The Nation Newspaper

Category: Industry

  • LCCI urges CBN to reduce cash reserve ratio

    The Lagos Chamber of Commerce and Industry (LCCI) has urged the Central Bank of Nigeria (CBN) to reduce the Cash Reserve Ratio (CRR) to increase credit to the private sector.

    Speaking with The Nation, LCCI President Mr. Babatunde Ruwase said the 22.5 per cent CRR by the CBN was too high.

    He said the CRR regime was not effective, as banks were grappling with bottlenecks in accessing the facility.

    He suggested that the CRR framework should be made flexible and faster by the apex finance sector regulatory agency.

    Ruwase added that the Federal Government needed to reduce the current rate at which it sterilises money from the banks because it makes the cost of funds higher for the banks.

    He, however, gave kudos to the CBN for its various efforts on job creation, improving credit for MSMEs, intervention in the agricultural sector, building robust payment system, exchange rate stability and maintaining strong external reserve, among others.

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    LCCI, he said, was in support of the move by the CBN in developing a Trade Receivable Portal to enable MSMEs trade their invoices with financial institutions to improve their cash flow.

    “We are, however, sceptical about the workability of this laudable idea judging by the current disposition of commercial banks to lending to MSMEs, except this trend is reversed,” Ruwase said.

    He commended the desire of the CBN to boost consumer spending through a lending framework that will involve large departmental stores, equipment leasing companies, automobile companies in partnership with financial institutions and credit bureaus.

    Ruwase, however, urged the CBN to put all the necessary measures in place before commencement to ensure that the intended goal is achieved, as consumer spending is critical towards ensuring economic growth.

    While acknowledging that all efforts put in place by the CBN in the last five years yielded the intended results, Ruwase, however, commended the CBN’s five year master plan.

    “This five-year plan of the CBN is indeed laudable and commendable. However, we recognise that the role of the CBN is in using monetary policies to stimulate growth of the economy while some of the planned targets are fiscal in nature.

    “It will, therefore, requires that a framework for collaboration with the major economic ministries and other stakeholders be put in place to be able to fully actualise what the CBN sets out to accomplish in the next five years,” Ruwase said.

  • NACC makes N69.7m

    The Nigerian-American Chamber of Commerce (NACC) recorded N69.7 million revenue in 2018, surpassing the N40.3 million revenue it recorded in 2017.

    About 69 per cent of the N69.7 million revenue came from members’ due and self-financing, with members’ due generating N19.3 million and self-financing yielding N28.8 million.

    NACC President, Mr. Toyin Akomolafe, who reeled out the figures during the chamber’s Annual General Meeting (AGM) in Lagos, said in the past three years, the NACC  improved its financial performance.

    Reviewing the chamber’s activities in 2018, Akomolafe said it engaged in topical issues, using the monthly breakfast meeting as a platform to discuss, interact and network.

    According to him, the chamber had  eight breakfast meetings, cutting across logistics, telecoms, oil and gas, real estate, and Small and Medium Enterprises (SMEs), among others.

    He said guest speakers at such meetings were drawn from the Lagos Business School; Nigerian Shippers Council; MainOne Cable; Nigeria Export Processing Zone Authority; Nigerian Content Development and Monitoring Board; Nextzon Business Services and General Electric.

    Read Also: Customs collects N54.1b in six months

    Akomolafe, however, said the most remarkable of these meetings were the launch of the Property, Construction and Infrastructure Business Group of the chamber and the social impact of the American businesses in Nigeria in partnership with the American Business Council.

    He said as part of the campaign for  capacity building, training were held for members and non-members, which covered various businesses, leadership and marketing skills. According to him, the past year witnessed a number of trainings as an improvement from 2017.

    “We shall continue to improve on our training offerings through partnership with experienced training facilitators in meeting the skills gap in the marketplace,” Akomolafe said.

    He also said the chamber led its trade mission to Washington DC.

    The mission, the president said, featured business to business interaction with the Nigerians in Diaspora on business opportunities, meetings with United States’African Development Foundation and Centre for International Private Enterprises.

    Akomolafe added that the delegates also participated in the Africa Trade and Investment Global Summit (ATIGS), pointing out that there was also an inward trade mission to the Chamber in May, with five companies from the US.

