The Nation Newspaper

Category: Features

  • Repositioning cassava to drive food security, economic growth

    Repositioning cassava to drive food security, economic growth

    Cassava is Nigeria’s second most important staple crop, involving over 300,000 stakeholders, primarily smallholder farmers. Despite its vast commercial potential, the market remains underdeveloped and fragmented, hindering food security and income growth. This report highlights ongoing efforts to reposition the industry through collaboration between government and businesses. DANIEL ESSIET reports

    The global cassava industry has experienced significant growth, driven by sustained demand from both domestic industrial consumers—particularly in the food processing and ethanol sectors—and international buyers, as reported by the consulting firm IMARC Group. The firm estimates that the global cassava processing market reached 319.9 million tonnes in the previous year. Looking ahead, IMARC Group projects the market will expand to 369.7 million tonnes by 2032, reflecting a compound annual growth rate (CAGR) of 1.4% from 2024 to 2032. This growth is attributed to several factors, including shifting consumer dietary preferences, the expanding range of industrial applications, supportive government initiatives, population growth, increased demand for gluten-free products, and innovations in cassava-based offerings, such as improved shelf life and more sustainable food supply chains.

    IMARC Group projects that the global cassava processing market will reach 369.7 million tonnes by 2032, with a compound annual growth rate (CAGR) of 1.4% from 2024 to 2032. This growth is attributed to evolving consumer dietary preferences, expanding industrial applications, supportive government policies, population growth, increased demand for gluten-free products, and innovations in cassava-based products, such as improved shelf life and more sustainable food supply chains.

    The report highlights that the key drivers of growth in the global cassava processing market are the rising population and shifting dietary habits in emerging markets. As demand grows for affordable and versatile carbohydrate sources, cassava-based products are increasingly sought after. Additionally, the expanding use of cassava across various industries—such as biofuels, biodegradable plastics, and animal feed—is fostering a favourable environment for market growth. The growing recognition of cassava’s nutritional benefits, alongside advancements in processing technologies, is enhancing consumer acceptance and further fuelling the market’s expansion.

    Supportive government policies and investments in the development of the cassava value chain, particularly in Africa and Asia, are playing a significant role in the sector’s growth. These initiatives are promoting sustainable agricultural practices while enhancing the infrastructure needed for processing and distribution. Cassava is vital to the gross domestic product (GDP) of many African nations, and its cultivation provides critical support for the livelihoods of millions, especially rural women and youth in the West and Central African (WCA) region.

    According to Statista, Nigeria produced nearly 63 million metric tons of cassava in 2021. The Nigerian government recognises the crop’s potential to strengthen rural economies and enhance food security. To this end, the government is encouraging the use of modern processing technologies, upgrading infrastructure for cassava transportation, and providing financial support to farmers. These efforts aim to improve both the quality and quantity of cassava production, while also facilitating the establishment of processing facilities to support sector development.

    Recently, the Nigerian Senate held a second reading of a bill proposing the mandatory inclusion of 20% high-quality cassava flour in the wheat used for flour production, whether produced domestically or imported. The Cassava Flour (Mandatory Inclusion in Flour Production) Bill, 2023, seeks to highlight the economic advantages of incorporating cassava into wheat flour, particularly in light of Nigeria’s current annual wheat import costs, which exceed $3 billion. Senator Saliu Mustapha (APC, Kwara Central), who sponsored the bill, emphasized the potential benefits of the initiative, noting that Nigeria is the world’s largest producer of cassava, with an annual production exceeding 63 million metric tons as of 2021. He argued that this policy would not only create a legal framework for the inclusion of cassava in wheat flour but also contribute to cost savings and provide significant economic benefits. Additionally, he pointed out that the ongoing Russia-Ukraine conflict has driven up global wheat prices, making the search for cost-effective alternatives even more urgent.

    The private sector has embraced cassava as a key driver of rural industrial development, aiming to enhance the incomes of producers, processors, and traders. This vision is supported by innovative research focused on improving disease resistance, promoting extensive propagation, and advancing phenotyping and molecular diagnostics. As cassava starch slurry gains traction among food and beverage processors, paper manufacturers, and ethanol distillers, demand for cassava in both domestic and international markets is expected to rise, boosting incomes. Additionally, the growing demand for modified starch in industries such as pharmaceuticals, cosmetics, food, paper, sweeteners, and chemicals further fuels this positive outlook.

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    Agbeyewa Farms, a privately owned agribusiness enterprise valued in the billions of naira and covering approximately 5,000 hectares in Ekiti State, exemplifies the sector’s growth. The Governor of Ekiti State, Mr. Biodun Oyebanji, has played a crucial role in facilitating the establishment of this initiative and has repeatedly expressed his commitment to ensuring food security within the state. Recently, he set a 2025 target for a significant increase in food production to meet the needs of Ekiti residents, with the broader goal of transforming the state into the nation’s food basket.

    In pursuit of this vision, Governor Oyebanji’s administration has committed to fostering agricultural growth by collaborating with agribusiness investors like Agbeyewa Farms and supporting young agricultural entrepreneurs. Furthermore, the 2025 state budget will prioritize agriculture and food security, focusing on welfare and infrastructure development, including road rehabilitation for farm access and the provision of electricity to support agricultural activities. He highlighted several ongoing initiatives, including the “Bring Youth Back into Agriculture” project, aimed at inspiring young people to pursue careers in farming. In addition, the government has partnered with a private sector company to provide digital tractor services to farmers, further modernizing agricultural practices and enhancing productivity.

    Aligned with the ambitious vision of BAO (Bring Agriculture Online), the proprietor of Agbeyewa Farms—a division of Cavista Holding—has made substantial investments in cassava cultivation in Ekiti. This investment is driven by the potential for various valuable derivatives derived from cassava processing. Currently, Agbeyewa Farms is harvesting approximately 380 hectares of cassava, which will be distributed across the South West region and other parts of Nigeria. A board member of Agbeyewa Farms and traditional ruler, Oba Dr. Sunday Aniyi of Erimope Ekiti, shared the vision that led to the establishment of the Agbeyewa Agric Revolution. He explained that the idea for Agbeyewa Farms emerged in 2021, shortly after the COVID-19 pandemic, as part of a broader effort to revitalise agriculture and enhance food security in the region.

    He stated, “The chairman of Agbeyewa Farms, John Olajide, hails from my community, and we had been in discussions regarding his business ventures in Nigeria. Both his father and I were quite insistent that any investments made in Nigeria should be directed towards Ekiti, specifically Ado-Ekiti. On August 6, 2021, we convened a community meeting in my kingdom to explore the possibility of acquiring land. At that time, our goal was to secure approximately 5,000 hectares, although our kingdom was not particularly endowed with extensive land resources.

    “There was also a meeting with the state government under Dr. Kayode Fayemi. So, it was like an investment meeting. Olabode Adetoyi was the commissioner of Agriculture. So, we all toured Ekiti, went to Emure, Ise and everywhere where land could be available. So, we came around this place, too. And finally, the government advised that they have agric processing zone around this corridor and that their intention is that big agricultural industries should concentrate around here, so that it is easy for infrastructure development and deployment, especially around the power corridor.

    “We have engaged some technical partners who accompanied John during the investment initiative from the United States. They are seeking a processing capacity of 120 metric tonnes, which will allow us to convert cassava into various by-products. It was recommended that a minimum of 5,000 hectares of land would be necessary for this endeavour. Consequently, the governor suggested that sufficient land is available in this region. Initially, they were allocated 3,000 hectares, which was later increased to 5,000 hectares,” Oba Aniyi further stated.

    The esteemed monarch also urged Ekiti indigenes living abroad to take inspiration from Olajide and return to invest in the state to alleviate hunger. “Indeed, there are numerous challenges that persist, but the primary deficiency in Ekiti is the lack of private sector investment, which is the main contributor to poverty in the region. There is nothing else. We have several universities and polytechnics in the area. If it is skilled labour you require, we possess it. Furthermore, the environment is conducive for work. Despite concerns regarding the security situation in Nigeria, I can confidently assert that Ekiti remains one of the most peaceful and secure states. No community in the world can guarantee complete security; there will always be some disturbances due to the presence of ill-intentioned individuals.”

    In discussing the progress made thus far and the future aspirations of an agricultural initiative that has been operational for approximately three years, the Executive Director of Agbeyewa Farms Limited, Mr. Oscar Seyi Ayeleso, articulated the vision of establishing the premier agro-allied cassava processing facility in Africa. He stated, “The area you see today will soon transform into a cassava farming estate. We are cultivating 10,000 hectares and have our agro-allied company in place. Our processing will encompass a wide range of products. We aim to create a farming estate unparalleled in Africa, comparable to Omnicane in Mauritius. Agbeyewa is not just an ordinary farm; it represents a revolution.”

    Mr. Ayeleso emphasised the significant investments Agbeyewa Farms has made in cassava cultivation, with approximately 380 hectares currently being harvested. He highlighted the importance of this harvest, noting that the introduction of these hectares into the market in the South-west region and across Nigeria will have substantial implications due to the diverse range of cassava by-products such as garri, fufu, starch, and flour. Ayeleso further discussed the farm’s contribution to employment and the local economy, stating that over 500 individuals are currently working at Agbeyewa Farm. The direct workforce exceeds 200 employees, a notable increase from the initial five. Additionally, about 400 indirect workers are involved in various tasks, such as cutting stems, harvesting roots, planting, and preparing ridges. These employment opportunities have significantly improved the financial well-being of many families and fostered the establishment of local businesses, including food vendors and other trades.

    With over 1,000 hectares cultivated this season, Agbeyewa Farms is poised to become the largest cassava plantation in Ekiti State and the broader western region. The farm aims to expand to 3,000 hectares soon, with plans to reach 5,000 hectares by next season and an ambitious target of 20,000 hectares by 2026.

  • Giving pediatric cancer survivors hope

    Giving pediatric cancer survivors hope

    Succour has come the way of pediatric cancer survivors and their parents. This came on the strength of a pediatric cancer care partnership between Beiersdorf Nigeria, maker of skincare brand NIVEA, and the Dorcas Cancer Foundation, a non-profit organisation. Under the partnership, pediatric cancer survivors can go back to school, courtesy of over N16.4 million lifeline by the skincare company to cater for tuition, uniforms, books, and other necessary fees to keep the children in school while relieving their parents of the huge financial burden of their children’s healthcare and education, Assistant Editor CHIKODI OKEREOCHA reports

    Ever wondered why most Nigerian children hit by cancer miss school during their treatment? Or sometimes find it extremely difficult to go back to school once they have defeated the deadly scourge?  Well, the financial strains that their cost of treatment put on their parents’ finances are, understandably, too heavy to bear.

    This means that any social initiative or intervention that will relieve parents of pediatric cancer survivors of the huge financial burden placed on them by their children’s healthcare and education while also helping the cancer survivors get back to school is nothing short of heartwarming.

    It could not have been otherwise, considering that under a Corporate Social Responsibility (CSR) initiative, powered by global skincare company Beiersdorf Nigeria, over N16.4 million was recently donated to The Dorcas Cancer Foundation, a non-profit organisation, to help kid cancer survivors get back to school.

    This gesture by Beiersdorf Nigeria, maker of skincare brand NIVEA, The Nation learnt, was in line with the company’s decision to rev up its sustainability business strategy with a heartwarming show of care and compassion for pediatric cancer survivors.

