Tag: Business

  • Unilever to sell spreads business in global restructuring

    Unilever to sell spreads business in global restructuring

    Unilever Group, the parent company of Unilever Nigeria Plc, has indicated its intention to divest its spreads business as part of a global restructuring of its businesses.

    Unilever Group said the divestment was part of a strategic review aimed at accelerating sustainable shareholder value creation.

    Unilever Nigeria yesterday confirmed the plan to sell the spreads business but added that the announcement has no immediate effect on the activities of the Nigerian subsidiary. Unilever Nigeria’s share price remained unchanged at N33.15 per share at the Nigerian Stock Exchange (NSE).

    Chairman,   Marjin Dekkers, said the proposed sale of the spreads business and other restructurings were fully supported by the board of directors.

    According to him, the review that the board of directors of the Unilever Group has undertaken has been detailed and comprehensive and it has confirmed that the group’s model of long-term shareholder value creation has been successful and remains as valid as ever.

    Chief executive officer, Unilever, Paul Polman, said the group has decided that the sale of the spreads business would lead to accelerated development of its portfolio.

    “After a long history in Unilever, we have decided that the future of the spreads business now lies outside the Group,” Polman said.

    Nigerian shareholders had largely shunned a N43 billion share-acquisition bid by Unilever Overseas Holdings , United Kingdom aimed at acquiring a quarter of Unilever Nigeria’s shares to increase the multinational’s majority equity stake in the Nigerian subsidiary to 75 per cent.

    Unilever UK’s total shareholdings in Unilever Nigeria only increased by 8.49 per cent from 50.04 per cent to 58.53 per cent after the conclusion of acquisition bid. Besides, Unilever UK had resorted to mopping up the shares of Unilever Nigeria through the Nigerian Stock Exchange (NSE).

  • Promoting business, culture in Southwest

    In Nigeria, culture plays a dominant role in the lives of the people. It serves as a symbol of unity and help in shaping the way people perceive things. This is evident among the people of the South West where cultural norm and values are held sacred.

    As part of their culture, indigenous music has a lot of influence on their socio-economic lifestyle. It is perceived as a medium of communication where the instruments are used to send messages for correcting the ills plaguing the society or as a means of relating what the deities have concurred on issues of vital importance.

    The importance attached to their culture is evident in the way they greet, an attitude which has become part of their daily life. While greetings are exchanged, it is important for the people to smile and when asked about the wellbeing of someone, time is given to respond as this is considered to be polite.

    The Yorubas greet their elders with a lot of respect. The boys prostrate to greet their elders, while their female counterparts greet by kneeling on one or two knees depending on the tribe.

    Also, other aspects of the people’s culture are seen in the way they dance, in art works, dressing and philosophy. Proverbs and adages form an important part of their everyday language and are used extensively in all forms of communication, but music plays a dominant role in uniting the Yorubas without barriers.

    This has brought to fore the efforts made by Goldberg, also known as ‘Your Excellency,’ a product from the stables of Nigerian Breweries Plc, in promoting the rich cultural heritage of the people of the South West through music, like the Fuji t’o Bam musical concerts.

    It is a talent hunt initiative aimed at discovering promising Fuji artistes and empowering them to contribute to the growth of the entertainment culture of the people of the South West.

    It would be recalled that the brand in 2012 launched the Fuji t’o Bam initiative and has since then produced young Fuji musicians with bright future.

    Fuji music which has grown in leaps and bounds is a fusion of certain musical influences like ‘Sakara, Apala, Juju and to an extent, highlife. Indeed, the growth of Fuji music has been astronomical, particularly, since the mid-80s when the ace Fuji music artiste, Wasiu Ayinde Barrister waxed his ground-breaking ‘TALA-84’, apart from establishing his musical hegemony and imprint in the minds of the South west elite.

    To every Yoruba in the South West, Fuji music needs no introduction. It is so engrained in the socio-cultural life of the people such that it easily appeals to their feelings and admiration. This was one of the factors that led to the success of previous Fuji t’o Bam concerts organised by Goldberg in the South West.

