The Nation Newspaper

Category: CEO

  • My inspiration comes from God – Soft Mide

    My inspiration comes from God – Soft Mide

    Not a lot is known about the achievements of SF Records CEO Temidayo Joseph Agunbiade. His magnificent skills and especial prowess in his field make him disparate from the variety of record label owners in the country.

    In this interview with The Nation, Soft Mide, as he is popularly known, provides an insight into his creative process and how music and building up an enterprise has impacted his life.

    We all know you as Soft Mide, what is your real name?

    My name is Temidayo Joseph Agunbiade

    May we know about your background?

    I am from Ifon, Ondo State Nigeria, I basically had my childhood in Ondo state, I was born on 26th November 1993. My primary education was at L.A primary school in Ifon Ondo State, and secondary education at Immaculate college also at Ifon.

    How did you kick start your record label and SF Clothing Store?

    Just as every entrepreneur has a mindset to be distinct, avid, and productive, I saw the need to start something new, and far from the usual, SF clothing started from the high demand for fashionable wears and the record label started from the need to create a platform to produce music.

    My aim is to use my record label to serve as a platform to endorse proficient artists oozing talent and also a very good platform to produce hit songs that would earn my team members credits from numerous streams and downloads.

    While My brand SF clothing line provides clients and customers with elegant clothing and classy apparel.

    Aside from producing music, what did you study in college?

    I started my higher education at The College of Health technology in Offa, Kwara state Nigeria. I furthered my education at the Vocational School for Office Management and Industrial Clerks, situated in Munich, Germany. Basically all through my life, music and making money as well as being industrious has been my thing.

    How would you describe your expertise and what should the public lookout for from you?

    I would start by saying; I am proficient by measuring my competence, I am versatile. I have my life planned out already, I look forward to learning a lot and working on myself to be better than I used to. And as well taking up a leadership role in the future, but I prefer to work with others to gain more experience and knowledge about people’s character and how well to perform. Given a chance to be a leader of many, I am confident enough that I would shape the team into being successful workers, and also moulding the firm into what is a lot different and qualified from what we have now.

    What is your genre of music?

    I focus more on Afropop and Beat.

    What’s your creative process?

    I am a music producer, and an entrepreneur, I run a fashionable clothing brand anyone can attest to that by listening to the songs we have produced and more to come and also if he or she has worn any of the brand’s outfits.

    What year would you say was a breakthrough year for you?

    2020! I kickstarted my record label earnestly, and signing Arcydan into the record label was worth it. We are currently working on a project which I believe would be a banger.

    What inspires you to make music?

    My inspiration comes from God because he has been the source all through my life. Secondly, I get daily inspiration from my family and friends and happenings around me.

    Of all the good entrepreneurs in the world, which of them do you admire?

    I am a fan of Nigerian business tycoon, Femi Otedola. He is a mentor and role model, his versatility is unique and has booming businesses and he is a renowned African entrepreneur.

    What have you learned so far?

    It is said that “humans shouldn’t stop trying and working hard to get desired results.” Life has taught me that it is unwise to settle with just an option while trying to make it further. But rather, multitask, and venture into various ideas and see how things take positive turns. Many call me a jack of all trades, but my ideology about life generally is that “it isn’t over until it’s over.

  • Olanrewaju builds human capital development through brand ambassadors

    Olanrewaju builds human capital development through brand ambassadors

    Chief Executive Officer of LaerryBlue Media and Brand Expert, Alaka Olanrewaju Mayowa, has stated his passion for development of more brand Ambassadors in Lagos is driving him into human capital development.

    Olanrewaju stated this when he empowered some brand experts with digital equipment at his corporate office in Lagos.

    ”I have put myself up for the service of the people in Lagos State and beyond. I have partnered with brand Ambassadors over the years, and I am willing to do more, because of the synergy we have been able to form over times.

    ”When people see you as their Leader, it bestows huge responsibilities on you, as people also look up to me for assistance. I am committed to uplifting Experts in the field, and to leave a lasting legacy in their hearts, so, it is incumbent on me, to assist in whatever means possible, Olanrewaju said.

    One of the beneficiaries, Mr. Muslik Isiaka, said the laptop given to him by Olarenwaju will help in the growth of his business, and also help him to get more clients and train people at a minimal fee.

    Olanrewaju said, his next phase of empowerment will be to organize trainings to assist them assume some level of independence, through his life transforming experiences which is targeting to take most of the boys off the streets.

    We hope that few lives can be touched through our magnanimity, no matter how little, I will always help my colleagues, for the trust they have in Laerryblue Media , he said.

  • Kodest media services brings brands closer to the market

    Kodest media services brings brands closer to the market

    Social media is one important marketing tool that reaches a large audience, more than one can imagine. It is so powerful, it has been seen as a way to make businesses and prospects known to customers. However, great marketing on social media can bring outstanding success thereby creating awareness.

    On the other hand, it is important to communicate with prospective and esteemed customers through the various platforms of social media. These platforms are; Twitter, Instagram and Facebook, and others.

    Kodest Media Services is a social media agency, renowned for social media marketing campaigns and strategies. Thus, the agency helps people gain value for their businesses and contents.

    The company has established a standard through which media marketing can help with a certain number of goals, such as: propelling schemes to yield increase in visibility and traffic, redevelopment of websites, augmentation of brand awareness, and viewership through a strategic approach, formation of a brand specification and a constructive key, as well as enhancing broad communication and reciprocity with target audience and market.

    Owned by Afolabi Oluwatomiwa Dennis who is known as Kodest Tee, Kodest Media Services is the young aspiring entrepreneur’s first achievement. He came to the limelight through the successful establishment of his social media marketing panel. He says that on this platform, people can contact the company’s personnel, and make a request to enhance their personal, business, and brand pages.

  • What to do when buying gold, diamond – Founder, Houseofamearypearl

    What to do when buying gold, diamond – Founder, Houseofamearypearl

    Founder of Houseofamearypearl, Shyllon Adeola, has made a huge name for herself as a top jeweler with her customers spread across the globe through her ever-growing Instagram community.

    Her followers run into over 100,000 each with a taste for premium quality gold and diamond.