    How the company raised the N16.4 million lifeline for pediatric cancer survivors in Nigeria, following its partnership with the Foundation, is a study in the prioritisation of care for under-privileged and vulnerable people in the society, particularly children.

    Through a percentage revenue-based financing model, Beiersdorf raised the said amount from its in-store activations campaign that ran from September through November 3034, across top five retail chains, where a sum of N300 (Three Hundred Naira) was set aside to be donated from every NIVEA product sold within the period.

    The financing model, which the company tagged ‘Back-to-School’ Fund, will cater for tuition, uniforms, books, and all the other necessary fees to keep the kids in school. This year’s goal, The Nation learnt, is to get 15 kid cancer survivors back to school for all three academic terms.

    “This is not just about money, but about making a real difference, helping more kids beat cancer, rebuilding dreams, giving hope to the vulnerable in society, and relieving the parents of these cancer survivors of the huge financial burden of the children’s healthcare and education,” Country Manager, Beiersdorf Nigeria, Oladele Adeyole, said.

    Adeyole, while expressing the belief that the company’s donation will go a long way in helping kid cancer survivors in the country get back to school, said Beiersdorf is a company that believes in being a positive force for community good.

    This, he explained, is the reason behind the company’s Sustainability Agenda called ‘Care Beyond Skin’, which aims to promote its social and environmental commitment to foster a more inclusive society and create positive environmental impact. He added that the partnership with The Dorcas Foundation is just one of the ways it is impacting the lives of people in the markets in which it operates.

    Adeyole put the ‘Care Beyond Skin’ campaign in perspective, saying: “We care for people’s skin, and we are proud to be doing that. But beyond that, we also care for people in our community, especially the underprivileged in our society.

    “That was what brought about the whole Cancer Care partnership, and we approached The Dorcas Cancer Foundation who we know are already doing some very good work in Nigeria in that space, especially in childhood cancer where they are trying to make sure that the survival rate is high, compared to developed countries. We are extremely proud to have that kind of partnership with them.”

    The Beiersdorf Nigeria Country Manager added that the partnership between his company and the Foundation has been fruitful. He also commended other trade partners, including Shoprite, JustRite, Market Square, Next Cash & Carry, and Hyper City who, he said, yielded their platforms to ensure the success of the initiative.

    Expectedly, the Founder, The Dorcas Cancer Foundation, Dr. Adedayo Joseph, could not hide his excitement over the gesture. Dr. Joseph, a Pediatric Oncologist, thanked Beiersdorf Nigeria for partnering with the Foundation.

    “Thank you for seeing our vision and choosing to invest in it. Thank you, Beiersdorf for your support. I can’t even just explain how much of a gift it is to the families that are going to be supported by it. Thank you to everybody who’s been involved in this,” she said.

    However, ‘Care Beyond Skin’ campaign is not Beiersdorf’s only social initiative aimed at changing the lives of the vulnerable in society. For instance, during the COVID-19 pandemic, Beiersdorf deployed a food security initiative for people who were locked down at home and were hungry, with humanitarian support worth about €100,000.

    The company joined the World Health Organisation (WHO) other multilateral institutions and governments across the board in the fight against the deadly COVID-19 scourge by helping to defray the financial stress on affected victims.

    In addition to this, every month, Beiersdorf has consistently for three years supported indigent widows and orphans, throughout the COVID-19 pandemic till 2023.

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    Back home in Nigeria’s Northeast region, it collaborated with PLAN International, a global organisation that works to protect and promote children’s rights in over 80 countries, to give psychosocial support, promote education, improve protection, and build resilience to Internally Displaced People (IDPs) in the Northeast.

    It is easy to see why Beiersdorf Nigeria leveraged its pediatric cancer care partnership with The Dorcas Cancer Foundation to rev up its sustainability business strategy. The move, The Nation learnt, was in line with the global emphasis on the significance of inclusion which is a key aspect of any modern institution’s CSR strategy.

    The strategy involves taking responsibility for the impact a company has on society, including its employees, customers, the larger community, and the environment. Accordingly, over 1,000 global companies are, today, involved in the United Nations CSR initiative known as the United Nations Global Compact – a commitment towards ethical business practices in the corporate world.

    According to a report by Procurement Tactics, an educational website about procurement and sourcing for professionals, tagged ‘Corporate Social Responsibility Statistics 2025’, CSR functions are responsible for over 40 per cent of a company’s reputation.

    The report asserted that if a company wants to be reputable, it has to have good CSR initiatives. It also opines that CSR strategies can increase market value by 4-6 per cent, showing that keeping stakeholders and consumers happy helps increases a brand’s market value.

  • How inadequate funding, obsolete laws hinder maritime growth

    How inadequate funding, obsolete laws hinder maritime growth

    Inadequate funding for regulatory agencies is a major obstacle to the growth of Nigeria’s maritime sector. This report delves into the challenges arising from limited awareness of the Nigerian Shippers’ Council (NSC), outdated laws governing its operations, and the urgent need for the Federal Government to allocate more resources to port agencies. OLUWAKEMI DAUDA emphasises the critical importance of adequate funding to empower the NSC and other regulatory bodies to effectively fulfil their core responsibilities.

    There is no doubt that for any regulatory agency within the nation’s maritime sector to function effectively, fulfil its core responsibilities and exercise its regulatory powers, adequate funding is essential. It is well known that the Nigerian Shippers’ Council (NSC) has long relied on the two percent Port Development Levy. However, NSC has been unable to implement its statutory one percent Freight Fee, as stipulated in its enabling Acts. With the Federal Government preparing to implement the Oronsaye Report, the nation’s Port Economic regulator is poised to lose its two percent Port Development Levy. This outcome aligns with the report’s recommendation that the Nigerian Shippers’ Council should generate its own revenue and become financially self-sustaining.

    Amid the harsh economic challenges faced by port users at Nigerian ports, and with no government agency explicitly tasked with safeguarding the interests of shippers and importers, the Federal Government, through a Presidential decree in 2015, designated the Nigerian Shippers’ Council (NSC) as the Port Economic Regulator for the nation’s ports. However, this Presidential fiat, which lacked legislative backing, has faced multiple legal challenges. Terminal operators and shipping companies have repeatedly taken the NSC to court in recent years over issues impacting the interests of shippers and importers.

    To exacerbate the situation, the NSC is constrained by an outdated legal framework. The 1978 Nigerian Shippers’ Council Act no longer reflects the realities of the modern maritime industry. It is disconnected from developments such as the 2006 Port Reform and the legislative measures that now govern the protection of shippers and importers in Nigeria’s maritime sector. For context, when the law establishing the Nigerian Shippers’ Council (NSC) was enacted in 1978, the nation’s ports were managed and operated solely by the Federal Government through the Nigerian Ports Authority (NPA). At that time, there was no private sector involvement in the port system. It wasn’t until 2006, under the administration of President Olusegun Obasanjo, that the landmark Port Reform was introduced, ushering in private sector participation. This reform shifted port terminal operations to private investors, while the NPA assumed a landlord role, overseeing the operations.

    Given the NSC’s ongoing financial challenges, it is imperative for the Presidency to sign the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023 into law. Having passed through the House of Representatives, the bill is currently awaiting Senate concurrence. For the NSC to function effectively as the nation’s Port Economic Regulator, there must be a legislative framework to support and legitimise the Presidential decree of 2015, ensuring the NSC has the legal powers necessary to carry out its mandate.

    During a courtesy visit by the Nigerian Maritime Law Association (NMLA), the Executive Secretary/CEO of the Nigerian Shippers’ Council (NSC), Barrister Pius Akutah, emphasised that the Act establishing the Council is outdated. Akutah remarked, “Today, we have the Ministry of Marine and Blue Economy, which is dedicated to the maritime sector. This marks a significant step taken by Mr. President to shift Nigeria’s economy away from its over-reliance on oil, toward a more diversified focus on the non-oil sectors, as you are all aware.”

    “With this kind of approach, it is important for us to collaborate with very critical stakeholders like yours to be able to move not only the ministry forward, but also to promote the development of the maritime sector and the blue economy in Nigeria.

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    “I know that the Nigerian Shippers Council, which you know has a mandate to take care of the interests of shippers over the years, is operating under a 1978 law which set it up. You will agree with me that by 2024, we should all know that the law is obsolete and it’s not going to adequately provide for what the sector stands for at the moment. So there is a need for us to look into that law and see what we can do to change the law and empower the agency to do more of what is required of it in this 21st century.”

    Currently, the Nigerian Shippers’ Council has a bill before the National Assembly seeking to formally transition into a legally recognised regulatory agency. As it stands, the agency operates under a Presidential directive and a regulation that empower it to fulfil the duties of the Port Economic Regulator—responsibilities that the Council has been executing effectively. “But the nitty gritty of what the Port Economic Regulator would do is not provided in that presidential order and the guidelines. So, there is a need for us to have a legislation. We have that legislation. It’s ongoing for some time now. Luckily for us, the National Assembly, the House of Reps has passed it. It’s before the Senate now.

    “So many areas of collaboration with the Nigerian Maritime Law Association will be very necessary and needed as soon as that law is passed into law and assented to by Mr. President. Also speaking when the House of Representatives Committee on Shipping Services paid a working visit to the Council, Barrister Akutah asked the lawmakers to assist the agency in getting approval for the 1 per cent freight stabilisation fee, which is statutorily embedded in the Act setting up the agency.

    “Mr. Chairman Sir, there is a directive from Mr. President and the Federal Executive Council (FEC) to implement the Oronsaye Report, and as this concerns the Nigerian Shippers Council, the report says we should be self-funded. Therefore, there is a need for us to implement our statutory funding, which is the 1 per cent freight stabilisation fee. I think this is very pivotal at this moment that the Oronsaye Report is being implemented. Once the Oronsaye Report is implemented, the 7 per cent Port Development Levy, which the Shippers Council gets 2 per cent from, may no longer be available. So, I think we need to work very hard to ensure that the Nigerian Shippers Council funding position is secured.”

    Implications of inadequate funding

    The Nigerian Shippers’ Council (NSC) plays a crucial role in mediating numerous economic disputes between terminal operators and shipping companies on one hand, and shippers and importers on the other. These disputes often involve issues such as container deposits, shipping and terminal charges, and extortion, with the NSC regularly receiving complaints from shippers and importers seeking mediation. However, without sufficient funding, the Council’s ability to effectively mediate and resolve port-related disputes is at risk. In particular, the NSC would lack the necessary resources to enforce sanctions when operators blatantly disregard directives.

    A notable example of this is the case involving CMA CGM, a French shipping company, and ASPA POP Investment Limited, a Lagos-based importer. In this case, N23.7 million worth of imported bags of POP (plaster of Paris) were damaged due to an unapproved barge operation. This incident highlights the critical need for the NSC to be properly funded in order to address such issues and ensure compliance with regulations.

    When the compensation demanded by ASPA POP Investment Limited differed from the amount CMA CGM was willing to pay, the importer turned to the Nigerian Shippers’ Council for assistance. In response, the agency intervened and ordered CMA CGM to pay the importer $5,316, a substantial increase over the $2,500 originally offered by the shipping company. This case is a clear example of the vital role the NSC plays in resolving economic disputes.

    Like the CMA CGM vs. ASPA POP Investment Limited case, numerous disputes frequently arise between shipping companies or terminal operators on one side and importers or shippers on the other. These conflicts underscore the need for a well-funded and legally empowered Port Economic Regulator. Such an agency, supported by appropriate legislation, is essential to enforce directives and ensure effective dispute resolution and mediation within the nation’s maritime industry.

