The Nation Newspaper

Tag: economic

  • Entrepreneurs call for economic diversification

    Entrepreneurs call for economic diversification

    Entrepreneurs have called for the diversification of the Nigerian economy, especially the development of the large agricultural potential, to aid economic growth and stability.

    Business executives spoke at the conference of Association of Fast Food Confectioners of Nigeria (AFFCON). The theme of the conference was: Synergy in the Food Chain: A Catalyst for Economic and Agricultural Development.

    Chief Executive Officer, The Chair Group, Mrs. Ibukun Awosika, stated that Nigeria’s diversification of the economy should be hinged on agriculture because of Nigeria’s large population, large expanse of land as well as fertile soil.

    Governor of Lagos State, Mr. Akinwunmi Ambode, who was represented by Mrs. Sade Ogunnaike, stressed the importance of agriculture in the economy, noting that it would boost the Association faster. The governor noted that by getting involved in agriculture, members of the fast food industry would be able to control the standard and quality of the items like eggs, meat, chicken, rice, yam, etc that they serve customers.

    Awosika advised members of the AFFCON to think differently about their value chain to find out ways to partner with others to eliminate waste, make better use of storage facilities and warehousing, reduce cost per unit, and increase their turnaround time, thereby empowering other companies to grow.

    She advised that companies must evaluate their value chain and identify those parts that are critical to their processes and outsource others, to increase company’s efficiency.

    But most importantly, Mrs Awosika urged the industry to take the Nigeria fast food business out of Nigeria, given that Nigeria dominates the West African region. That way, she noted, Nigerians would create global brands like other countries.

    President, Association of Fast Food Confectioners of Nigeria (AFFCON), Mrs Bose Ayeni said operators in the quick service sector popularly known as fast food contribute a record N230 billion into the nation’s Gross Domestic Product (GDP) annually.

    According to her, the Nigerian fast food industry is a key contributor to the Nigerian economy, with an estimated annual revenue of N230 billion and taxes in excess of a billion. It also collectively provides employment for over 500,000 people at the processing and retailing levels.

    “We are certainly contributing to the reduction of unemployment, a focal point of the Federal Government. This figure can grow significantly given the right environment for our businesses to thrive. The multiplier effect of this on the economy is better imagined than stated. Many of the small local players who operate at the neighbourhood level also have potential to become big given the right environment to thrive,” Ayeni said.

  • Dangote, Oshiomhole, others for New Telegraph’s economic summit

    Three governors Mr. Adams Oshiomhole (Edo), Alhaji Abdullahi Ganduje (Kano) and Chief Dave Umahi (Ebonyi)  as well as President, Dangote Group Alhaji Aliko Dangote, are among dignitaries expected at the maiden edition of New Telegraph’s Economic Summit, holding in Lagos on October 27.

    The summit, with the theme: “Beyond monthly allocation: State of the Nigerian states”, will examine the financial crisis facing many states following the oil price rout that has cut revenue to the Federation Account by about 65 per cent and how states could survive by expanding their internally generated revenue base.

    Dangote will be the guest speaker, where  the three governors will also share their experience in weathering the economic storm that has buffeted many states and impaired their ability to meet their obligations to workers and contractors.

    The summit, conceived by New Telegraph to expand the conversation on the state of the nation’s economic, is aimed at generating ideas to bring more dividends of democracy to the people.

  • ‘Diversification key to economic growth’

    Director-General, Centre for Black and African Arts and Civilisation (CBAAC), Mr Ferdinand Anikwe, has urged  Nigerians to reflect on the need to diversify the economy.

    Anikwe said Nigerians needed to sit down, go through their history and take important decisions that would contribute to the growth of the  economy.

    “Nigerians are complaining of no sale and low income from the oil sector; this could be a blessing in disguise.

    “There are so many other things that we can do to improve revenue generation for the country.

    “Apart from falling back on agriculture, we can also talk about small and medium scale enterprises and small scale industries,” he said.

    According to him, more than 80 per cent of the population engage in small businesses which the contributions can be effectively maximised.

