The Nation Newspaper

Category: Business

  • Union Bank chair seeks diversified economy

    Union Bank chair seeks diversified economy

    Worried by the poor state of the nation’s economy, Chairman, Union Bank PLC, Mr Dick Kramer, has urged the Federal Government to deregulate the Nigerian economy and diversify to non-oil sector to cushion effects of dwindling price of crude oil in the international market.

    He made the call in Lagos while delivering a keynote address on “Deregulation and Nigeria’s investment Climate,” at a seminar organised by Nigeria South African Chamber of Commerce and Phillip Consulting.

    According to Kramer, there is need for deregulation in every sector of the economy to sustain a stable growth that would complement the country’s rapid population growth.

    The financial expert noted that the petroleum sector is the major driver of Nigerian economy, but also a source of major problems and risks. He said the Petroleum Industry Bill (PIB) might not be the solution to the nation’s economic problem.

    “PIB raises major questions that need to be fully debated and resolved. Nigeria needs to ascertain the feasibility of the bill, how to expand local capacity and participation in the oil sector, because Nigeria cannot afford the risk of a sharply lower oil sector, the question on how to maintain the required technological capability to optimise Nigeria’s petroleum industry need to be resolved,” he said.

  • Boosting food production in Kebbi

    Agriculture accounts for a substantial aspect of Kebbi State’s economy. Food crops include guinea corn, rice and millet while cash crops include groundnut and cotton.

    Others are wheat, beans, tobacco, sugar cane, sweet potatoes and vegetables, such as onion, pepper and tomatoes.

    Almost 75 per cent of the population make their living from farming. Many factors give Kebbi its competitive advantage in the agri-food sector.

    The state boasts of rich a agricultural land. About 200,000 hectares of the land are fadama land, mainly on the flood plains of the Rima and Niger valleys.

    The rest is upland, where season cultivation by mainly small farmers dominate. Agriculture continues to dominate the state’s economy. It is also the largest contributor to the state’ s coffers. Farming is mostly based on indigenous techniques, using local inputs of seeds, family and animal labour and informal credits.

    Animal traction is used among the Kambari,Dukawa and Dakarkari. Indigenous forms of cultivation are, however, gradually giving way, as more farmers now use improved seed varieties, chemical fertiliser, formal credit facilities, ploughs and tractors. Due to migration of family members, indigenous forms of farm labour also are gradually being replaced by hired labour. Some farmers rear cattle, sheep and goats to augment their income.

    These animals are fed with the stalk of grains, and leaves of legumes.For the most part, animals are grazed in the open field around the village and in the fadamas. Animal wastes are in turn used to manure the field. Therefore, some form of mixed farming is practised. Most animal rearing is done by the Fulani who oscilate from north to south.

    There are nine forest reserves in Kebbi, and there are pockets of ‘natural’ forests in the south and southeast,which yield forest resources such as wood, thatches, fruits as well as being sanctuaries for wildlife.

    Already, the forests in the riverine areas of the state are exploited for wood, used in boat building at Yauri, while in the other parts of the state (around Zuru), the people use the wood in carving mortars, pestles and handles of various implements like hoes and knives.

    Existing forest resources are, however, undersevere threat by animal grazing, bush burning and sourcing for fuelwood. These have caught the t attention of the Kebbi State Ministry of Agriculture, and Natural Resources, the Kebbi State Afforestation Programme (KSAP) and the Kebbi State Environmental Protection Agency (KSEPA).

    These agencies have pushed through various edicts to curtail the wanton destruction of forest resources. Furthermore, they have undertaken campaigns to improve the quality and number of forest reserves in the state.

    Kebbi has abundant livestock which include cattle, sheep, goats, camels, horses, donkeys, pigs and poultry. A survey of livestock potential in the state.

    The state ranks among the five with the highest number of livestock. It exports quite a substantial number to other parts of the country.

    The importance of livestock in the economy of the state can be deduced from the number of slaughtered yearly. It is estimated that about 110,000, 152,000 and 211,000 cattle, sheep and goats are slaughtered yearly in the state. Thus hides and skins are an important livestock subsector.

