The Nation Newspaper

Category: Industry

  • Firm records $726m revenue growth in 2018

    Multinational cyber security company Kaspersky Lab said it delivered a stable growth in 2018, recording increased revenue of $726 million, representing a four per cent Year-on-Year (YoY) revenue increase.

    The leading multinational cyber security vendor said it achieved success as a result of the trust customers and partners place in the company and its leading cyber security solutions and services.

    Among the strategic business areas that drove Kaspersky Lab’s growth in 2018 were digital and enterprise.

    For instance, the company saw an increase in digital sales (+4 per cent) and strong growth of 16 per cent in the enterprise segment, with 55 per cent growth in non-endpoint products and services in particular.

    Overall, the company secured healthy results in these business areas by delivering some of the best products and services in the industry, as well as new solutions and technologies that prevent, detect and respond to the most sophisticated cyber threats.

    Commenting on the year’s results, CEO of Kaspersky Lab, Eugene Kaspersky, said: “2018 was a crucial year for us. After all the challenges and unsubstantiated allegations we faced in 2017, we had a responsibility to show that the company and our people deserve the trust of our partners and customers, and in turn, to continue to clearly demonstrate and prove our leadership.

    “Our continued positive financial results are proof of this, demonstrating that users prefer the best products and services on the market and support our principle of protecting against any cyber threats regardless of their origin.”

    In 2018, Kaspersky Lab advanced the progress of its Global Transparency Initiative by undertaking a number of significant actions.

    Notably, the company began the relocation of its IT infrastructure to Switzerland and opened the first Transparency Centre in Zurich. It also implemented an audit by one of the big four professional services firms of the company’s engineering practices around the creation and distribution of threat detection rule databases.

    Today’s ultra-connected global landscape requires increased transparency from organisations, and this unique initiative demonstrates Kaspersky Lab’s clear commitment to assuring the integrity and trustworthiness of its solutions in the service of the customers.

  • EU boosts agri-business in Nigeria, others with €45m

    The European Union (EU) has announced the provision of 45 million Euros to support smallholder agri-businesses in rural areas in Nigeria and other African countries.

    The EU Commissioner for International Cooperation and Development, Neven Mimica, made this known during the inauguration of the support fund in Rome.

    The support, known as the new Agri-Business Capital (ABC) Fund, would help deliver on the Africa-Europe Alliance for Sustainable Investments and Jobs.

    At the launch, organised by the International Fund for Agricultural Development (IFAD), Mimica said the EU was committed to boosting agri-business investments in Africa.

    The Commissioner also expressed EU’s commitment to strengthening livelihoods and creating sustainable jobs in rural areas, especially among traditionally under-served communities.

    “The ABC Fund will help us achieve this – which is why it has our full backing. The EU has made 45 million euros available to the fund.

    “On top of this, the Luxembourg Government and the Africa Green Revolution Alliance, an international NGO, are contributing five million euros and five million dollars respectively.

    “The new ABC Fund, established by IFAD, is primarily geared towards individual smallholders and farmers’ organisations, with loan sizes from $25,000 to $1million (about €22,000 – €885,000), thus improving their access to finance.

    “This “missing middle” has the potential to be profitable and to impact development, but has lacked sufficient funding until now,” Mimica said.

    The Commissioner said the EU was expected to mobilise more than 200 million euros in investments and could benefit up to 700, 000 households in rural areas.

    According to him, the ABC Fund was a major blending operation for agricultural investments in developing countries.

    “It covers direct investments such as small-scale loans for small and medium-sized enterprises, farmers’ organisations and ‘agri-preneurs’, along with indirect investment in local financial institutions for subsequent on-lending.

    “It builds on existing IFAD development activities to screen opportunities and reduce the risk attached to subsequent investments.

    “It is expected to attract significant additional funding from other sources – private and impact investors alike,” the Commissioner explained

     

  • The road to inclusive, diversified economy

    Despite a slow down after coming out of recession in 2017, the economy looks good to return to the path of inclusive, diversified and sustainable growth. Analysts are optimistic that with the sustained implementation of the Economic Recovery and Growth Plan (ERGP) and the 2019 Budget, the economy will maintain its recovery this year, with real GDP growth hitting 3.01 per cent, up from 0.8 per cent in 2017. This, they say, will depend on improved infrastructure and proper coordination of fiscal and monetary policies and exchange rate stability, among others. Assistant Editor CHIKODI OKEREOCHA reports.

    The prognosis for the economy is heart-warming. From a meagre 0.8 per cent real Gross Domestic Product (GDP) growth in 2017, when it emerged from a debilitating recession, Nigeria’s economic growth trajectory may have turned the corner, as real GDP growth is projected to increase to 3.01 per cent this year, after it hit 2.1 per cent last year.