    The Nigerian Shipping and Port Economic Regulatory Agency Bill 2023 provides the Nigerian Shippers’ Council (NSC) with the much-needed legislative backing to operate unchallenged as the nation’s Port Economic Regulator. Additionally, the bill ensures that the Council is adequately funded, empowering it to effectively carry out its responsibilities and maintain a well-regulated, efficient port environment.

    In conclusion, the Nigerian Shippers’ Council (NSC) has long played a pivotal role in mediating disputes and protecting the interests of shippers and importers in Nigeria’s maritime sector. However, its effectiveness has been hindered by an outdated legal framework and insufficient funding. The Presidential directive that currently empowers the NSC to function as the Port Economic Regulator lacks the legislative backing necessary for the Council to perform its duties with full authority and enforcement power. The introduction of the Nigerian Shipping and Port Economic Regulatory Agency Bill 2023 represents a critical step forward. This bill not only provides the NSC with the legislative foundation it needs to operate unchallenged but also ensures that the Council is properly funded. With these changes, the NSC will be better positioned to mediate economic disputes, enforce regulations, and protect the interests of all stakeholders in the nation’s ports, including shippers, importers, terminal operators, and shipping companies.

    The example of the dispute between CMA CGM and ASPA POP Investment Limited highlights the importance of having a strong, independent regulatory body capable of intervening in disputes and ensuring fair compensation. It also underscores the need for a well-regulated environment where the rights of shippers and importers are safeguarded. As the Nigerian maritime industry continues to evolve with private sector participation and port reforms, the NSC must be empowered by the right legislation and adequate resources. This will allow it to meet the challenges of a rapidly changing sector, ensuring that Nigeria’s ports remain competitive, efficient, and conducive to trade growth. The passage of the 2023 Bill is a vital step in strengthening the NSC’s role and ensuring a sustainable, well-regulated maritime industry for the future.

  • Towards a pollution-free Lagos

    Towards a pollution-free Lagos

    The Lagos State Environmental Protection Agency (LASEPA) plays a crucial role in maintaining the environmental health of Lagos, addressing diverse challenges such as air and noise pollution. Despite significant strides in managing pollution, especially with the expansion of air quality monitors and the launch of the Lagos Carbon Registry, the agency faces persistent issues, particularly in controlling noise pollution, which accounts for the majority of public complaints. The agency’s commitment to sustainable environmental practices is evident in its focus on local research, capacity building and partnerships with academic institutions to develop home-grown solutions for the city’s unique environmental challenges, reports OYEBOLA OWOLABI

    Nothing compares to breathing clean air, free from any form of pollution. It becomes even better when real-time updates on air quality are available, allowing you to plan your journey through a city, much like weather forecasts. This is the goal the Lagos State government hopes to achieve in the near future. Interestingly, however, it is impossible for air to be 100 per cent clean; there is a permissible threshold for pollutants.

    According to Dr. Abiona Odeyemi, a Consultant Pulmonologist at the Osun State University Teaching Hospital, it becomes hazardous when this limit is surpassed. He said: “Air pollution means that the air contains things that should not be there, and inhaling them is dangerous to the human system. However, there is a level to which pollutants are allowed in the air because the air cannot be 100 per cent clean. When these pollutants exceed their limit is when there is a problem. Also, studies have linked air pollution to the occurrence of certain diseases like stroke, cataract, and lung infections like pneumonia and Chronic Obstructive Pulmonary Diseases (COPD).”

    To prevent these untoward experiences, Dr Odeyemi advocated the use of air quality monitors which help to ascertain the level of pollutants in the air so that appropriate actions can be taken. He added: “The air quality monitors help to monitor the level of pollutants in the air so that then they exceed their permissible level, those in charge can take actions to reverse the trend.”

    In Lagos State, the air quality is generally considered good, but the government is not taking any chances, as there are still areas with poor air quality, according to Dr. Babatunde Ajayi, the General Manager of the Lagos State Environmental Protection Agency (LASEPA). Ajayi explained that the government has invested in air quality monitors to track the air within the city and take appropriate action when necessary. The state has expanded its network of monitors from 20 to 43, strategically placed across the metropolis. Plans are already in place to increase this number to 60 by the end of the year, Ajayi added.

    These monitors also help the agency keep up with its weekly release of air quality index on its social media handles so Lagosians are enlightened on what to expect. Ajayi said: “We have doubled the number of air quality monitors to 43 from the initial 20. We are looking to hit 60 by the year end because the Lagos State government is invested in making life easier for residents. This will also put Lagos on the global stage because you begin to get verifiable date on what the air quality is like as you approach the city.

    “Air quality is important for many things. People with respiratory problems, say asthma, cannot live in areas with bad air quality because they will have more episodes. And so the government is investing in these things to stem health problems. As the government invests in keeping the environment safe, there is ultimately a reduction in the cost of healthcare.

    “Also, the air quality index we release every Monday on our social media handles tells what the air quality is like in different areas. Where it is bad, we trace the source and take appropriate actions. For instance, we found a fishing community in Bariga where women smoke fish for export. The level of smoke was so much and it affected the air quality. We arranged for them to have a smoking kiln that traps smoke and filters it before it goes into the atmosphere, and today that community is better for it.”

    Lagos carbon registry and non-smoking law

    Another significant initiative by LASEPA is the launch of the Lagos Carbon Registry, which enables the agency to track emissions across various sectors and document carbon footprints. This initiative plays a vital role in contributing to the state’s sustainability index, helping Lagos monitor and manage its environmental impact more effectively.

    Ajayi said: “I guess the biggest and most important project we’ve executed is to launch the Lagos carbon registry which puts us the pedestal that enables us to trade carbon globally. It helps us document our carbon footprints, and we’re able to tell how much of greenhouse gas emissions were saving or emitting. It cuts across the transport sector, agricultural sector, industrial sector, even the home in terms of generators and cooking emissions. Measuring emissions and making sure that these things are properly documented for Lagos is a very giant stride.”

    Also, the non-smoking law which prohibits smoking in public spaces has just been enacted and enforcement will start soon. According to Ajayi, “We have a strategy, which will be rolled out from November. December is when all these clubs gather for various activities so enforcement will be full force.

    “So there are six or seven components of that law that every public building must have. If you have to smoke, you need to go to the designated smoking area. You can’t smoke in public places. You can’t smoke in front of people under 18. You can’t smoke inside closed spaces. Every public building must have a non-smoking sign inside and smoking area outside. You can’t smoke in the bathrooms in public places. We are not doing it alone, but in partnership with the NDLEA, and Lagos Safety Commission, and we’re able to, together, reach all of these places.”

    LASEPA’s responsibilities, however, extend beyond air quality issues. Its mandate includes tackling all forms of pollution, including noise and water pollution. According to Dr. Babatunde Ajayi, approximately 80 per cent of complaints received by LASEPA are related to noise pollution. Among these, religious centres account for the largest share, largely due to the lack of control over the establishment of such facilities under current regulations.

    Ajayi also attributed the high levels of noise pollution to human nature, explaining that people are often insensitive to the needs of others, which makes enforcement difficult. He stated: “I think the bottom line is that people are generally poorly behaved when it comes to complying with regulations. One major challenge we face is that after enforcement actions and shutdowns, they may maintain the required standards for four or five months before disregarding them. This forces us to restart the process. The reason we are able to enforce compliance initially is because offenders pay fines and face temporary shutdowns.”

    “But after the consequences, some people go back to doing the same thing after four or five months, the next time you seal them the consequence is doubled, but they will still go back. Another challenge is the diversity in range. A lot of them operate in the middle of the night, so it’s difficult to ascertain what went on and how. We will however keep at it and continue to do our best for the good of every resident.”

    One of the strategies LASEPA employs is engaging with religious leaders on a quarterly basis to educate them on the harmful effects of noise pollution and the importance of maintaining noise levels below 60 decibels during their services. These regular meetings aim to ensure that religious leaders fully understand the significance of reducing noise levels. In addition, LASEPA conducts frequent media campaigns to raise awareness among the public about the dangers of noise pollution.

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    “Number three is that when there is a violation, we send the offenders an abatement notice which is a warning. The second one is a pre-sanction and the third is when we seal up the premises. So far, we have sealed about 352 facilities in the last one year, which is a very small percentage considering that we are monitoring over 20,000 businesses/facilities cutting across religious, industrial and even residential apartments.

    “We are not trying to shut down businesses, but we just must ensure that people see consequences to bad behaviour.” The General Manager also highlighted that addressing noise pollution occupies up to 90 per cent of the agency’s time, despite it being only about five per cent of LASEPA’s overall mandate. This is because noise pollution affects everyone, making it a widespread issue that requires significant attention and resources.

    Going forward

    Ajayi stated that LASEPA will continue its efforts to ensure the environment remains safe and free from pollution. He emphasised that the agency will focus on investing in locally generated research to develop home-grown solutions to environmental challenges, ensuring that these solutions are tailored to the unique needs of Lagos State.

    He said: “Any society that aims to develop must prioritise research and locally generated data that are specific to our environment. So, we are going to place a strong emphasis on research. We have partnerships with all the universities in Lagos, and we will focus on developing local skills within our institutions.

    “Instead of purchasing air quality monitors from Germany or China, we plan to develop them locally. We have already started discussions with a department at LASU, and the conversation is progressing. We will also prioritise capacity development for our staff, ensuring they are well-grounded, thorough, and capable of handling any challenges that arise, no matter their origin. We will continue to set high standards and improve as we move forward.”

  • Expanding financial inclusion footprints with bank recapitalisation

    Expanding financial inclusion footprints with bank recapitalisation

    The Central Bank of Nigeria (CBN) Governor Olayemi Cardoso reaffirmed that the ongoing bank recapitalisation will enhance Nigerians’ access to financial services. Speaking at the 2024 International Financial Inclusion Conference in Lagos, he emphasised the CBN’s commitment to surpassing financial inclusion targets for economic growth. The event, attended by key financial inclusion stakeholders, reinforced efforts to bring financial services closer to the people, reports Assistant Business Editor COLLINS NWEZE

    The second International Financial Inclusion Conference 2024 (IFIC’24), held last week in Lagos, provided a key platform for financial services stakeholders to highlight the benefits of financial inclusion. The event, themed “Inclusive Growth—Harnessing Financial Inclusion for Economic Development,” was organised by the Central Bank of Nigeria (CBN) in partnership with the Bankers Committee, World Bank, and the Financial Inclusion Steering Committee, among others.

    In his keynote speech, CBN Governor Olayemi Cardoso emphasised that the introduction of new minimum capital requirements for banks aligns with the apex bank’s commitment to deepening financial inclusion across the country. He said: “This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets. With stronger capital bases, banks can provide more loans and financial products to Micro Small and Medium Enterprises (MSMEs), rural communities, and other vulnerable segments that have previously struggled to access formal financial services.

    “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he stated.

    The event also presented opportunity for the CBN to launch the Women Financial inclusion Dashboard, Women Entrepreneurs Finance Code and Financial Inclusion of Forcibly Displaced Persons. These moves are expected to significantly reduce gender disparities in financial access. By providing improved opportunities for credit, savings, and insurance tailored for women, these initiatives are set to unlock their entrepreneurial potential, foster gender equality, and drive broader social development.