    The government has invested N1.6 billion in the IFAD-assisted Community-Based Agricultural and Rural Development Programme (CBARDP) in the last three years. The programme is being financed by the International Fund for Agricultural Development (IFAD), with the federal, states and local government providing counterpart contribution.

    The programme has helped youths to be self-employed by providing them with water pumping machines and boreholes to irrigate their crops. An improved variety of cowpea and millet have been introduced to the beneficiaries by the Institute for Agricultural Research, Ahmadu Bello University (ABU), in collaboration with International Institute of Tropical Agriculture (IITA), Ibadan,with a view to attracting buyers from Niger Republic.

    The programme gave farmers improved varieties on cowpea and millet,which they call ‘wanke- IFAD’ and ‘dawa-IFAD’. The farmers tried it and found it to be high-yielding and they have abandoned the old variety.

    It has also boosted crop and livestock production with the provision of improved seeds and work bulls, among other support, he said. The focus of the government is to promote greater agricultural productivity, strengthen early warning and response systems and improve livelihoods.

    To achieve these, the government works to facilitate the necessary changes in the agricultural sector and facilitate the transfer of best practices and technologies.

  • High prices of livestock, foodstuff herald Sallah

    High prices of livestock, foodstuff herald Sallah

    Id-Al-Adha is a season of celebration observed by Muslims by slaughtering rams and preparing various delicacies.

    With this year’s Sallah festival, the country is battling with challenges such as scarcity of fuel and increase in transport fare as well as high prices of foodstuffs and livestock. People are facing so much difficulty in getting their rams and foodstuffs for the celebration.

    Ram is the major livestock used for the Sallah celebration and due to the increase in the price of fuel resulting in scarcity, it has been difficult to transport the item from neighbouring countries, such as Niger Republic without increase in their prices.

    A ram that cost N35, 000 last year is now N60,000. Bad roads has also contributed to the increase in prices of ram since truck owners charge exorbitant fares to convey them from Kano to other places.

    Mallams in Kano complained that the recent floods have washed away or killed their rams meant for sales for the festival. This has resulted in increase in the prices of rams.

    The abattoir at Berger bridge along the Lagos-Ibadan Expressway is popularly known for sales of livestock, especially during the Sallah season, but buyers have been complaining about the high cost of ram.

    A butcher, Yusuf Abdullah, said there have not been customers to purchase ram because of the rise in prices. He said he had to sell a ram of N50, 000 last year for N90,000 this year because of the challenges the country is facing.

    Mr Musibau Oladele, a buyer at the ram market at Oke-Afa Bridge, Isolo, Lagos, said that a ram he bought for N40,000 last year has now been increased to N85,000. Also, at the Owode Ram Market, near Mile 12, Lagos, the price of ram range from N70,000 to N150,000.

    It is not just the cost of ram that has increased, but also the prices of foodstuffs, such as fresh tomatoes, rice, onions and groundnut oil. A basket of tomato was between N8,000 and N10,000. But now costs N40,000. The medium basket formerly N500 is now N800.

    Mrs Titilope Ajanaku, a buyer at Mushin market, said the rate of the increase in price of fresh tomatoes is alarming. She stated that as at last month she still bought a small size basket of tomatoes for N150 but now it is N400.

    Mrs Kikelomo Badmus, a trader at the popular foodstuff Daleko market, said the increase in sales of foodstuffs was due to the Sallah celebration, which increased the demand for food items. She said a bag of rice that was formerly N8,000 to N10,000 now costs between N15,000 and N20,000 depending on the quality.

    Other markets where rams could be bought are Alabarago market along the Lagos Badagry Express Way, Lagos, Costain and Ketu Alapere markets by Ikorodu road, Lagos.

    Mr Abddul Azeez who trades in livestock on Kumuyi Street at Ojuwoye market, Mushin, Lagos, said: “The prize of ram ranges from N30,000 to N50,000, but the prize of cow is higher, ranging from N80,000 to N100,000 depending on the size. It is a bit more costly this year. But you know, it is something we cannot do without this festive period. It is a very lucrative business but a seasonal one. People have taken advantage of the festivity to nurture the livestock for some months before the Sallah to make them look healthier and more robust. It is expected of Muslim faithful to share the items with neighbours, friends and well wishers.

