The Nation Newspaper

Category: Industry

  • Lagos trade fair: Visitors flood Japan pavilion

    A special zone at the Japan Pavilion, featuring a collection of products and services created by Japanese firms for women in Nigeria, was a beehive as many visitors stormed the place at the on-going Lagos International Trade Fair at Tafawa Balewa Square, Lagos.

    Some of the visitors, who started trooping the place on Saturday, the second day of the 10-day fair, said they could not resist Japan’s exciting innovation to this year’s trade fair called: “Made in Japan, Made for Women”, corner.

    They said the special zone introduced Japanese products and services that enrich women’s lives with more fashionable and convenient items, including cosmetics, hair wigs, shampoo, processed foods and seasonings, nail printers, consumer electronics (sewing machines, headphones, hair dryers), etc.

    This year from the stable of Japanese firm DMM.com LLC came a brand new nail printer model, which came out to the public for the first time in Nigeria. The amazing product was an object of attraction for women irrespective of age and class.

    Speaking with The Nation, the general Manager of Kaneka Corporation (Africa), Mr. Hiroshi Seko, said it was of utmost importance and great privilege for his firm to exhibit at the Lagos International Trade Fair 2018.

    He said since its introduction in 1982, the company’s product, Kanekalon, has won the love of Nigerian women for 36 years. He said the product’s strategic communication drive through events and media, which started in 2010, has strengthened the brand awareness.

    “There is no doubt that Nigeria is our biggest market as Kanekalon holds about 50 per cent market share in Nigeria. We are keen to support Nigeria’s economic growth, and this has been our driving force,” Seko said.

    He added: “We are also very excited to showcase our products, which are fibre for hair goods making, hair goods and hair care goods at this year’s fair, which is our first.”

    Kaneka Corporation (Africa) was one of the about 30 Japanese companies exhibiting at Japan Pavilion. Others with their array of quality and reliable brands and technologies include Panasonic, Koncept Autocentre (partner of Isuzu Motors), and Canon Central and North Africa, R.T. Briscoe Nigeria (distributor of Toyota’s trucks, forklifts, etc).

    There are also Massilia Motors (partner of Mitsubishi Motors), Denka Brothers International, Honda, and CFAO Yamaha Motor Nigeria.

    The Trade Commissioner and Managing Director of Japan External Trade Organisation (JETRO) Lagos, Mr. Shigeyo Nishizawa, said the Japan pavilion was one of the biggest at this year’s fair.

    JETRO is a Japanese governmental organisation that promotes mutual trade and investment between Japan and the rest of the world. It focuses on promoting investment and facilitating trade from Japan to Nigeria.

    Speaking with newsmen on the sideline of the fair, Nishizawa said without doubt, there was a huge difference in the size and number of exhibitors in Japan pavilion organised this year by JETRO compared to 2017.

    According to him, the 2017 pavilion had a gross size of 1, 750 metres square, with 23 Japanese companies, compared to 2, 125 metres square gross size, featuring about 30 Japanese companies this year.

    Nishizawa said the 30 Japanese companies exhibiting at this year’s fair include their local representative agents in areas such as food, vehicles, transportation machinery like motorcycles, trucks and auto parts; stationery, home appliances, power generators, and raw materials for cosmetics.

    Others are office equipment, industrial goods, electrical tools, fibre for hair making, hair care goods, dietary supplement, consumer electronics (sewing machines, headphones, and hair dryers), etc.

    The JETRO boss said the activities of Japanese companies in Nigeria were contributing to economic growth and development.

    “They create jobs, educate staff, transfer technology and share values of Japanese craftsmanship, which are key agenda of the Federal Government’s Economic Recovery and Growth Plan (ERGP),” Nishizawa said.

    The 2018 Lagos International Trade Fair opened on Friday November 2, 2018. The Fair, which runs for a total of 10 days, will close on Sunday, November, 11, 2018.

    The fair attracted a huge traffic of visitors seeking to take advantage of the networking opportunities and discounted prices.

     

  • Weighing options in bridging electricity supply gap

    The euphoria that greeted the privatisation of the power sector is over. Five years after the exercise, the anticipated improvement in electricity supply and overall sector performance have been abysmal. With consumers desperately searching for a sustainable solution to their electricity challenges, experts say investing in off-grid initiatives, including mini-grids and renewable energy, can reset the electricity supply industry for recovery. Assistant Editor CHIKODI OKEREOCHA reports.

    With a Doctor of Philosophy (PhD) in Rural Energy Development from the Institute for Energy and Sustainable Development (IESD), De Montfort University, United Kingdom, Executive Director, Rural Electrification Fund/Rural Electrification Agency (REF/REA), Dr. Sanusi Mohammed Ohiare, is the only Nigerian with that qualification. Added to this is a Master  of Science in Energy Studies, with specialisation in Energy Finance, Ohiare, no doubt, knows what troubles the  energy sector and what is required to put it on the recovery track.

