The Nation Newspaper

Category: Industry

  • ‘Africa is world’s most attractive equity market’

    Africa  is still one of the world’s most attractive markets for private equity, Boston Consulting Group (BCG) has said.

    The Financial Group, in a statement signed by Associate Director and a co-author of the report, Marc Becker,  said Africa remains one of the world’s growth opportunities for private equity investors, though with some facing serious challenges of recent.

    To generate the high returns that investors expect, however, funds should consider more flexible investment strategies and new types of corporate targets, the report stated.

    The report, titled: Why Africa Remains Ripe for Private Equity, notes that since the early 1990s, the number of private equity funds active in Africa has swelled from about a dozen to more than 200, while funds under management have risen from some $1 billion to upwards of $30 billion. This rapid growth, combined with the recent downturn in Africa’s largest economies, has raised concerns among some analysts that a bubble is emerging, the statement said.

    The report said most private equity funds and principal investors tend to invest only in minority stakes, with the goal of better managing their risks by leveraging robust local partners. While they overwhelmingly focus on a limited pool of investment targets: profitable companies with annual revenue of more than $100 million and proven track records.

    The report advised that alternative investment approaches are particularly important if funds are to meet the rising expectations of their investors. It said: “Increasingly, development finance institutions are being joined by global institutional investors that are far more focused on high returns. As prices for stakes in large African companies rise, it will become more difficult for private equity funds to deliver high returns. To fully capture the opportunities in Africa and earn high returns, private equity funds must adapt to the rapidly evolving market and consider more flexible investment strategies.”

    The report recommended that private equity investors consider other investment approaches, such as majority stakes, strategic partnerships, and evergreen funds, rather than only funds with timing constraints for divestiture. It also suggested that funds look at a wider range of targets, such as Africa’s growing pool of dynamic smaller companies with significant growth potential.

    “Too many private equity investors are pursuing the same kind of target with the same kind of deal structure,” said Patrick Dupoux, a BCG Senior Partner and a co-author of the report who leads the firm’s activities in North Africa.

    He added: “But look beyond the narrow cohort of Africa’s corporate elite and you’ll see that the continent offers real opportunities. Some of the most promising targets in Africa are companies that are still off the radar of most funds.”

    On their optimism, he stated that despite the rapid growth in funds and a crash in global commodity prices that has hit a number of African economies, the following factors support a positive outlook for private equity.The factors he itemised is that the amount of private equity and principal investment capital under management in sub-Saharan Africa remains very low relative to world standards with a mere 0.1 per cent of GDP. That compares with approximately 1 per cent of GDP in western countries.

    Others are that despite recent setbacks, most economists expect that GDP growth in Africa will rebound over the medium term, driven by a swelling middle class, rising foreign investment in infrastructure, and a growing skilled labor force. The statement also hinted that the pool of investment targets is growing with nearly 11,000 African companies having revenue of $10million to $100million and assets of $20 million to $200million yearly.

  • LCCI holds public-private dialogue on port efficiency

    LCCI holds public-private dialogue on port efficiency

    The Lagos Chamber of Commerce and Industry (LCCI), in collaboration with the Financial Derivatives Company, an economic consultancy firm, is set to hold a Public-Private dialogue on Port Efficiency & Maritime Sector Roadmap in Nigeria. In a statement made available by LCCI, it said the objective is to design a roadmap for the transformation of the Nigerian maritime sector.

    The Stakeholders’ forum, which is billed to hold today by 9:30am in, Lagos, is expected to bring together key government agencies, major players at the ports, importers, exporters and other stakeholders to discuss the current state of the ports and proffer solutions to many problems militating against the growth and development of the sector and improve ease of doing business.

    LCCI Maritime Ports Research conducted in the third quarter of this year said the efficiency of port operations is a major driver of trade and economic activities across countries. It regretted that users and operators at the  ports have been facing lingering challenges and bottlenecks.”

    It further stated that improving ports governance for greater efficiency has major implications for the development of non-oil sectors at this time. It noted that growth and promotion of trade and economic activities could only be pragmatic, when economies thrive to provide a conducive and friendly environment.

