The Nation Newspaper

Category: Jobs

  • Vocational centres: keeping jobs hope alive

    Lagos skill and training centres point the way to job creation, writes SEYI ODEWALE.

    It is a grim picture. With an unemployment rate of 23.9 per cent and 20.3 million unemployed youths, the job challenge is scary.

    A Federal Ministry of Youth Development report, compiled in December 2008, indicated that the country generates about 4.5 million new entrants into the labour market annually.

    The report said the the figure comprises one million people who are out of school. About 2.2 million primary school leavers, it said, would not go to secondary school; one million secondary school leavers not proceed to higher institutions and 300,000 graduates can’t find jobs.

    In the Southwest, the unemployment rate in the last three years has gone up, with Osun State having the largest figure of 17.2 per cent. Lagos has the least with 7.6 per cent.

    Two years ago, the Federal Ministry of Youth Development reported that 42.2 per cent of Nigeria’s youth population was out of job. But, despite the depressing figures, there seems to be a ray of hope for the unemployed with the technical and vocation skill acquisition scheme the Lagos State government introduced three years ago.

    The scheme is intended to train graduates of any discipline to be self-employed and create employment. The Executive Secretary, Lagos State Technical and Vocational Education Board, Olawunmi Gasper, an engineer, said the focus is on acquisition of knowledge and skills’ development. “This is in terms of quality vocational training and quality technical skill, to allow the youth take up the immense opportunities out there, either in industry, construction, manufacturing or hospitality,” he said.

    Gasper, a former Rector of the Lagos State Polytechnic, said a lot of gaps would be created in virtually all the sectors of the economy when the local content act becomes fully operational in other sectors aside from oil and gas.

    “There have been studies that showed that there are gaps in the economy where youths can be gainfully engaged. In the construction industry for instance, we have seen a huge and wide gap which is filled by skilled craftsmen, tradesmen and technicians from China, Philippines, Vietnam and India, even from our neighbouring West African countries,” adding that what is required is to “get our youth to acquire as much skills as possible in order to fill those gaps,” he said.

    He spoke about a huge capital flight involved in allowing expatriates take up positions, which Nigerians ordinarily could fill, saying the figures involved in capital flight are so embarrassing. It is about N960billion, which is about $6billion, being taken by most foreign construction firms from this country annually, including our neighbouring countries. Look at the economies of most of these African countries, none of them has up to $6 billion as budget. And that is only in the area of construction.

    “Take welding where we have welders of various kinds. We have under water welding for those in the petroleum and maritime sectors,” but lamented that those working in these areas are foreigners, who are either from the Philippines, Vietnam, Bangladesh or Pakistan. So how long can we continue with this? he queried.

    That is why if there is any good thing that has happened in this country, it is the local content act, he said, This has created a lot of changes, so much so, that it might be difficult for anyone to bring in personnel in the oil and gas industry from another country. If we have this act applicable to the construction and hospitality sectors, we will be creating employment, he said.

    But before we get to that level, it is essential for us to have a critical mass of young Nigerians that will take up those positions. If they are well trained and duly certified locally and internationally, they will be ready to take up positions. That essentially is the focus of the Lagos State government, he added.

    He said the state is involved in training a critical mass of youth and redirect them to technical and vocational skills to address youth employment, adding that since its take-off, the programme has proved its mettle in terms of the numbers oftrianees. He said about 6,000 have been trained so far .

    Gasper said there are programmes for university graduates, which is actually a graduate conversion programme. He said much has been recorded in the area.

    He said: “We have transformed so many graduates, irrespective of their disciplines. It is a combination of vocational skills and entrepreneurship training. The reason for this enterprise education is that graduates would be produced to seize and manage opportunities and position themselves very well. As a graduate, the way you manage people will be different from a non graduate.”

    Gasper said graduates who have been trained as auto mechanics abound. The beauty of the training, according to him, is that a trained graduate in any skill will be able to set up a small scale business which may later blossom into a big enterprise.

    “For instance, if as a graduate you acquire the vocational skill in auto mechanics, you will be able to repair automobiles; you can diagnose vehicles. The next thing you will be required to do is to set up a small garage. You have gone through enterprise education, you know how to keep records.

    “You know what is required in the bank in terms of getting facilities; you know what is required in terms of writing proposals; you know that an invoice must be issued to the customers and you already know that a report must be issued to the owner of the car after you must have repaired it. So a small, one-man, or two-man garage with two to three vehicles, a day, will grow eventually in the neighbourhood,” he said.

    The essence of acquiring such skills, Gasper said, is to train one to become business owners as a university graduate, irrespective of the discipline of study. We believe strongly that with technical and vocational training in Lagos State, we would build so many small business owners, who in the next five years will become medium entrepreneurs and eventually grow big,” he added.

    The board, Gasper said, has been inundated with applications from graduates. Over4,000, according to him, have applied to train. “They are graduates of History, Literature, International Relations and so forth. If the training is within your discipline, you are better for it, but if not and you are passionate about it, you can also learn. You will be amazed the way graduates in the core arts now handle spanners as auto mechanics and this they learn within a short time.

    He said in the last one year, the board has produced about 500 graduates, “I mean university graduates,” he said, adding that the reason it appears a bit slow, is that vocational skills training entails life skill training, which is called employability skill training. This is basically a mindset change training. “We make them go through a psychology of change. This is because they are graduates with hopes of working in blue chip organisations, where they expect to be chauffeur-driven to work, but which, unfortunately did not materialise for them. We will tell them that we are not saying that tie-knotting is not good, but getting their hands dirty is better and more rewarding,” Gasper said.

    The essence of this, he said, is for them to see the opportunities that abound if they change their mindset. “This is working wonderfully well. We have sent a batch of 100 after which they will start the vocational skill training proper,” he said.

     

    Funding

     

    To some people, such training does not come free, but Gasper said it is free and no strings are attached. “None of the trainee is paying a dime. It is all free. It is tax payers’ money. This is because we are really concern about the issue of unemployment in Lagos. The little we can do, which is what we are doing with Technical and Vocational Education Training (TVET).

    On whether stipends should be given to the trainee, Gasper said, it is very impossible to train them and give them stipends. “We cannot give them what we don’t have. If we start with that now, it becomes a major issue, it will generate attraction and everybody will come because of the stipend. But if you can persevered for about nine months, you will gain what will last you for life,” he said.

  • How banks can help SMEs create jobs

    How banks can help SMEs create jobs

    Small and Medium Scale Enterprises (SMEs) hold the ace for job creation.Banks have realised that their survival depends largely on creating quality loans and volume deposits from the SMEs. They can do this by keeping the interest on loans low and making access to funds easier for the SMEs to create jobs, writes COLLINS NWEZE.

    There is good news from the Small and Medium Scale Enterprises (SMEs) subsector. Banks have recognised that the SMEs and medium-sized enterprises sector have significant growth potential and hold the key to job creation.