    He said the challenge of fallen oil prices is an opportunity for the country to look inwards, reflect on its history and correct past mistakes.

    “With that, we can shift away from our imperfection and face the path to progress that can engage us in meaningful agriculture production.

    “Many  countries of the world have always moved from agriculture to industry and go back again to agriculture to enriched industry,” Anikwe said.

  • AfDB, AMF discuss member-states economic future

    African Development Bank (AfDB) Group President Akinwumi Adesina, and Director-General/Chairman, Arab Monetary Fund (AMF), Abdulrahman Al Hamidy, have held talks on the economic challenges of their member-countries. They met on the sidelines of World Bank-International Monetary Fund (IMF) yearly meetings in Lima, Peru.

    The leaders reaffirmed the importance of their partnership and how best to leverage their core competencies and comparative advantages in support of domestic, regional and international economic developments,amid increases in financing member-countries needs.

    AfDB said both institutions cooperation has been strengthened under the Deauville Partnership with joint activities focusing on the development of domestic capital markets. Both lenders are looking at opportunities to building a broad collaboration for a promising enhanced partnership.

    AfDB and AMF agreed on a Memorandum of Understanding (MoU) to crystallise their future collaboration in financial sector development.

    Adesina said: “The AfDB is committed to working with the AMF and our other international and regional partners to support building vibrant, innovative, robust and competitive financial systems in Africa at both domestic and regional levels.

    “This partnership will facilitate relations between the AfDB and the AMF, improve the efficiency of our efforts and provide a concrete basis for further cooperation on financial sector arena that will contribute positively to economic growth and social progress.

    Al Hamidy said: “Providing assistance to the development of the financial sector and supporting capacity development in the region has always been among our top priorities, and we look forward to pursuing and intensifying this effort to better tackle the needs of our African member-countries. Our ongoing cooperation with AfDB has always been successful and we are glad that today it’s being reinforced and strengthened to better serve the needs of our common member countries.”

     

  • Economic summit opens in Abuja today

    The 21st Nigerian Economic Summit (NES) opens in Abuja today. The FirstBank of Nigeria Plc in partnering The Nigerian Economic Summit Group (NESG) to host the event

    Titled: “Tough choices: Achieving competitiveness, inclusive growth and sustainability”, the event will highlight the role of public-private sector dialogue in national transformation.

    It is being organised to drive “consciousness and build national consensus on what is urgently required to rebuild, revamp and reinforce public-private collaboration for an all-inclusive economic growth”.

    It will be a platform to drive stakeholders’deliberation on tough choices required to achieve sustainable competitive and inclusive growth for national economic development in line with the United Nations Sustainable Development Goals (SDGs) which take effect from January, next year.

    Key issues to be discussed include: how to create jobs, approaches to achieving peace and security, dismantling the pillars of corruption, strengthening institutions and the attainment of sustainable macro-economic stability and inclusive growth, among other reforms.

    In a statement, FirstBank’s Group Managing Director/Chief Executive Officer, Bisi Onasanya, said the lender supports initiatives that create opportunities for the advancement of inclusive and sustainable growth.

    He further said the bank will continue to drive the discourse on how best to achieve competitiveness and inclusive growth in a sustainable way, through measurable outcomes which are crucial in defining the agenda that will help in making Nigeria’s socio-economic environment globally competitive.

    President Muhammadu Buhari is expected to lead a Presidential Policy dialogue, which will focus on key strategic elements required to make Nigeria globally competitive.

     

  • Refugees’ influx’ll spur economic growth, says World Bank chief

    The influx of refugees from war-torn countries and others from poverty-stricken nations could spur the growth of the economies of the recipient nations, the President, World Bank Group, Jim Yong Kim, has said.

    Kim, who spoke while reacting to a World Bank report, said with the right set of policies, this era of demographic change could be an engine of economic growth, arguing that “if countries with ageing populations can create a path for refugees and migrants to participate in the economy, everyone benefits.  “Most of the evidence suggests that migrants will work hard and contribute more in taxes than they consume in social services.”

