The Nation Newspaper

Tag: firms

  • How firms can spread risks

    How firms can spread risks

    Businesses need to work harder to spread responsibility for risk management, according to a report from the Association of Chartered Certified Accountants (ACCA).

    The survey of over 2,000 members found that accountants have vital role to play in successful risk management.

    The survey, it said in a statement, also found a statistical link between the use of accounting practices that contribute to managing risk and lower occurrences of fraud. It also found differences in the perception of a company’s exposure to risk between those at board level and those accountants working below board level.

    ‘Risk happens at all levels of business. Risk management needs to be something that is undertaken by everyone in an organisation so it is fully integrated. The survey shows that accountants have an excellent grasp of the risks faced by their organisation and the steps needed to manage those risks. The survey also shows clear support amongst accountants for ‘challenging senior people’ as being part of good business culture,” it said.

     

  • Health Forever among Nigeria’s fastest 50 growing firms

    Otunba Olajuwon Okubena, representing Health Forever Products Limited, has been invited to this year’s AllWorld Summit at Harvard, where AllWorld entrepreneurs and partners will spend three days from June 24 to 27.

    The company and other organisations will test their competitive spirits in the AllWorld Adventure race, build partnerships with AllWorld winners, and spend time with Professor Michael Porter, who developed “Shared Value” strategy.

    They will also participate in discussions with Harvard faculty members, investors, and corporate leaders from across the world as well as national and international VIPs.

    The speakers include Tarun Khanna, the author of Winning in Emerging Markets: A Road Map for Strategy and Execution and Grand Circle Travel Chairman, Alan Lewis, who grew his business 20 per cent a year for 20 years, to name a few.

    The attendees will on June 27 spend some time in New York city with the staff, fund managers and high net worth clients of Credit Suisse.

    As an AllWorld winner, Enterprise Ireland has also invited about 15 entrepreneurs to meet top agriculture, health and technology entrepreneurs in Ireland. The event is scheduled for June 21 and 22.

    Health Forever would be represented by Otunba Okubena.

    Last month, AllWorld Network and the Tony Elumelu Foundation announced the Nigeria 50 winners. Health Forever was among the winners.

    AllWorld systematically identifies private growth companies and ranks the fastest growing for the Arabia 500, Africa 500, Asia 500, Eurasia 500, Latin America 500 and Nigeria 50.

    Being on an AllWorld ranking puts companies on the world map, drawing the market to them – what we call Visibility Economics. Ranked companies “go public”, attracting new investors, customers, joint venture partners and talents so they continue to grow and get to scale.

    On March 21, Nigeria 50 winners were recognised at the Nigeria 50 awards and summit in Lagos.

    The event featured a panel of discussants with Tony Elumelu and Harvard Business School Professor Michael Porter and a Gala Awards Event attended by winners, business and government leaders including the Minister of Industry, Trade and Investment, Mr Olusegun Aganga.

    Health Forever was represented by Otunba Okubena, Mrs Bisola Banjoko Okubena, Mr Abimbola Okubena, Ms Ololade Okubena, Dr David Abia-Okon and Mr Lanre Falade.

    Representing over 10 industries and growing at an average of 100 per cent a year, the Nigeria 50 are at the leading edge of a new form of competitiveness. By being on the Nigeria 50, winners gain access to a global network of entrepreneurial peers and world famous academics and investors.

    The company’s product, Jobelyn, is an extract from West African sorghum, which may provide antioxidant, anti-inflammatory effects and immune benefits. It also offers food colour and nutriacosmetic potential, according to new data in peer-reviewed journal publications.

    Health Forever Product Limited in the past 15 years developed the popular Sorghum bicolor dietary supplement branded as Jobelyn from a traditional folk medicine that has been in use for centuries to treat diverse ailments, such as, anaemia, diabetes, arthritis, sickle cell anaemia, cardiovascular problems, and others.

