The Nation Newspaper

Category: Business

  • UNIDO’s shoe-making village for Delta

    THE United Nations Industrial Development Organisation (UNIDO) is partnering with the Delta State government to set up a shoe-manufacturing village where local shoemakers will be trained.

    Coming under the auspices of Delta Micro-Credit Programme, headed by Commissioner of Poverty Alleviation, Mrs Antonia Asheidu, the project is expected to absorb no fewer than 488 shoemakers and their products are expected to be a brand that would compete with ADIDAS and NIKE.

    Mrs Asheidu said given the track records of UNIDO in poverty reduction in developing countries, the project would be a huge success.

    “It’s a project we will be proud of in future.With UNIDO coming into it with their expertise, we believe that in a couple of months, jobs will be created and a huge market will emerge. Through it, we can buy into the markets,”Asheidu said.

    Speaking on the project in Asaba, Governor Emmanuel Uduaghan noted that the shoe-making village will be the biggest in Nigeria, adding that the Memorandum of Understanding (MoU) will be signed soon week.

    On whether Nigerians would embrace branded indigeneous products, the commissioner stated that products which will be branded “DMCP” or “FRN” to mean Delta Micro-Credit Programme or Federal Republic of Nigeria, would meet international standards with the help of UNIDO and some international shoemakers that would be involved in the programme.

    UNIDO is saddled with generating and disseminating industry-related knowledge as well as providing technical support and implementation of projects geared towards reducing poverty through production and integrating developing countries in global trade through capacity building.

  • Akpabio urges BRACED states to embrace manufacturing

    Governor Godswill  Akpabio has urged the Bayelsa, Rivers, Akwa Ibom, Cross River, Edo and Delta (BRACED) to focus more on the development of aquaculture in the South-south to create more employment opportunities.

    Akpabio, who spoke when BRACED Director-General, Ambassador Joe Keshi and commissioners of agriculture in the BRACED states visited him in Uyo, lamented that his state had not taken advantage for the development of aquatic lives.

    He said: “The South-south has some challenges such as poverty and insecurity. So, this is the time for us to take our destinies in our hands for peace and development in the region. So therefore, the BRACED Commission must focus and discuss more in their next summit meeting on the aquatic wealth of the nation for the employment of our people.

    ‘’Already, the South-South has a lot of shrimps which could be transported by boats for sale and for export. That could in turn generate revenue for the people. We must discuss how to provide the boats and finances for the processing of our marine wealth’’.

    According to him, Ghananians and other nationals have been engaging in fishing in the country’s territorial waters, urging BRACED to take advantage of the availability of aquatic lives in the region by exploiting such to create jobs for people.

    He said Akwa Ibom is committed to agriculture particularly rice production through Integrated Farmers Scheme, adding that the state has initiated Women in Agricultural Development Project (WAEDEP) giving N250,000 to each of the 4,500 women.

    He charged the commission in liaison with private investors to venture into the manufacturing with the tag of BRACED, saying “Also, we would want a manufacturing company from BRACED Commission where food products would be packaged and stamped and before you notice it, people would rush for it. So to this, let us have a technical committee to practicalise and ginger the manufacturing sector on what we would be discussing”.

    Earlier, Keshi said they were in the state to explore areas of mutual cooperation in agriculture. The cooperation, he said, commission members would focus  on cocoa, timber and rice, among others.

     

     

     

     

  • High-cap stocks sustain market decline

    The Nigerian stock market sustained its downtrend yesterday as losses by highly capitalised stocks overwhelmed widespread gains by equities, pushing average year-to-date return down by 0.39 per cent to 18.79 per cent.

    The All Share Index (ASI), the common value-based index that tracks prices of all equities at the Nigerian Stock Exchange (NSE), slipped to 33,355.54 points from its opening index point of 33,487.81 points.

    Aggregate market value of all equities dropped by N42 billion to N10.672 trillion compared with its value-on-board of N10.714 trillion.

    The negative market position reflected losses by some of the most capitalised stocks, especially Dangote Cement, Nigerian Breweries and Guinness Nigeria. Dangote Cement, the most capitalised stock with about a quarter of total equity market capitalisation, dropped for the second consecutive day. It lost N1 to close at N140. Nigerian Breweries dropped by N1.01 to close at N163. Guinness Nigeria led the decliners with a drop of N5.46 to close at N291.

    Other top losers included Total Nigeria, which lost N4.99 to close at N138.01; PZ Cussons Nigeria, which dropped by N1.25 to close at N41.85; Presco, which lost 94 kobo to close at N26.36; Forte Oil declined by 83 kobo to close at N15.80, Ecobank Transnational Incorporated slipped by 43 kobo to N14.33, while Ashaka Cement and Stanbic IBTC Holdings lost 30 kobo and 28 kobo to close at N25 and N15.72 respectively.