    So, when he said recently that the greatest challenge facing the power sector was finance, Ohiare spoke from the vantage point of an expert with a deep understanding of the dynamics of the energy sector.

    It was at the 16th edition of the seminar series on “Renewable Energy Potential in Nigeria”. The seminar, which was organised by the Embassy of the Republic of Germany and the Delegation of German Industry and Commerce (AHK Nigeria), brainstormed on how to adequately finance Nigeria’s power sector, as well as explore other innovative sources of power generation.

    Ohiare in his presentation on “Off-grid Investment and Funding Opportunities in Nigeria”, did not mince words when he said: “Given the prevalent opportunities and challenges currently rocking the Nigerian energy sector, access to finance – either import or debt financing, or impact capital in the form of convertible loans and or equity-remains a crucial factor for enhancing energy access across the country.”

    The expert scored the bull’s eye by putting the problem of the energy sector on the doorstep of finance. This is so, considering that a huge investment of about $1 trillion dollars is required to modernise Nigeria’s energy infrastructure in 29 years, from 2014 to 2043, according to Vice President Yemi Osinbajo.

    Osinbajo made this known recently when he declared open a two-day National Energy and Climate Change Summit in Abuja. The summit was organised by the Energy Commission of Nigeria (ECN), in collaboration with the International Energy Charter (IECh) and the European Union.

    Osinbajo, who was represented by the Minister of Science and Technology, Dr. Ogbonnaya Onu, said the summit provided a high-level forum to discuss energy and climate change in relation to economic development and environmental protection.

    Although the Vice President expressed optimism that the summit’s deliberations would provide solutions to improving sustainable energy supply and access in Nigeria, Ohiare and, indeed, other energy experts are pushing off-grid initiatives, including mini-grids and renewable energy as attractive investment options to make energy supply and access possible.

    Ohiare said from data available to REA, which is the implementing agency of the Federal Government tasked with electrification of rural and un-served communities, Nigerians and businesses spend a whopping $14 billion, about N5 trillion annually to power their generators. He described this as an inefficient power generation model that is also expensive and unclean.

    The energy expert, therefore, said the Federal Government, through REA, was implementing and supporting off-grid initiatives. Specifically, the agency, he said, was working to develop 10,000 mini-grids by 2023, which will provide electricity to 1.4 per cent of Nigeria’s populations. It was equally working to provide reliable energy for more than 250,000 Small and Medium Enterprises (SMEs).

    He added that REA was working to provide uninterrupted power supply to federal universities and hospitals in Nigeria. “We have a $350 million investment grant from the World Bank; the fund would go into off-grid and mini-grid electricity,” he explained, adding that REA has already allocated $150 million for mini-grids, $75 million for Solar Hands-on Systems (SHS), and $105 million for universities and hospitals power systems.

    According to the Nigerian Mini Grid Regulation, mini-grids are stand-alone power generation systems of up to one megawatt (mw) capacity that provide electricity to multiple consumers through a distribution network. They offer an innovative yet practical solution to rural electrification challenges.

    Mini-grids can circumvent many of the problems with electricity from the centralised grid, while providing cost-effective power. They are also viable options for the provision of reliable and affordable energy to help factories manufacture, students study, and the economy reach its full potential.

    Today, tens of thousands of communities in remote regions of Nigeria can be cost-effectively served by mini-grids while providing investors a good return on investment.

    To Ohiare and other energy experts, mini-grids, and renewable energy are viable options to salvage the energy sector.

    Already, the REA, according to Ohiare, has started marketing and encouraging investors to come into the renewable energy market. “Whatever support the investors need, we are ready to work with them to improve power supply in the country,” he assured, calling on the industry players to take advantage of the Energising Economies Initiative (EEI).

    The EEI is an initiative of the Federal Government being implemented by the REA. Its mandate is to support the rapid deployment of off-grid electricity solutions that will provide clean and consistent power to economic clusters.

    Interestingly, the push to turn to off-grid electricity solutions, including renewable energy to bridge the electricity supply gap, enjoys the support of the German Government and development partners, such as the African Development Bank (AfDB).

    At the afore-mentioned seminar, the leader of the delegation of German Industry and Commerce in Nigeria, Duke Benjamin, said Germany was interested in developing renewable energy in Nigeria. He said there was an urgent need for capital and technical interventions to salvage the energy sector.

    His words: “German Government recognises the potential of renewable energy in Nigeria and is looking towards improving the business environment in the sector. We also encourage private investors to invest in the sector. We understand that the major problem in the sector is financing and that is why we are discussing the financial solutions in the sector.”

    Also, AfDB’s Energy Sector Policy and Regulations Specialist Mr. Dozie Okpalaobieri was emphatic that scaling up off-grid solutions and making them commercially viable will unlock a huge market opportunity not just for Nigeria, but in sub-Saharan Africa.