  • Chamber’s investment expo to boost home ownership

    The forthcoming ‘Abuja Investment Expo’ will provide affordable housing to the low and middle income earners in Nigeria, the Abuja Chamber of Commerce and Industry (ACCI) has said.

    ACCI’s Vice President, Commerce, Dr Johnson Anene, made this known in Abuja at a news conference on the expo scheduled for Abuja from July 30 to August 1.

    ACCI is organising the expo in partnership with Shelter Aid Organisation, a Non-Governmental Organisation, in the sector.

    The expo is expected to feature investment summit, exhibition of housing and housing programmes, mining products, made in Nigeria products, building financing technologies, land matters, mortgages and investment opportunities.

    Anene said ACCI decided to use the platform to involve housing estate developers to enhance home ownership in view of the huge housing deficit in the country.

    He listed the developers to include the Real Estate Development Association of Nigeria (REDAN), Brains and Hammers, Urban Shelter, Wiser Estate and other reputable private developers.

    “We want to use the platform to promote affordable housing by bringing the estate developers who have been tested to offer houses to off takers at cheaper rates.

    “There are houses that are completed, but people are not occupying them so we want to use this forum to facilitate their occupation.

    “The low income earners cannot afford these houses because of high prices. A lot of the housing developers will be auctioning houses with different packages and discount of 50 per cent.

    “We are introducing “Rent to Own” scheme whereby one will pay rent and liquidate the purchase price of the house,” he said.

    Anene said ACCI would equally use the expo to boost local production of building materials to deliver affordable housing at lower costs.

    He said the Chamber was in partnership with Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Manufacturers Association of Nigeria.

    He said the ACCI was also partnering the Nigeria Investment Promotion Commission (NIPC) and Nigeria Building and Research Institute (NIBRI) to actualise its plans at the expo.

    He said the chamber would introduce training of artisans in the informal sector in ACCI Business Entrepreneurship Skills and Technology Centre with a view to preparing them for lucrative employment.

    “The expo will feature business networking with both local and foreign chamber members and participants to boost businesses and investment.

    ACCI Director-General, Mrs. Tonia Shoyele, also said the real estate sector had been moribund with a lot of housing deficit which needed intervention.

    She urged the government to look into the sector and tackle the lingering problems.

  • Expert to businesses: incorporate technology to boost growth

    Philips Consulting Plc Managing Director Mr. Rob Taiwo has urged business owners to incorporate digital technology into their business models to achieve growth.

    Taiwo, who spoke during the company’s “Breakfast Roundtable” in Lagos, said emerging trends in digital technology would continue to impact on the workplace hence the need to embrace them to boost growth.

    Phillips Consulting is a leading provider of transformation, technology and outsourcing services, with offices in Lagos and Abuja.

    Taiwo said the company has been delivering integrated client solutions through its strategy and operations transformation and digital and technology consulting practice areas.

    Sharing insight into how a chat box once helped him resolve a problem with his iPod, he said there was the need for companies and businesses to incorporate digital technology, which provides immense opportunities for business growth.

    Senior Partner, Philips Consulting, Paul Ayim, also presented a video clip to show how technology was changing learning environments.

    According to him, digital learning is not a game of technology or fanciness; it is more a race for efficiency and competitive advantage in the marketplace.

    Also, Country Head of Human Capital, Stanbic IBTC Holdings Plc., Olufunke Amobi, explained that digital trends were volatile and causing changes in the skills required at the workplace, sometimes leading to retrenchments.

  • Fed Govt revives 11 fertiliser blending plants

    Eleven fertiliser blending plants with a capacity of 2.1 million metric tonnes (Mt)  have been revived across the country,  Vice President (VP) Yemi Osinbajo, has said.

    Osinbajo’s spokesman, Laolu Akande, made this known in a statement in Abuja. He said the vice president spoke at the Fourth National Discourse on Food Security of the Companion at the University of Lagos.

    The vp said self-sufficiency in food production remained a major pillar of the economic policy of the President Muhammadu  Buhari administration.

    According to Osinbajo, President Buhari has set a clear direction with his declaration that Nigerians must produce what they eat and consume what they produce.