    The report which was released in Lima, Peru, at the ongoing meetings of the global financial bodies, stated that the world is undergoing a major population shift that will reshape economic development for decades. He said  while posing challenges, it offers a path to ending extreme poverty and shared prosperity if the right evidence-based policies are put in place nationally and internationally.

    The report, titled: ‘The Global Monitoring Report 2015/2016: Development Goals in an Era of Demographic Change,’ said the large-scale migration from poor countries to richer regions of the world will be a permanent feature of the global economy for decades to come as a result of major population shifts.

    In her contribution, the Managing Director,  International Monetary Fund (IMF), Christine Lagarde, said the demographic developments analysed in the report will pose fundamental challenges for policy-makers across the world in years ahead.

    She said: “Whether it be the implications of steadily ageing populations, the actions needed to benefit from a demographic dividend, the handling of migration flows – these issues will be at the centre of national policy debates and of the international dialogue on how best to cooperate in handling these pressures.”

    The report said the share of global population that is of working age has peaked at 66 per cent and is now on the decline. Global population growth is expected to slow to one per cent from more than two per cent in the 1960s. The share of the elderly is anticipated to almost double to 16 per cent by 2050, while the global count of children is stabilising at two billion.

    It said the direction and pace of this global demographic transition varies dramatically from country to country, with differing implications depending on where a nation stands on the spectrum of aging and economic development.

  • Economic downturn: 60,000 construction workers sacked

    Economic downturn: 60,000 construction workers sacked

    No  fewer than 60,000  construction workers have lost their jobs in the last four months, the National Union of Civil Engineering Construction, Furniture and Wood Workers (NUCECFWW) has said.

    The union’s President, Comrade Amechi Asugwuni, blamed  the development on the country’s economic downturn.

    He described the development as a minus to the country’s quest to create jobs, grow the economy and add value to people’s lives.

    Asugwuni deplored the infrastructural deficit in the country, urging President Muhammadu Buhari to address the problem and other social vices to reduce poverty, joblessness and insecurity.

    “The economy is slowing, and promised infrastructural reforms are taking too long to implement, as over 60,000 of our workers have lost their jobs as a result of infrastructural deficit in the last four months,” he said.

    The union called on the Federal Government to unfold its blueprint on infrastructural reforms to accelerate economic growth.

    Asugwuni said there was no way the government could create jobs without focussing on infrastructural development.

    His words: “We have not seen the blueprint of the government on infrastructure, but we want to urge the Federal and the state government to channel the same effort used in fighting corruption into infrastructural development.

    “We believe that Buhari would re-activate all uncompleted projects. The target of any government will not just be on construction of roads, it would be on the development of every other sector of the country.

    ”As a result of the lapses observed in contract awards and execution by previous governments, we are calling on President Buhari to constitute a monitoring committee to check anti-labour practices by employers and poor execution of contracts.”

    To tackle the nation’s economic problems, the union suggested jobs creation through infrastructural development; re-activation of on-going projects to stimulate employment and extensive rail/road networks construction, among others.

    Asugwuni noted that the Ministry of Labour has not been effective, calling on President Buhari to monitor the ministry.

  • E-commerce will fast track economic diversification’

    Nigeria needs to create enabling environment for the growth of online transactions, otherwise known as electronic commerce or e-commerce, as a major platform to drive the development and diversification of the national economy.

    Speaking on how trade and commerce can be used to enhance national growth, spokesperson for Supermart.ng, Oluwatayo Alofun said that when sellers are able to make more sales it leads to business expansion which automatically creates room for more employments and also contribute to national growth.

    According to him, there is need to create an atmosphere for buyers to buy more and sellers to sell more as the current traditional wholesale and retail business is generally unorganized.

    He noted that what e-commerce companies like Supermart.ng has done is to organize the market in such a way that consumers can get everything they want in just one spot, which makes them to buy more.

    “This explains why supermart.ng has partnered with leading supermarkets and local markets to put up a one stop shop online with over 60,000 items including Fresh food, foreign products, Nigerian ingredients, general groceries and baby products among others which will be delivered to buyers in as early as three hours of order,” Alofun said.