    With this favourable outlook, economic experts and financial analysts are upbeat that the economy will continue to maintain its recovery this year, encouraged largely by hopes of the sustained implementation of the Economic Recovery and Growth Plan (ERGP), the 2019 Budget Proposal as well as increased allocation to infrastructure provisioning.

    Minister of Budget and National Planning Senator Udoma Udo Udoma personified this growing optimism when he said with the sustained implementation of the ERGP, the economy will continue to maintain its recovery in this year as the real GDP growth is expected to increase from 0.8 per cent in 2017 to 2.1 per cent in 2018 and 3.01 per cent in 2019.

    The ERGP is the Federal Government’s medium-term economic recovery plan launched by President Muhammadu Buhari in April 2017. It charts a course for the Nigerian economy over a four-year period, 2017–2020. Its vision is to restore economic growth, invest in Nigerians, and to build a globally competitive economy.

    The plan aims to achieve these by focusing on five execution priorities: stabilising the macroeconomic environment; achieving agriculture and food security; ensuring energy efficiency (especially in power and petroleum products); improving transportation infrastructure and driving industrialisation primarily through Small and Medium Enterprises (SMEs).

    The ERGP specifically set an ambitious target to grow the economy by 2.19 per cent in 2017 and subsequently, seven per cent in 2020. The 140-page document also seeks to reduce unemployment from 13.9 per cent as at the third quarter of 2016, to 11.23 per cent by 2020. This translates to the creation of over 15 million jobs or an average of 3.7 million jobs per annum.

    In its second half of its implementation, the ERGP, which excited both the government and members of the Organised Private Sector (OPS), also projected that inflation rate will trend downwards to a single digit by 2020.

    On the strength of this, Udoma said with the continuation of the prudent management of foreign exchange reserves by the Central Bank of Nigeria (CBN), inflation is expected to trend downwards to single digit of 9.98 per cent in 2019, from 11.44 per cent as at December 2018.

    The Minister, who spoke at the recent Deloitte Dialogue on Nigeria’s Economic Outlook for 2019, in Lagos, also hinged his optimism on the improved coordination of fiscal and monetary policies, exchange rate stability, improved oil export earnings and capital inflows.

     

    Why sustaining the ERGP

     implementation is key

    It is easy to see why Udoma and indeed, other analysts and stakeholders are upbeat that the sustained implementation of the ERGP will steer the economy to the path of diversified, inclusive and sustainable growth capable of creating jobs.

    Despite initial doubts over the realisation of its objectives within its stipulated timeline, some milestones have been recorded, fuelling hopes that if sustained, the medium term plan may be the tonic to turn around the fortunes of the economy.

    For instance, one of the milestones was the launch of the ERGP Focus Labs to fast-track the plan’s implementation.

    The ERGP Focus Labs is a targeted six-week intervention that brings together all stakeholders to identify bureaucratic bottlenecks impacting medium-scale and large-scale investments projects in Nigeria and then generate ideas and resources to resolve them.

    The first phase of such labs was held in Abuja, from March 12 to April 22, 2018. At the sessions led by Vice President, Professor Yemi Osinbajo, investors were said to have left the focus labs convinced that they were the better for it.

    Investors received all the assistance they require to overcome the teething problems that are usually associated with business start-ups.

    For instance, one of the outcomes of the focus labs was investors’ realisation that the transformation of the agro-allied sector for the objective of achieving self-sufficiency in food production and export was possible.

    Investors in this sector were said to have formed strategic partnerships that would boost their businesses in terms of identification of funding opportunities, increase in capacity utilisation and marketing.

    Similarly, investors in manufacturing, especially Micro, Small and Medium Enterprises (MSMEs) were exposed to opportunities that exist for them to unlock their potential, grow their businesses and contribute to building an economy that would compete with the industrialised economies of the world.

    The focus labs identified projects that can boost commercial and industrial development, employment generation with positive impact on families, local sufficiency and export for the much needed foreign exchange, and also contribute to GDP growth.

    Osinbajo summed up the success of the exercise when he announced that it had identified private-sector projects worth about $22.5 billion – and with a potential for 500,000 jobs (in agriculture, transportation, manufacturing and processing, power and gas) – for unlocking by 2020.

     

    Turning to proposed 2019 budget

    Udoma was emphatic that the proposed 2019 Budget was intended to further reposition the economy on the path of faster, inclusive, diversified and sustainable growth, and to continue to lift a significant number of Nigerians out of poverty.

    “Government is committed to growing the economy and accordingly, the 2019 Budget Proposal has been designed to continue to provide the stimulus and support required to spur growth in the economy,” he stated, at the Deloitte Dialogue.

    The Minister indicated that the 2019 Budget was another step in the country’s journey to ensure diversified, inclusive, sustainable growth, creating jobs for the teeming population and prosperity of Nigerians.