    It reiterated that public authorities and the private sector have come to the realisation that the starting points for activating the diversification objective of the present government is fixing the ease of doing business at the nation’s ports.

  • Unilever is top employer

    Unilever is top employer

    Unilever has been certified as the Top Employer in Africa for the third time in a row. For a company such as Unilever to achieve business success, it is important that its leadership create an environment where employees feel valued, where their creative ideas can germinate and contribute towards the company’s overall achievements.

    Unilever’s Top Employer status in Africa was solidified when the company was certified in Zimbabwe for the first time and achieved No.1 status in Ghana, Nigeria and Kenya. The organisation also added the No. 1 FMCG in South Africa and No. 1 Manufacturing in South Africa certifications to their belt.

    Unilever Vice President, Human Resources, Mechell Chetty, said:  “At Unilever, we work hard to combine our global experience with our deep African roots to develop local talent so we are delighted to see our efforts recognized by the internationally renowned top employers as a truly independent and verifiable measure of industry best practice in HR.”

    The yearly international research and audit undertaken by the Top Employers Institute recognises leading employers around the world that provide excellent employee conditions, nurture and develop talent throughout all levels of the organisation, and which strive to continuously optimise employment practices.

    “Unilever was honoured by the Top Employer research for exceptional employee offerings and as an organisation which puts its people first and is dedicated to their personal and professional development. I would encourage more companies to participate and raise the bar on employment practices across the continent,” said Chetty.

    Regional Director Africa, Top Employers Institute Samantha Crous, said: “Our extensive research concluded that Unilever Africa forms part of a select group of employers that advance employee conditions worldwide. Their people are well taken care of. Now that they have received the Top Employers Africa 2016/17 certification, they can truly consider themselves at the top of an exclusive group of the world’s best employers – a remarkable feat to celebrate”

    According to Chetty, Unilever’s secret to success is the fact that the company consistently aims to empower its employees to be able to make a direct impact on the business. “If you want to be part of a team driving innovation, change and growth at one of the most dynamic and exciting periods in African business, then Unilever is the place to be. This award provides external verification to those looking to join Unilever that we put our people at the heart of our business and their development and contribution will be second to none on the continent of Africa,” says Chetty.

    “One of the macro trends that we see across the world is the move towards mass customisation, where you provide tailored experiences for individuals at a large scale. At Unilever, we are continuously exploring how we can apply this to our employment experience.”

    “Our employees are given significant scope for creativity in their role and we aim to create a culture where our employees can have the freedom to act with speed and deliver on their objectives,” explains Chetty. “We also encourage innovation across the workforce, with different attitudes towards authority by developing strong line managers who are equipped to deal with the challenges of a multi-generational and multi-cultural workforce. These are just some of the practices which help to make our organization ever more agile, resilient and responsive to the unpredictable external environment.”

    Potential Top Employers undergo a rigorous certification process as they are evaluated across nine key areas: Talent Strategy, Workforce Planning, On-boarding, Learning & Development, Performance Management, Leadership Development, Career & Succession Management, Compensation & Benefits, and Culture.

  • Simba Group empowers women Keke drivers

    Simba Group empowers women Keke drivers

    Simba Group has launched an initiative to empower women seeking to be commercial tricyclists.

    Simba Group represents TVS Motors of India and is engaged in the assembly, distribution and servicing of TVS King – the leading brand of Keke in the country.

    Speaking at an event held for women in Eleyele, Ibadan, Oyo State, Mr. Vijay Patil of Simba Group, said: “Increasingly, we are seeing more and more women showing interest in driving three-wheelers due to the attractiveness of this form of employment, and it is our goal at Simba to create and develop the ecosystem necessary for women to be empowered and feel safe and welcome in this industry.”

    Patil explained that the purpose of the event was to bring together the women riders.

    He said for those who already own or operate the TVS King, Simba Group representatives were available for promoting safe driving and training them on how to keep their vehicles on the road.