  • May & Baker targets N27b turnover

    May & Baker targets N27b turnover

    May & Baker Nigeria Plc would more than quadruple its turnover to N27 billion in the next five years as the company consolidates plans to become one of the 10 largest conglomerates in Nigeria.

    In a preview of the prospects of the company during a factory tour to the company’s manufacturing complex in Ota, Ogun State, by capital market stakeholders, group managing director, May & Baker Nigeria Plc, Mr Nnamdi Okafor said the company has laid the groundwork for growth and would going forward harness the potential of the diversification of its business.

    Audited report of the company for the year ended December 31, 2011 showed a turnover of N4.8 billion, a 4.5 per cent increase from N4.6 billion recorded in 2010. Profit after tax stood at N255.5 million, up by 32.5 per cent from N192.9 million attained in 2010.

    Okafor outlined that the company would collaborate with international partners as part of measures to generate more funds and technical support, noting that the management is in “a hurry to achieve results.”

    He said four firms have already indicated interest to take advantage of the state-of-the-equipment available at company Pharma Centre, a WHO-standard pharmaceutical manufacturing plant ensconced in the Ota complex.

    According to him, the company would continue to diversify to cover all areas of healthcare and wellness while growing a West African brand of international standard.

    He said the company has done well in the past seven years with decent revenue, profit and dividend records while it has also engaged in rapid diversifications and made many bold fixed assets investments profile.

    “Our goal now is to turn our good company into a great company with consistently impressive profit and loss accounts and balance sheet. We need to build a wall of perceived invincibility and perpetuity around us with strong brand and strong institution,” Okafor said.

    He outlined that the company’s turnaround strategies would entail recapitalisation of its business and improvement in its ability to compete in current businesses.

    He added that the company would step up marketing and research and development efforts while also improving on its operational efficiency through process re-engineering and automation of its processes.

    At the recent Annual General Meeting (AGM) of the company, chairman, May & Baker Nigeria, Lt. Gen, Theophilus Danjuma (rtd), said the company was hopeful improving significantly on dividends to shareholders as it begins to reap from the benefits of its investment in the ultramodern pharmaceutical manufacturing centre.

    He said the dividend payout of 10 kobo per share being paid for the 2011 business year would serve as benchmark for future returns, assuring shareholders that the board and management would continue to identify new areas of investments for future growth.

    “We are very positive about the future of our company. We intend to aggressively drive our business diversification and market penetration and expansion strategies, leveraging on the potentials of our newly completed world class manufacturing plant,” Danjuma said.

    He intimated the shareholders that May & Baker is currently working on a number of new products, which are expected to be launched before the end of this year.

  • NB donates dialysis machines to LASUTH

    As part of efforts to contribute its quota in the pursuit of good health delivery, Heineken Africa Foundation (HAF) in collaboration with Nigerian Breweries Plc has donated two dialysis machines to the Lagos State University Teaching Hospital (LASUTH).

    The machines, worth N16 million were donated with consumables of about N3 million. Nigeria Breweries also pledged to foot maintenance cost for a year.

    The Managing Director/CEO Nigerian Breweries Plc Nicolaas Vervelde, represented by Mrs Eithel Uche, disclosed this during the presentation of the machines.

    Vervelde said the donation is a practical demonstration of the commitment of the organisation to Lagos State and promised more machines if the need arises. He said the donation and installation of the machines was especially for the dialysis of HIV+ and Hepatitis B+ patients, today is one of several health related projects lined up as a demonstration of Breweries commitment to social responsibility in Lagos State.

    He said: “Being a socially responsible corporate organisation, NB is committed to supporting developmental aspirations. As a result of its special relationship with Lagos, we have over the years invested heavily in several CSR and youth empowerment programmes in the state.