    So, when she talks “Gold and Diamond ” there are many bending their ears to listen.

    She posited that one of the best forms of investments in tough economic times is buying an item that would continue to appreciate and could be sold at a later date for profit. She added that the gold buying business is a good way to making a huge profit , as gold is the most gainful and unchanging, predictable raw material there is.

    “When buying gold or diamond, ensure the authenticity of the seller, so most definitely if you trust the person , you will definitely get exact jewelry with no issues and also make sure it has an Italian 18 karat gold logo on it and you are good to go,” she advised on a general note.

    “Buy from a tested and trusted vendor as it can be difficult to spot a fake jewelry at first sight, a gold plated and solid gold jewelry can look identical but overtime the true identity of the gold plated will show,” she offered her candid advice when it comes to making a choice of jewelry to buy,” she added.

    For couples looking to make a choice of a wedding ring, she advised, “Most times my advice is for them to go within their budget , ensure it’s genuine pure Italian gold as it would stand the test of time and can easily be upgraded to a bigger one with time. You just have to start somewhere with gold.”

    Shyllon Adeola is a serial entrepreneur, happily married with two children.

    She graduated from Olabisi Onabanjo University with a Bachelor’s degree in Computer Engineering.

    She also did some Engineering programs to firm up her first degree but it was the field of business that caught her fancy more and soon made her passion a means of livelihood.

    At Houseofamearypearl she sells Italian gold jewelry and diamonds of all kinds.

    “It was just officially registered in 2018 when I needed a business account because it was not easy to convince customers that you are genuine with your personal account. Houseofamearypearl is duly registered under CAC,” she stated.

    She is also a serial entrepreneur, who is into sales of fashion items generally; such as shoes, bags, Italian gold jewelries and diamonds, including weaves and hairs.

     

  • Capital Meets Character: Inside the Data-Driven Cash Flow Profiling Model Fueling MSME Growth

    Capital Meets Character: Inside the Data-Driven Cash Flow Profiling Model Fueling MSME Growth

    In October 2018, Rosebud Hotel in Abuja was approaching a critical juncture. The upscale hospitality business, situated in the heart of Nigeria’s federal capital, had built a reputation for quality service, comfortable accommodations, and conference facilities catering to business travelers and diplomats. They have also just acquired two additional hotels; Nanet Suites and Emirates Hotel, both very strategically located, and we really needed to re-model and get busy. Funds were required for the expansion but behind the serene facade was a growing challenge—limited access to financing needed for expansion.

    “We had stable revenue, a loyal client base, and a strong location,” said Tomi Akingbogun, the hotel’s founder and managing director. “But every time we approached banks for support, we got the same story: not enough fixed assets, too much seasonal exposure, and a capital-intensive model that made them uncomfortable.”

    Everything changed, he said, when he walked into the Diamond Bank branch in Abuja and was told about a new business lending initiative. “They said they now had a way of evaluating businesses like ours that didn’t rely on collateral alone,” he recalled. “We were handed over to Ms. Hassan, who not only was excited to work with us but assured us that the bank would finance our business and that only tangible assets was no longer a stumbling block given the new lending appraisal initiative”.

    That “new way” was the outcome of a data-driven Cash-Flow Profiling Model developed by Edidiong Hassan, then a senior credit strategist at Diamond Bank Plc. Frustrated with Nigeria’s rigid credit profiling systems that, in her words, “rewarded formality, not viability,” Hassan piloted the Cash Flow Profiling Model to support Micro, Small, and Medium Enterprises (MSMEs). While still acknowledging the traditional five C’s of credit—particularly collateral—her approach gave greater weight to often-overlooked factors like character, capacity, and business conditions. She envisioned a system that assessed businesses not just by their assets, but by their operations: cash flow, customer base, and consistency.

    Following the 2019 merger between Diamond and Access Bank, Hassan’s Cash Flow ProfilingModel proved resilient. It was retained as one of the most viable innovations from the legacy bank. As she notes, lending is more than finance—it’s a form of recognition that allows customers to feel seen and supported. Since its rollout, the initiative has enabled hundreds of MSMEs to access capital—many for the first time—with a remarkably low default rate. “This model lets us understand a client’s cash flow,” she explains, “and helps determine whether a term loan or an overdraft is the better fit.” Rather than being sidelined by the merger, the program grew—and so did its impact.

    That year, Rosebud Hotel secured a term loan which was the largest facility the business had ever received—and it came without the bureaucratic bottlenecks that had plagued past applications. “We used that money to upgrade our rooms, renovate the conference center, and install an energy-efficient system that has saved us millions in diesel costs,” Akingbogun explained. “We also launched a digital booking platform that expanded our reach internationally. That loan gave us the leverage to compete.”

    But her impact didn’t end at credit profiling.

    Understanding that loan access without operational knowledge was a recipe for failure, Hassan began organizing quarterly business clinics for entrepreneurs. These sessions, held in Lagos, Abuja, and Port Harcourt, brought over 1,200 small business owners together between 2015 and 2018. They covered topics such as financial forecasting, risk planning, and structured loan repayment—tools that many entrepreneurs had never formally encountered.

    One of those entrepreneurs was Sebastine Maduka, founder of Sebest International Trading Co., a wholesale importer of consumer goods based in Lagos. Maduka, who had previously relied on informal loans and family capital, said the training was just as valuable as the credit.

    “We were used to running the business by feel—buy, sell, repeat,” Maduka said. “But when we started learning how to track our payment cycles and structure our inventory buys around credit terms, our margins improved almost overnight.” For Maduka, the loan he received through Hassan’s model allowed him to double his monthly imports and expand into three new states. “The model understood that we had turnover—it just wasn’t neat on paper. But the system read it, and the bank listened.”

    The story is similar for Nnamdi Ijeh, Managing Director of Phildeth Limited, a large-scale aluminum products dealer in Enugu. Before encountering Hassan’s approach, Ijeh said his company was repeatedly denied credit on the grounds that it was “capital-intensive and cash-poor”—a conclusion he found both simplistic and damaging.

    “What we needed was working capital to manage project timelines,” he said. “We had the clients and the contracts, but we couldn’t finance the lag between procurement and delivery. Hassan’s model caught that. They saw the rhythm in our project cycles. That changed everything.”