    At Skye Bank, Diamond Bank, FirstBank, Ecobank and Heritage Bank, among others, there is a new drive to get SMEs off the ground and keep them running. The best way of doing that is through SMEs funding from the lenders’ balance sheets and via the Central Bank of Nigeria’s (CBN) N220 billion special fund for the subsector.

    The Chief Executive Officer of African Guarantee Fund, Felix Bikpo, made this known, saying that the sector has the capacity to create two-thirds of the jobs needed to tackle unemployment has made the subsector more significant. He said the subsector holds the ace to taming unemployment in the country and, as such, must be made active if the unemployment rate, which is put at 24 per cent of adults between the ages of 18 and 60, is to drop.

    But he put a caveat: “Nigeria must tackle the challenges of infrastructure, especially power and roads, to create new SMEs or keep existing ones in business. There is also the need to create access to market and provide capacity, especially in keeping company financial records.

    The CBN defines SMEs according to asset base and number of employees. The criteria are an asset base of between N5 million and N500 million, and a staff strength of 11 to 300 employees.

    Findings showed that banks are becoming interested in the SMEs sector as yields on government securities drop. Equally, the raise to 50 per cent of Cash Reserve Requirement on public sector deposit makes SMEs the best place for banks to raise cheap deposits.

    Director, Enterprise Development Centre (EDC), Pan Atlantic University, Peter Bankole, said if a country wants to develop, it must start taking SMEs’ lending seriously. He said the National Bureau of Statistics (NBS) survey conducted last year showed that the SMEs sector will continue to play a dominant role in job creation in the economy.

    Bankole said the challenge remains that majority of SMEs are micro, stressing that the government was trying to move as many as possible from micro to small businesses because that will give better multiplier effects for the economy and create jobs.

    The International Finance Corporation (IFC) is partnering with 10 local banks to de-risk lending to the SMEs. IFC’s Nigeria Country Manager Solomon Quaynor said the corporation has realised that banks decry high risk transactions, such as lending to SMEs. He noted that when the subsector is unable to access funds, jobs may be lost and creating new ones becomes a mirage.

    He said the IFC has stepped in to de-risk such loans by providing financial infrastructure and developing collateral registry that will assist banks in lending to the subsector.

    Quaynor said since a lot of the SMEs do not have landed assets, except receivables, IFC is working with Corporate Affairs Commission (CAC), the Ministry of Trade and Investment to build a Registry system that will include the ability of SMEs to borrow from banks.

    General Manager, IBM Africa, Taiwo Otiti, said the SMEs tools help entrepreneurs manage their businesses properly, and in the process, making it attractive for banks to grant them loans and subsequently create jobs. He said SMEs remain the engine of growth for the economy, adding that they are the largest employer of labour within the economy. He said that when the SMEs businesses are run well, they will have the capacity to employ more people. “Part of the SMEs teaching is how to package their businesses to attract bank loans making it easier for them to create jobs,” he said.

    Analysts said reforms in the banking sector have also put higher risk management plans in place to ensure that SMEs get loans and repay them as and at when due.

    A Lagos-based SMEs Trainer and Facilitator, Chima Maduka, said the subsector constitutes an important vehicle for national development and could integrate a large segment of the populace in productive economic activities. He said the economies of the Asian Tigers or Asian Dragons of the highly free and developed Hong Kong, Singapore, South Korea, and Taiwan, owe their climb to economic pre-eminence largely to the existence of well-organised and efficiently run SMEs.

    He said SMEs remain a vehicle for employment generation and they provide opportunities for entrepreneurial sourcing, training, development and empowerment. Developing nations, such as Nigeria characterised as low income earners by the World Bank, value SMEs for several reasons.

    Banks have also taken major steps to see the emergence of well-structured and funded SMEs. Ecobank last week, signed a $50 million agreement with African Guarantee Fund to enable the institutions to work together to unlock the potential of SMEs in Benin, Burkina Faso, Cameroon, Côte d’Ivoire, the Democratic Republic of Congo, Kenya and Nigeria to deliver inclusive growth.

    Ecobank Group Chief Executive Officer Thierry Tanoh said the agreement reaffirms the lender’s commitment to supporting small and medium-sized businesses. He said the collaboration with AGF will further enable the SMEs to play a critical role in the socio-economic development of Africa, especially as it concerns job creation.

    The Managing Director/Chief Executive Officer of Enterprise Bank Limited, Ahmed Kuru, reiterated the bank’s commitment to supporting SMEs. He described the SMEs’ sector as critical to the development of the economy and job creation.

    Kuru, who spoke in Lagos while receiving the leadership of the Nigerian Association of Small and Medium Enterprises (NASME), led by Lizzy Okereke, the association’s Deputy President, Finance and Administration, said the lender realised the importance of SMEs in growing the economy and has since thrown its support to SMEs.

    He said the bank also supports organisations like NASME that champion the course of SMEs in the country. He called for knowledge sharing and capacity building among those that are interested in benefiting from the support that the banks are giving to the sector.

    FirstBank is giving SMEs the opportunity to grow their businesses so they can create the much-needed jobs. The bank said although the sector has the potential to employ a large portion of the population, lack of support from banks has derailed the sector’s vision.

    Diamond Bank reiterated its commitment to supporting small and SMEs in a bid to contribute to the economic development in a sustainable manner. The Managing Director, Diamond Bank, Mr Alex Otti, said there is need to empower micro and medium entrepreneurs in the country in areas where there were lack of funds.

    Skye Bank Plc has also organised a capacity building seminar for entrepreneurs and other small scale business owners to help them succeed in their businesses. The bank’s Group Managing Director/Chief Executive Officer, Kehinde Durosinmi-Etti said the seminar was part of the lender’s plan to support and promote the growth of the sector and indirectly create jobs for the population.

    The maiden Skye SMEs seminar with the theme: It is possible had in attendance many operators in the SMEs sector who came to gain fresh and new insights and trends into the operations, financing and management of SMEs.

    Durosinmi-Etti, who was represented by the bank’s Executive Director, Corporate and Investment Banking, Timothy Oguntayo, said the SMEs sector provides more opportunities and employment than the mining, oil and gas sectors. “The SMEs sector has the capacity to drive business and rural economic development in the country”, he said.

    Noting that over 32 million Nigerians were involved in the sector, Durosinmi-Etti said if the sector was well developed, it would have the capacity to solve the unemployment problem in the country. He promised that the lender would continue to play the role of a facilitator and development partner to help young businesses grow and realise their full potentials to the benefit of the nation, the people and the economy.

    Heritage Bank has unveiled plans to provide funding for the micro, small and medium enterprise (MSME) sub- sector of the economy.

    Speaking at the bank’s MSME Clinic held in Lagos, the bank’s Managing Director, Ifie Sekibo expressed the lender’s commitment to assisting MSMEs to become large corporate organisations that can be quoted on the Nigeria Stock Exchange (NSE) in the next three years.

    To further strengthen the partnership, the bank offers financial advisory services to the MSMEs, it is already collaborating with Enterprise Development Centre, Fate Foundation, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Lagos Chamber of Commerce and Industry (LCCI) on training the MSME operators.