    The Chief Medical Director (CMD) LASUTH Prof Adewale Oke, who commissioned the donation of the dialysis machines, expressed his appreciation to the management and staff of Heineken Africa Foundation and Nigerian Breweries Plc for their kind gesture extended towards LASUTH and its numerous clients. He reiterated the plan of the hospital to build a kidney transfer centre.

    According to him, the machines will go a long way in helping people live longer and healthier lives, it will also help people with HIV and Hepatitis B and also ensure that the plan of the hospital to expand the unit is achieved soon.

  • ‘Forced merger for tier 2 banks likely’

    ‘Forced merger for tier 2 banks likely’

    Nigeria’s smaller banks may be forced to consolidate to compete with the biggest institutions, Mark Mobius, executive chairman of Templeton Emerging Markets Group, has said.

    According to Bloomberg report, Nigerian banks have reported rising profits and loan growth this year. “The largest banks are moving forward at a fast pace to strengthen their position, so smaller banks may not have any other choice but to merge or acquire,” Mobius, who oversees about $45 billion, said. According to him, there is a possibility of further consolidation in the banking sector although he failed to identify any banks that may combine.

    He said the growth of the industry comes after Central Bank of Nigeria (CBN) Governor Lamido Sanusi fired the chief executive officers of eight of the country’s 24 lenders in 2009 and bailed them out with 620 billion ($4 billion) because loans by banks to equity speculators and fuel importers had pushed the industry to the verge of collapse. The government then set up Asset Management Corporation of Nigeria (AMCON) to buy bad debts from the country’s banks.

    He said that most banks have swung back to profit after selling their bad debts and are set to benefit from an economy forecast by the government to grow 6.5 per cent next year, the same pace as it expects this year.

    He said that Bloomberg NSE Banking Index, which tracks Nigeria’s 10 biggest banks by market value has advanced 60 per cent this year, compared with the 31 per cent rise of the Nigerian Stock Exchange All-Share Index. Templeton holds shares in Nigerian lenders including Guaranty Trust, Zenith Bank, Access Bank Plc, United Bank for Africa Plc and First Bank of Nigeria Plc, according to data compiled by Bloomberg.

    “We are not reducing,” said Mobius. “We are long-term holders.” Templeton is also considering buying shares in Kenyan banks to “get exposure to the entire Kenyan economy, which we see growing at a healthy pace,” Mobius said.

    He said that Kenyan banks are attractive to international investors because their practices, capital adequacy and other ratios are fundamentally good. “Given the generally low penetration of banking services throughout the country there are excellent prospects for growth,” Mobius said. “We see continued growth in the next 10 years.” Increased capital requirements in Nigeria and other African countries are “quite positive,” he said.

    Kenya, Ghana, Gambia and Zambia increased minimum capital requirements for foreign lenders in the past 12 months. Banks must obtain new funds to re-capitalise their foreign units and won’t be allowed to use money already raised by their parent companies, the CBN said in a statement published on its website on July 26.

  • A breath of fresh air

    A breath of fresh air

    Air fresheners are very affordable, but vary in types, fragrance, prices and sizes. They are sold in markets and stores in your neighbourhood.

    Whether you are looking for a battery operated automatic metered spray air freshener system to deodorise your environment around the clock, natural air fresheners, hand held air fresheners, or you simply want a solid auto air freshener for your car, office, bathroom, reception, room, restroom, smoking area, kitchen or home, air fresheners have that touch of luxury to brighten your environment and give it a lasting fragrance.

    Local air fresheners such as airwick cost N350. The automatic ones cost between N1, 500 to N2, 000.

    Air fresheners are designed to deal with household odor problems. The fragrances create a fresh and pleasant atmosphere in your immediate environment.

    To transform your home to a great environment making you feel happy and joyous, air fresheners have a range of offerings to suit your specific needs. It is an affordable way to protect yourself against the harmful effects of indoor air pollution.

    “Without air fresheners in my home, I always feel uncomfortable. I make sure I buy them at every shopping opportunity; this is because I can’t do without them, they make my home smell great”, said Mrs. Elizabeth Ahonsi who is of the view that air fresheners are a must for every home and environment.