    The indigenous musical platform, which concluded its fourth edition in 2016, had led to the discovery of Fuji talents. Apart from Tope Ajani, who after months of thrills, drills, excitement and emotions, emerged the Wura1 for the 2016 contest; Fuji t’o Bam has also brought to the limelight young Fuji musicians like Akeem Okiki from Osogbo in Osun State after winning the 2015 title; Twinzobia Twins from Ibadan, Oyo State in 2014; and Antenna, winner of the first edition in 2013.

    This year, Goldberg would bring the best of Fuji and Juju music under an umbrella body called “Ariya Repete”, which would commence audition and selection in major cities in the South West in April.

    It would be an unparalleled experience where young Fuji and Juju artistes would compete in their various capacities to win fabulous prizes and recording deals.

    Meanwhile, the inclusion of Juju music, christened ‘Juju to Gbayi’ into Goldberg’s musical concerts came from feedback from lovers of Juju music who felt marginalised and even tried to pass off as Fuji musicians so as to get a chance to contest.

    They felt the urge to partake in similar musical competition where Juju artistes can also be nurtured for future development.

    To achieve the desired results in this initiative, Nigerian Breweries Plc recently organised the Ariya Repete roundtable, like it did for Fuji t’o Bam to deliberate on how to make Ariya Repete a household emblem in Yorubaland.

    The special guest of honour was the Ooni of Ife, His Imperial Majesty, Oba Adeyeye Babatunde Enitan Ogunwusi, (Ojaja II), who was represented by Oba Adebiyi Asoya, the Asoya of Ile Asoya Kingdom.

    In the course of this, notable speakers such as Prof. Tunde Babawale, former Director and Chief Executive Officer of the Centre for Black and African Arts and Civilisation (CBAAC) and of the Department of Political Science, University of Lagos, gave the keynote address on the topic: Our Music as a Socio-Cultural Lubricant: Juju and Fuji Music Genres of Southwest Nigeria as Case Studies.

    He traced the origin of Juju music to the old Saro (Olowogbowo) quarter of Lagos where the music genre emerged from ‘asiko’ music associated with “area boys” in the quarter and added that it also incorporated Brazilian Samba elements and the guitar style of Kru sailors from Liberia.

    According to Babawale, the music of the culture of the people of the South West, which is Juju and Fuji, has positively impacted every area of life of the Yorubas, including the reduction of socio-economic tension and the prevalence of religious tolerance.

    Babawale posited that it was a man named Tunde King who later transformed ‘Asiko’music into Juju.  Tunde King and his contemporaries such as Akanbi Wright, J. O. Araba, Daniel Ojoge Aleshinloye and others introduced dundundrums, electric guitars and later acoustic guitars in the process of creating Juju music.

    He said until the 1960s, Juju music rendered in Oyo dialect was mainly performed in Lagos.  By the early 60, its performance had spread to other parts of Yorubaland incorporating other Yoruba dialects like Ijesa and Ekiti.

  • U.S. showcases business opportunities in Enugu

    The Foreign Commercial Service of the United States Diplomatic Mission to Nigeria has concluded a four-day outreach to Enugu State that focused on expanding commercial ties between the U.S. and Nigeria, especially the Southeastern geo-political zone.

    During the outreach, a team of trade and commercial specialists from the U.S. Mission to Nigeria, led by Commercial Counselor Brent Omdahl, held meetings with Enugu State Governor Ifeanyi Ugwuanyi, state commissioners, and other senior Cabinet-level officials on trade opportunities which will contribute to mutual prosperity and job growth for both countries.

    “This outreach demonstrates the strong U.S. business interest in expanding commercial ties with Nigeria,” Commercial Counselor Omdahl said.

    Governor Ugwuanyi and Commercial Counselor Omdahl discussed U.S. investments in Enugu State, including the on-going $700 million Motir DuSable solar plant project in the Nachi community of Udi local government area. At full capacity, the solar plant will add 300 Megawatts to the national grid.

    While in Enugu State, the U.S. Foreign Commercial Service participated in the 28th Enugu International Trade fair. The Foreign Commercial Service also hosted leading regional business owners at a workshop entitled: “Networking with the USA Business Summit and Conference – Enugu 2017”.

