The Nation Newspaper

Tag: efficiency

  • Parties seek unbundling of INEC for efficiency

    The Inter-Party Advisory Council (IPAC), the umbrella body of all registered political parties in the country, has proposed that the Independent National Electoral Commission (INEC) be unbundled to make it more efficient.

    IPAC said the electoral body currently has too many responsibilities to handle.

    The council said an unbundled INEC should be left with the responsibility of conducting free, fair and credible elections for the country.

    IPAC’s Chairman Peter Ameh spoke at this year’s annual summit of political parties and stakeholders.

    The summit reviewed the conduct of the political parties during this year’s general elections.

    The event was organised by Political Parties Leadership and Policy Development Centre of the National Institute for Policy and strategic Studies (NIPSS) with support from the European Centre for Electoral Reforms.

    Read also: Okorocha: INEC lacks power to reverse my election

    Also, Niger State Resident Electoral Commissioner (REC), Prof. Sam Egwu, who represented INEC Chairman, Prof Mahmood Yakubu, said the commission was concerned about the unbundling of the commission for more efficiency.

    Ameh said this year’s general election was marred by irregularities resulting from what he called structural failure on the part of the commission due to the huge responsibilities it is meant to handle.

    He said: “We are here today to carry out a review of the 2019 general election, which was marred by various malpractices and all sorts of electoral malpractices, desperation by politicians, high level of thuggery, vote-buying, citizens’ inaction and civil society failure to be non-partisan.

    “There were security agents perceived to be biased and the structural failure by the INEC. I called it structural failure because of my long-standing conviction that INEC should be unbundled, if we all want electoral efficiency. INEC should be unbundled if we all want an electoral system that will work effectively, free of all forms of baggage.

    “As it presently stands, INEC carries a lot of responsibilities. It is responsible for registration of political parties, it is responsible for voter education, it is responsible for voter registration as well as legal activities involving those that have gone to court as a result of elections that have been adjudged unsuitable.”

     

     

  • Fresh push for efficiency at ports

    At the opening of the just-concluded Lagos International Trade Fair, Vice President Yemi Osinbajo reiterated the Federal Government’s plan to establish a national single window (NSW) to fasten the time for importing clearing and exporting goods. Maritime Correspondent OLUWAKEMI DAUDA examines some of the issues inhibiting efficiency at the ports and efforts at tackling them.

    FOR the Federal Government to boost revenue from the non-oil sector, facilitating trade through improvement in the turnaround time for goods must be taken seriously.

    The government has repeatedly stated its commitment to diversifying the economy.

    One of the steps to realise that the single-window system.

    The implementation of a single window system enables international (cross-border) traders to submit regulatory documents at a single location and/or single entity. Such documents are typically customs declarations, applications for import/export permits, and other supporting documents such as certificates of origin and trading invoices.

    At the opening ceremony of the 2018 Lagos International Trade Fair concluded few days ago, President Muhammadu Buhari who was represented by Prof Osinbajo, announced plans by the Federal Government to establish a NSW to cut trade times and costs by making information flows more efficient and streamlining trade procedures and address other issues affecting the transaction cycle in bringing in goods, clearing and exporting it through the ports.

     

    What is a Single Window?

    A Single Window is an organic mixture of the collaborative efforts of parties involved in a nation’s international trade activities. It uses the latest information communications technology (ICT) techniques, international data and messaging standards together with simplified, harmonised and remodelled information systems for data exchange to replace traditional paper-based information.

     

    What is delaying the  scheme?

    Speaking at the forum, Prof Osinbajo  said the scheme is being delayed due to issues concerning individual Ministries, Departments and Agencies (MDAs) such as the Nigerian Ports Authority (‘NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers Council (NSC), Nigeria Customs Service (NCS), various terminal operators, shipping companies and other  government agencies at ports and border stations trying to align their various electronic platforms to the NSW platform.

    The Vice President however, expressed optimism on the delivery of the promise by the Federal Government in the shortest possible time.

    Commitment from government, stakeholders

    A maritime lawyer and university don, Mr Dipo Alaka, said the implementation of a NSW involves many stakeholders and requires long-term commitment from government and business.

    The platform, Alaka said, must fit the environment and level of development in the country.

    A former General Manager, Public Affairs of the NPA, Chief Michael Kayode, said at each phase of port development, the Federal Government, needed to look at the prevailing global trends and plan for 20, 30 and even 50 years ahead and make all the necessary adjustments to its plans along the way. “The introduction of a national single window platform is another key plank in the President Muhammadu Buhari administration’s strategy to make the Nigerian port a hub of maritime activities in Africa,” Ajayi said.

     

    What  CBN has done

    Findings revealed that the Central Bank of Nigeria (CBN) had last year, established a foreign exchange (Forex) window for investors and exporters to boost liquidity in the market and ensure timely execution and settlement of eligible transactions.

    But the country is still faced with lots of challenges with import and export procedures, which the VP said the NSW would address.

     

    FIRS’ efforts

    Osinbajo said tax payments and remittances have also been simplified through the e-filing system by the Federal Inland Revenue System (FIRS), saying importers and exporters are also not left out with the documentation required for imports and exports. These have been significantly reduced from 14 to eight and 10 to seven. According to him, since 2016, the Federal Government had so far in the past two budget cycles spent N2.7 trillion on capital, which he said was mostly on infrastructure.

    Speaking with The Nation on the sideline of the Association of African Maritime Administrations (AAMA) Conference in Egypt recently, the Director-General of (NIMASA), Dr Dakuku Peterside said to become African maritime hub, Nigeria needs a single window platform to deliver the highest value in terms of efficiency, quality and reliability of service.

