The Nation Newspaper

Tag: competitive

  • Making the ports efficient, competitive

    Generally referred to as the ‘Gateway to the Economy’, the nation’s seaports remain critical to economic diversification. But, for the ports to play their critical role of driving diversification, operators and industry stakeholders say there is an urgent need to ensure that they become more economically efficient and competitive. They argue that efficiency ports will benefit the maritime industry and the economy more. Assistant Editor, MUYIWA LUCAS reports.

    It has become an annual routine, one filled with high hopes for the sector. However, the poser by the year end will be to what extent are these hopes realised? Last week, the Federal Government, through the Nigerian Maritime Administration and Safety Agency (NIMASA), released its maritime forecast for 2019/2020. Under the ambitious forecast, the government expects the maritime industry to contribute 10 per cent to the country’s Gross Domestic Product (GDP).

    The forecast, the second in the series, tagged: “Harnessing the Maritime and Shipping Sector for Sustainable Growth”, aimed at giving direction to investors and stakeholders in the industry in their planning and investment decisions as part of efforts to attract more foreign direct investment to the economy. Major plans covered by the forecast are the economic environment, the maritime industry (local and global), regulatory framework, and emerging opportunities and challenges.

    NIMASA Director-General (DG), Dakuku Peterside, who reckoned that the sector held high hopes for the country, revealed that the forecast will address how emerging trends in the global maritime industry would affect the Nigerian maritime sector as well as domestic factors that will influence the sector.

    “The maritime sector has the potential of contributing at least 10 per cent of Nigeria’s GDP in no distant future, as Nigeria has the biggest market in Africa; and generates about 65-67 per cent of cargo throughput in West Africa, and 65 per cent of all cargoes heading for these regions will most likely end up in the Nigerian market,” the DG said.

    The NIMASA DG also said the government has made consistent efforts to drive changes in the maritime and shipping sector through regulatory and infrastructural developments. He added that the main public bodies regulating the maritime and shipping sector had all keyed into the government’s strategies to reform the operating environment and improve on the country’s ease of doing business index, which has the potential of attracting more businesses to the maritime industry.

    A foremost freight forwarder, Lucky Amiwero, shares the views expressed by Peterside. He is optimistic of a bright year for most major ports. Looking into his crystal ball, Amiwero, who is the President, National Council of Managing Directors of Customs Licensed Agents (NCMDCLA), foresees a continued uptick in cargo for Apapa and Tin Can ports. He was, however, quick to caution that not all the ports will escape the pressures of rising volumes on infrastructure constraints.

    Perhaps realising the importance of maritime business to the economy, the Akwa Ibom State government, last year, announced the Power China International Group Limited Consortium (Bolloré-PowerChina Consortium) as the preferred bidder for the states’s Ibom Deep Seaport Project (IDSP). Upon its completion, the IDSP is expected to bring smart, world class port handling capacity to the doorsteps of Akwa Ibom State and serve the cargo handling demand of the West and Central African countries, including states in the Southsouth as well as Southeast regions of the country.

    The Secretary to the State Government, Emmanuel Ekuwem, expressed confidence of a boom in the state’s economy upon the completion of the project thus: “We are confident that the IDSP will be pivotal to the economic development of the state and the surrounding regions.”

    One measure to shore up the efficiency of the ports, according to Amiwero, is for the port managers to build up the refrigerated cargo ability and capacity of the ports, as well explore expansion plans for specialised cargoes.

    Vice President/Chief Executive Officer, ENL, Princess Vickky Haastrup, in an earlier interview with The Nation, argued that the maritime industry has not been given enough attention, notwithstanding that port is the gateway to  the nation’s economy.

    “When you come to Apapa, or Tin Can Island, you will know how well our economy is doing in terms of imports and exports. So, I don’t know why enough attention is not given to this sector; why we have such a decayed infrastructure. The access road to the port is impassable. Getting to the port is still a nightmare. It could take you four to five hours to even have access to the port operation,” she said.

    Stakeholders are of the opinion that if port operation is made smooth this year, and a proper enabling environment is provided, then the year will be more rewarding for the industry. One of the steps to ensuring such smooth operations is for government to take a critical look at the number of government agencies at the ports, which is viewed by majority as being an obstacle to operational efficiency. Some of these agencies include Nigeria Customs Service (NCS); Nigeria Food and Drug Administration Commission (NAFDAC); National Drug Law Enforcement Agency (NDLEA), Nigeria Agricultural Quarantine Service; Port Health; Nigeria Immigration Service; Police and Department of State Security Service.

    Haastrup described the existence of  plethora of agencies as “another bottleneck”. According to her, nowhere in the world does such number of agencies exist in the ports. “That’s not done anywhere in the world. I don’t know why NAFDAC is back. What is NAFDAC coming to do in the port? I don’t understand. They do not have to be present in the port unless they are called as the need arises. If it doesn’t arise, what are they coming for? Things like these, ultimately add to the delay in cargo clearance in the ports because everybody wants to feel important. Everybody wants to exert their authority. That’s how it’s been happening. We’re talking about ease of doing business,” she explained.

    Operators in the industry are convinced that if infrastructural dearth at the ports are addressed, and also ports and cargo operations decentralised, the port business in the country would be more beneficial to all involved in the industry.

    For instance, the Apapa port in Lagos, which began operations in 1970, was built with a capacity for 30,000 cargoes. Now, 49 years after, the same port harbours about 80,000 cargoes but without adequate infrastructural facilities to make it run effectively and efficiently.

    This development, stakeholders contend, makes it imperative for the government to ensure that ports in other parts of the country are positioned effectively for operations. Doing this will reduce the pressure on Lagos Ports. For instance, the Lagos ports, with a capacity utilisation of about 50 – 60 per cent presently, can shed some of this for the ports in the Southsouth – that is Warri, Port Harcourt and Calabar, with a combined capacity utilisation of about 25 per cent. This submission is important, considering the impact it will have on cargo movement, especially when the volume of cargoes transported by road to this region is considered.  Sadly, the Onne Port, which is fairly busy because of the oil and gas operations it handles also begs for good road infrastructure, just like its Lagos counterpart.