    Based on scientific investigations and tests performed by NIS Laboratories (USA), Dover Sciences (USA), and Health Forever Products, it has been proven that the unique properties of the West African sorghum go beyond a simple content of antioxidant polyphenols and water-soluble pro-inflammatory glucans.

    The complexity is illustrated by the presence of antioxidants and anti-inflammatory compounds in both the aqueous and ethanol-based extracts, and the presence of immune modulating compounds with selectively different biological effects in the aqueous versus ethanol-based extracts.

    The Chief Operating Officer (COO), Health Forever Products, Ademola Okubena, in an interview, said the supplement was positioned for the anti-oxidant market. This is because it was confirmed through peer-review publication that it was four times more powerful than the current American champion, i.e. Acai berry. It is also confirmed to possess strong anti-inflammatory and immune boosting support.

    He said the ingredient is sourced locally in Nigeria from the company’s plantation. “Nigeria is a major sorghum producing country in the world, with a capacity to produce sufficient sorghum sheaths to meet world demand,” he added.

    According to Okubena, Jobelyn is the most popular dietary supplement in the Nigerian market for over a decade and it is being prescribed by orthodox medical practitioners to treat anaemia, sickle cell anaemia and other diverse ailments. “The lack of awareness about the potential of sorghum, particularly in the American market where it is only used for animal nutrition, contributed to the slow growth on the internet market and with adequate scientific backing and orientation, the awareness should launch the product significantly in the immediate future.”

    According to the data published in the Journal of Food Science last year, the researchers from the Soil and Crop Science Department at Texas A and M University indicated that the sorghum contains high levels of the polyphenol antioxidant, 3-deoxy-anthocyanidin, which may offer an intense red colour for food and beverage formulators, adding that the pigment content is resistant to pH changes and bisulfate, while many other natural colourants, such as anthocyanin, do not tolerate these changes.

    Okubena said the ingredient could also be used as a nutricosmetic product. This followed the report of a study from Brunswick Laboratory, corroborating that the ingredient has collagenase inhibition which is 15-fold that of Vitamin C, eight-fold potency of Idebenone and 30-fold potency of ferrulic acid. The elastase inhibition is 22-fold potency of Vitamin C; eight-fold potency of ferrulic acid and one-and-a half-fold potency of quercetin.

  • DLM raises N50b for firms

    Toren Merrifield (DLM) raised about N49.89 billion for corporate bodies from the capital market between 2011 and 2012.

    Its Chief Executive Officer, Mr Sonnie Ayere, made this known at the Nigerian Stock Exchange’s (NSE’s) CEO Sectoral Dinner in Lagos sponsored by the firm.

    The dinner, which was attended by the Minister of Industry Trade and Investment, Mr Olusegun Aganga, focused on the industrial goods sector of the economy.

    Ayere, who spoke on Tapping the opportunities in the capital market for the development of the industrial sector, said the firm raised N49.89 billion for four companies and Federal Mortgage Bank of Nigeria (FMBN).

    Analysis of the funds showed that they were raised through bonds and equities. For instance, DLM raised N8.01 billion for Dana Group through bonds issuance in 2011. The same, it raised N4.63 billion for Tower Aluminium Group. It also assisted Chellarams Plc to raise N1.5 billion in 2011 and N540 million in 2012. It also raised N4.65 billion for Food Concepts Plc via equity investment in 2011 and 2012. The firm also played a leading role in the FMBN’s successful sourcing of N30 billion through bond issuance in 2012.

    Ayere, who explained that one of the major challenges of companies in the industrial sector is the high cost of finance, noted that the capital market provides huge opportunities for companies to source cheaper funds.

    He added that apart from having access to cheaper funds, being listed on the NSE would ensure continuity and sustainability of the business, liquidity for the shares, good corporate governance, better valuation and increased visibility for the companies.

    Ayere said DLM would continue to assist companies willing to access the market for the growth of the economy.