    “We are expanding our Networking with the USA (NUSA) program to key growth areas in Nigeria and we see Enugu as one such important growth area. During this program, we advised Enugu companies on best practices for engaging with American companies, in addition to discussing U.S. agencies to work with in order to take advantage of various partnerships,” Commercial Counselor Omdahl said.

    In the course of the Networking with the USA (NUSA) program, an American consular officer from the U.S. Consulate General in Lagos held a session with the business owners on the process for obtaining a business visa to America. The consular officer demystified the commonly held ideas about U.S. visa application process.

    The Foreign Commercial Service of the U.S. government works to promote the expansion of U.S. trade and investment to Nigeria through support of business partnerships between American and Nigerian companies.

  • Mentoring emerging business leaders

    At a two-day conference organised by Field of Skills and Dreams (FSD) and United States (U.S.) Consulate in Lagos, budding entrepreneurs got tips on how they can turn their innovation and ideas into successful businesses. WALE AJETUNMOBI reports.

    How can Nigeria harness its abundant human resources to become a developed and self-sustaining economy? Entrepreneurship is the answer, says the Consul-General of the United States (U.S.) Consulate, Mr John Bray.

    The envoy said if the energy and innovation of the youth are optimally harnessed through free enterprise, the magnitude of wealth that would be created from such endeavour could bring about irreversible prosperity and economic growth.

    The youths, he said, are the drivers of the 21st century economy, adding that it would be difficult for any developing nation to achieve growth without harnessing the potential of its youths in innovation and wealth creation.

    The envoy spoke at Emerging Entrepreneurs Conference held in Lags, where successful entrepreneurs from different business spheres engaged 102 young entrepreneurs in mentoring. The two-day event was organised by Field of Skills and Dreams (FSD) in collaboration with the U.S. Consulate.

    Businessmen and entrepreneurs, including the chairman of Channels TV, Mr John Momoh, co-founder and chairman of SAHARA Group, Mr Tonye Cole, Chief Executive Officer of Main One Cable, Mrs Funke Opeke, and CEO of W-FM, Mrs Toun Okewale-Sonaiya, were at the event to share their success stories with the participants.

    Bray said: “If there is anything that creates huge wealth for the economy in this modern age and brings a society out of poverty, it is entrepreneurship. It appeals to the ability of young people to use their creativity and innovation to generate wealth to enrich the economy and improve living standard of the people.

    “For a country with abundant human resources and youth population, such as Nigeria, embracing entrepreneurship will not only improve its productivity, it will also bring about irreversible growth of its economy and launch its youth on a path to change our world.”

    The envoy said the U.S. Department of State supports entrepreneurial activities across the world, because of the America’s conviction that entrepreneurship remains the key driver to achieve job creation, economic opportunity, political stability and a vibrant civil society.

    While advising the participants to look inward and create unique solutions to identified challenges facing the nation, Bray told the budding entrepreneurs not to be discouraged by people’s negative comment but to focus their attention on achieving success.

    Bray said: “We want to identify, train, mentor, incubate, provide access to marketing and funding, and create enabling environments and entrepreneurial cultures in Nigeria. I expect you not to take ‘no’ for an answer. You must believe in your idea and lose your fear of being told ‘no’ because you’re going to hear that a lot.

    “Find a few people who believe in you and your idea. Keep them close, because you will need them when you have heard your hundredth ‘no’. Don’t be shy about asking people for information or connections. The entrepreneurial world is built on people helping one another.”

    Momoh spoke about risk taking when he shared his success story with budding entrepreneurs. The Channels TV chairman said he resigned from his plum position at the Nigerian Television Authority (NTA) to establish the first private television station in 1992 when the terrain was “too dangerous” to take such risk.

    Momoh said Channels TV earned no revenue more than a year after it was launched, but said he did not waiver in his resolve to create the most trusted and professionalism-inclined media brand to change Africa’s broadcasting experience.

    The media mogul listed passion, vision, ability to take risk, positive mindset and decisiveness as part of the qualities which good entrepreneurs must possess to turn ideas to success stories.

