The Nation Newspaper

Category: Small Business and Entreprenuership

  • Fairs: changing the frontiers for businesses

    Trade shows have become a marketing strategy in business, providing opportunities for business expansion. While it provides a platform for retailers to get new products into the market, it is also an avenue for prospective buyers to get value for the goods purchased at discounted rate, JANE CHIJIOKE writes.

    A Lagos resident, Shade Adeola could not hide her detestation for the rising cost of food commodities in the country. The harsh economy has made her more frugal in her expenses. With a family of  six,  feeding the home  has been quite challenging.  But the recent Food and Beverage West African exhibition, which held in  Lagos, appeared to be an opportunity for  her to get the best deals on food items. She has priced some  food stuffs at the open  market, which her N60,000 budget could not  address. But at the exhibition, she bought more items than she could at the open market.

    Among the items bought were three bags of 10kg Semovita at N2,700  each as against N3,000 in the open market;  a 5kg Ofada rice bought at N4,800 against its  open market  price of between N5,000 and N6,000. She also  bought a food blender at N13,000, a difference of N2,000 and N3,000 at open market price, among others. She was also introduced to new products, which she bought to have a trial at home.

    “Coming here for me was to have good discounts on items. Attending fairs has helped me to safe cost.  Though not much difference in the prices when compared with  open market prices, but such discounts have value.  At times with the varieties of products been displayed, you might be tempted to buy even more than what you bargained for,” she said.

    Likewise, Victor Effiong and his wife, who both attended the just concluded Nigerian Baby Fair at Muri Onukola Park, Victoria Island.  They had shopped for baby items at discounted prices, but one thing they valued most was the master classes  on issues around  pregnancy,  child health,  risks involve in having untrained nannies at home and a host of other information offered by exhibitors.

    These are some of the strategies  business owners employ to lure shoppers to patronise their products or services at trade shows. They get to pitch their services or products to a large crowd.

    Exhibitions or trade shows have become key strategy in business promotion. Many business professionals have integrated them into their multi-channel communication strategy to widen their reach to new, old and prospective audience.

    Used to influence sales, fairs provide  unique networking platform for both local and foreign participants. They boost foreign investments, promote locally made goods and afford shoppers the opportunity to shop variety of products at one venue and as well as have a face-to-face  meeting with the manufacturers of such products.

    International trade shows started  in 1977 with the inauguration of Lagos International Trade Fair being organised by the Federal Trade Promotion Board before  the Lagos State Chambers of Commerce and Industry (LCCI) took over in 1986. Since then, other states have  incorporated it to boost their commerce activities  beyond the country.

    It has also continued to attract more businesses to the fair. The  large  visitors that  attend the events can be said to be driving  businesses to break even and make more sales, hence the increasing number of exhibitors at trade fairs.  At the last Lagos trade  fair,  over 2,000 exhibitors, inclusive of the 200 foreign exhibitors that attended the fair. It had about 500,000 visitors.

    At the conclusion of the fair,  ex governor Akinwunmi Ambode  explained that  the variety of products displayed, showed that the country has a lot to offer to the global market, stating that the fair has built new networks, partnerships, investments, employment creation and increased  contribution to the nation Gross Domestic Product (GDP).

    This year, the fair scheduled to hold from  November 1-10th, would play host to 3, 500  local and foreign exhibitors with 500,000 visitors being expected.

    Meanwhile, at 2018 Abuja International Trade Fair, about 1,500 exhibitors and 1million visitors participated.  According to Abuja Chambers of Commerce and Industry (ACCI) Director-General, Tonia Shoyele,  the trade fair has recorded not less than 3,000 exhibitors and 20million visitors in the last 12 years. A continuous increase in participation by business owners is applicable to all other international trade fairs, organised by different states in the country.

    Unlike in the past where trade shows were more or less a function of  state governments, which periodically organise them,  it has gained momentum that hardly a month passes by without exhibition being conducted around the country.  Individuals, banks, hotels, more exhibition companies,  international and local private sectors, among others, now hold fairs, making it almost a frequent business activity in the country.

    It is believed that its value goes beyond the industry sector of the event as it plays a vital role in expanding the economic gains of the foreign participants and boost the visitor’s economy through local and international visitations to the fair. For instance, transportation, hotels, retail and restaurants are direct beneficiaries of trade fairs.

    To have more market access at trade exhibition fairs, most business owners  make quality preparation to ensure that they get the best return on investment. For instance, having more volume of products, creating more publicity of their presence at the fair, opting for space that seems conducive to display their products and having more workforce to attend to customers at the same time.

    Also, they treat shoppers to free tasting of products, practical sessions, discount prices, use canvassers to market products and music among others to endear their products to shoppers.

    Indeed, trade fairs create opportunities for business growth. Some of the exhibitors spoken to affirmed that fairs have  expanded thier market base.

    “There is always a good turnover for me at any fair I attend.  I do sell at least 60 per cent of my products at most fairs.  At  one  of the trade fairs I attended, I made sales of N450,000 because I had customers, who also bought in bulk from me to resell,” said Adesua Steven, a dealer in makeup accessories.

    She noted that though the open competition at fairs make it more challenging  to persuade shoppers to buy  product, “but still, if you can market well,  you will be happy you attended,” she added.

    An exhibitor at the just concluded Nigerian Baby Fair, Mrs Chika Nwuje, noted that the benefit of fairs have been tremendous on her business. Her submission is drawn from the several fairs she had participated in  the past.

    “The business exposure you get is awesome. The after effect of the exhibition is always positive. You get calls, people asking for your service. Some would even traveled down from far distances just to come to you and by extension, your market base gets expanded,” she explained.

    For Chioma, who introduced an already made stew in  sachet at the  Food and Beverage West African exhibition,  noted that  it was well received by consumers and she made much sales at the fair. She added  that  the reception she got encouraged her to continue in the business.