    The Association of Nigerian Licensed Customs Agents (ANLCA) Vice President, Kayode Farinto, regretted that Lagos Ports have become an embarrassment, especially when the revenue generated on daily basis from the place is considered.

    To make the ports perform better this year, Farinto said: “If the road is fixed, about 70 per cent of the problem of Lagos port has been solved.  The congestion on the sea and the road will be solved, and it will be better for all.”

    Yet, to exporters, the tariff charged and cost of clearing cargoes have become an important aspect that should be addressed if the industry is to be better positioned for business.

    A freight forwarder, who identified himself as Mr. Tony Okafor, bemoaned the cost of clearing cargoes and delivering same to their destinations, describing it as “ridiculous”.  “Our ports  is the most expensive in West Africa and coupled with the bank charges on the money loaned from the bank, everything is frustrating.”

    He lamented that given the parlous state of the roads around the ports, there is no cargo that does not go into demurrage  because the shipping companies will start collecting money immediately the cargo arrives at the port.

    Haastrup agreed: “When we talk about increase in cost of port business, everybody at one time shouted – terminal operators, but we have been proved right, that it was not terminal operators. You have NPA, NIMASA, freight forwarders, Customs Service, etc.  How many times has Customs Service increased charges? There is a wide gap between the Customs duty paid here and that in Benin Republic. Maybe we also need to see the Customs duty in Benin Republic and look at Customs duty in Nigeria. I’m not condemning the Nigerian government. I’m just trying to tell you that it’s not about terminal operators’ tariff. In Nigeria the duty on cars goes as high as 70 per cent, whereas the in Republic of Benin, it is like 10 per cent. That’s why you see a lot of smuggling because it is more convenient and far cheaper for people to go to Republic of Benin and try to smuggle into Nigeria. That’s why smugglers are mounting pressures on Customs Service because of that disparity and wide margin in Customs duty,” she explained, adding that NIMASA’s levy, compared to other agencies of such in Africa and in other parts of the world, remains high.

    Regulator’s intervention

    Transportation Minister, Rotimi Amaechi, informed stakeholders that the Federal Government had initiated reforms to facilitate the development of the “Blue Economy”, saying this involves the enactment of laws and domestication of relevant international instruments.

    These reforms, when implemented, will aid operations in and around the ports. For instance, over 40 per cent of the space at the Lagos Port Complex (LPC) and the Tin-Can Island Port occupied by empty containers, which do not augur well for port operations. In fact, one factor that stakeholders in the industry are unanimous on is the issue of holding bay. A holding bay is where containers are kept or stored after offloading their content.

    However, findings have revealed that many shipping companies do not operate holding bays, contrary to the terms of their licence. This has made stakeholders in the sector to submit that having such a facility and making it efficient, will prosper the industry this year and beyond.

    At the International Association of Port and Harbour (IAPH) Africa Region Conference held last September in Abuja, President Muhammadu Buhari aptly captured the importance of cargo evacuation thus: “After the issues of adequate security and transparency, the one other important factor deciding the competitiveness of ports is that efficiency with which cargoes are evacuated to and from the ports.”

    It is therefore, instructive that early this year, the Nigerian Ports Authority (NPA) has begun to enforce the delivery of all empty containers at designated shipping companies holding bays, to manage the traffic in and around the Lagos ports. The regulator also vowed to sanction truck drivers, who failed to comply with directive against bringing empty containers directly to the ports. The Authority has also advised shipping companies to stop using their terminals at the port to store empty containers and no truck driver or owner must be allowed by any NPA official and terminal operators to bring empty containers into the port after delivering goods to importers. The terminal operators are to also declare the number of empty containers in their terminals periodically.

    New incentives

    The Nigerian economy relies heavily on trade and over 70 per cent of the country’s external trade is routed through the Apapa habour. The poor state of access roads to the habour, home to the two biggest seaports in the country, has grown into a national nightmare with a paralysing effect on socio-economic life within Apapa, including the evacuation of cargoes from the Lagos and Tin Can Island ports respectively.

    Last December, NPA Managing Director, Hadiza Bala-Usman, arising from a meeting with stakeholders in the sector, rolled out a regime of palliatives to reduce the financial burden of shippers transacting business in the port, facilitate quick evacuation of cargoes and encourage faster return of empty containers to the port, among other benefits.

    For instance, effective from December 18, 2018, the rent-free period for cargoes stowed at the terminals was increased from three free days to 21 free days, for the next four months. The demurrage free period on return of empty containers was increased from five days to 15 days as well.

    To further ameliorate the hardship faced by cargo owners, shipping companies were directed to immediately deploy barges to evacuate empty containers from the port and take steps to clear the backlog of empty containers under their purview. In addition, terminal operators were advised to negotiate and grant waivers to consignees to facilitate the evacuation of these cargoes, and mitigate against huge financial loss for the terminal operator as well as the consignee.

     

    Intermodal Connectivity

    The NPA, it was gathered, is keen on establishing a seamless intermodal system that allows cargoes to be evacuated from the nation’s port by road, rail and inland waterways. This effort, it is said, would ultimately eliminate delays and make Nigerian ports globally competitive.

    It will be recalled that in 2013, there was an attempt to commence a scheduled freight service for the evacuation of cargo by rail at the nation’s premier port in Apapa. According to the Nigerian Railway Corporation, Apapa and Onne seaports are currently the only two connected by rail of the country’s six major seaports.

    But, despite being the cheapest mode of transport, the percentage of cargo evacuated by rail from the port, remains abysmally low, leading to the congestion experienced at the Lagos ports, since the huge volume of imports being evacuated are mainly by road.

    It is believed that having an efficient interconnectivity will improve the country’s economic competitiveness as targeted under the Economic Recovery and Growth Programme (ERGP). Hence, it becomes imperative that every port must have the compliment of rail infrastructure.

