The Nation Newspaper

Category: Industry

  • How govt can boost economy

    The Federal Government has been asked to galvanise the economy with policies that will drive business growth.

    A real estate consultant, Mr Omo Aisagbohi, said things were not moving for now because of the liquidity crunch.

    Speaking at Trinity Mall customer reward show in Ikeja, Lagos, he said the real estate sector was the most affected by the current economic hardship. The dearth of liquidity in the system, he said, was discouraging patronage for personal mortgage ownership.

    Aisagbonhi said: ‘’The real estate sec experiencing tough time because there is no liquidity. People are merely trying to survive and those who have money are careful about spending. Generally we are struggling to remain in business as things have gone worse. If not for banks that help us, maintaining our equipment have become more expensive.

    “We expected that the first few months of the administration will make things better. But I don’t think our sector is growing in particular. One must first be well before thinking of owning a house. My fear is that government is discouraging hardworking Nigerians from owning their houses.”

    He explained that challenges, such as multiple taxation, general import policies and difficulty in accessing Foreign Exchange (forex), among others, have prevented the sector from providing affordable housing to Nigerians.

    He said the implication was that it encouraged smuggling of goods and services into the country while stimulating the economy of neighbouring countries.

    The property expert noted, however, that those who make the harsh policies are not aware of the damages they are doing to the economy. He said they are enriching other countries as they smuggle those goods in.

    While stressing the need for the government to rethink its policies in order to stimulate the economy, Aisagbonhi emphasised that the government should be less concerned with the provision of housing, but focus on creating the enabling environment for private sector operators to thrive.

  • ‘Human resource managers should drive productivity’

    Human Resource Managers in key sectors of the economy should help drive businesses in their organisations, President, Managerial School of Excellence (MSE), Leke Olufade, has said.

    Speaking at the MSE quarterly dialogue in Lagos, with the theme: ‘CEO: What do they want from HR function” he said the reason mostchief executive officers (CEOs) underplay the function of human resource managers (HRMs) and consider their role as second rated support services, was because many of the managers lack the capacity to demonstrate productivity.

    He explained that aside motivating their workforce and urging them to abide by regulatory guidelines, the managers should alongside their CEOs drive productivity and company’s profitability.

    According to him, having a broad understanding of the CEOs’ goal is key to working in line with them. “What CEOs want is enthusiasm for the business, not turf protection. They want you to initiate ideas that can make the company productive; they want strong presence among executive team and talent management. They want to know the next generation of managers and executives and how they are being developed,” he said.

    Olufade also said CEOs expect HRMs to have a second knowledge of what can advance the productivity of a company, a well-executed HR strategy and efficient cooperate infrastructure to increase employee commitment and capability, design a behooving organisational reward and above all, integrity.

    To successfully deliver on these goods, Olufade advised managers to take cognizance of their CEOs ‘wants and harness  resources needed to solve their company’s problems.  Stressing that HRMs must constantly endeavor to invest in personal capacity expansion through extensive training in other relevant fields, he said: “Business is more global than before so it makes sense that CEOs want an HRM with an international outlook; a person who has lived in different markets.”

    Advocating a proper repositioning of the HR duty, former Divisional Managing Director, UAC, Nelson Suulola said as a business manager, the HR must understand the company’s business strategy, the underlying cost structures and how the information is derived.

    He agreed that the future of human resource management transcends how it’s being practised as there are still hurdles to cross.

    The dialogue added that CEOs measure the level of HRD success on the basis of extant working process, performance management system, disciplinary system, quantifiable outcomes, and qualitative outcomes in terms of credibility of mangers as administration enablers.

  • Economist charts course for Africa’s development

    To develop Africa’s economies, the continent’s traders must embrace the real sector, a development economist, Mr Hasvoon Chang, has said.

    According to him, the manufacturing industry’s interconnection with other industries and its capacity to boost complementary industries makes it key.

    Chang spoke at the Second Annual Adebayo Adedeji Lecture during the Africa Development Week at the Economic Commission for Africa (ECA) headquarters in Addis Ababa, the Ethiopian capital.