    Similarly, an international exhibitor at this year’s Food and Beverage West Africa, Serge Kponou, from Benin Republic, explained that doing business with Nigerians has been a long desire for him, owing to the fact that the 200 million population offer a viable business opportunity for him. Having established sales partnership with local distributors, he  expressed confidence that his participation at the fair has paved the way for him.

    For an exhibition to take place, at least five stakeholders would be present: the event organiser; the industry sector(s) which the exhibition represents; the host; the exhibitors and the visitors. These last two participants comprises of shoppers, distributors, retailers and prospective business men.

    “All stakeholders in the exhibition sector have vested interest. They evaluate the fair from different perspectives to ascertain the impact of the fair their business and this revolves around profit, sales, exhibitors and visitors’ satisfaction. I must say, most times it has always yielded a positive result, hence the more businesses participating in exhibition fairs,“ said Jide Martins, a trade fair exhibition organiser.

    According to the President of the LCCI, organisers of the annual Lagos International Trade Fair, Mr. Muda Yusuf, exhibitions or trade fairs are important drivers of the country’s economy.

    Speaking on the economic value of the Lagos Trade fair, Yusuf said:  “trade fair offers opportunities for businesses to showcase what they have to both domestic and international audience.  It has helped to project our locally made goods to the outside world as it accounts for percents of products been displayed at the fair.  It has also helped to attract foreign investors into the country and has also provided opportunities to develop joint ventures.

    He said trade fairs  or exhibitions creates an Avenue to build trust. He summited that such marketing channel is the best way to do partnership business as it inspires more confidence. “There is a big difference in seeing the person physically than relying on e-mails or any other social media platforms which is risky. Even with the digital age, face to face marketing still remains relevant.”he said.

    For some business owners, trade exhibition is quite an expensive invtestment for the short period which fairs last.

    On the part of the organisers, putting up an exhibition is capital intensive. The cost of venue, publicity, security, logistics, sourcing for sponsors and exhibitors are some of the areas requiring huge financial input.

    For instance, a Co-organiser of the Agege Mega fair, Mrs Bukola Adedeji, lamented that the N5 million invested in the two-day event could hardly sustain the hosting of the event.

    Buttressing her submission, Yusuf revealed that it cost over N200 million for the LCCI to stage the annual Lagos International Trade Fair, a 10-day exhibition. Also, providing adequate security with the unfavorable wellbeing of the economy are parts of the challenges the fair faces.

    Similarly, the project director, Nigerian Baby Fair, Tolulope Olorundero, disclosed that her firm invested over N20 million in the just concluded Nigeria baby fair held at Muri Okunola Park, Victoria Island.

  • How to boost earnings from hibiscus flower

    AgroEknor International (AEI), an agricultural and commodity export trading business, is reducing poverty in rural areas, creating  jobs and boosting women’s income through hibiscus flower, DANIEL ESSIET writes.

    Widely known for its lush red petals and a combination of sweet and tart taste, HibiscusSabdariffa, commonly known as the hibiscus flower, is used for tea, medicine and animal fodder, among others.

    Due to its diverse use, the dried hibiscus flower, known in local parlance as zobo, has enjoyed an increase in demand from European, Asian and North American clients. Poor farmers and producers living in rural areas make up 75 per cent of the hibiscus cultivating population. However, they lack access to crucial input and services.  Most of them are contract labourers working for firms which supply input and start-up capital, the raw materials and collect harvested and semi-processed hibiscus flower.

    One of such firms is AgroEknor International (AEI), an agricultural and commodity export trading business based in Abuja. The firm has invested in farmers in Kano, Katsina and Jigawa states, a region with a tradition in the cultivation of quality hibiscus flower. The company provides agricultural inputs and services to farmers. One of the beneficiaries is Alhaji Idris Abubakar, a contract farmer engaged by AgroEknor.

    He cultivates a 5,000-hectare hibiscus farm in Dambatta, Kano State.  In a hectare, he makes at least N50,000 return on investment of N250,000. He is not alone. Life has changed for Abdullahi Tawal, who cultivates hibiscus flower on a 1000-hectare farm at Dutsima Local Government Area in Katsina. His income has increased thanks to AgroEknor contract farming project to improve the hibiscus flower industry. He has built a house and is married. To them, the support has helped farmers to capitalise on an untapped market opportunity – growing hibiscus.

    The company works with people of all faith to ensure that they have the security, livelihoods, and rights they need to live life to the full.

    The company is building particular expertise in empowering poor producers to improve and process their goods, which it offtakes and export.

    Director, Operations, AgroEknor, Adedoyin Adesanya, said hibiscus flower would be one of the biggest areas of opportunity for agro entrepreneurs in the next 10 to 20 years.

    He said the government and the private sector should understand and harness the potential of the flower as a money spinner. He identified a number of challenges for small businesses seeking to make money from hibiscus to include application of internationally- recognised safety standards and knowledge transfer.

    According to him, hibiscus should  be  a major  focus area for government  with functional beverages and syrups as having particular potential for hibiscus products and other derivatives.

    He said the company engages in collection, cultivation, harvesting, processing, and marketing of hibiscus in Europe, Mexico and the United States.

    He said hibiscus is a potential crop to fuel economic growth due to huge market demand from overseas countries and reasonable prices. Additionally, the crop can withstand many of the climatic changes that destroy other crops.

    To thrive, he said small producers of hibiscus need to produce to high standards and have access to markets on favourable terms.

    The focus of the company, Adesanya explained, is to empower small-scale farmers to grow and commercialise hibiscus flowers. To this end, he said its contract farmers receive funding to expand production through access to training, credit and specialist tools. This has generated hundreds of direct and indirect seasonal jobs. Due to the success of the project, Adesanya said the firm has support from Nigerian Export-Import Bank (NEXIM) to enhance contributions to non-oil exports in Nigeria.