    The NPA projects that by the end of 2021, the ports will be linked by standard gauge railway across the main North-South trading route.

     

    Improved cargo clearance

    According to the NPA, the regulator, like other IAPH Member Ports, is committed to the provisions of the Convention on Facilitation of International Maritime Traffic (FAL) and  has adopted measures that would keep to a minimum, time spent for port traffic flow arrangements  such as loading and unloading; customs clearance; and provision of aids to navigation.

    Besides, the regulator, having succeeded in helping shippers to regain the right to choose the port to land their shipments, irrespective of the type and quality of the cargo, has also stepped up collaborative efforts with the Nigeria Customs Service (NCS) and other sister agencies on the implementation of the National Trade Platform (NTP).

    When achieved, the initiative is believed to have the capacity to revolutionise the cargo supply value chain in the country as it will make cargo clearance simpler, faster and more transparent. The project comprises the deployment of a National Single Window along with the provision of scanning services at all the ports.

    The NIMASA DG also disclosed that the government had made consistent effort to drive changes in the maritime and shipping sector through regulatory and infrastructural developments. He added that the main public bodies regulating the maritime and shipping sector had all keyed into the government’s strategies to reform the operating environment and improve on the country’s ease of doing business index, which has the potential of attracting more businesses to the maritime industry.

    If Dakuku’s assurances of NIMASA’s resolve to push for reforms that will help grow the maritime sector prevails, then government, stakeholders said, would have ensured that freight forwarders and all involved in the sector, are not frustrated in the process of carrying out their business, while the ease of doing business mantra would have been aided.

  • ‘Every state is viable, can be competitive’

    ‘Every state is viable, can be competitive’

    The National Competitive Council of Nigeria (NCCN) has launched the maiden edition of its National Competitiveness Report and Sub-National Index, ranking the 36 states and the Federal Capital Territory (FCT) in key areas, including human capital, infrastructure, economy and institution. The overall report shows that Lagos came out tops, followed by Delta and Rivers states. Chika Mordi, CEO, NCCN in this interview with FRANCIS AMADI, looks at details of the report and its importance for improved governance.

    Having successfully launched this report after about two years of rigorous work, what is your excitement today?

    Well the excitement is that for the first time ever we have an index that measures the states in terms of how competitive they are. This is a combination of almost 20 months of hard work, sometimes with limited resources and we have got to where we are today and people could see where their states stand, which policies are working and which policies are not working, and this could help governance at the state level. This is particularly important because states play a key role in positive economic outcomes that affect their citizens, particularly in employment generation. Unemployment is connected to poverty and poverty reduction is primarily resolved by job creation and when you have competitive environment businesses prosper and create jobs.

    What will be your expectation from states and other stakeholders now that the result of the report is out?

    What we hope, and to be frank with you, we are not just waiting for reaction; we are going to go all out to engage them positively to improve on areas where they are challenged and to help them consolidate on the areas where they are doing well. It not advisory, it is very much of collaboration. We may see states ranked high being happy with the report and states ranked low being unhappy with it, but I must caution, it is important that they look at the total result, not just the aggregate ranking. They should look at the pillars and sub pillars so that they can be clearer how the ranking came about, so that they could use it as basis for improvement on what they are currently doing.

    Based on the outcome of the report, indicating that Lagos, Delta and some other states have done well, what lessons can be drawn from their performance?

    I have said this before, we have to be careful when we say a particular state has done well aggregate wise. It is important that you understand where they have done well because there is something to learn from every state because we have about more than 26 pillars on which they are measured and within that, there are other micro businesses. But, specifically, Lagos has done very well in terms of internally generated revenue which has helped government financing, brought stability and made the state more robust. They also have had a natural resource advantage of having two sea ports and an International Airport, and the legacy of an industrial base and wealthy large population. Also the state has been deliberate in business interventions, so there are some positives that come from that. Lagos also has the Corporate Affairs Commission office, which makes business registration a lot easier, and not every state is afforded that advantage. However, I can’t remember precisely, but it must be noted that every state in Nigeria is viable because the ultimate resource of wealth creation is the people and they all have them in abundance. If you search very well, there is natural resource in every state that could give them competitive advantage, and it’s just about identifying them, having policies that allow businesses explore those advantages and by so doing create jobs and reduce poverty. These will create revenue for government and help project execution. But if you base your income from allocation at the centre, that is federal allocation, then, competitiveness will not come.

    In most of the rankings, Enugu came around top five and I will be wondering how this has become possible given that Enugu is predominantly a civil service state. Virtually all the industries inherited from the old South Eastern Region being the then capital are all gone. How would you defend this report before critics?

    Look, everyone has his or her opinion and is even better to have an opinion if it’s informed. However, our methodology is very clear and we have stated it clearly for everybody to see. The weight we attach to each of the pillars, our survey on how we got our primary data and secondary data are clear. The way we analysed the results are also very clear, we did a lot of cost valuation, our results are replicable, so people can test our methodology.  Given all that, what should be asked about Enugu is, which pillars did they score high and which pillars did they not score high? And if you look at the pillars you will see that very clearly. So for example, when you talk about transportation, there is an airport in Enugu. It was the capital of the old South Eastern Region, there are legacy connectivities that exist and these are considered when it comes to transportation. Also look at the human capital pillar; here you look at the level of education, number of schools. That is very clear. If you look at the gender representation, which is the number of female participation in state activities, that is clear. If you look at health, in terms of infant mortality rate that is also clear, number of hospitals when compared to other states of the federation. When you also look at their finance, how leveraged they are, how much revenue they generate, fiscal discipline and all that. There are so many other considerations. We are very confident of the report we have for each state. Every state has their own strength, in some areas they did well and in other areas they lagged. And on aggregate for the country, we are not doing well. So if you look at national competitiveness as country, we are weak. Coming first is good, but as a country we have problem with our competitiveness. So this is a relative exercise, it’s not absolute. It’s still challenged.

    This is the first of its kind we are having this report, how often are we going to be seeing it?