    Air fresheners typically emit sweet fragrance. There are two broad air freshener categories: continuous action and instant action. Continuous action products include: scented candles and devices which use a candle frame or some other heat source to heat or vapourise a fragrant formulation.

    Instant action systems are mainly aerosol sprays, or atomisers. The aerosol spray uses a propellant and fragrance packaged under pressure in a sealed metal or glass container with a valve which is opened by pressing down a button which contains a spray nozzle.

    Air fresheners introduce fragrance into the air of interior spaces either as droplets which translates to vapour or as the molecules of fragrance ingredient evaporating from a source. Fragrance diffuses into the air to mask other odors or to introduce a specific odor.

    Automatic air fresheners, handheld room deodorizers, solid air fresheners, ozium odor neutralisers, aero air fresheners, air fresheners dispensers, gel air fresheners and bathroom air fresheners are all available to achieve that desired fragrance that you deserve.

  • Reckitt Benckiser unveils Dettol 21 days of healthy hands habit campaign

    In Nigeria 200,000 children under the age of five die every year due to Diarrhoea. 88 per cent of diarrhoeal deaths could be attributed to unsafe water, poor sanitation and hygiene.

    Once again Dettol realising the importance of continuing these efforts in Nigeria is embarking on a 21 days campaign on the Global Hand Washing day, where they will reach people all over Nigeria with the message of washing their hands regularly for 21 days. Why 21 days because popular belief is that’s the time it takes to build a habit.

    More over in order to increase participation of kids and families and make the habit of hand washing enjoyable Dettol has launched its Sound of Health Sound track which encourages children to wash and keep good hygiene to prevent illnesses

    (Visit: http://www.dettolghd.com/ for details of content and Participation)

    During these 21 days, Dettol will use its new ‘‘21 Days to a ‘Healthy Hands’ Habit campaign to intensify the hand hygiene awareness campaign using various media platforms such as out of home types comprising branded BRT buses, digital billboards as well as print and electronic media . These are all in addition to an interactive theme song which has been produced to promote the campaign.

    Hand washing with soap is one of the world’s most cost-effective preventive health interventions and has been proven to reduce the risk of not only diarrhoea, but also some of its more severe manifestations, such as cholera and dysentery, by 48-59 percent.  Regular hand washing with soap has also recently been shown to reduce pneumonia infections by 25% and levels of school absenteeism by between 20 and 50 per cent

    Dettol has been at the forefront of providing Health and Hygiene messages via its products to Nigeria for the last 50 years. The company’s vision is to have a world where people are healthier and live better.

    In a similar stride Dettol has been conducting mass programs to make a difference to the lives of Nigerians through the following initiatives:

    New Mum Program where they have reached 5 million moms since 2006 teaching them good hygiene habits for themselves and their new born babies;

    The Health on Wheels Program where they have reached 150, 000 families through mobile clinics;

    School Hand Hygiene Program in which they have reached almost a million kids this year across schools in Nigeria while a total of 3 million kids have been reached since they started the programme in 2009.

    According to Reckitt Benckiser, many more Nigerians will be exposed to the message of regular hand washing thereby increasing mass awareness on the immense benefits of hand hygiene.

    Commenting on the “21 Days to a ‘Healthy Hands Habit with Dettol” campaign, representative of the National President, Nigerian Medical Association (NMA), Dr. Martins Momoh commended Reckitt Benckiser for the innovative concept. He said the adoption of a healthy hands habit through regular hand wash with soap and water will go a long way in combating many diseases that are caused by germs.

    Also speaking, Deputy Director (Laboratory Services), Federal Ministry of Health, Mr. Oyebanji Oyenuga affirmed that incidence of communicable diseases in Nigeria and elsewhere will drastically reduce when people imbibe the habit of hand washing with soap and water.

    “As a laboratory scientist of over 30 years, I can confidently say that the importance of regular hand washing with soap and water cannot be over-emphasized because the unseen germs that cause diseases in human body are real.” He noted that the campaign is well focused, and pledged the readiness of the federal ministry to partner with the company in any area it may desire.