    This level of impact and scalability, he noted, would not have been possible without the assistance of the bank. The bank provides long-term concessionary funds to support its export project to help local farmers.

    To avoid rejection which most exports suffer, the company pays particular attention on the process of preparation, packaging and storage of the hibiscus flowers picked on its farms to reduce the possibility of contamination and assure clients of its commitment to high quality.

    He said the firm focuses on improving the skills of farmers and processors at different stages of the production process. This has resulted in better quality products and more efficient production methods.

    He urged investors to explore opportunities in the hibiscus export market.

    With N250, 000 investments, he believes investors can raise at least 20 per cent return after a harvest season.

    In general, he said free on board (FoB) export prices range from $1,500 to $3,000/metric ton (MT). He said the support for farmers, such as Abubakar has resulted in the creation of new jobs, mostly for rural women, and profits have been invested in their families’ welfare, children’s education and the development of small businesses.

    He explained that if one doesn’t have a good product, it’ll be harder to make a good profit. So make sure the agro producer ensure the flowers are grown in healthy soil, he said, adding that one also has to use organic materials, such as organic fertiliser.

    According to him, Nigeria   has the capacity to export a huge volume of hibiscus if the country is able to meet the requirements of importing nations.

    Founding Partner, AgroEknor, TimiOke said the firm has supported several agro entrepreneurs, including women in Kano, to work their way out of poverty, and that hibiscus sector has played a key role in reducing poverty and empowering women. The sector, he explained, is not only promising for the country’s economic development, but also contributes to the economic empowerment of women.

    He said Mexico accounted for more than 85 per cent of the import of the product from Nigeria.

    Mexico is now considered the second-most-obese country in the world, and the Mexican government has made it a priority to reverse this through education campaigns and new food nutrition laws targeting school children. He said organic hibiscus enjoy premium prices thanks to their benefits for health and the environment.

    He said the income generated from the business can help rural producers rise out of poverty and is likely to have wider long-term benefits.

    He lamented the ban placed on the export of hibiscus flower by Mexico, adding that the action had crippled the businesses and led to massive job losses.

    According to him, hibiscus flower farming is a business on the rise and the demand for it is increasing yearly.

    He saw the main challenges in creating an enabling environment for the farmers via training services, empowering farmers to produce in larger scale, to increase productivity, opening marketing and trade opportunities as well as supporting export.

    The Nigerian Agricultural Quarantine Service(NAQS) said the country generated $35 million from hibiscus (zobo) export. The Coordinating Director, NAQS, Dr Vincent Isegbe said hibiscus popularly called zobo has high commercial value that state governments could key into, which already Jigawa State has and now the largest producer of the commodity, followed by other states, such as  Katsina, Kano, Zamfara, Kebbi, Zamfara, Borno and Yobe.

    Meanwhile, states such as Edo, Kwara, could cultivate zobo plant due to the dry weather they have and would also boost their revenue generation.

    For the farmers of zobo who were registering in Jigawa and Kano states, he advised them to form organised hibiscus farmers’ clusters as seen in other crops and value chains, which would further increase the production and export volumes, thereby access government and donor interventions in capacity building and technical assistance.

  • SMEs engine room of economic development, says CWG chief

    The role of small, medium enterprises (SMEs) cannot be over-emphaised in economic development, an indigenous technology firm, CWG Plc has said.

    Its Ag. CEO, Adewale Adeyipo said the importance of SMEs in the process of social and economic development cannot be neglected, and its significance in the development of the country.

    According to him, it was summarised in the country’s third National Development Plan, 1975-1980; as the generation of employment opportunities, stimulation of indigenous entrepreneurship, facilitation of effective mobilisation of local resources including capital and skill as well as a reduction in regional disparities. Despite the slow growth of SMEs development, the impact of SMEs has been a known fact dated back as 1975, he said in a note.

    He said: “The Small Business and Entrepreneurship Council (SBE Council) statistics revealed that 99.7 per cent of U.S. (United States) businesses are SMEs. However, there are several barriers that the U.S. SME sector still faces, especially in commodities. The significant barriers to trading include insufficient access to finance, high transportation costs, tax laws, and rules, maintaining profitability, developing new products, language, and cultural differences.

    “Gaps like these signify no SME ecosystem is perfect, and they are required to keep evolving with time as new challenges arise. Despite the challenges in the SMEs market in the US, the sectors still contribute 47per cent of total employment.

    While in developing economies like India, the contribution of the SME sector to manufacturing output, employment, and exports of the country is quite significant. It is noted that regarding the value, the SME sector of India accounts for 45per cent of the manufacturing output and 40per cent of the total exports. India’s SME sector employs around 42 million people in over 13 million units throughout the country.”

    He said SMEs contribution is considerably high in economic development whether it is a developed country or a developing country, stressing that not only financially subsidised promotion is essential, but the strategic implementation becomes vital for sustainable development of the SME sector.

    “Strategic implementation takes care of financial aspects, human resource, marketing, research and development, technology, and corporate governance in the SME sector.

    SMEs in developed nations are not only relying on credit availability but technological innovation and infrastructural policies. Hence, it is critical for policymakers to create an enabling and sustainable environment as a bedrock for SMEs to flourish,” Adeyipo said.

  • Sahco boosts operations with equipment fleet

    Skyway Aviation Handling Company PLC (SAHCO) has acquired a fleet of new baggage tow tractors.

    Its Managing Director, Mr Basil Agboarumi stated this in statement.

    The tow tractors which have the capacity to convey up to 40 tonnes of baggage or cargo, he said is the best of its kind in aviation ground handling equipment in Nigeria.

    The tow trucks, which were manufactured in Germany, combine comfort, safety and flexibility with the latest technology. They can convey up to 40 tonnes of baggage and cargo on a level ground and up to 40 tonnes on wet or hilly surfaces.