    “Promoting efficiency is a major challenge confronting many African ports today. A global benchmarking study conducted by SAP found that ports that leverage technology to drive productivity improvements enjoy 36 per cent higher operating margins than similar peers and that is why the Federal Government of Nigeria is working tirelessly to institute a single window operation in our ports.

    “Port automation and digital solutions are potential game-changers, not only for cargo throughput but also profitability.”

    Peterside told the delegates that the Buhari led- administration has the vision and determination to make the Nigerian ports, the hub of maritime activities in the West and Central Africa through the introduction of a national single window operation, provision of maritime security, improvement in port infrastructure,  formulation and implementation of other laudable programmes.

    Peterside, who is also the chairman of AAMA, said the geographical location of Nigeria will aid its transformation to a regional maritime hub after the introduction of the new platform to boost efficiency and competitiveness.

    ”Today, we are celebrating Singapore based on the Vision of its leaders. And I am also happy to inform you that the Federal Government of Nigeria under President Muhammadu Buhari is doing everything possible to make the Nigerian ports the hub of maritime activities in the West and Central Africa,” he said.

    He added that the Buhari administration has a long-term, strategic port planning system that will ensure that the nation’s sea ports provide adequate capacity to meet the demands of key shipping lines and their alliance partners in siseable blocks of volume.

    The NIMASA chief said Africa needs leaders who have strategic vision and viable courage to make bold decisions that will enable the Nigerian sea ports and other ports in Africa to stay ready for the future, be a pacesetter, reap first-mover advantages, and thrive in a dynamic and competitive global maritime business.

    Nigeria’s strategic vision for its ports, he said, are being built on the three Cs of Connectivity,, Capacity and Competitiveness

    African leaders, Peterside added, need to emulate Singapore in taking the right decision and making the necessary investment to develop port infrastructure and technology to boost efficiency and economy.

    The Federal Government, the NIMASA boss revealed, is emulating Singapore and other maritime nations of the world in terms of short, medium and long term planning that will assist the Nigerian ports to compete favourably with other ports across the globe and urged other African countries to emulate them.

    He added that the maritime sector forecast released by NIMASA recently and the training of over 2500 seafarers by the agency were part of the efforts to make the Nigerian ports.competitive

    He urged African maritime administrators to identify areas where they have comparative advantage, their weaknesses and the opportunities they have to reduce poverty and the high level of unemployment ravaging the content.

    He stressed that there was need for maritime administrators across the continent to come up with beautiful ideas so that people can invest in their programmes the way the World Bank and other financial institutions did for Singapore in 1972.

    Paucity of fund, according to him, cannot, and must not be allowed to delay the growth of the maritime sector in the continent of Africa.

    Many stakeholders who spoke with the paper believe that it will be easier for the carmel to pass through the eye of the needle than to clear goods at the ports within the stipulated 48 hours. To overcome the challenges, some have advocated quick adoption of a national single window( NSW), to remove human contact, reduce corruption, boost efficiency and transform the ports to international standard.

    For ports users, the challenges of doing business are almost limitless. Achieving 48-hour cargo clearance at the ports has remained a mirage. It has made doing maritime business in neighbouring countries in the sub-region attractive.

    “However, there appears to be a consensus that limited co-ordination among  agencies, terminal operators and other stakeholders is the greatest obstacle. Importers, clearing agents and other port users face stringent, overlapping and onerous requirements that have made the adoption of a Single Window (SW) imperative to boost efficiency and reduce corruption,” said the a maritime lawyer, Mr Davis Abraham.

    The Nigerian Ports Authority (NPA) Managing Director, Ms Hadiza Bala Usman, told The Nation that the agencies, terminal operators and stakeholders must key into the government’s initiative of promoting the SW platform to meet the 48-hour cargo clearance deadline.

    The NPA, she said, has embarked on the establishment of a SW through an intense automation and introduction of Standard Operating Procedures (SOPs).

    ”There is no doubt that the adoption of a national SW will strengthen the port industry by boosting efficiency and reduce cost and time, which are the major objectives of port concession agreement signed by private terminal operators,” she said, adding that the SW has been used by many countries to facilitate trade at ports.

    The adoption of the SW, according to Ms Usman, will make local ports competitive in the international trade network and boost trade facilitation programmes of the Federal |Government. “It will also reduce corruption and entrench transparency and accountability in the port operations,” she said.

    The desired reforms at the ports, it was learnt, may not be completed without the full implementation of the SW platform by the ports, the Nigeria Customs Service (NCS) and others in the chain of trade facilitation.

    A senior official of the Federal Ministry of Transport (FMoT), who craved anonymity, said the Federal Government would generate additional $800 million yearly from the ports and border stations if government agencies key into the SW initiative.

    The official urged the Federal Executive Council (FEC) to compel the NCS, the police and other agencies at the ports to key into the platform to facilitate trade and generate more revenue. He also urged the National Assembly to back the initiative with a law.

    The Executive Secretary, Nigerian Shippers Council ( NSC), Mr Hassan Belo, said the single window is a laudable initiative, which a country like Nigeria ought to embrace to transform the ports.

    He said the platform would enhance trade competitiveness through improvement in import, export, transit procedures and information sharing system.

    The facility, he said, would ensure that there is a paperless Customs declaration, compliance and online approval.

    The current 100 per cent physical examination of goods, according to him, would be reduced and all government agencies at ports integrated.

    Bello added: “The single window facility will also need to be supported by legislation from the National Assembly.”

    “The National Single Window is the ultimate in port operation. But it must be multi-agencies integrated for it to be successful. The port is a transit point and our ports must be seen and used as such. That is why we have dry ports across the country to decongest the port and NPA as the landlord must have a say.”