    Mrs. Lawson Titilayo Adewola, one of the women drivers of TVS King, explained that the economic hardship facing her family prompted her to go into Keke driving, and that the business has allowed her to save money whereas previously all profits were being reinvested into her shop.

    Mrs Adewola said: “Since I have been using TVS, I have been enjoying my relationship  with the company and I am proud to be a woman driver. When men see me driving, they always encourage me and when women see me,theyare amused . Everybody prefers to come into my tricycle.”

    For new and aspiring women drivers, Simba provides basic operator training and shares details on how to maintain vehicles and access genuine spare parts, which are available nationwide.

    The company acknowledged the foresight of these women who had recognised the opportunity in the industry and who enjoyed the flexible working hours the job provided.

  • ‘Sale of national assets’ll not benefit Nigerians’

    ‘Sale of national assets’ll not benefit Nigerians’

    The Federal Government’s proposed sale of some national assets will not be of benefit to Nigerians, a lecturer in the  Sociology Department, Imo State University, Owerri, Dr. Dan Nkwocha, has said.

    The government does not have the necessary policing structures to ensure that the assets to be so disposed are well managed by their new owners.

    In an interview, Nkwocha said the experience of Nigerians with the sale of state-owned assets, such as Power Holding Company of Nigeria (PHCN), Nigerian Telecommunications Limited (NITEL), and National Fertiliser Company of Nigeria (NAFCON) did not encourage them to support the sale of more national assets.

    The Minister of Budget and National Planning, Senator Udo Udoma recently hinted that the government planned to dispose of some national assets to bridge the funding gap in the budget and boost the nation’s dwindling foreign reserves. Some of the items billed for sale include some aircraft in the presidential fleet, and four refineries in Warri, Port Harcourt and Kaduna.

    The government also proposed to dispose part of its 49 per cent shareholding in the Nigeria Liquefied Natural Gas Company (NLNG). But the sale has met with stiff resistance by many Nigerians, with Dr. Nkwocha warning: “The government should not sale any national asset.”

    He said if the experiences of Nigerians with the sale of national assets in the past were anything to go by, the government had to halt the plan to sell more assets. “Where are PHCN and NITEL?”, he asked, accusing investors who bought the assets of “reaping from where they did not sow”.

    The don said the new owners took advantage of government’s lack of effective policing agents to deny Nigerians the benefits of efficient and cost-effective services post-privatisation.

    He pointed out, for instance, that despite the sale of the assets of the defunct PHCN a few years ago, Nigerians were yet to get improved electricity supply.

    Nkwocha lamented that rather than enjoy improved electricity supply, “Nigerians have become victims of the rapacious profiteering antics of the new core investors who daily fleece electricity consumers for services not rendered”.

    While admitting that the economy is in dire straits, requiring measures to pull it out of recession, he said urgent and aggressive diversification of the economy by exploiting opportunities in the agric and solid mineral sectors, as well as encouraging manufacturing, were better options to put the economy on track than selling the national assets.

  • Global firm to begin manufacturing in Nigeria

    Philip Morris International (PMI), the world’s largest tobacco company, with operations in 181 countries, has finalised plans to begin manufacturing in Nigeria before the end of the year.

    According to the Managing Director of PMINTL Nigeria Limited, Mr. Coskun Kagan Dicle, the investment comes in less than two years of starting operations in Nigeria, adding that this indicates the confidence the company has in the  economy.

    On entering Nigeria last year, PMI took the opportunity provided by the Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme (ETLS) to bring its brands from its manufacturing plant in Senegal. This was in keeping with the company’s regionalisation policy.

    “We are proud to be in Nigeria at a time when economic diversification is so critical to Nigeria’s long term economic objectives. Our company was incorporated in December 2014 and, during 2015, received all regulatory approvals required to commence importation of some of our world-class brands into Nigeria under the ETLS from our factory in Senegal,” Dicle said.

    He, however, said in pursuit of its long-term objectives, the company entered into a strategic agreement with International Tobacco Company Limited (ITC) to commence the manufacturing before the end of the year.

