Category: Business

  • ‘Use local contractors to save funds’

    General Secretary, National Union of Civil Engineering, Construction, Furniture and Wood Workers (NUCECFWW), Mr Babatunde Liadi, has advised the Federal Government to use local contractors.

    Liadi, who gave the advice during an interview with the News Agency of Nigeria (NAN) in Lagos, added that using local contractors would assist in creating more jobs and saving it foreign exchange.

    “If the Federal Government can use more of our local engineering firms in the ongoing rehabilitation of roads, it will assist the economy and save money on foreign reserve.

    “Before now our roads were death traps, killing and maiming many Nigerians. The bad roads also give room to hoodlums and armed robbers to operate, “ Liadi said.

    He commended the Federal Government’s decision to revoke the concession agreement for the expansion, repair and maintenance of the Lagos-Ibadan Expressway granted to Bi-Courtney Highway Services.

    He said though the road had been re-awarded to Julius Berger Nigeria Plc and RCC, the new contractors should hasten the re-construction and do a good job.

    “Good roads are part of the dividends of democracy. If we have good roads, the number of accidents will be reduced and more lives will be saved, “ he said.

    Liadi advised state governments to embark on repairs and maintenance of roads and other infrastructure in their areas.

    He urged governments, especially states and local governments to release funds for contracts that have been certified completed.

    He said payment of completed contracts would protect workers, reduce unemployment and the number of companies being shut as a result of inability to pay salaries.

    Liadi said from January next year, the union would protest the use of casual labour and other anti-labour practices by employers.

  • ‘Insurance is more unpopular among the elite’

    ‘Insurance is more unpopular among the elite’

    As important as insurance is, at the corporate and personal levels, many are still averse to it.This feeling is prevalent among the least expected segment of the society – the educated. In this interview with SIMEON EBULU and ESHIET UYOATTA, the Managing Director, Royal Exchange Prudential Life, Wale Banmore, speaks on the challenges and prospects in the sector, saying the future holds much promise for stakeholders. Excerpts:

    Technology plays a key role in today’s business. How have you employed information technology (IT) to achieve your goal?

    As far as any service industry is concerned, if you want to make an edge, you have to invest in IT. Though I may not be able to give you figures right way, I can assure you Royal Exchange as a group has invested so much in technology.

    In the life aspect, we at Prudential Life pioneered the e-payment business in insurance in Nigeria. We upload our products onto a platform where people don’t need to pay by cash; all you need is to pay by recharge card. You buy our recharge card which has a pin number and you are automatically credited in our office. Wherever you are, you get an alert that your policy has been loaded with so much amount.

    In this regard, every other company is just following us. It is four years since we started it and has given us an edge over others. As a company, we are always trying to put an edge to it. We have some other innovations which will come on stream in the next few months, all aimed at making the process even more simpler.

    To what extent have you employed e-transaction and claims payment to drive the business?

    Claims payment is the real essence of insurance. The payments are in form of savings. We have a very robust IT platform that takes care of all these items. By the time any customer comes on maturity, all we do is go to our IT, print out every detail of your transactions and send it to you to cross-check with your record at home, or you come for reconciliation. The process is very smooth and rewarding.

    Have you had issues arising from this, issues, such as knowledge gap between your customers and the IT platform?

    We have never had any issues with our clients. Where interests are calculated and there seem to be an area of disagreement, all a client does is simply come into our office with his observations and they are promptly sorted out.The system is working 100 per cent. This is so because most of the customers, at inception are educated; they understand how the system works. If any marketer comes to you, after marketing the different products, you are the one to indicate which product you want to buy. We discourage in totality, the use or exchange of cash, based on experience. You know the morality aspect of giving cash to individuals. There are a lot of temptations and this is one of the reasons we employed the IT platform to take care of our e-business.

    How have you fared so far?

    As of last year, our total premium at the Prudential Life was about N672 million, but for this year, we have already recorded over N1 billion in premiums. This is a giant leap considering where we are coming from.

    What is responsible for the leap?

    It is about being focused. As a team, we try as much as possible to examine where we are coming from. What enabled our growth is being focused and being proactive to the market. We try as much as possible to make our service delivery key to our clients by trying to revolutionise our processes, and knowing what our customers need.

    NAICOM said less than 10 per cent of Nigerians have insurance cover, either general or life. What is your opinion?

    It is true. It is actually less than eight per cent. Records actually show that less than six per cent of Nigerians have any form of insurance coverage. Insurance penetration in Nigeria is surprisingly low. You cannot trace it to education, in the whole of Africa we are leading in terms of education but it is even more unpopular among the elite.