    He said: “The story of Channels TV has been an interesting one in the past 21 years. We have grown to become a global brand, where professionalism and enterprise fixed into one. As we have seen today, the television station is the most trusted and most successful news organisation in Nigeria.”

    Cole described entrepreneurship as a “young concept” in Nigeria, saying the extant business laws and regulations only supported trading as central approach to create wealth. The SAHARA Group chairman said there is fundamental difference between trading and entrepreneurship, noting that an entrepreneur who wants to succeed must change his mindset away from trading.

    Charging the participants to dream big and start small, Cole said: “As budding entrepreneurs, you have to create things that people don’t understand. You have to conceptualise and start creating inventions that are not hindered by any existing laws.”

    Mrs Opeke, who spoke on How to get it right, shared her story on she leveraged on old friendship and connections to raise $200 million to create the largest Internet business in the country. She advised the participants to acquire lucrative skills and seek information on entrepreneurship ideas they have.

    She said: “You need to discipline yourselves about managing your time and keeping focus on your goals. You must strive to develop the capacity you have within you. You have a duty to tear down barriers and shatter obstacles hindering your ideas.”

    Permanent Secretary of Ministry of Wealth Creation and Employment, Dr. Olajide Bashorun, who represented the Commissioner, said the initiative was in line with Lagos government’s drive to promote employability and entrepreneurship among young people.

    The Executive Director of FSD, Mrs Omowale Ogunrinde, said the objective of the initiative was to mentor the emerging entrepreneurs through the success stories of successful entrepreneurs. She said the aim was to build the participants’ capacity and equip them with hands-on knowledge that would help them overcome fears.

  • Why big businesses can’t do without private jets, by Peterside

    Why big businesses can’t do without private jets, by Peterside

    In this piece titled: “Being seen above the clouds: Perception of business aviation in West Africa and how to affect it”, Atedo Peterside, the Chairman of ANAP Business Jets Limited, explains the advantage of private jets to businessmen.

    Business Aviation has a terrible reputation in West Africa. Unfortunately, private jets are still seen in the region as expensive toys for playboy millionaires, insensitive and wasteful Heads of States/senior government officials or politicians and others, who acquired their wealth through questionable means. And yet, it needs not be so.

    Private Jets can be, and are indeed an indispensable and efficient tool for big business in the West Africa region where efficient travel between neighbouring capital cities can still be a nightmare because many of our airlines are seriously challenged. The traffic between many of the smaller urban centres is not large enough to support regular scheduled services. For instance, three flights a week between Lagos and Freetown means that, to attend a three-hour Tuesday morning meeting in Freetown, a Nigerian business delegation may have to depart Lagos on Saturday morning and only get back home on Thursday afternoon. Even travel between capitals of two neighbouring countries like Abuja and Yaoundé remains a daunting task in 2017. As a general rule, commercial flights are only available to and from major hubs. Point-to-point travel, which bypasses hubs, is therefore only possible in West Africa via business aviation.

    ANAP Business Jets Limited is on a mission to correct the narrative surrounding business aviation in West Africa and, so far, we are succeeding. Serious business people are surprised when they discover that, by embracing the fundamentals behind a “sharing economy”, a modest financial outlay through the ANAP Jets Fractional Ownership platform can significantly transform their businesses by giving them access to a private jet “on demand” for a few years. This helps to eradicate their regional travelling headaches in a most efficient manner.

    For business aviation, the watchword for these products which embrace the sharing economy is “Pay less and fly more”. The alternative description is “Fly smart”.

    The first time I realised that private jets had become an essential or indispensable business tool in our region was when I had a series of meetings with successful mining companies in Western Australia some years ago. I was trying to sell them the West African mining story. Miners typically bring out large maps and when you discuss specific mineral deposits with them, their first question is “where is the nearest airport or airstrip” from that location?

    The bottom line is that, in the 21st Century, senior executives of successful mining companies (and other large businesses) are only largely interested in destinations that they can fly into and out of efficiently to explore opportunities. Because they are realists, they do not expect to find quality airlines to fly them to the hinterland. They expect to fly into a regional hub like Lagos, Abuja, Accra or Abidjan on a commercial airline and to transfer efficiently unto a 6-seater or 10 or 13-seater private jet or turboprop that will get them within no more than a one hour car-drive from their destination.

