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Tag: game changer

  • A veritable game changer

    A veritable game changer

    Katsina solar-powered tricycle initiative in promoting cheaper transport mode is the way to go.

    It appears that adversity is brewing innovation and creativity in the country. The step taken in Katsina State that has embarked on a pilot scheme of introducing electric tricycle is an indication that various parts of the country are beginning to see the need to device means of confronting its various socio-economic challenges.

    The innovation is particularly commendable because the tricycles are said to be produced by a local firm, IRS. Governor Umaru Radda has recognised that such a programme is best started as a pilot scheme, and tested by the end users in collaboration with the state government. Thus, the involvement of the tricycle riders in the state at this point. It is to be tested for durability and profitability.

    For almost two years now, since the free market principles have been introduced to the country, many of the poor people have been further impacted and have cried to the Federal Government to ease their pains. In doing so, many have overlooked the tiers of government closer to them whose revenues have greatly improved by virtue of the same policies.

    But, now, some of the state governments have risen to the occasion. In December 2023, President Bola Tinubu was invited by Governor Umara Zulum to inaugurate a set of electric taxis. In the same vein, the metro rail in Lagos has been improved to help in moving the masses around, while the neighbouring Ogun State is travelling the route of Compressed Natural Gas (CNG) Buses. Others have come up with other schemes in recognition of the part being played by transport in the raging inflation in the country. It has continued to rise month on month despite steps being taken by the fiscal and monetary authorities to tame it. Food inflation, in particular, is holding the people down. Cost of medical treatment, electricity and education, among others, too, has further impoverished the poor. And, in each of these sectors, transport is contributing to the soaring costs.

    Recently, in response to the taxation bills forwarded to the National Assembly by the President, all the 19 governors of the Northern states rejected the move and credited their position to the ravaging poverty in the region that they claimed would be exacerbated if the bills were passed as sent by the Federal Government.These are not ordinary times. It is a time that calls for ingenuity in leadership. Fortunately, there is nothing needed to ride the storm that is not available in the country. Human resources abound among Nigerians at home and abroad. We see the moves by states in this direction as an indication that if we pool together resources, Nigeria will soon turn the corner.

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    We commend the Katsina State government for recognising that the tricycles should be run for a while to study the challenges and device means of combating them. One of such challenges would have been if it were to depend on electricity. The producers recognised this and made the battery to be solar charged since the sun is available in that part of the country almost all-year round The benefits are not only in transporting people, even though it is said to have the capacity of hauling about 10 persons at a time, but its usefulness in transporting goods, especially in the rural areas. This could be a game changer for all.

    Besides the cost advantage, this is a time when conservationists globally are calling for checking climate change. There is a tendency in our clime to contend that it is a problem of the West; however, it is obvious that the heat from the ozone layer has badly affected our weather, too. The practical effect is obvious from the Chad Lake that has shrunk in recent years, affecting the livelihood of the area.

     It has also been linked to the growing insecurity in the area, and the movement downwards by pastoralists from the Sahel region.

     We look forward to governors of states of the North East and North West, in particular, to embrace such innovations in the interest of their people and the country. The Federal Government alone cannot bear the burden of national development.

    But, this is not limited to those states alone. Even in the South people are crying about the impact of hunger in the land. Some parents are no longer able to send their children to school. Tertiary education has become so expensive that it is beyond the income of the average family, and despite the education loan introduced by the government, many have not been able to access it and thus unable to move on. Initiatives like this would help in conserving disposable income, and possibly promote savings at the family level.

    With more of such initiatives, the future is bright for Nigeria and the future generations.

  • Executive Order 007 as game changer

    SIR: Since the inception of the present administration, it has issued a raft of executive orders with which it has tried to tackle some burning issues in the country. Executive Order 007 on infrastructural development promises to be a game-changerin the efforts to fast-track development in the sector. Nationwide infrastructural deficit has been the bane of our development for past decades. Our national infrastructure has been in a state of decay for too long a time stifling the growth of other sectors of the economy. Infrastructure is the catalyst for the transformation of any nation to a modern economy able to compete globally. No country has succeeded in creating decent living standard for her citizenry without the basic infrastructure of power, railways, roads, irrigation, dams, etc.They are the imperatives for economic development and the driving force of key performance indicators for economic projections and growth trajectory.