    In Nigeria, based on my experience, it is even easier to sell insurance to the semi- literates and even the illiterates than to the educated. People that don’t buy insurance in this country are the literates, except of course at the corporate level, where they take insurance to protect their businesses and properties, but can hardly take a life cover for themselves.

    Now what we do is, if you pay premium regularly and suddenly, we don’t see you in a month or two, somebody will come to find out what is wrong.

    In the past, most firms did not bother to check, so there was a lot of residual money with insurance companies, not because they did not want to pay, but because they did not go ahead to look for who to pay to.

    If the wife or son of the late policy holder knows that their late father had a policy and never bothered to go and check, they will just carry the wrong notion that insurance don’t pay claims and the notion is still carried around even today.

    Insurance pays claims, but because policy holders/beneficiaries do not know how to go about collecting their money, they say insurance firms don’t pay. Now there is consciousness that insurance firms pay claims, that is why our claims level is very high because of awareness among the people. When people pay premium, they know when to come and collect their claims.

    President Paul Kagame of Rwanda, while in Nigeria recently, said 94 per cent of Rwandans are covered by life policy. What percentage of Nigerians are covered by life policy?

    I don’t have the figure as it were. Our percentage, or figure of those covered by life policy can be given by the industry regulator because they are the ones that collate these data. We have not had that kind of data in the last one or two years. On the whole, it is still less that 10 per cent in Nigeria, whether life or general. If you go to other African countries, it is alarming the level of awareness in those countries, even with the level of education when compared with Nigeria. In Kenya, South Africa etc, there is a high level insurance awareness. They are just conscious of insurance.

    Nobody will buy a car and put it on the road in Rwanda without insurance, but there are a million cars in Nigeria travelling from one end of the country to another without insurance coverage.

    How are you try to contain this level of ignorance?

    The ignorance level in the past few years has actually reduced. There have been a lot of education/information dissemination in the country though the press by industry regulators – NAICOM and NIA. There have been a lot of seminars, advertisements, outreaches, all aimed at educating Nigeria on insurance. Our company has engaged in so many programmes this year. We sponsored one of the youth programmes in Lagos State, we organised workshop for them. I even sponsored one of the leadership programmes in Lagos. It is all about trying to educate people at that early stage. When they have that awareness early in life, when they grow up, they will appreciate insurance.

    About 70 per cent of Nigerians reside in the villages and insurance seems to be a city issue. What are you doing to reach out to this critical percentage of our population?

    For my company, we have branches in all the states of the Federation. Apart from that, we have a lot of marketing outreaches in terms of agents who reside in these rural areas. The issue of infrastructure is still a challenge in the country. You and I know how many villages have electricity supply. So even if you do advertisement, how do the people in the villages have access to the advertisement to see what is going on? There is a limit to which you can go from house to house, door to door, advertising insurance. In villages in South Africa, no matter how few the people who live there, the houses have electricity and television. So, when you advertise, they are aware and are able to follow up. Despite the challenges we encounter in Nigeria, we still try to be physically present in most of the local governments and state capitals.

    Nigerians embrace banking without being forced, but are not embracing insurance. Why?

    It is quite unfortunate, the two (bank and insurance) came from the same Britain together, but I don’t know at what point banking got far ahead of insurance. Now we are trying to catch up. I still believe it is a cultural thing. Even our educated people, when they are abroad, they don’t joke with insurance, but the moment they are back, they careless about insurance.

    Is it something to do with enforcement?

    We have a problem of enforcement. It has been our major challenge. We have always had laws, rules and regulations, but the fact remains that we have never had enforcement.

    In most of these countries that record good insurance awareness, they have enforcement. In Nigeria, we don’t have enforcement. Somebody in Kenya, South Africa, etc cannot drive a car up to a kilometre without being arrested if he doesn’t have insurance. But in Nigeria, people drive from Lagos to Kano, and all over the country without insurance and without molestation. In other countries the police have gadgets that will indicate that a vehicle does not have an insurance, but here in Nigeria, there is no such thing.

    NIA came up with a similar idea. What has become of it?

    It is still in the pipeline. I can assure you because it will go a long way to ensure enforcement. Look at life insurance, the law says employers of labour that have up to five workers must take group life policy to provide for them. How many factories, employers with 10, 20, 30 and more workers are operating without the policy.

    Nobody goes to that factory to find out whether the group life policy has been obeyed by these employers or not.

    Who is to do that?