    Airports and airstrips are therefore vital towards opening up the hinterland. Viewed from this perspective, the presidents or governors who insist on developing modest airstrips in the hinterland should not be vilified because business aviation should/could be the forerunner that eventually leads to significant investment activity in their undeveloped backyard.

    In most parts of West Africa, there are large distances between urban centres. The days of Mungo Park spending months sailing up the River Niger are long gone. Businessmen want to finish their journey within a region inside one or two hours and only air travel can achieve that over long distances. Security concerns have also helped to create that mindset. Indeed, it might be pertinent to remember that, even Mungo Park never lived to tell us about his last journey up the River Niger. Today, international businessmen and big businesses in general will no longer agree to travel very long distances by road in undeveloped parts of West Africa because long distance road travel is just too risky and is also time consuming.

    There is a chicken and egg situation with provincial airports and airstrips in the sense that if you do not build them, nobody will come, but then an excuse for not building them also is that there is no guarantee that anybody will come just because you built them.

    Government policy on aviation should therefore be futuristic. We should not kid ourselves that the hinterland will open up itself. That may not happen or it may happen too slowly. Provincial airports and airstrips can be built very modestly and are relatively cheap to build in areas that have natural flat grasslands and that is true for large parts of West Africa. Airports and airstrips are a lot more expensive in swampy and/or hilly terrain.

    The natural order/sequence of development of the hinterland would entail the following:

    • Airports/airstrips first
    • Business aviation
    • Sustainable commercial airlines.

    Note that commercial airlines come last in the sequence. If they rush in too early, commercial airlines will fail because they will be flying with lots of empty seats. In many provincial locations therefore, business aviation will hold sway for a while.

    I have already mentioned earlier that safety should be the number one goal. According to the ICAO Safety Report 2014, Africa had approximately two per cent of global air traffic in 2014 and yet our share of global aviation accidents in that same year was 10 per cent. Another way to present these statistics is to point out that Africa’s accident rate was 12.9 per million departures, whereas the global average was 2.8 accidents per million departures. There is no excuse for that. We (Africa) can and should be as safety conscious as the rest of the world. We should have safe airports, safe skies and safe aircrafts among others. Our accident rate needs not be above the world average. Indeed, Africa’s accident rate can and should be in line with the world average – and this goal is achievable in less than a decade. After all, we do not encounter snowstorms, icy runways, amongst several other hazards that exist elsewhere.

    Embracing safety as a priority goal sounds so simple and yet, we have had some past Aviation ministers in the region that only embraced safety, as a priority, after their country suffered some horrific air crashes that were clearly avoidable. If you ask West Africans to choose between safe skies and national carriers, they will choose safe skies first. Our Aviation ministers should constantly ask questions about the surface conditions of all our runways, the quality of lighting (runways and taxiways), quality of communications between air traffic control and the pilots they are directing among others. We want to get to a position where we can say that we should never have an aviation accident anywhere in our region caused by these avoidable factors. Are we there yet? Sadly we are not there yet, but with a little more application and focus, we could be our way there.

    Many people in our region wrongly equate private jets with safety and regional airlines with high risk. This need not be so and the correlation is not that straight forward. It is the operator and the premium that he places on safety and the good practices that he adopts that makes the difference. A bad operator can therefore run a risky private jet business.

    It is for our Aviation ministers to ask the hard questions and help initiate and coordinate policies that will get West African aviation to global safety standards. Priority attention must be given to expanding existing airports and equipping them properly with terminals and other facilities to keep pace with growing passenger traffic whilst also building new airports and airstrips to open up the hinterland.

    Aviation is the preferred mode of travel for long distance travel in the future. Sadly, the pursuit of ill-advised and grandiose national carrier projects in the past, made us take our eyes off the safety ball. Fewer and fewer countries around the world care about a national carrier. Successive European countries have given up on the old-fashioned national carrier model. Most African countries have also jettisoned the idea. West African countries should not lose energy trying to repeat failed experiments from past years. Instead we should embrace “safety” as the watchword and the call to action in aviation.