    “We are proud that in less than two years of our presence in Nigeria, we have already reached the stage of starting local manufacturing, which has been possible thanks to the relentless efforts of our strong team of Nigerian talents passionate and dedicated to contributing to the economy,” Dicle said.

    He explained that through the agreement, PMI would invest in technology and capacity building in ITC’s factory to create more employment, and that over the medium term, PMI intends to make further investments in manufacturing.

    On the benefits, Dicle said: “We believe that this undertaking will benefit all parties involved. While our consumers will have their preferred quality brands readily available, the locals at Ilorin and environs will benefit in several ways, including employment.”

    He said PMI also invested in agronomy, including some countries in Africa, through their leaf suppliers, who are reaching over 200,000 farmers.

    Similarly, PMINTL Nigeria, he added, was exploring the possibility of working with local business partners to share its technological know-how and deploy good agricultural practices in obtaining high-quality crops, high yields and good income for farmers, while minimising the environmental impact and fostering sustainability.

    “Over time, should PMI quality standards be met, we believe this could help the achievement of agricultural objectives of the government and could also become a contributor to foreign currency earnings through exports. The various arms of government would earn necessary income from levies, duties and taxes, with ITC being able to put its manufacturing facilities to good commercial use,” Dicle added.

    On how his company would continue to meet demand in the market before the kick-off of local manufacturing, he said it had secured the approval of the relevant authorities  to import from its manufacturing facility from Senegal.

  • Season of import ban threatens non-oil economy

    Season of import ban threatens non-oil economy

    Barely three months after the European Union (EU) extended its ban on dried beans import from Nigeria by three years, the United States (US) suspended Nigeria’s cocoa. The restrictions have dealt severe blows to Nigeria’s push to boost non-oil export and facilitate economic diversification. Experts, however, blame this on the country’s failure to put in place functional laboratories to certify the products before export. Assistant Editor CHIKODI OKEREOCHA reports.

    Nigeria’s push to stimulate non-oil export and facilitate economic diversification has come under serious threat.

    Reason: Lack of functional laboratories for testing and certifying products before export has ushered a season of import ban on Nigeria’s agro-allied products by the United States (US) and the European Union (EU).

    While the authorities and operators in the non-oil export business were still ruing the EU’s extension of the ban on importation of dried beans from Nigeria by three years, the US added to Nigeria’s woes when it recently banned the importation of Nigeria’s cocoa into its market.

    The EU had in June, last year banned the importation of Nigeria’s dried beans because they contained high level of pesticides which are unhealthy. This came after the Republic of Ireland rejected and returned five containers of beans exported from Nigeria to the country. The products were said to have been received with heaps of weevils. Apparently embarrassed by the development, the relevant government agencies said they were working to get the EU lift the ban. But as it turned out, the European body was not impressed by measures taken by Nigeria to resolve the issue.

    Accordingly, the EU extended the ban by another three years, citing the continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria. “The continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria and maximum residue levels of pesticides shows that compliance with food law requirement as regards pesticide residual cannot be achieved in the short term. The duration of the importation prohibition should therefore be extended for an additional period of three years to allow Nigeria implement the appropriate risk-management measure and provide required guarantees,” the EU said.

    For Nigeria struggling to boost non-oil export and diversify her economy severely battered by crashing oil prices, the extension of the ban was a hit below the belt. However, while Nigeria, which lost its Africa’s largest economy position to South Africa, was still rattled by the extension of the ban, the US added to her woes by banning the importation of Nigeria’s cocoa into its market. The US authorities are said to have taken the action because Nigeria’s cocoa did not satisfy the standard required for exportation into the US. Expectedly, this did not go down well with Nigeria.

    Minister of Labour and Employment Senator Chris Ngige, echoed the country’s frustration over the ban. At the recent concluding session of the Labour and Trade Ministerial Roundtable of the Africa Growth and Opportunity Act (AGOA) at the State Department, Washington D.C, US, he said he was saddened by the development. He, therefore, made a case to the US authorities to reconsider the decision to suspend the exportation of the cash crop from Nigeria to the US.