    Despite these claims of supporting SMEs financially by banks, Ubiji Eke, an entrepreneur based in Lagos said the lenders are not doing enough. He said accessing bank loans has a lot of bottlenecks that make it difficult for SMEs to survive left alone creating jobs for the economy. He cited high interest rate which is over 25 per cent for SMEs. He said a lot of businesses cannot cope borrowing at that rate.

    He said banks need to review their rates, if they are serious about creating jobs through SMEs. “The rates at which are given have to be reviewed downwards if jobs are to be created,” he said.

    He said that by allowing SMEs access to credit at a reasonable rate, will create opportunities for the subsector and enhance their productive capabilities. He said high level of production will lead to distribution and merchandise of produced goods which will keep a large number of the population busy and committed to the role of job creation.

     

     

  • Words, phrases to avoid in executive resumes

    If you’ve been searching for executive positions for sometime, it’s possible that you’ve gotten into the habit of utilising catchphrases to describe yourself. While there’s nothing wrong with choosing great brand attributes to define who you are, you want to avoid those that sound generic to decision makers who read your executive resume.

    Sometimes, a word or phrase sounds impressive, but when broken down into simple language actually means that you are organised, or work well with others—something all executive candidates should be great at by now.

    To avoid sounding too clichéd or ordinary on your resume, let’s take a look at some phrases that you should and should not include.

     

    Phrases to avoid

    Once you’ve spent hours finding amasing skills and accomplishments to share on your executive resume, you assume your work is complete. But the real challenge comes with finding unique ways to describe those qualities.

    Many job candidates fall into a pattern of using certain words and catchphrases they know sum up skills into a neat little package. However, those very words have been seen time and time again by key decision makers and are just too redundant and inauthentic to offer real meaning.

     

    What are some of those phrases you want to avoid? Superior communication skills; team player; strong work ethic; exceeded expectations; and proven track record of success.

    While these phrases may describe you to a T, they also (should) describe every candidate who applies for any job in any organisation. These are base-level skills companies assume all candidates bring to the table. They don’t make you stand out as a top candidate.

    So, if you do list them on your resume, you run the risk of leaving the impression that you’ve either carbon-copied your resume—or you don’t have any more specific qualifications to offer.

     

    Words you

    shouldn’t avoid

    When it comes to choosing phrases to include in your resume, it gets a bit tricky. You don’t want to choose clichéd phrases that make your resume sound redundant, as it would by using the phrases listed above. Instead, you want to come up with descriptions based on specific experiences that show you’re an authentic candidate.

    A great way to come up with great descriptions is by combining action verbs with colorful adjectives.

    Here are a few action verbs to consider: Accelerate; orchestrate; incentivise; capitalise revolutionise; fortify; and catapult.

     

    And some adjectives that you might add include: encouraging; unbiased; courageous; upbeat; harmonious; confident; and impartial.

    There are many other strong words out there that can help you to create a more powerful presence on your resume. So, don’t be shy about looking for others that genuinely describe the impact you’ve had in every position you’ve assumed, as well as in your field as a whole.

     

    Some friendly reminders for the frustrated job seeker

    Looking for employment is no fun. Are you frustrated with your job search? If so, you are not alone. There is nothing more frustrating than looking for opportunities when none seem to exist. The following are a few tips the frustrated job seeker should embrace. The advice is simple and often discussed, but also often overlooked. Sometimes, the most basic advice is the most vital.

    Stand Out

    It is not an easy to stand out in the hiring environment most companies have adopted today. In today’s market, you are competing with many applicants for the same opportunities. You have to think about unique ways to use your resume and cover letter so you can stand out and communicate your brand effectively.

  • Welding no longer for drop-outs

    Welding no longer for drop-outs

    It used to be a job looked down upon. It is no longer so, as the educated can now be found in welding. What happened? There are now lots of opportunity to make money from the job. In the next three years, the government plans to create 35,000 welding jobs from the exploration of three deepwater oil fields. LUCAS AJANAKU reports.

     

     

     

    In the next three years, Nigeria is to create 35,000 jobs from the exploration of three major deepwater oil fields by Shell, ExxonMobil and Total.

    The projects are Shell’s Bonga Southwest, ExxonMobil’s Erha North and Total’s Egina oil fields. The projects have received the approval of the Federal Government, while the oil majors are bracing for the execution of the projects.

    Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB) Ernest Nwapa said about 20,000 tons of welding/fabrications jobs for the three projects would be carried out in-country.

    The Nigerian Institute of Welding (NIW), a body set up to regulate professional practice, said about 80 per cent of the works in the oil and gas sector of the economy is related to welding, adding that the country should leverage on this and build indigenous capacities to grow the economy.

    For job seekers, this is another window of opportunity to earn a decent living in welding/fabrication.

     

    Academic requirement

    Making a career out of welding does not require a college degree. A welder could obtain a certificate within six months. But whether a welder gets patronage depends on his skill and most jobs require passing a hands-on welding test.

     

    Choosing a career path

    Job and advancement opportunities abound in welding than any other career choice. Welders are needed in almost every industry and those who want to advance their career have the ability to do so with additional schooling. Welders can find career opportunities in inspection, engineering, robotics, education, project management and sales.

     

    Travelling opportunities

    Welding jobs are done everywhere ranging from the bottom of the ocean to outer space and everywhere in between! Welders have opportunities to travel. Travelling jobs typically pay the most and there is no shortage of openings. Welders who travel for a living are known as “Road Warriors”. The road warrior lifestyle is a culture and a way of life for many people. It is a small community of welders and craft professionals that literally live on the road, eat out every night and get paid very well to see the world.

     

    Travelling jobs: Industrial shutdowns

    Welders who work on industrial shut downs travel from place to place helping the industries that manufacture products keep their plants operating trouble free. Industrial shutdowns typically last from a few days to a few months. For most people doing this type of work, the traveling is done within about a 1000 mile radius of their home. Welders who work shutdowns typically spend six months out of the year on the road and the other six months taking time off.

     

    Ship building, repair

    The ship building industry literally has communities built for welders to live because of their need for skilled welders. Shipyards are always hiring welders known as “independent contractors” to fill the job openings they have when fulfilling large contracts. Welders can help build specialty research vessels to aircraft carriers. People who work in shipyards typically travel to the ports where the work is to be done. Shipyard jobs can last a few weeks to a few years depending on how many ships need to be built. Some welders that specialise in ship construction and repair travel yearly.

     

    Military support

    The military always needs welders to support the troops. Jobs in this category are typically run by contracting companies that specialise in building infrastructure and repairing military equipment. Building pipelines, repairing tanks and outfitting military vehicles are some of the works welders do.

     

    On-board ship maintenance, repair

    Life can literally be a cruise working to maintain and repair passenger ships. This type of work requires the welder to live on the ship while it travels the world. Ships always require welders to keep replacing pipes and doing repairs while the ship is out at sea. Working on a cruise ship means you can literally be in a new country every week. Welders who work on cruise ships not only get paid well but receive free room and board, chef prepared meals, access to all of the amenities and a lifestyle that most people only get to experience once in a lifetime, if at all.