    Insurance cannot enforce. It is an organ of government that is supposed to do that. Insurance companies cannot go to a factory and demand to see whether the factory owners/manager has complied with the group life policy.

    Agencies of the government go to these factories to inspect what they do, whether they do it right, collect taxes and ask for other payments, but do not ask to see the insurance policy for group life for the workers. No agency of the government asks these questions. That is why our union, the Nigeria Insurance Association (NIA), should not only be agitating for increment in premium. Other benefits of life that Nigerians are losing are so many. So many Nigerian employees are dying on their jobs without being adequately compensated. The employer will be doing himself a big favour if they subscribe to the group life policy.

    It is not easy to write individual cheques of say N10 million or N20 million for employees, while if you have taken a group life insurance for your workers, you would have paid, may be as low as N200,000 and then when the disaster occurs, the insurer would have taken over the responsibility. You could pay as little as N200,000 and when the man dies, you could collect compensation of say N15 million, that’s the essence of insurance.

    Do you raise these issues with your clients?

    When we market, we always do, but the fact remains that some of them want to cut costs. When factories or organisations in Nigeria want to cut costs, one of the major areas they look at is insurance, it is really unfortunate. This is as a result of lack of enforcement. If a company has 10 vehicles and doesn’t bother about insurance, it is because he knows, his vehicles will not be impounded for lack of insurance. But if he knows his vehicles will be impounded for lack of insurance, he will insure them.

    What’s the impact of the economic environment on the sector?

    It has really affected insurance, but things are looking up. We all know the economy dictates the purchasing power of the people. When organisations or individuals want to adjust, the first item they look out for is insurance. It is as a result of the scarce economic resources. Directly or indirectly, insurance thrives on the economy. When the economy is booming, insurance thrives, but when it is the other way round, people will try to adjust, including the government.

    A lot of their properties are not insured. Go to the government secretariat, you will see a lot of their damaged vehicles abandoned there. They don’t care about them because they did not take insurance cover for those vehicles or other state properties. Even as at now, only very few states have group life insurance for their workers.

    For those that have it, their workers know that when they die, their families have something to fall back on.

    When you go out to sell, who are your target?

    We want to go fully into retail. My target is the individual, the corporate market is almost saturated. Individuals are our target. We can no longer rely on government account, that is why we are driving our retail account very aggressively, especially the high networth and the middle class who can still spare something out of the little they are collecting as salaries or as income.

    Nigeria has about 160 million people. What strategy do you have in place to reach the people?

    The strategy we have in place is product-wise. We designed several products for people of the different strata in the society. We have products meant for the executives, middle level workers, people like drivers and others. That is the major strategy we have.

    We make sure all our products are tailored towards the high networth people, the middle class people, the lower class people, and whoever in the society, and make sure we speak their language too. We speak to them at their levels.

    For our population of say 160 million, if just about 25 million of them are fully insured, there will be no complaints in the industry. But I can assure you, the economy is key; the economy has to be buoyant for people to have extra to put into insurance.

    At the Nigeria Stock Exchange, insurance stocks are the least performing.Why?

    We all know what happened at the capital market. It is quite unfortunate. If we look back to when the capital market was very active, the shares of the insurance stock were all going up. The crash at the capital market was very unfortunate on the insurance companies because it was at a time people were buying more of our shares,

    If you look at it now, it will be a source of concern, but the fact remains that insurance companies have not been making that kind of profit to pay dividends. You can only ask to buy more shares if you are paying dividend.

    For us in Royal Exchange Prudential Life, we paid dividends this year to our shareholders. The issue mainly is because most insurance companies have not been declaring dividends. It is only when you make profit, you plough back some into the operations of the company, then you can spare some to make the shareholders happy.

    But things are really looking up in the industry. I am sure very soon, the share price of our company will rise. The major reason the insurance stocks at the capital market is at nominal value is because insurance companies have not been paying dividends to shareholders in the past few years after the capital market crashed.

    Has ownership structure affected the level of acceptability of insurance companies?

    Ownership structure is not the main issue. If we want to invest in a company, the major thing you look out for is the ability to get returns, and you have to be conscious of the people driving it and the historical background of everyman there.

    But even if the company is family owned, but is doing fine, investors don’t have that fear, it its performance that determines why people want to put their money into their stocks. In our own company, we don’t have that problem because we are an old British company that Nigerians bought into and become shareholders.

    Our historical background is there for all to see.

    We still have insurance that are owned by close families, but they are in the minority, even the ones owned by the banks are in the minority too. That is not an economic factor that people do not have confidence in insurance companies. What happened at the capital market was a major factor.