    In his presentation on “Off-grid Renewable Energy Financing,” he said there is a framework to increase on-grid generation to add 160 gigawatts of new capacity by 2025 and increase off-grid generation to add 75 million connections by 2025, an increase that is twenty times more than what Africa generates today.

    Despite Federal Government’s investments in the power sector, more than 95 million Nigerians still live without electricity, according to Ohiare. Giving more details, he said of those living with electricity, 55 per cent are connected to the grid, while 45 per cent are off-grid. This makes mini-grid and off-grid energy solutions compelling investment propositions for investors.

     

    Nigeria’s $9.2b mini-grid

    market beckons

    The investment potential in mini-grid energy solution is huge. For instance, a report titled “Mini-grids in Nigeria: A Major Investment Opportunity,” said developing off-grid alternatives to complement the grid creates a $9.2 billion a year market opportunity for mini-grids and solar home systems that will save $4.4 billion yearly for Nigerian homes and businesses.

    The report, which was an independent assessment of the Nigerian mini-grid market, was the result of a partnership between REA, the World Bank (Energy Team), and Rocky Mountain Institute (RMI).

    The report, which highlighted Nigeria’s potential as the biggest and most attractive off-grid opportunity in Africa, said installing several hundred mini-grids can reduce costs by around 60 per cent in 2020. It also said by reducing cost, mini-grids can save $4.4 billion yearly for homes and businesses.

    The report, which was made available to The Nation at this year’s edition of Power Nigeria exhibition and conference held Lagos, in September, said millions of commercially-viable businesses are powered with expensive and/or unreliable power, describing the power generation as “poor quality, noisy, and polluting.”

    It added that a significant amount of the economy is powered largely by small-scale generators (10–15 GW) and almost 50 per cent of the population has limited or no access to the grid. Consequently, there are high densities of power use, large latent demand, and a strong willingness to switch to more-effective alternatives.

    The 2018 edition of Power Nigeria exhibition and conference gathered more than 20 industry experts, 100 regional and international suppliers from 17 countries to address the ways to improve power coverage and funding of new off-grid strategies.

     

    Turning to renewable energy

    Globally, alternative power sources such as renewable energy, including coal, solar, wind, and biomass, among others, are gaining traction. Experts project that one-third of the world’s energy will need to come from solar, wind, and other renewable resources by 2050.

    According to them, climate change, population growth, and fossil fuel depletion mean that renewables will need to play a bigger role in the future than they do today. This holds true, particularly for Nigeria where getting gas to fire the power plants has become a Herculean task.

    Besides, unreliable supply infrastructure and pipeline vandals have continued to compromise the distribution of gas to various power plants, making alternative energy sources that are renewable and thought to be “free” energy sources more compelling. They also have lower carbon emissions, compared to conventional energy sources.

    The thinking is that diversifying sources of power supply, which the resort to renewable energy entails, will improve electricity supply, following the lack-lustre performance of the power sector, despite its privatisation five years ago.

    To infuse life into the moribund power sector, the Federal Government unbundled the assets of the defunct Power Holding Company of Nigeria (PHCN) and handed them over to private investors under a privatisation exercise. That was on November 1, 2013.

    The new core investors were, among others, expected to bring in the technical know-how and investment capital to reposition the sector for better performance and, ultimately, improve electricity supply to consumers. But, five years down the line, the anticipated improvement in electricity supply has yet to come the way of consumers.

    Nigeria’s electricity generation, which stood at a meagre 3,718 megawatts (Mw) when the sector was privatised, has been hovering between 4, 000 Mw and 3, 741. 30 mw in recent months. This is as the number of idle power plants rose from seven to 15, according to the latest data from the Federal Ministry of Power, Works and Housing.

    The country generates most of its electricity from gas -fired power plants, while output from hydropower plants makes up about 30 per cent of the total. But experts are now pushing for diversification of the energy sources.

    Nigeria already has a National Policy on Renewable Energy and Energy Efficiency, which targets to achieve 8,188 Mw with Renewable Energy (RE) by 2020 on a medium term, while the long-term target was on the realisation of 23,134 MW by 2030.

  • Dangote Flour celebrates   World Puff Puff Day

    •Beats Guinness record frying 40 bags of flour

    Dangote Flour Mills, at the weekend, celebrated the maiden World Puff Puff Day. Over 50 confectioners were engaged to produce over 30,000 pieces of the local snack as part of activities marking the day.

    World Puff Puff Day, according to Dangote Flour Mills Group Managing Director, Thabo Mabe, is an initiative of the flour miller to celebrate three categories of people – confectioners, who fry the delicacy, consumers, who enjoy the snack and sellers, who make a living from it.

    He said the event was organised to celebrate Nigeria’s creativity in local delicacy as well as further create awareness for the company’s 1.5kg size launched in March.