    This is going to be an annual report. We expect subsequent actuarial to be even better because you learn from every experience. There are things we would have loved to do that we couldn’t  do, there are some things that were constrained, there are things you simply can’t do. So, in statistics, history matters a lot because you can draw trends. There was nothing to draw from the first exercise because it was the first, but in subsequent ones, we expect that there will be historical data from index and off-index to draw from.

    The National Competitiveness Council of Nigeria and reason behind the  report.

    The National Competitiveness Council of Nigeria (NCCN), is a public-private sector partnership that aims to boost Nigeria’s business competitiveness and ability to attract local and international investment. This report has become crucial for Nigeria’s government and private sector to engage in developing a clear competitiveness agenda and implementing vibrant competition strategies centered on creating the appropriate business environment with the aim of boosting collective prosperity in Nigeria. Over last 20 months, NCCN working with the World Bank, UK’s Department for International Development (DFID), Michael Porter Institute for Strategy and Competitiveness and the Mexican Institute for Competitiveness with sponsorship from Ford Foundation and support from Tony Elumelu Foundation have worked hard to develop the report which is expected will spur policy adoption and global best practice. What we did was to set parameters for assessing the competitiveness of the 36 states of the federation including the Federal Capital Territory, Abuja, and based on those parameters that have pillars and sub-pillars around macro-economics, human capital, infrastructure, trade, settlement and enforcement, we came out with these reports.

  • ‘Every state is viable and can be competitive’

    ‘Every state is viable and can be competitive’

    The National Competitive Council of Nigeria (NCCN) recently launched the maiden edition of its National Competitiveness Report and Sub-National Index, ranking the 36 states and the Federal Capital Territory across key areas, including Human Capital, Infrastructure, Economy and Institutions, with overall report showing that Lagos came out tops, followed by Delta and River states. Chika Mordi, CEO, NCCN in this interview with FRANCIS AMADI, looks at details of the report and its importance for improved governance.

    HAVING successfully launched this report after about two years of rigorous work, what is your excitement today?

    Well, the excitement is that for the first time ever we have an index that measures the states in terms of how competitive they are. This is a combination of almost 20 months of hard work, sometimes with limited resources and we have got to where we are today and people could see where their states stand, which policies are working and which policies are not working, and this could help governance at the state level. This is particularly important because states play a key role in positive economic outcomes that affect their citizens, particularly in employment generation. Unemployment is connected to poverty and poverty reduction is primarily resolved by job creation and when you have competitive environment businesses prosper and create jobs.

    What will be your expectation from states and other stakeholders now that the result of the report is out?

    What we hope, and to be frank with you, we are not just waiting for reaction; we are going to go all out to engage them positively to improve on areas where they are challenged and to help them consolidate on the areas where they are doing well. It not advisory, it is very much of collaboration. We may see states ranked high being happy with the report and states ranked low being unhappy with it, but I must caution, it is important that they look at the total result, not just the aggregate ranking. They should look at the pillars and sub pillars so that they can be clearer how the ranking came about, so that they could use it as basis for improvement on what they are currently doing.

    Based on the outcome of the report, indicating that Lagos, Delta and some other states have done well, what lessons can be drawn from their performance?

    I have said this before, we have to be careful when we say a particular state has done well aggregate wise. It is important that you understand where they have done well because there is something to learn from every state because we have about more than 26 pillars on which they are measured and within that, there are other micro businesses. But, specifically, Lagos has done very well in terms of internally generated revenue which has helped government financing, brought stability and made the state more robust. They also have had a natural resource advantage of having two sea ports and an International Airport, and the legacy of an industrial base and wealthy large population. Also the state has been deliberate in business interventions, so there are some positives that come from that. Lagos also has the Corporate Affairs Commission office, which makes business registration a lot easier, and not every state is afforded that advantage. However, I can’t remember precisely, but it must be noted that every state in Nigeria is viable because the ultimate resource of wealth creation is the people and they all have them in abundance. If you search very well, there is natural resource in every state that could give them competitive advantage, and it’s just about identifying them, having policies that allow businesses explore those advantages and by so doing create jobs and reduce poverty. These will create revenue for government and help project execution. But if you base your income from allocation at the centre, that is federal allocation, then, competitiveness will not come.

    In most of the rankings, Enugu came around top five and I will be wondering how this has become possible given that Enugu is predominantly a civil service state. Virtually all the industries inherited from the old South Eastern Region being the then capital are all gone. How would you defend this report before critics?

    Look, everyone has his or her opinion and is even better to have an opinion if it’s informed. However, our methodology is very clear and we have stated it clearly for everybody to see. The weight we attach to each of the pillars, our survey on how we got our primary data and secondary data are clear. The way we analysed the results are also very clear, we did a lot of cost valuation, our results are replicable, so people can test our methodology.  Given all that, what should be asked about Enugu is, which pillars did they score high and which pillars did they not score high? And if you look at the pillars you will see that very clearly. So for example, when you talk about transportation, there is an airport in Enugu. It was the capital of the old South Eastern Region, there are legacy connectivities that exist and these are considered when it comes to transportation. Also look at the human capital pillar; here you look at the level of education, number of schools. That is very clear. If you look at the gender representation, which is the number of female participation in state activities, that is clear. If you look at health, in terms of infant mortality rate that is also clear, number of hospitals when compared to other states of the federation. When you also look at their finance, how leveraged they are, how much revenue they generate, fiscal discipline and all that. There are so many other considerations. We are very confident of the report we have for each state. Every state has their own strength, in some areas they did well and in other areas they lagged. And on aggregate for the country, we are not doing well. So if you look at national competitiveness as country, we are weak. Coming first is good, but as a country we have problem with our competitiveness. So this is a relative exercise, it’s not absolute. It’s still challenged.

    This is the first time we are having this kind of report, how often are we going to be seeing it?