    The loan Phildeth received allowed the company to fulfill several high-value government contracts and secure a permanent warehouse, cutting costs and improving supply reliability.

    Industry observers say Hassan’s model was a rare example of innovation that didn’t just emerge from policy papers or think tanks, but from inside the walls of a Nigerian bank—built by someone who understood both institutional limitations and client realities.

    “It was ahead of its time,” said one former colleague at Access Bank who asked not to be named. “And honestly, it’s the kind of model that regulators should be looking at nationwide.”

    In a country where over 90 percent of businesses are MSMEs, Edidiong Hassan’s contributions are not just administrative or academic—they are national. More than a dozen Access Bank branches continue to use modified versions of the model she created. Small businesses in every geopolitical zone of the country now benefit from smarter lending decisions and more empathetic banking relationships—thanks, in no small part, to a woman who believed that good ideas, like good data, should be actionable. Her initiative has lifted businesses off the margins and onto the mainstream, proving that when banks innovate with intention, they don’t just manage risk—they build economies. Capital. Confidence. Continuity.

    “She didn’t just give us loans,” said Tomi Akingbogun of Rosebud Hotel, “She gave us a system that made us visible to the financial world. That’s a gift that keeps on giving.”

    As Nigeria continues to explore ways to deepen financial inclusion and expand access to enterprise credit, Edidiong Hassan’s Cash Flow Profiling Model stands as a blueprint for what is possible when banking meets understanding—and innovation meets empathy.

  • From Africa to the World: How Omotolani Akinbolajo is Reshaping Cross-Border Trade

    From Africa to the World: How Omotolani Akinbolajo is Reshaping Cross-Border Trade

    In the shifting landscape of global trade, where supply chain stability and cross-border finance determine the health of entire economies, few names are emerging as decisively as Omotolani Akinbolajo. Her work at the African Export-Import Bank (Afreximbank) has placed her at the center of projects that are redefining Africa’s participation in international markets and stabilizing regional supply chains.

    Driving Europe-Africa Trade Integration

    One striking example is the €30.2 million QM Foods Integrated Meat Production Project. At first glance, the venture might seem like just another agribusiness expansion. Yet, beneath the surface lies a critical restructuring of Africa-to-Europe trade flows.

    Akinbolajo, serving as a Supply Chain Analyst at Afreximbank, led the due diligence and compliance analysis that made European partnerships viable. By mapping out supply chain bottlenecks, ensuring adherence to EU sanitary standards, and validating long-term offtake agreements, she transformed the project from concept to international reality.

    Industry observers note that her interventions did more than unlock funding. They de-risked Africa’s entry into a notoriously demanding European meat market, opening lasting channels for African exports.

    Glass, Industry, and Regional Stability

    Another project under her oversight was the establishment of the Harmony Glass Factory in Nigeria, a high-capacity float glass plant designed to reduce dependence on imports.

    While global markets have been roiled by supply disruptions in construction materials, Akinbolajo’s analysis created a blueprint for resilience. Her financial modeling and market benchmarking enabled Afreximbank to greenlight cross-border partnerships, including key collaborations with Asian suppliers.

    The result? A facility poised not only to meet domestic demand but also to stabilize glass supply chains across West Africa, ensuring builders, manufacturers, and financiers are less exposed to global shocks.

    Leadership Beyond Numbers

    Colleagues and project partners consistently describe Akinbolajo’s role as “leading and critical.” Her expertise, they say, does not merely inform decisions, it shapes them. “She was the reason European offtakers felt confident in proceeding with our agreements,” one QM Foods executive noted. “Without her insights, the cross-border financing would have stalled.”

    At Afreximbank, where billions of dollars in trade financing depend on rigorous analysis, her contributions stand out as markers of thought leadership in international finance.

    Africa’s Emerging Global Architects

    As Africa deepens its integration into global markets, professionals like Omotolani Akinbolajo are emerging as the architects of that future. By pairing rigorous financial expertise with a strategic vision for trade, she has helped build pathways that are not only profitable but also resilient in a volatile global economy.

    In doing so, she has made her mark on projects that span continents, influencing cross-border trade, international finance, and the stability of supply chains on which millions depend.

    PROJECT HIGHLIGHTS

    •     QM Foods Integrated Meat Production (€30.2m)

    → Afreximbank-backed; cross-border export agreements with Europe.

    → Reduced entry barriers for African agricultural exports.

    •     Harmony Glass Factory, Ondo State

    → High-capacity float glass plant; local raw material utilization.

    → Stabilizes regional supply of glass, reducing reliance on imports.

    •     Strategic Role of Omotolani Akinbolajo

    → Led due diligence, compliance analysis, and financial structuring.

    → Described as “leading and critical” in enabling international agreements.

  • Non-interest global assets to hit $3.8tr

    Nigeria’s financial sector is gradually diversifying from its streamlined orthodox banking to the non-interest field which parades huge capital for investors. The Managing Director, TAJBank Limited, Hamid Joda, the latest entrant into Islamic banking in this interview with Group Business Editor, SIMEON EBULU, says the bank will afford Nigerians the funding alternative they’ve been yearning for.

     

    WHAT is the state of non-interest banking in the world today and what informed your decision to go into it?

    The non-interest banking industry is currently one of the fastest growing segments of the financial services industry. The industry has global assets of more than $2.4 trillion and a forecast of 7.7 per cent  compounded growth per year to reach $3.8 trillion by 2023.

    The industry is growing rapidly in Malaysia where non-interest (Islamic) banking assets constitute almost 30 per  cent of the entire banking industry, while Jordan and Pakistan have risen to rank among the top 10 countries for non-interest finance. As a matter of fact, London is also fast becoming the global hub of non-interest finance. If you consider all these factors you will agree with me that the non-interest banking sector is in an excellent position and witnessing steady and healthy growth.

    If you look at recent developments in the non-interest banking industry in Nigeria, ranging from the successful Sukuk issuances by the Federal Government to the success recorded by current players in the industry coupled with the yearnings of the people for a better banking alternative, you will agree with me that the non-interest banking space has tremendous potential hence my decision and that of my co-founder Sherif Idi, along with other investors to venture into this sector.