    Furthermore, the trucks are equipped with a tier 4 compliant engine, which is to significantly reduce emissions of particulate matter and Nitrogen to near-zero level. This is to abide by the European Environmental Agency policy, thereby making it environmental friendly with little or no emission.

    In addition, the Baggage tow tractors are very user friendly, prevents hernia and is very durable and rugged.

    Apart from SAHCO’s massive constant investment in trailblazing Ground Handling Equipment, it is also  worthy of note that SAHCO’s team of engineers have manufactured various equipment with locally sourced materials some  of which include fuel bowsers, toilet bowsers and baggage carts to further boost client satisfaction and to ensure speedy service delivery.

    The company’s immense investment in technology which has resulted in excellent performance has received a lot of accolades from various bodies across the world. Recently, SAHCO was adjudged ‘The best Ground Handling Company in West Africa’ during the 5th Accraweizo 2019, and was awarded ‘The most Innovative Ground Handling Company in Nigeria’ by The League of Airports and Aviation Correspondents (LAAC).

    Also SAHCO won a Service Provider Recognition award in the Indian Sub-Continent and Africa from Etihad Airways. The Lagos Station was awarded the best in on-time performance and excellent service delivery thereby beating the Asia region who has always been leading.

    Speaking on the success of the company after the privatization, The Director, Development Institutions & Natural Resources, Bureau of Public Enterprises, Mr. Chigbo Anichebe, who expressed the agency’s excitement over the outstanding performance of SAHCO during a routine post-privatisation assessment tour in Lagos, recently, particularly observed that SAHCO was doing a lot better than expected nine years after it was privatised.

    SAHCO, formerly known as Skypower Aviation Handling Company Limited, was carved out of the liquidated Nigeria Airways Limited as part of the Nigerian Federal Ministry of Aviation’s Reform of 1996. On the 23rd of December 2009, SAHCO was handed over to the Sifax Group by the Federal Government of Nigeria, after a keenly contested privatization in which Sifax Group came first as the preferred bidder with the sum of N5.52 billion Naira. The company was listed on the Nigerian Stock Exchange on the 23rd of April 2019.

    SAHCO is involved in all the activities that takes place from the time an aircraft touches down on the tarmac to the time it is airborne, while also ensuring that Aviation Ground Handling services is carried out in an efficient, speedy and safe manner by deploying the right tools.

     

  • Heritage Bank, others growing MSMEs with funding, innovation

    The drive to encourage the growth of small businesses has led some banks, including Heritage Bank, to initiate some policies to advance the fortunes of the Micro, Small and Medium Enterprises, writes Financial Analyst Doyin Dare

    There has always been this talk about Nigeria reviving its real sector to boost the balance of payment situation, after the poorly conceived Structural Adjustment Programme of Nigeria’s military regimes sent the economy plummeting disastrously down the cliff. This renaissance is not driven by wishful thinking. It is powered by men, infrastructure, creativity, big ideas and, by extension, institutions that provide financial foundation for new businesses, oxygen to revive those that are dead and a shot in the arm for others that are on life support. Among such organisations, Heritage Bank occupies a front row seat in Nigeria.

    Heritage Bank,  is a financial services institution, one of the commercial banks licensed by the Central Bank of Nigeria, the country’s banking regulator, with a National Operating License, that offers Retail Banking, Corporate Banking, Online/Internet Banking, Investment Banking and Asset Management Services.

    Right now in Nigeria, there is a rush by business owners. An analyst argued that it decided to fill the vacuum left by Diamond Bank, which developed a lot of products for Small and Medium Scale Enterprises (SMEs), before it was acquired by Access Bank Plc last year.

    Another reason is that Heritage Bank made up its mind, ab initio, to help build, revive and support businesses. In July 2015, Ifie Sekibo  its Managing Director/CEO said: “Heritage Bank’s philosophy is to create, preserve and transfer wealth across generations. We are in the business to provide service per excellence and to grow with our customers.

    “We are here to help our customers create wealth for themselves, assist our partners preserve their wealth and guide them in transferring it to the next generation. We have specialised products that enjoy zero commission on turnover charges and high interest yields, amongst others for our partners. These products help us in supporting our customers’ businesses and taking them to greater heights.”

    In recent times, Heritage Bank was one of the major financiers of Golden Guinea Brewery, which, for 16 years, was virtually dead. Heritage Bank, Nigeria Export and Import Bank (NEXIM) and the Bank of Industry synergised to resurrect it. Anyone in his 60s is bound to remember with nostalgia that Golden Guinea Brewery was one of the major achievements of Dr Michael Okpara, Governor of Eastern Nigeria, who established it in 1962. The company went under in 2001 when its boiler exploded.

    The three banks  injected $10million life line into the company.

    Enterprises that have benefitted from Heritage’s assistance are: Vera Karris Accessories, Infusion Cakes, Niuma Boutique & Accessories, David Wej Global Ventures, makers of quality shoes; De-Vine, makers of fresh juice; Heart Affairs and Africanna Accessories, among others.

    Apart from access to finance made easy for them, many enterprises have also benefitted immensely from the exposure given to them through the innovative Heritage Bank’s “Sunday Small Market.” This is a market that brings together the bank’s Micro, Small and Medium Scale Enterprises’ (MSME) in the country to display their wares and crafts, which are locally made, and linking them with their customers.

    The maiden edition of the market opened in Lagos early last year and the bank has kept its promise to rotate the market to different parts of  Lagos. There are plans by the bank to make this service available to other commercial cities in the country. The Sunday Market is part of the several initiatives of Heritage Bank to bring visibility to its customers and provide a platform for the SME customers to showcase their products as well as interface with their existing customers and prospective ones.

    Heritage Bank does not restrict its activities to existing businesses or relationships with established business only. It believes in development of skills and manpower.