    He noted that although, the current real GDP growth performance is still sluggish, it was expected considering that the economy was just recovering from recession. He added that it however, indicates a positive momentum, especially with regard to the growth of the non-oil sector.

    “Our aim is to take all measures necessary to ensure that we increase the growth rate whilst maintaining fiscal sustainability,” Udoma assured.

    Explaining the basis for the oil price projections in the budget, he said oil prices depend on the interaction between supply and demand for oil in international markets. He, however, said it is the supply-side factors that have been mainly responsible for the price increase in 2018 and the recent decline.

    Although, crude oil price soared in the second half of 2018, rising as high as $81.20/b on September 24, 2018 – a four-year high – it declined towards the end of 2018, falling below the 2019 budget benchmark of $60/b.

    While the government is obviously concerned about this recent trend, most analysts believe the price will recover in the course of 2019, and so the Federal Government has not seen any need to adjust its benchmark price of $60.

    However, the Minister assured the gathering that if at any time prior to the passage into law of the 2019 Budget by the National Assembly (NASS) there is strong reason to believe that this benchmark price of $60 is unlikely to be realised, then the Executive will, of course, engage with the NASS to agree on a lower benchmark price.

    On oil production levels, the Minister said President Buhari has directed the Nigerian National Petroleum Corporation (NNPC) to work hard to achieve the 2.3 million barrels per day (mbpd) budget target.

    “The ERGP oil production target for 2019 is 2.4mbpd, NNPC production submission is 2.45mbpd. We have revised the ERGP target and NNPC forecast downwards to 2.3mbpd for the 2019 Budget proposal,” Udoma said.

    He explained that the 2019 proposed budget size is smaller than the 2018 Budget because of the need to contain the size of the deficit so as to keep borrowing within prudent limits.

    The Minister pointed out that the proposed deficit of N1.859 trillion in 2019 is about 1.33 per cent of GDP, which is within the three per cent threshold stipulated in the Fiscal Responsibility Act (FRA) 2007.

    He indicated that even though government has been increasing allocation to infrastructure, government spending alone will be insufficient to address the infrastructure needs of the country.

     

    The huge infrastructure deficit

    Of all the issues hurting the ERGP’s implementation and making the realisation of its set objectives almost impossible, the nation’s huge infrastructure deficit particularly inadequate electricity supply is perhaps, the most formidable.

    Although the ERGP recognised the fundamental role of power to the development of all sectors of the economy, Nigeria has not made much progress in boosting electricity supply to homes and businesses.

    The country’s plan to expand the power sector infrastructure and achieve 10, 000MW by 2020 has come under threat. For instance, the nation’s installed power generation capacity is put at 12,000MW, but actual output stood at about 5,207.57MW as at December 26, 2018.

    This is barely enough to power an economy as big as Nigeria’s, particularly one that recently exited a debilitating recession, requiring an adequate, steady and reliable electricity supply to boost the real sector’s productivity and competitiveness.

    The Lagos Chamber of Commerce and Industry (LCCI) Director-General, Mr. Muda Yusuf, put the situation in perspective when he said the power crisis has continued to pose severe challenges to private sector operators, impacting adversely on their productivity.

    “Throughout last year, we received complaints across sectors about high energy costs especially high expenditure on diesel, higher cost of and scarcity of gas, and payment demand by electricity distribution companies (DisCos) for power not supplied,” he said.

    Yusuf further stated that the situation continued to take its toll on the bottom line of investors and SMEs, adding that some real sector companies reported that they spend as much as 20-25 per cent of their total operating cost on provision of alternative power supply and payment to DisCos.

    The LCCI chief, who emphasised that the provision of power remained at the heart of the ease of doing business in Nigeria, however, noted the government’s efforts in addressing the perennial power supply shortage and the deeper commitment to alternative sources of power including off-grid initiatives.

    To get round the infrastructure challenge, Udoma said the government was encouraging Private-Public Partnerships (PPPs), while tax incentives are being provided to encourage private sector investment in infrastructure.

    He also said the Executive Order 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme was signed by the President on January 25, 2019.

     

     

     

     

    “The scheme seeks to leverage private sector capital for the development and refurbishment of road networks in industrial clusters and key economic areas in the country.

    “It entitles private investors to full recovery of the cost incurred on the road project(s) in the form of a Road Infrastructure Tax Credit, which can be utilised against participants’ future CIT payable to the Federal Government”, he explained.

    The Minister also said government will continue to provide improved access to funding and supporting infrastructure to encourage small businesses, in particular.

     

     

    “Government will also continue with the current emphasis on power, roads and rail. We shall continue to expand generation, transmission and distribution of power from the national grid while developing innovative off grid solutions for schools, hospitals and markets,” he promised.

