The Nation Newspaper

Category: Industry

  • LCCI praises Buhari for raising 2016 budget capital vote

    LCCI praises Buhari for raising 2016 budget capital vote

    The Lagos Chamber of Commerce & Industry (LCCI) has commended the President Muhammed Buhari  administration for raising the capital expenditure to 30 per cent from 15 per cent in this year’s budget.

    In a statement by its President, Dr. Mrs. Nike Akande, LCC said most of the assumptions made in the 2016 draft budget reflected the realities and desired spending priorities for national development.

    She expressed hope that adequate provision would be made within the context of the capital provision for infrastructure towards addressing the huge infrastructure deficit.

    She noted that one of the effective means of achieving this is through Public Private Partnership (PPP) model. To facilitate private capital flow into infrastructure building, she advised government to develop attractive policy frameworks for PPPs.

    She said: “We also urge the fiscal authorities to review and monitor the quality of capital expenditure and ensure that funds are directed to the critical infrastructure needed to drive productivity.”

    TheLCCI president,however, warned on the draft budget benchmark for crude oil at $38 per barrel, maintaining that it looks very fragile given the continued and projected boost of supply side of oil in the international market and its potential impact on oil price.

    She, therefore, canvassed the reduction of the oil benchmark, adding that  the chamber’s members agreed with the government that greater emphasis would be placed on non-oil revenue through diversification driven by agriculture, solid mineral and service sectors.

    The quick win for government, according to Mrs. Akande, is to focus on policies and regulations that will attract private capital and encourage investment. She added that efficiency of tax administration is very vital to expand the current non-oil revenue base.

    The LCCI chief also noted that the exchange rate benchmark of N197 per dollar in the 2016 budget appears too conservative and at variance with realities.

    She canvassed an exchange rate benchmark of N220 per dollar threshold in the 2016 budget.

    She criticised the growing budgetary provision for debt servicing, quoting the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) provision of N1.3 trillion for domestic debt service in 2016 mainly to service existing commitments.

    This figure, she argued, represents 72 per cent of the proposed capital expenditure. She canvassed an innovative strategy to reduce burden of debt service to the economy.

    “Noteworthy is the provision of zero allocation for kerosene subsidy, which has been one of the biggest burden over the years. The reduction of Federal Government’s share of fuel subsidy to N63.29 billion compared to almost N1 trillion spent on subsidy in 2015 is also a welcome development. These will definitely free up resources to finance other priorities especially infrastructure,” she said.

    Mrs Akande reiterated the Chamber’s call for the deregulation of the petroleum downstream sector in order to reduce the pressure on government finances and the foreign exchange market. According to her, this will not only create savings for investment in priority sectors but also provide a great opportunity to attract more investment to the sector.

    LCCI praised the Executive on the passage of the revised Petroleum Industry Bill (PIB),, noting that the Bill  will unlock opportunities in the oil and gas industry as well as create an transparent operating environment in the sector.

  • WAMCO to invest N4b yearly to enhance capacity

    •Three months nutrition intervention for Borno IDPs begins

    Friesland Campina WAMCO Nigeria Plc, manufacturer of Peak Milk brands, has earmarked  over N4 billion yearly to grow its operations, enhance capacity, create employments and a healthy populace in the country, its Managing Director, Mr. Rahul Colaco, has said.

    Colaco, who spoke in Lagos at the weekend during the launch of low priced brands of Peak milk called ‘Peak Wazobia’ and a range of other low unit portion packs of Peak and Three Crowns evaporated and powdered milk in N20 and N50 sachets, said developing human capacity is central to its operations.

    He also told The Nation that the diary company has commenced a three-month nutrition intervention for Internally Displaced Persons (IDPs) in Borno State to check incidence of malnutrition. He said three months ago, workers of the company visited the IDPs in Borno State where they contributed household goods, among other items to them.

    He explained that the company decided to provide children in the IDP camp with milk for three months to prevent them from malnutrition and other health-related issues. According to him, at the end of the intervention, the company would measure the impact and result before deciding on the next line of action, adding that the firm is committed to making quality nutrition available to Nigerians.

    Colaco said the aim of introducing Peak Wazobia into the market was to increase consumers’ options of quality dairy products. This, according to him, is because Peak Wazobia costs N50 per sachet, even as the company has assured consumers that the quality would never be compromised.

    On the new products, Colaco said: “We are key players in feeding Nigerians. For us this is a privilege and a responsibility that we are fully committed to. Of course, this initiative is fully linked with the pillar of our mission statement which addresses issues of nutrient security.

