The Nation Newspaper

Category: Industry

  • Tourism contributes $7.2t to global economy

    The tourism industry contributed over 7.2 trillion in Gross Domestic Product (GDP) to the global economy, a report by the World Travel and Tourism Council (WTTC) has stated.

    Its President David Scowsill in a statement said tourism added 7.2 million jobs to the global economy.

    Scowsill, in the report, titled: ‘The economic impact report,’ which is WTTC’s flagship yearly research, stated that the document provided economic data on the contribution of the tourism sector on a global level.

    The report said: “In spite of uncertainty in the global economy and specific challenges to tourism in 2015, the sector grew by 3.7 per cent, contributing a total of 9.8 per cent to the global GDP.’’

    Travel supported 284 million jobs last year, an increase of 7.2 million, one in 11 jobs on the planet.

    The WTTC chief said though terror attacks, disease outbreaks, currency fluctuations and geopolitical challenges have impacted the sector at a country or regional level, tourism at the global level continues to produce another robust performance.

    He said travel contribution to GDP  outpaced overall GDP country growth in 127 of the 184 countries covered by the research.

    He listed the countries where tourism most markedly outperformed the wider economy last year to include Iceland, Japan, Mexico, New Zealand, Qatar, Saudi Arabia, Thailand and Uganda.

    According to Scowsill, the sector’s growth was stimulated by a worldwide increase in middle-class income households, an ageing population, which tended to travel more, making travel more accessible and affordable.

    The report however, said all regions of the world showed growth in total tourism contribution to GDP in 2015, adding that South-East Asia was the fastest growing region with growth of 7.9 per cent followed by South Asia, which grew 7.4 per cent.

    “In 2016, tourism’s total contribution to GDP is forecast to grow by 3.5 per cent, and is again expected to outpace global economic growth for the sixth consecutive year. Security concerns, border policies, oil prices, the strength of the U.S. dollar relative to other currencies, and other macroeconomic developments will continue to influence travel trends in 2016 and beyond,” the report stated.

    It, however, projected that over the next decade, tourism is expected to continue to outpace the world economy, growing by four per cent on average yearly.

  • Brazil-Africa institute woos Nigeria

    The President, Institute of Brazil-Africa, Prof. Bosco Monte, has advised Nigeria to  tap from its partnership with the Brazilian Government.

    He told the News Agency of Nigeria (NAN) at the Brazilian Consulate-General in Lagos, that the two countries no longer needed cooperation, but partnerships that Brazil could offer Nigeria.

    The institute’s President said he was in the country to invite the goverment to the Fourth Brazil-Africa Forum with the theme ‘Strategies for development in Brazil and Africa’.

    He said if Nigeria is isolated from Brazil, the later would not know of the various opportunities that abound in Africa.

    “Nigeria and Brazil no longer need cooperation, but long-term partnerships. So, it is about time that we replaced cooperation with partnerships. Partnership between us will make our relations work. The Nigerian Government needs to have contacts with the Brazilian Government to see what possibilities the later can offer,” Monte said.

    He expressed confidence that Nigeria and Brazil have so much to do together in areas of agriculture, technology, research and business relations, in the years ahead.

    While maintaining that his country had a lot of possibilities for Nigeria, he urged Nigeria to present her areas of needs to the Brazilian Government.

    Monte said he was travelling to various African countries to discuss Brazil’s opportunities with them, as well as the need for them to partner with Brazil.

    He said the Forum, scheduled to hold in Brazil, was meant to enhance dialogue between leaders from Africa and Brazil, with a view to developing their agricultural potential.

    He said the forum would be attended by ministers, diplomats, government officials, businessmen and researchers from African countries and Brazil.

    Brazil, the largest sovereign state in Latin America, is the world’s fifth-largest country by geographical area and population.

    It is a regional power in Latin America, a founding member of the United Nations and it has been identified as an emerging global power. Brazil is also one of the world’s major breadbaskets and the world’s largest producer of coffee.