    On the positive side, Nestle Nigeria led the advancers with a gain of N15.04 to close at N830. Okomu Oil Palm followed with a gain of N2.79 to close at N58.70. Conoil rallied N1.10 to close at N23.10. Flour Mills of Nigeria rose by 74 kobo to close at N77.74. Cement Company of Northern Nigeria added 60 kobo to close at N12.60. Berger Paints rose by 55 kobo to close at N12.20 while CAP gathered 28 kobo to close at N36 per share.

    Meanwhile, investors increased demand for equities, with stronger inflow into low-priced stocks. Total turnover stood at 1.44 billion shares worth N5.6 billion in 9,653 deals. Unity Bank was the most active stock with a turnover of 138.89 million shares valued at N163.01 million in 515 deals. Transnational Corporation of Nigeria trailed with a turnover of 135.72 million shares valued at N287.01 million in 476 deals, while Lasaco Assurance ranked third with a turnover of 123.39 million shares worth N62.37 million in 339 deals.

    Insurance subsector was the most active stock with a turnover of 721.32 million shares totaling N545.43 million in 2,191 deals. Banking subgroup recorded a turnover of 324.66 million shares worth N2.13 billion in 3,156 deals.

  • Industrialists condemn ports reforms

    The Manufacturers Association of Nigeria (MAN) has said some port reforms ports are affecting their operations.

    The Chairman of MAN for Kwara and Kogi states, Mrs Omolola Olabayo, said in Ilorin: “The reforms at the port are giving us problems. Our raw materials are not cleared on time and we pay more money on import duties,’’ Olabayo said.

    She said the reforms were being implemented unannounced, adding that the association had lodged its complaints about them.

    “I don’t think from the government policies that are being implemented, they really understand what manufacturing companies stand for,’’ she added.

    Mrs Olabayo urged Nigeria to borrow a leaf from China where manufacturers were granted tax waiver for five years.

    “We can’t remain giants as long as we depend on other countries for our needs, especially on manufactured goods.’’

    Meanwhile, the Standards Organisation of Nigeria (SON) has said only five per cent of locally manufactured goods do not meet the required standards and specifications.

    Its Director-General, Dr. Joseph Odumodu, said at a forum that the few instances of non-compliance were traced to mistakes and not necessarily deliberate attempts to shortchange consumers.

    He said: “When we did a survey on the quality of products in Nigeria, we found out that only five per cent of products made in Nigeria did not meet specifications.

    “Most of the statistics of sub-standard products were contributed by imported products. We discovered that the five per cent mark was not a result of deliberate adulteration. Some of them were as a result of mistakes in the manufacturing process, which you can control over time.”

    Explaining why despite the degree of compliance with standards, indigeneous goods do not command patronage abroad, the SON boss said made-in-Nigeria goods lack accreditation, which is a major requirement in many countries.

    “One, there is the issue of lack of accreditation in Nigeria, but, more importantly, also there is the issue of infrastructure in Nigeria. The issue of power, roads and others. Nigeria, at the last count is about 40 per cent at a disadvantage. I’m actually quoting the Manufacturers Association of Nigeria’s numbers, which says that if you want to manufacture a product in Nigeria and manufacture the same products in place, such as India, the cost in Nigeria will be about 50 per cent higher. So, how are you going to compete in international market when you have, one, a higher cost structure, and at the end of the day, those people also enjoy export incentives?

    “This is what gave rise to dumping and it is an issue from country to country and at the end of the day, how can a Nigerian manufacturer compete in international market? That’s where the dilemma is and that is why we are working hard to ensure things are done well. Even the president is focusing on power and by the end of this year, we are looking at 10,000 megawatts that clearly will ensure that industry develops,” he said.

     

  • AMCON warns public over Babalakin’s property

    •Businessman accuses corporation of withdrawing suit

    The Asset Management Corporation of Nigeria (AMCON) yesterday insisted it had taken an order to take possession of two properties linked with businessman-lawyer, Wale Babalakin pursuant to the order made by Justice Chukwujekwu Aneke of the Federal High Court, Lagos in suit no: FHC/L/CS/1501/12.

    The corporation said the properties located on 43A Afribank Street Victoria Island, Lagos and Plot 270 Trans Amadi Layout, Port-Harcourt, Rivers State were pledged as collateral to the loans granted to Roygate Properties Limited – a company in which Babalakin is believed to have interest.

