States-based high-ranking research firm, Statista Inc, noted that the amount of sesame seeds produced in Nigeria reached 490,000 metric tonnes in 2020. It noted that the position was 510,000 metric tonnes in 2019.

According to it, the peak of sesame seed production in Nigeria was achieved in 2012, at nearly 995,000 metric tonnes, while, a lower produced quantity of some 149,400 metric tons was registered in 2010. Data from the National Bureau of Statistics (NBS) showed exportation of sesame seeds in 2022 stood at N139.85 billion, accounting for 23.34 per cent of the country’s total agric exports within the period. China was the biggest importer of sesame seeds from Nigeria in the period under review.

Other export destinations were China, Japan, Vietnam, Turkey, Greece, and Germany. According to the International Trade Centre (ITC), Nigeria’s sesame oil and fractions exports improved marginally to $13,877,000 last year.

According to ITC, it was $12,933,000 in 2018, $10,475,000 in 2019, and $12.109million in 2020.

China remains the biggest importer of sesame seeds from Nigeria.  According to  ITC’s – Trade Map, which provides statistics for international business development, China imported sesame oil  valued at $9,499,000 in 2018, $7,136,000 in 2019; $11,878,000 in 2020 and $1,374,000 in 2021.

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Its exports potential map indicated that the markets with greatest potential for Nigeria’s exports of 151550 Sesame oil and fractions are the United States, Germany and Brazil. The U.S. shows the largest absolute difference between potential and actual exports in value terms, leaving room to realise additional exports worth $255, 000.

Globally, the ITC’s Export Potential Map says the total untapped export potential of sesame seeds stands at $3.2 billion. The suppliers with the greatest potential to export 120740 Sesame seeds to the World, the map noted, were Sudan, Ethiopia and India. Ethiopia shows the largest absolute difference between potential and actual exports in value terms, leaving room to realise more exports worth $643 million.

The map put Nigeria’s export potential at $604 million. The actual exports, it maintained, was $328 million. The markets with greatest potential for Nigeria’s exports of 120740 sesame seeds are China, Japan and Turkey. China shows the largest absolute difference between potential and actual exports in value terms, leaving room to realise more exports worth $153 million.

Other potential markets were in Germany, Vietnam, Korea, Republic of India, Taipei, Guatemala, Greece, Russian, United States, Netherlands, Lebanon, Morocco, Poland, Mexico, Jordan, Israel, United Arab Emirates, Spain, Egypt, Saudi Arabia, Canada, Brazil, and  United Arab Emirates,

The world sesame seed production is estimated at 4. 8 million tons; with 10 countries – Myanmar, India, China, Tanzania, Sudan, Ethiopia, Nigeria, Burkina Faso, Uganda, and Niger – accounting for over 80 per cent of it.

Polaris Bank has appointed two executive directors.

They are Chinwe Iloghalu, the Executive Director, Lagos and Corporate Banking and Martins Izuogbe, the Executive Director, Service and Technology. 

The bank described the appointments as landmarks in the delivery of its refreshed strategy, which is focused on technology and service as critical pillars for growth.

The bank noted that its strategy is already delivering results, with deposit growth, an expanded product suite and service efficiencies all contributing to improved performance.

Managing Director,  Polaris Bank, Adekunle Sonola said: “I am very pleased to welcome Chinwe and Martins to the executive leadership team at an exciting time for Polaris Bank. Both have extensive experience in the banking sector, and strong track records in corporate banking, innovation and technology, which are integral to our strategy.

We have set out some ambitious targets for growth over the coming years, and I am confident we have brought together the right management team to deliver those targets. I look forward to working with Chinwe and Martins over the coming months and years.” 

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Chinwe is a seasoned banker with more than 25 years’ experience in financial services. Prior to her appointment she was the General Manager/Regional Head at Fidelity Bank covering the Lagos operations with extensive experience across the digital and electronic banking ecosystem. 

Martins has 25 years’ experience in the banking sector, all with Fidelity Bank where he served as the Regional Bank Head for Apapa prior to his appointment. He has spent a significant part of his career in operations and IT leadership roles, and brings that knowledge to his role leading our service and technology function. 

Following the appointments, Segun Opeke (ED Lagos and Corporate Banking) and Abdullahi Mohammed (ED North) will complete their tenures on the management team. Both executives played vital roles during the stabilisation of Polaris Bank following the transition from Skye Bank, helping to return the Bank to profitability.

