The Nation Newspaper

Category: Business

  • Nigeria accounts for 30% of sub-Saharan Africa’s exports

    NIGERIA accounts for about 30 per cent of sub-Sahara African (SSA) countries exports.

    The international financial advisory firm, Renaissance Capital (Rencap), which made this known, said the volume of Nigeria’s exports makes it vulnerable to the global economic downturn.

    Rencap, in its report entitled: Sub-Saharan Africa: Export patterns: How trade dependencies have changed, said Nigeria is SSA’s biggest exporter.

    According to the reports, “Almost 30 per cent of SSA’s exports outside the region originate in Nigeria, and three countries – Nigeria, SA and Angola – dominate extra-regional exports, accounting for 70 per cent of the total, implying that SSA’s exposure to a global downturn through trade is concentrated in these three countries. We believe the impact on Nigeria and Angola is mitigated by their limited exposure to the EU”.

    Nigeria is said to have exported non-oil products worth over $1.40 billion this year. The figure represents about 11 per cent decline from the over $1.43 billion recorded over the same period last year.

    Value of exported goods for January was put at $161.6 million compared to $307.2 million realised a year ago.

    The Executive Director, Nigerian Export Promotion Council (NEPC), David Adulugba, had put the value of non-oil exports for the first and second quarters of the year at $660.1million and $686.2 million as against $818.8 million and $676.2 million recorded in the same period in 2011.

    According to him, Nigeria exported non-oil products worth $242.9 million in February, this year compared to $273.6 million recorded in the same period last year, adding that Nigeria exported non-oil products worth $255.7 million and $220.6 million in March and April, this year, as against $237.9 million and $250.6 million recorded for 2011.

    Meanwhile, the nation’s growth was said to have softened in 2012 to less than seven per cent on the back of a slowdown in the non-oil sector’s activity, particularly Agriculture and wholesale and retail trade, owing to insecurity in North.

    Rencap explained that floods have also threatened to further undermine growth in 2012. “We project growth of 6.3 per cent in 2012, down from 7.4 per cent in 2011.

    Floods also increased the risks associated with inflation, such that it might return to the low double digits and the policy rate likely to remain flat at 12 per cent in the short term.

    Rencap maintained that SSA economies that trade with the United States, which is facing the challenges in its fiscal policy, may experience slower demand in 2013, whereas the region experiencing the worst downturn – the EU (such as Southern Africa) – and/or have high export/GDP ratios (such as the Republic of Congo), are most exposed to the slowdown in global growth we expect in 2012 and 2013

  • Peppe Terra takes customer interaction to Facebook

    Desirous of engaging its numerous customers Peppe Terra, has opened an acount with popular social media, Facebook.

    According to a statement by the firm, the Peppe Terra Facebook page is an innovative and user friendly presence on the web, with modern approach to cooking that is slowly evolving as the ultimate destination for cooking related discussions, updates and chats – all pertaining to a lively mix of authentic and modern culinary practice in Nigeria. It features information and interaction on recipes, ingredients, cooking trends and consumer perceptions on cooking and food in general.

    It added that it is poised to using this engaging social media, beside twitter and google plus, to add a more personal touch to its marketing campaigns, as well as communicate with the consumers on a direct one to one basis.

    Peppe Terra, with its promise of “No Stress – No Mess – Peppe Terra – All Plus”, was launched in Nigeria in December, 2010 and the response from the consumer has been extraordinary.

    Roy Deepanjan, Managing Director, TGI Nigeria Limited (the makers of Peppe Terra, from the House of Chi) said: “Peppe Terra with its phenomenal franchise amongst consumer will always try to engage with her consumers through every possible touchpoint and Facebook was just one of the options. The Facebook page has developed an online community where consumers log in on a regular basis, to learn, discuss and share views on Nigerian cooking, food & recipes.”

  • Fed Govt to set up 40 new rice mills

    Fed Govt to set up 40 new rice mills

    The Federal Government is working on establishment of 40 new rice mills early in 2013 through a collaborative arrangement with the Chinese Exim Bank.

    This rice mills are to be located in all the states of the federation in concerted effort and integrated strategy to achieve the new national goal in agriculture.

    The Chairman, Rice Processors Association of Nigeria (RIPAN) Hon. Mohommed Abubakar disclosed this in a maiden press conference on the Rice Value Chain by the Rice Processors Association of Nigeria in Abuja, stating that in the past four years alone, investment in rice processing has exceeded N200billion.