    This is going to be an annual report. We expect subsequent actuarial to be even better because you learn from every experience. There are things we would have loved to do that we couldn’t  do, there are some things that were constrained, there are things you simply can’t do. So, in statistics, history matters a lot because you can draw trends. There was nothing to draw from the first exercise because it was the first, but in subsequent ones, we expect that there will be historical data from index and off-index to draw from.

    The National Competitiveness Council of Nigeria and reason behind the  report.

    The National Competitiveness Council of Nigeria (NCCN), is a public-private sector partnership that aims to boost Nigeria’s business competitiveness and ability to attract local and international investment. This report has become crucial for Nigeria’s government and private sector to engage in developing a clear competitiveness agenda and implementing vibrant competition strategies centered on creating the appropriate business environment with the aim of boosting collective prosperity in Nigeria. Over last 20 months, NCCN working with the World Bank, UK’s Department for International Development (DFID), Michael Porter Institute for Strategy and Competitiveness and the Mexican Institute for Competitiveness with sponsorship from Ford Foundation and support from Tony Elumelu Foundation have worked hard to develop the report which is expected will spur policy adoption and global best practice. What we did was to set parameters for assessing the competitiveness of the 36 states of the federation including the Federal Capital Territory, Abuja, and based on those parameters that have pillars and sub-pillars around macro-economics, human capital, infrastructure, trade, settlement and enforcement, we came out with these reports.

     

  • Jumia: our prices ‘re reasonable, competitive

    Jumia: our prices ‘re reasonable, competitive

    E-commerce pioneer Jumia Nigeria said the fluctuating foreign exchange rate that affects the prices of goods and services has made it imperative for people to look for the most convenient channels and affordable means to procure goods and services.

    In a statement, it said its prices are reasonable when compared with those of international e-retailers such as Amazon and Aliexpress.

    “We offer the best prices. For instance, the iPhone 8 64GB on amazon.com shows a price of $825 which when converted to local currency is about N296,175. On Jumia, it sells for N281,999. Even a quick price comparison of popular outdoor markets and physical stores shows that Jumia is keeping good on its word of giving shoppers the best prices. We remain competitive, and in several cases cheaper than several well-known retail shops, outlets and open air markets such as the Saka Tinubu phone village in Victoria Island, Lagos.

    “For instance, the Samsung 32-inch sharp TV retails for N80,000 on Jumia, while the same is sold on competing retail site for N90,000. The PS4 500GB bundle is being sold for N119,000 on Konga and N113,890 on Jumia.

    “The Camon CX Air 5.5 inch currently retails for N40,700 on Jumia while the very best price at other offline stores across the country is N40,800. Also, the iPhone 7 plus 32GB is also available on Jumia at N260,925 but at one popular offline physical stores, the best price is N325,000. At that same offline store, the Samsung S8 (4g+64g) retails for N252,000 while Jumia maintains a price of N219,999.”

    Jumia Nigeria’s Chief Commercial Officer Shobhit Pandey says that Jumia’s best price strategy is coupled with the widest range of genuine products to help shoppers stretch their naira and get more value out of their budget and spending.

    “There are more than 1.4 million products on Jumia.com.ng, ranging from furniture to baby products to electronics. Our commitment is to consistently bring shoppers the widest range of genuine products at the best prices,” Pandey said.

    Head of Engagement Marketing Ojuola Asuquo said customers are protected on Jumia, adding that this is not the case with most physical stores in the country.

     

     

     

    He said: “Jumia customers can pay cash on delivery, enjoy a seven-day return policy, have access to device insurance, and also enjoy free shipping offers and discount vouchers.

    “For those who like to shop abroad, Jumia features international stores where you can shop and pay in naira and enjoy local shipping rates,” Asuquo said.

  • ‘Firms should invest in their lawyers to remain competitive’

    ‘Firms should invest in their lawyers to remain competitive’

    Mrs Mfon Ekong Usoro is former chairman, Nigerian Bar Association Section on Business Law ( NBA-SBL). She is a former Director-General of the Nigerian Maritime Administration and Safety Authority (NIMASA), and Secretary-General, Port State Control Memorandum for West and Central African Region of the World Trade Organisation (WTO) and member, National Fleet Committee. Besides, since 2009, she has been sponsoring the Lawyers’ Table Tennis Open. In this interview with Legal Editor JOHN AUSTIN UNACHUKWU, Mrs Usoro speaks on the Lawyers’ Tennis Open, maritime, the challenges of globalisation and others.
     

    THE Nigerian Bar Association (NBA) elections are around the corner, what will you be looking out for?

    That is the easy one. People, who know me, will tell you that Mfon will look out for competence, capability, integrity, exposure, with a national and global outlook.

    How do we equip our young lawyers to meet  globalisation challenges in an Information Communication Technology (ICT) age?

    Specialisation, I would say. Globalisation results in more sophisticated businesses, which in turn, requires specialised knowledge to advise on complex transactions or cases. Law firms and young lawyers would do well to invest in the acquisition of expertise to offer competitive services.

    Young ones, as the millennials, should explore how they could use new technology to their advantage. ICT is a tool for growth and must be so approached and who is better to exploit ICT than the younger ones? I agree that a lot depends on the young lawyer. The system is rough and has always been. What we, as parents and employers, do is to create opportunities, the young ones must grab the opportunity, run with it, distinguish themselves from the pack and become our teachers.

    Alternative Disputes Resolution (ADR) mechanisms have been adjudged  an integral and essential part of commercial life. Do you think that we have developed our ADR institutions fully enough to play this role in a globalised world?

    Yes, we do have very many local experts in ADR. We do need to be more courageous and assertive in ensuring that as a norm, domestic experts are engaged by governments and Nigerian registered companies. We have to realise that we do ourselves no favour if, at the time of negotiation of contracts, we fail to insert clauses that will guarantee these opportunities to our local experts.

    Appraise the Mfon Usoro Lawyers’ Tennis Championship, which you floated and sponsor yearly.

    The quality of the tournament continues to improve each year. Our strategic partnership with the Nigerian Table Tennis Association is probably one of the best decisions we made. The officials have contributed tremendously in uplifting the standard of play. I have to say that the young ones on the street, who do the leg work, have performed exceptionally well in their commitment to the Lawyers’ Table Tennis Open.