    Ngige also asked for technical assistance for the production of cocoa that would satisfy the standard required for exportation into the US and European markets.

    But it was not so much the US ban on Nigeria’s cocoa that saddened the minister. Rather, it was the international emphasis on Ghana and Côte d’Ivoire in agriculture throughout the talks with delegates from West African countries. This was why at the AGOA roundtable, Ngige wondered if the cocoa being produced in Nigeria was not the same crop that was exported and exploited to develop the defunct Western Region.

    It was also the same cocoa, according to the minister, that was used by the late Chief Michael Okpara to build vast plantations in the Arochukwu axis of the defunct Eastern Nigeria.

    Sources said the minister was worried by the international attention on Ghana and Côte d’Ivoire because Nigeria had, before the ban, set for herself the target to beat both countries in terms of cocoa exports. Even the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, at a recent meeting with officials of Cocoa Research Institute of Nigeria (CRIN) in Abuja, gleefully announced that the ministry had already developed new cocoa breeds capable of beating the two nations.

    At the meeting, Ogbeh wondered why Nigeria still lagged behind Ghana and Côte d’Ivoire, despite her enormous potential to grow cocoa in 23 states. He emphasised: “Nigeria needs to surpass Ghana and Ivory Coast. Ivory Coast is targeting two million tons now. Ghana is a bit lower than a million. We are battling at 250, 000 tons and Cocoa can grow in at least 23 states.” He gave CRIN the matching order for an intensive implementation plan to ensure that the government achieved the target.

    Where Nigeria got it wrong

    Experts said a vibrant non-oil sector was fundamental to economic diversification, rapid revenue base expansion, sustainable growth and employment generation. They, however, argued that Nigeria put the wrong foot forward when it moved to leverage on the sector to grow the economy without first putting in place functional laboratories for testing and certifying products before export.

    “The government is not serious,” the Founder, Centre for Cocoa Development Initiative, a Non-governmental Organisation (NGO), Mr. Robo Adhuze, fumed, noting for instance, that lack of seriousness by the Federal Produce Inspection Service (FPIS), the agency responsible for checking and certifying agro-allied products leaving the country, was robbing Nigeria of the benefits of a vibrant non-oil export-based economy.

    As Adhuze pointed out, “Quality standards have moved from physical standards to biological standards, but FPIS appears not be up to speed with this reality.” He recalled, for instance, that for about five years, Ghana suffered the same fate as Nigeria’s when over 2, 000 metric tonnes of her cocoa beans were rejected by Japan. Japan’s Chocolate and Cocoa Association of Japan appealed to Ghanaian authorities to take immediate steps to reverse the excessive agro-chemical residues found in cocoa beans exported to the Asian country.

    Adhuze said Ghana, a country famous for its very high quality cocoa beans, rose to the challenge by putting in place appropriate and adequate measures to guarantee the quality of her cocoa products for export. He expressed disappointment that while Ghana’s standards regulatory authorities took steps to reverse the excessive agro-chemical residues found in their cocoa beans, Nigeria was unable to do so. The result, he said, was the harvest of import ban now threatening the non-oil sector, especially in agro-allied products.

    The expert also pointed out that Nigeria’s lack of seriousness is underscored by the fact that despite exporting cocoa for over 100 years, the country has no defined cocoa policy to identify the basic links in the cocoa value chain.

    According to him, there was the need for a policy on cocoa farming with appropriate institutional framework to boost its production through proper identification of all the actors who have stake in the industry, from farmers to processors, marketers and exporters among others.

    Adhuze further said the lack of a clear-cut policy direction was responsible for why a N100 billion Cocoa Sector Development Fund remained a proposal more than two years after the Federal Government announced the initiative aimed at supporting cocoa farmers and processors. He said the government’s inability to walk the talk by translating the proposal into reality constituted a serious setback to Nigeria’s plan to reposition itself to extract immense value from the cocoa industry.

