The Nation Newspaper

Category: Industry

  • LEAP Africa advocates entrepreneurial training

    A non-governmental organi-sation, LEAP Africa, has urged graduates to embrace afterschool entrepreneurial and leadership training to be self-reliant after graduation.

    LEAP Africa Programme Officer, Mrs Chinenye Etoniru, gave the advice at the end of the entrepreneurial and leadership training by the NGO, tagged ‘School to Work Employability Programme.’

    Etoniru said the programme, co-sponsored by Citi Foundation, is a yearly event targeted at reducing the rate of unemployment among youths, especially graduates.

    “The programme is an opportunity for youths to learn entrepreneurial, leadership, conflict resolution and other helpful skills, like personal branding, before or in the process of searching for their desired career,” she explained.

    Etoniru noted that there was high rate of graduate unemployment in the country and the reason is not because there are no jobs, but because some young people are not qualified.

    “It is not enough to graduate from school alone, but to be armed with the necessary skills that would make one get and retain a job,’’ she said, adding that 80 participants are taking part in this year’s edition of the programme.

    A participant, Miss Damilola Dada, said the courses in the programme had equipped her with basic skills to help her with getting a job and retaining it. She said she hopes to further her education, and also establish a business.

    Dada added that should she not get a job, the entrepreneurial skills would help her to establishe her business. Similarly, Mr. Benjamin George, a graduate of accounting, said the week-long programme had assisted  in his career.

  • Again, Fed Govt puts 35% levy on used vehicles on hold

    For the fourth time in one year, the Federal Government through the National Automotive Council (NAC), has shifted the implementation of the 35 per cent levy on imported used vehicles. The implementation of the second phase of the auto policy was expected to commence on Wednesday, July 1,2015, but was shifted to an undisclosed date.

    The implementation of the policy was first moved from July 2014 to January 2015, then to April and subsequently to July 1. According to the Director-General of NAC, Aminu Jalal, the implementation of the 35 per cent levy would be on hold until the appointment of new Ministers by President Muhammadu Buhari.

    “We have to wait for the Minister to come. As far as I know, the ministers are not around. When the new Finance Minister comes, we have to brief the person on what we are doing, explain the policy and why we are doing it. The minister will then take up the issue.  He has to give the order before it is implemented,” Jalal explained.

    Recall that Federal Government under former President Goodluck Jonathan had in September 2013 introduced the policy under which it increased the duty payable on imported vehicles to 35 per cent and slammed an additional levy of another 35 per cent, bringing the total to 70 per cent from 20 per cent.

    At that time, Minister of Industry, Trade and Investment, Dr. Olusegun Aganga explained that the policy was aimed at discouraging importation and encouraging local production of vehicles.

    While the new duty rate and additional levy has since been applied on imported new cars, importers of fairly used cars otherwise known as ‘tokunbo’ have been exempted from paying the levy.

  • 110m Nigerians live in extreme poverty, says Osinbajo

    One Hundred and ten million Nigerians live in extreme poverty, which accounts for the high illiteracy figures and shocking infant and maternal mortality rates. It is also the reason over a million Nigerians die yearly of preventable causes,Vice President Prof. Yemi Osinbajo has said.

    Delivering a lecture titled: Beyond Compliance: Imbibing a Culture of Business Integrity, at the Third Annual Christopher Kolade Lecture on Business Integrity in Lagos, Osinbajo said when a large swathe of the population is excluded, with no stake in society because of poverty, the society is endangered.

    Organised by the Convention on Business Integrity (CBi), a company limited by Guarantee, Prof. Osinbajo used the opportunity to highlight the present administration’s policies on anti-corruption and specifically business integrity. He said the Muhammadu Buhari administration was committed to the fight against corruption.

    According to the Vice President, poverty and corruption are two major related ills confronting the nation. “Poverty and corruption are two major related ills confronting  our society. My question is, how do we respond to the ethical dilemma of poverty amidst mindboggling wealth?

    “Corruption on the other hand is perhaps the single most potent cause of poverty. The systematic stealing of the commonwealth by a few individuals – in public and private sectors,” he said.