     

     

  • Jonathan’s vanity projects

    Jonathan’s vanity projects

    The administration of President Goodluck Jonathan has not only become the butt of derisive jokes but also gain notoriety for reckless spending, a development, many analysts have argued, is responsible for the rising cost of governance and drain on the economy, writes Ibrahim Apekhade Yusuf

    JOLOMI ADOLPHOUS, no doubt has come a long way. From a humble background, as a poor farmer’s lad from the backstreets of Sagbama, in Bayelsa, young Adolp, as he was fondly called by friends, through dint of hard work and Mother luck, rose above the limitations of his environment to become a success story many parents desire for their wards.

    But no sooner did he become a success than he began to subject other members of his household, especially the less fortunate ones, to untold hardship, a development, which soon pitched him against the rest of the community. In no time, he was banished from the community as his people could no longer tolerate his excesses.

    The above anecdote, if you may, shares a verisimilitude with what fate possibly awaits President Goodluck Jonathan. From being a “shoeless” young lad, like Jolomi, he was able to rise above all the limitations and obstacles and literally walk his way to success. Today, he doesn’t just have shoes and other ensembles but have tasted the good life and have the indulgences of the privileged few and so much more!

    Expectedly, his image is anything but impressive in the court of public opinion, and what better evidence than the jeers and ribald jokes being bandied about in pubs, markets, offices and anywhere two or three are gathered, as discerning members of the public continue to raise their voices above the din to analyse what is largely described as Jonathan’s “Presidential gaffes” in recent times.

    High cost of governance under Jonathan

    President Jonathan is largely touted as running an extravagant government judging by the amount devoted to feeding, refreshments, entertainments and other incidental expenses like trips, etal.

    The near-N1 billion allocated for the same purpose in the 2012 budget generated a swirl of controversy big enough to force the Presidency to order a reduction.

    In the 2013 budget, the President has tried to come down a bit with allocation, particularly in the area of expenses on food, refreshments and welfare for the State House, the Vice-President and other ministries.

    The total allocation to the Presidency in the 2013 budget proposal is N35,545,673,132, with total personnel cost put at N11,476,593,929. Total overhead is N11,569,079,204, with total recurrent put at N23,045,673,132 while total capital stands at N12,500,000,000. Out of this, the Presidency budgeted N327,154,931 for refreshment and meals and another N406,738,969 to purchase foodstuff, just as Vice-President Namadi Sambo would spend N112, 500,000 to purchase food for the 2013 fiscal year, another N123,405,499 on refreshment and N7,020,750 to purchase cooking gas. When added, the total for the Presidency meals is not too far from the N1 billion budget of 2012.

    The Presidency has, however, always argued that the allocation include budget for meals and drinks served during the different ceremonies and events at the State House and feeding of cabinet ministers during the weekly cabinet meetings. Even in spite of the boast about improved electricity supply across the country, the Presidency, it appears, is not ready to take chances on the possibility of outage.

    Hence in 2013, it proposed to spend N72, 510,832 to fuel its generators while it will also spend N553, 056,411 for honorarium and sitting allowance.s

    Soaring cost of foreign trips

    Just like other areas, President Jonathan spent billions of naira on foreign trips in 2012 despite his earlier promise to cut down these expenses, even as he is planning on spending a whopping N2.6billion next year on foreign trips.

    The Nation can authoritatively report that the President together with his entourage have spent nothing less that N3.354billion since 2010 on foreign trips.

    The President within the first 11 months of this year flew out at least 20 times.

    In September alone, the President travelled out of the country four times, including his trips to Addis Ababa.

    Within the first nine months when he first became President, he spent N970.891million on foreign travels.

    The budget did not, however, state explicitly the figures for his travels. But investigations have shown that President Jonathan spent N1.7billion on foreign trips this year alone.

    In 2012, N684.74million was budgeted for foreign travels alone.

    During his presidency, the President was reported to have flown to different destinations in Africa, Europe, Asia, North America, and South America.

    In 2011, he visited numerous countries including, United States, France, Uganda, Australia, Ghana, Chad, Equatorial Guinea, and Ethiopia among others.

    The President travels with his entourage, top aides, and officials of the Presidential Villa are usual faces on such trips; ministries applicable to the purpose of his overseas trips also send delegations.

    In recent times the president travels with two members of the National Assembly (one from each chamber), depending on the purpose of his visit.

    Sahara reporters had in June claimed that Jonathan travelled to Rio de Janeiro, Brazil for the United Nations’ Earth Summit with 116 government officials.

