Tag: Economic growth

Nigeria’s economic growth and development requires active partnership between the public and private sectors.

Managing Director, CFL Group, Engr Olamide Omotola, said the quantum of infrastructural deficit and capital outlay were more than the capacity of the government alone, thus the need for collaborations between the governments and the private sector.

According to him, entrepreneurs and not politicians will change the fortunes of the nation as seen in every developed country.   

At the company’s 26th anniversary at the weekend, Omolola highlighted how the company has continued to survive despite the nation’s economic challenges.

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He said: “Our continuous fixation on government such that until government does it we cannot live is a wrong doctrine which should be dispensed with.  Government will continue to be government.   As entrepreneurs we should be able to adapt to ever changing government”.

According to him, as the company celebrated its 26th anniversary, the group could showcase successful private public partnerships (PPPs)  with its project with Ikeja Local Government now fully resolved with both the market association and Ikeja Local Government.

“We can report that construction is at full blast with early delivery between December and first quarter of next year and by then it would have been 15 years on the project. It will further interest you that we have 18 real estate projects across the state all awaiting government approval. 

“We are putting funds together to launch a one million homes development to be known as the Grace Project across the nation and once the funding is in place we shall announce the launch date.

‘’ We have also commenced our agric business and have registered a group known as tech farmers to deplore technology as a tool to accelerate agriculture.”

  “In the coming year we shall deplore backward integration into our construction, what this means is our team of 25 companies will now be deplored to manufacture and deliver all our construction materials in house and also sell there and generate more employment, while bringing a competitive pricing to the subscribers,” Omolola said. 

On the economy, Omolola said: “This is the most challenging times in the life of our nation and I don’t need to say what you already know as to how citizens are suffering like never before.  

‘’As the hardship persists, so does the opportunity persists and we must not give in to the hardship but rise above the challenge and defeat it. This should be our attitude. 

‘’Let it be clear that our present hardship cannot be resolved singularly by government but by joint collaboration with the private sectors. Entrepreneurs and not politicians will change the fortunes of this nation as seen in every developed country.

‘’Entrepreneurs will build houses, build schools, build hospitals, build roads, build rails, provide electricity, provide energy, allow us to speak to ourselves by providing connectivity and entertainment.

 ‘’Our continuous fixation on government such that until government does it we cannot live, is a wrong doctrine which should be dispensed with forthwith. Government will continue to be Government. 

  ‘’As Entrepreneurs, we should be able to adapt to ever changing government. If government policy kill businesses it shouldn’t kill the entrepreneurs. 

‘’Unfortunately, Nigeria parades one of the most terrible business elite that have sucked the country so much without return value to the country.

 ‘’How do you explain over N40 trillion spent on fuel subsidy over the past 28 years?  How do you explain N10 trillion spent on agriculture in Buhari’s regime?  How do you explain N8 trillion absorbed by AMCON from bad Bank loans.? CBN’s N10 trillion on various interventions. 

 ‘’ Today, the price of petrol is above N1000 and the introduction of Band A from Discos and all failures of the business elite who have mismanaged the enterprise and every one as customers . 

  ‘’How do you explain how a business elite is able to buy a Rolls Royce and  an aircraft and still in billions of debts with the banks and live a lavish lifestyle in debts. I will explain how they just secure court orders and continue to feed fat off bank loans and government contracts.  ‘’ We have all these monies for development stashed away in foreign accounts which have resulted in killing of our industries and resulting in joblessness and giving birth to insecurity.

 ‘’So a large percentage of our budget goes to fighting insecurity.   A large percentage of our business elite feed big of our foreign exchange (forex).   More terrible are big companies involved in forex trading and money laundering.  It’s a shame this can’t happen in any developed country.  These people remain unrepentant. Someone will say why blame only the business people and not the politicians. Every politician needs a business person to commit fraud, so it’s the issue of the giver and the taker.

  ‘’Am not in government and I will not speak for them.  My constituent is the business community.  The economic challenges we face are nothing difficult, what is difficult is when people take up a job they cannot do,” Omotola said.

The 30th Nigerian Economic Summit (NES #30), will bring together stakeholders to deliberate on strategies that address the root causes of insecurity, with the goal of fostering a stable and prosperous future for Nigeria and Africa, the Nigeria Economic Summit Group (NESG), has said.

NESG in a statement by its Acting Head, Strategic Communication & Advocacy,  Ayanyinka Ayanlowo, stated that the focus on building a more secure society, a sub-theme of NES#30 emerges as a foundational pillar for economic stability and growth.

It noted that the significance of security in fostering an environment conducive to business operations, attracting foreign investments, and promoting overall societal well-being cannot be overstated.