    He said, “The current Minister of Agriculture is working towards implementing all the various components of the programme all over the country, while striving to ensure that the nation reaps the expected benefits in youth employment, farmer’s prosperity, poverty reduction and national food security through a well-coordinated action plan in the agricultural transformation agenda.

    “The Nation is well on its way to success as important milestone are being achieved and course corrections are being made in a never before achieved successful example.

    “With the current hit in the natural disaster of flooding all over the country, the farm product lost is as high as 40% of the annual crop/yield. As an association we will take up the remaining harvest promptly to facilitate dry season farming activities.

    “From preliminary investigation in the flood affected areas, it is estimated that about 40% of the rice crop may have been lost, particularly in the lowlands swamp areas near the major rivers. This may create a supply shortage of about 1.5million tons in the local availability of paddy, translating to milled rice shortfall of about one million tons.

    “This as far as the association is concerned should not create a major food crisis or food shortage to the level being touted by rice merchants and speculators who are advocating massive rice imports. We acknowledge that foods may have dealt a serious blow to yam and cassava, which could have provided some relief in the food chain, basket in the absence of rice grain, yet there is no need for panic and speculative hype call for rice importation,” he stressed.

  • Fed Govt, states, others to develop industrial clusters

    The Federal Government is set to work with 36 states and other stakeholders to develop industrial clusters in the country, the Minister of Trade and Investment, Olusegun Aganga, has said.

    The minister spoke in Abuja when members of the steering committee on Pan African Competitiveness Forum (PACF) paid him a courtesy visit.

    Aganga said the clusters would be developed based on comparative and competitive advantage, and that their establishment would boost the economy through the creation of jobs and wealth.

    He said the government was also poised to revive the One Local Government, One Product scheme.

    Aganga expressed concern that funding had been a major challenge to the development of Small and Medium Scale Enterprisies (SMEs) in the country.

    He said government would endeavour to create the right environment for SMEs to thrive.

    The minister expressed the commitment of the government to work with the Forum to realise PACF’s objectives.

    The PACF Steering Committee was led on the visit by Prof. Peter Onwualu, Director-General, Raw Materials Research and Development Council (RMRDC).

    Onwualu explained that the development of modern clusters could lead to the creation of about 30 million jobs in the country.

    Onwualu, who chairs the committee, said its members visited the minister to brief him on the Fourth annual continental conference of PACF to be hosted by Nigeria.

    He said the conference would focus on the development of clusters with to create jobs and wealth among member states.

  • Fed Govt to get $77.73m loan from France

    Fed Govt to get $77.73m loan from France

    THE Federal Government is to receive a $77.73 million loan from the French Development Agency (AFD) to co-finance the second National Urban Water Sector Reform Project (NUWSRP2) in Cross River and Lagos states.

    According to a council memo, the Co-ordinating Minister of the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, will present the matter for deliberation to the Federal Executive Council today.

    Also at the FEC’s meeting, the government is expected to award a N600 million contract for the purchase of Direct Data Capture Machine to boost the collection of Value Added Tax (VAT).

    The contract will first be revised at the meeting before the award is granted to the successful contractor that will supply the machines.

    According to the memo seen by The Nation, the first item on the day’s agenda is “the revision of the contract sum for the procurement of Direct Data Capture Machines to enable the payment of VAT amounting to $3,750,760 on the importation of the Direct Data Capture Machines.”

    Also, the Federal Government will increase the contract price of food stuff to be supplied to prisons across the country. A memo earlier circulated by the Minister of Interior on September 21, will urge members of the Federal Executive Council (FEC) to consider increasing the “contract prices for supply of food stuff and cooking gas for prisoners.”

    The Nation also gathered that contracts will be awarded for the rehabilitation of the ECOWAS secretariat in Abuja, going by another memo expected from the Minister of the Federal Capital Territory, as well as the “contract for the augmentation of per/post contract consultancy services for the improvement of power supply to the Murtala Muhammed International Airport, Lagos. The memo will be presented by the Minister of Aviation.

    Approval is also expected for the award of contract for the construction of the Sagbemi-Kirigbo-Gada-Igbekibo road in Ondo State, as well as the ratification of the President’s anticipatory approval for the ward of contract in respect of 28 infrastructure development projects for the Niger Delta Development Commission (NDDC).

    The last two items on the agenda for today’s FEC meeting are those presented by the Minister of Works for the augmentation of contract NO 1793 for the dualisation of the Ibadan-Ilorin road section 1 Ibadan-Oyo road in Oyo state and addendum No 2 for the extension of the service lanes from KM0+000 (River Niger Bridge Head, Onitsha) to KM1 +000 and rehabilitation of slip roads at Upper Iweka interchange in Onitsha Anambra state under contract number 6134.