    In order for this to be possible, a chain of different job roles have to function together. In the case of supermart.ng for instance, there are merchandisers who go out to take inventory of the products, there is also a team of personal shoppers who professionally picks the products and package them. After the packaging, there is a team of well-trained drivers who ensures that products are delivered in good condition to the buyers. A team of customer care attendants also exist to ensure that customers are satisfied with the service. In this way, e-commerce is creating jobs across multiple industry including operations and logistics.

    “In essence, the use of e-commerce in the diversification of the economy will not only increase revenue but will reduce unemployment through creation of multiple jobs,” Alofun said.

    Following the down turn in the international price of crude oil and its effect on oil dependent economy like Nigeria, the government has affirmed commitment to foster development of non-oil sectors and the speedy diversification of the country’s economy.

    Reacting to the government’s plan, experts have continued to urge the government to focus on trade and commerce and how technology can be used to drive it. Trade and commerce is fast becoming an indispensable component of the non-oil sector of the Nigerian economy. The wholesale and retail space for instance currently accounts for about $100 billion. This according to a McKinsey report has a potential of increasing to $300 billion by 2030.

  • ‘E-commerce’ll fast track Buhari’s economic diversification plan’

    Following the downturn in the international price of crude oil and its effect on oil dependent economy like Nigeria, President Muhammadu Buhari has reaffirmed his administration’s commitment to foster development of non-oil sectors and the speedy diversification of the country’s economy. Reacting to the president’s plan, experts have continued to urge him to focus on trade and commerce and how technology can be used to drive it.

    Trade and commerce is fast becoming an indispensable component of the non-oil sector of the Nigerian economy. The Wholesale and Retail space for instance, currently accounts for about $100 billion. This, according to a McKinsey report, has a potential of increasing to $300 billion by 2030.

    Speaking on how the growth in trade and commerce can be enhanced for national growth, the spokesperson of Supermart.ng, Oluwatayo Alofun noted that there is need to create an atmosphere for buyers to buy more and sellers to sell more. He noted that when sellers are able to make more sales it leads to business expansion which automatically creates room for more employments and also contribute to national growth.

    According to him, “the current traditional Wholesale and Retail business as we have it today is generally unorganised. What e-commerce companies like Supermart.ng has done however is to organise the market such that consumers can get everything they want in just one spot. This makes them to buy more. This explains why supermart.ng has partnered with leading supermarkets and local markets to put up a one stop shop online with over 60,000 items including fresh food, foreign products, Nigerian ingredients, general groceries and baby products among others, which will be delivered to buyers in as early as three hours of order.”

    In order for this to be possible, a chain of different job roles have to function together. In the case of supermart.ng for instance, there are merchandisers who go out to take inventory of the products, there is also a team of personal shoppers who professionally picks the products and package them. After the packaging, there is a team of well-trained drivers who ensure that products are delivered in good condition to the buyers. A team of customer care attendants also exist to ensure that customers are satisfied with the service. In this way, e-commerce is creating jobs across industries including operations and logistics.

    In essence, the use of e-commerce in the diversification of the economy will not only increase revenue but will reduce unemployment through creation of multiple jobs.

  • China needs economic reforms, says EU

    China needs economic reforms, says EU

    The European Union Chamber of Commerce in China has said China needs to accelerate its reforms to stop the slide in its economic growth.

    “The economy is slowing, and promised reforms are taking too long to implement,” the chamber’s president, Joerg Wuttke said.

    The yearly increase in Gross Domestic Product (GDP) has slowed to around 7 per cent, cooling the enthusiasm of many foreign investing companies.

    “It’s not the end of the world for us,” Wuttke said, ahead of the release of the chamber’s annual position paper, European Business in China.

    “One of the most urgent problems was the high level of China’s debt,” he said.

    The country’s total debt is estimated at 282 per cent of GDP, according to financial consultants McKinsey.

    “Around a fifth of the debt is held by government bodies, and nearly a quarter by financial institutions, with 44 per cent by non-financial corporations, and the remaining 13 per cent by households, ‘’Wuttke said.