     

  • ALSCON to begin production

    ALSCON to begin production

    The embattled Aluminium Smelter Company of Nigeria (ALSCON) in Akwa Ibom State is to begin production soon, its Managing Director, Mr. Dimitry Zavyalov, has said.

    He said this while briefing the Clan Head of Ikpa Ibekwe, Etebom Akpan Akpan and his council in Ikot Abasi. He said the company would bounce back, irrespective of the difficult period it is facing.

    “The Management of  UC-RUSAL Aluminium Smelter Company of Nigeria (ALSCON), the new owners of ALSCON, will not relent in exploring available possibilities with appropriate authorities for ALSCON to come back to life,’’ he said

    He stressed the importance of aluminium and the technicalities involved. He said the production of aluminium products required professionals.

    Zavyalov, however, said only committed workers would be re-absorbed when the company resumed production. He said the management had taken steps that would yield positive results for the company and the host community when production starts.

    He said negotiation for connection of the national grid to ALSCON was in progress. He reiterated the Transmission Company of Nigeria (TCN’s) commitment to completing work on schedule.

    Akpan thanked Zavyalov for the visit and for relating with the host community. He expressed displeasure over the challenges facing the company, saying that the community was worried about the situation in ALSCON.

    Akpan said the community was proud to be associated with the Management of ALSCON especially for working in close consent with the appropriate authorities as well as carrying the community along towards the resuscitation of ALSCON.

  • Chamber seeks stronger Slovenia-Nigeria trade ties

    The Slovenia–Nigeria Chamber of Commerce (SNCC) has said it is in Nigeria to explore opportunities of increasing the trade volumes of both countries.

    Its President, Mr. Fred Uduma, said although the trade volume between Slovenia and Nigeria stood at 10.2 million Euros in 2014, it reduced to eight million between January and June, last year.

    Uduma, who made this known in Abuja on Monday, said its activities in Nigeria would help create jobs. “This trade mission is designed to introduce the country and its potential to the Nigerian business community, to the Nigerian community and then to attract Slovenian investors to Nigeria,” he said.

    In doing this, the chamber would create jobs, bring technology and also increase the trade volume between both countries.

    “The trade volume is basically nothing to talk about in terms of the opportunities that exist in the Nigerian economy. Slovenia is a technologically advanced country. They have everything Nigeria needs and Nigeria has all the opportunities,” he said, asking, “So, what is hindering the two countries from engaging themselves in exploring the opportunities that exist in between them?”

    He said the trade mission was all about bringing the information about Nigeria to Slovenia and Slovenia’s to Nigeria. He said if the chamber was able to achieve some kind of bilateral relations, then the trade volume would increase. He also said the reduction indicated that the vast trade opportunities between the two countries were not being explored.

    Uduma said the SNCC was populated by accomplished business people and internationally-renowned companies providing expertise in Information Communication Technology (ICT), engineering, mining, manufacturing and pharmaceutical sectors.

    He said because Slovenia was at the centre of the European market, it had become a business destination for Nigerian entrepreneurs. Uduma added that the country had also built a business reputation with more than 500 million consumers of its numerous products world-wide.

  • LCCI, PwC identify priority sectors for diversification

    LCCI, PwC identify priority sectors for diversification

    Experts have advised the Federal Government to give priority to four sectors – agriculture, petroleum (petrochemical and refining), retail and Information and Communications Technology (ICT) – in its  efforts at weaning the economy off its over-dependence on oil.

    At a stakeholders’ forum in Lagos on the state of the economy, experts noted that the sectors have the most dominant transmission links to the economy.

    “These sectors in the medium-to-long term are key to boosting other sectors like manufacturing,” Country and Regional Senior Partner, PwC Nigeria and West Africa, Mr. Uyi Akpata, said.