    “The World Puff Puff Day is one of the most modern festivals. It is celebrated on October 27; this is the maiden edition. For us, we thought how do you bring flavour to the household and this is why we introduced the 1.5kg,” Mabe explained.

    He said it would make it easier for Nigerians to enjoy their puff puff, bread and other pastries at a go and make it healthy as well, rather than buying it from the market measured with plastic, which may not be hygienic.

    “But now the small 1.5kg is handy, it can be put in the cabinet and consumers can create flavour of their choice,” Mabe added.

    The event, which also had in attendance President, Dangote Group, Aliko Dangote, saw the company breaking the Guinness Book record of 200kg, which equals four bags of flour recorded to have been fried at a location.

     

     

     

  • ‘Nigeria is West Africa’s largest hotel pipeline’

    •Funding key to unlocking Nigeria’s hotel pipeline

    Nigeria has by far the largest hotel pipeline in West Africa, with Lagos and Abuja leading the charge, Managing Director, W Hospitality Group, Trevor Ward, has said.

    Speaking ahead of the West African Property Investment (WAPI) Summit & Expo holding in Lagos on November 15 and 16, Ward said it’s Nigeria’s obvious scale and increasing economic sophistication that are fuelling the expansion.

    WAPI is the region’s largest real estate event. It connects the most influential local and international Africa property stakeholders, driving investment and development into a wide range of real estate and infrastructure projects and developments across the region.

    Ward said with more than 9, 603 rooms across 57 hotels planned by the world’s leading hotel brands (Marriott, Radisson, AccorHotels, etc.), Nigeria has many developers, investors and operators queuing up to strike deals across the country.

    WAPI host, Kfir Rusin, also said the rapid expansion in the number of hotel rooms, or keys as it is known in the business in Nigeria was an indication of a growing economy and favourable investment climate.

    Despite Nigeria’s transaction-heavy and deal-making environment over the past few years, the challenge, according to Ward, is transforming these deals into real rooms, which cater across a broad economic demographic from affordable to high end.

    “The reality is that only 4,000 of these hotel rooms are under construction,” he said, noting, however, that the paradox was that while deals have been signed between operators and developers, the funding environment remains compressed and the biggest challenge to overcome.

    This, according to him, was despite the presence of global operators like Hilton, Marriott, and the Radisson rapidly expanding their footprint, but primarily focused on the top end of the market.

    As Ward noted: “There is no shortage of projects and developers, it is the finance that is in short supply. It is inconceivable that all the projects in the pipeline could be funded – if they were built, there would be chronic oversupply.”

    According to W Hospitality Group Managing Director, current demand is concentrated in the business and meetings incentives conferences and exhibitions (MICE) sectors, but the biggest opportunity is the economy or mid-scale markets.

    “However, despite the potential offered by the economy or mid-scale market, international brands are focussed on the high end of the market with smaller brands like South Africa’s Peermont, Southern Sun, City Lodge making waves,” he said.

    Ward said in such an environment, one emerging segment of the hospitality industry poised to break out is serviced apartments. As he explained, “it’s (serviced apartments) coming, but it is slow, even though every major city in Africa has demand for the product”.

    One industry leader and serviced apartment pioneer intimately familiar with this emerging hospitality class is Abi Adisa, Chief Executive Officer and Co-founder, Amara Suites. As one of Lagos’ first serviced apartment providers, he has measured a marked increase in business confidence post-recession and in the light of a $70+ oil price.

    “We see oil and gas service companies returning to Lagos. A constant has been the fast-moving consumer goods companies focused on the increasing size of the middle class,” Adisa said.

    And while Ward said the product is relatively new and untested in the West African market with just a handful of operations, Adisa believed that serviced apartments are perfect for Africa’s fast-growing economies and urban future.

    His words: “Serviced apartments are ideally suited for African markets. Significant business traffic headed to Africa is for extended stays, and it’s not easy to get here. Folks also tend to stay longer to close on deals or execute projects and we are more flexible and cost-effective than hotels.”

    Despite Adisa’s bullish optimism, the sector is not immune to economic pressures and Nigeria’s upcoming electoral period, which he said, will result in a softening of the market and then a spike in demand.

    “Medium-term, as West Africa becomes a focus for international businesses, there is going to be a significant increase in demand, and especially the demand for branded serviced apartments with a multi-city, multi-country reach,” he said.

    As Rusin concluded: “The opportunity in Nigeria for hotels is significant, but funding has remained challenging. This year, our hotel sessions will feature many international operators like the Radisson and Hilton together with industry experts such as Trevor Ward, JLL’s Xander Nijnens and innovators like Abi Adisa.

    “As the region’s largest and most concentrated gathering of local and regional real estate developers and investors, we believe that this year’s WAPI Summit will provide the platform for industry stakeholders to unlock the country’s hotel pipeline.”