  • Niger to try seven firms for N4b ‘tax default’

    The Niger State Board of Internal Revenue yesterday said it would prosecute seven companies for allegedly owing it over N4 billion tax arrears.

    Its Chairman, Alhaji Sulieman Abdullahi, told reporters in Minna, the state capital, that the board discovered the defaulting companies following the engagement of tax consultants.

    He said: “The preliminary reports of the some of the consultants’ tax audit showed that some organisations had owed the board huge sum of money. Seven of them owed over N4 billion unpaid taxes and we are set to collect the money.”

    Abdullahi said the revenue board had written the affected companies on the need for them to settle the arrears and normalise their books with the board or be prosecuted.

    The board chairman said two organisations in Suleja had been taken to court for failure to pay their taxes, after the board had met with them during its tax enforcement drive.

    He said the organisations refused to heed the advice of the board’s officials.

    Abdullahi, who said the engagement of the tax consultants would help the board to meet its monthly target, added: ‘’We have to engage 19 additional consultants to the one that has been working with the board, to expand our horizon and ensure easier collection of taxes from individuals and organisations.

    “We borrowed a leaf from Lagos State, which has over 700 consultants on tax collection, each with a specific mandate to tackle tax in its area of specailisation, to ensure optimal tax collection.”

    The chairman explained that the board had written the affected organisations to pay within a month or face prosecution.

    He added that the consultants would continue their audit of payments by various organisations to ensure that defaulters pay their tax arrears.

    Abdullahi said the board was working to meet its N1 billion monthly target.

  • How firms grow the economy

    Over the years, brands and their parent companies

    have succeeded in building the economy of their countries and foreign hosts.

    This is possible because of the profits the brands make, employment opportunities they generate for citizens and Corporate Social Responsibility (CSR), including provision of electricity, roads, pipe-borne water and manufacturing plants.

    Such is the value they add to natural economy that the companies are really supported by the host countries in period of economic adversity.

    Between 1998 and 2007, Nokia contributed a quarter of Finnish growth rate and in the early part of the 21st century it employed more than 24,000 people. In a country where only natural resources are its vast forests, Nokia succeeded in putting Finland on the world map. It is the first phone manufacturer to own a care centre in Nigeria.

    The company also partnered with the Lagos State government to implement the house-numbering project.

    That is why Nokia users have access to a detailed offline map of Lagos State. They connect with their consumers, sell more with the new improved application that provides detailed offline map. Yet, Nokia has no manufacturing or even assembly plant in Nigeria.

    Among many Chinese companies, Huawei has distinguished itself as a telecommunications’ equipment manufacturer. Today, it is the largest telecoms equipment manufacturer.

    In 2010, the company announced a net profit of over $3 billion. In addition, Huawei runs a training facility in Abuja, where people are being trained. This facility is the first of its kind in West Africa.

    Samsung Group, which has about 80 subsidiaries with Samsung Electronics as its main firm, is responsible for 20 per cent of South Korea’s Gross Domestic Product (GDP). Samsung has a care centre in Nigeria for the servicing, repair and maintenance of its products. In partnership with the Lagos State government, the company also owns a Technical School in Ikeja, Lagos.

    After training, however, beneficiaries still have to go hunting for jobs. In effect, its impact on alleviating unemployment in the country is minimal. If Samsung had a manufacturing plant, the students would have qualified to work there since they already have the technical-knowhow.

    For instance, Nestlé—the consumer-goods company—contributed 15 per cent of Switzerland’s GDP in 2012. It has a vibrant Nigerian subsidiary with a functional manufacturing plant that employs many Nigerians. It has just opened a multi-billion centre in Agbara, Ogun State.

    Guinness storehouse, the home of Guinness, welcomed over one million visitors last year and served as Ireland’s major international major tourist attraction.

    Guinness Nigeria owns a manufacturing plant in the country and undertakes many CSR projects in the community.

    Coca-Cola has over 90,000 employees across more than 200 countries; it contributes immensely to the economy through the employment of many people and execution of projects spread across communities.