    According to him, efforts to improve hard infrastructure will be complemented by expanding reforms in the ease of doing business. “We will continue to remove obstacles, reduce costs and ensure timely delivery of services so as to improve the environment for the private sector,” he assured.

    However, the consensus is that if government fails to make good its promises and also keep faith with proper coordination of its fiscal and monetary policies while maintaining exchange rate stability, the envisaged inclusive and sustained growth will come the way of the economy.

     

  • Hospitality: Firm to open ninth property in Nigeria

    Multinational hotel brand Marriott International, Inc. said it is on track to open the Four Points by Sheraton, Ikot Ekpene, Akwa-Ibom State, this year. It will be its ninth property in Nigeria.

    Marriott International, based in Bethesda, Maryland, USA, encompasses a portfolio of more than 6, 900 properties in 30 leading hotel brands spanning 130 countries and territories.

    The company, which operates and franchises hotels and licenses vacation ownership resorts all around the world, said it expects to grow its current footprint in West Africa by 75 per cent with the addition of nine new hotels and more than 1, 800 rooms by the end of 2023.

    Currently operating 12 properties across Nigeria, Ghana, Mali and Guinea, Marriott International plans to enter Benin and Ivory Coast as a part of its development pipeline.

    In 2019, the company said it is on-track to open the Four Points by Sheraton Ikot Ekpene, its ninth property in Nigeria, and the Protea Hotel by Marriott Accra Kotoka Airport in Ghana.

    This announcement came as the international hotel brand said it continues with its expansion across Africa with three new deal signings across North and West Africa, reinforcing its commitment to expanding its presence across the continent.

    The company in a statement made available to The Nation during the weekend said the new deal signings highlight its growth in Morocco and Ghana, while marking its debut in Liberia.

    The signings were announced during the Forum de l’Investissement Hôtelier Africain in Marrakech, Morocco. The Forum unites North and West African countries in a bid to develop their economies and support hospitality investment.

    The Forum connects business leaders from international and local markets – driving investment into tourism projects, infrastructure, entertainment and hotel development across the region.

    “New and established markets across North and West Africa continue to present us with immence opportunities to further enhance and diversify our portfolio in the continent,” Chief Development Officer, Middle East & Africa at Marriott International, Jerome Briet, said.

    Briet further said: “The new deal signings further strengthen our robust development pipeline, which is a result of our long-established presence in Africa and the trust owners have in Marriott International and our compelling portfolio of diverse brands.”

    The three new hotel signings announced during the Forum de l’Investissement Hôtelier Africain include Four Points by Sheraton Monrovia, Residence Inn by Marriott Accra Kotoka Airport, The St. Regis Marrakech Resort.

    Marriott International, which targets strong growth momentum across North and West Africa, said it is on track to expand its footprint in Africa to 200 hotels by the end of 2023. The North and West African regions play a pivotal role in the company’s overall growth strategy for the continent.

    The company specifically said in West Africa, it expects to grow its current footprint by 75 per cent with the addition of nine new hotels and more than 1,800 rooms by the end of 2023.

  • NB Plc embarks on nationwide entertainment campaign

    Brewery  giant, Nigerian Breweries  Plc  has  embarked   on a nationwide  campaign to extend the deluxe live football and music experience to Nigerians.

    So far, football fans have been  treated to premium entertainment experience  and  where fans were given exclusive invites to special screening of matches.

    Under its   billing, rap icon, M.I Abaga took the Choc Boys Nation tour to Abeokuta on Sunday evening , February 10  where he delivered a night to remember as A-list artistes graced the stage to thrill music fans in Abeokuta. After memorable shows in Abuja and Ibadan, fans in Abeokuta had high expectations, and M.I & friends certainly didn’t disappoint as the likes of Blaqbonez, C-kay, AQ and Loose Kanon delivered stellar performances which delighted all in attendance. The show was proudly sponsored by Gulder and Legend, two brands from the stables of Nigerian Breweries. Gulder is fresh off a successful sponsorship of social media week, in which it hosted an exciting panel conversation themed around its new campaign of “Own Your Journey”. Gulder aims to communicate this brand narrative to the younger demographic. Hence its decision to be part of the CBN Tour, as well as its support M.I, who has transcended the times and managed to remain relevant and consistent in Nigerian pop-culture, all whilst owning his Journey to superstardom. Speaking after the event, Brand Manager, Gulder, Kolawole Akintimehin spoke of Gulder’s involvement in the Choc Boy Nation Tour explaining – “We believe young people are the future, and we want to be part of their success stories. We know a lot of young people are inspired by M.I and rightfully so. He is an accomplished entertainer whose rise to prominence has seen him become one of the most influential personalities in the music industry. We feel in a lot of ways, M.I is a great example of Gulder’s new campaign. He has never shied away from challenges and has sought to grow from stride to stride, owning his journey along the way. With the CBN Tour, we are able to reach this young demography and inspire them to become the best they can be, urging them to never depart from their path but to own their journeys instead”.