     

    Pipeline installation

    Pipe line welders travel where ever there are pipe lines being installed or repaired. The three new deepwater oil fields scheduled to be developed soon in Nigeria offer opportunities for welders. This type of work often requires the welder going to rig for weeks and this translates to good earnings for the welder.

     

    Underwater welding

    Welders can work at the bottom of the world’s oceans. This is a highly specialised skill that can take can take the welder to places. Underwater welders travel the world going from one job site to another.

     

    Skilled welders are hot cakes

    Welding is one of the few career choices that are in high demand at all times. Since welders are needed in almost every industry, it gives them the flexibility to switch industries without changing careers. Welding has endless opportunities that keep fueling the demand.

     

    You can earn fat

    A highly skilled welder can earn the salary of a doctor or a lawyer. Welding is one of the very few skills that can earn you a six figure income without a college degree. Highly skilled welders that are willing to travel and/or work in hazardous conditions can earn well over $100,000 a year! Here are some examples of welder salaries:

    Travelling industrial pipe welders earn anywhere between $50,000 and $185,000 a year.

    Under water welders can earn $100,000 to well over $200,000 a year.

    Military support for welders can start at $160,000 to more than $200,000 a year in the Middle East.

    When it comes to welding, the salaries vary a lot. It all depends on how skilled you are and how far you are willing to travel. Local jobs typically don’t pay much or require a lot of skill. On the other hand if a student learns to weld pipe and is willing to travel then the salaries are almost too good to be true. As a welder, your career is what you make of it. You can earn as little as $20,000 a year or you can take your career seriously and shot for the top.

     

    Welding, the ultimate green

    collar job

    Green collar jobs are where the energy industry is going. There is a need for alternative energy sources but at the moment nobody knows what source of green energy will come tops.

    As a welder it does not matter what energy sources will be the winner. Welders are going to be needed no matter what is built as long as it is made of metal. The safest bet for a green collar job is welding because no matter what technology is developed welding is a needed to make it a reality.

     

    Awesome future

    Welders have always been in demand. It does not matter what the economy does as long as there is an industry that is thriving. As a welder you can change industries in a moment’s notice without changing careers. In recent years there has been a recession that hit many careers hard but welders simply shifted to working in the ship building industry.

    Looking into the future, our country’s infrastructure has been crumbling for decades and a lot of money is being spent on developing alternative energy sources. Welders are a major part of these industries. It does not matter if it is building bridges, nuclear power plants, windmills or drilling for oil. Welders are going to be needed as long as the world needs energy, infrastructure and defence products. It just comes down to the world’s economy’s cannot survive without the technology of welding. The future outlook for welders just keeps looking better while other career choices seem to be fading away.

    About three years ago, NIW earned its provincial Authorised National Body (ANB) status of the International Authorisation Board (IAB), a feat that made NIW and consequently Nigeria, to be the only country within sub-Saharan Africa and the second only on the continent after the Southern African Institute of Welding (SAIW) authorised to run the International Institute of Welding (IIW) qualification examinations directly.

    The scope of approval granted NIW for IIW qualification examination cadres encapsulates the International Welder (IW), International Welding Practitioner (IWP), International Welding Specialist (IWS), International Welding Inspection Personnel (IWIP), International Welding Technologist (IWT) and International Welding Engineer (IWE).

    ANB-Quality Representative in Nigeria, Ayo Adeniyi said welding is not a closed profession with stringent entry requirements. According to him, welding personnel which include the welder, the welding inspector, welding supervisor, welding designer and welding engineer can be attained with minimal educational qualification. “The qualification for you to become a welder ranges from Ordinary Level School Certificate (OL/SC) to professorship. This means if someone has OL certificate, such a person could put in for training as a welder. Similarly, a person with higher educational degree could also choose to go into the welding profession. As I explained, the welder is the last person that joins the designs while the inspector is also there to do his work with the engineers, all acting within the value chain,” he said.

    He said the body was working with the NCDMB to actualise the vision of the Federal Government. “Welding takes about 75 per cent of the works in the oil and gas sector. Nigeria is basically an oil and gas economy. So, if you want to create more jobs, then you must take a look at the welding content because that is where jobs can be created in-country. We are working towards meeting the aspirations of the Local Content Act. The IOCs have a penchant for wanting to repatriate funds by giving excuses that facilities are not in the country to fabricate some of the things needed in the oil and gas industry but the government insists these things must be done in-country,” he said.

    Training of welders to international standard, he said, could be challenging because of its being capital-intensive. He said that should not be a morale dampener as people could get the basic training and acquire the international certification through “continuous professional self-development.”

    “We just completed an international welding training. Another batch of welders will be trained in September in Port Harcourt. Though the government is also engaged in training welders through agencies such as the Niger Delta Development Commission (NDDC), it is the forces of demand and supply that determine who gets what and when in terms of job placement. You cannot people and force them on the IOCs. The fact that somebody is trained does not mean the person is competent. Welding is a competency-based task and performance matters,” he added.

  • What you need to know about the new Pension Scheme

    The new pension scheme is contributory, fully funded, privately third party custody of the funds and assets based on individual accounts.  It ensures that everyone who has worked receives his or her retirement benefits as and when due.  It covers all employees in the Public Service of the Federation, the Federal Capital Territory and the Private Sector of the economy.  The existing pensioners, employees who have three years or less to retire and the categories of persons covered by the provisions of section 291 of the 1999 Constitution of the Federal Republic of Nigeria are exempted from the new pension scheme.  Any employee with more than three years to retire comes under the new pension scheme.

    The new pension scheme is mandatory for all categories of employers and employees covered under the Pension Reform Act.  There is no merger of private sector pension with that of the Public Sector pension since the sources of funding are not the same.  However, both are now being regulated under same rules and regulations.

    The main objectives of the Pension Reform Act 2004 are as follows:

    • To ensure that every person who worked in either the public service of the federation, federal capital territory or private sector receives his or her retirement benefits as and when due.
    • To assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age and
    • To establish a uniform set of rules, regulations and standards for the administration and payments of retirement benefits for the public service of the federation, federal capital territory and private sector.

    This is different from the old pension scheme because most of the old pension schemes are not fully funded.  Therefore, upon retirement, there were no ready funds to pay the pensioners.  The new pension scheme is fully funded.  Money is contributed into individual employee’s Retirement Savings Account (RSA) and when he or she retires, there will be money in his or her RSA to pay his or her pension.  Private sector pension schemes will be allowed to continue provided if there is evidence to show that the pension scheme is fully funded at all times, any shortfall made up within 90 days, pension fund assets are segregated from the assets of the employer/company, the pension fund assets are held by a licensed Custodian and the scheme is specifically approved by the National Pension Commission (PenCom).