    With Toyota as its spearhead, Japan’s automobile industry contributed 10.5 per cent growth to that country’s economy in 2009. It has more than 300,000 employees with the majority being Japanese. Toyota has no manufacturing or assembling plant in Nigeria, yet it is the top selling automobile in the country. Same goes for Germany’s Mercedes Benz.

    Every year, Nigeria churns out graduates in their thousands from different universities with no assurance of employment. Yet, different foreign brands have turned the country into a cash cow.

    It is projected that the sales of smartphones in Nigeria would hit N900 billion by 2015, yet unemployment is at its all-time high, crime in increasing and government is complacent in tackling the malaise.

    These companies have defended their corporate actions. They are shortage of electricity as a crippling factor. The cumulative effect of the staggering cost of generating power in Nigeria is a substantial increase in the cost of production, which means that the goods produced are more expensive than expected.

    Setting up manufacturing and assembly plants should serve to help cut costs for manufacturers since it would mean a reduction in overhead costs such as transportation.

    But when weighed against the astronomical cost of generating power in Nigeria, locating plants outside the country seems a more logical and cost effective choice. The recent spate of insecurity in the country, has served as a further encumbrance as far as this goal is concerned. Would Nigeria continue to be a dump site for these brands? Who is to blame for this misfortune – the government or the companies?

    A Professor of Economics, Makinwa Olusegun, said: “A nation that would grow must first of all grow its manufacturing sector, encourage foreign investors to build their manufacturing plants in the country. Countries such as India grew like that. If we continue to be consumers and not producers, we would end up being stagnant and may not be able to cope with the level of unemployment that would hit the country in another 10 years.

    “The government should first of all create an enabling environment for local brands to grow, and also for foreign brands and investors; make importation almost impossible and make foreign companies see the cost effectiveness of stabling their either manufacturing or assembly plant in the country.

    “For example, many companies are running to Ghana to produce and then come to Nigeria to sell. They sell 90 per cent of what they produce in Ghana here, that fact is quite unnerving. This would surely continue if it does not get worse if the government doesn’t do anything about it on time to salvage the crisis,” he said.

     

  • How firms grow the economy

    Over the years, brands and their parent companies

    have succeeded in building the economy of their countries and foreign hosts.

    This is possible because of the profits the brands make, employment opportunities they generate for citizens and Corporate Social Responsibility (CSR), including provision of electricity, roads, pipe-borne water and manufacturing plants.

    Such is the value they add to natural economy that the companies are really supported by the host countries in period of economic adversity.

    Between 1998 and 2007, Nokia contributed a quarter of Finnish growth rate and in the early part of the 21st century it employed more than 24,000 people. In a country where only natural resources are its vast forests, Nokia succeeded in putting Finland on the world map. It is the first phone manufacturer to own a care centre in Nigeria.

    The company also partnered with the Lagos State government to implement the house-numbering project.

    That is why Nokia users have access to a detailed offline map of Lagos State. They connect with their consumers, sell more with the new improved application that provides detailed offline map. Yet, Nokia has no manufacturing or even assembly plant in Nigeria.

    Among many Chinese companies, Huawei has distinguished itself as a telecommunications’ equipment manufacturer. Today, it is the largest telecoms equipment manufacturer.

    In 2010, the company announced a net profit of over $3 billion. In addition, Huawei runs a training facility in Abuja, where people are being trained. This facility is the first of its kind in West Africa.

    Samsung Group, which has about 80 subsidiaries with Samsung Electronics as its main firm, is responsible for 20 per cent of South Korea’s Gross Domestic Product (GDP). Samsung has a care centre in Nigeria for the servicing, repair and maintenance of its products. In partnership with the Lagos State government, the company also owns a Technical School in Ikeja, Lagos.

    After training, however, beneficiaries still have to go hunting for jobs. In effect, its impact on alleviating unemployment in the country is minimal. If Samsung had a manufacturing plant, the students would have qualified to work there since they already have the technical-knowhow.