     

    Advantages of NSW 

    A senior official of the Federal Ministry of Transport (FMoT) who craved anonymity said the purpose of the SW is to provide a platform and processes for a paper-less (electronic) system.

    “The ultimate national SW includes all of the information exchanged by traders; government departments (including Customs); maritime, air, road, rail and inland waterway transport systems; port and terminal operators; and a range of other participants in the trade process, including freight forwarders, customs brokers, shipping agents, banks and insurance companies. The management, or governance system, which oversees this major transition from paper and traditional business processes to electronics-based and re-engineered systems is the major challenge in a comprehensive sequence of conversion and change management activities that are themselves serious challenges.

    “The NSW is unavoidable if the country intends to remain engaged in expanded and more efficient global maritime trading activities. And the benefits are considerable and long-lasting. The reverse is also said to be huge for those countries that delay engagement in single window implementations as they will be increasingly subjected to powerful inhibitors to national trade efficiency and economic growth.

    “Those that need to collaborate with the NPA in its drive to have a national SW are importers, exporters (consignors and consignees), trade professionals (freight forwarders, Customs brokers and shipping agents), shipping companies, airlines, road, rail and inland waterways, duty free zones, dry ports and multi-modal cargo depot, ports and airports, container terminals, bulk terminals, port gate operations and Customs and all agencies that have a trade compliance responsibility, licensing, permit issuing and/or inspection responsibilities.

    “The need for collaboration has given the requirements for faster information delivery, often in advance of shipping, for security and other purposes, and the growing needs of data harmonisation in international supply chains.

    “The ability of government agencies to handle data efficiently and swiftly has, in fact, become a key element in international competitiveness, especially in port operations.

    “A single window is designed to overcome this complex system of data submission and regulatory control. It is designed to sit at the national junction of national and international trade data exchange, thereby presenting a single point of access to all other relevant trade systems. While the primary objective is the single electronic submission of data, establishing a single window necessitates a major rationalisation of current approaches and requirements to trade administration and operations, especially the reuse and elimination of duplication of existing data wherever possible, together with widespread e-Government applications and trade-related ministry.

    “The single window evolved as a single physical office that was established to handle all formalities, compliance and payment processes. This was commonly known as a “one-stop-shop”, or “guichet unique”. Initially, the trade or trade facilitation single window was applied to the trader’s lodgement of customs declarations and ministerial licences and permits. The concept, being championed by the NPA, has now been extended by the authority to include the complete trade, transport and logistics community to boost efficiency and reduce corruption,” the FMoT official said.

    The Vice President, association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said the adoption of the SW will enable importers/exporters to submit documentation and/or data requirement for importation, exportation or transit to a single entry point; ensure onward distribution of documentation and/or data requirements to the participating authorities or agencies through the platform.

    After the examination by relevant authorities or agencies of the documentation and/or data, the results, he said,  shall be notified to the applicants through the SW timely, and in cases where documentation and/or data requirements have already been received by the Single Window, the same documentation and/or data requirements shall not be requested by other agencies except in urgent circumstances and other limited exceptions, which are made public. “Government agencies must apply relevant international standards and practices as basis for the single window schemes,” Farinto said.

    An importer, Mr Yusuf Aladejobi, said the NSW will increase compliance level and see to efficient and productive use of resources, facilitate enhanced fee, duties and penalties’ collection.

    “ It will institutionalise more comprehensive, streamlined and automated business compliance to government legislative and regulatory requirements. It will also enhance risk analysis, management and improve security.

    “There will be reduction in corruption and illegal trade activities, enhanced transparency and accountability. It will equally bring more trader-friendly environment, leading to increased foreign investment, integration and timely flow of information between government agencies and improved business intelligence,” Aladejobi said.

    Alaka said, for importers and exporters, there will be cost reductions through minimised clerical efforts, time spent will reduce and eliminate delays. “There will be more predictable, reliable and authoritative decisions, just as there will be faster goods clearance, exceptional handling and dispute resolution, leading to reduced inventory holding costs.

    “Also, there will be predictable and reliable consignment clearance and availability of advanced goods release information and reduction in face-to-face meetings, greater transparency and reduced opportunities for rent seeking and corruption.”

    A clearing agent, Mr Segun Ogunsanu said the NSW will facilitate faster movement of goods through formalities and trade junctions, leading to better and more productive utilisation of resources.

    “There will also be reliable information on timing of goods movement, allowing accurate scheduling, allocation of resources and improved accuracy of information provided to clients; more productive and flexible use of human resources; and ability to accurately schedule goods collection and discharge times and locations. There will also be a better end-to-end audit of port operation,” Ogunsanu said.

    Also, the  former President, Association of Nigerian Licensed Customs Agents ( ANLCA), Olayiwola Shittu, said the NSW will lead to automated container bay planning and status systems, port community access and information systems, container track and trace (across the various individual port community systems), goods release note (GRN) systems, transport booking and gate management systems.

    “An additional ICT port management system that usually deals with vessel call book and bill and berth reservation and preparations will be enhanced. The most sophisticated of these port systems are integrated with the formalities of the SW so as to provide an end-to-end formalities and cargo movement system. This integrated system is called the national single window,” he added.

    “The SW was designed to be the single information technology clearing house for all trade-related regulatory and compliance data. These include importer’s customs declarations, supporting documentation, import and export licences and certificates of origin.

    “Shipping services are usually separate port systems that handle vessel arrival and departure operations, including pilotage, berth allocation, arrival/voyage booking and billing, and the various certificates and ship papers covering vessel and crew, and non-cargo contents of the vessel.