    Babalakin has however, denied the corporation’s claim. He equally alleged in a statement yesterday that AMCON had withdrawn its case relating to the dispute between them, a claim the corporation’s Managing Director, Mustafa Chike-Obi denied last night.

    In an advertorial titled – “Caveat emptor: Recovery of properties and assets,” AMCON warned the general public against dealing with Babalakin and his companies in relation to the affected properties.

    “Property at 43A Afribank Street Victoria Island Lagos, pursuant to a tripartite legal Mortgage registered on 14 October 2010, between Roygate Properties Limited (Borrower), Stabilini Visinoni Limited (Surety/Mortgagor) and Guaranty Trust Bank Plc (The Lender).

    “Property at Plot 270, Trans Amadi Layout, Port Harcourt, Rivers State pursuant to a Tripartite equitable mortgage between Roygate Properties Limited (Borrower), Homan Engineering Company Limited (Surety/Mortgagor) and Guaranty Trust Bank Plc(Mortgagee).

    “The general public is hereby notified not to deal or have further dealings with Roygate Properties Limited, Stabilini Visinoni Limited, Homan Engineering Company Limited and Dr. Bolanle Olawale Babalakin SAN in respect of the properties and assets,” AMCON said.

    But Babalakin’s spokesman, Dipo Kehinde described the alleged sudden withdrawal of a suit by AMCON as “treacherous.”

    Kehinde said: “Consistent with this allegation and immediately after Dr. Babalakin’s statement to the press, AMCON hurriedly withdrew the case that had been instituted by its alleged predecessors-in-title – Guaranty Trust Bank Plc (“GTB”).

    “GTB had stated on oath that it had sold the property in dispute to a third party, R.E.D. Company Limited, prior to the assignment of the alleged debt to AMCON. This purported sale of the property is being contested at the High Court of Lagos State in proceedings, which are still pending. GTB could therefore not have transferred its disputed interest in the property to AMCON. Consequently, AMCON had no interest to enforce in the property.

    “The import of the existence of GTB’s suit is that AMCON, through its agents, knew that the subject-matter of the ex-parte order (No. 43A Churchgate Street) it sought and obtained in the Federal High Court was already an issue before the Lagos High Court and had allegedly been sold by its so-called predecessor-in-title. AMCON’s action at the Federal High Court was therefore fraudulent and amounted to a gross abuse of the process of Court.

    “It is also noteworthy that these facts support the stance of Dr. B. O. Babalakin that the property was never mortgaged to GTB in the first instance. Babalakin’s consistent assertion that AMCON and its alleged predecessor-in-title were engaged in misleading the public over the status of the building now appears to be confirmed.”

    Reaction to Babalakin’s claim that AMCON had withdrawn its suit, Chike-Obi said : “It is not true that the case was withdrawn. We will pursue this matter as vigorously as the law allows us. And we will ensure that the he pays all the money he owes us.”

     

  • Benefits of social networking, by expert

    AN expert has listed sharing of ideas about entrepreneurship and getting feedback from customers as some of the advantages of social networking sites.

    Speaking with The Nation, the General Manager, Yookos Nigeria, Mr Gboyega Adelowore, said: “Social networking sites are platforms that make social engagement a lot easier. It’s not just about making friends but also engaging brands for products and services. With greater inclusion in social networking, we see more idea sharing and entrepreneur rising.

    “Also, brands now find it a lot easier to engage their customers and get useful feedbacks that can help them grow. These are important for the growth of any economy.

    “Deep Internet penetration directly impact trade through exchange of ideas, goods and services and social networking sites make it easy. This is extremely important.”

    On Yookos, he said the firm has embarked on initiatives to match the social networking requirements of social media users by offering an exciting and engaging product, adding that the release of the desktop version dovetails the recent launch of its much anticipated mobile web version late last year in Johannesburg, South Africa.

    By offering the mobile version meant especially for phones, Yookos has made it possible for more people to join the fastest growing social network in Africa, he explained.

    According to him, what makes Yookos to be a social networking site of choice is its ability to blend a multiplicity of social media functionalities and features into one intuitive and robust platform. Thus, its users do not have to have accounts on diverse social media platforms as all their requirements are met on a single platform. Users are not only able to sign-in with their other existing social media accounts such as Facebook, Twitter, Gmail, and Linked-In but they can now easily share all their Yookos posts with friends and family on these platforms as well.

    He said Yookos ensured that users get the functions they require from a social network.

    “The intention on this latest version is not different but a significant step-up in the offering once a user signs-up. It is a bouquet of offerings that one would normally have to go through a few sites to enjoy all found in one place,” he added.