    On Sunday, February 10, excited football fans were ushered into a world of football at Ago Palace, Okota as Manchester City faced off Chelsea at the Etihad Stadium in the Premier League’s most intense clash of the weekend. The Star Euro Club experience held simultaneously in Lagos, Benin and Owerri and each venue housed hundreds of football fans as they cheered their favourite teams to victory. In a match that required Manchester City to defeat their opponent from the west side of London in order to maintain their lead at the summit of the EPL, the  Manchester club came out of the blocks with attacking vigour, probing Chelsea’s half of the pitch. The attacking proved too much for Chelsea and they were behind just 4 minutes into the game when Raheem Sterling Latched on to a loose ball from the center of the box to put the citizens ahead. Minutes later Sergio Aguero made it 2 after a mistake from Ross Barkley.

    Aguero added to the tally further with a shot from outside the box which Kepa Arizabalaga couldn’t keep out. Sterling added further gloss to the score sheet with a brace and Aguero completed his hartrick from the spots in a dominant display from Guardiola’s side. At the end of 90 minutes, there was no doubt to who the better team was as City continued to fight to retain their EPL crown. Speaking at the event, Portfolio Manager, National Premium Brand NBPlc., Sarah Agha, stated that”Star has always been a proud supporter of football partnering with six European clubs, including FC Barcelona, Arsenal, Juventus, Real Madrid, PSG and Manchester City. These sponsorship of the further proves the deliberate effort by the brand to strengthen and deepen the relationship with Nigerian football fans. Going forward, a bottle of Star would symbolise more than just another lager, and would now signify sharing the brighter side of life with the beer brand”.

     

  • Industrialisation: Special economic zones offer fresh vista

    A fresh impetus may have come the way of Nigeria’s drive for industrialisation. Courtesy of Projects Made in Nigeria Exports, otherwise known as Project-MINE initiative, the Federal Government seeks to boost manufacturing’s share of GDP to 20 per cent. Through MINE, which uses Special Economic Zones (SEZs) that offer advanced infrastructure and facilities at competitive costs, it is also eyeing $30 billion in annual export earnings and 1.5 million jobs by 2025. If properly implemented, this could be the tonic to stimulate rapid and inclusive industrialisation. Assistant Editor CHIKODI OKEREOCHA reports.

    The Federal Government appears unrelenting in its push for rapid, inclusive and sustainable industrialisation, job creation and diversified export earnings. Undeterred by the barrage of import ban on Nigeria’s agro-allied products by some importing countries over the failure to meet international quality standards, government has, this time, turned to the use of export-oriented Special Economic Zones (SEZs).

    SEZs operate against the background of highly efficient infrastructural facilities, less bureaucracy and streamlined one-stop-shop operational procedures. This is partly because of the bespoke incentives and enabling environment offered to businesses that operate in such zones. They are identified as investors’ haven capable of attracting the much-need Foreign Direct Investments (FDIs), generating employment, and boosting trade and industrialisation.

    Consequently, governments the world over are increasingly identifying such zones as veritable tool to diversify their economies and fast track industrialisation. Besides, the concept bodes well for local and foreign investors looking for jurisdictions where they would save cost and maximise returns on investment. Already, local manufacturers and would-be investors in the SEZs have been assured of up-to-date infrastructure to help overcome their infrastructure disadvantages.

    The Ministry of Industry, Trade and Investment, Dr. Okechukwu Enelamah, explained that the aim of the SEZs was to promote the cluster effects gained by locating similar manufacturing businesses together, as well as the need to improve the utilisation of Nigeria’s factor endowments and comparative advantages.

    Others are the need to create local models of global best practice in the provision of hard and soft infrastructure and an enabling business environment. “If you study other countries that industrialised rapidly, you will find out that one of the things they did right was to have these SEZs and industrial parks that are world class, which means that all the infrastructures are there and all the requirements are in place,” Enelamah said.

    The minister, who spoke at the end of a weekly Federal Executive Council (FEC) meeting in Abuja, recently, said plans have been concluded to set up SEZs across the six geo-political zones of the country. He gave details of the project location: “We are going to do one in Lagos State Lekki Free Trade Zone Area, one in Katsina in Funtua Cotton Cluster Zone Area and another one in Abia in Enyimba City.

    “We are also going to develop to world class standard in the existing two zones that the government has in Calabar and Kano. And in addition, the FEC also approved pre-development work to start and develop Green Field Special Economic Zone in Akwa-Ibom, in Benue and in Ebonyi, Edo, Gombe, Kwara and Sokoto State with a further roll out to other locations in phase two.”