    The IFIC’24 expanded the role of youth as pivotal players in Nigeria’s economic future. Recognising that young people are critical to the sustainability and diversification of the economy, discussions centred on the essential nature of financial education programmes. By equipping younger generations with financial literacy, the conference triggered informed decision-making and promote long-term economic well-being, ultimately empowering them to participate actively within the financial ecosystem. Cardoso said financial inclusion has the potential to unlock significant economic growth, particularly through the empowerment of small and medium-sized enterprises (SMEs), women and other vulnerable segments of the population.

    “SMEs are responsible for over 80 per cent of employment in Nigeria, yet many struggle to access the credit needed for expansion. Financial inclusion for SMEs is essential to unlock the full potential of this sector, and the Nigerian government remains committed to supporting these enterprises,” he stated. The CBN had on March, 28, 2024 announced a two-year bank recapitalisation exercise which commenced on April 1, 2024, and is expected to end on March 31, 2026. The recapitalisation plan requires minimum capital of N500 billion, N200 billion, and N50 billion for Commercial Banks with International, National, and Regional licenses respectively.

    Reducing financial exclusion rate

    On his part, CBN Deputy Governor, Financial System Stability, Philip Ikeazor disclosed that since the launch of the strategy, which is currently in its third iteration, the CBN and stakeholders have worked tirelessly to reduce financial exclusion rates. Owing to these efforts, the exclusion rate has dropped from 46.3 per cent in 2010 to 26 per cent as of 2023. He said: “Despite this progress, there are over 28 million Nigerians who still have no access to formal financial products and services and certain challenges persist, particularly in ensuring financial access for five most excluded demographics: women, youth, rural communities, Northern Nigeria and Micro, Small and Medium Enterprises (MSMEs).”

    He said that financial inclusion is the cornerstone of any robust economic development strategy. By ensuring that all citizens, especially those in underserved regions, have access to essential financial services, we unlock the potential for sustainable and inclusive growth. “For Nigeria, financial inclusion has been a collaborative journey involving the Central Bank of Nigeria and its partners, many of whom are represented here today. This collaboration was spurred by Nigeria’s commitment at the Alliance for Financial Inclusion’s 3rd Global Policy Forum in Riviera Maya, Mexico, where over 80 institutions from 76 countries committed to enhancing financial access through the ‘Maya Declaration.’ Following Nigeria’s commitment to the declaration, the Central Bank of Nigeria alongside key stakeholders launched the National Financial Inclusion Strategy in 2012 to serve as a roadmap towards reducing the country’s adult financial exclusion rate,” he said.

    Ikeazor said the CBN has rolled out targeted programmes and initiatives, including financial inclusion drives, financial and digital literacy awareness, sensitization campaigns, and the release of Frameworks and Guidelines targeted at accelerating financial inclusion and guiding players in the space. He said Nigeria’s financial inclusion journey cannot be discussed without recognising the rise in the usage of Digital Financial Services (DFS) which has led to a sustained increase in the use of mobile banking and agent banking networks, partnerships between Financial Technology Companies (FinTechs) and telecommunications companies all of which have played a crucial role in improving access to financial services in remote areas. These efforts have reduced the geographical and infrastructural barriers that once excluded millions from financial participation. Today, millions of Nigerians can send and receive payments, save, and access credit via digital platforms, which are transforming the financial landscape.

    “As we look ahead, it is clear that achieving 95% financial inclusion in Nigeria requires concerted efforts from all stakeholders—government agencies, financial institutions, Financial Technology companies, development organizations, and civil society. The Central Bank of Nigeria is committed to fostering these collaborations to ensure that financial inclusion initiatives are effectively implemented across the country. Today’s Conference offers an invaluable opportunity to share insights, challenge assumptions, and explore new strategies that will bring us closer to achieving our shared goal of inclusive economic growth,” he said.

    Read Also: Nigeria’s financial inclusion grows to 50%

    Also speaking, Lagos State Governor, Babajide Sanwo-Olu, reiterated the benefits of financial inclusion to businesses and economy. The Governor, who was represented by the Deputy Governor, Femi Hamzat, said that financial inclusion is at the centre of economic development. He said Nigeria has what it takes to deepen financial inclusion, and support the growth of business and economy. He said that financial inclusion will also support government’s efforts to achieve $1 trillion economy.

    He further highlighted the gains of human-centred, technology-driven solutions to broaden financial inclusion across the state. His remarks underscored that financial inclusion transcends mere access—it is fundamentally about empowering individuals to thrive both economically and socially. Also, in support of President Bola Ahmed Tinubu’s vision of restructuring Nigeria’s economy to reach the ambitious goal of achieving a $1 trillion economy, stakeholders were encouraged to prioritise policies that support financial inclusion initiatives.

    Analysts said the policies should combine technology and innovative solutions while ensuring that financial services are accessible, equitable, and effective for all citizens, reinforcing the country’s position as a burgeoning financial hub in Africa. Also speaking, Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Bello Hassan, said Nigeria financial services regulators want to achieve financial inclusion target they set for themselves because of the immense benefits it will bring to the economy.

    According to him, the NDIC raised the minimum insured deposits to ensure that more Nigerians develop interest in the financial system and also to protect depositors. He said that NDIC is committed to ensuring that customers’ deposits are secured to ensure greater inclusion in the financial system.

    Continuing, Cardoso said that women also play a critical role in driving inclusive growth. Research shows that when women are financially empowered, they reinvest in their families and communities, creating broader socio-economic benefits. “Yet, women in Nigeria are disproportionately excluded from the formal financial system. The Central Bank of Nigeria has made significant strides in promoting financial inclusion for Women and youth, particularly through Frameworks aimed at closing gender gaps and regulatory support for digital platforms that offer easier access to financial services for these vulnerable groups. With programs aimed at financial literacy, the CBN is also empowering young Nigerians to become financially independent, fostering entrepreneurship, and driving economic growth across the country,” he said.

    One of the most transformative tools for financial inclusion has been the adoption of digital payment channels leveraging mobile technology. He said Nigeria’s growing mobile phone penetration provides an unprecedented opportunity to expand access to financial services. Interoperable payment platforms have enabled millions of Nigerians to send payments, save, and access credit without traditional bank accounts. “Technological advances have democratized financial services, allowing people in remote areas to participate in the economy and this government is committed to creating an enabling environment for these innovations to thrive, through policies that foster competition, innovation, and financial stability,” he said.

    He said that since the launch of the National Financial Inclusion Strategy (NFIS) in 2012, the CBN in collaboration with partner agencies has championed policies and initiatives to reduce financial exclusion. These initiatives have been guided by the vision of ensuring every Nigerian has access to affordable financial services, from basic savings accounts to micro pension and micro insurance offered by other regulated non- bank financial institutions to digital payment platforms.

    Tackling financial inclusion hitches

    The IFIC’24 acknowledged the challenges in the financial inclusion journey, including issues around infrastructure, including inconsistent electricity supply and limited internet connectivity which continue to hinder widespread adoption of digital financial solutions. The ongoing need for investment in critical infrastructure is paramount for scaling up digital finance initiatives. For instance, a 2023 survey revealed that 40 per cent of financial transactions in Nigeria remained unresolved, leading to a concerning erosion of trust in digital financial systems.

    To mitigate these issues, enhancing data security, streamlining payment systems, and implementing robust regulatory frameworks were identified as essential steps for rebuilding confidence among users. The IFIC’24 further highlighted the importance of promoting financial literacy to empower individuals in their financial decision-making. Targeted education programs are necessary to fill knowledge gaps and address misconceptions about financial services, thereby helping to foster a more informed consumer base.

    Cardoso said: “In Nigeria, the 2023 EFInA Access to Finance survey reveals that 26 per cent of the adult population remains financially excluded. This statistic highlights a critical challenge: almost one-third of Nigerians cannot access capital to grow businesses, secure savings for the future, or obtain insurance to mitigate risks. The absence of these services traps individuals in cycles of poverty and stunts national economic expansion. Widespread access to financial services is an enabler of economic activity.”

    He reiterated CBN’s commitment on ensuring its financial inclusion policies and initiatives address the peculiar access to finance barriers for underserved populations, particularly Women, Youth, and MSMEs. “The importance of this mission cannot be overstated, as I have reiterated that financial inclusion is foundational to Nigeria’s sustainable economic development. In line with its efforts to deepen financial inclusion, the CBN recently introduced new minimum capital requirements for banks. This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets,” he said.

  • Building MSMEs’ capacity to drive growth

    Building MSMEs’ capacity to drive growth

    Micro, small and medium enterprises (MSMEs) are widely acknowledged as having the greatest capacity to create jobs and spur sustainable economic growth and development. However, in Nigeria,  productivity and competitiveness of operators in this critical sector have continued to lag. In this report, DANIEL ESSIET, explores efforts aimed at building the capacity of MSMEs for greater contribution to the economy

    It is not for nothing that the attention of stakeholders in various sectors of the Nigerian economy is currently focused on grooming new and existing small scale manufacturers and individual producers with a view to building their capacities to sell their products and services to domestic and international markets.

    This is so because the Micro, Small and Medium Enterprises (MSME) sector, where these small manufacturers operate, is globally acknowledged as having the greatest capacity to create jobs and drive sustainable and inclusive economic growth and development.

    Although, the success of Nigeria’ current economic recovery efforts are largely hinged on how fast and committed the various tiers of government are in partnering the private sector to boost the productivity and competitiveness of operators in the SME space, the sector’s performance has been less than sterling.

    Expectedly, this has prompted a growing interest in broadly surveying and analysing the sector’s current landscape and assessing its potential to serve as an engine of inclusive economic growth hence, the launch of the Small-Scale Enterprises (SSE LAB) and MBA Business Showers in Lagos.

    The Founder of SSE Lab, Desola Jimmy-Eboma, said MSMEs are integral to the Nigerian economy, employing a large segment of the workforce and possessing the potential to develop into significant corporations. She, therefore, stresses the importance of facilitating MSMEs in harnessing economies of scale in areas such as technology, human capital, market access, and financing.

    Additionally, she pointed out that MSMEs are vital to the economic vitality of Nigeria, noting that numerous large manufacturing companies originated as small businesses, with innovation playing a pivotal role in their swift expansion.

    Jimmy-Eboma recalled that she started small. She narrated: “About four years ago, I embarked on a journey with FreshOla Organics—a venture born out of a personal need, fueled by a passion for authentic African flavours and a commitment to quality. Starting with a line of all-natural dehydrated pepper and sauce mixes, we aimed to bring the rich tastes of our homeland to kitchens in Nigeria and around the world.

    “From our first year, we recorded tremendous success, strategically distributing our products across Nigeria and reaching international markets. This journey, though filled with challenges, was made possible by a belief in the power of possibility—my own, and by extension, our family’s collective possibility.”

    While her business, FreshOla Organics, has blossomed, she, however, noted that it was a product of her work. Her words:  “My professional background in mass communication and business, along with extensive experience across industries such as marketing, banking, and tech startups, laid the foundation for our rapid success.

    Read Also; We’re investing in human capital development, says AbdulRazaq

    “Venturing into this business firsthand exposed me to the myriad challenges faced by small-scale manufacturers in Nigeria—from mastering branding and packaging to navigating complex distribution channels. This realisation ignited a deep passion within me to share my knowledge and experiences with other passionate individuals seeking to turn their innovative ideas into viable products.”