    As part of its ways of promoting entrepreneurs, the bank, in October 2014, held a two-day Business Exhibition at the Heritage Bank Training Centre, on Adetokunbo Ademola Street, Victoria Island. It was, according to the bank, meant to support the growth of Small and Medium Enterprises (SMEs) in the country.

    That year, Heritage Bank made possible some value-added offerings to participating organistions: business clinic, funfair, networking, MasterCard utilisation and opportunity for non-card holders to open their accounts. Google and Microsoft were on hand to guide business owners on how to take their businesses to the higher levels.

    In all the above, the multiplier effect is employment generation. In other words, if businesses have money through banks (like Heritage); they can expand and employ the jobless. Even young graduates with start-up funds can decide not to seek employment, but to be job creators. This is to say that Heritage Bank is among the financial institutions helping to reduce the army of the unemployed whose hands could otherwise have been the devil’s workshop for crimes.

    One other area that Heritage Bank is affecting the lives of the people is that it does not fail to explain the economic policies of government to the public in order to make those in the sectors key into them, grow and provide a platform for assistance from the bank.

    One of such explanations was offered by the Managing Director/CEO, Ife Sekibo,who admits that the Nigerian government has, indeed, done a lot in the agricultural sector, saying government has carried out various transformation agenda like Nigerian Incentive-Based Risk Sharing Agricultural Lending (NIRSAL) – a new innovative mechanism targeted at de-risking lending to the agricultural sector.

    He further said there is also the Growth Enhancement Support Scheme (GESS) which represents a policy and pragmatic shift within the existing Fertilizer Market Stabilisation Programme. It provides series of incentives to encourage the critical actors in the fertilizer value chain to work together in order to improve productivity, household food security and income of the farmer.

    There is also the Staple Crops Processing Zones which involves the establishment of commodity marketing corporations around each of the agricultural commodities. There is also the Central Bank of Nigeria’s single digit loans which also caters for SMEs in the agricultural sector. I believe all the government needs to do more is simply communicate more on what it is doing in the sector.

    Also, the bank has a way of selling Nigeria to the international community, a disposition that can help attract global investments. For example, Sekibo recently called for stronger partnership between Nigeria and Russia for technological and infrastructural development. He made the call at the sidelines of the just concluded 2019 Annual Meetings of the African Export-Import Bank (Afreximbank) in Moscow, Russia, noting that Africa and Nigeria in particular have a lot to learn from the Russian Federation.

    He said:  “If we carefully listen to the Minister of Foreign Affairs of the Russian Federation, Sergey Lavrov, he said the Russian investment in Africa had increased over the years to almost $20 billion in 2018. This clearly shows Africa and Nigeria especially need to key into these investments and get the best out of it. What we are seeing in Russia today is a testimony that they are giants in several areas of development and Nigeria has a lot to learn and gain and learn from them. Today Nigeria suffers from huge infrastructural deficit and a lot could be achieved from other countries of the world including Russia.

    “Russia is advanced in technology and in mining and I feel such cooperation with them will help Nigeria harness its mineral resources. We have huge mineral resources deposit in a lot of states in Nigeria and we can tap from the wealth of experience of Russia either in training of geologists or mining practices”.

    Also speaking on the importance of Nigeria being part of African Free Trade Area Agreement, (AfCFTA) Sekibo, according to a newspaper report, said it is important for Nigeria to quickly join forces with other African countries on this agreement being the biggest economy in Africa.

    He put it this way: “Nigeria today is seen as the Big Brother when it comes to the economy and African trade and we cannot shy away from such agreement. Such agreements give access to big markets and improved competitions among the member countries. I feel strongly that Nigeria has a lot to gain if AFCFTA is signed. I also believe if it is properly leveraged on, it will do us better as a nation.”

    Having achieved all the above, what are those factors that make the bank “tick” and able to cope with competition in the banking sector?

    Sekibo explained: “We provide innovative services. To us, innovation isn’t only about creating something new, it is also about taking something that exists and transforming it into something bigger and better. As a new entrant to the banking sector, our edge is that we are starting from where our competitors stopped while being able to avoid all the mistakes they made along the way. Having imbibed a culture of continuous innovation, I am confident of Heritage Bank’s ability to adapt to envisaged customer and sector changes.”

    Not a bank to rest on its oars, but in the habit of breaking new grounds, the bank’s MD Sekibo, explained: “Our plans for Heritage Bank are unfolding. It is a gradual process. With the acquisition of Enterprise Bank Limited, Heritage Bank is now a bigger and better bank. One of our major strategies is to work with our partners to grow their business and take them to the stock market. As a service organization in the business of banking, we must be in the stock market ourselves for us to achieve this feat. That is our direction.”

    And for the success of the MD himself, he told The Nation newspaper that his tools for success are people and good processes, most importantly, people, because people drive the processes. He added: “I believe that success is largely hinged on people who have been able to key into my vision, believing in such vision and turning it into a common goal. They are people who invested their time, efforts, ideas and energy in the business. They are people equipped with good business processes, and benefiting from lasting support from partnerships built over time.”

    Heritage Bank has come a long way. In 2012, the core investor, IEI Plc, through IEI Investments Limited, acquired the Societe Generale Bank of Nigeria (SGBN) license from the Central Bank of Nigeria (CBN). Having fulfilled all required criteria, the bank returned 100 per cent of existing SGBN account holders’ money to their owners. Heritage Bank Plc is a large financial services provider in Nigeria. Currently licensed as a national bank, it offers banking and financial services in the country, including the South, West, Southeast and the North. Its shareholders’ equity is worth at least $88 million (N25 billion), the minimum capital requirement by the Central Bank of Nigeria (CBN), for national banks.

     

     

     

  • How ex-banker made fortune in forex trading

    A former banker with Zenith Bank, Patrick Ogagbor, quit his job to become a full time professional Forex trader. Today, he is happy he made the decision, writes DANIEL ESSIET.