    Nigeria currently has about 27 banks. What space are you going to cover?

    Yes there are about 27 banks in the industry, but we are a unique bank and we’re positioning ourselves in the ethical banking space which Nigerians have been yearning for. We believe there are huge untapped opportunities in the non-interest space. Our model also gives us the opportunity to engage in many business spheres, whether its partnership contracts, sales contracts, leasing, guarantees, ethical wealth management, international trade finance and a range of other offerings. Therefore, our niche is unique in the Nigerian banking market.

    When an institution says it would do Islamic banking, is it precluded from doing business with people of other fate?

    Our business model is Islamic banking which seeks to promote equity and fairness to all parties in any transaction or relationship. It is open to people of all fate. We do not discriminate against customers on the basis of fate. All customers regardless of their religious beliefs are treated equally and fairly with respect and dignity. Infact, TAJBank is an equal opportunity employer and we don’t discriminate on the basis of fate, tribe or gender in our recruitment process or even in how we treat our staff.

    What would be your product offerings?

    Our banking model gives us the opportunity to offer a variety of products and services to our customers. First, on the financing side, you have the partnership products where the bank can partner with a customer and go into a business with the aim of sharing the profit or the loss. Second, you have the sale based products, like the Murabaha which is a typical trading arrangement where the bank buys a product and sells to the customer at a mark-up, while the customer pays over a period of time. The cost price and mark-up are disclosed to the customer in a transparent manner.

    You also have the lease products where the bank buys a product or service and leases same at a mark-up to the customer. Furthermore, we have the Kafalah products which give us the opportunity to offer bonds and guarantees on behalf of our customers. The trade finance product is also one that we offer and customers can do any kind of international trade finance transaction through the bank.

    On the deposit side, we have the Mudarabah or partnership term deposit where customers place their funds with the bank while we use the deposit and share profit with customers based on a pre-agreed sharing ratio. We also have the Qard account which is a current account relationship that attracts zero account maintenance charges. We also have savings accounts variants. By and large, there are several other high value products that we offer our teeming customers.

    The incidence of internet fraud is spreading across the globe. How can this vice be curtailed?

    Banking today has evolved to become more or less an IT business and a very thin line exists between a bank and a Fintech company. Almost all transactions are internet based and conducted though handheld devices. On the back of this development, fraudsters are always on the prowl to exploit loopholes to penetrate a bank’s firewalls and wreak havoc.  This has become a global phenomenon.

    One of the remedies (against internet fraud) is investment in internet firewalls and other security devices that curtail the risk. However, the major problem is people risk which relates to acts of connivance or even negligence on the part of staff. To mitigate this risk, banks have to train and retrain staff and watch out for change in lifestyle of staff members because lifestyle changes could signal that a staff is involved in fraudulent activity.

    Past experience with the nation’s banking system persuaded the CBN to foreclose family ownership of banks. What is the ownership structure of your bank?

    The ownership of TAJBank is diverse. It is owned by Nigerians from all walks of life. The Bank is not family owned.

    Do you intent to go public by taking TAJBanK to the capital market?

    Yes we will be open to the public investing in TAJBank Limited. However, according to capital market regulations, a company must be in existence for a minimum of five years before listing on the stock exchange. As such it is still early for us to aim for stock market listing.

    Nigeria is a large country with 36 states. How do you intend to reach out to your prospective customers?

    As you are aware, our license is a regional one with coverage in the North East and North West regions of Nigeria. However, we intend to reach out to all customers in all the corners of Nigeria. It is against this backdrop that we made significant investments in technology to develop a robust agency banking framework, a digital wallet and also customer onboarding through mobile and internet banking channels, as well as a USSD code – *898# which can be used from anywhere in Nigeria. Wherever our customers reside in Nigeria they will be able to open an account and do business with TAJBank.

    How are you intending to proceed and compete, given the existence of some big players?

    Banking has dramatically changed over the last few years in the sense that today there is a thin line between a bank and a fintech company. Generally, banking is now an information technology business. We at TAJBank are not unmindful of this development hence our significant investment in information technology.

    Today’s customers demand nothing less than good service and we are ready to offer them exceptional service. We believe there is a huge gap in service delivery in Nigeria hence our desire to raise the bar in terms of service delivery. This will distinguish us from the rest.

    The banking industry used to be the toast of job seekers, both for its good pay and job security, but all that is changing now. What went wrong?

    I think the banking industry is still very vibrant and has not lost its allure. The pay is generally competitive and a lot of job seekers are still keen on pursuing a career in the industry. However, owing to recent events including but not limited to the recent recession, a lot of banks have had to downsize their workforce. Hence the industry established a reputation for one with no job security. I am confident that as the economy gathers steam, banks will begin to not only employ Nigerian youths but retain the ones currently employed.

    What is your take on accusations that banks are imposing hidden charges on customers for most transactions?

    For us as an ethical bank we have no incentive to apply hidden charges because if we do we’ll reverse the income wrongly earned and either credit the customer or take it to charity depending on the circumstance. This will cause untold reputational damage to the bank as such it’s a path we don’t intend to thread.

    How best can banks help the economy to grow without injuring customers deposits?

    I think this can be achieved if banks work hard to develop safe lending models in high impact areas of the economy like agriculture which has long been neglected. We must commend the laudable initiatives of the CBN on the intervention schemes. For instance, we are currently witnessing a revolution in the rice subsector all attributable to the CBN schemes. What the Central Bank is doing is to provide credit risk guarantee of 50% of the exposure. This has given banks the comfort to lend in hitherto very risky areas.

    Banks have been accused of not lending enough to the real sector. What do you think should be done in this respect?

    One of the major problems of the real sector in Nigeria is infrastructure. This ranges from lack of basic ingredients for manufacturing including but not limited to power, good road infrastructure, rail network to transport heavy duty goods, insecurity etc. These factors contribute to high mortality of manufacturing companies in Nigeria hence the major reason why some banks are wary of lending to this sector. However, we are seeing a gradual resurgence in the sector especially when you consider recent developments in the rice milling industry. A lot of rice mills have been set up nationwide. With recent developments, I believe banks will begin to take a stronger look at the sector. The CBN has also made effort to ensure banks increase lending in the economy. This was done through the new policy on 65:35 LDR.