    Although the President rebuffed the figures but he never gave out the exact figure.

    Jonathan had said in a national broadcast in January, “I have directed that overseas travels by all political office-holders, including the President, should be reduced to the barest minimum. The size of delegations on foreign trips will also be drastically reduced; only trips that are absolutely necessary will be approved.”

    Like Jonathan, like Sambo

    Like his principal, Vice President Namadi Sambo is also not left out of the spending spree.

    His new residence being constructed is generating much controversy over its cost.

    The Senate Committee on the Federal Capital Territory (FCT) on Thursday refused to approve the additional N9bn expenditure budgeted for the Vice President Sambo’s residence under construction.

    Refusing the request, the Chairman of the Committee, Senator Smart Adeyemi said such amount of money to be spent on a house is not worth it, especially now that many Nigerians are hungry and cannot afford a meal.

    Earlier, the Executive Secretary of the Federal Capital Development Authority (FCDA), Adamu Ismail, told the lawmakers that the contract was awarded in 2009 for N7bn.

    Adding, he said the additional N9bn needed was for furniture, fencing, two more protocol guesthouses, a banquet hall and security gadgets.

    While explaining, Ismail said, the proposal was not contained in the original plan submitted to the contractor, Julius Berger Nig. Ltd.

    Adeyemi said, “The National Assembly is not going to appropriate additional N9billion for the project, especially at a period in this country when people cannot get three square meals.

    “The N9billion is far more than the original cost of the project.”

    The Vice Chairman of the Committee, Senator Domingo Obende, on the other hand, called on the Executive Secretary to present the added scope of work for which the fund is vital to the committee for inspection.

    Ismail said the proposed N9billion was cut down to N6billion by the Bureau for Public Procurement (BPP).

    He said, “We have worked out the details and passed to BPP for consideration. They (BPP) have sent it back to us with their observation.

    “We requested for N9billion but now it came to about N 6billion.”

    To Adeyemi, the N14 billion is indefensible, “in view of present realities.”

    He said, “Now you are asking us to approve a total sum of about N14 billion and this is just the Vice President’s residence.

    “N14billion, to me, is huge for the Vice President’s house. If you are even talking of N10 billion that would be understandable. “The reality is that N14 billion is indefensible and that is our submission. In Nigeria, there are still many people with empty stomach. So, we have to look at budgeting in relation to the needs of the people.”

    Presently, Vice President Sambo resides at the Aguda House, a building officially designated as Presidential guesthouses.

    During the Yar’Adua presidency, President Goodluck Jonathan also stayed in the Aguda House when he was Vice President.

    Vice President Atiku Abubakar stayed in the house, which the Chief Justice of Nigeria (CJN) currently occupies.

    The FCT budget for this year also includes a N300 million for the design and construction of houses for Senate President and his Deputy, David Mark and Ike Ekweremadu; as well as Speaker of the House, Aminu Tambuwal and Emeka Ihedioha, his deputy.

    This is despite the fact that David Mark and Dimeji Bankole were sold their old official residences at a giveaway price, only two years ago.

    Senator Bala Mohamed’s devotion to the well-being of President Goodluck Jonathan had in the past not been doubted. As Minister of the Federal Capital Territory, FCT with concurrent duty as landlord to the president, he had rustled not a few feathers when he named a new layout in the federal capital after President Jonathan.

    Justifying the construction of the new hall, Senator Mohammed had said: “We noticed that it (existing hall) is inconveniencing; it is not in tandem with what is outside the country. Even smaller countries have better Banquet Halls near their Presidential residences.”

    As at press time, telephone calls and sms sent to Presidential Spokesman, Dr. Reuben Abati, to enable him react to the issue did not elicit any response as he neither returned calls nor sms.

    Criticisms

    But as would be expected, a barrage of criticisms have continued to greet decisions announced by the government with many calling for the head of the president.

    A cross-section of those who spoke with The Nation had very harsh words for the Jonathan-led administration. Constitutional lawyer, Professor Itse Sagay described the proposed amount for a banquet hall at the villa as a wasteful project.

    According to him “It is absolutely shocking to hear that our leadership are hell-bent short-changing the rest of us. I am shocked because right now, the impression we have is that the government is short of money. And you know there is this big debate going on now on whether the civil service should be reduced so that there will be more money for development. So, I would have thought if we have N2.2 billion, we will use it either for roads, hospitals, universities or other developmental projects rather than a banquet hall. In my view, it is a wasteful project for now given our tight financial circumstances.”

    “One would have expected that the government would devote such funds into building refineries, but instead it chooses to build guest-house to host itself and its guests.

