Over 20 Indian firms are expected to attend the annual Information Technology Association of Nigeria (ITAN) and National Association of Computer and Software Companies of India, (NASSCOM) Business Summit, tagged ‘ITAN CEO-NASSCOM, 2012.’
The theme is Empowering and Resuscitating Local IT Entrepreneurs, via Local Content Development and Funding.
Minister for Communication Technology Mrs Omobola Johnson is the special guest of honour, while speakers include President of NASSCOM, India, Som Mittal and the Managing Director, Bank of Industry (BoI), Ms. Evelyn Oputu. Also expected at the event are the Indian High Commissioner in Nigeria and the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Ernest Nwapa.
“The objective includes the need to sustain the creation of a platform for local ICT organisations and seking collaborations among ikey ICT players
“The Local ICT companies deserve a lot of private and public sector support in terms of increasing their demand for goods and services supplied, and engendering adequate partnership to promoting local content,” said ITAN’s president, Mrs. Florence Seriki.
The Lagos Chamber of Commerce and Industry (LCCI) has blamed what it calls the ‘tight monetary policy’ stance of the Central Bank of Nigeria (CBN), for some of the private sector’s problems.
The policy, LCCI said, which had been in place
for almost one year, is taking its toll on the sector’s productivity and sustenance.In a statement by LCCI President Mr Goddie Ibru, the chamber said the interest rates of over 20 per cent were inimical to entrepreneurship development, wealth creation and employment generation.
The chamber urged the CBN to relax the policy and risk management guidelines to improve access to credit and reduce the cost of funds.
According to the chamber, this is more crucial than the proposed currency restructuring, which has generated much controversy but with no immediate impact on productivity and economic growth.
On the introduction of N5000 note, he said: “LCCI is aware that different economic policy has their own costs and benefits and to optimise the benefits, it is always important to be guided by the weight of merits and demerits of any policy reform, but key benefits of the proposed currency restructuring would reduce the cost of currency management such as printing, movement, storage, counting and distribution.
“It will enhance portability and facilitate business activities of some segments of the economy where a large amount of cash is required, especially in the informal sector. It will reduce risk/vulnerability of cash carriers as higher value of cash can now be easily moved around with less visibility.
“It will enhance the capacity of Automated Teller Machines, ATM, machines to store more money, reduce ATM stock out time and serve bank customers better and facilitate the return of coin in circulation as some of the lower currency notes are going to be converted to coins.
“Of course, coins are relatively durable and our history of apathy on the use of coins is largely due to value consideration not the physical properties.
“What is paramount at this time is for the CBN to relax its current tight monetary policy and risk management guidelines in order to improve access to credit and reduce the cost of fund in the economy. It is time to focus on efforts to stimulate the economy and promote growth,” Ibru said.
He said the introduction of higher denominations should maintain an incremental sequence of N2,000 to N5,000, in line with historical trends and international best practices, adding that the CBN needed to constantly ensure a proper alignment between the cash-less policy and its currency management strategy.
In a related event, the chamber has moved the 2012 Lagos International Trade Fair (LITF) to Tafawa Balewa Square, (TBS), Lagos Island, from its traditional trade fair complex ground along Badagry expressway.
Speaking with journalists , the Vice-President and Chairman, Trade Promotion Board of LCCI, Mr Babatunde Ruwase, said the change in venue was informed by the need to service exhibitors and visitors better given their experience last year.
According to him, the two major road construction and rehabilitation projects on the Oshodi-Apapa expressway and the Lagos-Badagry expressway created some traffic challenges for exhibitors and visitors last year.
“Since the construction projects are still going on, we decided to move to a new venue. The TBS and the adjourning Cricket Pitch have over 40,000 square metres of exhibition space, which is more than enough for the organisation of LITF. The highest space utilisation of fair in the last five years had been 35,000 square metres,” Ruwase said.
ABOUT 240 factories, with projected N140 billion turnover have been operating in the country in the past one year, the Manufacturers Association of Nigeria (MAN) has said.
Speaking during a stakeholders’ conference on the review of Common External Tariff (CET) in Abuja, MAN President Kola Jamodu said about 200,000 new jobs were generated within the period.
This, Jamodu said, has increased capacity utilisation of some companies from 47.50 per cent as at December 2010, to 48.93 per cent last year.
“This has increased manufacturing investment, as 240 new factories commenced operations within the last one year – with a projected turnover of N140billion, while some of our members have expanded their production base by as much as N100billion.