    The theme of the forum was “Nigeria: Looking beyond oil”

    At the event organised by the Lagos Chamber of Commerce and Industry (LCCI) in collaboration with PwC Nigeria, Akpata said the need to target the agric sector, for instance, was because of its forward linkages to agro-processing and other services, such as logistics as well as backward integration to input supply sectors, which could improve farm incomes, increase employment and improve domestic food security.

    He projected that, potentially, Nigeria’s global agriculture exports could take-off at a rate similar to Brazil’s, with $59 billion in export revenues by 2030.

    The senior partner of the leading consulting firm also said value added to oil and gas output needs to urgently improve by implementing diversification within the sector. According to him, this requires investments across the downstream sector to develop petrochemicals, fertilisers, methanol and refining, industries relevant in both industrial and consumer products, which Nigeria imports.

    Similarly, the retail sector, he said, holds promises. While pointing out that consumer spending is the largest driver of the economy, accounting for about 70 per cent of Gross Domestic Product (GDP), he said the firm expects that this will be the boost for the retail sector growth even as population continues to expand.

    “Thus, as incomes rise along with rapid urbanisation, we project that household consumption expenditure could reach $1.1 trillion by 2030, from $317 billion in 2014, which implies a growth of nine per cent through 2030,” he said.

    Also, with Nigeria’s teledensity at 107.87, a large population of young urban people and massive scope to improve Internet broadband penetration, the expert projected that Nigeria is likely to see accelerated growth of its digital economy. He said more importantly, the opportunity to leverage technology to generate improved social and economic outcomes across other sectors has been created.

    Mr. Akpata said Nigeria is the largest economy in Africa and 22nd globally. “We project that the economy could rise through the world rankings to top 10 in 2050 with a projected GDP of $6.4 trillion, surpassing Germany, the United Kingdom, France and Saudi Arabia,” he said.

    He, however, said to achieve this diversification of the economic from its over dependence on crude oil is required. “Nigeria’s intrinsic potential lies beyond oil; harnessing this potential has become an imperative given the expectations of lower oil prices,” he stated.

    LCCI President, Chief Nike Akande, could not agree less. Describing the stakeholders’ forum as “strategic, timely and significant”, she said “it was an opportunity to discuss and to pool our wisdom together regarding how our country can navigate the lingering economic challenges and proffer alternative paths towards sustainable economic growth and development.”

    According to her, the sustained decline in global oil prices since 2014 has put the nation in difficult position and consequently led to various fiscal and economic challenges such as the drop in foreign earnings, decline in foreign reserves, huge financial bailout for some state governments and unstable macroeconomic environment.

    Mrs. Akande said a holistic and sustainable economic diversification strategy is desirable and in fact, inevitable at this time. “We need to put an end to the high dependence on oil. Strategic decisions and policies that will put the Nigerian economy on a path of sustainable recovery have become imperative.

    “Without doubt we need to pay greater attention to manufacturing, agriculture and agro allied industries, solid minerals, ICT, entertainment, tourism and many other areas in the non-oil sector,” she added.

    Vice President Yemi Osinbajo, said the topic of the forum was in line with President Muhammadu  Buhari administration’s determination to boost economic growth through effective policies.

    He said the administration was already making important strides to actualise the administration’s commitment in delivering the change agenda.

    “Indeed, we are repositioning the economy for exclusive growth and successful development by getting the fundamentals right be it fiscal, monetary, trade and investment policy reform,” the Vice President said.

    Osinbajo, who was represented by a Senior Special Assistant, Dr. Jumoke Oduwole, added that the administration remained committed to diversifying the economy away from over-dependence on oil and creating an enabling environment that will aid private sectors set goals and development.

    “We are investing in critical infrastructure, embracing and encouraging the private sector and advocating for greater inclusion particularly through job creation. To attain this, our administration is prioritising key areas such as industrialisation, agriculture and agro-allied processing and solid minerals. We are determined to diversify this economy through export promotion, our support in promoting local raw materials and pressing needs for made in Nigeria goods,” the Vice President said.