    Do you think the championship has achieved the desired objectives ?

    We have observed with pleasure the increasing popularity of the championship among  lawyers. It appears that we have achieved the objectives,  but as you know, one must raise the bar and  set new goals. I need to have more female lawyers participate in the tournament.

    Is that all?

    It is really satisfying to watch lawyers relax in a non-contentious, non-competitive atmosphere, where no one is trying to impress clients. Both the young and old lawyers generally have a good laugh. Some older lawyers, who used to play table tennis, seized the opportunity to showcase their skills and have fun doing so. The free medical screening at the last AGC demonstrated the negative effect of this high-octane profession on our colleagues. We really must grab opportunities to work on our health – that is what the  Lawyers’ Table Tennis Open does for lawyers.

    What is the next stage for the championship?

    The last practice session was held last week. I understand more lawyers from outside Lagos will participate in this year’s championship. I am very delighted at that because, so far, I think it is only the Ibadan Bar that has seriously participated in the championship. We aim to attract lawyers from every part of Nigeria and more female lawyers in future.

    How is the Committee on National Fleet faring? What are we to avoid in view of what happened to our former national fleet?

    Minister of Transportation, Hon. Rotimi  Amaechi, is very committed to the implementation of the Nigerian Maritime Administration and Safety Authority (NIMASA)  Act aimed at growing the Nigerian tonnage and the participation of Nigerian registered ships in maritime transportation. Those provisions have not been enforced since the passage of the Act, so the industry is pleased that a concerted effort is underway to trigger the attainment of Sections 35 -37, which say that Nigerian-owned and Nigerian registered vessels should operate on international waters and not be limited to domestic trade. The committee has effectively marketed Nigeria to serious shipping companies desirous of participating in international seaborne trade.

    What are your committee’s terms of reference? What can it do to help the country avoid the mistakes of the Nigerian National Shipping Line (NNSL)?

    The terms of reference  of our committee are not to set up a national fleet in the sense of government-owned vessels. The Act mentions national carriers as a status granted to ships, who satisfy the criteria prescribed in the Act. The shipping company so identified will enjoy preferential rights to carry inbound and outbound government cargoes. Ownership, again, as prescribed by the Act will be 100 per cent private sector-owned. Given that understanding, the scenario is different from the previous effort of the Federal Government to jumpstart international carriage by Nigerian vessels where ownership and operation of the shipping company and vessels were public sector driven. The question of repeating the mistakes of NNSL, therefore,  does not arise. The realisation among industry players is that the government has a role to play to facilitate the entry of private entrepreneurs into that market, hence the formation of the committee by the Minister.

    Nigeria’s future lies in  her  vast ocean wealth, which remains untapped. How do we explore the ocean potential, especially in the face of declining global oil revenue and the need to explore non-oil sources.

    The response to that question is not a one-paragraph or even one-page matter. However, the starting point is for the country to recognise that Nigeria has a relatively untapped source of wealth creation, which is  the ocean and seas. Second, is to institutionalise a collaborative effort between the relevant Federal Government (FGN) Ministries Departments and Agencies (MDAs), state MDAs and the private sector to develop a sustainable and profitable approach to converting the “potential” to actual wealth. This will see maritime and shipping have a pride of place in all the growth policies and plans of the FGN unlike where maritime resources hardly have a mention and, when you remember, is pushed under the broad infrastructure spectrum.

    So, how do we get there?

    I have to mention that I think we are there or getting there. Rt. Hon.  Amaechi has an acute awareness of the centrality of shipping and marine resources to economic development. He also appreciates the linkage between integrated transportation system, exploitation of marine resources and real growth. We are heartened that the Presidency is of the same view going by the recent focus of the Vice President on ports and marine related developments.

    Resolution of disputes, especially commercial disputes, is a  major factor considered by investors. How do you think we can reform our judicial processes to expedite justice delivery and meet foreign investors’ expectation?

    Certainty and confidence in the judicial system support growth of business. Investors look out for that to assess the security of their investments in any country. Lawyers, who advise investors and, indeed, investors themselves, should be able to predict with a reasonable amount of certainty the outcome of certain disputes and duration of matters by a review of the jurisprudence and available precedence. Consistency, within reasons of course, in judgments, will achieve this. Case management by the judiciary, which has been developed in Lagos State for instance, should be a nationwide practice and religiously enforced. We, lawyers, must discontinue the practice of frivolous applications intended only to sustain the status quo, which favours the client bearing in mind that the system we help nourish may work against our clients in other matters and that it stymies the growth of a robust economy which would guarantee more customers for lawyers.

     What are legal issues are being canvassed  at the International Maritime Organisation (IMO) and the World Trade Organisation ( WTO and how do we benefit from them?

    IMO, yes, as the Secretary-General of the Port State Control Memorandum for West and Central African Region(WTO),  very tangentially and limited to my membership of the International Bar Issues Commission on International Trade in Legal Services, issues for the IMO are around the implementation of IMO instruments, which protects and preserves the marine environment while accommodating sustainable uses of the oceans and seas for economic development.

    The responsibility for ratification, enforcement and compliance with international conventions and instruments lies on member states. That means, Nigeria being a flag state, coastal state and port state, is obliged to enact laws and enforce laws that will make it a responsible flag, coastal and port state.

    Recently, it was announced that Nigeria has exited  recession.  How do we increase our Gross Domestic Product ( GDP) to sustain this position and improve the well-being of Nigerians?

    Was that not a comforting news? At a micro level, I know we have surfeit of good growth-oriented policies lying somewhere and local experts. So, at a macro level, I would say, pro-investment policies and laws, consistency in execution of those policies and placing capable people to implement are the ways to go. The best way to achieve these is to invest in, build and sustain strong institutions. If that is achieved, Nigeria will witness a sustained growth pattern and be able to absorb without falling into recession or any global economic hiccup.