  • Minister’s briefing delays Reps debate on PIB

    Minister’s briefing delays Reps debate on PIB

    The House of Representatives yesterday postponed the debate on the contentious Petroleum Industry Bill (PIB) to enable the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, to brief the House.

    The debate was deferred till next week. This makes it the second time the debate on the bill would be postponed. It was billed for discussion before the House went on recess. Just like the first occasion, the PIB was listed on the order paper for debate, but this was not taken.

    When she was invited to take the lead debate at plenary yesterday, the House Leader, Mulikat Akande-Adeola, said ministerial details were lacking in the bill and therefore requested for more time to enable her receive briefing from the minister.

    Sequel to the demand by the House Leader, the Speaker said: “House Leader has requested that we step down consideration until she gets briefing from the Petroleum minister.

    “We will begin debate on PIB next week. Honourable members intending to contribute are to drop their names with either of the whips.”

    The first time the House refused to debate the PIB was on the eve of the House’s two- months break.The House while rejecting the bill, wondered why the Presidency was sending it at the onset of a two-month recess, adding that the act was not only mischievous but also an effort at blackmail.

    The House yesterday resolved to merge the Petroleum Industry Bill with a similar member bill sponsored by Kaka Kyari Gujibawu, entitled, ‘A Bill for an Act to Establish the National New Frontier Exploration Agency, for the purpose of Exploration and Production of Oil and Gas in the frontier of chad basin, Dahomey basin, Imo basin, Benue trough and Sokoto Basin.’

  • Sinopec set to buy Total Nigeria’s stakes

    Sinopec set to buy Total Nigeria’s stakes

    China’s Sinopec is close to buying stakes in Nigerian onshore oil blocks from French oil major Total worth about $2.4 billion, the Bloomberg news agency reported yesterday.

    Asia’s largest refiner has signed a preliminary deal to acquire the stakes, the report said without providing more details.

    When contacted, a spokesman for Total declined to comment on the report. The Nigerian National Petroleum Corp (NNPC) was not immediately available for comment.

    The French group said in September it planned to sell assets worth between $15 billion and $20 billion in the period up to 2014 as part of a bolder approach to managing its business, which has seen it buy and sell assets more frequently.

    Total shares were little changed, trading down 0.06 per cent, while the European oil and gas sector edged 0.07 per cent up.

  • Jonathan promises agric revolution

    Jonathan promises agric revolution

    The Federal Government has restated its determination to revolutionise the agricultural sector to achieve self-sufficiency in food production, as well as provide job opportunities for the teeming unemployed youth in the country.

    President Goodluck Jonathan, who gave the assurance in Dutse yesterday, during his courtesy call on the Emir of Dutse, Alhaji Nuhu Mohammadu Sanusi, said for the country to achieve self-sufficiency and boost its economy, agriculture will continue to be the cornerstone.

    “I am looking into many areas, but of course, our emphasis will be on agriculture in order for us to get to where we want to be. We will also make sure that power is stabilised. We are concentrating our time and energy to improve power supply in the country so as to encourage small and medium enterprises.

    “But agriculture will remain the main focus because for us to create wealth across the length of the country. We must revolutionise agriculture; that is an area we are working very hard and I believe before we quit office, I believe our vision and mission will be very clear to most Nigerians.”

    While laying the foundation stone of the N5 billion Jigawa International Airport in Dutse, Jonathan commended the efforts of the state Governor, Dr Sule Lamido but pointed out that it is not mandatory for all states to have an international airport, adding that what is important is a functional airport.

    However, Jonathan promised to partner with the state government to complete the project.

    He appealed to NYSC member to accept postings to the state, noting that it is among the most peaceful states in the country.

  • Banks breaching ATM rules

    Banks breaching ATM rules

    Banks are yet to comply with the Central Bank of Nigeria’s directive that all Automated Teller Machine (ATM) related complaints should be resolved within 72 hours.

    The Nation investigations showed that it still takes many banks about a month to resolve simple complaints, such as non-dispensal of cash, debit without payment, card trapping or repair of non-functional machines. The banks are also not abiding by global best practices that require them to specify and inform customers about machines that need repairs, or those out of use.

    This breach is likely to be sanctioned by the CBN.