    To demonstrate government’s commitment to the project, President Muhammadu Buhari recently announced the establishment of the Nigeria SEZ Investment Company Limited. The company was charged with driving the expansion of the initiative and ensuring the participation of public private partnerships involving the Federal and State Governments, as well as local and foreign private investors in the project.

    The occasion was the signing of the $30 billion agreement between the Nigeria SEZ Investment Company Limited and strategic investment partners in Abuja, recently. The investment partners include the Africa Export and Import Bank (AFREXIM Bank), Africa Finance Corporation (AFC), Bank of Industry (BoI), Nigerian Sovereign Investment Authority (NSIA) and the African Development Bank (AfDB).

    The agreement, which may have set the stage for Nigeria’s emergence as an industrialised nation, was signed by AFREXIM Bank President Professor Benedict Oramah, BoI Managing Director Mr. Olukayode Pitan and NSIA Managing Director, Uche Orji. The plan was to leverage on the agreement to drive Nigeria’s industrialisation and boost export earnings from made-in-Nigeria products.

    The FEC, The Nation learnt, had earlier approved the implementation of “Projects Made-in-Nigeria Exports”, otherwise known as “Project-MINE initiative,” which, according to Buhari, will generate $30 billion and create 1.5million jobs by 2025. It will also use the SEZs to achieve the objective of boosting the share of manufacturing in Gross Domestic Product (GDP) to 20 per cent.

    MINE is a presidential special priority intervention programme implemented by the Ministry of Industry, Trade and Investment, but under Buhari’s direct supervision. MINE was aimed at developing world class export-oriented SEZs across the six geo-political zones of the country.

    This, according to him, will spur industrialisation by offering advanced infrastructure and facilities to local and foreign investors at competitive costs. He added that Project MINE was conceived to position Nigeria as the pre-eminent manufacturing hub in Sub-Saharan Africa and a major exporter of made-in-Nigeria products to the West African sub-region, the entire Africa and the World.

    The project and its ambitious targets particularly the aspect that seeks to boost the manufacturing sector’s contribution to GDP by 20 per cent resonate with real sector operators particularly manufacturers. Many of them are dissatisfied with the sector’s current 9.5 per cent contribution to the GDP, compared with South Africa’s 15 per cent, for instance.

    Consequently, manufacturers under their umbrella association, Manufacturers Association of Nigeria (MAN), set for themselves a target to substantially improve the sector’s contribution to GDP this year. MAN President Mr. Mansur Ahmed said as part of efforts to change the sector’s narrative, MAN will establish well-structured and mutually beneficial linkages between big companies and smaller ones.

    Ahmed, who spoke during the recent MAN annual media luncheon in Lagos, also said under his watch, MAN will expand the scope of strategic corporate partnerships not just in the country, but in Africa at large. He added that the association will also promote policy consistency in a manner that gains already made are not pulled back while ensuring the revival of sectors that are currently struggling.

     

    Wooing investors

    Although, Project MINE is said to have secured early commitments from domestic and foreign investors in textile and garments, as well as agro-processing segments of the manufacturing sector, government appears to be leaving nothing to chance to ensure that the initiative becomes the toast of investors.

    For instance, Buhari dangled the proverbial carrot to investors via an open invitation to experienced SEZ developers and operators who he said were needed to partner with the government to upgrade the Free Trade Zones in Calabar and Kano, and to offer first-class standards of infrastructure and facilities.

    While government awaits the completion of the process of bringing in these investors, the FEC was said to have moved a notch higher when it approved the award of contracts in excess of N19.45 billion for the needed investment in Calabar and Kano Free Trade Zones. It was the highest amount of capital investment ever in the history of these zones. And work in those zones is currently ongoing.

    The President also said the Federal Government had allocated funds to upgrade the capabilities of management and the systems in the Nigeria Export Processing Zones Authority, (NEPZA) to strengthen it as a regulator of the SEZ. This was in addition to the allocation of substantial resources to the provision of “outside the fence” infrastructure to ensure that the SEZs are connected to global, regional and domestic markets.

    “We are reviewing our incentive framework to ensure competitiveness relative to the other countries with whom we are in the race to attract export-oriented global manufacturing investment. We will extend the early successes we have achieved in Ease of Doing Business to the areas critical to globally competitive export-oriented manufacturing operations,’’ Buhari said.

    The Managing Director/CEO of Oil and Gas Free Zone Authority (OGFZA), Mr. Umana Okon Umana, admitted that the administration’s Ease of Doing Business initiative created a better enabling environment for businesses to make more contributions to the national economy through the Oil and Gas Free Zones (OGFZs).

    While noting that much of the significant contributions of the OGFZs to the national economy were the result of deliberate policy reforms under the Buhari-led administration, he said the Ease of Doing Business initiative restored confidence among foreign investors in Nigeria as an investment destination.