    The VP said to improve local blending capacity, a fertiliser programme had been launched in collaboration with Morocco.

    He said the Federal Government  backed the programme with substantial budgetary allocation to agriculture from N8.8 billion in 2015 to N46.2 billion in 2016; and N103.8 billion last year.

    Osinbajo said agriculture grew by 14.27 per cent last year. He said through the Anchor Borrowers’ Programme, which the president launched in Kebbi in November 2015, credit was given to smallholder farmers, through the Central Bank of Nigeria (CBN) and 13 participating banks.

    His words: “So far, credit totalling N120.6 billion has been given to 720,000 smallholder farms cultivating 12 commodities, including rice, wheat, cotton, soya beans, cassava, poultry and groundnuts, across the 36 states and the Federal Capital Territory (FCT).

    “The Anchor Borrowers Programme is now digitised, with all farmlands’ GPRS mapped, biometric data of farmers captured, electronic cards issued and specific inputs are required. This has enhanced traceability and enhanced productivity and yield.

    “Today, we have 11 Fertiliser blending plants with a capacity of 2.1 million; fertiliser price has since dropped from N13, 000 per 50kg to N5, 500.

    “Today, but for a few drawbacks, we are confidently approaching self-sufficiency in rice production; that is from importing $5 million of rice daily.’’

    According to Osinbajo, official imports were down to two per cent, even as the Federal Government opened up opportunities for greater entrepreneurial activity in the sector, as there was far greater investment in value adding services in the value chain.

    He said the Federal Government, in partnership with Brazil, would facilitate the financing of the provision of machinery, equipment, input and services.

    “At the top of the mechanisation chain are six assembly plants to be activated and spread across the six geo-political zones.

    “The assembly plants will undertake the assembly of tractors and processing equipment, as well as light manufacturing of parts, which will be sent out to the service centres closer to the farmers across the length and breadth of Nigeria.

    “The first assembly plant, among a total of six to operate, to assemble tractors and implements, will be located in Bauchi State in an already existing facility owned by a private operator,” Osinbajo said.

    He said the Federal Government projected that almost 5,000 tractors would be assembled in Nigeria every year.

    The VP said with a substantial percentage of the world’s arable land and over half of that uncultivated, it was becoming clearer that Africa and Nigeria had the potential to become major food baskets in the world.

    According to him, China’s demand alone has 27 per cent of the world’s population, but only seven per cent of the world’s arable land for agriculture.

    “China needs two million tonnes of hybrid Soya beans per annum for livestock feed and vegetable oil; we have not met that demand.

    “Africa as a whole has also not been able to meet China’s demand for cocoa. How about goat meat? 120,000 carcasses of goat meat are required weekly in different Arab countries. There is still a major gap in supply here as well,” he said.

     

  • FrieslandCampina WAMCO posts N149.2b turnover

    FrieslandCampina WAMCO Nigeria Plc, makers of milk brands, Peak and Three Crowns, has recorded a turnover of N149.2 billion, representing a six per cent increase over N140.1 billion recorded in 2017.

    Profit before income tax increased by three per cent, from N15.9 billion reported in the previous year to N16.3 billion.

    The shareholders approved a total dividend payout of N9.27 per N0.50, having paid an interim dividend of N2.91 per N0.50 share in October 2018; and a final dividend payout of N6.36 per N0.50 share.

    The result was announced at the Company’s 46th Annual General Meeting (AGM) in Lagos, during the week.

    Although businesses generally experienced low consumer spends during the year under review, FrieslandCampina WAMCO showed significant commercial and financial improvement compared to 2017, recording impressive volumes through its brands.

    Its performance earned its board and management the shareholders’ commendation, with the shareholders noting that the 2018 result reflected a solid business and the strength of its operations.

    At the AGM, the company also declared major milestones in its Dairy Development Programme (DPP), which included construction of additional milk collection points to support milk collection; investment in milk trucks and farm machinery; and the establishment of four dairy cooperatives.

    Commenting on the Company’s first quarter performance and outlook for 2019, its Managing Director, Mr. Ben Langat, said FrieslandCampina WAMCO delivered a strong result in Q1 2019 with 10 per cent topline sales growth vs Q1 2018.