    “This pillar focuses on issues of malnutrition, which is also a growing national concern. We believe that with daily consumption of milk through increased accessibility of quality dairy nutrition, consumers have the opportunity of getting up to 50 per cent of the nutrients that they require daily, which the body cannot make on its own.”

    A Professor of Community Health Nutrition and Nutrition Consultant, Ladoke Akintola University of Technology (LAUTECH), Ogbomosho, Prof. Ebenezer Ojefitimi, in his presentation titled: The role of dairy in promoting nutrition: A public health perspective, said the benefits of quality nutrition in preventing issues of malnutrition across all life stages and economic groups.

    “Dairy and its products should be endorsed as an integral component of healthy patterns. After all, they are nutritionally beneficial, environmentally sustainable, economically viable and culturally acceptable. Dairy and its products have the potential to assist us to achieve our number four and five millennium development goals (MDGs),” he said.

  • Nigeria, Japan trade hits $5.28b

    Nigeria, Japan trade hits $5.28b

    Trade volume between Japan and Nigeria has reached a record $5.28 billion, the Trade Commissioner and Managing Director, Japan External Trade Organisation (JETRO), Mr. Taku Miyazaki, has said. He said Japanese companies were keen on expanding their businesses in the country with high technology.

    Miyazaki urged the government to make the environment conducive for Japanese companies to operate. He said some of the draw backs that may deter would-be investors from his country are poor infrastructure such as electricity as many of the prospective investors are manufacturers who are also desirous of good roads, good regulatory environment, efficient judicial system, attractive import regulatory environment and security of lives and investment.

    “Nigeria ordinarily should be the toast of investors if the necessary things are put in place especially in terms of effective and efficient infrastructure provision such as electricity, motorable roads, effective and consistent regulatory authorities, and standardisation that will discourage the importation of fake and cheap products from other Asian countries,” he said.

    He said last year, both import from Japan to Nigeria and export from Nigeria to Japan increased significantly. According to him, import from Japan mainly consisted of machinery, steel products and vehicles valued at about $728 million, representing 21.0 per cent more than 2013 figure.

    On the other hand, export from Nigeria to Japan, which was dominated by natural gas and a few non-oil products especially sesame seeds, also increased  from   36.8 per cent to nearly $4.5 billion last year. He said JETRO has committed 60 years of its life to Nigeria,strengthening bilateral economic relationship between the two nations.

    Miyazaki said Japanese companies in Nigeria are known for their high quality products and are attracted to the country by her population, which is in the excess of 170 million as well as her large market.

    He identified some of the Japanese companies operating in Nigeria to include Nissan, a giant car manufacturer with a manufacturing plant that took off last year; Honda, which started in July local assembling but with a history of over 20 years presence in Nigeria, and Isuzu that recently announced plans for local manufacturing by second quarter of next year.

    The Trade Commissioner said the interest of his home government is much elucidated with the large presence of companies in the recently concluded Lagos International Trade Fair where the Japanese Pavilion featured 24 companies that included participants from Japan as well as their local representative agents in fields such as food, vehicles, transportation, machinery, motorcycles, auto parts and stationery including home appliances.

    Others are musical instruments, power generators, security devices, industrial equipment, electrical tools, office equipment and sewing machines. He stated that an increasing number of Japanese companies are keen to expand their businesses in Nigeria, he said.

    On how Japanese companies intend to help Nigeria tackle counterfeiting, he said the Japanese Government is taking the advocacy seriously and has subsequently organised seminars, conferences and workshops in the bid to curb the faking of Japanese brands in China, for instance.

  • LCCI chair pledges increased effectiveness

    Lagos Chamber of Commerce and Industry (LCCI) new helmsman Chief Nike Akande has pledged to ensure that the chamber retained its status as the leading private sector advocacy organisation in Nigeria, through increased effectiveness and synergy with necessary sectors of the economy.

    At her investiture in Lagos, during the week, she said the chamber would rededicate itself to promoting a conducive environment for private sector to operate hitch-free while realising the Nigerian vision.

    She said: “As I mount the saddle of leadership of the Chamber, effectiveness and positive impact on the quality of investment climate will be my watchword.

    “We would ensure our advocacy achieve the right level of effectiveness, which will be measured by the response of various tiers of government to our proposals on policy direction in the interest of the investors, whether domestic or foreign.”

    Congratulating her, the wife of President Muhammadu Buhari, Aisha, who was represented by former deputy governor, Lagos State, Mrs. Adejoke Adefulire, said her election came at an auspicious time when the chamber needed a visionary leader to drive its cause.