    Osinbajo while noting that it was not possible for anyone without integrity to still have integrity in his business, said, “Integrity must reflect in behaviour, it is an accepted standard.” He added that integrity should be an acceptable standard and aspiration of every business leader.

    While reiterating that the present administration’s vision and mission was to give meaning to the life of every Nigerian, he noted that the administration’s decision to fight corruption was in the interest of Nigeria and Nigerians.

    Osinbajopointed out that corrupt practices, weak public and private institutions, as well as public policies, were the greatest threat to the stability of the economy. “The most important thing is to do things right. It is important that what we do comply with the rule of law.

    “There is need to ensure that people’s rights are not trampled on. And there is need to ensure that people face the consequences for wrongful actions. That balance is necessary. The administration will ensure that loopholes compliance are plugged and those responsible for creating loopholes will face the consequence,” he said.

    Earlier in his opening remarks, Dr Christopher Kolade noted that Nigeria was a difficult place to practise integrity because corruption was perceived as the norm. “We use corruption in our conversations than we talk about integrity. Integrity should feature more in our conversations. Integrity is meant to be natural to human beings,” he said.

    The third in the edition, the annual Christopher Kolade lecture series is emerging as a forum for businesses to engage with experts and with each other on business integrity issues. The event addressed the existing and potential regulatory impetus for sound business practices, and urged businesses to improve their competitiveness by going beyond the letter of corporate governance codes and anti-corruption laws to imbibe the spirit of ethical business practice.

    The event was attended by top government dignitaries from the private and public sector as well as managing directors of private and public companies, members of the diplomatic corp and other notable stakeholders.

  • Buhari’s cabinet: We are hopeful, say industrialists, investors

    Buhari’s cabinet: We are hopeful, say industrialists, investors

    Amidt growing concern over the delay in the formation of a cabinet by President Muhammadu Buhari’s administration, industrialists and business operators are optimistic that the delay will  augur well for the economy. According to them, it will ensure that only technocrats who are square pegs in square holes make the list, thus boosting investor’ confidence, reports Assistant Editor OKWY IROEGBU-CHIKEZIE.

    It’s probably one of the hottest issues of national discourse, but to many industrialists and business operators, the anxiety over the delay in the announcement of President Muhammadu Buhari’s cabinet is unnecessary.

    Many who spoke with The Nation said contrary to insinuations that the delay in making the cabinet list is slowing down governance and investment decisions, it is better for the administration to take its time to study the complexities of the economy before announcing its cabinet. According to them, this was necessary to ensure a clean break from the past when square pegs were put in round holes, a reference to the appointment of non-technocrats to man key positions.

    The consensus of the Organised Private Sector (OPS), is that in the long run, the delay could turn out a shot-in-the arm for industrialists and other business operators, as the delay would ensure that only those properly schooled in the dynamics of the Nigerian economy are appointed, particularly now that the nation is facing its worst crisis ever. This, in turn, would boost investor’ confidence, guarantee the protection of their investment, and ultimately return the economy on the path of recovery.

    For instance, as former President of the Nigerian Institution of Estate Surveyors & Valuers (NIESV), Mr. Bode Adediji put it, the nation is in transition and so it needs to take time to ensure a dynamic and credible team to tackle the monumental problems confronting her.

    Adediji, who defended the President’s seeming inaction based on his (Buhari’s) anti-corruption credentials, insisted that he must be given enough time to assemble a crack-team for the job.

    Hear him: “Buhari needs to be diligent. A single man cannot effectively fight the war against corruption, or correct the ills of several years of under development. But based on his track record, l am confident that he is working silently for the good of the nation. I also urge his political party to quickly resolve their differences in order to usher in a sustainable change. A situation that they can’t agree on power sharing formula and other things of common interest, is not healthy for the country.”

    A Public Affairs Analyst, Mr. Mahmud Othman,  agreed with Adediji. He said he wouldn’t join the ranks of those criticising the president for not constituting his cabinet yet.