    A customer of one of the banks, Chukwudi Okafor, who is yet to have his N40,000 refunded after the ATM debited him without dispensing the cash, said he has written several letters to the bank, completed the complaint forms for almost a month, but nothing has been done.

    He said the challenge of delayed resolution of ATM complaints may affect customers’ perception on use of other e-payment channels, such as Point of Sale (PoS), among others.

    Okafor said the problem would have been averted if there was a notice on the machine, informing customers that it was faulty.

    “In many cases, customers get into problems because banks fail to properly inform them about the working condition of ATMs at a given time. I doubt if any customer will attempt using a machine that is faulty knowing the implications,” he said.

    Another customer, Abiodun Ogundipe, whose card was trapped in one of the ATMs, said he had problems getting the bank to reissue a new one, adding that after paying N1,000 to replace the card, nothing has been done in the last one month.

    Investigation showed that although many banks advise customers to complete forms to guide them in resolving such complaints, such resolution, if at all, takes about a month or more.

    The apex bank had earlier warned banks to resolve complaints from ATMs within 72 hours. “The CBN circular said: Failure to respond to the customer or the CBN on ATM complaints within 72 hours will attract a fine of N50,000 per day for each complaint after the 72 hours until the response is received, while failure to resolve any ATM dispute with evidence of resolution within 14 days, the operator will refund the total money involved in the fraud.

    “All cardholders’ complaints are to be treated within a maximum of 72 hours from the date of receipt of the complaints. Networks used for transmission of ATM transactions must be demonstrated to have data confidentiality and integrity. Where the user of the ATM blocks his image for camera capture, the ATM should be able to abort the transaction.”

    The regulator also said operators that fail to establish help desks contacts, or non functional help desk contacts will attract a fine of N50,000 for each day of infraction, while failing to disclose ATM surcharge to customers, the CBN will enforce a refund of the surcharge.

    The CBN added that other non-monetary sanctions that could be applied for these infractions include naming the offenders at the Bankers’ Committee Forum, suspension of offenders from participating in clearing operations until the infraction is corrected, in addition to suspending offenders from participating in Real-Time Gross Settlement (RTGS) operations until the infraction is corrected.

    Also, the CBN directed that the helpdesk contacts are to be adequately displayed at the ATM terminals, while all surcharges are to be fully disclosed to customers. The new rule also stipulates that there must be availability of cash in ATMs at all times.

    “The funding and operation of the ATM deployed by non-bank institutions should be the sole responsibility of the bank or institutions that entered into agreement with them for cash provisioning. Every ATM is expected by this arrangement to have cameras that will view and record all persons using the machines and every activity at the ATM like card insertion, Personal Identification Number (PIN) entry, transaction selection, cash withdrawal and card taking, among others.

    Also, regulatory monitoring stipulates that any institution which operates ATM should file an updated list of such machines, including the details of location of their addresses with Banking and Payment Systems Department of the CBN for compliance monitoring. The apex bank is expected to conduct onsite checking of such machines, with a view to ensuring compliance with cash and service availability at the ATMs.

    On penalties to defaulters, the new CBN guidelines stipulate sanctions in the form of monitory penalties, or suspension of the acquiring /processing services or both will be imposed on such erring institutions for failure to comply with any of the provisions.

    Analysts insist that there is little or no implementation of these rules by the apex bank which would have improved ATM usage and confidence in the country.

  • CIIN seeks operators’unity, cooperation

    The President, Chartered Insurance Institute of Nigeria (CIIN), Dr Wole Adetimehin, has said the rift among insurance operators is inimical to the industry’s growth.

    Adetimehin, who spoke during a stakeholders’ conference in Ibadan, Oyo State urged the operators to collaborate and move the industry forward.

    He called on the practitioners to have a change of attitude, adding that the industry can only grow when stakeholders are committed to their profession.

    He said: “My observation is that we are loyala to the arms of our industry instead of seeing ourselves as professionals with a common stake; that is, brokers are loyal to Nigerian Council of Registered Brokers (NCRIB), underwriting staff to Nigerian Insurers Association (NIA), Loss adjusters to the Institute of Loss Adjusters of Nigeria (ILAN).

    “We must shed this coat and put up a united front as one profession. Self-development is advocated for the individual and companies should reward the staff adequately when they acquire higher qualifications.”

    He noted that the need for change of attitude and total commitment to the profession can note be over emphasised, adding that integrity and transparency should at all times be the guide for operators.

    “We must refrain from unethical conduct and any infractions should be reported to the institute for disciplinary action to deter others and improve our perception,” he said.