    “The present administration will be glad to collaborate with LCCI leadership in ensuring a conducive business environment for the economy to improve on policies and measures affecting business and the economy at large. The government remains committed to the implementation of the economic diversification, reforms as well as creating enabling environment for investors,” she said.

    Expressing confidence in the new leadership, Lagos State Governor Akinwunmi Ambode, represented by his deputy, Mrs Oluranti Adebule, said the chamber would rise to greater heights through its broad and unique experience on the Nigerian economy.

    “At a time when the nation and the world is facing economic challenges, we need our best brains to move us forward. Businesses have to reinvent themselves and collaborate with each other for us to remain a sustainable economy,” the governor said.

    NBCC immediate past president  Alhaji Remi Bello said he had confidence in the new president, noting that her tenure would bring a rich blend of public and private sector experiences to bear on the chamber.

    He said: “This investiture is unique in a number of ways as Chief (Mrs.) Akande is the second female president of the LCCI in its 127 years history and first former minister of the nation to be president. I formally congratulate her on the well-deserved election.”

  • NBCC to lead positive perception campaign for Nigeria

    NBCC to lead positive perception campaign for Nigeria

    Worried by the continued negative perception of Nigeria abroad, in spite of some unfolding positive strides by the new administration, the Nigerian British Chamber of Commerce (NBCC) has promised to engage Nigerians in Diaspora towards correcting the wrong perception, especially in the British society and its media.

    At the inauguration dinner of the 14th Executive Council of the chamber in Lagos, last weekend, newly-installed NBCC President/Chairman Prince Adedapo Adelegan decried the way global attention on Nigeria, Africa’s biggest economy, is promoting pessimistic beliefs of wars, strife, low return on investment, unfriendly business environment and scams.

    He said NBCC would soon unfold a programme aimed at deploying various platforms of engagement that would include commissioned documentaries, cultural road shows and establishment of legacy economic activities to re-create Nigeria’s image.

    Adelegan noted that the Chamber was established in 1977 to promote trade and investment between Nigeria and Britain, with particular emphasis on enhancing relationships towards building critical infrastructure that would support Nigeria’s economic growth, especially in agriculture.

    Calling on the country’s political leadership to chart a progressive path for the future, Prince Adelegan observed that India remained a good example for Nigeria to emulate. He said India has continued to make strategic investment in critical areas of its economy, thereby securing superior design and engineering know-how that has supported the local manufacturing industry and transformed the country into a major industrial nation.

    He added that for Nigeria to achieve her dream of economic transformation, all critical stakeholders must pool efforts to install technology that is important as a foundation for the future of the economy. “We will need Foreign Direct Investment (FDI) from UK, but will also encourage Nigerian investment in that country because the vibrancy of our entrepreneurial spirit will ultimately define the place of Nigeria as the next frontier of global economy”, he said.

    Adelegan also revealed that the Chamber has concluded arrangements for the establishment of an academy and SME support centre in partnership with a leading vocational training centre in the UK.

    Congratulating the new president and his team, Lagos State Governor Akinwunmi Ambode, who was represented by his deputy, Dr Oluranti Adebule, said the trade relationship between Britain and Nigeria has been greatly beneficial over the years.

    His words, “With increase in trade volume from £1.42 billion in 2010 to over £7 billion in 2012, Nigeria ranks high as UK’s second trade partner on the continent after South Africa. The role of NBCC in the growth of this bilateral trade cannot be over emphasised”.

    He said Lagos has always been the greatest beneficiary of the trade relations between Nigeria and UK, which has contributed to the state’s Gross Domestic Product (GDP) of $136 billion as well as her rising profile as a globally acknowledged mega city.

    Ambode expressed the hope that the new NBCC executive council would help attract more business to Lagos. He assured the business community of  doing business  with ease, adding that his efforts in the last few months have been focused on improving infrastructural development and strengthening the capacity of security agencies to guarantee safety.

  • Economy must be diversified, says MAN

    Economy must be diversified, says MAN

    The Manufacturers Association of Nigeria (MAN) has said there is no better time to diversify the economy than now. MAN President Dr. Frank Udemba Jacobs said it has become imperative to encourage the development and growth of the manufacturing sector, which is the surest way to diversify the economy.

    Speaking with the Nation,  Jacobs said the manufacturing sector is essential to job creation, sustained growth and development of other key sectors such as agriculture, solid minerals and others. “For the economy to remain the largest economy in Africa, as we claim, and assume the position of one of the leading 20 global economies in the year 2020, its structure must be diversified,” he said.