    He warned against neglecting exports as “economic development requires export success”.

    Chang, known for his refreshing ideas on development theories, noted that although several ways to development and industrialisation exist, “Countries can decide their development path. Countries become good at things because they want to excel at making those particular things.”

    Citing South Korea  an industrialisation success, Chang declared that history is replete with examples of countries forging a different path than the one they were advised to follow by international institutions.

    “Most developed economies have succeeded in growing their economies because of the infant industry,” Chang argued, pointing out that the strategy of this policy is to develop skills and protect the domestic market until such a time they can be mature.

    He said: “Infant industry protection creates the ‘space’ for improvement in productive capabilities, but does not automatically lead to productivity increase.” Chang explained that countries make the common error of not investing in productivity growth such as machines, research & development and skills.’’

    Noting that countries often fail to upgrade or add value to their products, the Development Economist declared that in order not to lose the benefits made from initial investments in industrialisation, countries must upgrade their industries and create their own value chains to be globally competitive.

    For African economies to develop, Chang believes that countries can utilise a strategic combination of an export-based economy and an infant industry. He thinks that the shrinking policy space, which states often bemoan, has not made industrial policy impossible to use.

    ECA Executive Secretary Mr. Carlos Lopes explained that much of ECA’s inspiration on work on industrialisation comes from Dr. Chang.

    “He (Chang) provides an excellent mix of history and economics by bringing to us the experience other countries have gone through in their development experience,

  • Women entrepreneurs advised on job creation  

    Alldens Lane, a business advisory and consulting firm with a  focus on supporting women-owned enterprises, has urged  women entrepreneurs to embrace the strategic position of job creation.

    Founder and Principal of Alldens Lane,  Ruka Sanusi, quoting Forbes Insight report,said that today’s young and emerging business leaders  will ultimately create responsive African solutions to Africa’s critical economic and social challenges.

    According to the study, Nigeria stands out among the Sub-Saharan countries surveyed by Forbes Insights in that it has the highest number of young people wanting to be entrepreneurs. Nigeria-specific case studies reveal that, when asked about what the top drivers of job creation for young people will be over the next five years, 40 per cent of respondents pointed to entrepreneurship and SMEs, she stated.

    On the question of the entities that will create the most jobs for young people over the next five years in Nigeria,  she said: “ From surveys, while 56 per cent  pointed to government, public and social sector, a significant 51 per cent  said it would be entrepreneurs and business owners who would make a difference in people’s lives by providing employment”. She added that women’s entrepreneurs’ role in advancing the economy, creating and offering jobs would be a key driver of economic growth. She agreed with Ernst and Young’s report on how women-owned businesses can recharge the global economy. It will be recalled the report states that to help women-owned businesses grow and create jobs, there needs to be a deliberate improvement in their access to capital, the global supply chain and business networks, all of which can help them scale. The report also states that data from The World Bank, The World Economic Forum and other organisations continue to demonstrate that women-owned businesses can be the tipping point for a global economic comeback.

    Ms. Sanusi added, “Running a business successfully needs focused, deliberate leadership and women entrepreneurs and CEOs can lead the way in that regard through purposeful and transformational leadership”.

    She added that her firm had  a unique focus on providing women-owned and women-led enterprises with advisory support, business direction, and thought provoking business performance and growth analytics, from which they can grow and transform their businesses and  lives.

  • ‘Dearth of capital crippling businesses’

    Businesses in Africa are being stifled by lack of capital, the United Kingdom’s development finance institution (CDC) has  said.

    It noted that though many African businesses have great potential to thrive, create employment and impact on their countries’development, they are being held back by their  inability to attract long-term capital.

    According to its Regional Director for Africa, Imoni Akpofure, who spoke at an investment workshop for reporters in Lagos, businesses become distress as  commercial investors perceive the region as unstable politically.

    She said as part of the institution’s core mandate to bridge the financing gap, CDC has committed huge capital investments in priority sectors of agribusiness, construction, education, financial institutions, health infrastructure and manufacturing to propel sustainable economic growth as well as significant job creation.