Commenting on their contributions to the transition, Sonola said: “I would like to offer my thanks to Segun and Abdullahi for their help, support and guidance over the last six months. Following the acquisition of Polaris Bank by SCIL, they have been integral to the transition process, supporting the new board and CEO to build on the strong foundations they have established.” 

African tower operator, IHS Holding Limited is enmeshed in governance crisis as its shareholder standoff deepened.

According to sources, during its annual meeting as two of its largest stakeholders, Wendel SE and MTN Group Limited, who own about 45 per cent of IHS, demanded better representation on the company’s board, but their proposals were rejected by the board.

According to anonymous sources familiar with the situation, Wendel and MTN insisted that shareholders with a minimum 10 per cent stake be able to nominate board members. The demands, however, were rejected by IHS’s board, who stated that the proposed changes were not in the best interests of the company or its shareholders.

So far, both Wendel and MTN have declined to comment on the situation.

The shareholder conflict comes amid a significant drop in IHS’s stock value, which has dropped by 60 per cent since its initial public offering (IPO) in New York in 2021. Tower companies in Africa are facing significant investment demands to support the continent’s growing use of broadband and smartphones.

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According to sources, Wendel and MTN also claimed that IHS management failed to provide timely notice of their proposed resolutions and are now demanding that the general meeting be rescheduled to address their concerns.

According to the reports, another point of contention was MTN’s motion to convert its non-voting shares into voting shares, which was also denied. MTN, Africa’s largest mobile operator, currently owns a 26 per cent economic stake and 20 per cent of the voting rights in IHS.

It is worth noting that MTN  has no representation on the IHS board, whereas Wendel has one, Frank Dangeard. Sources say that, according to the shareholder agreement, Wendel has the right to nominate one director for appointment by the board as long as it owns at least 10 per cent of the shares. MTN, on the other hand, lacks a similar right.

This latest shareholder dispute is not the first involving IHS. Prior to the company’s IPO, IHS management clashed with Wendel over voting rights. As the standoff continues, it remains to be seen how the conflicting interests of the shareholders will be resolved, as well as the implications of this governance dispute for IHS and its future operations in the African tower industry.

Food and Agriculture Organisation (FAO) of the United Nations and Lagos government are working to ensure the state takes a share of the global beef market worth $414.98 billion. The market is  projected to hit $604.34 billion by 2029.

A former  Assistant Resident Representative, FAO, Dr Rabe Mani, noted that   the 24 million population in Lagos was one of the major factors contributing to the increased demand for nutritious, protein-rich meat products, adding that it is projected at supporting the beef market  in the coming years.

In an interview after the commencement of a Feasibility and value Chain Analysis of Lagos Cattle Feedlot Farm Estate,  Mani  explained that there was so much to be made in terms of returns on investments with the consumption of 2000 cows daily in the state. To this end, he said it was important to support the project to ensure the sustainable development of the red meat value chain in the state.

Permanent Secretary, Ministry of Agriculture, Mrs Olatokunbo Ibironke Emokpae said the workshop, particularly the Cattle Feedlot Estate in Lagos State, organised by the Food and FAO took off, it has has exposed participants to investment opportunities in the project.

According to her, Lagos State with a population of over 24 million requires 1.4 million  cattle worth over N490 billion yearly while production from feedlots in the state is  a mere 12,000. This leaves a huge gap, which is sourced from other states and neighbouring countries. “It is, therefore, clear that a viable investment niche exists in this lucrative value chain, which accounts for about five per cent of the state gross domestic product(GDP),” she said

In view of the economic potential of cattle production, she indicated that there was the need to enhance the supply of wholesome beef in Lagos.

She  said the government has commenced work on the establishment of a cattle feedlot project for which a 750Ha parcel of land was acquired at Igbodu, Epe. A total of 250Ha has been cleared and parceled into lots of 5Ha each for allocation to investors.

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Along with this ,she said the State Government  has  established a By-Product Processing Centre at Oko- Oba Agege. The centre ,she added, was almost at the completion stage.

According to her, “ The feedlot project will also facilitate beef traceability among many other health benefits for Lagosians, generate income for investors, create jobs, and stimulate economic activities within the project community. It is envisaged that the project will be replicated in the three (3) senatorial districts of the state over time.”