  • AfDB rolls out disaster risks financing scheme

    The African Development Bank (AfDB) has approved the Africa Disaster Risks Financing (ADRiFi) Programme. It is the Bank’s first climate risk management programme to boost resilience and response to climate shocks in regional member countries.

    The comprehensive programme will enhance member countries’s ability to evaluate climate-related risks and costs, respond to disasters and review adaptation measures at both national and sub-national levels.

    The ADRiFi will also facilitate initial financing for countries in need of support. According to the Bank, the programme’s initial phase is expected to run from 2019 to 2023.

    The AfDB said the enhanced resilience and adaptation of countries to the negative impacts of climate change, as well as disaster risk insurance cover, will reduce the vulnerability of the poor to climate change and act as a safeguard against loss of livelihoods in communities, especially for smallholder farmers.

    Nine countries namely: Burkina Faso, Chad, Gambia, Madagascar, Malawi, Mali, Mauritania, Niger and Senegal have already expressed interest in participating in the programme.

    “Africa is the most vulnerable continent to climate change, prone to a wide variety of natural disasters including droughts, floods and tropical cyclones. However, disaster risk management suffers from inadequate financing and challenges in the deployment of available funds,” AfDB Director for Agricultural Finance and Rural Development, Atsuko Toda, said.

    the Bank’s Climate Change Action Plan II (2016-2020) policy.

     

  • Operators intensify push for payment of EEG backlog

    The backlog of exporters’ claims under the Export Expansion Grant (EEG) scheme stands at over N1 trillion. This represents accumulated payments for 2016 and 2017, according to the Nigerian Export Promotion Council (NEPC). To remain in business, create jobs and contribute to economic diversification anchored on non-oil export, real sector operators and stakeholders have intensified the push for prompt settlement of outstanding bills. They urged the National Assembly to expedite action in approving money proposed by the Presidency to offset the bills. FLORENCE ANYA reports.

    Nothing would gladden Mrs. Mojisola Adenekan’s heart than to see her processed nuts and oil export business blossom into a vibrant, large scale enterprise. To her, the starting point to making this happen is for the National Assembly to promptly approve the payment of the backlog of exporters’ claims under the Export Expansion Grant (EEG) scheme, which stands at over N1 trillion.

    The budding entrepreneur said prompt settlement of the outstanding bills would trigger increased activities in the non-oil export sector. She added that offsetting the bills incurred under the EEG scheme was important so as not to hamstring entrepreneurs, who have already incurred huge expenses in respect of the scheme managed by the Nigerian Export Promotion Council (NEPC).

    The Federal Government introduced the EEG scheme in 1986 through the Export (Incentives and Miscellaneous Provisions) Act (amended in 1992) to stimulate non-oil exports by cushioning the effects of infrastructural deficiencies and reducing the overall unit cost of production. It was also meant to increase Nigerian products’ competitiveness in the international market place.

    The EEG, which is administered by the NEPC, ranges from 10 per cent to 30 per cent of the Freight On Board value of the products being exported. But the scheme was suspended in 2014, following allegations of widespread abuse and accumulation of significant liability on the Negotiable Duty Credit Certificate (NDCC).

    Before the suspension, the incentive was granted in form of NDCC utilisable by exporters for payment of import and excise duties. The NDCC has since been replaced with the Export Credit Certificate (ECC), which can be used to settle all Federal Government taxes such as Value Added Tax (VAT), companies income tax etc.

    Under the revised guideline for EEG scheme, the ECC can also be used to purchase Federal Government bonds. Others include settlement of credit facilities by the Bank of Industry (BoI), Nigeria Export-Import Bank and Central Bank of Nigeria (CBN) intervention facilities; settlement of liabilities owed to the Asset Management Company of Nigeria.

    In issuing the revised guidelines, government said it was of the view that the objectives of the EEG were still relevant, more so at a time when diversification was touted as the only way to build a sustainable economy.

    The effective date of the revised guidelines was January 1, 2017, albeit, exports made between the time the scheme was suspended and its reintroduction are covered under the new guidelines.

    The ECC is similar to the defunct NDCC, which was granted to beneficiaries and used as a negotiable tax credit. However, unlike the NDCC, which was transferable from trader to trader without restrictions on title and tenure, the ECC is only valid for two years after issuance and transferrable only once within this period.

     

    Why EEG was suspended

    It can also be used to purchase government bonds and repay government credit facilities. But the former Minister of Finance, Mrs. Kemi Adeosun had justified the stoppage of the EEG policy, saying it was seriously abused.

    Adeosun, who responded to enquiries by members of the Nigerian Economic Summit Group (NESG) on the status of the export grant during the group’s leadership’s visit  her office in Abuja, said the decision to halt the scheme was in order.