    It is therefore commendable that the Buhari administration has virtually declared a state of emergency in the sector and is according high priority to provision of basic infrastructure by adopting creative measures in solving the problem. To build infrastructure requires huge amount of funds. Experts in the sector put the annual capital outlay to close the infrastructural gap at a whopping US$15-20.

    Executive Order 007 is aimed at providing alternative source of fund for the development of infrastructure outside the normal annual budgetary provisions. The executive order grants tax credit to corporate investors or organizations and companies in return for them to use their private fund to build roads that are valuable to their business operations. This is based on the demand for road projects by corporate investors who are willing to deploy their own working capital and financial resources to fund road projects located in major economic corridors of the country where they have significant business operations and interest.

    I call it a game changer because it is a win-win situation for all the parties involved in the scheme. By granting the investors tax credit they are able to mobilize enough fund to execute road projects that will add value to their business which in turn will translate into increased profit for the corporate investors. The government on the other hand, is saved the money and other resources that would have been expended on the same projects which it can now deploy to other sectors of need.The general public is the ultimate beneficiary as the provision of roads improves the standard of living for everyone.

    In addition to tax credit to the private sector investors, the Executive Order 007 also provides mechanism for groups of investors to pool funds together to invest in road projects directly or jointly through special purpose vehicles or in collaboration with institutional investors such as Pension Fund Administrators, Collective Investment Schemes, Insurance Companies and Investment Banks.This is a new investment frontier for the private sector operators where they have the opportunity for investment in road projects and also have access to credit facility with which to fund the projects. The ball is now in their court and it remains to be seen if they will take up the gauntlet. There has to be a well-established operational framework under which such a mandate can be executed. MDAs that are involved in the execution of the order must be made to retool their processes and align same to the objective of the mandate. Participating MDAs are expected to interface with each other in collaborative effort to achieve the necessary synergy for the seamless operations of the general administration of the executive order. Information Technology is key in the effort to execute the mandate of the order where manual and analogue methods to data handling are discountenanced in favour of digital data processing to ensure data accuracy, acquisition and analysis.

     

    • EjimoforBoniAgbachi,

    Abuja.

  • Emmanuel: Re-branding powers of a game changer

    A commentator, Ntia Nsukuma, examines the achievements of Akwa Ibom State Governor Udom Emmanuel and why he deserves a second term.

    Even with a hugely promising governance trajectory that seems slightly threatened by an opposition led by a misguided former political mentor, Governor Udom Emmanuel is going on with his re-election campaign holding his head very high.

    Drawing from his rich professional background as a banker, administrator and corporate finance management expert, and leaning on a vision to make Akwa Ibom a clean, secure, more prosperous state with a robust economy built on industrialization, service, equity and justice, this Onna-born dynamite left few in doubt that he is indeed the man the State needed.

    An average commentator or analyst in the field of politics knows that elections are the marketplaces where political choices and ideas are sold. Here, the currency is the ballot papers.  In the next three weeks, the good people of Akwa Ibom will go to the political market to pick the man who would be the Governor for the next four years. The stakes are undeniably high. Either via rational or emotional appeals, millions of  Akwa Ibomites would take the decisions on the candidates they perceive is most suitable to lead the State.

    To most politicians and their supporters, the most important thing at election time, is that perception in the mind of his market, the voters. No serious politician can ignore or underestimate the power of perception. The truth about a product, service, idea, party or company will matter very little in the long-run if the perception of the brand is bad. The same is true in reverse, too.

    Antonio Damasio, a professor of neuroscience at the University of Southern California reveals that emotions, gotten largely from experiences and perceptions, are the necessary ingredients to most decisions taken by normal humans. His words; “When we are confronted with a decision, emotions from perceptions created by information and previous related experiences affix values to the options we are considering. These emotions create preferences which lead to our decisions”.

    With intense pressure on government and the electoral body to ensure free and fair elections, especially in Akwa Ibom state, and increased global focus on the Nigerian elections it would not be really easy for the true opinion of voters cannot be toyed with. This explains why serious political contestants must place the issues branding, positioning and strategic communications must be at the front burner.