    Business Aviation means different things to different people. The old fashioned idea of owning your own aircraft and trying to manage it yourself is fast falling out of favour. In the same way that many of us use Uber in various foreign cities rather than seeking to own cars in multiple locations, Fractional Ownership, Jet Cards and Charter Services (all provided by ANAP Jets), are smarter ways to fly. Governments too should be encouraged to embrace the shared economy model. Tying down state resources in an aircraft or fleet that hardly flies is wasteful, uneconomical and largely unaffordable.

    Owning your own jet leaves you vulnerable to uncapped bills. Meanwhile, all the business aviation products that companies like ANAP Jets offer enable you to ascertain and cap your costs. You decide how much you want to spend and we tell you how long or how far you can fly. There are no surprises because we take large chunks of the equity and ownership risks away from even our fractional owners.

    If you want to be seen above the clouds, then, it is also best to be seen to fly smart by capping your costs and transferring virtually all the ownership risks to companies like ANAP Jets. Done properly, business aviation in West Africa can, and should be hassle-free, more efficient, private, convenient and flexible. Modern companies like ANAP Jets are there to alleviate the ownership burden and replace it with a fixed fee, convenience and reliability.

    Finally, it is good to remember that business aviation has a positive social impact. The airlines in the region are not able to absorb all the indigenous pilots and engineers. Two pilots are deployed to fly a seven-seater Embraer Phenom 300 aircraft by ANAP Jets. This is the same number of pilots that are deployed on the largest commercial airliners with 500 seats. In a sense therefore, business aviation is more labour intensive and so, it contributes significantly towards reducing unemployment amongst highly skilled pilots and engineers in the West African region.

    • Peterside, who was the Chairman of Stanbic IBTC is the Chairman of ANAP Business Jets Limited.
  • ‘Youths, develop your business skills’

    Youths’ ability to develop their entrepreneurial skills has been described as one of the factors that can reposition them for leadership.

    Managing Director/Chief Executive Officer of Galaxy Transportation and Construction Services Limited, Mr. Babagana Dalori who made this known in Abuja while receiving an award from the FCT branch of the Nigerian Youth Council of Nigeria, described a regenerated entrepreneurial drive among youths as a major tool to fight economic recession.

    Dalori urged youths to be willing to take risk as he did when the decided to venture into tricycle business with what he earned during the National Youth Service Corps (NYSC).

    While adding that the award would spur into doing more for the youth, he said his decision not to wait for white collar jobs has benefited thousands of young people in the country.

    “I am advising them even before they can graduate from their various tertiary institutions; they should have a plan B in case they did not get any white collar job. They can at least start something with their plan B before they can secure a job,” he said.

    The president of the FCT branch of NYCN, Solomon Imoiveghe said Dalori was honoured as the role model of the Nigeria youth because of his initiative to empowering the youth and taking them from employee to employers.

    He said youths can learn and look up to him as he is an epitome of a silent achiever, who was not born with a silver spoon but has forged a name for himself yet with little no attention.

  • Fed Govt restates commitment to ease of doing business

    Fed Govt restates commitment to ease of doing business

    The Federal Government has reiterated its commitment to providing well-designed legislative framework to ensure ease of doing business in Nigeria.

    Minister of Industry, Trade and Investment Dr. Okechukwu Enelamah said this at the Japanese Business Mission to West Africa Business Seminar and Networking organised by Japan External Trade Organisation (JETRO) in Lagos.

    The programme had in attendance representatives of 14 companies  from eight countries, which include Japan, France, United Kingdom, South Africa, Ghana and United Arab Emirates.

    Enelamah said the fulcrum of the economy agenda of the Muhammadu Buhari administration was the ease of doing business in Nigeria for local and foreign investors.

    This agenda of the government, he said, has led to a number of bills  introduced in the National Assembly, which focuses on the ease of doing business in Nigeria.

    The minister asserted that to encourage foreign direct investments to Nigeria, with its high potentials for growth, there must be functional legal framework to ease the acts of doing business.