    The former Minister said although her predecessor in office halted the policy’s implementation, she believed the decision was in order going by harvests of startling revelations on the abuse of the export grant.

    “We have people exporting stones, describing them as high valued goods, collecting an import credit and using that to import fish. We do need to look for how to support export, but we have to be very realistic in the recommendations we are coming up with,” Adeosun said.

    However, in response to industry demand and alignment with its economic diversification policy, President Muhammadu Buhari in his 2017 Budget Speech in December 2016 announced that the EEG would be revived and administered as tax credits.

    Subsequently, the Minister of Industry, Trade, and Investment, Dr. Okechukwu Enelamah, indicated that certificates issued under the EEG scheme would be called ECC in lieu of the erstwhile NDCC. He also said the scheme had been reviewed to prevent it from being abused by exporters.

    Enelamah said for instance, that under the new arrangement, the backlog of exporters’ claims would be settled with a tax credit rather than import credit. According to him, the EEG was expected to resume in 2017, with the settlement of outstanding claims to exporters.

    Executive Director and Chief Executive Officer, NEPC, Mr. Segun Awolowo, had put the outstanding claims at over N1 trillion, representing accumulated payments for 2016 and 2017. He said the payment is expected to commence as soon as the National Assembly gives its approval.

    Adenekan and indeed, other real sector operators, particularly those in the export business, are urging the National Assembly (NASS) to expedite action in approving the money proposed by the Presidency to offset the bills incurred under the EEG scheme. This, according to Adenekan, would enable entrepreneurs consolidate on their business plans.

    She said the export business could be very costly sometimes. “Usually, you are expected to pick orders from different locations, for which you spend so much money to execute. And when you do not get the returns on your investments immediately, your business could be grounded,” the exporter of processed nuts said.

    She added:“Sometimes, it is not easy to get bank credit. And when you do, it is on high interest rate. Besides, the total money required by the export business is huge. If you do not get reimbursement fast, your business could be grounded.” She urged a quick response by the concerned authorities.

    General Manager, Sagenta Nigeria Enterprises, a textile and garments processing company, Mr. Godwin Odhiare, also lent his voice to the growing call by the real sector operators on the NASS to promptly approve the payment of the backlog as a way of triggering increased activities in the export sector and contributing to on-going diversification drive.

    He said the Buhari-led administration needed commendation for initiatives targeted at boosting exports. “Anyone, who is genuinely interested in the Nigerian export business would appreciate the administration for the initiative,” Odhiare said, adding that members of the legislature should complement this gesture by quickening the process of releasing the money.

    The textile manufacturer said although, the current administration revived the scheme,   but it does not end there.  “What would gladden the heart the more is to see that the proposal has been endorsed by the NASS and the monies paid.

    “There is a proverb that he who wears the shoes knows where it pinches. It is those, who spend money in exportation that would understand the burden of not being settled on time. There is need to ensure that noble initiatives involving our export sector are implemented to the latter,” he said.

    According to Odhiare, many exporters who have been nursing the idea of expanding their operations are being held back by the outstanding payments since, according to him, the monies involved is huge.

    “The export market is competitive. Many of us are proud to be flying the nation’s flag in that area and we would appreciate every assistance the authorities could give,” he emphasised.

    Also, the Chairman, Export Group of Manufacturers Association of Nigeria (MAN), Chief Ede Dafinone, passionately appreciated the Federal Government for reviving the EEG, especially with the expansion of the use of the Export Credit Certificate (ECC).

    “As a result of this expansion, our members will be able to transfer the ECC to a third party and use it to settle all Federal Government taxes as well as purchase of government bonds and settlement of credit facilities by development banks and liabilities of the Asset Management Company of Nigeria,” he said.

    Dafinone admitted that 2017 was tough for members of the group due to shortage of foreign exchange, high cost of energy and funds, multiple levies and taxes, as well as smuggling, which unleashed untold constraints on manufacturing operations.

    “Also, since the collection of the unutilised NDCC by the Federal Government, no payment has been made, which put our members in a difficult position with their banks. I hope government will commence full payment of the new EEG soon,” he said.

    Similarly, Leather Worth Nigerian Company General Manager, Mazi Jerry Ugwu, said many exporters are appreciative of the initiative that promotes Nigerian made products. He, therefore, warned against anything that would negatively affect it.

    “I will appeal to members of the NASS not to look at this particular issue from the point of view of politics. This is one area in which Nigeria’s image is being publicised abroad while at the same time bringing revenue. The exporters should be paid promptly,” Ugwu said.

    He said hunger does not know politics, and that once Nigerians have means of survival there would be reduction in crime. He added that issues concerning the economy, especially those capable of creating jobs should always be given priority in the interest of the larger society.

    “You can imagine what would happen when such an amount is released. It would be ploughed back into the economy and more jobs would be created,” Ugwu said.