    “As a company, we remain positive and confident about the future. We are assured that our brands, which are leading in the market, will continue to grow. We will sustain the current initiatives that have proven to be effective and develop innovation that consolidates our market leadership to meet the everyday needs of our customers and consumers,” he said.

     

  • Nigeria’s non-oil export to UAE hits $608m

    The total value of Nigeria’s non-oil export to the United Arab Emirates (UAE) stood at $608 million in 2017, statistics from the Economic Research Department of Dubai Chamber of Commerce & Industry (DCCI) has indicated.

    The data, which was made available to The Nation yesterday, showed that while UAE’s non-oil export to Nigeria stood at $612 million in 2017, rising from $605 million in 2016, the value of her non-oil imports from Nigeria was $608 million, down from $730 million in 2016.

    While pearls and precious metals accounted for the largest share of UAE’s non-oil imports from Nigeria, valued at $590 million in 2017, wood and plaiting materials came second with total .import value put at $9.8 million. Vegetable products were valued at $5.8 million.

    On the other hand, machinery/electronics, transport equipment, base metals, plastic rubber and chemicals formed the bulk of UAE’s non-oil export to Nigeria. The value of machinery/electronics and transport equipment export stood at $313 million and $85 million, respectively.

    It, however, listed the high potential non-oil imports from Nigeria to include cocoa, sesame seeds, cashew nuts and natural rubber. High potential exports by UAE to Nigeria include electrical machinery, pearls/precious stones, copper and articles of leather.

    The Chamber listed the high potential sectors in Nigeria to further boost bilateral trade between Africa’s largest economy and the UAE to include agribusiness, packaging, manufacturing and energy, noting that Nigeria’s considerable oil reserves and significant potential in her agric sector are areas of strength.

    It, however, pointed out that Nigeria’s unemployment levels that have remained high and her business environment, which is in dire need of reforms are weaknesses.

    It also said Nigeria’s economic policy remains personally-focused, posing a threat to investor certainty. It added that oil production remains under Niger Delta militancy.

    Commenting, the Director, Marketing and Corporate Communication, DCCI, Mr. Rami Halawani, said as part of efforts to enhance future collaboration between businesses in the UAE and their Nigerian and other African counterparts, the Chamber was studying the possibility of establishing a representative office in Nigeria.

    Apart from Nigeria, Halawani listed other African countries to include Angola, Uganda and Central African markets. According to him, the Chamber already operates four representative offices within Africa, including Ethiopia, Ghana, Mozambique and Kenya.

    “Africa is rich in energy and mineral resources, but lacks the capital, resources and infrastructure to bring this natural wealth to the market.

    “The UAE has access to the capital required by Africa to unlock the potential of its natural resources as well as the infrastructure to sustain economic growth,” Halawani said.

  • Austria, Germany, Swiss seek stronger ties with Nigeria

    The delegation of German Industry and Commerce in Nigeria  in cooperation with the Austrian Embassy and the Consulate General of Switzerland, supported by the Consulate General of  Germany in Lagos and the Nigeria German Business Association (NGBA) has pledged to provide a solid platform for private enterprises in the country.

    Speaking on the  fourth edition of the Austrian-German-Swiss Business Outlook (AGSBO) yesterday in Victoria Island, Lagos, Deputy Consul General of Germany in Lagos, Ms. Alexandra Herr said  the long existing partnership and business relation between Nigeria and Germany in the areas of agriculture, food processing and manufacturing has led to the establishment of over 90 German firms in the country.

    “Some of the notable events and business delegations that was carried out last year such as the business and political delegations from Bavaria and Baden-Wurttemberg, trade missions in the energy sector as well as the agro-food and various trade fairs have  welcomed over 40 German companies to Nigeria under the German Pavilion,” she said.

    Herr expressed confidence that  interest in the local market will continue to translate into a series of initiatives, visits of trade delegations among others.

    “In the months to come, the German consulate will continue to work closely with the chambers of commerce and trade associations to promote bilateral trade relations between both countries,” she said.

    The Swiss Consulate General, Mr. Yves Nicolet  said  there are signs of recovery for the Nigerian economy as Swiss firms operating in the country has increased significantly from 45 to 54 within a year.