    “Cargo movement refers to bulk, general cargo and container handling, labour (stevedores), container storage, physical inspection facilities for containers and customs, where necessary, gate management, transport booking and road/rail onwards transport are put in place,” Shittu said.

    According to him, if these systems are linked together into a total port community system, it becomes possible for goods’ owners, freight forwarders and other legitimately interested parties, to track and trace cargo through the complete port system, from arrival to departure and vice versa.

    “The port SW, as championed by the NPA, is a significant tool for efficiencies, speed of cargo movement and vessel turn-around, and hence for significant revenue generation,” Shittu added.

    An exporter,  Mr Chris Christopher, said the NSW is a laudable initiative, which a country like Nigeria should embrace to transform the ports.

    ’We are aware that the current management of the NPA is not happy over the past failure of 48-hour cargo clearance policy. Apart from the fact that the delays experienced in cargo clearance disrupts the production schedules of manufacturers as raw materials are not delivered in good time to their factories, they affect their revenue and are responsible for high level of corruption at the ports as importers struggle to clear their cargoes under harsh condition. This, again exacerbates inflation as goods are not quickly cleared from the ports to meet relevant needs in the economy and that is why the need for a national single window is imperative,”Christopher said.

    To him, the Federal Government needs to have the political will to introduce the National Single Window platform to reduce costs and increase the compliance level of importers and exporters.

    ’The benefits of the single window platform at the ports are immense, because on a micro level, it will boost the competitive advantage of our ports and its traders on the international markets, while increasing government’s revenue, boost foreign direct investment, introduce simpler, faster clearance, and release processes,” he said.

    Government’s attention on the SW, the exporter said, should be on reducing time and cost of doing business at ports; simplification and automation of ports operations, and reducing the human interface and increasing transparency among others when the government finally decides to unveil the national single window.

  • Vodacom: collaboration key to efficiency, profitability

    Collaboration to enable large and small businesses with specific problem solving solutions will create efficiency to ultimately increase profitability, Vodacom Business Nigeria, has said.

    Speaking at this year’s Nigeria Technology Innovation and Telecoms Awards in Lagos at the weekend, where the firm won four awards, its Managing Director, Lanre Kolade, said the firm is taking the lead in the telecoms industry by providing tailor-made solutions that maximise productivity regardless of location.

    He said: “We are honored to accept the awards. Opportunities such as these remind us of the importance to go beyond just providing a service to clients. We aim to collaborate and enable large and small businesses with specific problem solving solutions that make the lives and businesses of our customers more efficient and ultimately more profitable. Our gratitude goes to these customers whose businesses are at the epicenter of the development of the Nigerian economy and look forward to exploring opportunities in future.

    “As the world progresses further into the digital age, with people and services expanding across borders, the need for a reliable end to end managed network service becomes invaluable. Our managed services provide the same high level of comfort for global businesses with reach across different territories as it does for new startup businesses with partners and stakeholders on different continents.”

    The industry celebration, organised by the Association of Telecommunications Companies of Nigeria (ATCON), aims to recognise organisations and individuals at the fore front of technological advancement and innovation in the Telecoms industry.

    Vodacom Business Nigeria was recognised as Enterprise Solution Provider of the year, Internet of Things (IoT) Solutions Provider of the year for the second consecutive year and as Managed Service Provider of the year. For the company’s stellar performance in providing optimum services for its customers, both locally and internationally, it also received the coveted Telecom Business of the Year award.

    These recognitions followed a long standing track record that Vodacom Business Nigeria has developed in the market over time, delivering superior enterprise-grade Connectivity Solutions, Cloud and Hosted Services, Enterprise Voice Solution and Internet of Things to business in Nigeria.

  • Shippers’ Council boss seeks efficiency at ports

    The Nigerian Shippers Council (NSC) is determined to make the ports more efficient to enable them compete with those of neighbouring countries, its Executive Secretary, Mr Hassan Bello, has said.

    He told The Nation that operators and other stakeholders should collaborate with the government to make the ports attractive, competitive and to be the sub-region’s preferred cargo destination.

    The collaboration, he said, is necessary to drive the reform in the sector to attract more cargoes. According to him, NSC is working with the government and private operators  to create a level-playing field for all.

    “The council is looking for an equilibrium that is needed in port operation, and that is why we interact with the operators regularly.

    “The port system is a representation of various interests and everybody has a target. That is why there is need for a neutral observer that will bring everybody together.

    “That is what the Nigerian Shippers’ Council is doing to cement the relationship so that synergy will be brought to bear on the positive contribution of shipping to the  economy.

    “The more cargo we have, the more it translates to economic growth; the more it translates to employment; building of new infrastructure and making transportation the driver of the nation’s economy,” he said.

    Bello said the complaints by port users, shippers and shipping companies vary, adding that  the complaints were to right certain wrongs. Some complaints, he said, are monetary, some on lack of equipment and short-landing of goods.

    The council, Bello said, has been persuasive with its regulatory power to eradicate the challenges hindering port operations and make the ports the preferred cargo destination. He said genuine automation of port operations would increase efficiency and decrease waste.

    The effect of these, according to him, would be making the ports attractive with increased cargoes, which in turn, would enhance government revenue.

    Bello said there would be more employment and the ports would then become the preferred destination for importers.

    “If it is five days in port A and it is one day in port B, I will rather go to port B because it is the economy of scale that determines which port is used. We have made it possible for us to make that comparison within the sub-consciousness of the national discourse on the economy.

    “It is important for our ports to be efficient and our ports are picking up now. Corruption is what we have been talking about and there are many ways to kill corruption and one of them is automation because the moment you have automation, corruption will just disappear. With the introduction of electronic payment platform, what took place in six days then, will now take place in six seconds.