    He also said apart from stalling Nigeria’s hope of reclaiming her position as a global powerhouse in cocoa production and export, the fund’s failure to get off the ground was frustrating efforts at riding on the crest of a vibrant cocoa industry to create jobs.

    In October 2014, the Federal Government through the former Minister of Agriculture and Rural Development, now President, African Development Bank (AfDB), Dr. Akinwunmi Adesina, launched a N100 billion Cocoa Sector Development Fund. He also announced the government’s resolve to establish the Cocoa Development Corporation of Nigeria.

    The minister said the fund was aimed at supporting cocoa farmers by expanding cocoa plantation across the country; supporting the cocoa corporation of Nigeria and cocoa drying and access to micro finance for cocoa production.

    He also said the Cocoa Corporation of Nigeria, which would be private sector driven and public sector financed, would position Nigeria among more robust global economies and improve quality of lives of cocoa processors.

    “The corporation will be independent to grow and win back at least 20 per cent of the global cocoa market by 2020,” Adesina said. However, more than two years down the line, Adhuze lamented that the fund and the corporation remained mere proposals.

    National quality infrastructure to the rescue

    The Standards Organisation of Nigeria (SON) has come out with strategies to stimulate export of agric products by ensuring that they meet international standards and are not rejected by the importing country.

    Its former Acting Director-General, Dr Paul Angya, recently said the agency was developing standards for select priority produce from farm to storage, cutting across soil composition, soil preparation, kind of pesticides to use, seed improvement, harvesting, packaging labelling and storage.

    He said as part of the strategy, SON had developed codes of practice to guide the producers and farmers of the selected products that are of high priority from Nigeria so that Nigeria could deliver safe and affordable agro-allied products to the international community.

    While adding that SON has strengthened capacity for lab testing and certification of agric produce meant for exportation, as it is key that the products do not have issues,  Angya said these products were tested only in the countries of export.

    He said this meant Nigeria does not have control over the results, “because we don’t have much of the facilities for testing in Nigeria. The facilities are what we call quality infrastructure. The testing laboratories are one of the major components of the National Quality Infrastructure (NQI).”

    According to him, there are only two of such laboratories in Nigeria, with SON and National Agency for Food, Drug Administration and Control (NAFDAC) having one each for testing food products. He, however, said SON was developing a large lab complex in Ogba, Lagos, which is over 85 per cent completed.

    He said when completed, Nigeria should be able to test all standards and parametres for food products, so that the facilities would become available and much of the products coming to Nigeria will have access to this testing.

    Association of Systems Management Consultants National President, Mazi Coleman Obasi, expressed optimism that the NQI project being funded by the EU and implemented by the United Nations Industrial Development (UNIDO), with the support of Ministry of Industry, Trade and Investment, would sought out issues around quality that cause the rejection of Nigeria’s export products.

    Obasi, a certified quality management practitioner, said the association was working closely with UNIDO and other relevant government agencies on the NQI project to boost the competitiveness of locally  products at the international market place and ensure the global acceptance of products and services from Nigeria.

  • Customs PRO denies report on reverse of rice ban

    Customs PRO denies report on reverse of rice ban

    The Nigeria Customs Service (NCS) has not reversed the ban on  rice.

    Its Public Relations Officer (PRO), Mr. Wale Adeniyi, a Deputy-Comptroller, was reacting to a report which  indicated that the Customs had reversed the ban on rice import through land borders.

    Adeniyi, in a statement in Abuja, denied the reports which allegedly emanated from him, saying he never issued such a statement.

    He said the reports which were published last weekend were the ones he granted last October.

    Adeniyi said the service suspected that some forces behind rice smuggling were at work, recycling old reports under a different circumstance to create confusion.

    “It is necessary to restate the true position in view of the confusion, which these publications may create in the industry. It is even more expedient to provide this clarification, given that the service has taken a firm position earlier in the week through a joint news conference with stakeholders.

    “We like to reiterate the position that importation of rice remains banned through our land borders and we have the commitment of partner government agencies and stakeholders to enforce this restriction,” Adeniyi said.