    Patrick Ogagbor is among the best professional FX(foreign exchange) traders in the country.

    A former banker with Zenith Bank, Ogagbor quit his job to become a full- time professional forex trader. His entrepreneurial curiousity encouraged him to try out new businesses. He believed the story that forex trading is a get-rich–quick business. He, therefore, did not hesitate to invest huge sum in it. Today, he is happy he made the decision.

    He began trading in the financial markets in 2003. Soon, he established himself as one of the most successful traders. How did the idea come about? His answer: “I love reading a lot, especially financial newspapers. That was how I heard of Forex trading back in 2003,’’ he said.

    While still working with the bank, he researched on forex.

    He said: “Through research, I discovered that trading forex was by far the largest and biggest market with a daily volume of $5.4trillion, that passes via the market. I thought to myself for a second, which industry as at 2003, in the financial business world could do that kind of volume of transaction?  I found none. So the question for me was how can I access this market? Because if you want to invest in anything, you want to be sure of its strong liquidity first.”

    Ogagbor added: “My startup capital was $200. In 2007 I grew that money to $5,000. My trading then was part time and not full time; so as soon as I made a profit I withdrew and used it for other things. I was basically trading for income till 2016 when I quit my full-time bank work to focus on trading full time.”

    He has gone from his little begining to having many clients and generating thousands of dollars. Moreover, after recording the success, many of his friends and family members began to entrust their money with him in forex trading.  For him, the business is a kind of entrepreneurship.

    Ogagbor has developed a sound strategy, creating a competitive edge and managing risks.

    His approach has worked well. He has been using it to drive major profitability from FX for years. Throughout, he analyses the strategies of the world’s greatest FX traders.

    He provides the foundation one can use with the right combination of discipline, original thinking and the will to win.

    Ogagbor said: “We have put in place defined world-class structures, for any investor to take advantage of. These structures range from copy trade, signal services, fund management and online training services, which you have to subscribe to for a fee. The worth in this case is seen in terms of structuring and processes in place.”

    Whether one is new to trading Forex, or a seasoned trader on the currency markets, Ogagbor’s approach is to make them successful in the Forex market.

    He told The Nation that many Nigerians who trade forex have not been trained to appreciate the reflexivity  in judging the financial markets.

    His trading philosophy for building long-term returns revolves around preserving capital and then aggressively pursuing profits when trades are going well.

    He believes market perceptions help determine price action as much as pure fundamentals. His greatest strength is seeing an opportunity in every challenge and finding solutions where others would give up. He trades only when the timing is right for a trade and when the odds are on his side.  The   strategy incurs less losing trades, thereby, preserving his capital and keeping consistent profit gains.

    He said what prospective traders need to understand is that trading is a discipline.This is because it is a long-term game of probabilities, one will win some trade and  lose on some, but as long as one is disciplined enough to stick to a trading strategy, not being emotionally attached to losses, one would make more winning trades than losing trades and net in a profit.

    His point is that traders must build seemingly foolproof trading strategies and techniques that work to consistently turn a profit each month in trading FX.

    He provides training in all aspects of trading, from demystifying crypto currency to working with Nigerians to change their mindset towards success.

    He also run introductory workshops and seminars for people who are looking to become financially independent, and these events focus on equipping attendees with the necessary tools to play an active role in changing their financial circumstances.

    He believes profitable and consistent trading requires a lifetime of learning, as opposed to a fixed period of training offered by many other educators.

    Becoming a successful trader, according to him, requires hands on, practical experience with real cash and live markets, coupled with the necessary mindset to handle stress and confidently make decisions, and all the courses are geared towards developing these practical, applicable skills.

    His failures: “In Forex trading you only learn and keep learning. It is a constant learning process all the time never ending. Your failure in trading simply means that you are yet to master the method you are using or you have been thought.”

    He stressed: “Please by all means, get a good mentor and never go into the market alone or you will get your figures burned big time.

    He is satisfied with the business: “You must love what you are doing. If you are only trading because you of the money, you will be disappointed because trading forex is full of challenges. But if you love the art of trading, this singular factor will bring all the satisfactions.”

    He is proud of his accomplishments so far. His words: “Like in any other career or profession, you have to put in the time and effort. Trading in Forex requires a full-time focus, void of distractions. Your mistakes, disappointments, bad decisions only make you better trader at the end of the day, if you don’t give up and you hold on; learn from it and practice constantly till you succeed. Avoid negative mind people, and focus. See trading as a life-time career, because it is, if you have mind up your mind to toe this line of professional, then give it your 100 per cent  attention and all. Life is full of challenges; the challenges are what make life interesting so it is with trading Forex. You can be the best forex trader if you are diligent, patient, hard working in terms of putting the time and effort with consistent practice.”

  • Group canvasses startups’ role in Niger Delta growth

    Achieving the Niger Delta’s twin goals of ending extreme poverty and boosting shared prosperity will require unprecedented efforts by the government and the private sector to unleash small business-led growth. Innovation leaders are on a campaign to get organisations to support startups growth in the region, DANIEL ESSIET reports

    Even in an age of globalised free trade, some states in the Niger Delta have remained  outsiders in the growing startups revolution.

    This was of  concern to Convener, Startup South, Uche Aniche, who lamented that the number of startups has been  declining for decades.

    As the momentum builds, Aniche wants the government  and the private sector to seek ways to help businesses grow profits, invest in the region and create good jobs.

    For him, if youths from the Niger Delta are to enjoy the same increase in living standards like other parts of the country, the economy of the region expand in employment, make its workforce more competitive, and accelerate productivity growth that is driven by innovation and higher-value goods and services.

    Aniche said concerted efforts to help  startups  in  the area  explore  economic  opportunities will build general confidence that encourages investors, startups  and would-be entrepreneurs to focus their energies on  developing the region thereby  creating a positive cycle.