    “Jonathan, no doubt is running an extravagant government like other successive regimes. We are just persuading Jonathan to move in a different direction.”

    Human rights activist and lawyer, Bamidele Aturu, also flayed the decision of the administration, saying “It is unbelievable really that the Federal Government would be talking about spending such a huge amount of money on a hall or enjoyment for Owambe kind of partying, hall at this time.

    “I think it is quite insensitive, it does not demonstrate that the government wants Nigerians to believe that the economy is not buoyant and that the government cares about the welfare of the majority of Nigerians given the immediate needs that Nigerians suffer in other areas of life, given the general decay of infrastructure, the lack of good roads, the fact that our educational system has collapsed and the miserable wages that workers are paid.

    Dr. Chris Onalo, Registrar/Chief Executive, Institute of Credit Administration (ICA), is hard pressed to believe that the country’s leadership would as much as mouth such demands.

    “For those of us in the credit management profession, we’re really worried about the level of transparency in public and private sectors spending. When you look at the huge spending, it does not reflect on the generation of income. ‘I just think this country is ruled by certain forces which don’t seem to marry reality with euphoria,” he said.

    Expatiating, he said: “It is unthinkable that our leaders would even think of putting up a massive edifice for the VP or the President, in a place where the people are wallowing in abject poverty. Corruption, I daresay, has eaten deep into the fabric of our economy and one only hopes and prays that things will not get out of hand before our leaders learn their lessons.

    “I think it is high time faith-based organisations rallied round to drive away this madness. They need to really wake up. We need to create jobs. We need industrial revolution. We need to build an empire which the entire black race would be proud of.”

    For Professor Sherifdeen Tella, of the Department of Economics, Olabisi Onabanjo University, Agowoye, Ogun State, what the government has done amounts to “gross insensitivity.”

    Speaking with The Nation over the weekend, the don said, “Most nations of the world are striving to drive capital expenditure above recurrent expenditure.”

    He, however, regretted that the reverse was the case in Nigeria. “Even part of the money that was voted for capital projects, part of it is what is being proposed for the banquet hall and other irrelevancies. It shows that the government is not a serious government at all.

    According to Prof. Tella, “Whereas the government should be thinking of devoting money into research and development, making the environment conducive for learning and all that, like a typical Owambe government, it is just thinking of hosting itself and people outside the country. It is laughable, “he lamented, adding: “One can only pray that the legislators will prevail on the government to rescind the decision because it is what the lawmakers pass that would become law.”

  • Nigeria loses $2.16bn annually to shea butter smuggling

    Nigeria loses $2.16bn annually to shea butter smuggling

    It has been disclosed that Nigeria loses $2.166 billion annually due to the smuggling of shea butter across the country’s borders.

    This disclosure was made by the Director General, Niger State Commodity and Export Promotion Agency, Alhaji Mohammed Ahmed Kontagora, at the pre-conference press briefing by the Global Shea Alliance in Abuja.

    Kontagora said Nigeria produces at least 57 per cent of the world supply of shea with its accompanying derivatives with a global annual value of US$3.8 billion but loses most of the financial benefits that should come to the country as a result of the smuggling of the produce.

    Kontagora stated that at least 50 trailers carrying shea butter and its derivatives cross the Nigerian border daily to Benin Republic from Niger State alone, while the Nigeria Customs Service appears unable to check the smuggling activities.

    By developing the large scale production of shea in Nigeria, Kontagora noted that Nigeria will be on the right path to diversifying the economy because shea butter and its derivatives have a very large market in Nigeria alone as well as in other parts of the world.

    Kontagora revealed that part of the opportunities open to Nigeria to benefit from the production of shea is the recent directive by the European Union that five per cent of shea must be added to all confectionaries, particularly chocolate in the zone.

    The Director General appealed to the Nigeria Customs Service to do more to stop the smuggling of shea products across the border so that the country can reap the maximum benefit of the international trade of the produce.

    According to Kontagora, the shea industry in Nigeria is on the path of growth with Nigeria having the potential to mechanically process 6,000 SETs per year and export 50,000 tons of shea nuts per year. While new processing plants are being constructed every year, existing ones are being renovated to increase capacity and efficiency.

    The president of the Global Shea Alliance, Eugenia Akuete, disclosed that more than 15 million women across West Africa participate directly in the shea industry, and women collect nuts across the Savannah area stretching from Senegal to Uganda and South Sudan.

    She added that for every $1 of shea exported, local villages receive an additional 50 per cent of income, while millions of women make shea butter that millions more West Africans consume daily in food and skin care products.