    Jimmy-Eboma said capturing the MSME productivity potential is vital for Nigeria’s competitiveness amid a changing world. This was why she established MBA showers to help aspiring business owners translate their ideas into products within 12 weeks. She noted: “We supported them to discover and validate business ideas, curate brands, and navigate the many facets of launching a product.”

    She said the organisation has also established SSE Lab to provide online support for aspiring entrepreneurs. According to her, start-ups and early-stage companies if supported can develop cutting-edge ideas with the potential for real financial and economic returns.

    As small-scale manufacturing is emerging across the country, the SSE Lab founder indicated that the platform will serve as an online hub and portal, assisting innovators to connect with experts and mentors that can help them navigate their challenges.

    She emphasised that for small businesses, achieving higher productivity necessitates the enhancement of key competencies, including technology, human capital, market access, and finance. She pointed out that MBA Showers have emerged to assist new entrepreneurs in developing the capabilities required to bridge productivity gaps in sectors critical for maintaining competitiveness.

    In Jimmy-Eboma’s view, the economy requires an expedited process to identify and promote the growth of MSMEs in strategic sectors. This approach, she argued, would enable MSMEs to focus on niche markets, produce quality domestic goods, and strengthen the national industrial supply chain.

    She also mentioned that the accelerator is prepared to assist the government in increasing the number of small-scale manufacturers by fostering an innovative mindset through world-class acceleration and ecosystem support.

    Jimmy-Eboma, while noting that the industrial policy of Lagos State is driving a significant transformation focused on the importance of small and medium-sized enterprises, said SMEs are becoming a new driving force behind the state’s self-reliance efforts and industrial supply chain reinforcement.

    Indeed, the Lagos State Government appears to be leading the charge in leveraging the huge potential of MSMEs to catch up with the rest of the world in terms of economic growth and development.

    “We recognise that today’s MSMEs can become huge corporations, playing a pivotal role in driving not only economic expansion but also innovation, employment, and community development,” the Senior Special Assistant (SSA) to the Governor of Lagos State on Commerce, Cooperatives, Trade & Investment (MCCTI), Mrs. Hauwa Adeeyo, said.

    She reiterated the government’ commitment to tackling poverty, unemployment and hopelessness among young Nigerians whose entrepreneurial talent is not being harnessed due to a lack of funding and support. “We have numerous stories of ambitious entrepreneurs to whom Lagos provided the fertile environment to turn their dreams into huge success,” she said.

    Continuing, Mrs. Adeeyo said: “As we gather here, we celebrate not just the launch of a programme but the beginning of numerous entrepreneurial journeys. We are here to support and encourage the men and women who have dared to innovate, who have undergone rigorous incubation and training, and who today stand ready to showcase their market-ready products.”

    The SSA said these individuals are the lifeblood of Lagos’ economy, and “their success reflects on all of us.” She stated that small-scale manufacturing has traditionally been a catalyst for productivity growth, primarily driven by small business proprietors.

    Furthermore, she emphasised that the Lagos State Government aims to implement policy changes that would enhance the competitiveness of small-scale manufacturing enterprises, facilitate the transformation of ideas into new manufactured goods, and increase employment opportunities for workers.

    Mrs. Adeeyo highlighted Lagos’s commitment to fostering private sector-led innovation hubs that are intended to unlock entrepreneurial potential, offering training for SMEs to help them adapt to modern production techniques, promote quality job creation, and stimulate innovation.

    She said: “The launch of the Small-Scale Enterprises Lab (SSE Lab) and MBA Business Showers is a forward-thinking initiative aimed at empowering the MSMEs that serve as the backbone of our state’s economy.”

    She said the SSE Lab’s mission aligns closely with the state’s objectives to nurture a culture of entrepreneurship by providing her MSMEs with the resources, mentorship, and networks they need to succeed in an increasingly competitive world.

    “We are here to support and encourage the men and women who have dared to innovate, who have undergone rigorous incubation and training, and who today stand ready to showcase their market-ready products,” Mrs. Adeeyo added.

    The SSA noted that through platforms like the SSE Lab, the state is creating pathways for collaboration and growth, and setting a foundation for sustainable ventures that will drive its economy forward.

    Traditionally, Lagos’s industrial policy emphasiswed large-scale projects and the nurturing of national champions. However, the state is now evolving into an “Accelerator State”, which champions smaller firms as well as large companies.

    For the Head of Entrepreneurship, Ministry of Wealth Creation and Employment, Mrs. Taiwo Abiose, the future is bright for aspiring entrepreneurs as there are specific measures to help enterprises expand their market and unleash vitality.

    She indicated that the ministry was determined to support SMEs and women-owned enterprises. According to her, this has been the government’s development strategy.

    In his presentation, the founder/Chief Executive of MSME Africa, Seye Olurotimi, emphasised that the economy could experience growth through intentional efforts to enhance investment in SMEs and by strategically directing state investment aids to generate employment opportunities.

    In his presentation titled: “Empowering MSMEs for Sustainable Growth and Global Impact,” Olurotimi highlighted the vital role of MSMEs in Nigeria’s economic advancement, noting their significant contribution to job creation.

    Citing World Bank data, he said MSMEs constitute 90 per cent of businesses worldwide and account for over 50 per cent of global employment. In emerging economies, formal MSMEs also contribute as much as 40 per cent of national income (GDP) and are responsible for creating seven out of every 10 jobs.

    He also said in Europe, MSMEs represent 99 per cent of all businesses, employing around 85 million individuals and generating more than 56 per cent of the private sector’s GDP. In the United States, MSMEs make up 99.9 per cent of all businesses, employing nearly 47 per cent of the workforce and contributing to 44 per cent of the U.S. GDP.

    But in Africa, MSMEs are responsible for approximately 80 per cent of jobs across the continent, playing a crucial role in alleviating poverty and enhancing economic resilience. Olurotimi said despite their immense potential to generate jobs and expand the country’s economy, MSMEs face a number of challenges which make growth prospects for businesses to remain restrained.

    He stressed the need for government to increase support for innovative MSMEs to foster new quality productive forces and help enterprises expand markets and unleash vitality.

    According to him, these companies will play an important role in promoting industrialisation and developing new quality productive forces.

    Olurotimi also urged the government to work with the private sector to roll out mechanisms to promote the development of SMEs and boost the growth of the enterprises.

    He   noted the need for further efforts to support the digital transformation and financing of SMEs engaged in manufacturing, specialise in a niche market and boast cutting-edge technologies.

  • Assessing UBA’s strides on settlements, payments in global markets

    Assessing UBA’s strides on settlements, payments in global markets

    The United Bank for Africa (UBA) America’s operation continues to support African businesses with payments, settlements and global trade facilitation. Beyond serving as the payment hub for African lenders in the U.S. and abroad, UBA forms strategic partnerships to promote social enterprises and development. Its collaboration with Devex, a social enterprise platform for global development, during the IMF/World Bank Annual Meetings in Washington D.C. underscores the bank’s commitment to advancing African interests globally. Assistant Business Editor COLLINS NWEZE, who covered the event, reports

    African businesses and financial institutions are leveraging on the UBA America’s services to carry out trade, settle transactions and facilitate payments at the global markets.  The Group Managing Director, United Bank for Africa (UBA) Group, Oliver Alawuba, said the UBA America continues to play key payment and settlement roles for growth and development of the African continent. The bank’s partnership with Devex, presented opportunity for stakeholders from the global development sector to discuss transformative ideas shaping the future of aid and development.

    Alawuba and the Chief Executive Officer, UBA America, Sola Yomi-Ajayi, spoke about the activities of UBA Group and UBA America, and how the bank is connecting Africa to the rest of the world and connecting Africans in settlements, payments, and capital flow across Africa, United States, United Arab Emirates, and other major countries of the world.

    Highlights from the event, include Alawuba’s insights on how the bank differentiates itself from other financial institutions in terms of product offerings and customer experience. He said: “For UBA, we are currently present in 24 countries, and we are present in key financial centers of the world, including the United States of America. That alone shows that UBA is connecting Africa to the rest of the world and connecting Africans among themselves, in settlement, payments, and capital flow”.

    “And to do this, the most critical philosophy for UBA is customer experience, excellent customer experience. So, what we do is to get things done from the perspective of the customer. The customer is the reason why we do our business, and for us, Africa is our home, and Africa remains the frontier market for us in UBA.”

    Alawuba said he was excited that UBA remains the only bank originating from Africa that is present in the United States of America, regulated with a national banking licence, regulated by the Office of the Comptroller of the Currency (OCC) and that is a very prime position for us to support payments and to support settlements of businesses that originating out of Africa, or between Africa and the rest of the world. He said: “Today, UBA America is 40 years in America. UBA America is a settlement bank for so many banks out of Africa, and this is what has been very difficult for banks out of Africa to have settlement banks in our correspondent banks in America. UBA America is playing that role. UBA America is also banking many central banks because they understand the African business, and they are able to bank many central banks as even reserve banks of the central banks.”

    Dealing with currency risks

    Alawuba explained that because of the fact that UBA is present in many countries, the bank will have access to foreign exchange. “Things don’t get bad in all the countries at the same time; we have a very diversified portfolio. So, we are able to optimise the sources of efforts across all those countries. So, we stay on board, we stay moving because we have access to foreign exchanges across several countries where we are present, and we are optimising them more efficiently,” he said.

    On UBA’s long-term strategy for expanding its presence in the USA and market share, he said the bank aspires to be top three in any geography where we have presence. And the way we want to increase the market share clearly will be more of organic growth. “We want to grow organically, and if we have the opportunity for inorganic growth, why not,” he said.

    On facilitating trade between Africa, and the United States, Alawuba said: “The truth of the matter is that there are several investors from United States of America who are interested in Nigeria. Recently, we have seen some of the monetary policies that the central bank has put in place and how they have encouraged a lot of foreign direct investment and foreign portfolio investment into Africa, and a lot of those foreign portfolio investments go to UBA and a lot of some of the foreign direct investments are also coming to UBA.”

    He said the bank is pushing strongly to support the financial services institutions in Africa to be able to serve as a correspondent bank to do transactions and settlements within the United States of America. Speaking further on the bank’s performance, he said: “Nigeria is a country that is over 200 million people with a GDP of over $400 billion. UBA keeps in mind that we are present in 24 countries, and over 60 per cent of our revenue comes outside of Nigeria. So, the result we release are the core revenue from core business of UBA and that revenue would continue to grow.

    “We saw opportunities in Africa early enough, and we have gone into Africa and invested. Today, Africa is contributing around 70 per cent and those markets are really growth markets. So, it is not necessarily about Nigeria for UBA, is a lot more about Africa and the International Bank. Today, the event where we are witnessing is co-sponsored by UBA America, and they are doing quite well in America.”

    On investment in UBA shares, he said: “Anyone who is buying UBA shares is buying businesses in 24 countries, and the person is buying a very diversified portfolio. So you are not concentrating on the issues in Nigeria, which can change in a few months. The high interest rate regime mentioned can change in the medium term in Nigeria. But UBA is in 24 countries. A piece of the share is a piece of businesses across the 24 countries.”

    Medium to long-term customer expectations

    He said: “We are in Africa for a long time. UBA is not just about banking, UBA is about changing the lives of Africans. As we do that, as we push ourselves to change the lives of Africans, we are clearly going to be generating revenue and we will keep paying good dividends and we will keep actually making sure that our customers are getting the best of services through the technology that we are deploying and through the various markets and products we will be producing.”