    According to him, “people are finding it very difficult to believe the level of damage to the economy. The transition committee headed by Ahmed Joda made a lot of discoveries. If you appoint ministers without knowing the state of the economy and bringing the right people on board, the economy will run into deeper problems. People are becoming impatient, but l will counsel that we are better off doing the right thing before constituting the cabinet.

    Othman said Buhari didn’t hide his preference to choose the best for the task ahead and not necessarily based on political consideration, but those who can deliver to move the economy forward. He pointed out that the economy is in tatters as can be seen from the various states that can’t pay workers’ salaries, let alone embarking on new projects.

    “Oil money is no longer available. The debt profile is scary. Personally l don’t envy any political appointee especially ministers because the expectations are too high. As a stop gap to the appointment of ministers, the Permanent Secretaries in the ministries are working and no investor will leave because of late appointment of ministers,” he added.

    The Public Affairs Analyst is not done. While disagreeing with those arguing that governance is crawling because of the delay in constituting a cabinet, he insisted that various aspects of governance backed by law are operating as they don’t need ministers to work. He said anti corruption agencies, such as the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and other Offences Commission (ICPC), have suddenly woken up and are arresting those alleged to be corrupt unlike before. This, he said, is because they have read the president’s body language and known that he is not interested in condoling corruption.

    Othman however criticised the lack of information from the Buhari’s government. While noting that it is a minus to the administration, he said, “Frayed nerves are not calmed because it is a different thing for 36 ministers to be talking from the perspective of their ministries rather than what is obtainable now where nobody is hearing anything that can sooth the nerves of the public and people just believe that governance has taken flight.” He however, encouraged Nigerians to be hopeful and be confident that the Buhari administration will deliver on his campaign promises and that the nation will be great again.

    However, the President’s Special Adviser on Media and Publicity, Mr. Femi Adesina, over the weekend, sought to close the perceived communication gap when he said it will take time to clear the mess created by the Goodluck Jonathan administration. Adesina, in statement, said “It requires scrupulous and painstaking planning to clean the PDP’s Augean Stable.” He also noted that Nigerians were already on the side of the administration, which he said was on course.

    Adesina was reacting to the 30 days appraisal of Buhari administration by the opposition PDP. Its National Publicity Secretary, Mr. Olisa Metuh, had in a statement during the weekend, taken a swipe on the Buhari administration, noting that the enormity of the confusion surrounding the government and the ruling party in the last one month had made it imperative for Nigerians to pray as the success or failure of the Buhari administration would not only affect the President and his party, but also the entire nation.

    The statement by Metuh said: “We urge Nigerians to join hands in prayers and offer useful suggestions to President Muhammadu Buhari and the APC because with what we have seen in the last 30 days, the present administration is finding it very difficult to get its bearings right while showing no inclination towards implementing its numerous campaign promises for which they were voted into office at the centre. We are deeply worried that the President, who promised to unveil his cabinet two weeks after his inauguration, has not been able to decide on key appointments, such as ministers, Secretary to the Government of the Federation (SGF), Chief of Staff and advisers in key sectors of the economy.”

    Metu said the delay has brought government business in ministries, departments and agencies to a dangerous standstill with coordination of important policies vested on ministers and the SGF now in tatters while the system drifts. According to him, the situation is taking its toll on the economy, which has in the last 30 days witnessed unprecedented decline with a terrifying crippling of foreign and domestic investments, including activities in the money and capital market sectors. He said under Buhari, for instance, the stock market has lost over N238 billion while the All-Share Index fell by 849.87 basis points as at June 19.

    For Director-General, Lagos Chamber of Commerce and industry (LCCI), Mr. Muda Yusuf, there is no clear indication on the position of the government and investors need to know the direction the administration is going to avoid creating doubt in the minds of the public. By now, there should have been clear direction in key sectors of the economy such as energy, oil and gas, monetary and fiscal policies. The problems of uncertainty have persisted in the economy and the issue of conjecture has persisted in the economy with people guessing at what the government is planning as far as policy direction is concerned,” he told The Nation.

    While pointing out that people are not insisting on full implementation of the administration’s blue print on the economy, he said there is need for investors to have a bearing on what to expect in the new dispensation. But the thinking of other operators in various sectors is that the delay in constituting a cabinet was informed by the realities on ground particularly the need to get things right.