“In some sectors, capacity utilisation is as high as 70 per cent.”
Jamodu said with the right policy framework, the manufacturing sector will respond positively and blossom, adding that the private sector has done it and can do it again once the right policy framework is in place.
On the tariff issue, Jamodu said tariff is a veritable instrument that could be used to spur the revitalisation of the manufacturing sector, adding that despite the mileage achieved in the partnership on tariff, there are still some outstanding issues that should be addressed to get the desired level of growth and development of the real sector.
He said a careful study of the CET led to a compilation of the observed anomalies that we forwarded to the government.
He cautioned against the multiplicity of taxes, saying: “Despite the outcry of the business community over the prevalence of these taxes and levies at the three tiers of government, some agencies are still introducing licence fees and levies that constitute multiple taxation, and in some cases, arbitrary
“The latest addition is the imposition of licence and mandatory contribution to a trust fund by the National Lottery Regulatory Commission (NLRC) on our member companies carrying out promotional activities to boost their sales under the prevailing difficult business environment”.
Jamodu recommended that sales promotions should not be covered by the National Lottery Regulatory Act in order not to add to the cost of doing business in Nigeria, moreso as this cannot be in the spirit of the law setting up the lottery commission.
He added: “Tax administration should be coordinated. There should be effective implementation of Act 21 of 1998 on taxes and levies collectible by the different tiers of government, with a view to making them respect the law. There is also the need for a constitutional review of tax powers of each tier of government.”
He urged the government to reduce corporate tax rate to 20 per cent from the present level of 30 per cent to encourage investors in view of the various challenges experienced by manufacturers.
MAN Director-General, Mr Yinka Akande said, there was need for government to address the issue of multiple taxation suffered by its members across the country.
He urged members to seek better ways the industrial sector could grow despite the challenges.
He said: “Despite the not too friendly business environment, your
The Federal Government will not allow importation of “cheap palm oil to kill the local industry, Minister of Agriculture and Rural Development Dr Akinwumi Adesina has said.
He spoke in Abuja during the signing of an agreement between the ministry and 18 oil palm estates.
He said: “Our view is that the ECOWAS Trade Liberalisation Scheme’s Rule of Country of Origin provision should not be exploited to bring in crude palm oil at an unauthorised and ridiculously low price that discourages local investment. I want to be very clear on this: we will not allow imports of cheap crude palm oil that will undermine our palm oil transformation agenda as a country.”
Adesina lamented that in the late 60s, Nigeria was the leading producer and exporter of oil palm produce and for a better part of this period, the largest world producer, with the country accounting for 27 per cent of the global market of palm oil in 1961.
“Our production declined from 167,000 metric tonnes in 1961 to 25,000 MT by 2008. In the same period global production of palm oil expanded from 629,000 MT in 1961 to 33.3 million MT. The situation changed following the aberration caused by the discovery of crude oil in commercial quantity in the early 70s,” he said.
The minister disclosed that his ministry was engaging stakeholders in this regard to ensure their understanding towards supporting the establishment of local plantations, local production and processing.
He said the oil palm industry had a lot of potential, not only for making profit and creating wealth but also providing employment.
He stated: “Some oil palm companies, which are quoted in the stock exchange, are now the best performing stocks on the exchange. We want them to continue to do well. And in support of this, we are doing everything possible to promote the enabling environment that will ensure that investments in oil palm are sustainable and that the market remains competitive for all local investors.”
Recalling the fact that Malaysia, which is the second largest producer after Indonesia, collected its first improved nuts from Nigeria, the minister said Malaysia now earns $18billionn per year from palm oil production.
As a first step, Adesina said four million nuts had already been secured from the Nigerian Institute for Oil Palm Research, out of which 1,395,000 nuts capable of establishing 9,300ha were being made available to 18 estates at an average of 75,000-82,500 nuts in the first instance.
This, according to him, is to expand their holdings by between 500 and 550ha each while the balance of 2,605,000 nuts capable of planting 17,366ha will be raised by accredited outgrowers for distribution to farmers under the consolidated growth enhancement support for the oil palm value chain in 2013.
The Federal Government has begun moves to recapitalise the Bank of Industry (BoI) to ensure the availability of funds to local operators in the real sector.
Addressing reporters in Lagos, the Minister of State for Trade and Investment, Dr. Samuel Ortom, said the Federal Government was aware that funding posed a major challenge to private sector investors, adding that government has set up the machinery to recapitalise the bank.