    Read Also: Kaduna water corporation officials hail Uba Sani over salary arrears

    On her part, Yomi-Ajayi, said that as the Group Executive Director for UBA Group, overseeing international operations outside Africa, and also the CEO of UBA America, she has been pivotal in facilitating funds and initiatives supporting the UN’s Sustainable Development Goals (SDGs) and work across various project streams to extend our reach beyond major cities, especially in Nigeria, where the bank has deep market penetration.

    On how UBA’s infrastructure supports development work across Africa, she said: “We leverage our extensive network, especially in Nigeria where we are present in every state, city, and local government. This allows development partners to reach more communities and maximise their impact on poverty reduction, education, food security, and other pressing issues. We believe in giving back, so our role involves partnering with institutions to address key social challenges and support those affected by displacement and other hardships.”

    Yomi-Ajayi further explained her role fostering relationships with development organisations and corporate institutions globally, be it in the U.S., Europe, or elsewhere, to bring investment, trade, and capital flows into Africa. “We support these connections to enhance trade, foster economic empowerment, and elevate living standards,” she said. She said the impact of UBA America has been substantial. “UBA America is the second most profitable entity within the UBA Group, which spans 24 countries. Our successful model here is being replicated in the UK, France, and the UAE, supporting global business flows with Africa and contributing to economic growth across our countries of operation,” she said.

    She said the operation of Free Trade Zone has allowed African businesses, including those in Nigeria, to engage in trade with fewer regulatory obstacles. “UBA supports this by facilitating and confirming Letters of Credit (LCs) for imports and exports. In the past, African banks often needed foreign bank confirmations to access LCs. Now, UBA America bridges this gap by confirming LCs for beneficiaries in regions like India, China, North America, and Europe. We bank over 85 per cent of Nigerian banks and provide trade lines and clearing services through our membership in the U.S. Federal Reserve System, the only African bank with this privilege,” she said.

    Continuing, she emphasised that while profit is essential, UBA prioritises responsible growth that supports the financial ecosystems in the countries where we operate. “Our goal is to enable smaller institutions to grow, serve their clients, and build financial stability across the region. This approach allows us to contribute meaningfully to the development of financial systems, especially in emerging markets,” she stated.

    Consolidating UBA franchise

    The UBA Group is already a household name in banking across many countries, with its drive for expansion to new markets aligning with the determination to bring banking closer to the people not only in developing nations, but also in advanced economies. For instance, UBA Group’s foray into Dubai will enable it harness opportunities in the MEASA, which comprise 72 countries with an approximate population of three billion. The UBA Plc (DIFC Branch) operates under the category four licence and regulated by the Dubai Financial Services Authority (DFSA), which is the financial regulatory agency of the special economic zone, the Dubai International Financial Centre.

    The DIFC Branch was a strategic move by the bank to connect African businesses to Gulf investors and deepen the African economies. This reinforces its strong franchise as Africa’s Global Bank, facilitating trade and capital flows between Africa and the rest of the world. Chairman of UBA Group, Tony Elumelu said: “We are happy that Africa’s global bank is fulfilling its dreams of helping to finance trade, infrastructure for our people who are industrious and committed to Africa’s dream of prosperity.”

    UBA Group had also in March 2019, launched the UK branch to promote trade and commerce between Europe and Africa. The launch followed the authorisation of the Prudential Regulation Authority (PRA) and the Financial Conduct Authority(FCA) for UBA UK Limited to carry out full scale wholesale banking across the UK.

    The UBA UK, previously named UBA Capital (Europe), offers treasury services, cash management, correspondent banking, corporate lending and wholesale deposit products to professionals and eligible counter-parties. It also provides structured and trade finance, issuance, acceptance, confirmation and refinancing of Letters of Credit of different variations, among others. UBA Group further consolidates its strong franchise as Africa’s global bank, facilitating trade and capital flows between Africa and the world.

  • Exit of a military giant who led from the front

    Exit of a military giant who led from the front

    As Nigerians mourn the death of Chief of Army Staff (COAS) Lieutenant General Taoreed Abiodun Lagbaja, the nation reflects on the profound impact of his leadership. In Lagbaja, Nigeria lost a humble yet formidable military figure known for his unassuming nature and steadfast commitment to duty. PRECIOUS IGBONWELUNDU writes that the late Lagbaja’s leadership style, operational effectiveness and administrative expertise were instrumental in combating violent extremism.

    As the world focused on the unfolding events of the United States presidential election on Wednesday, November 6, Nigeria was struck by heartbreaking news. In a solemn press statement, Presidential spokesman Bayo Onanuga announced the passing of the Chief of Army Staff (COAS), Lt.-Gen. Taoreed Lagbaja. According to the statement, Lagbaja died the previous evening, Tuesday, November 5, in Lagos, after a prolonged battle with illness.

    With his death, Lagbaja became the third Chief of Army Staff to die in office since 1967, following the deaths of Ibrahim Attahiru on May 21, 2021, and Joseph Akahan in 1967. While Attahiru and Akahan both tragically lost their lives in plane and helicopter crashes, Lagbaja’s death was the result of complications from cancer, which had left him in a coma for several weeks. Before his appointment by President Bola Tinubu on June 19, 2023, as the 23rd Chief of Army Staff, Lt.-Gen. Lagbaja was relatively unknown to the broader Nigerian public. The reasons for this were clear. Known to his peers as “Lagbaja” — a Yoruba name meaning “someone, nobody, anybody, or everybody” — he was a man of humility who never sought the spotlight. He was a military leader who preferred substance over self-promotion, and his approach to life was understated yet highly effective.

    Among fellow officers, Lagbaja was regarded as one of the finest of his generation. A highly skilled strategist with deep expertise in ground, aerial, and amphibious warfare, he never exhibited intellectual arrogance or a sense of superiority. His approach was always grounded in a quiet, unassuming confidence. His commitment to due process, his sharp intellect, and his unflinching fearlessness made him a respected and beloved figure among his troops. They were never in doubt about his unwavering stance on issues of national security and his dedication to the well-being of the country.

    As an officer in the Infantry Corps, Lagbaja faced numerous battles and brushes with death. He understood better than most that the glorified images of war portrayed in films bore little resemblance to the harsh realities experienced by soldiers on the ground. Yet, despite this awareness, Lagbaja always led from the front, never issuing commands from the safety of an office. His leadership was defined by courage, resilience, and an unwavering commitment to his troops. This approach endeared him to both his fellow officers and the rank-and-file soldiers who served under him.

    Throughout his distinguished career, Lagbaja held several key command positions on strategic battlefronts, consistently demonstrating integrity, diligence, and compassion. He was a leader of principle, earning the rare distinction of having no complaints or petitions filed against him by the soldiers he commanded. His reputation for profes respect made him a beacon of honor within the Nigerian Army.

     As Commander of the 9 Brigade, Lagbaja played a pivotal role in combating criminality across Lagos and Ogun states, leading successful operations in hotspots like Arepo, Epe, and Ibeju-Lekki. His decisive actions dismantled terrorist sleeper cells, thwarting planned attacks on key infrastructure. As General Officer Commanding (GOC) 1 Division in Kaduna, his leadership in counter-terrorism operations against bandits and extremists in the Northwest marked a turning point. His efforts disrupted criminal networks in areas like Birnin Gwari and Kuriga, restoring peace and hope to communities long plagued by violence. Lagbaja’s legacy of service, humility, and unwavering dedication to his country leaves a lasting mark on both the Nigerian Army and the nation.

    Early life and career

    Born on February 28, 1968, in Ilobu, Irepodun Local Government Area of Osun State, Lagbaja had a formative education that laid the foundation for his distinguished military career. He attended the Local Authority Teachers College Demonstration School in Osogbo between 1973 and 1979. Afterward, he studied at the Polytechnic, Ibadan, from 1984 to 1986, where he obtained his West African School Certificate (Advanced Level). Lagbaja’s passion for service led him to the Nigerian Defence Academy (NDA), where he was admitted in 1987 as a member of the 39th Regular Course. He graduated with a Bachelor’s degree in Geography in 2001 and later earned a Master’s in Strategic Studies from the prestigious U.S. Army War College.

    After his commissioning as a Second Lieutenant on September 19, 1992, into the Nigerian Infantry Corps, Lagbaja embarked on a career that would see him rise through the ranks of the Nigerian Army. He held various leadership and operational roles that showcased his exceptional strategic acumen and commitment to national security. Before being appointed as Chief of Army Staff (COAS), Lagbaja had an extensive military career. He served as the Chief of Operations (Army) and held key positions as General Officer Commanding (GOC) of 1 Division in Kaduna and 82 Division in Enugu. His leadership and operational expertise were instrumental in reshaping the security landscape in the Northwest and other regions.

    Throughout his career, Lagbaja was involved in numerous critical military operations, including Operation Harmony IV in the Bakassi Peninsula, the United Nations Mission in the Democratic Republic of Congo, and Operation Zaki. He also commanded forces during internal security operations such as LAFIYA DOLE in the Northeast, Operation MESA in Lagos and the Southwest, UDO KA in the Southeast, and Operation FOREST SANITY in Kaduna and Niger states. Lagbaja’s earlier years as a young officer saw him appointed as Platoon Commander in the 93 Battalion and 72 Special Forces Battalion between 1992 and 2001. He was later deployed as an instructor at the Nigerian Defence Academy from 2001 to 2004, where he shaped the next generation of Nigerian officers. He also served as a Grade 2 Staff Officer in charge of Peacekeeping at the Army Headquarters and as a Directing Staff at the Armed Forces Command and Staff College, Jaji. His leadership capabilities were further recognized when he served as Deputy Chief of Staff G1 at Headquarters 81 Division, Lagos, and later as Commanding Officer of the 72 Special Forces Battalion in Makurdi. He went on to serve as Chief of Staff at the 8 Task Force Division in Monguno, Borno State, during the heat of the Boko Haram insurgency, where his leadership was critical in securing the region. As Commander of the 9 Brigade in Lagos, he led successful operations that cleared Lagos and Ogun states of dangerous criminal elements, including bank robbers, kidnappers, and militants. His efforts earned him respect as one of the Army’s most competent and results-driven officers. Lt.-Gen. Lagbaja’s career was a testament to his unwavering commitment to the Nigerian Army, his strategic foresight, and his relentless pursuit of security and peace for his country.

    Read Also: Military confirms emergence of new terror group in Sokoto, Kebbi

    Vision for the Nigerian Army

    Upon assuming office as COAS, Lagbaja outlined a clear and ambitious vision for the Nigerian Army: “To transform the Nigerian Army into a well-trained, equipped, and highly effective force towards achieving its constitutional responsibilities within a joint environment.” At the time, many who were familiar with the deeply entrenched issues in the Nigerian Army, particularly the corruption and inefficiencies that had plagued the security sector, were skeptical of his ability to achieve such sweeping reforms. Previous attempts to challenge the status quo had been met with fierce resistance, and many believed that Lagbaja’s vision was overly ambitious.

    However, within just one year of taking office, Lagbaja proved his critics wrong. The widespread grievances that had long characterized the Army — poor welfare, the embezzlement of soldiers’ allowances, leaked memos, and persistent petitions from troops — became a thing of the past. His commitment to transparency in the disbursement of allowances helped restore the trust of the troops. Lagbaja also prioritized the recapitalization of the Army’s fleet and the acquisition of modern weaponry, ensuring that these processes adhered to best practices. These reforms were crucial in strengthening the Army’s capacity to engage and defeat terrorists and other insurgent groups across various theaters of operation.