    For instance, apart from the need to clear the rot inherited from the previous administration, the crisis in the National Assembly over the choice of principal officers as well as the need to prune down the number of ministries and parastatals, The Nation learnt, are also responsible for the delay. But the consensus is that by the time the cabinet is eventually constituted, Nigerians and the economy would be better for it.

  • Novartis buys drug firm Spinifex

    Novartis buys drug firm Spinifex

    Swiss drug-maker Novartis AG boosted its presence in pain management by agreeing to buy U.S.-Australian biotech firm, Spinifex Pharmaceuticals, the companies said in separate statements during the week.

    Spinifex said Novartis was paying $200 million upfront and Spinifex shareholders could get further payments based on clinical development and regulatory milestones.

    The transaction is expected to close in the second half of this year, pending regulatory approval.

    The deal gives Novartis access to Spinifex’s experimental neuropathic pain drug EMA401, which showed positive mid-stage Phase II clinical trial results in treating post-herpetic neuralgia.

    Post-herpetic neuralgia is a painful condition some people get after shingles. Chronic neuropathic pain, caused by nerve problems, is a relatively common condition, afflicting up to 7-8 per cent of the adult population, but current treatment options are limited and can be problematic.

    Because EMA401 acts outside the blood-brain barrier, it can avoid common side effects such as dizziness or confusion seen with painkillers affecting the central nervous system.

    Novartis plans to continue the development of EMA401 and intends to start Phase II clinical trials in patients with PHN or another condition called painful diabetic neuropathy, which is caused by diabetes.

    “Neuropathic pain is a chronic and debilitating condition with high unmet need. EMA401 could provide a novel, differentiated treatment approach,” said David Epstein, head of Novartis Pharmaceuticals.

    The acquisition is small by the standards of Novartis, but it highlights the Swiss group’s drive to expand its pipeline of new medicines.

  • Economic prosperity tops agenda at MAN’s luncheon today

    The need to fundamentally restructure Nigeria’s monetary framework to induce vast expansion in industrial activity with single digit lending rates, increasing employment opportunities and a market-determined exchange rate mechanism, will top discussions at Manufacturers Association of Nigeria (MAN) 2015 Business Luncheon for MDs/CEOs, holding today  at MAN Centre Complex, Ikeja, Lagos.

    Renowned economist and industrialist Mr. Henry Boyo will be Guest Speaker at the luncheon organised by Ikeja chapter of MAN. Boyo, who is Managing Director of Cocosheen Nigeria Limited, will be speaking on the theme, ‘Nigeria: the Sensible Road to Economic Prosperity’ He will be joined by Governor of Lagos State Mr. Akinwunmi Ambode as Special Guest of Honour, while Dr. Frank S.U.Jacobs, President of MAN is Guest of Honour.

    In his paper presentation the advance copy of which was made available to The Nation, Boyo will be pushing forward the argument that the economy appears trapped in a paradox of deepening poverty with increasing export revenue because of Central Bank of Nigeria (CBN’s) practice of capturing export dollar revenue and substituting naira at its unilaterally determined exchange rate of exchange, before payment of consolidated naira allocations to the three tiers of government.

    Boyo argues that CBN’s conscious, deliberate and misguided payment policy of substituting naira allocations for dollar-derived revenue results in market imbalance, which ultimately weakens the naira exchange rate. He said the challenge of excess liquidity in the system caused by the obnoxious payment arrangement is responsible for the unacceptably high inflation rate, high cost of funds and interest rates.

    “The humongous cash surplus in the system is pitted against less goods and services. The market imbalance drives higher prices, fuel inflation. Inevitably, incomes will buy less and less goods and services. Higher incomes buy less because of the rising general price level. N18,000 wage can now only buy about half of what it could buy initially,” he said, adding that it is also responsible for high cost of funds because in the process of trying to reduce the excess money the CBN out bids the common man or the real sector.

    Boyo therefore, recommended that the earlier Nigeria begins to use dollar certificate or coupons (strictly not cash) for payment of monthly allocations to the three tiers of government the earlier the nation would return to the path economy prosperity.