FAO Representative, Mr Fred Kafeero declared its support for Lagos  state Government to transform the livestock sector through feedlot operations.

Kafeero, who spoke through Mrs Adeola Akinrinlola said FAO will support the state Government to conduct a business oriented livestock production.

He  said the state government had requested for technical support to transform the livestock sector through feedlot operation for farmers.

In response  to this ,he said  FAO designed a Technical Cooperation Programme (TCP) facility to assess all aspects of the proposed feedlot project,including technical,economic,financial,environmental considerations to determine valid reasons to advance the idea.

Director, Veterinary Services, Lagos State Ministry Of Agriculture, Dr. Rasheed Macualay  highlighted the  importance of feedlot to the development of  the  beef and dairy industry .He  posted that the project is intended to relieve the economic challenge of unpredictable cost of cattle that is being dictated by the cattle merchants operating in the state.

His words: “Available statistics indicates that over 50 per cent  of the cattle trade in Nigeria takes place in Lagos State and as such we are at a very high risk of being affected by any cattle disease outbreak and the possibility of zoonosis (e.g tuberculosis of M. bovis origin).  In addition to the above, very few commercial cattle farms exist in Lagos State with total annual production of 12,000 cattle per annum. It is therefore appropriate for all stakeholders along the Red Meat Value Chain to be informed of the importance of exploring the opportunities in the Feedlot Estate Project. “

Officials of the Nigeria Deposit Insurance Corporation (NDIC) will from next week be visiting bank head offices to explain they determine what premiums banks should pay.

The exercise will be conducted at the individual bank head offices for executives and compliance officers.

A senior bank official in a tier one bank confirmed to The Nation that the NDIC has written to banks’ managing directors informing them of the planned visit.

The bank staff member said the visit had become necessary to educate bank executives who were growing weary of the deposit insurance premiums they pay.

The bank official said the banks would like to know why there are different premiums for different banks. 

According to the banker, “banks in the country operate in the same environment but pay different premium, so we need to understand how these premiums are arrived at’’.

An official in the operations department of the NDIC also confirmed the scheduled visit of the corporation to bank offices to The Nation.

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He said the visit and attendant instruction was “to bring the banks up to speed on the recent review of Differential Premium Assessment System (DPAS) Framework”.

According to the NDIC official, “after the visit we would have been able to expose the bankers to what we call DPAS.

The NDIC, he said, has discovered that “most banks don’t know how premium is determined, so now the department responsible for charging premium from next week will be going to all bank head offices to show Executive Directors and their compliance officers how we compute premium bank by bank”.

The training he said had become necessary to reinforce the importance of “ethics and principles in the way to conduct affairs in every organisation”.

Premium base rate in Nigeria, he explained, is uniform and operated “on the same quantitative template”.

He said “banks are the most regulated entities in the world, because once people do not have confidence in the their banks then that economy has collapsed”.  

Over the years, the NDIC he said has increased the premium that banks pay in order to effectively settle claims made by depositors of distressed banks. “We started by doing N50,000 then moved to N100,000, N200,000 and now N500,000” he said.

Last week, the NDIC solicited for contributions from critical stakeholders to make the Differential Premium Assessment System (DPAS) Framework document more robust and all embracing.

The NDIC said the Differential Premium Assessment System Framework was reviewed to make it more risk sensitive and account for significant developments that had taken place in the Nigeria banking system since its adoption in 2008, like the upsurge in electronic fraud in the banking system.

The review NDIC said “was informed by the need to ensure that the framework conforms to the recommendations of the International Association of Deposit Insurers (IADI) and other global best practices.

Now that the review of the Differential Premium Assessment System (DPAS) Framework is at consultation stage, the NDIC believes “it is imperative for the Corporation to solicit input from its critical stakeholders”

To get the buy-in of the stakeholders, the exposure draft of the DPAS Framework has been placed on the Corporation’s Website, www.ndic.gov.ng for review.

Stakeholders have been urged to forward their input, comments and recommendations to NDIC Director, Insurance and Surveillance Department latest by 30th June 2023.

The NDIC adopted the Differential Premium Assessment System (DPAS) in 2008 following the issuance of its framework in 2007 to differentiate premiums payable by Insured Financial Institutions based on their respective risk profile. 