    He, therefore, called on the government to urgently address the challenges militating against the growth of the manufacturing sector. He identified some of the challenges as acute infrastructure deficiency, general insecurity, smuggling and unbridled importation and dumping of cheap and substandard finished products. Others are high cost of funds, inadequate long term loan windows to support long gestation investments and multiple taxation.

    The MAN president also identified non-availability of functional core industries such as iron and steel and petro-chemical industries as serious threats to the survival and growth of businesses. He also said irregular supply of industrial fuels arising from epileptic operation of local refineries constitutes an impediment to businesses.

    Jacobs urged government to ensure that refineries are privatised and the petroleum sector completely de-regulated. He also complained of policy inconsistency, high level of corruption both in the public and private sectors, as well as tardy implementation of policies. He said these sometimes arose from lack of political will to follow through on good policies.

    The MAN chief criticised what he called the lopsided government fiscal expenditure in favour of recurrent allocation; lack of patronage of made-in-Nigeria products. He noted, for instance, that government expenditure dictates the direction of general demand in the economy.

    He canvassed a policy on buy made-in-Nigeria and asked that it should be strictly enforced at all tires of government including Ministries, Departments and Agencies (MDAs).

  • Shareholders approve merger of PZ Cussons, Tower and Power

    Shareholders approve merger of PZ Cussons, Tower and Power

    The shareholders of PZ Cussons, PZ Tower and PZ Power, on Monday approved merger of the firms in line with the Investment and Securities Act 2007 regulations.

    The merger was approved at an Extra-ordinary General Meeting (EGM) at the Green Legacy Resorts in Abeokuta, Ogun State.

    PZ Tower, PZ Power are wholly owned entities of PZ Cussons and upon the conclusion of the merger, both companies would be fused with the parent parent entity – PZ Cussons Nigeria Plc.

    The subsumed companies in the new arrangement – PZ Tower and PZ Company Ltd were incorporated in 2005 and 2009 repectively for the manufacture and sale of detergent to PZ Cussons Nigeria Plc and for energy generation and distribution to PZ and its related companies.

    In his remarks at the EGM, the Chairman, PZ Cussons Nigeria Plc, Chief Kola Jamodu(CFR), lauded the shareholders for their “support and trust,” assuring that the Board would continue to manage business changes positively in line with current realities.

    Also, the Corporate Affairs and Administrative Director, PZ Cussons Nigeria Plc, Mrs Oluwayomi Ifaturoti, in a release shortly after the meeting, stated the merger was geared towards improved operating efficiencies and cost savings.

    Ifaturoti added that the purpose is to also drive enlarged managerial efficiencies and reduce transfer pricing complexity.

    According to her, the purpose would be achieved through simplification of the corporate structure, streamlining their operations and reducing administrative costs and in the end, harness the benefits of synergy maximally.

  • Sweden, Switzerland promise support for infrastructure, others

    Governments of Sweden and Switzerland have pledged their support for the development of Nigeria’s power and infrastructure sectors. The Ambassador of Switzerland to Nigeria, Mr. Eric Mayoraz, and his Swedish counterpart, Mr. Svante Kilander, pledged the support when they accompanied the Managing Director of ABB in Nigeria, Mr. Mohammed Hosseiny, on a courtesy visit to Vice President Yemi Osinbajo.

    Amb. Kilander stated after the visit the team had a fruitful discussion with the vice president. “We assured the vice president that the Swedish and Swiss governments are fully behind the activities of ABB Power Company in their activities in Nigeria. “There is a full government support for this Swedish/Swiss company.’’

    The envoy described the relations between Nigeria and Sweden as excellent, saying: “We are happy to be able to promote not only government-to-government relations, but also the relations between Swedish and Nigerian companies. This is where development is taking place, where Nigeria is in such a dynamic stage as it is now under the leadership of President Muhammadu Buhari and the Vice President.”

    Also, Mayoraz said Switzerland would support the development initiatives of the Buhari administration. “Switzerland, like Sweden, is committed to supporting the new development policy of the new administration of President Buhari and we are supporting our companies that are willing to invest in development activities here in Nigeria,” he said.

    Mayoraz however, declined comment on the challenges facing Nigeria, saying it was the right of Nigerians to assess what the government was doing. The ambassador acknowledged that Switzerland and Sweden have excellent bi-lateral relations, saying: “If we can try to cooperate for the success of the development of Nigeria, we will be very pleased.”

    In his contribution, the Country Managing Director, ABB, Mr. Mohammed Hosseiny, said the meeting was about how the company could play a role in providing Nigeria with power for the development of infrastructure.