  • Kigali Forum to accelerate Africa’s economic transformation

    Recent events in the global economy have made it urgent  for Africa to transform its economy.

    This was the message from the President of the African Centre for Economic Transformation (ACET), K. Y. Amoako, who was addressing delegates at the inaugural African Transformation Forum (ATF) in Kigali.

    Amoako said: “The sharp fall in commodity prices or the slowing of the Chinese economy has once again shown how vulnerable most African economies remain to external factors outside their control.”

    He was joined by Rwanda’s Minister for Finance and Economic Development, Claver Gatete and the Executive Secretary of the Economic Commission for Africa (ECA), Carlos Lopes in the opening session.

    Amoako said since ACET started its work in 2008, “a remarkable consensus has formed, both within and outside Africa, that economic transformation holds the key to sustained growth and prosperity”.

    He said this had been endorsed by the African Union, the African Development Bank, the ECA and the African Heads of State and Governments at their summit last year.

    “Our work will not end here…We are not here to talk… we are here to act. We are here to accelerate economic transformation,” he said.

    Speaking of his country’s advance in economic growth, Amako said Rwanda’s Vision 2020 envisages a country transformed in all aspects of the economy and the society moving towards a middle income country by 2020.

    He added that at 47 per cent, services had overtaken agriculture’s 33 per cent in Gross Domestic Product (GDP) figures. Besides, growth had been inclusive, with a corresponding reduction of poverty.

    “Our belief in and commitment to an African-led, collaborative and cross-stakeholder movement towards transformation is the reason why we have partnered with ACET to co-host this forum’’, he stated.

    ECA Executive Secretary, Lopes, said though Africa had experienced unprecedented growth over the past decade and had been remarkably resilient to the global economic crisis, its economic performance had not created enough jobs.

    “The continent remains home to the world’s highest proportion of poor people. Furthermore, African economic growth has proven vulnerable to volatility in commodity prices, demand and perception fragility,” he added.

    He however, said Africa, as a latecomer, has the privilege to learn from others’ experience.

  • ‘Nigeria’s spirits market worth $2b’

    • Local spirits dominate with 75%

    Nigeria’s spirits market is worth $2 billion and it is increasing at six per cent average yearly, a report by the Global Agricultural Information Network (GAIN) has said.

    While imported spirits account for  $500 million, local spirits dominate the sector with 75 per cent share as they are cheaper than the imported brands, it added.

    The report, however, said imported spirits of various classifications, including the international brands, continue to have preference among Nigeria’s growing young and educated middle class. The report obtained by The Nation, contains assessments of commodity and trade issues made by United States Department of Agriculture (USDA).

    According to the report, which was prepared by GAIN’s Marcela Rondon and Uche Nzeka, Nigeria’s 160 million people provide a large market for alcoholic beverages worth more than $6.5billion. It said while spirits consumption constitutes about 30 per cent of the market, beer and wine share 55 per cent and 15 per cent.

    Although the GAIN report noted that local spirits lead the market, they, however, do not meet the standards of the increasing high- and middle- class consumers preferred premium brands.

    “Market opportunity is here for those prepared to take advantage of the growing consumption of premium brands,” the report added.

    According to Rondon and Nzeka, Nigeria’s rising middle class and the emerging young consumers are adopting consumption patterns similar to Western countries and are increasingly developing preferences for premium imported brands.

    “The country’s increasing urbanisation and the rising number of female alcohol drinkers, especially in the large cities, such as Lagos, Port Harcourt, and Abuja, is also resulting in a remarkable switch from consumption of relatively inexpensive local spirits to higher priced imported ones,” they noted.

    Pointing out that the European Union (EU) and South Africa are the leading suppliers to the market, the experts however, stated that spirits from Russia, Mexico, United States, Brazil, Canada, etc. are also visible in traditional open markets, grocery stores, and super market shelves.