    He added that while the restriction is in force, rice imports through the ports are still allowed, subject to payment of extant charges.

    “The service will, therefore, advocate a total ban on rice importation into Nigeria with effect from 2017.  It is our belief that continuous waste of scarce Foreign Exchange (forex) on a commodity that can be produced locally makes no economic sense, most especially at a period of recession,” Adeniyi stated.

    Nigeria spends $2 billion yearly on riceimportation.President Muhammadu Buhari, who made this known recently in Abuja, said to achieve domestic self-sufficiency in rice and other staples by 2018, the Federal Ministry of Agriculture and Rural Development and the Central Bank of Nigeria (CBN) had been mobilised to encourage local production of rice, maize, sorghum, millet and soya beans.

    The president said farmers in 13 out of 36 states were receiving credit support through the CBN’s Anchor Borrowers Programme.

    This must have encouraged Adeniyi to restate the confidence that customs had in the ability of Nigerian Rice Producers (NRP) to fill the sufficiency gaps in the supply of the product.

    According to him, Customs had noted the ongoing rice revolution undertaken by many state governments and strategic interventions by Federal Government agencies.

    He said the service was convinced that the bumper harvests expected from these efforts will address the supply gap next year, urging Nigerians to watch out for similar antics as the stand on rice smuggling would pitch their selfish interest against national interest.

  • PwC’s global gross revenues hit $35.9b

    Price Waterhouse Coopers (PwC) International Ltd has reported global gross revenues of $35.9 billion for the fiscal year ended June 30, 2016. The firm said at constant exchange rates (local currency), its total global revenues rose by over seven per cent.

    Pricewaterhouse Coopers (PwC) International Ltd Chairman, Bob Moritz, said the revenue growth was as a result of the strength of its brand, the opportunities it provides for its people, the quality of services and its focus on meeting the needs of stakeholders.

    Noting that these attributes remain at the heart of PwC and how it measures its success, Moritz said, “Our revenue growth in fiscal year 2016 across all major markets and businesses is testament to our fundamental purpose of building trust and solving problems.”

    He said that to secure future growth, PwC was investing heavily in technology to enhance the quality and impact of its services and make the best use of the skills of its people. “The world is changing rapidly and we are planning for the services our clients, capital markets and other stakeholders will need tomorrow, as well as serving their needs today,” he said.

    Moritz said whether it’s the tax and audit services of the future, transformational consulting, block chain or augmented reality, the firm was implementing a strategy to meet the long-term needs of its stakeholders and the career aspirations of its people.

    “This is an era of unprecedented scrutiny and the public expects more from business today.  We are focused on how we can best serve not just the needs of our core stakeholders, but society at large.  This is reflected in our purpose, the culture we’re building right across our network and in the stories we tell in our annual review,” he stated.

    PwC’s fiscal year 2016 global annual review is an online digital experience that uses video, graphics and stories to show who the firm is, what it does, what it thinks and how it is doing.

    According to the report made available to The Nation, more revenue growth was coming from developing markets – particularly Asia where revenues grew by 10 per cent, with strong performances in India and China.

    In North America and the Caribbean, revenues grew by eight per cent boosted by a strong performance from the United States (US), the firm’s largest market in the world.   While in South and Central America, revenues were up nine per cent.

    In Western Europe growth was steady, up six per cent.  Central and Eastern Europe posted robust revenue growth of 10 per cent.

    Demand for PwC’s network’s audit and assurance businesses remained strong despite fierce competition and price pressure across the world.

    In the year under review, PwC’s $15.3 billion assurance business grew by six per cent.

    Broader assurance services such as Information Technology (IT), risk and data assurance are all areas where PwC is driving innovation and increasing investment.

    Advisory growth of eight per cent to $11.5 billion was driven by an increased demand from clients for PwC’s network strategy through execution services and by excellent growth across a broad range of consulting, forensics and deals-related work.

    In particular, cyber security, digital and data & analytics services benefitted from the company’s significant recent investments.