    In perception and positioning, it is vital that a brand reflects its mission, market and positioning strategy. For instance, if a brand chooses to position itself as the foremost provider of expertise in an industry, it would develop tangible and intangible ways of expressing that position. This could be through the mix of products, logos, the way staff dress, and even their comportment. All these combine to position a brand in the minds and consciousness of its target. A strong brand must clearly differentiate itself from competition.

    Udom Emmanuel most have clearly identified the relevance of branding when he launched a campaign dubbed Dakkada quite early in his government.. The campaign which spread like wildfire was premised on a new spirit revolving around spiritual, moral, social, cultural and political ethos for Akwa ibom citizens.

    Dakkada which means Arise, was a clarion call to the citizens of the state on the need to rise above pettiness and move into greatness founded on good ethos.

    Emmanuel earlier set the tone of what to come when during his inaugural address he said “let us sow the seeds of brotherhood, love and unity, which will energize us to maintain our current momentum and leadership position. Let us remember that with the spirit of brotherhood, love and unity, no foe can defeat us, and no rival can overtake us”.

    The current image of a peaceful, progressive, secure and cult-free state has been remarkably linked to the success of the Dakkada Initiative. For the governor, two words are key. “The first is a solicitation to action, Arise! Then comes a positive prompting to shine, for your light has come. It is the right season, and under the watch of the right man for every Akwa Ibom person to arise, do something, excel, advance, improve, glow, take charge and reach the zenith of his or her chosen endeavour.

    This campaign has enabled the government of Akwa Ibom state in the last 3 and.half years to clearly communicate her mission, increase the people’s awareness, and create a favourable visibility and impression that has united Akwa Ibomites behind one cause, promoting uncommon loyalty and commitment amongst even his critics.

    The power of perception cannot be underestimated; the truth about a product, service, or company can matter very little in the long-run if the perception of the brand is  poor.

    To complement the emotional attachment to the Udom brand in Akwa Ibom, Governor Emmanuel had demonstrated leadership by example from day one of  his coming in   by getting off to a flying start. He created the building blocks that will help in reaching his specific development goals captured in his  five- agenda programme spelt out as, Wealth Creation; Economic and Political Inclusion; Poverty Alleviation; Infrastructural Consolidation and Expansion; and Job Creation. It is this five-agenda  programme  that anchors  the Akwa Ibom rebirth project of Governor Emmanuel..

    The results of the five- agenda programme have been phenomenal.. Shortly after his assumption of office as the Governor of Akwa Ibom State, Udom Emmanuel  set up a technical committee on Foreign Direct Investments to promote, midwife and enhance the flow of foreign investments to the State. With this Committee, dozens of industries have so far been established thereby moving yhe state fro. A.predominant civil service state to an industrial hub. Many others are ongoing while a greater number are in the pipeline and will materialize as he return in 2019. Starting from Africa’s largest syringe factory in Onna to Fertilizer blending plant in Abak, and from ongoing plywood manufacturing factory in Itu to the ongoing Ibom Deep Seaport and the Ibom Industrial City, One can clearly declare that say that the administration of Udom Emmanuel has recorded life touching achievements in creating jobs through establishment of industries spread across the State. Some of the industries birthed and completed by my administration in just three and half years include Syringe Manufacturing Factory (largest in Africa), Pencil Production Factory, Toothpick Production Factory, Electric Digital Metering Solutions Manufacturing Factory, Resuscitation of Peacock Paint Factory, Fertilizer Blending Factory, Plastic Manufacturing Factory , Palm Kernel Crushing Plant at Ibesikpo Asutan, Starch Manufacturing Plant, Palm Kernel Crushing Plant inUkanafun ,Palm Oil Processing plant and Flour Mill Factory among many others.