    An employee shall make monthly contributions of a minimum of 7.5 per cent of the total of his or monthly emoluments (that is, monthly basic salary, transport allowance and housing allowance) into the RSA.  The employer also shall contribute a minimum of 7.5 per cent of the employee’s monthly emoluments towards the retirement benefits of the employee.  However, an employer can make all the contributions on behalf of the employee without making any deduction from the employee’s salary except that such contribution by the employer shall not be less than 15 per cent of the monthly emoluments of the employee.  Your contributions are just savings out of your emoluments towards your old age and the employer’s contribution will only increase such savings.

    Pension contributions are paid directly to the PFC to be held on the order of the PFA.  A fully funded pension scheme exists where pension funds and assets match pension liabilities at any given time.

    RSA is similar to a bank account except that no contributor can withdraw money from the RSA before his or her retirement.  The PFA is required to invest the money and issue statements of account at least once every quarter to the contributor.  Movement from one employment to another does not affect pension under the new scheme.  The Reform has removed the bottleneck associated with transfer of service from one organization or sector to another, especially with regard to qualification for pension and the sharing formula for payment of pension as between employers.  When you change jobs, the RSA remains with the PFA of your choice for as long as you want.  You simply notify your new employer of the details of the PFA that manages your account and thereafter, your contributions will be sent to the Custodian of the PFA.

    Employee’s right to accrued retirement benefits for the previous years he or she has been in employment is guaranteed by the Pension Reform Act 2004.  In the case of the public service of the federation and the federal capital territory, where pension scheme was unfunded, the right would be acknowledged through the issuance of a “Federal Government Retirement Bond” to such employee.  The bond will be redeemable upon retirement of the employee.  The Federal Government has established a Retirement Benefits Bond Redemption Fund Account in the Central Bank of Nigeria.  The federal government is already making a monthly payment into the fund of an amount equal to 5 per cent of the total monthly wage bill payable to all employees of the federal government and the federal capital territory.  Any company operating a Defined Benefit Scheme must, in addition to satisfying other conditions specified in the Act, open RSAs so that the pension funds can be held by a custodian.

    In the case of funded pension schemes in the public service of the federation and the private sector, employers shall undertake actuarial valuation of the employee’s accrued benefits and credit the RSAs of the employees with such funds and in the event of any deficiency, the shortfall shall become a debt and shall be treated with same priority as salaries owed.  The employer shall also issue a written acknowledgement of the debt and take steps to meet the shortfall.

    When a PFA (Pension Fund Administrator) fails or is liquidated, the pension funds and assets in the RSA are kept by the PFC and as such the liquidation of the PFA will not affect the funds and assets.  Besides, every PFA is expected under the Pension Reform Act 2004 to maintain a statutory reserve fund as contingency fund as may be determined by National Pension Commission.  The Pension Reform Act 2004 allows any employee to complain about any PFA to the National Pension Commission (PenCom).

    The government cannot tamper with the pension funds in your RSA because it does not have access to the account.  Besides, the government is primarily concerned with ensuring the safety of the money in your RSA through the enforcement of strict rules and regulations.  The new pension scheme entrenches the principles of transparency and accountability as reflected in the reporting requirement of the PFAs and PFCs to the Contributor and the National Pension Commission.  An employee has the right to choose who manages his RSA and the right to receive statements of his account on quarterly basis with details of contributions made and returns on investment.

    Upon retirement, an employee can withdraw a lump sum from the balance standing to the credit of his or her RSA provided the balance after the withdrawal could provide an annuity or fund monthly payments that would not be less than 50 per cent of his monthly pay as at the date of his or her retirement.  However, an employer may choose to pay any other severance benefits over and above the retirement benefits payable to the employee subject to the terms and conditions of his or her employment.

    A programmed withdrawal is a method by which the employee collects his or her retirement benefits in periodic sums spread throughout the length of an estimated life span.  While an annuity is an income purchase from an approved life insurance company which provides monthly or quarterly income to the retiree during his or her life time.

    Where an employee who has been contributing under the new pension scheme dies before his or her retirement, the retirement benefits shall be paid to his or her beneficiary under a Will or the spouse and children of the deceased or in the absence of a wife and child, to the recorded next-of-kin or any person designated by him or her during his or her life time or in the absence of such designation, to any person appointed by the Probate Registry as the Administrator of the Estate of the deceased.

  • Plant engineers’ due season

    Plant engineers’ due season

    With the opening up of the power sector and planned revival of the real sector, plant engineers may soon become hot cakes in the labour market. Daniel Essiet reports.

     

     

    As the plant head in a company in Ikeja, the Lagos State capital, Philip Okon handles anything from a drop in output to equipment fixing.

    Some time ago, the company had a leak in one of its production units which caused impure products to be formed. He had to tackle the problem since the company didn’t want to produce faulty drugs. His intervention saved the company lots of money.

    Plant manager play key roles in organisations. They manage the production shifts. If anything happens, they call a meeting, involving chemical engineers and other analysts.

    As a team, they find out what the problem is and set out the priorities.

    Once they find the problem, they look for the way out.

    It is their job to ensure that everything runs smoothly.

    There are lots of job prospects for plant engineers, especially with the opening up of the power sector.

    The Executive Director, National Centre for Agricultural Mechanisation (NCAN), Mr Okechukwu Azogu, said employment growth was expected in engineering, especially for those who can manage the production process. The economy, he said, required a lot of expertise, with the reforms in the power sector and other areas of manufacturing.

    According to him, engineers with background in production will always find a job, because there will always be some kind of system, whether it’s people or products, that will need to be developed, improved, implemented and evaluated.

    With their skills, plant engineers can be used in any type of organisation.

    Plant engineers, he said, were needed in food processing companies which take crops and process them to make food and animal feed ingredients, and naturally-derived alternatives to industrial chemicals.

    The opportunities seem endless because they centre on complex problem-solving issues related to agricultural production and processes.

    Their key areas of responsibilities are implementing projects that improve safety, quality and production efficiency and output.

    According to him, job prospects are very good in the energy industry for plant engineers.

    He sees hiring of plant engineers increasing with new power stations coming on stream with the concessioning of the Power Holding Company of Nigeria (PHCN).

    For him, engineers will continue to be in demand and he doesn’t see that dropping in the near future.

    In some areas of the economy, plant engineers are also designated as production engineers.

    By job description, they help management deploy production machines effectively to make a product or offer a service.

    The Managing Director, Elkins Marine Training International, Dr Hugh Friday Nwaneri, said there are job opportunities for plant engineers. This is because companies hire them to manage machinery and equipment.

    Across the country, manufacturing companies, such as Cadbury, Coca Cola, are among the major employers of plant engineers. Many large companies employ several engineers to ensure that there is an engineer on the premises round the clock.

    They work in different manufacturing industries, and in factories, warehouses, laboratories, and construction sites. In fact, just about every large scale manufacturer needs plant engineers to help them solve their problems.

    Largely, manufacturing firms employ plant engineers to conduct daily safety checks on heavy machinery and equipment. They perform tests to ensure machines are working smoothly.