    “We apply high-quality commercial investment processes because if the businesses we invest in are not commercially viable with strong financial outcomes, the jobs they create today will be gone tomorrow. We also understand that it takes more than money to build a great business, so we invest our time and expertise  to help the businesses we invest in to improve their management of environmental matters, relations with their workforce and stakeholders and with society at large,” she said.

    On the import of private equity investment to business growth, the Investment Manager, Mr. Gozie Chigbue, said partnership with business owners when investing ensures judicious channeling of resources.

    He said investors should subject their targets to certain prerequisites, especially long-term viability before committing capital. According to him, the seven phases of investment are sourcing, screening, due diligence, financial recommendation, closing and monitoring.

    “You start by funding the right company and finding the right opportunities. You have to make sure you understand the market intently and spend time to talk to the right people involved to avoid uniformed investment in fragile sectors. For us at CDC, the point of investing is not just to make profit but to also create jobs.

    “We invest both directly into businesses and indirectly through private equity to fund managers who we carefully asses the redevelopment impact of their proposals. We take a flexible approach; taking care to match the investment instrument to the specific needs of each business. We are also able to provide a mix of equity, loans and mezzanine finance,” Gozie said.

    CDC since 1948 has invested across spectrums of over 100 industries and sectors in Nigeria such as Azura Power, Indorama Eleme Petrochemicals Company, ECOM Agroindustrials, Swift Networks and Synergy Fund, according to the Environmental and Social Responsibility Director, Mr. Mark Eckstein. He emphasized that beyond making profit, CDC was committed to establishing strong working relationship with host communities of partners. He said: “for instance, Petrochemical and Fertilizer industry, Indorama has since, with the backing of CDC and others made significant improvements including increasing production. Some of the greatest strides have been made in raising environmental and social standards which has been critical in maintaining good relations with the local community in the Niger Delta.”

  • Ohuabunwa urges managers to embrace ethics

    Former Chairman/CEO, Pfizer West Africa Mazi Sam Ohuabunwa has urged managers to imbibe ethical values in their workplaces.

    Speaking at Nosak Group’s retreat for its workers in Lagos, Ohuabunwa, who was guest speaker, said: “Value is essential for business growth because it ensures that the consumer is well protected in terms of genuineness of the product he is buying. Therefore, total quality management principle must be adhered to at all times in the production lines.’’

    The theme of the retreat, which was attended by over 30 managers and departmental heads, was  “Turn and accelerate: from stability to leadership”. It was facilitated by Vital Solutions Consult Incorporated.

    Nosak Group’s Chairman, Dr. Toni Ogunbor said training is the bedrock of corporate success.

    Ogunbor, who led a session on ‘The state of the company and trends in the Nigerian economy,’ said it is a global and well known ýpractice for businesses to go on retreats where various issues affecting their businesses are analysed and remedied for future growth.

    He announced the newest baby in the Group, Nosak Farm Produce Limited, which he said, is a premier manufacturing company that provides over 300 direct and indirect jobs, and ranks as one of the top vegetable oil refiners in the country.

    Ogunbor said: “With a capacity of 200 tonnes per day and a farm size of approximately 800 hectares, the company is set to acquire an additional 20, 000 hectares in Edo State for backward integration and further increase its refining capacity in 2016″.

    He said this measure was aimed at creating more jobs and export opportunities for the country, in tamdem with the Federal Government’s policy.

    Ogunbor praised the organisers and participants of the retreat, affirming that the event was outstanding and the results would help to enhance staff performance and position the company for growth and leadership in the business environment in Nigeria and West Africa.

  • Budget 2016 ‘ll stimulate economy, say LCCI, MAN

    Budget 2016 ‘ll stimulate economy, say LCCI, MAN

    The Organised Private Sector (OPS) is excited about the N6.06 trillion budget for this fiscal year.

    The Lagos Chambers of Commerce and Industry (LCCI) and the Manufacturers Association of Nigeria (MAN) said the budget would stimulate the economy.