    For instance, Nestlé—the consumer-goods company—contributed 15 per cent of Switzerland’s GDP in 2012. It has a vibrant Nigerian subsidiary with a functional manufacturing plant that employs many Nigerians. It has just opened a multi-billion centre in Agbara, Ogun State.

    Guinness storehouse, the home of Guinness, welcomed over one million visitors last year and served as Ireland’s major international major tourist attraction.

    Guinness Nigeria owns a manufacturing plant in the country and undertakes many CSR projects in the community.

    Coca-Cola has over 90,000 employees across more than 200 countries; it contributes immensely to the economy through the employment of many people and execution of projects spread across communities.

    With Toyota as its spearhead, Japan’s automobile industry contributed 10.5 per cent growth to that country’s economy in 2009. It has more than 300,000 employees with the majority being Japanese. Toyota has no manufacturing or assembling plant in Nigeria, yet it is the top selling automobile in the country. Same goes for Germany’s Mercedes Benz.

    Every year, Nigeria churns out graduates in their thousands from different universities with no assurance of employment. Yet, different foreign brands have turned the country into a cash cow.

    It is projected that the sales of smartphones in Nigeria would hit N900 billion by 2015, yet unemployment is at its all-time high, crime in increasing and government is complacent in tackling the malaise.

    These companies have defended their corporate actions. They are shortage of electricity as a crippling factor. The cumulative effect of the staggering cost of generating power in Nigeria is a substantial increase in the cost of production, which means that the goods produced are more expensive than expected.

    Setting up manufacturing and assembly plants should serve to help cut costs for manufacturers since it would mean a reduction in overhead costs such as transportation.

    But when weighed against the astronomical cost of generating power in Nigeria, locating plants outside the country seems a more logical and cost effective choice. The recent spate of insecurity in the country, has served as a further encumbrance as far as this goal is concerned. Would Nigeria continue to be a dump site for these brands? Who is to blame for this misfortune – the government or the companies?

    A Professor of Economics, Makinwa Olusegun, said: “A nation that would grow must first of all grow its manufacturing sector, encourage foreign investors to build their manufacturing plants in the country. Countries such as India grew like that. If we continue to be consumers and not producers, we would end up being stagnant and may not be able to cope with the level of unemployment that would hit the country in another 10 years.

    “The government should first of all create an enabling environment for local brands to grow, and also for foreign brands and investors; make importation almost impossible and make foreign companies see the cost effectiveness of stabling their either manufacturing or assembly plant in the country.

    “For example, many companies are running to Ghana to produce and then come to Nigeria to sell. They sell 90 per cent of what they produce in Ghana here, that fact is quite unnerving. This would surely continue if it does not get worse if the government doesn’t do anything about it on time to salvage the crisis,” he said.

  • Ex-militants threaten attack on oil firms

    AN aggrieved ex-militant group, under the aegis of Niger Delta Subterranean Force, yesterday threatened to attack two oil companies in Esit Eket, Akwa Ibom State.

    The oil companies are Frontier and Septa Oil and Gas.

    According to the group, the firms would be attacked, if they fail to meet its three-point demands.

    A letter was said to have been forwarded to the managing directors of the two companies.

    The letter, which was signed by the group’s leader, General Oyobio Oyobio, warned that unless the companies pay it N600million royalty and N100million monthly, they would be attacked.

    Oyobio said they should be allowed to guard the pipelines.

    “Next week, we will be ready to attack the pipelines. We are ready to visit the Central Processing Facilities.

    “If the two companies do not settle us, they should forget about the inauguration of the CPF, an oil tank farm, because we will attack it.”

    He said since 2011 the companies have refused to comply with its demands.

    “We have promised to scatter that CPF and other places if we are not settled.

    “If they like let them bring soldiers from all over the world to secure the place, they won’t be able to stop us from striking when we want to strike,”he added.

    The group’s leader said they have been neglected by the government and only a few ex-militants have been settled.