According to the statement, NES #30 will engage stakeholders in critical discourse to address current socioeconomic challenges to ensure stability and explore strategies to improve economic competitiveness.

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Others are to identify pragmatic policies and actions for inclusive growth and development; and prioritize collaborative approaches between stakeholders for progress.

The summit themes: “Collaborative Action for Growth, Competitiveness, and Stability”, underscores the importance of a secure society in achieving economic resilience and inclusive growth.

The Summit will serve as a platform for meaningful deliberations, emphasising Nigeria’s role in driving the continent’s transformation through institutions, investment, integration, industry growth, and innovation.

Managing Director, Philips Consulting (PCL), Rob Taiwo, has identified talent management as a critical equaliser in the fight for social mobility and socio-economic advancement.

He stated this during the Talent Management event organized by Philips Consulting, in Lagos. The event drew human resources managers and industry leaders from diverse sectors

PCL is a business and management consulting firm with over three decades of experience, providing advisory services, technology solutions, and training to organisations in Africa and globally.

He said the company had consistently enabled organisations to achieve sustainable growth and success. It’s expertise in talent management, organisational development, and transformation helps businesses achieve their goals and thrive in a competitive landscape.

 Emphasising the significance of talent management, its role in social mobility and how business leaders could make a difference in managing talent, Taiwo said remained a critical element in the quest for social mobility and socioeconomic advancement.

 When both are in synch, they advance equitable opportunity, diversity and inclusion, he added.

The event provided invaluable insights and strategies for optimising talent management practices in today’s competitive business landscape, centred around the theme “Transformative Talent Management: Embracing Change for Competitive Advantage”.

Building upon the previous edition, the Talent Management event delivered thought-provoking discussions, innovative solutions, and actionable strategies to industry stakeholders.

Focusing on empowering organisations to elevate their workforce to excellence, the event addressed pressing challenges and emerging trends shaping the future of talent management.

In line with the theme of the event, the company unveiled the Talent Management Report – The Balance Between Economic Pressures and Your Talent Management Strategy. This report is the second edition of the Talent Management Report, an outcome of the extensive research and data analysis conducted by the company.

The report provides in-depth insights into the shifts in talent management amidst economic pressures, the strategies organisations can implement to manage talent effectively, and the role of total rewards in driving talent management.

Renowned speakers and industry experts engaged in insightful discussions on the evolving landscape of talent management, sharing their expertise and perspectives on best practices and emerging trends.

The panelists discussed the changing dynamics of talent management and shared experiences and insights on managing people for the growth of organisations.

Chief Talent Partner, YF Talent Partners, Yemi Faseun, said today’s workforce looks beyond pay.

Taiwo said organisations had stayed too long in the linear perspective of managing talent, focusing more on pay and promotion rather than healthy work-life balance and positive work culture.”

He further suggested that organisations needed to change their relationship style from a traditional HR approach to applying empathy and trust.

Chairman, Algorithm Media Nigeria Limited, Seni Adetu, stressed the importance of an effective talent management leader and noted that people, reputation and brand are a tripod, each indispensable, and their combination constitutes a business’s greatest asset. He further stated that organisations should treat their talents like a brand.

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Attendees gained access to practical strategies and innovative approaches for attracting, retaining, and developing top talent, equipping them with the tools to drive organisational success.

The Head of human resources (HR), FSDH Merchant Bank Limited, Olubukola Lanipekun-Lawal, highlighted the importance of data-driven decisions when managing talent.

She discussed effective strategies for people management, such as assigning mentors to guide and oversee downlines and talent managers. She also stated that organisations should focus more on the employees’ experience by providing the necessary tools to support the growth of employees.

“A digital approach to talent management is critical, and organisations should ensure that employees are provided with the tools required to make work enjoyable and assure them that the organisation is interested in how they deliver on work”, she noted.

Tracy Afolabi-Johnson, Senior Consultant, People Transformation Unit, at PCL said “people are interested in working with organisations that are invested in their training and development’’. She said organisations needed to invest in the training and development of their people to get the best out of them.

Tracy further commented on the importance of recognising and appreciating the work and efforts of team members to encourage and foster better team collaborations and results for organisations.

Reflecting on the event’s success, Olawanle Moronkeji, Partner, People Transformation Unit, pcl. commented, “Transformative talent management in the new abnormal has to be imaginative, agile and inclusive in design and execution”.

The Talent Management event reaffirmed the company’s commitment to empowering organisations with innovative solutions and strategic guidance to navigate the complexities of talent management effectively.

Manufacturers Association of Nigeria (MAN) has said achieving a delicate equilibrium between addressing macroeconomic challenges and fostering growth and resilience of the manufacturing industry is crucial for meaningful economic development.