    The GAIN report further noted that within the imported spirits, Diageo leads by 25 per cent in the rum segment, Pernod Ricard controls the market for vodka and brandy by approximately 26 per cent and 41 per cent, respectively; Davide Campari-Milano S.p.A has 10-15 per cent control of the market share in the liqueurs category, LVMH leads in the super-premium and premium classifications (especially cognac) by average 27 per cent.

    It listed major players and leading brands in Nigeria’s spirits market to include Diageo (UK) Johnnie Walker, Smirnoff vodka, Johnnie Walker and J&B whiskey, Gordon’s and Gilbey’s gin, and Baileys liqueurs, Crown Royal, Buchanan’s, Windsor and Bushmills whiskies, Cîroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray, others.

    Davide Campari-Milano S.p.A (Italy): Campari, SKYY Vodka, Wild Turkey, Cynar, Aperol, CampariSoda, Glen Grant, Ouzo 12, Zedda Piras, Dreher, Old Eight, Drury’s, Mondoro, Riccadonna, Sella & Mosca, Teruzzi & Puthod, Crodino, Lemonsoda, Cinzano, Campari Mixx, Aperol Soda, Biancosarti, Barbieri, Enrico Serafino, Oransoda e Pelmosoda, and Cabo Wabo. Aperol, Cabo Wabo, GlenGrant, Ouzo 12, Mondoro, Riccadonna and Liebfraumilch, etc

    From Pernod Ricard (France) comes barnds such as Whiskeys- Aberlour Scotch Whisky,  Ballantine’s Scotch Whisky, Chivas Regal Scotch Whisky, Jameson Irish Whiskey, Longmorn Scotch Whisky, Midleton Irish Whiskey, Paddy Irish Whiskey, Powers Irish Whiskey, Redbreast Irish Whiskey, Scapa Single Malt Scotch Whisky Strathisla Scotch Whisky, The Glenlivet Single Malt Scotch Whisky, Tormore Single Malt Scotch Whisky.

  • Viju restates commitment to quality

    Viju Industries Nigeria Limited will continue to emphasise quality in  its products,  the Special Assistant to the Chairman, Viju industries Nigeria Ltd., Mr. Tom Hu, has said.

    He spoke at the awards for distributors in Lagos.

    He said: “We have been in the right part for milk production portfolio growth; our staff work very hard in research for a better health by improving the product’s content. You will be introduced to ‘New Viju, New Beginning’ which has come to restore lost hope.”

    Appreciating stakeholders, he said the firm owes its achievements to the wise decision-making of the management team, the collaborative efforts of distributors as well as employee’s progressive hard work.

    He said Viju’s foray into the market after decades of growth has garnered recognition awards from various organisations across the country.

    Hu pledged to strengthen the cooperation with the firm’s distributors regardless of economic uncertainty.

    “The year 2015 has been a remarkable year. We all experienced many challenges like increased price of raw materials, too much rain fall, change of government and new policies, the level of competitions were high and Naira devaluation but with our joined efforts, Viju Industries will continue to cooperate with our esteemed distributors to overcome every difficulties and challenges as we move ahead for a better tomorrow.”

    The Marketing Manager, Mr Suleiman also urged distributors to be more committed as the firm has made efforts to restructure its sales pattern for the year.

    “This is a new beginning and we do hope that with great cooperation needed from the distributors and with the new sales team we have put in place in addition to the sales representative we are about building, distributors will give us all the best so that we will both smile at the end of the day. With the new categories of milk drinks introduced into the Nigerian market, we hope we will cooperate with each order and arrest where needed,” he said.

  • CBN may intervene in forex allocation to endangered sectors

    CBN may intervene in forex allocation to endangered sectors

    The Central Bank of Nigeria (CBN) is reaching out to members of the Organised to draw up a list of firms in critical forex need, The Nation has learnt.

    Reliable sources close to the apex bank revealed that the CBN is taking steps to open up a forex window to meet the forex requirement of firms identified by OPS members as being in dire straight.