     

     

     

  • Funding, others hindering Train 7

    Nigeria’s huge gas reserve is a good omen for the country, which survives on only oil. The pioneer Managing Director, Nigerian Liquefied Natural Gas (NLNG) Limited, Dr. Godswill Ihetu, said the country has earned good cash from liquified natural gas export. He urged the Federal Government to make the best use of the opportunities offered by the product as it is fast replacing oil globally. Ihetu blamed funding by partners, among others, for the delay of Train 7 which, according to him, will provide over 40,000 new jobs when inaugurated, AKINOLA AJIBADE met him.

     

    WHY did the Federal Government set up the Nigerian Liquefied Natural Gas (NLNG) Limited?

    The government set up NLNG for a number of reasons, chief of which was to harness the potential of  natural gas resources for growth.  To achieve this goal, the government ensures that the firm produces and exports two products — the Liquefied Natural Gas and Natural Gas Liquids. Through this, the government has been able to leverage gas to earn huge revenues, after crude oil.

    Other reasons advanced by the government, for setting up NLNG, include creation of jobs, improving domestic consumption of Liquefied Petroleum Gas (LPG), while, at the same time, improving the contribution of the gas sector to the Gross Domestic Product (GDP).

    The NLNG, since inception in 1989, has been fulfilling its mandates of exporting liquefied natural gas to developed markets, as well as providing the government with huge revenues.

    The country is blessed with proven gas reserves of about 200 billion cubit feet and unproven gas reserves of 600 trillion cubit feet. Based on this, the government does not need to worry on how to survive, once it focuses on how to develop the sector ore.

    What delayed the implementation of Train 7 project, which the Federal Government, is leveraging to improve gas exports and further improve the country’s earnings?

    The delay in the implementation of Train 7 is caused by many factors such as funding, failure by major partners in NLNG to reach a consensus on how and when to invest in Train 7, and refusal by NLNG to take Final Investment Decisions (FIDs) as at when due, among others.

    The partners are the sharehold-ings are Nigerian National Petroleum Corporation (NNPC) (49per cent), Shell (25.6 per cent), Eni (10.4 per cent), while Total Gas Elec-tricite (15 per cent). NNPC holds 49 per cent shares, on behalf of the Federal Government, while the three International Oil Companies (IOCs) namely Shell, Eni and Total own the remaining 51 per cent stakes in NLNG.

    Despite this, the partners were unable to provide an estimated $17billion for the Train 7 project. The reason is because the money is huge and as a result, it would be difficult for them to provide. To achieve this goal, NLNG decided to approach the global market to fund Train 7.  To raise this kind of money is not easy to come by, a development, which may have delayed the project. Added to this, is  that many companies globally are yet to come out of recession, not to talk of providing a bailout for other firms.

    Secondly, getting partners in NLNG to approve Train 7 is another problem facing the project.

    Thirdly, is the issue of building new plants and getting bigger markets that are bigger enough to withstand the capacity of Train 7, is a problem.

    All these things cannot be done in hurry. They need to be carefully carried out. The designs and configurations of the plants need to be done with caution.  The reason is because gas business is a very sensitive one, which requires a lot of patience from the management of NLNG.  So, NLNG needs to take necessary precautions, if its wants to build and sustain a virile gas market.

    These elements are important to the successful implementation of Train 7 or any other projects, and once they are not there, it would be difficult for the owners of NLNG to take Final Investment Decisions (FIDs) on Train 7.

    Often times, many Nigerians blame either the Federal Government or NLNG, for delaying the process of implementing Train 7. The reason is because many do not understand the intricacies involved in providing a vehicle for gas exports, and as a result, erroneously heaps blame on the government for lapses, that may occur in the process of exporting gas abroad.

    How come the gaps between the first six trains and the seventh one that is being implemented by NLNG?

    Permit me to answer your question this way. Life must be taken in its strides, if one would enjoy it. You must learn to handle things systemically. You allow the one you did to mature, before you add another one to it. The same rules are applicable to businesses.  This might be the reason, why NLNG delayed for 12 years before it went ahead with the expansion of its LNG capacity by an additional eight million metric tonnes (MTPA). By this, I’ m talking about 7train, which is  eight million metric tonnes bigger than the Trains 1, 2, 3, 4, 5, 6.( Remember, the six trains have a combined capacity of 22 million metric tonnes of  Liquefied Natural Gas.

    When will Train 7 come to fruition?

    Train 7 will be completed very soon. I have no doubt about that. The reason is because the management of NLNG has taken some positive steps, in this regards. The firm has taken care of some preliminary aspects of the project. For instance, NLNG has signed Letter of Intent (LoI) for Train 7, months ago. By October 31, this year, NLNG will sign the dotted lines in the documents, that are needed for the  Final Investment Destinations (FIDs) to take place on the project.

    What is the capacity of Train 7 project?

    The project is expected to deliver 8mllion metric tonnes of Liquefied Natural Gas. Already, the six trains have a combined capacity of 22million metric tonness of Liquefied Natural Gas. The Train 7, when completed, will increase production to 30million metric tonnes, which  in the long run, would have a multiplier effects on the economy. Apart from providing huge revenues for the government, Train 7 would open a vista of opportunities for operators in the oil and gas value chain. These include providing a forum for synergy, among operators in Nigeria and beyond.

    How many jobs will Train 7 creates for the country?

    The six trains have provided thousands of direct and indirect jobs in the country. Nigerians have acquired skills, following the completion of the six trains’ years ago. Train 7 is expected to create more than 40,000, which is quite a laudable achievement for the country.

    Will the expansion of Liquefied Natural Gas (LNG) Train to 7 bring in other investments into the country?

    Of course, it would open door for more investors in Nigeria. The decision to build Train 7, by the Nigerian Liquefied Natural Gas, is expected to attract $10 billion in foreign direct investment in the next five years.

    How has NLNG  impacted on the nation’s economy?