He said President Goodluck Jonathan had directed the ministry to re-capitalise BoI in such a way that there would be enough resources for serious-minded investors.
According to him, in the course of building capacity for SMEs, it was discovered that one of the major challenges after training was funding which is being addressed through the Bank of Industry (BoI) and Central Bank of Nigeria (CBN).
According to the minister, boosting industrialisation and developing the manufacturing sector would help in resolving many economic problems in the country.
Ortom said the Federal Government has adopted a holistic approach to tackle the challenges faced by investors in the country and is willing to continue providing intervention funds to them. He however warned that government would not allow BOI to go down through the regressive actions of those who plan to misuse such funds.
“We are bent on transforming the financing of our industries to make them work, it is not just enough to borrow money and at the end you have nothing to show,” he stated.
He assured listeners that all sectors of the economy would receive due attention in terms of funding because it was necessary to encourage those who have the passion for creating employment and producing quality goods.
“Developed countries did not get to where they are today by importing, so we must encourage the local manufacturing industry and patronise made-in-Nigeria goods.
When we do this we would be recycling our resources and doing justice to ourselves and our children by securing the future of this country’s economy,” he said.
He said government would continue to partner with the private sector in the area of capacity building, stressing that it was mandatory for all industries in the country employing over five persons to register with the Industrial Training Fund (ITF) for training.
THE Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), National Automotive Council (NAC), the Lady Mechanic Initiative (LMI) and other stakeholders have begun talks on establishing world-class auto-mechanic business clusters, equipped with modern technologies.
A statement from the Assistant Director (Corporate Affairs) of SMEDAN, Levi Anyikpa, said the mechanic clusters are expected to employ hundreds of thousands of male and female technicians in auto repairs and maintenance.
According to the arrangement, SMEDAN would make available some of her Industrial Development Centres (IDCs) scattered across the country, provide entrepreneurship training, provide access to working capital and mentoring services to the prospective beneficiaries.
It said the National Automotive Council (NAC) and the Lady Mechanic Initiative (LMI) which already have some strategic sponsors and partners, are expected to provide the qualitative technical training to existing and prospective auto mechanics using ultra-modern technologies and facilitating the procurement of start-up technologies for the trainees.
Expected to be part of the collaboration are organisations such as; Nigerian Bottling Company, MTN Foundation, Peugeot, Tata, Honda, Mitsubishi, Global Fund for Women, Toyota Nigeria, RT Briscoe, federal Ministries, Departments and Agencies (MDAs), state governments, Foreign Embassies in Nigeria among others.
Speaking in Abuja during a visit by the Founder/Executive Director of Lady Mechanic Initiative , Mrs Sandra Aguebor-Ekperuoh, the Director-General of SMEDAN, Muhammad Nadada Umar, noted that for small and medium enterprises to achieve their optimal potentials in Nigeria, technological advancement must be embraced to full capacity.
He said the entrepreneurial opportunities that abound in the field of auto repair and maintenance should be exploited by all those involved in the business as there are so many potentials for development and job creation in the sector.
Unilever Nigeria has introduced two new seasoning to the Royco family – Royco seasoning powder for stews and soups.
Speaking at the launch of the products, the Marketing Director Mr David Okeme,said: “At Unilever, we continuously improve on our brands because we always want to provide our consumers with products that help them get the best out of life.
“With the new Royco seasoning powders, women now have the opportunity to enjoy the consistent superior Royco quality, as well as an irresistible aroma from their cooking.”
Assistant Category Manager, Savory, Aurora Monye said the decision to come to market with the new offering was in response to the consumers yearnings for affordable and more improved seasoning for cooking.
On what would be the impact of the new product on the fortune of the brand in the market, the Assistant Category Manager added that it would further increase the brand market share in the market and give it a competitive advantage.
“As a company, Unilever has always committed to what will bring the highest satisfaction to consumers at all level of the market.
After a research and survey, we discovered that the market is in need of another tantalised seasoning that would appeal not only to the people at the upper echelon of the market but also the mass market, hence the introduction of Royco seasoning powder for stews and soups,”
Two loyal consumers of the brand; Mrs Ogozi Egbochukwu and Mrs Rasheedat AbdulRasaq also spoke glowingly about the uniqueness of Royco among other seasonings in the market.
The management of Nigerian Stock Exchange (NSE) yesterday warned that it may withdraw the operating license of any erring market maker.
The Exchange also said it would deduct 10 per cent of total value of transaction engaged in by a defaulting market maker in the case of a less-impact breach.