    He added that last year, the Federal Government inaugurated the Presidential Enabling Business Environment Council (PEBEC) with Acting President Yemi Osibanjo as Chairman.

    “I am the vice chairman and we are poised to work with stakeholders in the public and private sectors so as to identify obstacle of doing business in Nigeria and find possible solutions,” the minister said.

    Enelamah, who was represented by the Director General of Nigerian Investment Promotion Council, Ms Yewande Sadiku, noted that the Federal Government was poised toward increasing trade and business opportunities with other countries in its effort to diversify the economy.

    He said Nigeria’s population remains a force nobody can ignore in Africa as the country remains the 24th largest economy in the world and hope that by 2030, it will be the 19th economic giant in the world.

    The minister added that Nigeria is increasingly trying hard to diversify away from oil as service sector contribute the largest Gross Domestic Product for the Federal Government to the tune of 19.82 per cent in 2016 followed by agriculture.

    The  Director General, JETRO Paris, Susumu Kataoka, stated that the purpose of the visit was to know the business environment in Lagos and see the changes, processes and identify new business opportunities.

    He said Japanese companies were ready to do new businesses and expand their frontiers in African countries, especially in Nigeria.

    Kataoka restated the commitment of the Japanese government in investing $30 billion for sustainable development in African’s infrastructure,  technology transfer, improvement of living condition and regional stability.

     

  • Is airline business jinxed in Nigeria?

    Is airline business jinxed in Nigeria?

    A recent report released by the Nigerian Civil Aviation Authority (NCAA), the apex regulatory body overseeing airlines in the country revealed that the number of airline operators which peaked at over 150 as at the year 2000 have gone to a ridiculous low of nine operators currently, thus making keen observers of the nation’s aviation space to wonder if airline operation is indeed jinxed in Nigeria. Ibrahim Apekhade Yusuf examines the issues

    These are certainly not the best of times for the nation’s aviation sub-sector. Reason: majority of the airlines who hitherto commanded a lot of admiration from the Nigerian flying public, including the Nigeria Airways, the nation’s carrier, ADC Airlines, Afrijet Airlines, Air Nigeria, Albarka Air, Al-Dawood Air, Bellview Airlines, Capital Airlines (Nigeria), Dasab Airlines, EAS Airlines, Freedom Air Services, Fresh Air, Meridian Airlines, Nigerian Eagle Airlines, Okada Air, Sosoliso Airlines, to mention just a few have since gone into extinction, with only a fraction barely struggling to survive the hard times.

    According to the result of a survey carried out by the Nigerian Civil Aviation Authority (NCAA), the apex regulatory body overseeing airlines in the country, there has been a high turnover of airlines in the last 17 years.

    Mr. Sam Adurogboye, the NCAA’s spokesperson, who shared the outcome of the survey with The Nation at the weekend, said the number of airline operators which peaked at over 150 as at the year 2000 have thinned down considerably to nine operators at the moment.

    He listed a number of factors from poor managerial capacity of the operators, high cost of maintenance, credit crunch, poor business model, poor infrastructure, to mention just a few as being responsible for the parlous state of the sector.

    Reason for high turnover of airlines

    Adurogboye’s claim is further buttressed by experts, who equally hold the view and very strongly too that the sorry state of the nation’s aviation industry is a function of unfavourable operating climate, inconsistency in government policies, high cost of maintenance, credit crunch, poor business model, poor infrastructure, among other militating factors.

    Firing the first salvo, a player in the sector who simply gave his name as Dotun said the sector is plagued by a lot of problems which is rooted in the wrong business model adopted by a majority of the actors in the industry.

    Expatiating, Dotun said, “There are lots of things wrong with the system. I think the problem with the sector is symptomatic of the trouble with the country itself. This speaks to our penchant for allowing sentiments rather than intelligence to determine our reasoning. Most of the airlines that have become extinct today is as a result of allowing mediocrity to reign supreme when logic should have been the case.”

    Pressed further, he said: “There is an unconfirmed report that a particular airline, has since gained notoriety for laying off staff at the beginning of the year. This ploy is to simply ensure that no permanent staff in on its employment so that it may not have to pay severance package when they exit from the company. Most of their staff are on a short term contract.”