    “Some of the delays have been eliminated by the Nigerian Ports Authority (NPA) and the agency is also trying to introduce other electronic system of doing things, the same thing with Customs,” he said.

    The NSC boss urged the government to address the challenges confronting the port system with good policies.

    Investors, he said, needed  certainty and ease of doing business in Nigeria, which could be brought about by the government intervention, especially in the gridlock at Apapa.

    According to him, no matter how efficient a terminal is, if there is no road to evacuate cargoes, it will be difficult. So, there must be some level of intervention.

    “The ideas are to have an electronic passage to ensure that a truck is only in Apapa when it is needed to pick or drop cargo. Then, we don’t need trailers to go to tank farms because we have the pipeline, which is also a means of transportation.

    “The moment  we have these pipelines pumping to Mosimi and other flow stations, then we don’t need tankers in Apapa.

    “We cannot rely only on access road, ports should be accessible by road, rail, inland water ways and pipelines because the port is not a storage place for cargo at all,” he said.

    Bello also said the NSC is also establishing Truck Transit Parks along major highways in the country to help address the challenge of trucks parking along major roads in the country, adding that  the project is Public Private Partnership (PPP) aimed at reducing incidences of road congestion and loss of cargoes due to indiscriminate parking by truck drivers.

    The executive secretary explained that the council, in partnership with states, would build modern parks with hotels, restaurants, filling stations and garages for repair and maintenance of vehicles.

    According to him, the facility will also have weigh measures not only for trucks, but also small cars travelling at night can stop over there and stay because there will be security. This will provide revenue for the state government because there will be employment for people and other small businesses can spring up also.

    “We have secured a land from Kogi State Government along Abuja road; Enugu State Government has also given us land in Obolo Afor and other state governments have indicated interest in the project,” he said.

  • E-payment promotes efficiency in resource allocation, says CBN

    Channeling of payment through the e-payment leads to efficiency in allocation of resources, especially in an emerging market like Nigeria, Central Bank of Nigeria (CBN) Deputy Governor, Operations, Adebayo Adelabu has said.

    Speaking at the Electronic Payments Incentive Scheme Efficiency Awards held in Lagos, he said e-payment leads to increased consumption,  more production and employment.

    “We have seen the growth in volume and value, but I believe we are still scratching the surface, as the potential growth in the payment ecosystem is heaps.

    ‘’Furthermore, the payments system has been a harbinger of hope for the economy as operators in the payments system have been attracting foreign direct investment notwithstanding the challenges. Also, you have made the country proud and our payment system a bench mark in our sub-region, through your innovations, hard work and collaboration,” he said.

    Adelabu lauded the successful turnout of the Bank Verification Number project and implore all stakeholders to ensure that we maintain the integrity of the platform to derive the maximum benefit.

    “Let me thank you most importantly on the collaborative spirit, work done on integrating the Fintech Start-ups, as I regularly receive briefings on how you continuously collaborate with the Central Bank of Nigeria to ensure that the country gets it right. We will continue to count on you in the years ahead as we partner to greater heights in delivering exceptional electronic payments services that will further extend beyond the  borders and spread more vigorously across whole of Africa,” he said.

    He said banks have continued to make life easier for Nigerians, with electronic payments innovations and extending the reach of financial services to reduce cash intensity in our economy.

    “Let me thank Nigeria Interbank Settlement Systems (NIBSS) Plc and members of the Electronic Payments Incentive Scheme Committee for creating this relaxed atmosphere in which we play down the intense competition and nerve-racking daily efforts to ensure availability and efficiency of electronic payments system at all times: twenty-four hours a day, seven days a week. It is my hope that the systems will behave for the few hours we are here so we can fully let down our guards and relish this moment of celebration of our efforts in 2017,” he said.

    He said stakeholders project deserved to be comendation for braving infrastructural limitations, increasing and worrying cyber security challenges, needs for sensitisation of Nigerians to accept electronic payments and regulatory requirements. ‘’You have been unrelenting and because of your activities, Nigeria continues to be celebrated as a trail blazer on the continent in electronic payments services.

  • Repositioning African airports for efficiency

    From prohibitive charges and levies to poor deployment of technology, managing airports in Africa is becoming a difficult undertaking. Experts say managers of airports in Africa, must take a critical look at facility modernisation; diversification beyond aeronautical sources of revenue; enforcement of global safety and security standards and other interventionist measures to make airports attractive to passengers and other users, KELVIN OSA OKUNBOR reports.

    A global alliance led by the International Civil Aviation Organisation (ICAO) and Airports Council International (ACI)   is building on how to ensure African airports are not only safe and secure, but are also fitted with modern facilities to  make them user-friendly.

    Besides modernisation of facilities, experts sayAfrican countries need to restrategise on how to make the airports attract revenue beyond primary sources – flights.

    Experts say better management of airports  in Africa could assume new dimensions, if their managers think out of the box by designing models that position them as mere   public service providers.

    They argue that African airports should be commercial enterprises that are efficiently managed to generate more revenue and subsequently declare profits.

    These issues were on the burner last week, when over 300 delegates from across the globe met at the 59th Airports Council International (ACI) Regional Conference and Exhibition in Lagos to fashion strategies for efficient management of airports.

    With member-states numbering over 176 countries having 1,940 airports, ACI as the voice of the world’s airports, has served as a  veritable platform for developing best practices in airports management.

    It has remained the key driver of policies in the industry since 1991.

    Presidential remark 

    ACI President Saleh Dunoma said the global body would continue to focus on how to improve on airport security through its  Airport Excellence in  Safety  Programme (APEX).