    In many places, companies are legally required to perform regular safety checks and local inspectors liaise with plant engineers to ensure that all health and safety regulations are being observed. Plant engineers must perform regular preventative maintenance on equipment, and this requires that they have a thorough knowledge of the machinery involved.

    For this reason, plant engineers are expected to liaise with management and production teams to rectify problems with machinery and equipment that slow down production or create safety hazards. Some plant engineers are responsible for developing ideas to speed up production and cut costs.

    With the reforms in the power sector, he said plant engineers would be engaged to perform basic tasks related to maintenance and safety.

    Nearly all plant engineers work full time. Because this can be a very deadline-driven occupation, working overtime is frequently required as deadlines approach.

    Most plant engineers start as a member of a plant crew and handles general maintenance issues. Senior engineers can be promoted to supervisory and management positions. Engineering managers must help to train and recruit new employees as well as coordinate staffing schedules and manage departmental budgets.

    Entry-level positions often deal with maintenance and repair of plant equipment while senior positions are usually managerial in nature.

    The daily routine of plant engineers includes providing assistance and direction to other plant personnel in proper plant procedures and manufacturing methods. Part of this routine involves providing guidance for preventative and repair maintenance to ensure that plant operations are able to meet output quotas and deadlines.

    A former president of the Nigerian Institution of Structural Engineers, NIStructE, a division of the Nigerian Society of Engineers (NSE), Kunle Adebajo, said engineers were central to innovation and improving the quality of life.

    Adebajo, Chairman/CEO, Ove Arup, an international engineering consulting firm, said companies seek out job candidates with an engineering degree that is relevant to the particular industry, such as a mechanical, , chemical, or electrical engineering degree. Because of this, employees with such skills are in high demand.

    According to him, most employers require job applicants to hold a bachelor’s degree in engineering. Depending on the industry of the employer, a degree in chemical, civil, electrical or nuclear engineering may be more relevant to the desired job.

    A bachelor’s degree in engineering is required for almost all entry-level engineering jobs.

    Graduates with degrees in electrical, electronics, mechanical, chemical, civil, or materials engineering are hired for plant engineering positions.

    Entry-level salaries vary based on experience, education, supervisory responsibility, geographic location, size, and industry of the employer.

    The general engineering training, Adebajo said, allows them to shift to fields with better prospects to those that more closely match their interests.

     

     

  • 18 pieces of advice for new grads

    The following is an imaginary commencement address to graduates about to work by the Chief Executive Officer of Accretive Solutions, Richard A. Moran, a social scientist and best-selling author. He’s an expert at organisation effectiveness (and recognised as a top LinkedIn Influencer!) He offers 20 pieces of amazing advice targeted specifically for new grads:

     

    1. Avoid “Reply All”. It is the most dangerous button on your screen. It looks innocent enough, a little envelope with an arrow. Hitting that innocuous looking icon can change the course of a career even at a tender age. Too often, the “Reply All” sends information to the people you least want to see it.

     

    2. Remember that there is no “Never Mind” icon.  I suspect this technology tip comes while many of you are laden with guilt that you don’t know how to code in Ruby on Rails or the latest language. You will always feel guilty about what you are unable to do technically. Get over it and enjoy the wonders of the technology that you do know even if it is only the on/off button.

     

    3. Enjoy everything you know how to do right now because in a minute the technology will change and you won’t know how to do anything. And make sure you figure out how to save those photos you’ve been taking on your phone. You will never look this good again.

     

    4. Carry extra power cords. You can never have too many and don’t let others borrow them. You will not get them back.

     

    5. Use the talk/voice function on your cell phone occasionally. The phone has a microphone that can come in handy when talking to Mom and Dad. They may want more details than a text can provide.

     

    6. Don’t participate in a conference call from a public bathroom stall. Everybody will know- it echoes!

     

    7. Facebook Friends may or may not be real friends. Know the difference and pay attention to real friends. And remember we are all stalked on Facebook. Social media is probably less friendly than you think. It may be very so for you, if not for most people.

     

    8. Be gentle with those who work around you. They are not “it”, even if they are so distant from you. Reheat burritos at work sparingly, they smell up the whole place.

     

    9. Never talk about pay or dwell on what early employees at Google or Facebook make. There will always be those who make more and those who make less. An African proverb says that you think your father’s farm is the biggest, until you visit somebody’s father’s farm. Pay is not everything. If you love what you do and you get paid for it, consider it a bonus.

     

    10. Assume that all things you do on your computer at work will be monitored and reviewed. Never let your guard down.

     

    11. Co-workers should never see you naked – either digitally or literally.

     

    12. Know what goes into a performance review and keep track of what you do during the year. No one else will keep track, not even your boss until appraisal time, except he is planning ‘evil’ against you.

     

    13. The world is a difficult one now. Be security conscious: mind the friends you keep, what you say, especially in public places, maintain good relations with your neighbors, juniors, domestic employees and others.

     

    14. Never go to more than two meetings a day.

     

    15. Play hooky. When your team wins, when your spouse is available for a special day, when things are slow, when you really need a day to regroup, call in sick. Check your email while you are out.

     

    16. Create a “Personal Board of Directors.” Since mentors are so difficult to find, make up your own board and imagine what advice they would give. My board is composed of three people who are no longer walking the earth.

     

    17. Treat every job as if you will be there for a long time, even if you know you won’t be. If you are seen as a short-timer, no one will invest in making friends with you.

     

    18. Where you work is like selecting a college. It’s not the best place that accepts you; it’s about the best match.

     

     

     

     

  • Jobs: SMEs to the rescue

    With a projected five million jobs in 2015 under the Small and Medium Enterprises (SMEs), the Federal Government is set to tackle graduate unemployment. TOBA AGBOOLA reports.

     

     

     

    For the many graduates leaving school every year, there is good news from the Minister of Industry, Trade and Investment, Dr. Olusegun Aganga and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

    They may not all have to pound the streets in search of jobs as five million jobs will be created under the Small and Medium Enterprises (SMEs) before 2015.

    Aganga said to create jobs for youths, particularly graduates, the Federal Government has adopted some measures through the SMEs, with no fewer than 4000 Corps members trained in SMEs. The measure, he said, is meant to make the NYSC members self-reliant and become employers through entrepreneurial engagements after completing their one year compulsory service.

    Records showed the impressive impacts of SMEs on the economic performance index. For instance, the SME sector is said to have employed more than 31 million people, thereby significantly contributing 46.54 per cent to the Gross Domestic Product (GDP).

    According to information from the Federal Ministry of Youth Development, the population of youths is put at about 67 million. Of this number, about 30 million, representing 46 per cent, is said to be unemployed. The report showed that of the number seeking paid jobs, the number of those with certificates outweighs the number of those who have no certificates.

    There are two variants of the National Youth Service Corpos (NYSC)/SMEs concept. One involves the government taking the entrepreneurial campaign to the universities nationwide by establishing ‘’Enterprise Centres’’.

    The idea, Aganga explained, is to make the students entrepreneurs instead of job seekers when they graduate. The other is a SMEDAN programme called ‘’One Local Government, One Product (OLOP)’’, which entails taking the programme to the rural communities. Some local governments have been selected for the pilot scheme.