    He equally appealed to exporters not to relent, but continue to do their beat in helping to create awareness about the ability of Nigerian businessmen to showcase their products internationally, create jobs and add value to the economy.

    “For me, entrepreneurs, who are involved in selling Nigerian products are ambassadors. They should be supported in whatever way possible,” the Managing Director of Gold Trade, a small and medium enterprise, Mr. Olajide Ayomide, told The Nation.

    He added that entrepreneurs are wealth creators. “They produce, pay tax locally, and pay tax internationally. They bring a lot of ideas from what is happening internationally. In fact, they are doing a great job and the government needs to back them,” Ayomide said.

  • Nigeria ranks 115th in global competitiveness

    The 2018 Global Competitiveness Report (GCR) of the World Economic Forum (WEF) has ranked Nigeria 115th out of 140 countries assessed.

    A statement issued by the Senior Special Assistant to the President on Industry, Trade and Investment, Office of the Vice President, Dr. Jumoke Oduwole, said the report showed improved performance across key enabling business environment indicators.

    The GCR is an annual ranking, which compares the national competitiveness environment of 140 countries based on 12 pillars – four grouped under basic requirements, six under efficiency enhancers and two under innovation and sophistication factors.

    Based on the 12 pillars, Dr Oduwole said: “Nigeria improved in the area of Enabling Environment, the country improved in three out of four pillars classified as Enabling Environment pillars — Institutions, Infrastructure, ICT adoption and macro-stability pillars.

    “This recognises the enabling business environment reforms of the Federal Government in making Nigeria an easier place to do business in. Nigeria was ranked top 100 in terms of `Business Dynamism’.

    “The report further acknowledged the positive perception of the private sector for the government’s Doing Business reforms, by scoring improvements in the time and cost of starting a business in the country. Nigeria’s inflation rate has steadily declined to near single-digits since 2017.”

    She said although the report recorded Nigeria’s annual inflation rate at 16 per cent in 2017, it was important to note that inflation has progressively declined in 2018 to 11.28 per cent as at September.

    Dr Oduwole further said: “Nigeria’s competitive environment is one of the most entrepreneurial in the world. The feedback from the private sector as surveyed by WEF ranked the attitude of Nigerians for taking an entrepreneurial risk as the 13th in the world among the likes of Israel and the U.S., which are currently in first and second positions respectively.’’

    According to her, the report aligned with the broader private sector-led growth model of the Federal Government, stemming from the Economic Recovery and Growth Plan (ERGP) launched in April, which prioritised investing in the people.

    Oduwole, who is also the Secretary of the Presidential Enabling Business Environment Council (PEBEC), said Nigeria’s market size remains an increasing source of competitive advantage in the global economy, adding that the report ranked the Nigerian market as 24th largest in the world.

    The statement also quoted the National Investment Promotion Commission (NIPC) as saying that between 2017 and the first half of 2018, about 154 investment projects had been announced across the country with an estimated value of about $112 billion.

     

  • LCCI holds conference on mental wellness

    The Women Group of the Lagos Chamber of Commerce & Industry (LCCI) hosted women top executives and entrepreneurs at its fourth international conference designed to evolve strategies for managing mental wellness.

    The Women Group of the LCCI is charged with the responsibility of coordinating the activities of female members of the body in the promotion of their businesses and key projects of the LCCI.

    The group also arranges programmes geared towards promoting women empowerment. It also networks with women organisations at the state, federal and international levels for the aforementioned.

    The theme of the conference, which held in Ikoyi, Lagos, during the week, was “Mental Health/Wellness.”

    A statement by the Chair of the Women Group of the LCCI, Mrs. Olajumoke Fashanu, said the conference brought together notable women from diverse backgrounds in business and industry, as well as students from tertiary institutions.

    She said the aim was to educate participants on how to equip themselves with sufficient knowledge on mental wellness, which could be as a result of the negative effects of drugs and substance-related abuse, which results in depression and mental imbalance.

    The quest speaker for this year’s conference was the Lagos State Commissioner for Health, Dr. Jide Idris.

     

     

  • 30 Japanese firms for Lagos Trade Fair

    Thirty Japanese companies will showcase their brands and technologies at this year’s Lagos International Trade Fair, Japan External Trade Organisation (JETRO) has said.

    The fair will hold from November 2 to 11, at the Tafawa Balewa Square, Lagos.

    At a news conference in Lagos, the Trade Commissioner and Managing Director of JETRO Lagos, Mr. Shigeyo Nishizawa, said the 30 firms are an improvement over the 23 at last year’s fair.

    He said the increased number is an indication of the growing interest of Japanese firms to explore investment opportunities in Nigeria and also expand their businesses in Africa’s biggest market.

    Nishizawa listed some of the companies expected at the 10-day event to include Panasonic, Koncept Autocentre (partner of Isuzu Motors), and Canon Central and North Africa, R.T. Briscoe Nigeria (distributor of Toyota’s trucks, forklifts, etc).