    Also, Chief Executive Officer, Yookos Nigeria, Tomisin Fashina, said: “Users can enjoy all these benefits with the comfort of knowing that they are in a safe and clean online environment free from any violent or abusive content.”

     

  • Firm unveils Internet products

    Internet security firm, Norton by Symantec, has released the latest versions of its security products into the market. They are Norton 360, Norton Internet Security, and Norton Anti-Virus.

    The products are Windows 8 compatible and engineered to make Windows 8 safer and faster compared with running Windows Defender on Windows 8.

    In a statement, the Group President, Consumer Business Unit, Symantec, Janice Chaffin, said the products will guarantee the security of users online.

    “According to this year’s Norton Cybercrime Report, one in 10 social network users said they’d fallen victim to a scam or fake link on social network platforms. Today, consumers are living nearly every aspect of their lives online and often putting personal information at risk.“

  • Cashless: NEFT’s, NIP’s daily transactions hit N40b

    Transactions recorded by the Nigerian Inter Bank Settlement System (NIBSS) under its NIBSS Instant Payment (NIP) and Nigerian Electronic Fund Transfer (NEFT) have increased significantly to about N40 billion daily.

    NIP and NEFT are products used by corporate organisations to make payment for huge transactions electronically, in line with the cashless policy. Data gathered from NIBSS also shows that as a result of the cashless policy, cheques, Point of Sale (PoS) and Automated Teller Machines (ATMs) usage have continued to rise in volume and value.

    Head, Shared Services at the Central Bank of Nigeria (CBN), Mr Chidi Umeano said that the cashless project has continued to record huge success, adding that the initial challenges associated with the alternative channels are being tackled. “Banks have continued to roll out more innovative electronic payment platforms to meet customers’ expectations. The cashless policy has been very successful in Lagos considering when we started and how far we have gone in terms of PoS deployment.

    “When we started the cashless Lagos, we had less than 10,000 PoS in Lagos, but currently we have over 150,000 PoS machines in the state alone,” he said.

    As a result of the significant success recorded in Lagos, the apex bank last week said it plans to extend the cashless policy to Rivers, Kano, Anambra and Abia States as well as the Federal Capital Territory (FCT) from July 1.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Otudeko chairs digital confab

    Business mogul and chairman, Airtel Nigeria, Mr. Ayoola Oba Otudeko, has accepted to be the chairman of the forthcoming Digital Africa Conference & Exhibition, slated for April 23-25, 2013 in Abuja.

    According to a statement from the convener of the confab, Dr. Evans Woherem, MD/CEO of Compumetrics Solutions Limited, he is excited by the gesture of the foremost industrialist. “We are delighted that this distinguished Nigerian, foremost investor, and respected African business leader will chair the 3-day Digital Africa 2013.”

    Mr. Oba Otudeko was the pioneer chairman of the Nigerian-South African Chamber of Commerce which he led from May 2000 till June 2011. During this period, trade between both countries grew from $16.5 million in 1999 to $2.9 billion in 2010.

    Giving an update about the event, Woherem said, “Our focus is to bring ICT people from Africa and the rest of the world to interact closely with the users and consumers of ICT across major sectors of the society such as agriculture, SMEs, hospitals and clinics.”

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • ‘12% interest rate will kill SMEs’

    THE pegging of Monetary Policy Rate (MPR) at 12 per cent by the Central Bank of Nigeria (CBN) would hamper the growth of the  Small and Medium Enterprises (SMEs) and eventually kill them if care is not taken, the Executive Secretary, The Nigerian Association of  Small and Medium Enterprises (NASME), Mr Eke Ubiji, has warned.

    He said: “This is because banks will not like to give out the funds to borrowers at the same rate they procure it from the CBN.

    “It, therefore, means that any SME operator who wants to borrow money from the bank must be ready to pay a higher rate than the 12 per cent, in addition to other charges that the banks normally impose on loans,” he said.

    According to him, instead of the monetary authorities using only high interest rate to check inflation for the eighth consecutive time, it would have been better to use other monetary policy instruments. He said reducing interest would encourage business owners to have access to funds, or set up new ones, to create job opportunities, to employ people, and reduce unemployment in the country.

    “There are various methods the government can use to check inflation. One of such, depending on the risk profile on the borrower, is the issuance of treasury bills to mop up excess liquidity in the system. With the rate, no serious entrepreneur can dare to take loan to venture into production in an environment, where one has to provide one’s own electricity, water, security; and at times, construct roads to enable  vehicles to access the business premises to evacuate goods that have been produced to the market place,” he said.

    Recently, the Monetary Policy Committee retained the benchmark lending rate at 12 per cent for the eighth time in a row.