    Aganga told The Nation that the government is set to crash the cost of accessing funds for the intending entrepreneurs.

    “With the Presidential directive that the Bank of Industry (BoI), which lends at single digit interest rate, be recapitalised, many more SMEs will be able to access cheap funds at minimal costs when the cost-reduction process is completed,” he said.

    He said all over the world, SMEs empowerment has become the main economic growth strategy, considering the high employment generation capacity of SMEs, adding that with about 17 million SMEs in Nigeria, the creation of five million jobs was very possible.

    “Recent data provided by SMEDAN and the National Bureau of Statistics, put the number of MSMEs in Nigeria at 17,284,671, with total employment put at 32,414,884. If each of these SMEs is empowered to create one job each, that makes about 17 million jobs. If 50 per cent of this figure create one job each, that means 8.5 million jobs will be created.

    He said if a quarter of the total is empowered, and they create one job each, over four million jobs will be created.

    Aganga said the figure could go up, adding that he has directed the parastatals to work out a job creation profile around the model, so it can serve as a key performance index for the country. “Our job is to put structures in place to make it happen,” he said.

    While encouraging more entrepreneurs to come up with ideas that could create quality jobs and enhance inclusive economic growth, he said the Federal Government is committed to providing the enabling environment for businesses to thrive.

    He stressed that all the factors needed for profitable and sustainable business were abundant in Nigeria, citing market and raw materials as critical success factors of business/investment.

    SMEDAN’s Alhaji Bature Masari says the agency is set to create five million jobs through SMEs before 2015, adding that the agency had mapped out strategies to achieve the goal.

    Masari said the strategies include the implementation of the National Enterprise Development Programme (NEDEP) and OLOP scheme across the federation.

    He added that NEDEP was developed with the objective of harnessing the opportunities in the MSME sector to drive inclusive economic growth through skills training and development, job creation and wealth generation.

    “Our objective is that within the few years of implementing NEDEP and other programmes to be initiated, we will generate an estimated five million direct and indirect jobs,’’ he said.

    Masari said the agency would work with BoI and the Industrial Training Fund (ITF) on MSMEs development, skills training and acquisition as well as business services development.

    “Part of our strategy is to create new clusters of businesses based on competitive and comparative advantages already identified through the OLOP initiative and raw materials mapping in the 774 Local Governments,” he added.

    He said the government would set up an SME Council, comprising the federal, state and local governments to streamline and harmonise all SMEs development activities across the country to achieve maximum impact.

    ”If we are going to develop our economy and turn our quantity advantage into productive advantage, one of the most important sectors that we have to focus on is the MSME sector.”

    Masari said the development of the sector would help in job and wealth creation, and address the problem of unemployment and youth restiveness in the country.

    He said the government was restructuring the organisation to achieve its mandate and added that SMEDAN had just opened new offices in 11 states.

    Also, with the introduction of the over-the-counter (OTC) market by the National Association of Securities Dealers (NASD), two weeks ago, SMEs seeking long-term funds no longer have to fear.

    OTC is a decentralised market of securities not listed on an exchange, where operators trade over the telephone or electronic network, instead of a physical trading floor, or central exchange. The OTC is designed to provide a platform for the companies to access funds from the market.

    The Managing Director, NASD, Bola Ajomale, said the initiative means a lot to the SMEs.

    “Though the market is meant for any firm with signs of growth and good corporate governance, prominence is given to SMEs because they are the bedrock of any economy and not the blue chips. It will go a long way in providing funds for them to grow their business and enhance their potential,” he said.

    According to Ajomale, all that an interested company needs to do is to apply to raise funds through an initial public offer (IPO), before it is admitted as a security for trading on the platform through any of the 40 stockbrokers that have been registered by Securities and Exchange Commission (SEC), the apex regulator of the market and NASD.

    But it does not end there. SEC and NASD will conduct a thorough check on the security to verify the growth and corporate governance status of the company to determine whether it is good for the consumption of the public.

    “We are encouraging small companies that want to get bigger, and by having this market in place, it means we are giving them a place to grow,” he stated.

  • 18 pieces of advice for new grads

    18 pieces of advice for new grads

    The following is an imaginary commencement address to graduates about to work by the Chief Executive Officer of Accretive Solutions, Richard A. Moran, a social scientist and best-selling author. He’s an expert at organisation effectiveness (and recognised as a top LinkedIn Influencer!) He offers 20 pieces of amazing advice targeted specifically for new grads:

    1. Avoid “Reply All”. It is the most dangerous button on your screen. It looks innocent enough, a little envelope with an arrow. Hitting that innocuous looking icon can change the course of a career even at a tender age. Too often, the “Reply All” sends information to the people you least want to see it.

    2. Remember that there is no “Never Mind” icon.  I suspect this technology tip comes while many of you are laden with guilt that you don’t know how to code in Ruby on Rails or the latest language. You will always feel guilty about what you are unable to do technically. Get over it and enjoy the wonders of the technology that you do know even if it is only the on/off button.

    3. Enjoy everything you know how to do right now because in a minute the technology will change and you won’t know how to do anything. And make sure you figure out how to save those photos you’ve been taking on your phone. You will never look this good again.

    4. Carry extra power cords. You can never have too many and don’t let others borrow them. You will not get them back.

    5. Use the talk/voice function on your cell phone occasionally. The phone has a microphone that can come in handy when talking to Mom and Dad. They may want more details than a text can provide.

    6. Don’t participate in a conference call from a public bathroom stall. Everybody will know- it echoes!

    7. Facebook Friends may or may not be real friends. Know the difference and pay attention to real friends. And remember we are all stalked on Facebook. Social media is probably less friendly than you think. It may be very so for you, if not for most people.

    8. Be gentle with those who work around you. They are not “it”, even if they are so distant from you. Reheat burritos at work sparingly, they smell up the whole place.

    9. Never talk about pay or dwell on what early employees at Google or Facebook make. There will always be those who make more and those who make less. An African proverb says that you think your father’s farm is the biggest, until you visit somebody’s father’s farm. Pay is not everything. If you love what you do and you get paid for it, consider it a bonus.

    10. Assume that all things you do on your computer at work will be monitored and reviewed. Never let your guard down.

    11. Co-workers should never see you naked – either digitally or literally.

    12. Know what goes into a performance review and keep track of what you do during the year. No one else will keep track, not even your boss until appraisal time, except he is planning ‘evil’ against you.

    13. The world is a difficult one now. Be security conscious: mind the friends you keep, what you say, especially in public places, maintain good relations with your neighbors, juniors, domestic employees and others.

    14. Never go to more than two meetings a day.

    15. Play hooky. When your team wins, when your spouse is available for a special day, when things are slow, when you really need a day to regroup, call in sick. Check your email while you are out.

    16. Create a “Personal Board of Directors.” Since mentors are so difficult to find, make up your own board and imagine what advice they would give. My board is composed of three people who are no longer walking the earth.