    NLNG has impacted positively on the economy in many ways. The firm has assisted in boosting the earnings of the Federal Government, by generating revenues in excess of $100 billion for the government between 1989 and 2019, a development, which suggests that NLNG is 30 years old. In addition, NLNG has paid $36 billion dividends to its shareholders during the period.

    Out of this, the Federal Government, through the Nigerian National Petroleum Corporation (NNPC) received the highest dividends, as its owns  49 per cent shares in NLNG, while other partners in the Joint Ventures (JVs) namely Shell, Eni and  Agip shared the remaining dividends.

    How much has NLNG generated from exports?

    I can say precisely the amount of money, which generated from exports of Liquefied Natural Gas (LNG). All I  know is that the  bulk of the company’s revenues comes from exports, especially through the various vehicles or trains that were built by NLNG. For instance NLNG has built trains 1, 2, 3, 4, 5, and 6, while construction of trains seven is underway.

    Who are the buyers of Liquefied Natural Gas (LNG) abroad?

    There is information on the new buyers of Liquefied Natural Gas (LNG). I think the firm has got one or two buyers. I do not know their names, as I got the information from public domain. That is from the media.

    Being a former managing director of NLNG, you should have access to more information about the firm.

    Cuts in That is what you think. But in reality, it is not. I access information from public domain, the same way you get your own.

    How can be done to revive Olokola and Brass Liquefied and Natural Gas (LNG) Limited

    I do not like to talk about the two projects. The reason is that they are sensitive and prone to crises. The Federal Government would like to state its position, which may be contrary to the position, which I and other observers in the Nigerian energy chain is holding. Those two projects enjoyed equity participation from NNPC. The government, I suspect does not want to  make additional investment. These two projects are shaky, while NLNG is not. We just spoke about the issue of establishing NNLG by the government. How many years ago, in which NLNG was set up by the government? 30 years old. That is from 1989 to 1999 and NLNG is still strong.

    But must government continue to waste tax payers’ money, in view of the colossal amount of money invested in Brass and Olokola LNG.

    Well, I do not know how much  was invested in the two projects. Their owners are yet to invest in plants and pipelines, as far as I know. It is only the Brass LNG that has done its engineering works.

    But I do not know the levels the two companies are. I do not know whether we can say the two projects are really wasted, because FIDs have not being done on the two.

    It is at that  point, you  design, select the contractors, you sign agreement to supply gas to the two companies. Those two  projects are not anywhere near that area. We cannot be really say the two projects are abandoned. But obviously, some money must have been spent on the two projects.

    Is there any other way, in which, gas can help grow the nation’s economy?

    There are many ways, in which oil and gas companies can stimulate the growth of the economy.

    Have you heard of Indorama in Rivers State? It was formerly Elemele Petrochemical Company, before NNPC or rather the Federal Government sold its 80 per cent equities to foreign investors. Now, the firm is called Indorama Petrochemical Company. It is a major oil company, which has diversified into production of fertilisers. Recently,  investors brought in S1 billion equities to the firm, with a view help build its plant. Dangote Petrochechemical Refineries is there. The firm is expected to refine 650,000 barrels of crude oil per day, which is a good development for the country.

    Nigeria is experiencing acute power failure, caused by shortage of gas and other infrastructures. What is NLNG doing in this?

    To be honest with you, NLNG’s has limited roles to play in this case.  The reason is because NLNG was set up to export gas, and not to give gas to thermal plants, in order to generate electricity. There are oil firms, assigned to carry out that those functions.

    For instance, Shell is one of them. International Oil Companies (IOC), including Shell is producing gas for the power sector, ditto indigenous oil companies.

    On gas flaring, Nigeria can still use the product to power electricity plants. Some companies flare gas, capture the product and take it to pipelines and from their, send it to the power stations.

    But are there other ways NLNG can meet the needs of the domestic market?

    The firm produces Liquefied Natural Gas (LPG) to ensure that Nigerians use clean and healthy energy sources for growth. In the process of producing liquefied natural gas, NLNG derived what is called Liquefied Petroleum Gas (LPG).The company has helped in reducing in the scarcity of LPG in the market, through prompt supply of the product. Of course, that is another contribution of NLNG to the domestic market; NLNG had in December 2007, dedicated 150,000 metric tonnes to the domestic market yearly and later increased the volumes to 250,000 metric tones in 2013. NLNG is making efforts to ensure that infrastructure bottles, that arise in the course of transporting LPG from Bonny, Rivers State to Lagos is solved. The initiative was part of NLNG‘s commitment to the growth of LPG sub-sector.

  • ‘I’m living my childhood dream as CEO’

    Frank Ewuzie is the CEO of Swank Integrated Concept, a multinational company that produces bulletproof doors. He spoke to SAMSON OTI on why many young Nigerians have been discouraged to contribute to economic growth.

    Can you tell us about yourself and the journey so far?

    I’m Frank Ewuzie, an accomplished Entrepreneur and the Chief Executive Officer (CEO) of Swank Integrated Concept Ltd with expertise in Real Estate Management, Business Development, Manufacturing and Hospitality Industry.

    In 2014, I started this company, which specialises in manufacturing of luxury doors and furniture to fill what I saw as a void in the door and furniture market. I’m also the owner of Swank Supermarket, which quenches the need of varieties of household products.

    What makes you stands out among imported manufacturers in Nigeria?

    I am a Nigerian, I was born and brought up in Nigeria, so I know what it takes to bring imported good into the country and give every citizen the privilege to partake.

    The locally- made doors and the imported are different in so many ways. By touching doors you can feel the real quality and ruggedness, the finishing part of it is great advantage and that’s been the edge over the years. Most local made doors structured are the ideas of the imported doors. I have seen many instances like that but the finishing aspect of it will make the difference.

    Tell us more about bullet-proof doors?

    Bullet proof doors are one of the major parts of our dealings. We have celebrities, politicians, footballers, government officials as well as individuals who have patronised and see the difference. Of course, it is quite expensive and still affordable. But we do it in such a way that everybody will be able to afford it.

    You and I know that insecurity is one of the most challenging problems in Nigeria and lots of people have to secure their lives in one way or the other. We are not limited to some set of people alone. We make our business much open and affordable to everybody in the country.