    LCCI Director-General Muda Yusuf said the budget’s size  and its reflationary character would have a stimulating effect on the economy.

    He said it is what the economy needs at this time, considering the economic slowdown of 2.1 per cent in Gross Domestic Product (GDP) growth from about four per cent a year ago, rise in unemployment and slow down in industrial activities.

    The LCCI chief praised the budget for giving priority to infrastructure as well as security, noting that it is a step in the right direction given the huge infrastructure deficit in the country and having regard to the security challenges in some parts of the country, particularly the northeast.

    Yusuf, however, said the budget’s debt service provision of N1.5 trillion is a cause for serious concern. According to him, it shows that Nigeria is operating a debt profile that is not sustainable.

    “This amount is about 35 per cent of revenue, which has already exceeded the global threshold for debt sustainability,” he pointed out.

    The LCCI chief added that although debt service is an obligation over which the nation has very little choice, the lesson is that Nigeria needs to review her debt management strategy to reduce the burden of debt services her finances.  “The opportunity cost of current debit service provision for the economy is very high,” he said.

    Yusuf however, identified the drop in oil revenue as a contributory factor to the high deficit in the budget. He said the immediate implication is that the level of borrowing domestically and externally has increased, and this also has implications for debt service burden.

    He maintained that due to increased borrowing, the impact of the reduction in oil revenue has been mitigated.

    While commending the expected increase in efficiency and reduction in leakages in the management of government finances, the LCCI boss observed that the introduction of the Treasury Single Account (TSA) has also boosted government revenues. He expressed hope that the conglomeration of the targeted policies of government will make up for the shortfall in oil revenue.

    His words: “There is need for an appropriate economic policy framework that could inspire investors’ confidence. Private capital is crucial to the progress and diversification of the economy.  Only the right mix of policies would make this happen.

    “There is a need to urgently address the policy shortcomings in the foreign exchange management; undertake urgent reforms in the petroleum downstream sector; review existing trade policies and promote investment friendly tax policy.”

    Also, the President, Manufacturers Association of Nigeria (MAN), Dr. Frank Udemba Jacobs, said the budget would make appreciable impact on the economy if thoroughly implemented. He also commended the huge allocation made to infrastructure. According to him, poor infrastructure remained the bane of the economic development of the country, as the private sector has remained uncompetitive.

    On the allocation to the Ministry of Industry, Trade and Investment, the MAN president said the figure is adequate, adding that what they do is trade promotions, exhibitions and nothing more.

    Dr. Jacobs however, said the removal or reduction of N17 billion by the National Assembly did not make any appreciable difference. The approved N6.06 trillion budget for 2016 was an increase over last year’s N5trillion budget. Under the current dispensation, government budgeted a total of N1.36 trillion to debt servicing while allocating over N16, 296,622,303 billion to the Ministry of Industry, Trade and Investment.

  • Heritage bank boosts SMEs with N500m grant

    Heritage bank boosts SMEs with N500m grant

    Heritage Bank Limited on Thursday launched a N500 million Young Entrepreneurs and Students (YES) Grant to boost small industries. The initiative, which is in partnership with the Nigerian Youth Professional Forum (NYPF), will, according to the bank, support students and young entrepreneurs toward socio-economic freedom.

    The Managing Director, Heritage Bank, Mr. Ifie Sekibo, in his remarks at the occasion in Lagos, explained that the bank’s support for the programme arose from the fact that the initiative aligned with the bank’s vision to help create, preserve and transfer wealth across generations.

    The Managing Director, who was represented by the bank’s Group Head, Market Strategy, Mr. Obioma Emenike, added that the bank will also support the project in terms of training the beneficiaries, disbursement of the grant as well as in the monitoring and evaluation of the project’s milestones as agreed with the beneficiaries.

    “We have been playing strongly in the education and Small and Medium Scale Enterprises (SMEs) sectors of the economy. This project syncs with our mission and vision as a bank. The age bracket of 18 to 40 years for the beneficiaries also aligns with our corporate goal, just like the key sectors which include agriculture, ICT and creative industry, identified for the project are pivotal for economic growth” he said.