    17. Treat every job as if you will be there for a long time, even if you know you won’t be. If you are seen as a short-timer, no one will invest in making friends with you.

    18. Where you work is like selecting a college. It’s not the best place that accepts you; it’s about the best match.

     

     

     

     

  • NEXIM’s $60m Sealink Projects to create jobs

    In line with the Federal Government’s Transformation Agenda, the Nigerian Export Import Bank (NEXIM) said the new Sealink Projects billed to take off next year, will create and sustain more jobs for Nigerians as the Economic Community of West African States (ECOWAS) markets become one and Nigeria’s products and services brought to the world. TOBA AGBOOLA reports.

     

     

    • Ship loaded with containers at the Apapa port in Lagos

    DESPITE the commendable increase in trade among African nations in  recent years, there have been growing concerns over the barriers to effective trade, job creation, especially among Economic Community of West African States (ECOWAS) member nations.

    The establishment of the Sealink Project attempts to address the challenges of excessive transit time and lack of adequate transportation infrastructure among states in West and Central Africa, thereby creating jobs through improved trade flows and free movement of goods, people and services.

    Speaking with The Nation, the Managing Director, NEXIM Bank, Mr Robert Orya, said the Sealink Project is a major step in deepening trade within the ECOWAS sub-region and a significant step in enhancing the current trade flows of the ECOWAS member states to create jobs. Other benefits according to him, are to promote increased trade flows and opportunities for the people, considering the huge capital flight from the region through the absence of a sea trade infrastructure.

    Orya explained that by the time the project is fully on ground, it will encourage and enhance Small and Medium Enterprises (SME) operators’ bussinesses because there will be market for their products outside the country

    The project, which is in conjunction with the Federation of West African Chambers of Commerce and Industry (FEWACCI), is expected to commence next year. It is envisaged that the freight and passenger project, when completed would have the following ports of call: Freetown-Conakry-Bissau-Banjul-Dakar; Cotonou-Calabar-Douala-Libreville and Libreville-Dakar

    Orya said the funding requirement for the regional project is $60 million, adding that the project is in line with the Transformation Agenda of the Government, which projects investments in roads, railways, inland waterways, ports and airports development in collaboration with various stakeholders to evolve a multimodal, integrated land sustainable transport system. Emphasis will be on rail and waterways, through an effective Public-Private Partnership (PPP) arrangement.

    He noted the various efforts by the regional body in the past to promote trade, particularly the approval of the protocol for free movement of goods and services as well as the right of establishments. He said NEXIM bank’s vision was to help provide an efficient transportation system to facilitate economic growth and intra-regional trade flows.

    He said: “To move goods from one point to another within the region, it should take only three days. But, currently it takes about 60 days and at a very high cost, because the consignment has to get to Europe first, before a trans-shipment is done to West Africa.

    “A Sealink Project is a major step in deepening trade within ECOWAS sub-region and a significant step in enhancing the current trade flows of the ECOWAS member states, promote increased trade flows as well as create jobs and other opportunities for the people, considering the huge capital flight from the region through the absence of a sea trade infrastructure.”

    According to him, the project aims to create synergy and ensure an even and nation-wide distribution of gains from the administration’s investments in the key sectors, termed ‘main growth drivers’. This includes the manufacturing, agriculture, solid minerals, manufacturing, services, trade and commerce.

    He said: “Affirmatively, the Sealink Project will take the gains of the Transformation Agenda beyond the shores of the country. It will immediately open up our shores and immensely contribute to Nigeria’s march to become the premier economy in Africa through creating a seamless export platform for movement of Nigeria’s manufactured/semi-processed goods, services, and personnel with a certainty to boost competitiveness and productivity across these sectors. Also, it will spur more private sector initiative and innovation, enhance the development of the key sectors’ value chain, create/sustain more Nigerian jobs as the ECOWAS Markets become one and Nigeria’s products and services are brought to the world.”

    He identified the need to develop transport infrastructure in the sub-region to boost trade.

    “For instance, it takes about six days to transport goods by road from Nigeria to Ghana, while it takes about 60 days to transport the same goods by sea, to the same destination. As a result, stakeholders endorsed the initiative and role of NEXIM in promoting the Sealink Project. Goods moved by sea from Nigeria to Ghana, first go to Europe before going to Ghana because there are no cargo ships operating within the sub-region; a development, which analysts say is capable of eroding profit margins of export trade credit seekers.

    He disclosed that already, NEXIM has set up a company called Sealink Promotional Company, with a seed capital of $1.5million (about N237million) as a Special Purpose Vehicle (SPV) to raise the money. The company (Sealink Promotional Company), according to Orya, has commenced operations.

    He said FBN Capital has been appointed as the Issuing House for this offer, adding that in the next few weeks, the offer document would be issued.

    “In support of the project, the Nigerian Shippers Council (NSC) has provided a technical assistance grant to extend the feasibility studies for the Sealink Project to Equatorial Guinea, as well as Sao Tome and Principe,” Orya said.

    Giving the breakdown, Orya said that of the $60 million required, $36 million (or N5.6 billion) will be used to buy vessels, equipment, office space and other infrastructure, while $24 million about (N3.7 billion) is earmarked as working capital to cover general administrative cost.

    He said that NEXIM is spear heading the project because Nigeria is a dominant player in the region controlling 70 per cent of the 300 million markets.

    Nigeria’s Organised Private Sector (OPS) has lauded the project, describing it as a transportation solution to the congested road systems in the West and Central African link roads.

    The Vice President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Prince Billy Harry, lauded NEXIM Bank’s coming up with the Regional Sealink Project and the vigour with which the bank is pursuing its realisation.

    He also agrees that the ECOWAS market is huge and has not been fully tapped as a result of logistical challenges being faced in movement of goods and persons, especially due to the absence of a direct shipping line for the West and Central African corridor.

    “As the apex business association in Nigeria, NACCIMA is supporting the setting up of the shipping company as we did during the establishment of Ecobank Transnational which has become a household name in all the West African states and beyond. We would like to also stress the need for chieftains of industry here present to take ample opportunity by participating in the raising of the $36 million that would form the equity capital for the setting up of the transnational shipping company,” Harry said.

    Recently, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala said the Sealink Project is of vital importance both to the Nigerian government and the West African sub region.

    She said: “The sealink is of strong interest to us. You know we already have the Nigerian Cameroun road that has just been done and we are looking to more of such.

    “Within the sub region, we are doing this sealink project so that we can trade along the West African coast and Nigeria is taking the lead with the NEXIM Bank to work on this and we hope the others will all come on board.”

    She said there are very many critical projects, but financing is not easy to come by as the continent would need upwards of $100 billion a year to meet its developmental needs.

    “That is what we need and even after you take account of all sources of income; we still need $50 billion to be able to meet our needs.

    “So we have to be very selective in terms of the most critical projects and this is the way we are going to be able to unlock the infrastructure bottle necks. It will take time, this is not what we can do overnight, but we have to be steady on it,” she said.