    Speaking in similar vein, the Director, Press and Public Relations, Special Duties Office of Secretary to the Government of Federation, Mrs Philomena Oshodin applauded Reckitt Benckiser and its flagship Dettol brand for blazing the trail in hand hygiene advocacy. She thanked the company for its unrelenting commitment to good health in Nigeria.

    “Your efforts are in line with the Millennium Development Goals part of which is to reduce maternal and infant mortality. With this kind of initiative, your support to government towards eradicating diseases and building a strong, healthy nation is immense. Thank you for the wonderful job that you are doing. We will certainly let government know what your company is doing”, she said.

    Speaking at the media conference to unveil the campaign in Lagos, Ashok Bhasin, Managing Director, Reckitt Benckiser Nigeria Limited/General Manager, Reckitt Benckiser Central Africa Region, said the 21 days’ target is predicated on the research finding on human behaviour and attitudinal change to the effect that it takes a period of 21 days of consistently doing a particular thing to make it a habit.

    ‘‘Interestingly, the main focus of the hand washing campaign is to educate the children, who are the ‘agents of change’ to cultivate the habit of hand washing.

    Dettol, the world’s no.1 antiseptic brand is renowned for protecting millions of families from germs globally. With its passion and commitment to health and hygiene, the 21 Days to a ‘Healthy Hands’ Habit with Dettol will further go a long way in improving the hand hygiene situation of millions of household in Nigeria and significantly help to reduce death arising from preventable diseases.

  • UBA spearheads talks on infrastructure devt

    UBA spearheads talks on infrastructure devt

    United Bank for Africa (UBA) Plc has taken a frontline position in stakeholder’s discussions on bridging the gap between opportunity and infrastructure investment in Nigeria and Africa.

    A two-day United States (US) /Africa Infrastructure Conference, themed Building the Infrastructure for Nigeria ’s Vision 20:20, was organised in the US by The Corporate Council on Africa (CCA) in conjunction with the Embassy of Nigeria and co-sponsored by UBA Plc.

    CEO, UBA Capital, Africa, Wale Shonibare spoke at a panel session titled “Financing it All”. He commended the Federal government’s renewed focus on developing infrastructure to stimulate economic growth. According to him, “policy decisions such as the recently announced tax incentives to encourage private sector investment in infrastructure are essential to accelerating investment in the sector.

    He sid UBA Capital is positioned to assist American and other overseas investors with interest in exploring the abundant opportunities presented by the rapid growth in the Nigerian economy. “As one of Africa’s leading financial services group, UBA has proven ability to finance big ticket transactions,” he added.

    He said the confab was an important step in bringing the Vision 2020 goal to fruition. Key speakers at the conference identified project opportunities totaling $2.8 billion for successful development of roads and bridges, rail, ports, airports, agro-allied cargo operations, housing, water and information communication technology.

  • Hot sale of abbayas for Sallah

    The Sallah festival is not just a celebration for killing rams and preparing delicacies but also for adorning beautiful attires.

    The latest fashion trend nowadays is Indian gowns and abbayas worn mostly by Muslim women. These attires can be used for social, traditional and wedding events. They are usually beautiful and colourful.

    They are affordable, costing between N2, 500 and N4,000. But with the Sallah, they now cost N5,000 to N10,000 depending on the size and length, which may be long or short.

    Alhaja Muibat Oladejo, a trader at Nnamdi Azikwe Road, Central Mosque, Idumota, Lagos, said she had to increase the prices of her clothes because of the Sallah celebration. She also said her goods come from Kano and the transporters have increased the fare due to fuel scarcity and this has led her to increase prices.

    Mrs Toibat Abdul Kareem, a shopper at the market, said she had to buy clothes that went for N4,500 last year for N6,000 due to the economic challenges in the country.

    Abbaya wears can also be got at Al-Ameens place at 13, Lagos Road, Benson Bus-stop, Ikorodu, Lagos at affordable prices ranging from N5, 000 to N10,000 depending on the sizes.