    Reaffirming its commitment to supporting entrepreneurship as a key driver of growth and development, Convener, Startup South, is organising a startups summit in Uyo, the Capital of Akwa Ibom State.

    It will be attended by founders, innovators and investors from across Nigeria to discuss technology and startup trends and challenges facing startups growth in the region.

    Themed: “Unlocking the Next 60 Million” will be held from October 29 to November 2 and will feature keynotes, ministerial panels, master classes and boot camps, while providing invaluable networking opportunities for participants in over 60 sessions by diverse organisations and individuals.

    Major highlights will be the participation of at least four governors from the region, who will hold a joint session to be streamed live by a partner television channel.  There will also be a pitch session which has seen past winners raise over $400,000 in investment capital over the past four years. The pitch session will also be streamed live.

    Anichie said: “Over the past five years, we have worked hard to make the conference a driver of conversation that will boost economic growth in the region leveraging technology. This edition promises to see lots of improvements with participation from more diverse stakeholders. The Team is excited at the level of support StartupSouth5 Uyo is receiving from stakeholders across the regions and Nigeria and we can’t wait to welcome participants to the best edition yet.”

    One of the main partners, Main One described the event as a critical tool for the diversification of the Nigerian economy, especially the region which is over-reliant on crude oil.

    Congratulating the organisers of the StartupSouth5, Chief Executive Officer of Main One, Ms Funke Opeke explained: “Main One’s support for the start-up business community in the Southsouth/Southeast is predicated on its belief that startups and tech will be the engine for the economic development of Nigeria.”

    “Over the years, Startup South conference has displayed an unwavering commitment to this conference specifically designed to help grow and sustain SMEs in the Southsouth/Southeast.

    “As Main One expands the reach of its services beyond our landing point in Lagos, we recognise the potential of new ecosystems such as #Startup South in growing the Nigerian economy and creating jobs and are eager to lend support. Our focus is on deploying the infrastructure services that enable startup companies to thrive and this is the reason for our partnership with the #Startup South,” Opeke said.

    On its part, the financial technology company, Riby, which is focused on helping Nigerians achieve financial stability by empowering cooperative banking with the use of efficient technology said it was delighted to partner with #StartupSouth5 as it will help it deepen its footprint in the region.

    “Through this partnership with Startup South, we aim to extend our services to co-operatives, potential partners and stakeholders in the Southsouth zone of Nigeria. Cooperatives are vibrant here and we are excited at the opportunity to introduce our Riby Co-Banking product into the market,” said Riby’s CEO, Abolore Salami.

    The founder, Start Innovation Hub, Uyo, Johnson Hanson, is one of leaders of the campaign to mobilise entrepreneurs with business ideas that can transform  communities to take centre stage at the summit.

    He  said the Twitter community has placed Uyo as the software developer capital of the country.

    This is because of the opportunities linked to developers working with startups and creating solutions in the mobile technology sector and other areas.

    According to him, startups in the area have been drivers of  growth and job creation.

    He  stressed that there is need to  support business incubation centres.

    Given the benefits of fast-growing startups, Hanson said support for small enterprises has emerged as a top priority and that the government needs to work with hubs to play critical roles in identifying young, growth-oriented, and technology-enabled entrepreneurs.

    According to him, they are the backbone of economies, and, by providing new solutions to development, they can also be important drivers of sustainable and inclusive growth.

  • Transforming lives

    Co-founder, Ritetrac Consulting Nigeria Limited, Mrs Ojiugo Ajunwa, is passionate about sharing knowledge and supporting people to reach their goals. She trains professionals from various fields to be change agents, writes DANIEL ESSIET.

    IF there is anything that entrepreneurship has taught Mrs Ojiugo Ajunwa in the past few years, it is that Nigerians are longer affected by boundaries. Thanks to the internet.

    Mrs Ajunwa, co-founder, Ritetrac Consulting Nigeria Limited, earns six-figure yearly coaching people to use their gifts to create profitable businesses.

    The mother of two helps entrepreneurs to build and launch online businesses so they could make extra income. She has achieved success using online platform to bring innovative digital products to market and enable consumers to be part of positive change.

    How did the idea of her business come about?

    She said: “We saw a gap 11 years ago in the professional management capacity building space, especially project management and business process improvement training consulting space. With these two ideas, we kickstarted our organisation in January 2008.  Today, she is a success story exploring opportunities in the knowledge industry. She has been in the business for about 12 years.

    She explained: “We actually didn’t start with much money, but tasked our brain with coming up with our own conceived conferences and workshops, which was basically funded by stakeholders in any industry that we may need to impact. We also leveraged the use of internet, working online to gain visibility, authority, popularity and relevance through our blog career and business mentor so down the road the blog sent business and we were able to rent a small office space to kick off our operations.”

    She continued: “We run a lean organisation of three permanent staff and 36 contract based staff which comprises mainly of consultants and trainers across Nigeria and in the diaspora.”

    But she later had a problem. “Our main failure was not segmenting the market. We focused on just one service to one target market. So, over the years, we offer virtual consulting and training classes at different price points to ensure sustainability. The hotels and other rented facilities were not kind at all. In fact, that is the major set-back for new beginners that I see. Thank God for the advent of virtual offices and spaces.’’

    Her advice for young entrepreneurs? “Ensure that you have clarity of purpose on the business you will like to start. If you can have a clear picture of where you want to be, then start taking those baby steps, which include researching the market, creating your minimum viable product, testing this out in the market as quickly as possible, getting your results and evaluating if you should go with this particular service or product. Also, don’t over analyse things.’’

    In  20 years, she sees herself as an Impactpreneur, who will be touching women and youths especially and encouraging them to step up with their investments.

    “For our business, I see our stage enlarging to Africa, especially where we can provide quality virtual or in-person consulting and training services where ever you may be. The world needs us to build capacity in Africa,” she said.