    The strong market for deals positively impacted its network’s tax operations, with revenues increasing by seven per cent to $9.1 billion.  In addition, there was continuing strong demand for compliance, corporate consulting and transfer pricing work globally.

    Moritz, however, said quality continues to be the driving force of all PwC’s operations around the world.  He said 2016 alone, $500 million was invested to further enhance the quality and delivery of its services as the company continues to focus rigorously on meeting the needs of its stakeholders.

    He added that the PwC network welcomed a record level of new joiners, adding 58,081 people in 2016, including 26,780 graduates. Overall PwC’s global headcount grew by over seven per cent to more than 223,000 people.

  • MAN canvasses policies to stimulate economy

    The Manufacturers Association of Nigeria (MAN) has canvassed a strong focus on price stability and economic growth, with integration of the monetary and fiscal policies to stimulate the economy.

    Speaking to The Nation, its President, Dr. Frank Udemba Jacobs, said there was a need for the Federal Government to show strong commitment to resolving the challenges facing the nation by reducing the interest rate on refinancing operations if the manufacturing sector had to stimulate the economy.

    He said: “The government must work towards the reduction of Company Income Tax (CIT) to 15 per cent for manufacturers as a way of attracting further investments aimed at pulling the economy out of recession as has been done in other countries with success. It must support the banking sector to maintain the flow of credit, and low interest rate of not more than five per cent”.

    The MAN chief canvassed the exploitation of the over 35 solid minerals across the country.

    He said some of the minerals, such as metals, chemicals, iron and steel could be exploited for motor vehicle and miscellaneous assembling.

    He  made a case for adequate incentives to attract investors into the sector.

    The MAN chief said investment in the petroleum sector was critical, as the nation currently boasts one functional petro-chemical plant, which sadly does not produce all types of petro-chemical raw materials needed in the manufacturing sector.

    Pointing out that economic diversification would be difficult without a vibrant manufacturing sector, Jacobs said economic diversification attained by highly industrialised economies such as the United States (U.S), Japan, China and Malaysia was successful principally as a result of deliberate policies by the governments.

    He, therefore, urged the government to borrow a leaf from these countries, pointing out that Nigeria could pull out of recession if enough stimulus was given to the manufacturing sector.

    Jacobs further advised that all efforts to increase non-oil revenue should be pursued vigorously by removing all obstacles restraining the growth and competitiveness of the sector such as the indiscriminate changes in the Monetary Policy Rate (MPR).

    He observed, for instance, that the MPR changed as many as four times between 2014 and July 2016, with distorting effects on the economy.

    Others, he said, are the exclusion of 41 items, some of which are essential raw materials from the official Foreign Exchange (forex) market as well as failure to synchronize monetary and fiscal policy actions.

    The MAN chief0 also said there was the need to encourage the exportation of manufactured and other non-oil products as a way of boosting foreign exchange earnings, and also conclude the review of the Export Expansion Grant (EEG), which has been going on since 2014.

    According to him, this would make the incentive available to exporters as a way of encouraging export and allowing the payment of import duties and Company Income Tax (CIT) with the existing Negotiable Duty Credit Certificate (NDCC).

    “There should be development of support infrastructure so as to facilitate the country’s industrialisation efforts. It is not advisable to use borrowed funds only to finance infrastructure development. The private sector should be actively involved in infrastructure development.

    “Government should, therefore, resuscitate the Public Private Partnership (PPP) programme through the establishment of concession agreements under the Build-Operate-Transfer (BOT) basis in road and rail construction and maintenance,” Jacobs added.

    He also advised on the need to adjust downward taxes such as corporate income tax, Value Added Tax (VAT), and Personal Income Tax. According to him, it is not advisable to increase CIT, VAT and PAYE as the productive sector is already hit with dwindling investments.

    He argued that any further tax increase will crowd out more investments in the sector. Instead, he suggested that current Tax-Gross Domestic Product (GDP) Ratio of 12 per cent, which is below the World Bank benchmark of 18 per cent may be raised by widening the tax net and ensuring that all taxable individuals and entities are covered.