    The CBN measure to make funds available, The Nation learnt, was in response to outcries by leaders of the OPS who pleaded that urgent steps be taken to prevent a total collapse of the real sector.

    Sources in CBN said the bank has reached out to key stakeholders in the real sector to unveil the critical firms that will need the forex relief package.

    Although the list is still in the works, the thinking is that if policy makers do not move fast some company’s may close shop by the end of the first quarter, triggering more job losses.

    It was also learnt that already as much as 100 operators in the general goods sector had indicated that they would shut down in April when their remaining stock of raw materials would have been used up.

    The Chairman, Pharmaceutical Manufacturers Group of Manufacturers Association of Nigeria (MAN), Dr. Okey Akpa, reportedly said about 120 operators were down to two months’ supply of raw materials after which they would close shop.

    The President, Association of Food, Beverage and Tobacco Employees, Mr. Paul Gbadebo, lamented that apart from about three firms, which were able to attain 50 per cent local sourcing of raw materials, the others depended on importation and would find it difficult to keep operating beyond the second quarter.

    On the purported influx of Foreign Direct Investment (FDI) into the country in the face of harsh economic conditions, an investment promotion expert, Mr. Ogbonna Ukuku, said the much-talked about FDI in government quarters is just some smart investors coming in to invest in the profitable companies, such as Indoroma, Procter and Gamble and an indigenous conglomerate, Dangote Industries Limited.

    He called for the scrapping or amendment of over 54 laws that have been inhibiting free trade and investment in the country.

  • Nigeria, Turkey to build on $2.3b trade relations

    The National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA) has beefed up trade ties with Turkey, the 18th largest economy in the world. This is in view of the dwindling revenue from oil.

    The consolidation between NACCIMA and Turkey is expected to yield more investment to boost major sectors, including power, manufacturing, mining, construction, agricultur/agro-allied, aviation and security.

    NACCIMA President, Dr. Bassey Edem, who spoke at the Nigeria-Turkey business forum in Abuja, during the week, said it was imperative for the countries to strengthen extant trade relations considering the huge trade volume built over the years.

    He expressed Nigeria’s readiness to negotiate specific incentives for investors in consultation with appropriate government agencies and also assist incoming and existing investors with the provision of support services as well as facilitate procurement of all business approvals.

    “Nigeria and Turkey have over the years sought a way to fill the vacuum that exists between the two country’s trade relations, through signing bilateral agreements, organizing trade shows and exhibitions in Nigeria and Turkey to encourage both countries open up more trade and investment relations,” he said.

    According to the president, the trade volume between the two countries which stood at $2.3 billion as at 2014, needs to be enhanced, hence the need for Turkish business partners to utilise the opportunity of the forum to further develop long term business relationship with Nigerian counterparts.

    He said: “Even though Turkey currently has a comparative advantage with respect to trade relationship between it and Nigeria, we believe this could be balanced when our Turkish counterparts consider more of technology transfer by partnering with their Nigerian counterparts to invest in some specific sectors of the Nigerian economy most especially at this time that the Nigeria Government is very committed to the diversification of the economy from crude oil.”

    Noting that Nigeria is among the next destinations for global economic prosperity, he said the country’s emerging market economy is positioned as the largest in Africa and 26th in the world, with a Gross Domestic Product (GDP) of over $520 million and a population of over 170 million people.

    He added that Nigeria remains a thriving investment destination in Africa with the certainty of good return on investment within a reasonable time span.

    President Republic of Turkey, Mr. Tayyip Erdogan, said Nigeria plays an important role in Turkey’s African initiative hence Turkey has high interest in expanding her business foray in Nigeria.

    “As the Turkish business community, we also support Nigeria’s goal of becoming one of the top-20 countries by 2020. We believe that Turkey has an important role to play for Nigeria to realise this goal,” Erdogan said.

    He reiterated that the country is  working towards substantial partnership to increase the trade volume between both countries in a short time.