    Dunoma, who is also Federal Airports Authority of Nigeria (FAAN) Managing Director, said many African countries, including Nigeria, has benefited from ACI’s interventions with programmes tailored to achieve better management of airports.

    Dunoma said: “FAAN’s relationship with ACI Africa spans over a decade and it has been a worthwhile and mutually benefitting relationship.

    “AC1 Africa works with its members and also liaises with other International bodies like ACI World, ICAO  to ensure improved human capacity development by providing various standard and customised training in different skill areas to ensure safe, secure and efficiently managed airports.

    “Last year, Nigeria signed the agreement to become one of the ‘AC1 global training centers, to further advance the goal of human capacity development in FAAN and in Africa. The first training after the agreement was conducted in December 2017 where Nigeria received participants from other African countries.

    “ Over the years, ACI Africa had focused on safety as a priority leading to the initiation of the world wide acknowledged Airport Excellence (APEX) in safety programme. This has recorded great achievements as major airports continue to requests for this programme.

    “Nigeria has been in the forefront in striving to attain the highest levels of safety standards, hence with the assistance of the APEX in safety programme, we were able to achieve the certification of our  two  busiest airports.

    “Our goal is to certify all our international airports and we are working tirelessly to achieve that, them we have taken the bold step to carry out the APEX in safety programmes in our international airports.

    “ The APEX review for Kano and Port Harcourt were carried out in March while reviews for Enugu and Kaduna airports are scheduled for June.

    “The evolving nature of airport management demands a transformation of airports who mostly serve as public service providers and not commercial enterprises that are efficiently managed to generate more revenue and subsequently declare profits.

    Fed. Govt’s position 

    Secretary to the Government of the Federation, Boss Gidado Mustapha said the government was not oblivious of the fact that there is an urgent need to intensify efforts to improve aviation infrastructure.

    Describing airports as a catalyst for Africa’s economic development, he said the government should consider as urgent facilities upgrade, improve operations, service delivery as ell as security and airspace safety.

    He said: “To transform aviation business in Africa, countries would be expected to continue to attain and maintain global safety standards, strive to achieve competitiveness and user friendliness,  install infrastructure and navigational aids to maximise aircraft utilisation for passenger and cargo movement   in addition to achieving  costs competitiveness.”

    Other steps to be taken, according to Mustapha, were that African countries should develop integrated multi-modal transport system around the airports as well as diversify revenue lines.

    Said he: “For sustainable development of African airports, new strategies must also evolve. These strategies include holistic planning for defined development targets; effective and efficient financing plan and successful implementation. The role of partnership with the private sector cannot be over-emphasised.

    ‘’All these would be complemented by a reliable legal, institutional and regulatory framework to institutionalise policy.”

    ICAO’s Intervention 

    In his presentation, President , International Civil Aviation Organisation ( ICAO) Council, Dr Bernard Olumuyiwa Aliu said the global aviation regulator continues to work with African countries  on how to plug gaps militating against effective airports management in Africa.

    With aviation becoming  a catalyst for sustainable social, economic and human development,  supporting 6.8 million jobs and generating $72.5 billion in Gross Domestic Product (GDP) in Africa, Aliu said the global body would continue to support the sector.

    He said: “ The efforts being undertaken to reposition air transport in Africa, and ensure its sustainability, are in clear acknowledgment of the fact that regional air traffic is still forecast to grow at roughly 3.8 per cent annually through 2032.

    “ I will like to reiterate that this rapidly-expanding air traffic can only be sustained and optimised through the continued development at modernisation of local aviation infrastructure, particularly at airports.

    “This is a key reason ICAO’s Global Plans are helping to establish globally-harmonised objectives and requirements in support of the worldwide modernisation of our sector which is now underway.

    “Our related goal is to ensure there are “no constraints of infastructure capacity, technology and financial resources for aviation development.

    “It has become increasingly difficult however, for many states and airport operators to mobilise the significant and dependable funding and investments required for high quality aviation infrastructure.

    “ The very limited volume of official development assistance (ODA) and Southsouth cooperation funding available for our sector’s infrastructure projects is a big part of this challenge, as are the constraints being faced with respect to public financing more generally.

    “Another key concern is the risk associated with a lack of sufficient institutional, legal and regulatory enabling frameworks in many African states, something which makes it very difficult for financial institutions to invest in airport projects.

    He charged African countries see airports as being more than mere terminal buildings, requiring that attention be paid to air side safety

    Aliu said: “More attention must continue to be paid to the airside safety priorities at Africa’s airports, including international airport perimeter fencing, taxiway and runway safety and effective fire services and wildlife management.

    “ICAO remains particularly concerned that many African airports  are accepting international flights without requisite certifications. To address this significant deficiency, the AFI Plan includes a specific project championed by the ICAO Dakar and Nairobi-Regional Offices to assist African states in Aerodrome Certification in compliance with the Standards and Recommended Practices (SARPs) contained in Annex 14 to the Convention on International Civil Aviation.

    “It is also important to remember that airports are very much at the ‘front lines’ where aviation security and passenger facilitation are concerned, and that they are the source of many travellers’ first impressions of the country they will visit. Airports also play a very important role in our efforts to check the spread of communicable diseases through air transport.

    “ Conscious of these challenges, ICAO has been working with ACI and other stakeholders to assist states in securing resources and capacities to develop and modernise their aviation infrastructure.“

    Angela Gitten’s  position 

    In her presentation, ACI World President, Angela Gittens, said ICAO and ACI had formed a synergy to improve airport facilities in Africa.

    She said the two global bodies were working to modernise and expand airport infrastructure.

    Gittens noted that this had become imperative because of the projected growth of passenger traffic on the continent, as some countries in the region were witnessing or would soon witness rapid economic growth that would make more demand on air transport.