    The OGFZA boss, who made these known in his presentation at an oil & gas forum held in Lagos, recently, titled “Oil & Gas Product Manufacturing: Understanding the Importance of Oil and Gas Free Zones,” said the special operating environment put in place in the free zones was meant to incentivise the use of the zones as manufacturing hub for economic diversification.

    He listed some of the bespoke incentives offered to businesses that operate in the free zones to include exemption from all forms of taxation, including federal, state and local government taxes; exemption from expatriate quota policy applicable in the customs territory.

    Other incentives include exemption from customs duty on imports for value-added production; express processing of entry visas; the most expeditious clearance of cargoes; express processing of entry paperwork through the one-stop-shop policy and a host of other incentives.

    According to Umana, these led to significant cost savings and improvements in timelines for operations. The changes in the operating environment in the free zones have also seen commitments in new investments valued at more than $8 billion in the coming years.

    The consensus of operators and industry stakeholders is that when the new SEZs in the six geo-political zones of the country fully come on stream and some of these mouth-watering incentives are extended to businesses that will be operating in those zones, Nigeria may well be on its way to achieving her dream of becoming sub-Saharan Africa’s manufacturing hub.

    The realisation of such manufacturing hub status, it is widely believed, will naturally come with it other deliverables envisaged by the Project MINE initiative. These include boosting manufacturing’s share of GDP to 20 per cent, hitting the projected $30 billion in annual export earnings and creating 1.5 million jobs by 2025.

  • Reduce cash reserve ratio, industrialists, others urge CBN

    Some industrialists, manufacturers and farmers have urged the Central Bank of Nigeria (CBN) to reduce the Cash Reserve Ratio (CRR) in order to free up more funds for banks to provide credit to the real sector.

    The CRR is a certain percentage of the total bank deposits that has to be kept in the vault of the CBN, and banks do not have access to that amount for any economic activity.

    Some industrialists and manufacturers, who spoke with The Nation, said the call for a reduction of the CRR became necessary because of the ability of banks to extend credit to businesses had been stifled, having exceeded the 80 per cent loan-to-deposit regulatory threshold.

    For instance, one of the industrialists, Mr. Chief Remi Oladunjoye, observed that at the high prevailing interest rate, access to loan to the industrial sector had remained subdued due to attractive risk-free lending to government to fund its budget deficit.

    Oladunjoye recommended a downward review of the CRR to enable deposit money banks to increase credit facility to the real sector.

    “While this is imperative at this time, the apex bank must first raise its regulatory or oversight efficiency to forestall systemic risk that could be necessitated by high non-performing loan and poor capital adequacy ratio,” Oladunjoye said.

    According to him, inflationary pressure poses greater threat to businesses, adding that the current high inflation rate though decelerating was structurally induced.

    In view of this, he said fiscal instruments to improve business conditions and critical infrastructure such as roads, rail and power are needed to stimulate investment in the near to medium term.

    Oladunjoye explained that Nigeria’s efforts towards economic diversification through the manufacturing and agricultural sectors have consistently suffered setbacks because of grossly inadequate financing structures that have discouraged manufacturers and farmers

    “An estimated 500 million smallholder farming households, representing 2.5 billion people worldwide, rely on agricultural production for their livelihoods, and financial inclusion has been the most difficult challenge of this group.

    “Realising the agric financial challenges, international organisations, foundations and individuals have channelled more resources especially to resource-poor farmers in developing countries. However, agricultural financial inclusion in Nigeria appears elusive,” he said.

    Also, a live stock farmer in Ikorodu area of Lagos State, Mr. Felix Johnson, expressed concerns over lack of access to agricultural loan facilities from financial institutions. He noted that impossible conditions of the loans have made it extremely difficult for farmers to access them.

    “Although, the Federal Government is doing everything possible to empower farmers and the small scale industry, the bureaucracy is a big problem, and interest rate on industrial loan is very high,” Johnson said.

    He also lamented that the nine per cent interest rate obtainable from CBN loans was too high for Nigerian farmers. “If the government is serious, the rate should not be more than five per cent, because if one operates in Nigeria, he has to generate power plus other costs, he added.

    But a financial expert, Mr. Adams Ayodele, said in a bid to enhance access to finance, the First Bank of Nigeria Limited and Access Bank Plc have committed N10 billion to be lent to firms that have good credit ratings.

     

  • Experts seek youth involvement in industrial, agric sectors

    Experts have urged the Federal and state governments to ensure that youths are adequately informed of the available opportunities in the industrial and agricultural sectors of the nation’s economy.

    The experts stated that there is need for the Federal and state governments to get more youths involved is the nation’s ongoing industrialisation drive aimed at boosting productivity, attracting massive investments and creating jobs.

    Speaking with The Nation, an industrialist, Mr. Funso Ayeni, said there was an urgent need for the Federal and state governments to ensure that many Nigerian youths are allowed to play major roles in driving growth and progress in the country.