The DPAS was aimed at introducing fairness into the premium assessment process, encouraging effective risk management practices in insured institutions and applying a risk differential approach in the deposit insurance premium assessment of insured financial institutions.

The DPAS was also introduced to enable banks in the lower risk categories to pay relatively lower premium rates, charge banks in the higher risk categories additional premium for their extra risks, incentivise regulatory compliance and mitigate moral hazard.

Chairman, Nigerian Aviation Handling Company (NAHCO) Plc, Dr Seinde Fadeni, in this interview with KELVIN OSA OKUNBOR, speaks on the recovery for ground handling companies, touchy points in the aviation handling business and the prospects of the economic growth.

A new President, Bola Ahmed Tinubu, was has been sworn. What policy framework do you think will drive the growth of the economy?

The global aviation industry over the past few years has been grappling with numerous challenges forcing governments across the globe to evolve mitigation efforts for players in their economy to pull through. Even the Federal Government in Nigeria has not acted differently. It is becoming clear that more interventions are required for different sectors to pull through. Significantly, a new era is here. Now that the country has a brand new government led by President Bola Tinubu,  players in the economy, including the aviation sector, are upbeat on how the system will run. 

However, I believe that with the new administration, they want to retool the economy and I believe that that will also aid air cargo.

Because once there are activities and the economy is running well, everything will run smoothly.

President Tinubu has also said there is going to be a unified exchange rate.

So, this has had a lot of impact on cargo import, whether it is sea or air freight. But, with these new economic policies, which we know that by the grace of God, he will live up to, there is going to be increase in cargo movement.

Aside  from the new policies you look forward to, are there other issues you want the new administration to focus on to make the operating environment more conducive for companies in the cargo handling/aviation value chain?

There are lots of issues militating against the growth of the cargo handling and allied sectors. But, I would like to categorise them as basic and other issues. Core among the basic issues is the challenge of multiple taxation. One of the major issues is that 95 per cent of our  operational equipment, if not 100 per cent, are bought through foreign currency. So, we have not had good access to foreign currency. We can’t even try to take a loan because you won’t survive it. The interest rate is not good for any business in Nigeria. We are almost at 26 per cent per annum. What do you want to do to make that kind of money to pay back?

Basically, those are the challenges. For example, what the Federal Airports Authority of Nigeria (FAAN) charges us is  five per cent on our revenue. It shouldn’t be  five  per cent on our revenue, it should be five per cent on our profit. Because if you are charging us five per cent on revenue, that means you are also charging the money I paid to our staff.You are taking  five  per cent on our  staff and yet I am paying the airport authority. If I want to take land from FAAN, my landlord, I will have to pay for it and yet you are taking  five  per cent of  our  total revenue, not profit.

In the face of these challenges , surviving air cargo handling in the country looks bleak. What is the future of the business  in Nigeria?

Cargo is more time bound and it continues to happen all over the world. As a matter of fact, when it comes to Africa or these areas, you will find out that we are more or less playing on the fringe in Nigeria compared to other places like South Africa and other countries like Ethiopia.

 In terms of scale of operations, our air cargo freight is so small. For example, in Nairobi, Kenya, every Boeing 737 plane leaves the city with flowers to Europe and other countries. At the end of the day, you just find out that the effect has not really gotten to Nigeria. A lot needs to be done to improve the business in Nigeria. Through the right policies and strategy, the country could improve the level of its a participation in the value chain.

How has the forex scarcity affected your operations?

Terribly, remember at a point in this country, a dollar was N150. Some of our equipment are up to 700,000 Euros; some are up to 500,000 Euros. Some are even 300,000 Euros. So, the money you would have used to buy four equipment, you use it to buy just one. And the unfortunate thing is that it is not like you can even get it on the shelf, you have to wait for it. To even get the dollar is a problem, it is not that it is available. That is the problem. It is high and it is not available.  

Globally, players in the cargo handling and allied value chain are exploring leasing options to drive down costs through collaboration. Is NAHCO thinking along this line?

This is a fantastic idea, and just like you rightly said, abroad it is easy to do leasing and it is just like what happens in housing. I know some of the oil companies, such as Shell, does not buy outrightly, they lease. Abroad you don’t need to buy a house, you mortgage because the interest on some of these things are very low. But, even if you want to do leasing in Nigeria on equipment, the guy goes to the bank, he takes money at 25 per cent and then he leases it. How much does he want to lease it to you? So, these are some of the challenges.