    The world conference on shea which will be held in Nigeria next year is designed to bring together all stakeholders in the production and processing of shea to network and develop mutually beneficial business connections.

  • Envoy tasks Nigerians on Spanish investment

    Envoy tasks Nigerians on Spanish investment

    Developing economies including Nigeria will benefit immensely from the huge investments potentials in Spain, its Commercial Counsellor in Nigeria, Pablo Martinez, has said.

    Speaking with The Nation in Lagos, Martinez said the Spanish economy has been repositioned for Nigerian investors among others who want to invest in the financial, oil and gas, tourism, construction, manufacturing and other sectors.

    He said the country’s financial sector offers huge opportunities, adding that its banks are much stronger in the global market.

    He said: “If you compare Spanish financial market with other countries, it has deeper assets as evident in its stock market. So, if the sovereign wealth funds were invested in these banks it would boost the country’s economy.”

    The envoy said Spanish companies would continue to invest in Nigeria to create job opportunities for the people.

    “From experience, we have learnt that investment creates jobs and we are eager to receive investment wherever it’s coming from. Nigeria has created a sovereign wealth fund and it is now working. I think one of the opportunities of the sovereign wealth fund is to invest in Spanish companies with Spanish public debt so that we can offer this revenue for Nigerians through this sovereign wealth fund while at the same time this fund offers jobs for Spain,” he added.

  • Skye Bank boosts agric finance

    Skye Bank Plc has rolled out a multi-service agric finance package including finances, advisory services and foreign liaison services to support existing and new Nigerian farmers as the nation steps up efforts to diversify its oil-based economy.

    Experts and stakeholders in the agricultural sector have all agreed that proper financing of the agricultural sector is the key to unlocking the nation’s economic growth.

    According to experts, when properly funded, the agriculture sector will not only create raw materials for local industries but will also promote the development of entrepreneurship in allied sectors and boost foreign exchange earnings.

    Skye Bank is increasing its well-known traditional financial supports for agriculture with establishment of a suite of customer-centric agricultural products and services aimed at not only providing finance but also other major success factors such as financial management services, advisory services, guarantees, information services, local and international liaison and other products and services that may be specially needed to enhance the success of the farmer.

    Executive Director, Corporate and Investment Banking, Skye Bank Plc, Mr. Timothy Oguntayo, said Skye Bank realises the crucial role agriculture plays in the life of the nation, especially as the Federal Government pursues a policy of economic diversification.

    He said the extensive agriculture support desk of the bank reinforced Skye Bank’s long-standing role as a key player in agricultural project financing with its project financing portfolio in the agricultural sector covering the entire nooks and crannies of Nigeria.

    As an indication of the bank’s extensive supports to farmers, Oguntayo cited the Imo Hill Farm as a case study of what the bank has been doing in recent times to ease access to finance to farmers and support them all through to meet the peculiarities of their operations.

    The Imo Hill Farm is an integrated farm project in the South Western part of the Nigeria which covers poultry, piggery, feed mill and meat processing. The farm has engaged MP Farms, a German agric firm known as one of leading names in Europe, as its technical partners.

    MP Farms would help to oversee the management of the whole farm, with experienced managers in poultry and piggery management already hired to manage each division. The processing unit is to be run by top class professionals from Germany with over 20 years experience in meat processing and food technology.

    With the supports from Skye Bank, the Imo Hill Farm promises to be a case study in agricultural innovation and livestock development in sub- Saharan Africa.

    Oguntayo noted that Skye Bank has through its branch network strategically located across the country, played and still plays a catalyst’s role in the growth and development of its clients’ businesses and projects.

    According to him, Skye Bank has been a major partner in the efforts by the Federal Government and the Central Bank of Nigeria (CBN) to bring back the glorious year of agriculture. The bank has participated actively in the CBN’s Agricultural Credit Guarantee Scheme and the N200 billion Agricultural Fund for the purpose of helping commercial farmers to boost large-scale farming.

    He pointed out that with Skye Bank’s strong balance sheet and amenable lending rate, farmers would have adequate access to finance to upscale their capacities and enhance their returns.

  • SUVs, other freebies for DStv subscribers

    IT’S gift galore for subscribers of DStv as several brand-new Sports Utility Vehicles (SUVs), all-expense-paid trips to South Africa to watch the forthcoming Africa Cup of Nations Tournament taking place in January, LCD television sets and many more are among the thousands of freebies that have been lined up for them by MultiChoice.