    The paper explained in graphical terms, for easy comprehension, that with the use of dollar certificate, instead of the CBN getting dollar from the government and substituting it with naira, the bank regulator would rather give the certificates to beneficiaries who would go to banks to change the certificate into naira.

    The economist said by using the dollar certificate, interest rate, inflation and debt rates would come down. “It has so many ramifications, and the earlier it is adopted, the better,” he said.

  • Manufacturers’ woes worsen as insurgency intensifies

    Manufacturers’ woes worsen as insurgency intensifies

    The specter of Boko Haram is haunting the manufacturing industry. From billions of dollars in financial losses by manufacturers to monumental  decline in Foreign Direct Investment (FDI), loss of jobs and social dislocation, the upsurge in the bombing campaign of the militant Islamist group has left manufacturers, and by extension, the economy, gasping for breath. Assist Editor CHIKODI OKEREOCHA reports that unless President Muhammadu Buhari  makes good his promise to contain the group, more manufacturers, especially those in the Northeast, may become extinct.

    It would probably go down as the most challenging period in it’s over 50 year’s operation in Nigeria. Between November last year and April this year, a period of six months,Lafarge Africa incurred financial losses to the tune of N2.5 billion as a result of the Boko Haram insurgency in the Northeast. The company, which recently merged with Switzerland–based Holcimto create the most advanced building materials group, incured the heavy losses because it could not meet its sales projections due to the insecurity in the region..

    Although, normalcy has since returned to the company’s operations, according to itsGroup Managing Director/CEO, Guillaume Roux, the N2.5 billion financial losses is not the company’s only worry.

    Lafarge Africa  is also worried about the threat Boko Haram poses on it’s over $100 billion business expansion drive, particularly in the northern region.

    Roux said: “Today we have up to 8.5 million tonnes in the country and we want to double that capacity in the next five years. We are expanding in Calabar and we want to expand in the north. So this project of $100 billion expansion in the north is key because there’s a market; its key because there’s growth and it’s been an essential project for us.”

    Roux, who spoke in Abuja shortly after a meeting with the Presidential Initiative on the North East (PINE) held to finalise discussions on the role the cement company will play in the long term economic development of the Northeast, said supporting the security, recovery and stability of the region had become critical to the future of its over $100 billion business expansion drive in the region.

    According to him, the assets and plants the company has in the north are very strong and competitive. “We want to make sure the right conditions are there. Security is essential-without security obviously we cannot invest. The economic development is essential, so we need to help,” he said.

    Roux further said the company had demonstrated its commitment to business expansion in the region through the ground breaking of an expansion project that was meant to grow Ashakacem capacity from the current one million metric tonnes to four million metric tonnes.

    His words: “Lafarge is a long term investor and this necessitates uninterrupted operations despite the insurgency that we have witnessed in recent times. Of course, we see security as a key ingredient for our continued oper ations and this is why we are a willing ally with PINE in restoring normalcy and rebuilding the region.”

    Incidentally, Lafarge Africa is only an addition to the long list of manufacturing firms in Nigeria desperately craving uninterrupted operations and is ready to give an arm literarily for the restoration of normalcy in the devastated region.Boko Haram’s insurgency is also taking a huge toll on Spectra Industries Limited, makers of Suco beverages.

    Its Managing Director, Mr. Duro Kuteyi, told The Nation that because his company’s distributors are in the Northeast and Northcentral – the epicenter of the sect’s activities – the fortunes of his company have dwindled.

    Kuteyi who is also the National Vice Chairman of Nigeria Association of Small Scale Industrialists (NASSI), lamented: “Our core business is in the North, and our distributors complain of low sales as people are scared of visiting the markets or big malls; customers take their time to shop because of bomb scare.”

    Customers, he said, are skeptical about the safety of doing business or even doing their personal shopping, so the situation has affected his company’s profitability. “The security situation, especially the bombings and kidnappings are affecting our business,” he said, adding that as a result the distribution of locally manufactured goods has been hampered.