    Most Nigerians believe so much in security and since our government are not doing enough, people have to ensure they live safely at all cost and that’s why Swank door is affordable. In our company, we try to unfold some secrets whereby the riches and poor will be treated equally and for now most of these high metal doors are not done in Nigeria.

    It’s from our factory from Turkey and that’s where we have been distributing all over the world. We have lots of government agencies as our customers who have tested and trusted the production.

    What inspires you into this business?

    I grew up to hear and know much about Bill Gate as the richest but I always believe there are lots of people locally that are equally rich but don’t have that big name like Bill Gate. Going into business has always been my dream and not only to be a business man but to be a successful business man like various top business mogul in Nigeria and the world as a whole.

    READ ALSO: ‘Banks need good risk controls’

    I derived door business from my father’s house during my secondary school days. It was an initiative that I kept to myself and yielding much for me now. And having travelled to some countries to make some research on how I can hit a breakthrough in the Nigeria market, I went to Turkey to study and monitor lots of things and discovered it was a moment for me to start making process of becoming the boss of myself. And also business man like CEO Dozzy Oil and Gas, Sir Daniel Chukwudozie really inspired me locally.

    Having discovered your business talent during your secondary school days, who are the people that really supported your vision?

    Without mincing words, Emmanuel Emenike, the 2013 AFCON top scorer gave me a limelight to pursue my dream in life. God used him to allow me to hit my breakthrough in my life. He’s a generous man that has contributed to many lives.

    There’s no way I will talk about Swank Integrated Concept without mentioning Emenike. I told him about my proposal. He believed and encouraged me in so many ways.

    What are the challenges of being a CEO?

    There are lots of challenges; the fear of unknown, risk and financial status. I knew from the beginning that it is going to be tough getting to the top but I was adamant. Many people have discouraged me going into the business. I have always known and believed that every successful journey must encounter some obstacles in the way.

    And that’s why I will keep talking about Emmanuel Emenike for what he has done towards this vision. I met Emenike when lots of people are discouraging me and he was bold enough to give me the necessary support and let me be fair to you that Emenike’s support still sustaining me till this moment in terms of recognition and recommendation.

    We have done business with his estate agency (Emmanuel Emenike Real Estate) we delivered some bullet proof doors to some of his building in Owerri, Lagos and Abuja and lots of celebrities have patronised us through him.

    It was a tough journey for me and I will like to advise the younger ones who have the aspiration like me to keep pushing and never be discouraged.

    What should government do to attract business idea into the country?

    Any government who doesn’t care about security or whom insecurity is their major challenge will not attract business internationally. We produce in Turkey and bring to Nigeria and to other African countries and that’s why people take us serious. I think government should be proactive enough about our security issues.

    There are lots of younger Nigerians with great ideals that will benefit the country but they are looking for opportunity to sell the idea outside Nigeria and bring it into the country. Most Nigeria billionaires get discouraged with Nigeria security issues and that’s why they prefer going to Dubai to do business.

    Tell us more about the Peace Ambassador Police Ambassador Award giving to you by Nigeria Police Force?

    They are recognitions for being a true and faithful Nigerian in supporting and promoting peace in the country as well as to encourage people in every part of the country on the issue of security and how to overcome the challenges through enforcement law and order.

     

  • ‘We don’t give loans but finance business’

    The Managing Director of JAIZ Bank Mallam Hassan Usman, Nigeria’s first Islamic non-interest bank had a chat with the reporters on the concept of Islamic banking. Group Business Editor, SIMEON EBULU, reports.

    It’s a bit surprising that you’re just making inroad into Lagos, as a bank?

    By accident of history, we started JAIZ as a regional bank and while we have always had a representative office in Lagos. We were not engaged in this part of the world because the licensing or the franchise of the bank was restricted to two geo-political zones of Northwest and Northeast in the first four years of the operations of the bank. So, we were not very engaged with Lagos, we come in and get out, but basically we were not doing much in Lagos with the business community. This has since changed, we are now a national bank and we have been in Lagos. Reasonably looking at our own size, we already have four branches in very strategic locations of Ikoyi, Awolowo Road, Ikeja and Apapa.

    What’s unique about your bank?

    JAIZ Bank is a non-interest bank, it’s an Islamic bank. The basis of the contract and services that we provide are based on the moral principle derived from the religions, not only Islam, but from all the religions. Islamic religion emphasises more on the avoidance of interest and that’s how it became associated with Islam.

    So, basically I’m trying to put a background as to the simple layman understanding to provide clarity on what we do generally and compare it with what so many banks do. Now you know conventional banking is the business of taking money from surplus entities, transforming their maturity and then providing them to those deficit entities using various kind of pricing which is basically the essence of banking.

    From there, when you come to the Islamic bank, we also use the same process of transforming maturity. We take current account just like any conventional bank would take, we also take deposit that are for tenures which are not just demand deposit. To that extent we are similar. We take these deposits, we don’t just keep them, we take these deposits to finance. We try to avoid the word loan, instead we say we finance business. We use loans technically; it’s not supposed to be a business in Islamic finance. So, we avoid the word loan and rather use the word finance. We take deposit for current account. Here we have some differences, when we take deposit for current account which is demand deposit, you come and take anytime, we have the same type of contract with a conventional bank.

    Conventional banks take all their deposits, whether current or term on the basis of a loan contract. People don’t normally look at what they’re doing with their bank but if you look at the contract, it is a loan you’re giving to the bank and they agree to pay you interest at an agreed rate. Or you give them a loan as a current account, it will be payable on demand without necessarily asking for addition. So these are the two contracts that you have, one is a loan that comes with interest and the other is interest free.

    When we take current account, it is the same, one is a loan to the bank which is free of any return. If you want to make a deposit to the Islamic bank to be renumerated, then you have a different contract from when you’re doing it in a conventional bank. What you do now is to expose that deposit to look like an equity, so you have the bank now like an agent to trade with your money, generate profit and share with you. This is where we start to have differences in the balance sheet of the Islamic bank. You have the current account which is similar to the one in conventional account and we have the term deposit, it is renumerated because it is exposed to the commercial risk.