MAN’s latest charge to fiscal and monetary authorities came against the background of the latest increase in the benchmark interest rate by the Central Bank of Nigeria (CBN).

CBN’s Monetary Policy Committee (MPC) had last week raised the Monetary Policy Rate (MPR) by 150 basis points, from 24.75 per cent to 26.25 per cent. The MPC also opted to maintain the Cash Reserve Ratio (CRR) of Deposit Money Banks (DMBs) at 45.0 per cent and retain the Liquidity Ratio at 30.0 per cent.

Director General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir said while manufacturers acknowledged the efforts of the MPC in confronting the economic challenges facing the country, especially fluctuations in inflation and exchange rates, there is a need for a delicate balancing in order not to truncate overall economic growth.

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“While MAN understands the reason behind the MPC’s decision, it is crucial for the committee to thoroughly assess the potential impact on the real sector and the multiplier effect on the nation,” Ajayi-Kadir said.

He noted that the strategy of raising the Monetary Policy Rate (MPR) has persisted for nearly two years without yielding positive results.

He, therefore, called on CBN to explore alternative measures, particularly in addressing the underlying causes of inflation, which, according to him, are primarily cost-push factors.

The association urged the MPC to carefully evaluate the effects of its monetary policy actions on both the manufacturing sector and the broader economy.

“Therefore, MAN advocates for robust collaboration between monetary and fiscal authorities in implementing targeted interventions aimed at mitigating the underlying cost-push factors driving inflation, thereby alleviating the financial burden on manufacturers,” Ajayi-Kadir said.

He listed other policy measures to include prioritising forex and credit allocation to manufacturers and fast tracking the proposed recapitalisation of the banking sector; emphasising the development of infrastructure within industrial hubs.

MAN also called on government to bolster nationwide investments in renewable energy sources to alleviate logistical expenses and enhance competitiveness.

It also called for further reduction of the country’s reliance on imported products and raw materials by providing incentives for investment in backward integration and local sourcing to reduce the pressure on the dollar to the barest minimum.

He said the increase in interest rate would exacerbate the challenges of the manufacturing sector and by extension, the economy.

MAN said, for instance, that the interest rate hike will further tighten credit interventions, increase loan costs, raise production cost, limit fund accessibility, and erode investment and competitiveness within the manufacturing sector.

But CBN’s decision to further tighten monetary policy rate was obviously not well-received by MAN, which kicked that the increase in the interest rate will harm the manufacturing sector.

He said, for instance, that the policy decision will constrain investment and expansion in the manufacturing sector, as well as force further decline in manufacturing competitiveness.

Ajayi-Kadir, who spoke at the ‘Public Presentation of the MAN CEO’s Confidence Index (MCCI) Report’ in Lagos said the combination of heightened borrowing costs and reduced liquidity will hinder manufacturers’ ability to invest in innovative technologies, expand production capacities, or venture into new markets.

He said as a result, this could lead to delays or cancellations of planned initiatives, ultimately constraining the sector’s potential for growth and its overall contribution to economic growth and development.

The MAN DG also lamented that the MPC’s decision will further compound the already high cost of doing business in Nigeria, consequently diminishing the competitiveness of Nigerian products in the global market.

 “The high lending rate exceeding 30 per cent will increase the cost of borrowing and make Nigeria goods less competitive to products from other nation,” Ajayi-Kadir said, noting that this is evident in the substantial downturn in global demand for Nigerian goods.

He said notably, data from the World Trade Organisation (WTO) reveals a stark contrast in manufacturing export values between Nigeria, South Africa, Egypt and Morocco in 2022, for instance,“ South Africa, Morocco and Egypt recorded $45.38 billion, $30.61 billion, $20.14 billion respectively, compared to Nigeria’s modest record of $3.21 billion,” he said, insisting that “Such a glaring divergence underscores the significant disparity in competitiveness of Nigeria.”

Moreover, Ajayi-Kadir, citing MAN survey, said the manufacturing sector’s capacity ultilisation reduced from 56.4 per cent recorded in 2022 to 55.1 per cent in 2023. Also, the sector’s growth reduced to 1.40 per cent in 2023 from 3.35 per cent and 2.45 per cent recorded in 2021 and 2022 respectively.

Earlier in his opening remarks, President of MAN, Otunba Francis Meshioye, described the decisions of the CBN’s MPC as critical, noting that they will have far-reaching implications on the manufacturing sector.

He said the Nigerian economy has encountered significant challenges in recent years, including foreign exchange volatility, escalating energy costs, and food insecurity.

“These challenges have intensified inflationary pressures, adversely impacting consumers’ purchasing power and impeding the growth of the manufacturing sector.

“Consequently, production levels have declined, leading to reduced competitiveness within the industry,” Meshioye said.