    For manufacturers, it does not only rain, it pours.The protracted armed insurrection in the country has ruined their businesses, and by extension, the national economy. Real sector operators especially manufacturers including members of the Organised Private Sector (OPS) are agonising over the implications of the continuous erosion of investor’ confidence on the economy as a result of the sustained bombing campaigns of the militant group.

    President,  Lagos Chamber of Commerce and Industry (LCCI), Alhaji Remi Bello, is one of those who are worried.

    Bello said at moment, itis extremely difficult to attract investors because the risk of long-term investments had become enormous. Hear him: “The tempo of economic activities in the North has declined; access to markets by companies in the south has reduced, resulting in loss of sales; while many enterprises have relocated.” While noting that security of lives and property is crucial to investment, he said investment growth is imperative for job creation, poverty reduction and social stability. Besides, persistent insecurity, he stated, impacts negatively on the economy, while declining private sector performance result in job losses, which in turn aggravate the state of insecurity.

    For real sector operators and indeed, government, the dry up of Foreign Direct Investment (FDI) due to rising insurgency is a bitter pill to swallow. Since 2009 when the group emerged, FDI has been dropping sharply, sending shock waves down the spine of the authorities particularly since last year when declining price of oil in the international market caused serious fiscal upsets for Africa’s largest economy. For instance, the World Investment Report (WIR) 2013 says FDI flows into Nigeria dropped by 21 per cent in just one year — from $8.9 billion in 2011 to $7 billion in 2012. This translates to loss of $1.9 billion, a figure considered unacceptable for a country in dire need of shoring up its revenue.

    The drop in FDI, The Nation learnt, is not unconnected with the serious negative perception problem created for the country by the activities of the insurgents. The perception problem is said to be responsible for the dwindling fortunes of operators in the hospitality industry. Many branches of banks and insurance companies have also closed shop, even as sales representatives of many companies have fled the affected states in the north. Also, many company projects under construction in the North have either been abandoned or suspended. Many operators, especially Small and Medium Enterprises (SMEs) have also relocating to other states thus, putting more pressure on limited facilities in those states.

    Because many companies have relocated their employees to areas considered less volatile, while many Nigerians moved en-mass to states not impacted by the violence, a humanitarian crisis of unimaginable dimension has since set in. Many families resident in the South where fleeing victims of Boko Haram take refuge have had to contend with feeding more mouths than their income could carry. The unemployment rate in those states in the south also soared. The rush to escape from the northern part of the country that has been hard hit is already affecting the profitability of businesses in the region due to decrease of economic activities.

    A disturbing aspect of the humanitarian crisis now starring the country in the face as a result of the upsurge in the activities of the sect is the plight of Internally Displaced Persons (IDPs) Last year alone, about 16 million people, many of them children, were displaced, according to fugues from Federal Ministry of Special Duties and Intergovernmental Affairs.  Yet, Permanent Secretary in the Ministry, Dr. Jamila Shu’ara, at an event marking this year’s World Refugee Day in Abuja, this week, raised the alarm that the figure might triple this year if urgent steps were not taken to stop insurgency.

    With about 47,000 persons displaced daily, Shu’ara said: “The issue of refugees and displaced persons has become a major concern globally because of the negative effects on humanity.” She however, said her office was collaborating with the United Nations High Commission for Refugees (UNHCR) and other stakeholders to provide succour for refugees and IDPs.

    “We all have a moral obligation and responsibility to lend a helping hand to people who want to flee as a result of conflict. The government is firmly committed to these principles while also seeking lasting and durable solutions to the challenge,” the Federal Commissioner for Refugees in the National Commission for Refugees, Migrants and IDPs, Hadiza Kangiwa Sani, said, adding that because of the security challenge in the Northeast, hundreds of Nigerians now prefer to seek asylum in neighbouring countries.

    While calls for all hands to be on deck in seeking lasting solutions to the challenge of IDPs intensify, manufacturers, widely acknowledged as catalysts for economic growth and development, are also seeking relief. Recently, Manufacturers Association of Nigeria (MAN), the apex manufacturing body in Nigeria, called on President Muhammadu Buhari to address all the issues agitating the minds of manufacturers especially the Boko Haram insurgency.