    When we go to the other side, that is, when we are doing financing, we don’t have various products because we don’t give loans in the traditional sense, but we finance projects, we finance needs and services of our customers based on either a sales contract with a customer with a deferred payment, or a lease contract with a customer to be paid or we sometimes do sharing contract which means we give capital to the customer and then we share his profit.

    How were you able to position Jaiz Bank early to commence business?

    This is where I would like you to understand what JAIZ went through four to five years in its operation. Because it is a new business, the infrastructure to provide for treasury management was not provided by the system for the five years of operation. When you look at the conventional bank, all of the money they generate, they don’t sit. The Central Bank will take the reserve ratio, they’ll keep a little, but most of it will be spent on treasury bills and their contracts immediately pending when they screen their customers and give them. An Islamic bank cannot do this; it has to generate different types of debt instruments, which the central bank ought to have provided through the Debt Management Office when we were starting. We had to keep enough money with us to ensure that we had smooth operation. The conventional banks, they are about 20+ so they have counterparts, so you don’t have to always see that you are self-sufficient in liquidity. If your depositors are taking money, you can take money from your counterparts, you’ll buy money from them and you pay, so you’re always square every day. So that’s what your treasury department would be doing on a daily basis, looking at your needs and making sure that you’re square (foreign exchange needs, withdrawal needs). Imagine that within that period, JAIZ had to be self-sufficient in all of this, that means it is always liquid and always ready to meet it’s customer requirements, those who are getting finance, those who are depositing. The depositors will not give you notice, they just issue cheques or go to ATMs and do whatever they want.

    So, you have to have enough resources and then also keep spare and also keep liquidity ratio and then everything that a bank is expected. If you don’t have treasury bills that is compliant for you to invest, you don’t have a bond that is compliant for you to invest. So, 40 per cent of all the deposit you have will be sitting and renumerated.

    I hope I’m not being too elementary, I know you’re all business correspondents here already enlightened about banking. I just thought that it would be important to start these things and when we go into the presentation we will tell you. So, when we say we are selling, how do we sell. When we say we are leasing, how do we lease. This gives you a full background of how our operations are.

    How is your corporate governance structured?

    In our corporate governance, we are also like every other bank or company. We have shareholders at the top, we also have Board of Directors and we have other staff. In addition, in order to avoid abuse of the process, we have what we call Sharia Arbitration. We have what we call advisory committee of experts, in Islam we call them Sharia board, it offers an advisory function that is not full time, they’re like auditors to clarify the contracts that you enter so that you’re not doing  based on interest on Islamic funds. Internally you have auditors also that review operations in tandem with what we do. This background is to bring you up with how we operate.

    In terms of ATMs, clearing, mobile banking, internet banking, they’re all the same in terms of operations. The contracts are different but the impact of what we do are similar. Where we differ is where our customer that is enjoying financing has difficulty, we have slightly different view of what happens there. Conventionally we have a compounding interest that we know you can continue to compound and a figure that the principal and interest will be more. We don’t have that but we have something that is near that which is put in place not because the bank will benefit from it, but because we want to avoid moral hazards.

    What happens if your customer fails to meet his part of a contract?

    So if we do a facility, for example, to you and you’re supposed to pay one year and you don’t pay your contract from the beginning, or if you don’t pay on time, you’ll be paying the same rate of return that we charged you as charity. So we take this and pay out to charity because it is interest. This is in order not to take advantage of the system because it doesn’t charge. What happens is that if you can show genuine cause  why you can’t pay and you defaulted, this will be weighed by management and an appeal will be made. Otherwise we penalise you by making you support something with social responsibility because that is more useful to the organisation.

    On the Sharia Advisory Board, since we know that the CBN is the regulator for all banks, is there anything the board can do without CBN’s approval and how is the representation?

    The Sharia Board plays an advisory role, it’s like your lawyer advising you on a document. He has to take into consideration the regulation and not only, what the contract says, they also take care of the regulation. Let me tell you the process for approving a product. When you want to do a product, deposit taken side or on the finance side. Any product you want to do, you’ll have to articulate for yourself the features, the base contract, the benefits and all the literature around it and how the accounting will take place. We put it in concept paper, as Management this is what we do.

    For example, we want to do a product for people who want to finance their medicals, we call it Medical Facility Finance or you want to do a mortgage, we put the literature, put in the features of the product, put in that this product is going to be a non interest product, then we pass it to our Sharia unit. This unit is part of the product development, they look at it and make sure it supports and aligns with the mission of the bank. This document is then passed to the Sharia board, they go through it and confirm that it does not breach the jurisprudence, that is, it’s not an interest-based transaction and it’s also meant for the right purpose. For example, we do not support a company known for alcohol production, if you are to do that paper, it will be rejected. Even if it conforms with the rudiments, but because the purpose is wrong, it will be rejected.

    Once they are okay with the process that it’s a sales contract, or it’s a lease contract and not a loan contract, they are okay with that. One of the things they always look at is that the risk is not borne by the customer alone but also the business. We then package it and send to the Central Bank because the Central Bank is the final approval point of all products, whether conventional or Islamic. They will put it in their process, they also have advisers, Sharia advisers that will look at the product that it conforms and that it is not a loan contract that is put in the guise of non interest product. When this is done, they’ll come back and if they have any issue with any of the areas, they make their observation known, we address and return it, they approve. It’s always Central Bank that gives the final approval, the Sharia board is only advisory and they only meet as the need arises.

    Is JAIZ taking advantage of the CBN intervention funds?

    I’m happy to say we have also overcome this although not 100 per cent. We’ve been able to do intervention funds with central bank and we have also been informed that all the other intervention will be made to conform to the contract that is complaint, that is, it’s going to be a sales contract or a lease contract. In this we have made some progress, we have actually made some concessions around this with the central bank. We’ve also been able to do something with the Bank of Industry (BoI). What we did was, we had a meeting with top members of the credit committee of Bank of Industry, did a presentation on how we can identify and intervene with them. So, for the SME funding, we have almost six months disbursing on either sales contract or lease contract from the funds we have taken from Bank of Industry, so there is progress but there are still some of the institutions like NEXIM, Bank of Agriculture and DBN that we are yet to work with in this direction.

    How much has the bank paid to charity?

    The payment to charity, we’ve done significant payment to charity, about N2.3billion