    She  highlighted some of the challenges confronting African airports growth. They include protectionism and competition, saying Africa often described as a sleeping giant has enough potential to develop and become a leading part of the global economy.

    Gittens said  African airports managers should ensure that they meet the need for passenger growth by  contributing significantly to the development of aviation globally.

  • Tax efficiency and development

    Singapore, a city-state much smaller than Lagos State in landmass, is often touted and rightly so, as a marvel of rapid, yet sustainable economic development and advancement. Its success in transforming from a third to a first world country in a period less than 40 years has continued to impress, if not astound people.

    Singapore, before its transformation, faced the problem of overcrowding in the city, poor living conditions, a severe lack of infrastructure, and low technology, among others. Its current status as a thriving international business hub, characterized by a high standard of living, did not happen by chance. It was orchestrated through proactive and deliberate far-sighted planning.

    The problems that Singapore surmounted on the path to economic development and prosperity are some of the issues that Lagos State is today tackling as it aspires to transform into an efficiently run and more productive mega-city with vastly improved living conditions. A review of Singapore’s model reveals that, among other things, there was a systematic approach to the development of infrastructure.

    While Singapore’s experience shows clearly that infrastructure is central to socio-economic advancement, several studies by experts on other economies across the world have also identified a strong positive and even symbiotic link between infrastructure or infrastructure spending and growth. Any economy that wants to pursue sustainable growth must therefore invest in its infrastructure.

    Lagos State’s current drive at giving a massive boost to infrastructure development must therefore be welcomed as a leap in the right direction. Addressing the huge infrastructure deficit is crucial to unlocking the potential of the state and attaining the growth and development that we all desire. However, infrastructure development requires funding.

    If we agree that infrastructure development is that which must be done, then the required funding is equally that which must be secured. But the funds must be procured in a way that will ensure an effective and sustainable developmental programme.

    In advanced economies like Singapore’s, taxation constitutes a major source of government revenue and is an acceptable practice among their citizens. Taxation is also employed in other ways such as tariffs that protect local industries from foreign competition, checking undesirable practices and fostering inclusive development through asymmetric application.

    These economies also prove beyond doubt that taxation is a veritable source of funding for sustainable development, perhaps with its added advantage of empowering the citizens to demand more accountability from governments and as well constraining governments towards more transparency and efficient utilisation of funds. Apparently, making development everybody’s business fosters better growth.

    Tax to Gross Domestic Product (GDP) ratio (total tax collected as a percentage of the market value of all officially recognized final goods and services produced within a country in a given period), and the tax contribution to a country’s revenues are good indicators of efficient tax systems. In 2016, tax revenue in the European Union was 40 per cent of GDP (France 47 per cent, United Kingdom 35 per cent) and accounted for around 90 per cent of government revenues. Tax is usually about 26 per cent of GDP in the US and accounts for about 85 per cent of government revenue. In Singapore, it is about 14 per cent and 68 per cent, respectively.

    Nigeria’s tax to GDP ratio of six per cent clearly depicts the poor state of taxation in the country while at the same offering the opportunity to significantly increase government revenues.

    Lagos State’s internally generated revenue (IGR) for 2017 was N501billion, amounting to an average of N41.7billion per month.  Governor Akinwunmi Ambode of Lagos State has set an improvement target of N50billion per month for 2018. But even this ambitious plan will have to be scaled up progressively and substantially, considering the fact that the cost of fixing the state’s infrastructure deficit has been estimated at $50 billion.

    It is small wonder, therefore, that Lagos State is embracing taxation as a major source to secure the required revenues to fund the massive infrastructure gap in the state. With current low awareness and compliance rates, an estimated population of 24 million people (with more than seven million gainfully employed) and thriving businesses, Lagos can rely on taxation to provide the funds to drive its development.

    To get the full benefits though, taxation must be administered efficiently. This means there should be a high compliance rate by taxpayers and low administrative costs relative to the revenue collected. This is more easily achieved when the tax system is fair, simple, well organized and enforceable

    Achieving this efficiency requires a new approach to tax administration by the government. For instance, ramping up the awareness of citizens to the imperative of taxation, bringing a lot more people and businesses into the tax net (with demonstrable efforts at attaining total compliance of all eligible taxpayers), and applying some taxes asymmetrically such that the poor may not be as burdened as the rich will create a sense of fairness while increasing total funds accruable.

    The use of technology to improve the ease of remittance by citizens and businesses, the harmonization of certain taxes can also make taxation simpler for the taxpayer while improving the government’s ability at enforcement. Reviewing the tax rates that have become obsolete is also essential.

    Efficient taxation leaves a fair burden on all citizens and businesses while accruing substantial funds to the state’s coffers. It engenders more participation of citizens in governance which in turn forces more transparency and fiscal discipline on the government on spending and more rigour in the selection of projects to deploy funds to.

    The funds accruable from efficient taxation are also more predictable, unlike allocations from the federal government, which are subject to the vagaries of the crude oil market. Predictability helps to make proper and long term planning, which is essential for sustainable infrastructure development

    Efficient infrastructure supports economic growth as it facilitates timely delivery of information, goods and services, while accelerating the attainment of social objectives such as improved healthcare, higher educational standards and higher standards of living. It also attracts foreign direct investments from multinational corporations which act in synergy with the efforts of government while improving the tourism potential.

    Several infrastructure development projects have already been initiated by the Lagos State government. The entertainment and transport hub under construction at Oworonshoki is visible to all commuters that ply the Third Mainland Bridge as well as the improved lighting and security of that axis. Light rail construction is underway along with road constructions and rehabilitations while the exploitation of marine transport opportunities are in the works. The provision of pedestrian bridges, lay byes and street lifting have improved the safety and security of citizens and also decongested traffic.