    Although, since his inauguration on May 29, Buhari had at various fora reiterated his administration’s commitment to halting the violent campaign of Boko Haram, the consensus of experts and operators in various sector is that government must work the talk to halt the most callous and violent radical Islamist groups in African history. This, they say has become necessary because the manufacturing sector in particular remains crucial to national development, given its potential for job creation, revenue generation, and contribution to national Gross Domestic Product (GDP).

  • LCCI seeks economy’s diversification

    LCCI seeks economy’s diversification

    • Plan trade fair in three venues, same day

    The Lagos Chamber of Commerce and industry (LCCI) has called on the Federal Government to diversify the income base of the economy by paying necessary attention to the non-oil sector, such as agriculture and solid minerals.

    LCCI President Mr. Remi Bello said the need to reposition the economy and correct its dependence on oil has become necessary to ensure that the nation earned more from agric commodities and the solid minerals sector.

    He spoke ahead of the public presentation  of the prospectus of the 2015 Lagos International Trade Fair holding from Friday November 6 to 15.  Its  the theme is “Enhancing value addition in the non-oil economy.”

    He said the daunting economic challenges facing the country are as a result of the fall in the global price of crude oil.

    Bello stated that for a country like Nigeria that had over the years relied almost entirely on oil to fund its economy, the implications are dire and frightening. He regretted that already states of the federation are currently having challenges meeting their basic financial obligations.

    According to him, if the Nigerian economy is to survive and the country achieves industrialization, there is the urgent need to diversify its income sources. He said the Chamber is committed to drawing attention to the imperative of non-oil export and harnessing the nation’s human resources with modern technology to add value to the economy.

    Bello assured that the 2015 trade fair will provide a platform to not only identify these alternatives to oil but also draw attention to the opportunities that abound in value addition to enhance earning and profitability.

    The investment forum, which is planned to hold at the Muson Centre, Lagos, will provide additional resources for discerning business people, as the forum will serve as a master class and intellectual power house for all that is needed in exploiting the investment opportunities in the non-oil sector.

    LCCI, Chairman, Trade promotion Board, Dr. Micheal Olawale-Cole, in his remarks, said  the Chamber took another bold step by expanding the scope of the international trade fair with events billed to hold simultaneously at the Tafawa Balewa Square, Muson Centre and the Freedom Square-all on the Lagos Island.

    On the preparation to make the three venues a success, Olawale-Cole said “We are quite conscious of the enormity of the requirements and the challenges. We have therefore, formed alliances with competent individuals and organisations to improve our capacities. These added capacities will ensure that the 2015 Lagos International Trade Fair provides the necessary and desired dividends of a truly effective trade show with a corresponding positive effect on the economy.”

    Olawale-Cole said the three venues, all within walking distance of each other, creating a huge business hub in Lagos lsland within the ten-day fair period has become a reality. “We have therefore, opened the doors of the Lagos international trade fair to attract exhibitors from virtually all sectors of the nation,” he added.

    He said the fair is expecting a larger number than last year’s that recorded over 150,000 visitors, noting however, that last year’s fair was hampered by the Ebola scare, which prevented the Chinese delegation from being part of the fair.

    According to him, over 90 visitors came for business. He also promised a product diversification as over 70 per cent of last year’s exhibitors indicated interest to participate in addition to new businesses that have shown tremendous interest in participation.

    Olawale-Cole also promised that the electricity situation will improve while adequate care has been taken to provide security and other infrastructure services.

     

  • PZ Foundation upgrades facilities

    As part of its Corporate Social Responsibility (CSR) programme, PZ Cussons Foundation has renovated and handed over fully furnished block of four classrooms and a library to Okuta Dudu High School at Odo Ere in Yagba West Local Government Area of Kogi State

    Its Chairman and former Minister of Industry, Chief (Dr.) Kola Jomodu, who spoke on the occasion, extoled the contribution of the company to the economy. He said the company has kept faith with the country in good and trying times since it started operation over a century ago.