    Under his leadership, and with the approval of the Commander-in-Chief, the Nigerian Army introduced a structured insurance policy for personnel. Lagbaja also oversaw the upgrading of the Army’s Air Wing, acquiring Bell UH-1 helicopters and 12 MD 530F Cayuse combat helicopters. Additionally, he prioritized the renovation of office spaces and barracks accommodations for both officers and soldiers. Perhaps most importantly, Lagbaja restored discipline and morale within the Army, instilling a renewed sense of purpose and professionalism among the troops.

     Under Lagbaja’s leadership, Nigeria witnessed a dramatic reduction in attacks by Boko Haram and Islamic State West African Province (ISWAP) terrorists, especially in the northeastern part of the country. Attacks on Army bases, super camps, and ambushes of troops responding to distress calls became less frequent, signaling a shift in the tides of war. Lagbaja’s approach was not just defensive; he ordered an offensive strategy that took the fight directly to the terrorists. His forces made significant inroads into terrorist strongholds, including the Sambisa Forest, Lake Chad Basin, and the Timbuktu Triangles. In these areas, Nigerian troops were able to recover a significant amount of weaponry and equipment, including Mine-Resistant Ambush Protected (MRAP) vehicles, artillery pieces, and high-caliber weapons that had been looted from Nigerian and international forces years earlier.

    During an interview with journalists in June, as part of the Army’s 165th anniversary celebrations, Lagbaja revealed that these recovered weapons had been seized by terrorists from Nigerian forces and international partners in previous attacks. While he acknowledged that challenges remained and that the military’s efforts were ongoing, he also emphasized the success of recent operations, noting that many terrorists — including commanders, foot soldiers, and their families — were surrendering. Additionally, under his leadership, the military strengthened its collaboration with neighboring countries to more effectively address cross-border terrorism and insurgency. This cooperation was key to the gradual but steady progress in the fight against terrorism in the region. Though Lagbaja made it clear that the war was far from over, his strategies had undeniably shifted the balance in favor of Nigerian security forces, bringing hope to communities once ravaged by insurgent violence.

    Advocate for a whole-of-society approach to counter violent extremism

    Despite his role as a combatant, Lagbaja was a staunch advocate for a whole-of-society approach to combating violent extremism in Nigeria. He firmly believed that the fight against terrorism and insurgency could not be won by the military alone. On numerous occasions, he called on the Nigerian public to play an active role in the nation’s security by staying vigilant and providing actionable intelligence. Lagbaja emphasised that addressing the root causes of violent extremism and preventing future attacks required more than just military intervention; it required collective effort. He urged citizens to take personal responsibility by raising the level of surveillance in their communities. “Collectively, we can prevent these bad guys from inflicting casualties on innocent civilians,” he said, advocating for the return of practices such as the use of handheld scanners and other security measures to detect and prevent threats like suicide bombers from infiltrating public spaces.

    He often spoke about the complex nature of the current conflict, which global experts have described as an age of durable disorder, where protracted violence and instability continue to undermine society. Lagbaja was candid about the limitations of the military, noting that no matter how many soldiers were deployed, it would never be possible for them to be everywhere at once. “There must be internal vigilance,” he stressed. “To win this war, we need to support the armed forces not just by applauding them but also by actively reporting threats to the necessary agencies.” For Lagbaja, defeating terrorism required a unified effort from every segment of society.

  • Creating ecosystem for innovation to thrive

    Creating ecosystem for innovation to thrive

    A thought-leadership platform that brings together experts from both the public and private sectors to discuss strategic issues that shape Nigeria’s economy and development holds this week. Tagged ‘Innovention Series,’ with innovention, by meaning, an amalgam of invention and innovation, this year’s edition of this public service offering explores the vast possibilities that Artificial Intelligence (AI) brings to operators in the marketing communication space and other players in the economy. Assistant Editor CHIKODI OKEREOCHA reports.

    The need to inspire the private sector to think outside the box and leverage their ideas and creativities to turn around the fortunes of Nigeria’s struggling economy has never been more compelling.

    With the Federal Government currently battling to manage some of the unintended backlashes from its economic reforms, such as soaring inflation, high interest and foreign exchange rates, fuel price increase etc. a private sector-led push to complement its efforts, by encouraging open thinking about innovation has taken centre stage .

    At the core of the strategic rethink in favour of leveraging innovation to tackle the nation’s critical economic and business challenges is the belief that much of the conversation about Nigeria’s economic and business woes has been centered on government, even when the private sector is imbued with so much ideas and creativities to help change the narrative.

    Although, this open thinking about innovation is in form of a thought-leadership platform that brings together experts from both the public and private sectors to discuss strategic issues and provide actionable insights for driving change across sectors, the idea has been on for 12 years, and is tagged ‘Innovention Series.’

    Powered by marketing communications group Verdant Zeal Group, Innovention Series started in 2012, during the company’s third anniversary. “We thought that rather than just doing a social event we should have something with a bit more intellectual depth. That was what gave birth to Innovention Series.

    “Innovention, by meaning, is an amalgam of invention and innovation. And the question we posed to our stakeholders was how can we as Nigerians from African extraction, use our ideas and creativities to turn things around in this economy,” the company’s Chief Operating Officer (COO), Dipo Adesida, told The Nation, ahead of the 12th edition of the conversation holding this week Thursday.

    He explained that over the years, the company has continued to push the narrative that the private sector has a role to play, because there is too much conversation about government. “We know that government should, by obligation, tackle the nation’s economic and business challenges, but we as private individuals and corporate executives and citizens have our own responsibilities as patriots to contribute to development one way or the other, which is why we have continued to do this,” he said.

    Adesida explained that the Innovention Series is purely a public service “Where we said let people who have ideas, let people who are thinkers, let people who are strategic in the way they orgnaise their businesses, private and institutions, public enterprises, academic setups come and present their ideas in the public space where people can say I like the way this person is thinking, maybe I can adopt that in what I do. That really has been our contribution.”

    The Nation learnt that the Series had over the years focused on topics ranging from branding, content creation, entertainment and creativity. Last year, it started with Artificial Intelligence (AI), but this year, it decided to move a notch higher into the same subject, i.e. AI. 

    “AI is something that we all have to understand in this present time, otherwise the prospects of human beings involved in the productive and creative economy will be threatened,” Adesida said, noting that AI in any space is something worth looking at.

    He stated that AI, as the technology many people thought existed in the theoretical space, is becoming practical. For instance, what used to take practitioners in the marketing communication field to generate a lot of brain power to do such as writing press releases, writing scripts, generating pictures from Meta etc. is now possible with the assistance of AI.

    “A lot of things in marketing that we have spent a lot of human efforts in doing like writing, copywriting, and art design, which are the foundations of marketing, even public relations, we have AI models that are now able to read those things even without human involvement,” the Verdant Zeal COO pointed out.

    Should people be afraid of AI? “No,” Adesida said, pointing out, for instance, that “Just like everything technology, AI is meant to move human kind forward. Our understanding of it is what helps us ride that wave and even add more productivity as against being afraid or wary of it.”

    Citing the discovery of crude oil for example, he said it was one of the inventions that has changed mankind despite the initial misgivings around the fact that crude oil was probably a pollutant because it was more of an agrarian society then and crude comes out of the ground that was spoiling crops and all that.

    He, however, said what the society has extracted out of crude over the last 100+ years has driven aviation, automobiles, and space travels, among others. “If we, as humans, understand that these things have a lot of potential and perhaps, more importantly, extractives, what we can get out of it to create even new industries that never existed, then we are able to do a lot more,” Adesida said. 

    While acknowledging that some jobs will go obsolete following the advent of AI, he, however, said there will even be more kinds of jobs that people can do. He said, for instance, that today, there are content creators, a name which did not exist 15 years ago.

    But, with the advent of social media platforms, the COO said the need to create content for those platforms spurred a new set of jobs like influencers who are earning a lot more than journalists, copywriters, art directors and other professionals.

    Although, a lot of these content creators are doing big things, their money goes into private savings accounts, and not captured as part of the economy because the government hasn’t found a way to recognize what they are doing, even though they are trying to shield themselves because they don’t want to pay taxes.

    “So, there are a lot of invisible loses that is going on and you can’t really blame people because nobody wants to work so hard and pay tax when you know that the government is not going to use the money to do anything,” Adesida stated.

    He, however, observed that in Nigeria, whenever there is a new innovation, people tend to just focus only on the popular ones. For instance, Blockchain technology’s most popular products were crypto currency and bitcoin, and everybody was doing just those.

    Indeed, Blockchain has so many applications, but because of the size of what people know, they tend to rush into what is most popular, but there are so many other loads of knowledge embedded in the technology.

    Read Also: Lagos preaches respect for ecosystem, environmental sustainability at 18th Walk for nature

    While reiterating that AI in any field is something worth looking at, Adesida said world’s richest man and founder of SpaceX Elon Musk, a fortnight ago, released some new prototypes of robots as vehicles. He said with Musk’s driverless cars, it means there will always be an ecosystem around it.

    His words: “It means that those things (driverless automobiles) need to be managed; there need to be more Close Circuit Television (CCTV) camera, Global Positioning System (GPS) applications, because they all depend on those things to move. It also means that our road system will have to change because they can’t drive on the current structure we have now.”

    Continuing, he said the world might also be having things like GPS engineering coming up as a profession that today has no market because they haven’t produced anything that requires a GPS engineer, including having CCTV production because all the sensors that the vehicles will need will become things that will increase in production.

    “So, every new innovation creates its own ecosystem that brings new things to the market. As space travel now is becoming commercialized, we are having passenger shuttles that are going to space.

    “The price use to be higher, about $15 million now. So, maybe in another 20 years, it will become what you can say we are going to space in summer, because now you can afford it, and if you can’t afford it, there will be a bank that will give you a loan to go,” Adesida added.

    Again, this, Adesida emphasised, is what the Innovention Series is all about. “It is to say look, even if you are in automobile, here are the things that are possible; if you are in healthcare, here are the things that are possible; if you are in education, these are possible areas of research, areas of study, and areas of presenting papers,” he said.

    As he insisted, “Nigerian institutions generally need to contribute more thoughts to the global knowledge bank. I believe this is an area where we are lacking greatly.”

    Perhaps, to underscore this fact, Verdant Zeal, in the build-up to the Innovention Series, hosted a pre-innovention Campus event on Monday, October 21, 2024, at Olabisi Onabanjo University, Ogun State, with the theme ‘Machine Learning and Hyper-Personalized Marketing.’

    It was aimed at engaging young professionals and academics in exploring cutting-edge AI strategies applicable to the marketing industry. “We are doing it deliberately in a university environment so that we can again look at those who are currently in the school and say here are the things you can learn about AI, how you can integrate it into what you are currently learning and your prospects for the future,” Adesida said.

    Justifying the move, he said most undergraduates tend to think about the job they will get when they leave school, but fail to ponder about what they can do now when they are still undergraduates.

    “This is because the technology is available, internet is available. So, for us, that’s our own way of training undergraduates by going to universities to say this is what is available out there, this is what you are learning right now, here are the things that you can start to do. Over the next one year, you can open your mind to AI in some areas,” he explained.

    ‘AI an enabler of creativity, innovation’

    For Professor of Artificial Intelligence/Head, Center of Intelligence of Things at the University of Bolton, Dr. Celestine Iwendi, “AI is not merely a tool for efficiency; it is an enabler of creativity and innovation that will reshape the future of marketing.”