     

     

     

  • ‘Requisite technology, competitive skills ’ll drive manufacturing’

    ‘Requisite technology, competitive skills ’ll drive manufacturing’

    Nigeria can only come out of recession if the manufacturing sector is equipped with requisite technology and competitive skills to drive the economy, the General Manager, BEAMCO  Nig. Limited, Mr. Emile Bado, has said.

    He said there was the need to support the productive sector with the necessary machinery and raw materials, arguing that a country that cannot produce and export to earn foreign exchange cannot thrive.

    Speaking with The Nation in Lagos, Bado said, for instance, that the manufacturing sector has been held down by poor electricity supply, which adversely affects its competiveness.

    He regretted that over 30 per cent of manufacturers’ working capital is spent on generating electricity aside other capital projects that should have been otherwise provided by the government.

    The industrialist said although, his company wanted to help the industrial sector to run more efficiently through the supply of compressors, machinery as well as engage in repairs and serviAces, the nation’s poor infrastructure particularly power remained stumbling block.

    “My expectation is to help manufacturers work more efficiently. My company also wants to help indigenous manufacturers in particular areas where we have competencies and also build skills and encourage training for fresh graduates,” he said.

    Bado urged the government to expedite action on the provision of regular power supply, noting that this will drive the manufacturing sector and the economy as a whole.

    He also said that manufacturers, on their part, should always select the right partners that will not only give them good services, but also enable them cut cost in the production process.

    The industrialist recalled that one of the greatest shocks he received when he came to Nigeria was that most people knew next to nothing about emissions and recycling.

    While noting that almost everything can be recycled, from plastics, nylons, bottles etc, he called for greater attention to such areas to rid the streets of refuse and also create wealth.

  • Building a competitive economy

    Nigeria’s GDP performance improved slightly in the 4th quarter of 2016, and showed us a route to recovery. The current recession has affected all of us. But the root causes of it are deep; and they must be addressed if we are to build a more sustainable and competitive economy. We must understand the causes of our economic malaise in order to implement solutions that are sustainable.

    Nigeria’s economy has been structurally weak for decades. Our oil wealth has disguised the fundamental structural weaknesses that we have, and while the cash flowed many of those weaknesses were overlooked. We were complacent. We did not do the work that was needed to develop the broader economy and we are suffering the consequences today.

    This is not because we did not know what needed to be done. The last two decades are full of economic plans and strategies designed to address them. Our challenge has been, principally, in implementation.

    Nigeria needs to build an economy that is not only resilient, but globally competitive. We have been focused on that since taking office, through our Strategic Implementation Plan (SIP), which has provided a platform. The evolution of the SIP is the Nigeria Economic Recovery and Growth Plan (NERGP), which we have unveiled this week. The NERGP provides a framework for implementation from 2017-2020, but does not mean we must wait until 2020 to see progress. The plan is focused on generating concrete and visible impact by the end of 2017, and many of the initiatives incorporated within it have been under way since 2016. We are not starting from scratch and the work that we have done so far is already beginning to show dividends. We are absolutely committed to delivering the implementation of the plan and we have the political will, determination and the leadership to achieve this.

    We have three core objectives: Restoring growth, investing in our people and building a competitive economy. These are delivered through five execution priorities. The first is to stabilise the macro-economic environment. We must increase revenue and cut costs. We will then focus on the four pillars of future growth; Achieving agriculture and food security; Ensuring energy sufficiency in power and petroleum products; improving transportation infrastructure, and driving industrialisation through local and small business enterprise. These objectives and priorities are underpinned by a robust delivery and monitoring mechanism to ensure that we are laser focused on implementation.

    Our lack of infrastructure is our Achilles heel. It means that the food we eat is more expensive, individuals and businesses have to generate most of the electricity they require, far too few people have access to running water and travelling around the country is a slow and difficult process. But beyond the effect this infrastructure deficit has on people’s daily lives, it has a hugely detrimental impact on our economic performance and the profitability, and often the viability, of our companies, which further impacts the lives of all our citizens. The better our economic performance, the more revenue the government will have to spend and the more it can do to address these deficits. That is why our 2016 and 2017 budgets were structured to deliver investment in transport and energy infrastructure. We will borrow to build the foundations for future growth. Our non-oil revenue has been traditionally unacceptably low. Delivering growth in agriculture, while ensuring that our industrialisation strategy is broad based (focused on SME’s) rather than reliant solely on large scale projects, is critical to reversing this.

    However, Government resources will not be sufficient to address all our infrastructural challenges. The Plan also provides for Government to partner with private and development capital from both within, and outside the country, to leverage and catalyse additional resources needed to grow the economy, and bring about prosperity.

    Underlying each of our priorities is a common requirement. We must invest in the skills of our workforce. Unemployment is too high, and the skills gap is too great. To be competitive globally, we must address the way in which we train, and build capacity. That is a core focus of this plan. We want to build an economy fit for the future, and that can only be done using our most precious, but most under-utilised resource, our people. It is why the plan places emphasis on building capacity in education, healthcare, social inclusion, job creation and environmental sustainability. Many of the initiatives this administration has already developed and rolled out have been focused on delivering basic needs for the most vulnerable in our nation. Our social investment programmes are examples of this focus.

    While the scale of our task is very large, we are already seeing the dividends of some of our work. Our focus on Agriculture and Solid Minerals has resulted in some growth in those two sectors in 2016. However, given the current recession, revenues continue to be challenged. But we believe that with the current outlook of stable oil prices and increasing production, it can only improve. Our tax base in Nigeria is 6% of GDP compared with an average of 16% across the rest of Africa. This is clearly far too low and there is room for significant improvement in expanding the tax base. There is much more work to do, but we are on the right track.

    The Presidential Enabling Business Environment Council (PEBEC) is also delivering results. Since its launch in the last quarter of 2016, we have seen the processes for obtaining visas streamlined considerably, with visas now available on arrival. There is much more to come and you will be hearing from that team over the coming weeks as they roll out the 60-day action plan to ‘Make Business Work’.