    A lot still needs to be done to redress Nigeria’s infrastructure deficit. It is hoped that Lagos State can expedite the attainment of efficient tax administration so that the economic development Lagosians crave will be accelerated through well planned and proactive investments in infrastructure.

     

    • Adedeji, a tax and revenue expert lives, in Abuja.

  • NSC: we won’t compromise on ports’efficiency

    The Nigerian Shippers Council (NSC) remained committed to ensuring efficiency at the ports to make them compete with those in neighbouring countries, its Executive Secretary, Hassan Bello, has said.

    Bello told The Nation that automation of ports’services was necessary to drive the change needed to reform the sector to attract more cargoes.

    He said ports automation and the establishment of the Truck Transit Parks would increase efficiency and reduce waste, adding that openness would facilitate cargo clearance.

    The NSC chief urged the government to take a deliberate action to address the numerous challenges confronting the port system through consistent and predictable policies.

    He said investors needed certainty and ease of doing business in Nigeria, which could be brought about by government’s intervention, especially in addressing the perennial gridlock in Apapa.

    Bello said no matter how efficient a terminal is, it is extremely difficult to evacuate cargoes with good road network. “So, there must be some sort of intervention on the roads,” he said.

    According to him, this was necessary to ensure free passage of trucks in and around Apapa when they are needed to pick or drop cargoes.

    For the tank farms, Bello said there was no need for trailers to go to tank farms since there are pipelines, which are also means of transportation.

  • Vodacom: technology’ll drive efficiency, productivity

    The Managing Director, Vodacom Business Nigeria, Lanre Kolade, has advised entrepreneurs in Nigeria to adopt new technologies such as Internet of Things (IoT) and Big Data Analytics currently disrupting the business world, to drive productivity, efficiency and remain competitive.

    Kolade who spoke at the Business Day CEO Forum Nigeria 2017, an annual thought leadership initiative in collaboration with McKinsey & Co, he said: “Technology such as IoT enables growth across business sectors. Today, many organisations are using this technology to cut costs, reduce risk, increase revenue and efficiency.”

    According to him African businesses are gradually adopting IoT, with Nigeria being one of the leading markets on the continent. This adoption is driven by the increasing availability of affordable smart devices, coupled with the need for enterprises to deliver shareholder value. According to the Vodafone’s Global IoT barometer report 2017, the adoption of IoT has grown significantly from 12 per cent in 2013 to 29 per cent in 2017 and 49 per cent of these adopters use IoT in conjunction with analytics to improve business decision-making.

    In Africa, disruptive technologies such as IoT holds significant potential and opportunities are found in different sectors ranging from finance, insurance to manufacturing and agriculture, including the education sector. Organisations of all sizes now use IoT to optimise processes, automate production and monitor the supply chain.

    Kolade said: “We can use technology to disrupt education, with broadband penetration, digitisation becomes possible and education contents will be more accessible to all in Nigeria.”

    Vodacom is using technology to address challenges in, education, healthcare and agriculture in Africa. Vodacom recently deployed IoT solution for education and healthcare in Kaduna State using a mobile school management solution which provides real-time visibility of all administrative activities at over 4000 schools. The healthcare solution monitors stock level and distribution of essential medicines in over 250 medicine dispensary facilities in the state.

  • Wema Bank to reorganise capital for efficiency

    Wema Bank to reorganise capital for efficiency

    Wema Bank Plc has issued a notice of an Extra-Ordinary General Meeting (EGM), to seek the consent of its shareholders for a comprehensive scheme of capital reduction.

    The exercise is in line with the procedures set out in Sections 105, 106, 107, 108, 109, 110, 111 and 120 of Companies and Allied Matters Act (CAMA) and Rules 4(d), 4(g) and 5(4) of the Company Proceedings Rules 1992.

    Wema Bank is pursuing this holistic approach to enable it position its balance sheet for better efficiency. Having been transformed to one of the leading banks within the retail banking space, Wema Bank with its national authorisation, has reemerged stronger, more efficient, resilient and customer-focused organisation with a robust risk and governance structure.

    A review of the bank’s financials revealed the carrying of a negative retained earnings balance, which arose from losses prior to June 2009 when the current management assumed office.

    Though the bank has since returned to profitability in the last four years, the implication of negative retained earnings is that, the bank, by regulation, is precluded from providing necessary returns to providers of capital.

    “We believe the completion of this exercise would result in the plough back of subsequent years’ profits – aiding the continued growth of the institution, improvements in performance, particularly as it relates to the reduction in our cost to income and return on equity ratios while commencing the payment of dividend,” a statement from the bank said.

    The holistic capital reduction scheme would have no impact on the current holdings of shareholders, though the Bank will be creating a capital reduction account while an equivalent amount will be moved from its share premium account to effectively close the entries. Following the consent of the shareholders, the bank will subsequently make an application to the Federal High Court  for the approval of the scheme.

    Wema Bank continues to improve on its performance, despite the relatively challenging business environment. Furthermore, the bank has recorded successes in several financial and non-financial priorities specifically, Wema Bank’s growth strategy – Project LEAP – revolves around a blended approach involving partnership, growing branch network and digitization.

    This was further strengthened by the May 2017 launch of ALAT – Nigeria’s first fully digital Bank. ALAT is the first of its kind with its end-to-end digital offering and customer interaction

    The bank has its National Long-Term Rating affirmed at (BBB-) by Fitch and Global Credit Rating (GCR), both leading credit rating and research agencies with its Non-Performing Loans (NPLs), Capital Adequacy Ratio and Liquidity Ratio all within the regulatory threshold.