    He said there are  various initiative of the Swiss consulate to promote Nigeria as a business hub especially through the various event/exhibition platforms

    He said Swiss Nigerian Business Council was created in 2017 to inform and advise potential new companies looking to enter the  market.

    “Nigeria, especially Lagos remains a very important and potential place for business as there appear to be a lot of interest for Swiss companies to enter the Nigerian market,” he said.

    Commercial Attaché, Austrian Embassy , Mr. Hannes Scheiner said Nigeria is Austria’s second largest trading partner in Sub-Sahara Africa with Austria’s export to Nigeria fluctuating around 80 million Euro per year.

    Scheiner revealed that one of its major plans in 2020 is the re-launching of the Austrian lace in Nigeria through its participation in the Lagos Fashion Week 2020 edition.

    He said currently, Austria’a main export to Nigeria are high quality machine for the Nigerian manufacturing industry.

    He said: “We continue to see potential for economic exchange between Austria and Nigeria specifically as it relates to high quality, specialised machinery for the manufacturing industry; renewable energy solutions and environmental consulting; construction machinery and materials; supplies and general infrastructure improvement, but we also have an increased interest in the innovation and tech space”

     

     

  • Jumia eyes largest on-demand platform

    • Firm welcomes SoFresh

    Jumia Food Nigeria said it is working hard to become the largest on-demand paltform in the country.

    Its Managing Director, Guy Futi, who spoke during the unveiling of the partnership of the firm with So Fresh, a leading fresh food chain, in Lagos yesterday, said the firm remained focused on putting efforts into growing the brand and promoting healthy living among Nigerians.

    Futi said: “We remain focused on putting all our efforts into growing the business and becoming the largest on-demand platform in Nigeria.

    “As a business, we are always looking for new ways to serve our customers, such as through a partnership like this. I am particularly excited with So Fresh because this is an opportunity for us to support and sustain healthy lifestyle among Nigerians through the consumption of fresh foods which customers can now order from So Fresh on Jumia Food.“

    Also speaking on the occasion, the Chief Executive Officer, So Fresh, Goke Balogun, said the partnership will help So Fresh leverage Jumia Food’s visibility to grow the brand. So Fresh was founded in 2010 as Fruitivegies, changed its name to So Fresh in 2013 and currently has nine outlets in Lagos.

    “This is a natural partnership because Jumia Food is the leading and most reliable online food delivery platform in Nigeria while So Fresh is the number one healthy food chain in the country. We pioneered the healthy food industry in Nigeria and Jumia Food will help us deliver meals to our customers from the convenience of their homes and offices,” Balogun said.

    He further reiterated that this partnership will reinforce So Fresh’s mission to change the eating habits of Nigerian citizens, inspiring them to live fresh and live healthily.

    Balogun said:  “We will actively continue to drive our expansion across Lagos and other parts of the country and in the long run, this will enable more people to get on the healthy eating lifestyle.

    “We, therefore, assure our customers that we are constantly striving to attain the highest standards in food safety, quality and most importantly customer satisfaction.”

  • Cleric urges Nigerians to embrace production

    General Evangelist of the Christ Apostolic Church Worldwide Prophet Hezekiah Oladeji has urged Nigerians to embrace production in the interest of growing the country’s economy.

    Oladeji said: “Indeed, for any country to grow, it must be into production. There must be conscious efforts to turn Nigeria into a production economy. We should be able to produce with the avalanche of endowments that God has blessed Nigeria with.”

    The prophet, who spoke at Erio-Ekiti, Ekiti State, ahead of the yearly weeklong Apostle Ayodele Babalola Power Explosion Crusade, advised that Nigeria could kick-start industrialisation with production in the agricultural sector.

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    He said: “Production should be the pre-occupation of the youths. This will provide solutions to the employment needs of many Nigerians, as well as a means of turning away the minds of the youths from crime.”

    The cleric, however, advised the youths to always remember the Law of Retribution and so refrain from criminal activities and evil acts. “Youths must secure their tomorrow by shunning crime and criminality. What the youths should realise is that whatever evil or injustice they do to anyone shall surely come back to them in the later years. The youths must use their energies for good things.”