    Dr. Iwendi, who is keynote speaker at this year’s Innovention Series, where he will provide deep insights into the transformative potential of AI in marketing and discuss emerging trends in the field, noted that the ability to harness AI’s potential will define the next generation of marketing leaders.

    MSMEs’ productivity driver

    Micro, Small and Medium Enterprises (MSMEs) account for about 96 per cent of all businesses in Nigeria. They also contribute 49 per cent the national Gross Domestic Product (GDP) and employ 84 per cent of the country’s workforce, according to professional services firm PricewaterhouseCoopers (PwC MSME Survey 2020.

    The sustenance of Nigeria’s economy relies heavily on these enterprises. Adesida said with almost half of Nigeria’s GDP coming from MSMEs, which include those who are not working formerly in offices, AI is what they need to increase their productivity because “There is a lot that small businesses need to do that is labour-intensive that they might not be able to cope with.”

     The COO said for the company, AI is an opportunity for MSMEs to upscale, and for people who might not be part of the formal economy to get productive. While also noting that oil accounts for more than 80 per cent of Nigeria’s revenue, he said there is a lot more going on that is not captured in the formal economy.

    The 12th Innovention Series, which will be anchored by President of Power Talk Services, Temiloluwa Awonbiogbon, will feature CEO, Caladium Consulting, Ayo-Bankole Akintujoye; CEO of Hervest, Solape Akinpelu; Community Marketing Manager at MANO, Adeola Adenuga as panelists.

    The Executive Vice Chairman of Verdant Zeal Group, Dr. Tunji Olugbodi, noted that this public service in line with the company’s commitment to advancing thought leadership on Nigeria’s critical economic and business challenges. He added that this year’s focus on AI comes at a crucial time when businesses are seeking more efficient and innovative ways to connect with customers.

  • Exit of multinationals takes toll on commercial real estate

    Exit of multinationals takes toll on commercial real estate

    Multinationals and local companies are leaving Nigeria in droves, ostensibly in search for cost-friendlier business locations. The multinationals’ mass exodus hasof left behind huge industrial buildings and warehouses, thereby increasing the stock of unoccupied commercial houses in the country. Already, the once vibrant commercial and residential sub-sectors of Nigeria’s real estate industry, said to be imbued with the potential to drive economic growth and stability, are wobbling. However, industry experts and stakeholders have weighed in on options to halt the depressing trend. Assistant Editor, OKWY IROEGBU-CHIKEZIE reports.

    Nothing better critically reflects on Nigeria’s poor ranking on the ease of doing business than the mass exodus of multinationals and other local companies from the country. A common thread that runs through the long list of companies that have so far voted with their foot is the search for cost-friendlier business locations, in the face of rising costs of doing business in Nigeria.

    However, the high cost environment is not the only factor driving away multinationals and other local companies and businesses from Nigeria. Companies, foreign or local, thrive in environments that have clear, stable and predictable regulatory frameworks. But, in Nigeria, frequent changes in government policies, coupled with inconsistent enforcement, have created a climate of uncertainty.

    Accordingly, these foreign and local companies face difficulties in planning long-term investments due to abrupt policy shifts such as sudden changes in tax laws, import restrictions and foreign exchange controls. Many of them that could not stand the hit are forced to exit the country.

    From Diageo, which is the most recent firm that exited Nigeria’s economic environment, selling its 58.02 per cent stake in Guinness Nigeria to Tolaram for about N103 billion ($70 million), to British drug maker GlaxoSmithKline Consumer Nigeria Plc. (GSK), Proctor & Gamble (P&G), and to Africa’s online retailer Jumia, which exited its food delivery services company, Jumia Food, to name but a few, it’s been the same story of rising costs of doing business and policy somersault, among other factors.

    With multinational firms across various sectors of the economy scaling down their operations, transferring ownership or selling their stakes, Nigeria’s push to open the floodgate of local and foreign investments to grow the economy and create jobs has continued to suffer a major setback. And there are fears that such setback will get worse now that the commercial and residential sub-sectors of Nigeria’s real estate industry have also been badly hit by the troubling trend.

    The crux of the matter is that the exodus of multinationals and the collapse of many local companies over Nigeria’s inclement business environment have left behind huge industrial buildings and warehouses, a development that has increased the current stock of unoccupied commercial houses in the country. This is so because some of the abandoned buildings have since been taken over by religious organisations and recreational centres.

    11 per cent decline in Lagos commercial real estate activities

    There has been a decline of commercial real estate development activities by 11 per cent in Lagos State in the past year, for instance. This is according to the 2024 Lagos Real Estate Development Pipeline Report by real estate research and data company, Estate Intel. While the decline underscores record-high inflation and a weakening currency, the impact of the exit of multinationals from the country is also not ruled out.

    According to the report cited by The Nation, the office sector recorded a slight increase in its development pipeline at 16.25 per cent of total stock compared to 14 per cent in 2022. As 13 per cent of the pipeline is nearing completion, this is expected to impact occupancy, particularly in the prime real estate sector of the economy, with key nodes such as Ikoyi and Victoria Island expecting 75 per cent of the supply by 2025.

    A Senior Analyst at Estate Intel, Dapo Runsewe, said: “The Lagos Office market is fully bracing macro-economic headwinds as rents have been subdued amid concessions to maintain occupancies. However, as companies opt to downsize or exit the market, occupancy rates are being impacted. Notably, Microsoft and Meta, occupiers of Kings Tower, recently opted to reduce their occupied space as they downsized their country operations.”

    Read Also: How to halt exodus of multinationals, by Obi

    On the other hand, the retail sector continues to be subdued with the bulk of development activity driven by hypermarkets and neighbourhood supermarkets. As a result, the larger retail developments make up 70 per cent of the pipeline, which is currently on hold. Interestingly, the 30,000m2 Orca Mall is the only project in active construction over 10,000m2 and the first project of this size to be undertaken in two years.

    “As macro-conditions continue to erode consumers’ purchasing power, formal retail malls have stayed resilient and maintained healthy occupancy rates at an average of 86 per cent as of Q1 of 2024. However, we’re seeing increasingly reduced footfalls in the malls outside of the festive season,” Runsewe said.

    Still on this, the Senior Analyst at Estate Intel said: “The macro-economic climate is difficult to ignore. It has particularly subdued construction activity across the board, with developers and investors opting for a cautious approach. That said, bright spots exist in the hospitality and industrial sub-sectors. As detailed in the report, Data Centres is an exciting sector to consider as investments are expected to drive supply to 200MW by 2025.”

    How multinationals’ exit hurt real sector

    It is easy to see why this trend is pain in the neck of experts and other critical stakeholders in the real sector. For one, the real estate is widely acknowledged as being essential to the growth and stability of the economy. Seen as an economic catalyst, the real sector is belived to have the capacity to significantly improve the economy through massive infrastructure development and urbanisation, job creation and social impact.

    That’s not all. The real sector, according to operators and experts, is also a hedge against high inflation or low economic growth. In Nigeria and many other countries, real estate is often considered the best long-term investment during periods of inflation. It also boosts capital appreciation, tourism and hospitality, Foreign Direct Investment (FDI) and revenue generation for the government.

    These must be why there has been persistent call on the government to prioritize policies that support sustainable urban growth. According to proponents of this call, this will make it easier for developers and home buyers to get financing and enhance the ease of doing business in the real estate sector, while also allowing the country to leverage the real sector as a viable tool for economic recovery.

    Real estate as economic growth engine

     The National Bureau of Statistics (NBS), in a report, said the real estate sector contributed approximately 6.60 per cent to Nigeria’s Gross Domestic Product (GDP) in Q4 of 2023, representing a notable increase from 6.18 per cent in the previous year. This growth underscores the sector’s resilience and its potential to significantly influence the trajectory of the country’s economic recovery.

    The real estate sub-sector has unfettered access to almost every aspect of the economy, which is why it is called the engine room of economic growth For instance, the expansion of the Nigerian tourism industry is aided by real estate development. Included in this is the establishment of hotels, resorts and recreational facilities, all of which generate employment and encourage local infrastructure such as utilities and transportation to meet visitors’ demands.

    Job creation, social impact

    The real estate sub-sector serves as a major employer, offering job opportunities across various skill levels, ranging from construction workers to architects, engineers and property managers. Real estate generates ripple effects across related industries such as manufacturing, finance and retail, thereby creating additional employment opportunities and fostering socio-economic development within communities.

    Infrastructure development, urbanisation also

    Real estate investment is a major factor in the development of infrastructure. In areas where there is demand for residential, commercial and industrial space, the sub-sector plays a major role. Improved roads, utilities and public facilities increase property values and draw in new investment, which promotes economic growth.

    In 2022, for instance, the share of the urban population in Nigeria remained nearly unchanged at around 53.52 per cent. Nevertheless, 2022 still represented a peak in the share, with 53.52 per cent. This trend underscores the growing demand for housing and commercial spaces, presenting lucrative opportunities for real estate investors and developers to capitalise on.

    FDI, revenue generation capacity

     International investors are drawn to a stable and thriving real estate sub-sector in the hope of capitalising on the growing real estate market. Foreign Direct Investment (FDI) provides a further boost to the real estate sub-sector and adjacent businesses by inflowing capital, fostering economic growth.

    Property-related taxes and real estate transactions also help the government to generate revenue. Tax revenue from real estate transactions and related activities rises as the real estate sector expands, funding public services and infrastructure.

    The government can rely on property taxes as a reliable and constant source of funding. The upkeep and enhancement of infrastructure and public services funded in part by these revenues can raise an area’s value as a real estate investment destination.

    However, with these mouth-watering derivables from the real sector now hanging in the balance, following the exodus of multinationals from the country, the Chairman, Lagos branch of the Nigeria Institution of Estate Surveyors and Valuers (NIESV), Gbenga Ismail, is understandably worried. He said the exit of multinational companies affected the two real estate sectors namely, the commercial and the residential sub-sectors.

    Ismail observed that there are not many of these exited multinationals that have not taken beyond two to three thousand square metres in office space. He said these will, however, impact much more on those who have invested in that sector as the economic downturn is further impacting negatively on businesses, especially those who would have taken the places or will replace them in this large investment.

    Sadly, the demand for such large spaces has not increased from 2011 to date, as rent has remained stagnant or reduced. “We don’t have so many people taking up these abandoned office spaces. The sector has been suffering this in the past eight years; rent payment has been stacked and, indeed, fallen. If you recollect, serviced apartments and some high end flats were going up for as high as $75,000 to $300, 000,” Ismail lamented.

    According to him, the expatriates that were taking up these apartments are not in Nigeria anymore, they have long gone about five years ago, especially in the oil and gas sector. Currently, what developers do now is build and sell. Hardly do people build to rent. The country’s economy has impacted negatively on the sector, especially the commercial real sector.

    Worrisome as the situation is, experts say that apart from addressing the country’s high cost environment and policy inconsistency in order to halt the exit of more companies, there is the need for existing and prospective investors to embrace opportunities presented by emerging trends such as green building initiatives, affordable housing schemes and innovative financing models to align their investments with sustainable development goals while maximising returns.

    They noted that by embracing these opportunities and overcoming existing challenges, the real estate sector can play a pivotal role in Nigeria’s economic recovery and long-term prosperity. They also stated that with Nigeria currently navigating its path toward recovery and sustainable development, strategic investment in real estate will remain instrumental in building resilient, inclusive and vibrant communities that propel the country toward a brighter future.