    She stressed the importance of defining dreams and taking action daily to make them a reality.

  • Opportunities in Blockchain

    Blockchain, a technology that uses online distributed ledger, is creating jobs. Stakeholders speak on the opportunities in the subsector on the sidelines of a MeetUp forum in Lagos, DANIEL ESSIET reports.

    Blockchain, also described as distributed ledger technology (DLT), is changing the economy by making transactions more efficient and reliable.

    This is because it helps organisations and individuals organise data into blocks, which are chained together in an append only mode. The system enables recording of interactions and transfer “value” peer-to-peer, without a need for a centrally coordinating entity.

    Organisations are deploying the technology to speed up transactions.

    This has created jobs opportunities for Nigerians.

    Founder/coordinator, Blockchain Nigeria User Group, Chuta Chimezie, said Blockchain technology helps to maintain and verify digital records in “blocks” that can be shared between various parties.

    Also called “distributed ledger technology”, ledgers can be updated instantly in any  location. The information can never be erased.

    Chimezie said Blockchain is among the most sought-after abilities workers will need in the future.

    He said the development of Blockchain distributed ledgers for businesses is one of the fastest-growing jobs.

    To take advantage of such opportunities, youths must acquire skillset in programming languages. According to him, for Blockchain technology to gain traction, it will require more developers to acquire the skills to work with the technology. For the moment, he said developers that do have experience in the field are in high demand. He said there are jobs for Blockchain project managers, engineers and web designer.

    He added that people with experience in specific Blockchains are in higher demand.

    He said local firms are posting a plethora of Blockchain jobs, but there is a dearth of talents to fill them.

    The Managing Director, Jelurida Africa DLT, Adedayo Adebajo,  said the organisation is empowering Nigerians in viable and feasible business ventures they can engage with the use of the Blockchain.

    Aside conferences, he said Jelurida teamed up with the Nigeria Blockchain Alliance (NBA), a sub-division of the Cryptography Development Initiative in Nigeria (CDIN), to organise a Campus Blockchain Hackathon.

    The objective, he explained, was to engage the academic community on the importance of Blockchain technology, its relevant use cases and more specific, its adoption for enterprising solutions.

    The first of the campus hackathon sponsored by Jelurida was held last year in Kwara State University.

    According to him, it was a delightful moment to witness, as the enlightened young minds were able to create amazing and relevant use cases for the Blockchain technology. Hackathon is one of the many platforms that Jelurida is employing to create technological awareness and to make Blockchain technology popular in Africa.

    The second campus hackathon programme took place at the Ahmadu Bello University, Zaria. The programme was held, in collaboration with ABU developers (ABUdevs) and KadICT Hub. He said  the students were exposed to the use-cases of the Blockchain Technology and enlightened on creative and innovative solutions that can be worked on using the Blockchain technology, especially ideas on governance (E-voting), agriculture, education and real estate.

    He said students were made to think creatively about how Blockchain can be used for financial inclusions and services in their schools.  Ideas and Blockchain based solutions were also generated and pitched by the students.

    He said the organisation is promoting activities to generate business ideas from startups and small businesses towards the goal of a decentralised and transparent ecosystem.

    He said his organisation has developed training programmes to enable Nigerians benefit from opportunities emerging from the sector.

    His words: “There are lots of available jobs in the Blockchain space, but there are not enough of people to apply for them as the current graduates aren’t equipped with the experience required.”

  • Making a fortune in hair styling

    From being jobless, Ngozi Vivian Nkadi has become an employer via hair styling, reports Daniel Essiet

    Ngozi Vivian Nkadi’s dream was to get a well-paying job. That was not to be for the Business Administration graduate of Delta State Polytechnic, Ogwashi-Uku, Delta State.

    After staying at home for six months without making a head way, she decided to go into hair-styling, an area she loves.

    Ngozi said in school, she was helping her colleagues make their hair. Her first leap of faith was switching careers. Then she decided it was time to explore opportunities in hair business rather than stay home.

    To prepare for the next phase of her journey, she decided to go into  apprenticeship in the market and researched every aspect of the hair styling business. She spotted a gap in the hair care market, especially wigs and hair extensions. It was this discovery that prompted her to find out how she could create her own line of extensions, knowing that the quality and accuracy of the hairs’ look and feel would be a crucial selling point.

    After some time, she adjusted to make the hair look good. She also made braides. For six months, she  learnt the trade.

    She told The Nation the first three months were very tough, but she managed to push forward and continued to focus on the business. After a modest start, her popularity spiked, thanks to social media and word of mouth. Today, with two staff, she is happy. She attributed her success to perseverance and clients’ satisfaction.

    Watching other stylists work in the market kept her up-to-date and knowledgeable in a competitive market.  She was taken in, too, by how collaborative she was with the other stylists. She asked for their opinions and advice.  She tried her styles as well as new products.

    What challenges did you encounter? The first challenge was building her business. This is an ongoing struggle. She has to learn to manage her expectations as well as those of her clients. She has high standards for herself and for others

    Being a small business owner has given her the freedom to be who she wants to be. Seeing where she came from and believing that she will continue to achieve success, is very rewarding.

    The experience has given her a command, authority and confidence. She just wants to help people feel and be their best. What has she learnt from her successes and failures? She learnt that one must  have a vision about which one is and hold on to it.

    Her words: “Know what you’re great at and believe in it.” She love helping clients see something in themselves they’ve never seen before. She can update their style and create something new and more flattering for where they are right now. She loves it when clients look in the mirror and say, “perfect.”

    As an extension of the natural hair community, the wig and extension business will keep growing for as long as it remains profitable. And though mass-produced items threaten to overshadow the market, she believes the women running their small businesses still hope to inspire and cultivate their own loyal client base.

    Her business is her focus. She sees herself doing more. Her goal is to get as many women as possible and experience their hair beautiful.