    Others are Massilia Motors (partner of Mitsubishi Motors), Kaneka Corporation, Denka Brothers International, Honda, and CFAO Yamaha Motor Nigeria. They will be displaying a vast range of consumer goods such as vehicles, electronics, home appliances, processed foods, as well as industrial goods.

    Nishizawa said JETRO will bring an innovation to this year’s fair called “Made in Japan, Made for Women” corner.

    “JETRO is setting up a special zone at the Japan Pavilion featuring a collection of products and services cfreated by Japanese companies for women in Nigeria,” he said.

    “Made in Japan, Made for Women” zone will introduce Japanese products and services, helping to enrich women’s lives with more fashionable and convenient items, including cosmetics, hair wigs, shampoo, processed foods and seasonings, nail printers, consumer electronics (sewing machines, headphones, hair dryers).

    Giving insight into Nigeria’s trade with Japan, the JETRO chief said import from Japan slightly decreased in 2017 by 1.6 per cent to $320.8 million from 2016, while export decreased by 7.5 per cent  to $783.1 million.

    He attributed the trade decline to decreased natural gas import, low harvest of sesame seeds in Nigeria and weak demand for some goods.

    Nishizawa, however, said despite  the slowdown in trade, the number of Japanese affiliated companies in increased by four in 2016 and by one in 2017, indicating that “Nothing has changed on the huge potential of Nigeria and how strongly Japanese firms are eager to tap into the market.”

    According to him, Japanese firms in Nigeria are contributing to economic growth and development. “They create jobs, educate staff, transfer technology and share values of Japanese craftsmanship, which are key agenda of the Federal Government’s Economic Recovery and Growth Plan (ERGP),” Nishizawa said.

  • Manufacturers: importation hurting local footwear industry

    Nigerian shoe makers have urged the Federal Government to halt the importation of second-hand shoes into the country, noting that unbridled importation was hurting the local footwear industry.

    Operators and stakeholders in the footwear and leather industry made this known at the 4th edition of Made-in-Nigeria Shoe Expo, held in Lagos, during the week. It was themed “Sustainable Futures: Scenario Analysis for the Local Footwear and Leather Industry by 2030.”

    They canvassed an enabling environment for petrochemical firms, who act as ancillary industries for raw materials such as poly urethane and poly propylene chips required by footwear and leather industries to thrive.

    According to them, there are few of such petrochemical firms operating in Nigeria at the moment with minimal capacity to meet local demand.

    The National Co-ordinator for Made-in-Nigeria Shoe Expo, Mr. Emmanuel Ugbodaga, appealed to the government, particularly, the National Orientation Agency (NOA) to address the consumption complex Nigerians display in their choice of foreign labels over local ones.

    He said: “Even when we produce high quality shoes at affordable prices, Nigerians still believe that foreign ones are superior. This mentality requires a re-orientation of the mind-set of Nigerians by the government.’’

    The Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ambassador Ayoola Olukanni, described the footwear and leather sector as promising, stating that NACCIMA is committed to supporting the sector.

    “We are working on modalities for access to finance to help grow the capacity of micro-enterprises in the sector,” Olukanni said.

    The Co-Chief Executive Officer, Tecnfilm SPA, one of Italy’s largest manufacturers of raw materials for the production of soles, Roberto Cardinalli, said he was delighted to be in Nigeria for the first time.

    He added that his firm was ready to partner Nigerian firms to source quality and affordable raw materials for the production of footwear soles.

    The expo offered free master classes to help improve the skills-set of artisans.

    Some of the sessions’ themes included “Dynamics of Pattern”, designed for shoe makers, which was facilitated by international footwear expert and CEO, Sola Benson Shoe Training Institute, Mr. Sola Benson; “Advantages of Shoe Illustration”, facilitated by Mr. Ralphael Malik.

    Others were CIO, White Technology Limited, who took the session on “Thermoplastic Rubber (TR) and Thermoplastic Elastomers (TPE)”; “Effective Risk Management for SME’s to Grow Revenue”, facilitated by Mr. Terry Ferdinand  from FBN Insurance Plc.

     

     

    Participants who exhibited at the expo include Footwear and Accessories Manufacturing and Distribution (FAMAD) Plc, manufacturers of Bata and Cortina shoes, Meilisa Yaqi Industries Limited, Caligo Footwear Company Limited as well as Melvyn Nickson Nigeria Limited, a leather adhesives manufacturers and Scantima Sarl, manufacturers of original equipment.

    There was also a fashion runway by Ayaaba apparels and shoe factory, Allsocks, a manufacturer of variety of stockings and BG Couture, a bespoke tailoring firm based in Lagos. There were also emerging designers like Adunni Twinkle, O’tega Shoes, Sellable footwear and TEVO footwear.