    On the agricultural front a lot has been achieved by the Udom administration. Top on the list is the 11,000 hectares of coconut plantation and refinery. Others include 2,100 hectares of cassava plantation in 15 LGAs (FADAMA) , Cultivation of over 1,200 hectares of rice, 48,000 rice farmers registered for CBN anchor borrowers scheme, 450 youths trained on cocoa maintenance, 500,000 improved cocoa seedlings raised and distributed to farmers at highly subsidized rate across the 28 cocoa producing local government areas. We also have the Akwa Prime Hatchery  producing 10,000 birds weekly and processed poultry products, Construction of  Cassava Micro-Processing Mills across the State, Construction of Tractor Hiring Enterprise (AEHE) Centre. Another commendable agricultural project is the establishment of large hybrid rubber nursery at Ebighi Anwa, Okobo L.G.A in partnership with Rubber Research Institute of Nigeria, for distribution to rubber farmers at highly subsidized rates and the establishment of demonstration plots on various agricultural technologies for transfer of improved technologies to farmers through Akwa Ibom Agricultural Development Programme (AKADEP) The Partnership with World Bamboo Organization for Bamboo development in the State  and the procurement and distribution of 30,000 Hybrid Plantain Suckers to 700 farmers are other commendable efforts in the area of agriculture.

    On the environmental front, exceptional steps have been taken to redefine the total outlook of Akwa Ibom and the brand image of Uyo capital city. Outstanding projects in this line are the New Governor’s Lodge, Lagos, The International Worship Centre, the 21-storey building office space for high target investors and multi-national companies, the Construction of Phase 3 of the State Secretariat to accommodate a number of MDAs that are still located in rented apartments.

    A product that does not have a clear cut strategy of the end users of such product has already failed before hitting the market. Happily all these activities and projects have combined to position Udom Emmanuel as the premium brand in the minds and consciousness of its target market –The Akwa Ibom people. His is presently a strong brand that has clearly differentiated itself from competition and has defined itself in the marketplace   that will win convincingly in the next gubernatorial election in Akwa Ibom state .

    Ntia Usukuma a Journalist writes from Lagos.

     

  • I&E Forex Window: Still the game changer in forex market

    With $53.9 billion turnover in 15 months, the Investors’ and Exporters’ (I&E) Forex Window launched by the Central Bank of Nigeria (CBN) in April, last year, has surpassed stakeholders’ expectation. The window is not only a boost to forex liquidity, but to the recovery in the manufacturing sector. The June Manufacturing Purchasing Managers’ Index (PMI) report showed an upbeat in productive activities as manufacturers get more access to foreign exchange, writes COLLINS NWEZE.

    Not many investors – local and international – gave it any chance to succeed when it was introduced. But, 15 months after, the Investors’ and Exporters’ (I&E) Forex window was launched by the Central Bank of Nigeria (CBN), has attracted $53.9 billion to the economy.

    A report by FSDH Research, said that prior to the I&E Forex window introduction in April last year, the market and exchange rates were in turmoil. However, in a dramatic turn of events, the acute shortage of forex, which businesses and individuals grappled with, witnessed an unprecedented improvement, with banks and Bureaux de Change (BDCs) now desperately looking for forex buyers.

    The FSDH Research Monthly Economic and Financial Market Outlook, said  the  positive  domestic  and  external  environment  will  further lead  to  external  reserves accretion  in  the  short-term, a development the report predicted will further stabilise  the foreign exchange rate.

    It said the 30-day moving average external reserves increased by 0.36 per cent up from $47.49 billion at end-April to $47.66 billion at May 28. The month-on-month growth rate recorded in the external reserves was the lowest level since July 2017.  The pressure on demand from foreign investors  was  mainly  responsible for the low growth in the external reserves.

    “The total turnover at the Investors’ and Exporters’ FX Window (I&E Window) between April 2017 and May 2018 stood at $50.73 billion. The highest amount was recorded in January 2018. Our analysis between August 2017 and May 2018 shows that Nigeria recorded the lowest foreign exchange inflows through the I&E Window in May 2018,” the report said.

    According to the report, the  value  of  the  naira depreciated  further  at  the  inter-bank  and  parallel  markets  in May, compared with April. The demand pressure at the I&E Window occasioned by foreign  investors’  repatriation  of  their  matured  fixed  income  investments  was  largely responsible for the depreciation of the naira.