    While the past 18 months have not been pleasant for Nigerians, they have served to show us a way to a future in which we will work our way out of the current recession and onto a path of sustained, diversified and inclusive growth. We will need to intensify our cooperation and co-ordination with the State Governments. We will need to work closely with the private sector, and indeed, all Nigerians. It will not be easy, but this Administration has a plan to deliver. We have no doubt that, working together, we shall attain prosperity.

  • Hemwan: Plateau Utd will be competitive next season

    Hemwan: Plateau Utd will be competitive next season

    Plateau United general manager, Pius Hemwan has asserted that the Jos side are planning to wrap up their recruitment exercise ahead of the new Nigeria Professional Football League (NPFL) season to replace over 10 players dropped at the end of the just concluded season.

    Hemwan told Goal: “We have told 14 players to look for another club while we are planning to get new ones to replace them in the next few days.

    “We won’t make a repeat of the past season because we have concluded plans to weed out non performing players who only received salaries and we will replace them with young, vibrant and energetic players. We want to be very competitive next season and we have explored all our last season’s mistakes with a view to correcting them before the start of hostilities.

    “We would have competed for the league shield had we started the season with the players we ended it with.”

  • ‘Project management build’s competitive advantage’

    The value of project management can never be overemphasised especially as it relates to the burning issues of maximising profits and budget optimisation by organisations in the face of cut-throat global competition.

    For the purpose of this article, we will define organisation in a broader sense and it includes both public and private sectors of the economy. This evolution, our definition of organisation is contrived to focus on project execution and national development as both private and public organisations collaborate together to execute grandstanding projects in the form of joint ventures and public private partnership. However, this collaboration will not achieve any meaningful impact without the overriding influence of project objective as the dominant motivator.

    For the benefits of readers who are new to the field, project management is defined as the application of skills, tools and techniques to achieve project objectives. The size, business needs and complexity of the project determine how much skills, tools and techniques are deployed to deliver on project objectives.

    The values of project management cover many important aspects of project delivery that meet customers’ expectations and project objectives. These important aspects include risk, communication and time management, just to mention a few.

    Risk management involves risk identification and control systems; and the value of proper risk management lies in exploitation of risks identified (positive risks) or elimination of unwanted risks, thereby contributing to the project being delivered on time, on budget and within scope. This is possible with the deployment of project management skills that are proportionate to the size, complexity and the needs of the project.

    The role of project management to competitive advantage is inherent in the number of projects completed on time, on budget and within scope while meeting the project objectives.  When projects deliver on objectives at no extra material and human cost; no additional capital and labour intensity, organisations operating this tight control deliver superior performance compared to their contemporaries who do not have any control on budget, time, scope and even quality.

    Successful completion of projects improves operating effectiveness and competitive advantage by fostering confidence in strategic business execution. The effects are innumerable, especially as globalisation has become a business denominator across the globe, breaking international barriers and business monopoly.

    The study is clearly indicative of the pivotal role project management plays in helping high performing organisations achieve their strategic objectives through a combination of key fundamentals which are instrumental in establishing project management practice in organisations. These basic fundamentals, according to the study conducted by Project Management Institute, are listed below:

    Culture:

    High-performing organisations fully understand the value of project management and are creating a project management mindset across their respective organisations. It is a cult-like culture where adherence to project management is obvious even in the process of project selection. This project management culture or mindset is supported and lived by the management of any given organisation. So it is quite easy for employees to adapt the culture; and the mindset becomes the mantra of such an organisation.

    Talent:

    High-performing organisations are significantly more likely to focus on talent management, establishing ongoing training, formal, and effective knowledge transfer. This is especially important in project management where technical skills are enhanced by the leadership, strategic and business management capabilities that are nurtured through experience.

    Again, high performing organisations also realise that employee turn-over erodes operating effectiveness in the interim and competitive advantage in the long haul. Therefore, the nature of the project content and design provides satisfying motivation if they are properly crafted. Process:

    High-performing organisations support project, programme, and portfolio management through standardised practices by aligning projects and programmes to the organisation’s strategy. Any organisation’s initiative depends on its strategic objectives; moreover, such initiatives are implemented in the service of the strategic objectives.

    Finally, high-performing organisations continue to buttress the well known facts: adhering to proven global project management standards without elimination of native knowledge and local relevance reduce risks, optimise cost and improve success rate of projects. This success is evident in both shareholders satisfaction and employees’ motivation leading to improved instrumentality or line of sight.

    – Oluwatosin is Managing Partner, Checkmate Business Communication

  • Be competitive, architects urged

    Architects have been urged to be more competitive and deliver value to their clients.

    Principal Partner, ATO Architects,  Ayoola Onajide,  gave the advice at the second ATO lecture in Lagos.

    Speaking on the theme, Architecture: Substance and shadows. Random Musings from over three Decades of Practice, Onajide said practitioners are caught in a dilemma.

    ‘’The architect wants to be an artist and a professional, but he also wants to be regarded as a businessman. What is important is to create opportunities for people to discuss ways to improve the practice, change the way the profession is viewed,” he said.

    He added that the expectation is that the lecture would help the younger architects to better understand the profession and how best to positively impact on society.

    On the impact of globalisation and the Niger, Another architect, Olusegun Ladega, said: “Architecture of any age has always reflected the limits of engineering and scientific know how of the time.”

    Continuing, he said architecture is gradually imbibing the aso ebi (sameness) syndrome, in which buildings are indistinguished one another.

    “An architectural work becomes commoditised when one offering is nearly indistinguishable from another. As a result of technological innovation, broad-based education and frequent iteration, goods and services become commoditised and therefore widely accessible,” he added.

    “Many architects describe themselves as building designers or administrators of the building construction contract. This inaccurate and deceptive definition of the profession has not only led to a belittling of the architect but has also grossly undermined the architect’s professional fees and remuneration,” Ladega said.

    He added that the other challenge the practice is facing is the value that Nigeria places on intellectual property.