    “PZ will continue to grow and expand its operation and will keep imparting technical and managerial skills on Nigerians,” Jomodu said, assuring that the company will consistently live to its mission of providing goods that will make life better.

    A member, Board of Trustee of the Foundation, Engr. Tunde Oyelola, said the Foundation has executed over 48 projects across the country. He said Kogi State has had its fair share with about five projects located at Lokoja, Isanlu and now Ode Ere. He urged the beneficiaries to make the best use of the facilities and maintain them for the use of future generation of students. ‘This is the only way you can encourage us to do more’ he added.

    The Executive Governor of Kogi State, represented by the Commissioner of Culture and Tourism,  David K. Olowomoran expressed great appreciation for the gesture. He thanked the Foundation for taking interest in the educational development of the state and called on other corporate organisations to emulate the gesture.

    Communities in and around Odo Ere attended the event and were full of commendation for PZ Cussons.

    PZ Cussons Foundation is managed by a 15-member Board of Trustees and funded by PZ Cussons Nigeria PLC. The Foundation has been executing PZ CSR programme in education, provision of potable water, health and road rehabilitation.

  • BoI’s automotive fund hits N18.09b

    BoI’s automotive fund hits N18.09b

    The Bankof Industry (BoI) National Automotive Council (NAC) Fund has grown to N18.09 billion since inception in 2003.

    The fund is aimed at developing the automotive sector by financing projects in the industry and  the annual budgetary approval for capital and recurrent expenditures of NAC.

    Bol manages the fund for a fee of five per cent per annum on investible fund, payable quarterly and deductible from the balance of the fund.

    Similarly, it was learnt that NAC receives management fee of two per cent per annum on investible fund payable quarterly and deducted from the balance of the fund.

    For the funding of projects, the fund is broken down into three categories such as, NAC Term loans and Working Capital Financing granted at 7.5 per cent and 10 per cent per annum on term loan and working capital respectively. The  second category, NAC Auto Technicians Support Scheme boasts of N1 billion set aside from the main NAC fund for capacity building in repair and maintenance for artisans, craftsmen, technicians and mechanics.

    The scheme is provided at 7.5 per cent per annum to the partnering Micro Finance Bank (MfB) and 10 per cent per annum to the final beneficiary. The last one is vehicle purchase credit scheme for individuals and private commercial operators, lease finance for fleet operators to purchase vehicles  from local assembly plants in order  to enhance their capacity utilisation and those of component manufacturers.

    BoI also manages funds for state governments such as Anambra , Niger and Kogi states. For Anambra State the fund is geared towards addressing the dearth of funding support to small business owners in the state. Under the scheme, entrepreneurs of Macro, Small and Medium Scale Enterprises (MSME) with production capacities within the state would access to the fund by way of funding equipment supply and requisite working capital.

    These entrepreneurs are basically divided into two major categories namely cooperatives and SMEs both with distinct eligibility requirements and loan servicing conditions and terms, the financial commitment of the state to the programme is over a billion naira. For Niger State the government committed over a billion also to support businesses while Kogi state said that under the programme the small business owners with production capacities within the state would have access to the fund by way of equipment supply and requisite working capital.

    All the collaborations the bank said is to grow small business who are the engine of growth in the different states and also  a vehicle for job creation bearing in mind the millions of youth who roam the street on a daily basis looking for jobs. This intervention by BoI is in addition to a programme recently established to aid SMEs  access an online real time request platform to grow their businesses. The bank said it  took this path to starve the failure rate of applications and the inconveniences encountered by business owners to come physically to their office to make requests.

    BoI Managing Director, Mr. Rasheed Olaoluwa said it will remove the inconveniences suffered by applicants; he spoke toThe Nation in Lagos. He said: “We have come up with a loan tracking system in such a way that when you apply for loan we give you a code. We have also appointed 122 Business Development Service Providers (BDSPs) to help the businesses write good proposal that will attract loans from banks.

    Our newly introduced SME Customer portal where have value proposals and contact details of all our customers. Currently we have data base for over 400 SMEs. This also makes for easier interaction amongst our customers where they can be encouraged to do businesses together.”