    The General Manager, Operations, Frontier Oil, Wole Adefila, confirmed that the company received a threat letter from the militants.

    Adefila assured that the company would act on it.

    He said: “I can confirm we received a threat letter from a militant group.

    “We are addressing it appropriately.”

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • FRSC boss for firm’s anniversary

    FRSC boss for firm’s anniversary

    The Corps Marshal of the Federal Road Safety Corps (FRSC), Mr Osita Chidoka, will on Friday deliver a keynote address at ABC Transport’s 20thAnniversary at the Sheraton Hotels, Lagos.

    The anniversary kicked off with the unveiling of seven coaches equipped with enhanced onboard security features and donation of three demonstration buses to the automobile/mechanical engineering departments of the Lagos State University, Imo State University (LASU), and Federal Polytechnic, Nekede.

    The firm commenced operations in 1993 as Associated Bus Company Limited with SIX mini buses, remains the only road transport company listed on Nigerian Stock Exchange after its successful initial public offer in 2006. The company has also diversified its scope to include cargo, haulage, hospitality and tourism.

  • NSE fines 30 firms N50m

    NSE fines 30 firms N50m

    The Nigerian Stock Exchange (NSE) has imposed a N50 million fine on 30 companies, that violated trading rules, its Chief Executive Officer, Oscar Onyema has said.

    He said 14 companies have been suspended because the regulators believe that punishing rule breakers would serve as deterrent to others.

    Onyema, who spoke at the Standard Bank Investors’ Conference in Lagos, reiterated the NSE’s commitment to achieving zero tolerance for operators that violate market rules.

    He said while penalties for violating trading rules should be commensurate with the offences, they must be stiff enough to discourage violations.

    He said the enforcement regime would also be that which attracts the confidence of participants in its process and outcome, adding that the integrity of any market can be measured by the level of information disclosure, transparency and quality of governance of institutions.

    He said the Commission is would ensure that public companies release periodic information promptly, stressing that the greatest asset of any capital market and, indeed, financial market is its investors. It is investors, whether retail or institutional, who provide the savings which are needed for productive investment, he said.

    He insisted that if investors lose confidence in the capital market, the ability of the market to mobilise and channel long term funds, which are vital to economic development, willbe marred.

    He said it is impossible to effectively monitor an increasingly sophisticated and dynamic market without the application of technology. The regulators, he said, is leveraging on technology to police activities in the market.

    He said such technology would improve the capacity to detect insider dealings, market manipulation and other forms of abuses, adding that investigation would remain a core component of the enforcement regime.

    Nigeria’s benchmark stock index rose to the highest in more than four years as investors speculated that lenders would post positive year-end earnings. Investors are expecting “good results for the end of 2012 and to be delivered a good dividend. Analysts insisted that banks are expected to start reporting year-end earnings in March and the next few weeks are expected to be interesting.

  • Stakeholders chide mobile money firms

    Stakeholders have berated the 16 mobile money firms for not living up to expectation a year after they were licensed by the Central Bank of Nigeria (CBN). They said the mobile money companies were still battling with the problems relating to capacity building, agent networks, and strong outlays.

    The Managing Director, Nigerian Inter-Bank Settlement System (NIBSS), Ade Shonubi, said mobile money operators are yet to realise the huge potential in the country. He said with a market worth billions of naira, what they have on ground is a far cry from their targets.

    Speaking at a stakeholders’ meeting on cash-less programme in Lagos, he said the NIBSS would continue to do its best to make all the operators in the cash-less value chain achieve their set objectives.

    Also, the Managing Director, Mobile Money Africa, Emmanuel Okogwale, said the aggregate value of mobile money companies was about N150,000 billion, stressing that the market can boast of $2 billion if the potential are well harnessed in the sub-sector.

    He advised the operators to work harder to solve the teething problems that still affect their activities, arguing that the market has the capacity to produce billion of dollars like its counterpart in Kenya.