    Politics not ruled out

    Besides the issue of poor management and infrastructure, Mr. Daniel Adebusuyi, a stakeholder in the sector also argued matter-of-factly that a number of owners of airlines operating in the country are politically exposed persons, PEPs, such that once they fall out with the new government, their businesses are naturally affected as they loss patronage.

    A case in point, he says, is Slok Air, owned by former Abia state governor, Dr Orji Uzor Kalu, one of the political godsons of the then president Olusegun Obasanjo, who was forced to move his airline operations out of the country to the Gambia.

    “You may recall that Chief Olusegun Obasanjo’s led regime in 2004 forcefully revoked the license of Slok Air. Today, the airline is the major air carrier in the Gambia, and has other operating offices in Ivory Coast, Ghana, Senegal, Sierra Leone, Guinea and Liberia thereby giving quality employment to the citizens of its host countries. But for Obasanjo’s vindictiveness, Nigeria and her citizens would have enormously benefitted from the operations of Slok Air, especially in the area of employment.”

    A snapshot of the sector’s present standing

    Nigeria’s civil aviation industry is currently hit by a financial crisis which affects all airlines in the country, including the nation’s flag carrier Arik Air.  Arik Air and Aero Contractors have since been taken over by the Asset Management Corporation of Nigeria because of their huge debt profiles.

    On the other hand, according to the Airline Operators of Nigeria (AON), it had enumerated about 15 different charges imposed on them. These charges are blamed to have contribution for causing financial problems for the airlines.

    A recession, combined with a shortage of dollars, high costs and scarce fuel supplies have created the perfect storm for the industry.

  • ‘Govt reforms to strengthen institutions, business, says Saraki

    ‘Govt reforms to strengthen institutions, business, says Saraki

    The Federal Government is to address concerns over investments inflow and ease of doing business through its new reforms that will see the emergence of strong institutions to implement its agenda, the Senate President, Bukola Saraki has said.

    At a forum in Lagos, he expressed concern about the country’s low ranking on the ease of doing business, saying the government has set up a technical committee to  review institutional, regulatory and associated instruments affecting businesses.

    Represented by the Chairman, Senate Committee on Industry, Sam Egwu, Saraki added that there were many reform bills being worked on to jump-start the economy and strengthen institutions. He said one of the bills has the potential to cut poverty and reduce unemployment by creating a friendly environment for investors and small and medium enterprises (SMEs).

    “The bill is the Public Procurement Act Amendment Bill, which has already been passed by the Senate.

    ‘’Other bills aimed at improving our transport networks and maintenance culture includes the Private Sector Infrastructure Replacement and Protection Bill,” he added.

    He noted that the nation would require a collective approach to solve its insecurity  challenges, saying that the Federal Government, civil society groups, business and organisations shoulc fight insecurity to create an enabling environment where businesses will thrive  to ensure sustainable economic development.

     

  • AEDC launches business process reform project

    The Management of Abuja Electricity Distribution (AEDC) has launched the company’s Business Process Reengineering (BPR) project, which is a two-year project aimed at instituting a better work culture, greater productivity and improved customer service delivery.

    The 76 employees, who were selected as ‘Change Champions’, with the special task of driving the reform project, were also unveiled at the launch.

    Managing Director Ernest Mupwaya urged workers to strive towards excellence in their respective duties. He enjoined them to ensure honesty, integrity and be “customer-centred” in line with the company’s values.

    A statement at the weekend by AEDC’s Head of Public Relations and Media, Ahmed Shekarau, said Mupwaya reminded the workers they cannot continue to do things the same way and expect different result.

    He also reminded them that with the privatisation of the power sector, customers’ expectations from the company were high, stressing the need for them to adjust for improved service delivery.

    Coordinator of the project Mrs. Clara Musama announced that in the first phase of the project, which began last April, 136 business processes were mapped, 20 of which are totally new processes and are now ready for implementation.

    She added that some of the processes were being tested in the field.

    Mrs. Musama said the approved processes were arrived at after 40 workshops between April and November, and announced that a new company-wide organisational structure, which is aligned to the new processes, will be implemented soon.