    He added that the discussion focused on the nature of solutions ABB had to support the development in both areas as a follow up to the visit of its Group CEO to Nigeria recently.

    The managing director said the response of the vice president was very positive. “He is aware of the company and he has stressed the need to move forward to the next steps in this power and infrastructure development,’’ he said.

  • Nigeria is Africa’s largest auto market, says Ford CEO

    • Firm to launch 30 new vehicles by 2020

    Nigeria’s auto market remains the largest in Africa, and the buying power of her middle class is increasing exponentially thus, presenting a huge opportunity in terms of consumption of auto products. This is despite infrastructure challenges, the President/CEO Sub Saharan African Region, Ford Motor Company, Mr. Jeff Nemeth has said.

    Nemeth while pointing out that vehicle sales in Middle East & Africa are estimated to grow 40 per cent by 2020 added that the company plans to launch at least 30 new vehicles by 2020 in Middle East & Africa. He however, said the auto maker’s ultimate ambition is to corner 50 per cent of the Nigerian auto market, which remains a significant market in Ford’s Sub-Saharan Africa (SSA) region and accounts for a solid percent of its regional sales.

    He spoke recently in Lagos, on the sideline of the official announcement of the Ford vehicle assembly and unveiling of the first Ford Ranger truck to come off its assembly line in Nigeria. The company’s Semi-knocked Down (SKD) operation in Nigeria was on the strength of its strategic partnership with local Ford dealer group Coscharis Motors Limited. The vehicle assembly line is located in Ikeja, Lagos.

    Mr. Nemeth pointed out that about 54 per cent of Nigeria’s 170 million population constitute the working class whose purchasing power is increasing and this was why Ford was committed to increasing its market share in Nigeria and other key African markets in the future.

    To underscore its commitment in the Nigerian auto market, the Ford CEO said apart from the facility in Lagos, the company plans to establish two new ones in Calabar and Ekiti in 2016. He said the Lagos facility will accommodate one shift and will produce an initial 10 units per day, while a gradually expansion is being planned over time.

  • SFH launches water purification product

    Society for Family Health (SFH) has launched WaterGuard Plus, a new point-of-use water purification product.

    WaterGuard Plus is a product that is strategically designed to address the need for clean water in a simple, easily usable format that makes water safe for drinking and, consequently, contributes to meeting key maternal and neo-natal health (MNCH) deliverables.

    The product is manufactured by one of the few World Health Organisation (WHO) pre-qualified manufacturers and is in powder form.

    Speaking at the launch event in Lagos, during the week, SFH Managing Director, Sir Bright Ekweremadu, said WaterGuard Plus meets all standards of quality and appropriateness for communities in Nigeria.

    While noting that it is easy to use, he said “The more stable powder formula makes it more suitable for our tropical climate and gives the product a longer shelf life, which encourages long term use.”

    Ekweremadu said WaterGuard Plus also kills 99.9 per cent of germs, and the durable packaging is conducive for transportation to both rural and urban areas. The product is also ideal for both personal and industrial use.

    He stated that WaterGuard Plus is a product that will plug in strategically to existing water, sanitation and hygiene programmes across Nigeria and will ensure that both rural and urban households have access to clean and safe water.

    “This will reduce the rates of diarrhoea related illnesses and deaths with the ripple effect of better school attendance for children who might have lost school days due to illness and parents who can have more productive days to pursue income generating activities thereby interrupting the circle of poverty,” Ekweremadu added

    Globally, diseases from unsafe water kill more people every year than all forms of violence, including war. Experts say that 43 per cent of these deaths are children under five years old. Also, over 88 per cent of diarrhoea cases in Nigeria are attributed to unsafe water and poor sanitation.

    In Nigeria, about 41 per cent of the population of 170 million people (approximately 70 million people) lack access to safe water. Unsafe water is a global public health threat, placing persons at risk of a host of diseases. Hygiene related diseases, such as cholera and diarrhoea are the cause of approximately 2,300 deaths per day, 2,195 of which are children. This number is more than deaths from AIDS, malaria, and measles combined.

    According to Ekweremadu, “Our ultimate long-term goal for establishing a sustained culture of clean water is for piped in water to be accessible to all people in all communities in Nigeria. He said there are several organisations carrying out on-going advocacy to the government in that regard.

    Society for Family Health Nigeria is a non-governmental non-profit organisations implementing programmes in maternal and child health, cervical cancer, reproductive health, family planning, malaria prevention and treatment and safe water systems.

    SFH’s programme strategy involves research, behaviour change communication and social marketing and targets the poor and vulnerable in hard-to-reach communities nationwide.