Chief Executive Officer, NSE, Mr. Oscar Onyema read the riot act yesterday while speaking at a workshop organised by the Exchange on the ‘Market Making, Securities Lending and Short Selling.’
Onyema, who said the Market Making programme will be carried out in phase of limited securities at a time, informed the financial market community that the market will roll out the rest of the securities over a period of six months.
“We are going to roll out over a six months period. During that period, we are going to learn a lot.
There have been a lot of efforts that has gone into this. When it comes to the ability in lending securities, we know that AMCON will lend the credit. With regards to retail participants, we want to start with professional (institutional investors) to manage the risk and the process.
The whole idea at the end of the day is to improve the market quality. The primary market maker will be there to provide liquidity where you don’t have liquidity. By allowing a very symmetrical market there will be a lot of sanctions for defaulters” he added.
Also, joining the two Securities Lending Agents (SLA) Stanbic IBTC and United Bank for Africa (UBA) are First Bank and City Bank who have also gotten approval by the Securities and Exchange Commission (SEC) to operate as agents to the market makers.
For the SLA, they are expected to provide additional income and increase business volume in the market.
Explaining further details on how the programme will go, the Head of Transformation at NSE, Mr. Olumide Lala said the lower/upper trading limit will be increased from five per to 10 per cent for securities that get rolled out into the programme.
Lala, who noted that no ‘naked selling’ will be entertained in the operation of Market Maker on the Exchange, stressed that Covered selling will be allowed even as there will be no failed trade.
The market makers include Capital Bancorp, CSL Stockbrokers, ESS/DunnLoren Merrifiled, FBN Capital, Future Capital, Future View Securities, Greenwich Securities, Renaissance Capital, Stanbic IBTC, Vetiva and Capital and WSTC.
Among companies selected by the 10 Market Makers to act in the pilot scheme includes; PZ Cusson, Presco, International Breweries, Lafarge Wapco, Fidson Healthcare, Redstar, DN Meryer, Diamond Bank, Fidelity Bank, Nigerian Breweries, Guaranty Trust Bank and UAC Nigeria Plc.
The Market Makers programme, which will debut in the market on September 18 are expected to play a central role in the provision of two-way quotes (comprising of buy and sell prices) for the securities that they are making markets on. Leveraging the Securities Lending process, Market Makers will be able to borrow securities in order to settle ‘buy order imbalances’ from customers.
A ‘hybrid’ market, allowing both market makers to provide two way quotes and licensed broker/dealers of The Exchange to submit orders as is currently done, will be operated from the commencement date of this key initiative.
Moody’s Investors Service has said it may join Standard & Poor’s in downgrading the U.S.’s credit rating unless Congress next year reduces the percentage of debt- to-gross-domestic-product during budget negotiations.
Bloomberg report said the economy will probably tip into recession next year if lawmakers and President Barack Obama can’t break an impasse over the federal budget. It said the country’s rating would likely be cut to Aa1 from Aaa if an agreement on the debt ratio is not reached, Moody’s said in a statement yesterday.
Moody’s put the rating under review with a negative outlook in August 2011, when the US pushed back a decision on spending and raised its so-called the debt ceiling after months of political wrangling. S&P cut its rating to AA+ that month, blaming the nation’s political process. Treasuries rallied as investors ignored the reduction, with the yield on the benchmark 10-year note since declining to record lows and drawing the ire of investors such as Warren Buffett, the biggest shareholder of Moody’s, who said after the S&P decision that the US should be “quadruple-A.”
Access Nigeria in collaboration with the World Bank have concluded arrangement for a two-day National Jobs Fair.
The fair commences tomorrow at the National Theatre, Iganmu Lagos.
In a statement, World Bank said the event will serve as platform for the organiSations and potential employers to recruit young, skilled and competent employees into their workforce.
“A broad range of employers from various sectors of the economy such as Information & Communication Technology (ICT), Telecommunications, Banking, Insurance, Private sector, Media, etc. are expected to participate at the event,” it said.
The World Bank had in 2010, supported Access Nigeria programme during which Skills Gap Analysis conducted showed a distinct gap between what employers need and what they end up getting. It was discovered that most youth lack the fundamental skills required to succeed in the labour market, such as communication skills, cognitive skills and computer skills. This insight led to the formation of the Access Nigeria skills programme.
The programme has in the last two years assessed more than 3000 youth on globally-benchmarked fundamental skills for Information Technology-enabled services economy.