    According to Mayo Okunola, General Manager, DStv Brand, the prizes which are being given to DStv subscribers in its on-going DStv Mega promo seek to thank and reward customers for their loyalty to the DStv brand over the years.

    “On account of the support of our customers, DStv has recorded enormous progress in Nigeria. The current promo is a token of appreciation to our customers even while we continue to avail them of unrivalled content spanning different genres from news and information to movies, drama, documentary, education and learning, music, sports and so much more, across more than 100 different channels,” said Mr. Okunola.

    The Mega Promo he added, is not restricted to existing customers as new customers who purchase a complete DStv system are also eligible not only for an instant gift, but also to be entered into the Mega promo.

    All customers, regardless of the bouquet they are purchasing or paying a three-month subscription for, will not only get instant gifts but will also stand an equal opportunity of winning any of the prizes on offer in the Mega Promo, said Okunola.

  • Olisa heads Rivers signage agency

    The Rivers State government has announced the appointment of Mr. Christopher Olisa as Sole Administrator overseeing the operations of the recently established Rivers State Signage Agency.

    Prior to his appointment, Olisa was an Associate Director at Mindshare Media Agency, a leading generalist media consulting firm, part of the WPP Global network. A thorough-bred marketing communications and brand building expert, Olisa had during his years of practice in top-rated advertising and outdoor media agencies such as Ogilvy Benson and Mather, Prima Garnet Ogilvy and Mediashare Nigeria, distinguished himself as a rare brand building expert and marketing communications strategist.

    Saddled with the responsibility of designing the blueprint for the take-off of the new agency, industry analysts and experts have been unanimous in their position that the Governor Rotimi Amaechi-led administration is truly one that has mastered the skill of fitting a square peg in a square hole.

  • Ohuabunwa canvasses tax rebate for real sector

    For locally made products to be able to compete with foreign goods there is need for government to adopt the policy of tax rebate for manufacturing companies, Mazi Sam Ohuabunwa, former President, Nigeria Economic Summit Group, has said.

    He made this call at the sidelines of the maiden edition of the Nigeria Quality Summit organised by the Standard Organisation of Nigeria (SON) in Lagos recently.

    According to him, the high cost of doing business in Nigeria has made many local manufacturing companies to compromise on the quality of their products, thereby making Nigerian-made products not to be acceptable by other countries. He said the tax reduction policy, if implemented, will further boost the financial strength of local companies and will help them to be able to spend more on producing quality products.

    “Recently, the government through the intervention of the Ministry of Trade and Investments said that if you are generating your own electricity and you are creating your own public utility, there is new code that allows you to take a tax deduction. Some of the things that make us not competitive are the high cost of doing business. If government can reduce cost of business through tax rebate, then we are on the road to becoming competitive. The ministry should talk to the business men and manufacturers and understand their response and provide solution. This country cannot continue doing the same thing every year. We must move on.”

    He added, “I will advise the ministry to focus on creating enabling environment to make it possible for us to produce in a competitive manner. The problem with Nigeria today is competition because of the impact of globalisation. The ministry should create the environment, and I want to tell you they are beginning to listen to us.”

  • We’ll sanction errant stations—NBC boss

    The Director General of Nigerian Broadcasting Commission (NBC), Yomi Bolarinwa, has said that the Commission will continue to sanction any radio or television station, whether privately or government- owned, that goes against the ethical code laid down by NBC

    Reacting to the accusation that the Commission is biased in the way it deals with private stations, he said NBC is not favourable to government- owned stations when it comes to sanctioning erring stations, adding that any station that violate its rules will be dealt with.

    “It is not true that we are being unfair to private stations. You need to go to our websites and look at our sanctions. Take the 2011 and recent elections, you will found out the stations that were sanctioned. They were government stations like FRCN and NTA. NBC is fair and we maintained professional standards which is fairness to all the licensed stations whether private or government owned. NBC does not discriminate. The Nigerian broadcasting code is the yardstick for measuring your performance and it applied to every stations whether private or government.”

    He added that licensing of more stations and NBC stance on local contents has helped to promote Nigerian programmes.

    “We had licensed more satellite, television and radio stations. We have radio stations across the 36 states and six geo political zones of the country. We have ensured that professional standard is maintained in the industry. In this country, between the hours of 7pm to 10pm on daily basis, it is Nigerian programme and that is by the pronouncement of NBC. We have also made it that 80% of the programme on radio is Nigerian content and that has led to the exposure you have in the music industry in this country. We will keep on working on it. When you talk about capacity, it is also the responsibility of the station to ensure manpower development of their staff.”