    The NYPF, according to its Chairman, Mr. Moses Siasia, is a non-governmental organisation conceived by a group of young professionals with the mission to promote innovative ideas for socio-economic development.

    Siasia said the programme is geared towards assisting both aspiring and existing young entrepreneurs to start and grow their businesses, and ultimately create jobs and distribute wealth in the economy.

    For the students, the grant can be accessed for tuition fees to help low income students and technological research and innovation.  Students in Nigeria can access up to N500, 000 only. Students in the United Kingdom can access up to 3000 pounds, while those in the US can access up to $5,000.

    For young entrepreneurs, the grant will be available for the following target sectors: agriculture, creative industry, Information and Communication Technology (ICT).  In each category, an entrepreneur with an existing business can access up to N2 million.

    Before the latest initiative, Heritage Bank had packaged a N200m loan facility for young graduates willing to advance their dreams in small-scale businesses. It is also collaborating with the Central Bank of Nigeria (CBN) and the National Youth Service Corps (NYSC) in the CBN initiative, Youth Innovation Entrepreneurship Development Programme (YIEDP).

  • Implement AU’s recommendation on health, agric, govts told

    The Civil Society Legislative Advocacy Centre (CISLAC), a Non-Governmental Organisation (NGO), has urged governments to implement the African Union (AU) recommended 15 per cent budgetary allocation to health and agriculture sectors.

    Its Senior Programme Officer, Mr. Okeke Anya, spoke in Keffi, the Nasarawa State capital, during a Northcentral Media Roundtable.

    He said if governments complied with the AU standard in allocation of funds to the two sectors, it would not only boost the health status of the people but also reduce unemployment and food shortages.

    “Our mission is to strengthen the link between civil society and the legislature through advocacy and capacity building for civil society groups and policy makers on legislative processes and governance issues to ensure good governance.

    “The aim of this parley was to engage the media on the need to sensitise governments at all levels and Nigerians at large to comply and implement African Union standard of 15 per cent total budget allocation of funds to health and agriculture sectors in the interest of development,” Anya explained.

    He said it was unfortunate that from 2012 to last year, the allocation of funds to the sectors had nosedived.

    “For example, in 2012 budget, N280 billion was allocated to the health sector, while in 2013, 2014 and 2015 budget only N278 billion, N260 billion and N255 billion, was allocated to the health sector, and this show a decrease in allocation of funds to the health sector every year in Nigeria,” he said.

    The Programme Officer of the Centre, Austin Erameh said: “The forum was intended to stimulate citizens’ interaction and awareness on key performance of government against democratic principles that include economic, social, civil and political policy standard.”

  • New recruitment guidelines for MDAs coming

    A new policy on recruitments in Ministries, Departments and Agencies (MDAs) is in the offing, the Director-General, Bureau of Public Service Reforms (BPSR), Dr  Joe Abah, has said.

    Speaking in Abuja, he said the agency would work with the Office of the Head of the Civil Service of the Federation to implement the policy, aimed at preventing MDAs from employing beyond their budget.

    “We are, similarly, working with the office of the Head of Service to put a manpower budget defence, which means you cannot recruit unless you have the manpower provided for in your budget. So, people will have to come to the office of the head of service to defend their manpower budgets before they are allowed to recruit,” he explained.

    According to Abah, the guidelines will help tackle improper recruitment in agencies, such as employment racketeering, bloated work force and ghost workers.

    He said a committee had also been set up to look into the implementation of the Oronsaye Report.

    The BPSR chief stated that the Secretary to the Government of the Federation (SGF) recently approved the re-constitution of the implementation committee that would start work later this month. “You will be aware that the Oronsaye Report includes a management and staff audit recruitment of some parastatals and agencies.

    “The BPSR recently published a guide on how to properly manage agencies and parastatals. And that includes the performance improvement tool that agencies can use to make sure that their performance meet the needs of Nigerians going forward,’’ Abah added.

    He said the implementation of the Oronsaye Report would address most of the issues faced in MDAs.