    The President Muhammadu Buhari-led administration, Ayeni said, needs to draft a National Policy on Youths Engagement in Investment and Development (YEID) to reduce the high rate of unemployment and boost the economy.

    He said the high number of youths that can be engaged in agricultural and industrial development justifies the need to create an enabling environment that will catalyse the engagement of many Nigerian youths in the investment market and trade.

    He noted that youth entrepreneurship and investments are often seen and hailed as drivers of economic growth and development and positive change in the world so, Nigeria should not be an exception.

    Ayeni further said: “The Federal and state governments must look into developing techniques and models that will enhance the rapid and positive involvement of the Nigerian youths in their industrial, agricultural and economic development programmes.

    “The government must realise that youths have a large stake in our economic growth because they are the engine room of every nation; this could be supported by their large number and the figures provided by the National Population Commission and the United Nations.”

  • Ajaokuta Steel ’ll soon come to life, says Osinbajo

    The Ajaokuta Steel Complex in Kogi State will soon start working again for the benefits of the people, Vice President Yemi Osinbajo, has assured.

    He gave the assurance at the Civic Centre in the Palace of Attah of  Igala, Dr. Michael Idakwo Ameh Oboni, as part of the administration’s campaign for the coming elections.

    Osinbajo said the Federal Government had gone very far on the rivitalisation of the complex. “Unlike the previous government, we have gone beyond our promises. We have come to the point where we are implementing and I am sure that very soon you will see for yourself that Ajaokuta has come to life,” he said

    The vice president said when completed the project will make business activities in the area to be active and many people will be employed.

    According to him, the government has finally completed the Itakpe-Warri Rail road in preparation for the revitalisation of Ajaokuta Steel.

    “Unlike the previous government, President Muhammadu Buhari is not only a honest man, but also a doer that gets things done.

    “You will need to see for yourself that we are going to test-run the Itakpe-Warri rail road in few days time, and you will see everything that is being put in place,” Osinbajo said.

    He said the administration had employed 500,000 youths under the N-Power initiative and would increase the number to one million when re-elected.

    “Our desire is that every Nigerian should live a good life and have the ability to put food on his table,” Osinbajo said, urging the people to come out en masse and vote for Buhari and All Progressives Congress (APC) candidates at all levels in the forthcoming general elections.

    Kogi State Governor Yahaya Bello restated that President Buhari had promised that the Ajaokuta Steel would be resuscitated and would be producing for Nigerians.

    He appealed to the people to get their Permanent Voter Cards (PVCs) and vote massively for all APC candidates, deliver them at all levels and avoid violence.

    The Attah of Igala, thanked the Vice President for coming to Kogi State, especially Igala land.

    “We, the people of Kogi and the entire Nigeria, are very grateful to God for saving your life and that of your crew members. We can see all good works you are doing, and it is left for us to reciprocate it because‘one good turn deserves another.

    “We need to agree and partner with you. Our governor is an indefatigable governor, full of wisdom and very hard working; we promise to support you,” the monarch said.

    Kogi Presidential Campaign Council Director-General, Mr. Edward Onoja, said the state had impacted the lives of the people            across the three senatorial districts.

     

  • ALSCON to restart production soon, says BPE

    The comatose Aluminum Smelting Company of Nigeria (ALSCON), in Ikot Abasi, Akwa Ibom State, is to be re-inaugurated by President Muhammadu Buhari to enable it to restart production.

    The Bureau of Public Enterprises (BPE) Director-General (DG), Mr. Alex Okoh, who gave the hint through BPE’s Head, Public Communications, Mrs. Amina Othman, in Abuja, during the week, said the BPE and other critical stakeholders of the company would reach a comprehensive resolution on the teething problem of gas price and supply confronting the company.

    “Upon the resolution of the gas price and supply issues, a new agreement will be signed in line with the current realities.

    “It will also take into consideration the trend internationally, to allow ALSCON remain competitive in the global aluminum products market,” he added.

    The BPE DG said as the first step, the Bureau had requested Federal Government’s consideration and approval for the categorisation of ALSCON under a strategic industry.

    This, he said, was to enable it buy gas at a concessionary price so that the core investor in the company, DHL/RUSAL, would restart production and operate profitably.

    He recalled that following the signing of Addendum Number 2 to the Share Purchase Agreement (SPA) on January 17, 2018, the investor provided a roadmap to the company’s restart of production.

    Okoh said the document signed at the Ministry of Mines and Steel Development provided details on issues required for the operation of the company, including gas price and supply.

    He noted that when the company resumes operation, it would serve as a catalyst to the development and growth of the aluminum industry in Nigeria.

    He also said ALSCON’s resuscitation would create employment, conserve foreign exchange, serve the automobile and allied industries and create spin-off industries in the country.