But I also appreciate the fact that you said we should come together and form a leasing company, which can lease to us. We have also been speaking to ourselves about this kind of an arrangement. But the major challenge is what I have told you. If you want to lease and you take money from the bank at 25 per cent, you buy the equipment and you give it to us, how much do you want to lease it to us? These are some of the challenges. It will kill us. To declare profit is a problem, but the thing is that you still have to declare profit for the stakeholders. By the time you turn the profit to dollars, how much does it become? All the shout about good profit, just divide it by dollar.Today, it is N770 to a dollar. So, it is basically about demand and supply, it is what is available that is what is driving it.

So, these are some of the things we also want to talk about to the new government.

The concept of Free Trade Zone is gaining traction in Nigeria. As one of the indigenous companies that embraced this concept, what are the benefits so far derived ?

I won’t say that we have not benefited from it, but it has not got to where I expected it to be. Right now, we have some investors who are coming to us from Dubai in the United Arab Emirates (UAE) and also from Atlanta in the United States. So, we want to really use the advantage of that free trade zone. The beauty about it is that Nigeria can act as the hub for West Africa and since it is just coming in and it is going out, then you don’t need to pay any customs taxes.

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We are working seriously on it; that is why I said I won’t say we have not benefited from it. However, it is not up to 20 per cent of what I expected.

In 2020, when we had COVID-19 pandemic, the prediction then by most stakeholders especially in the aviation industry, was that it would take about four years for the industry to recover fully, but as at last year, most organisations in Nigeria, including the handling companies, have recovered from the crisis. What actually do you think aided the fast recovery rate?

It is basically strategy, and our stakeholders, especially with our customers and increase in our excellent service. So, it is just doing what we think is the right thing. No doubt about it that the tariff also helped us and for a long time, we have been charging less than other West African and Africa countries’ prices, which even made it possible to live up to expectations in terms of equipment and other things; to run the business, including our staff, manpower and commitments. So, it helped to some extent.

The quick recovery rates happened in almost every part of Africa and not just in NAHCO alone. In that year of COVID-19, Ethiopian Airlines declared a profit of over $1billion and it was just through a strategy. When Emirates Airlines parked their planes, and they were using it for restaurants, Ethiopia turned their planes to cargo. There was serious cargo movement, it didn’t stop, and we are part of the people that made money out of it.

So, it had an impact on us in the sense that all those periods we were working. And what we also did strategically is that some of our staff who were not essential workers, we made sure that they were at home, and we were paying them about 50 per cent of their salaries. Because this is a skill organisation, we put so much money in training them. So, for you to get another set of people, it will take you a lot of time and resources to train them. So, what we did was ask  them to stay at home and pay them. What we just removed was transport and some other allowances. It was just a strategy and doing the right thing and making sure that we reduced our cost. That is why we were able to overcome these challenges.

What are the highlights of the stellar results, which you announced at the Annual General Meeting (AGM) for the 2022 financial year?

I am pleased to report that our company, just like the industry, remained resilient, performing admirably and achieving some significant milestones thereby delivering value to you, our esteemed shareholders. Our group revenue for  2022 was N16.7 billion, a 63 per cent  increase from the previous year’s figure of N10.2 billion.This was due to a combination of factors, including the increase in aircraft handling rates, onboarding of new routes by some loyal clients, such as Qatar Airways expansion into Kano and Abuja routes; and Ethiopia Airlines addition of Enugu route to its destinations.

Air peace’s commencements of flights on Port Harcourt-Cameroon route; the expansion of our excellent services, improved efficiency in our operations and increased reliance of our clients on our ability to deliver all contributed to the positive results.

Our profit before tax is N3.8 billion, a 310 per cent  increase from the previous year’s figure of N925 million.

You had a very stellar performance 2022. How do you intend to sustain this tempo?

I am very confident that we will do better than what we did in the past year. We have our first quarter report, and I am sure we have it in the public. So, I don’t have any doubt that we will surpass what we did in the 2022 financial year.

And what we have also done is that we have tried to retool our system by cutting costs. We are trying as much as possible to make sure that there is no waste in the system. And for every kobo we earn, we want to see what it brings out from whatever we use it for. So, I am very confident that we will do better.