    So inclement was the business environment before the I&E Forex Window that investors were relocating to more investment-friendly environment. The development was triggered by the crash in crude oil prices that worsened the woes of the local currency.

    Besides, the local equities market and the foreign exchange (forex) market were in shambles.  The All Share Index (ALSI) was continuously shrinking and the naira weakened against other currencies, especially the dollar.

    The I&E window has become the attraction, making many of the business concerns to take another look at their exit from the country.

    The introduction of the window was followed by continuous interventions by the CBN which enabled banks and BDC operators to meet forex demand at the retail end of the market. Thus, the window has become a life-saving pill for the domestic economy as it has attracted over $20 billion into the market, enhanced transparency and made forex available to the end-users.

    The operations of companies, especially manufacturing, has been on the upward swing with an improvement in inflation figures as well as equities market performance.

    According to the CBN Director in charge of Financial Markets, Alvan Ikoku, the “Investors’ & Exporters’ FX Window” is boosting liquidity in the forex market and ensuring timely execution and settlement for eligible transactions by all parties.

    Before the stability in the forex market and naira, the economy witnessed a depressed Gross Domestic Product (GDP) growth, which culminated in a recession in 2016.

    “There was also rising inflation, which peaked at almost 19 per cent in January 2017 and a persistently rising unemployment rate to 14.23 per cent in 2016 fourth quarter from 6.41 per cent as at 2014 fourth quarter. There was also a significant depreciation of the exchange rate, reaching N525 to $1 in February 2017 and witnessed a fast depletion of the reserves which was drained down from about $23.6 billion in October 2016 from as high as $40 billion in January 2014.

    “The I&E Forex window, seen as a ‘willing buyer, willing-seller window’, allows foreign investors to bring in dollars into the economy at any price of their choice, provided they could find buyers at such rate. The figure at the window has also impacted positively on the Purchasing Managers’ Index (PMI).”

    A Lagos-based economist and Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, described the introduction of the I&E forex window as the best policy implemented by the CBN in 2017.

    Rewane noted that the naira traded flat at the forex market at N362/$ and that the CBN forex intervention in June, surpassing May by 53.8 per cent to $2.2 billion while external reserves pushed lower in June to $47.63 billion.

    He said: “Prior to this, investors were of the view that the naira was overvalued and not at a market-determined level. The I&E FX window, higher oil prices and production, and the CBN’s consistent intervention in the forex market are the main drivers of the stability and the convergence of exchange rates in Nigeria today.”

    The Global Markets Group Head at Access Bank Plc, Dapo Olagunju, said the window allows investors to sell dollars at any rate they choose and is expected to help bring investors’ confidence into the market.

    He said: “Investors/Exporters FX Window helps participants execute deals as based on their own market agreement. Today, both the dollar demand and supply sides are beginning to talk to each other and there is likely to be rate convergence soon.”

    A report by Exotic Capital, an investment and research firm, titled: ‘Fragile Recovery, Positive Outlook’, said that Nigeria’s forex regime, although still far from ideal, has begun to stabilise.

    It said: “A multiple currency regime evolved after the oil price fall in 2014 and the June 2016 devaluation of the naira, which led to a widening divergence between the official and parallel markets (the parallel market premium reached 100 per cent in January 2017.

    “The current regime has shown a vast improvement this year with the introduction of the I&E Forex window last April.”

    It said the parallel rate for the naira, in the range of N360 to N365, is nearly identical to the I&E Forex window rate, used for international investors as well as importers and exporters, and has seen close to $20 billion in cumulative transactions since its introduction.

    Commenting on the issue at the Access Bank forex seminar, Rewane stated that the creation of the this window was a good move on the part of the CBN as it will lead closer to the emergence of a Real Effective Exchange Rate (REER) for the country.

    His words: “Any measure that increases the supply of forex and the number of suppliers will help to reduce the dominance of the CBN as the major supplier of forex in the market and move us closer to the emergence of a REER. This will attract more investors and lead us closer to a perfect market.”

    Barely a month after trading at the window commenced, international credit rating agency, Fitch Ratings, released a report, stating that the establishment of the I&E Forex window had led to an improvement in banks’ forex liquidity situation.

    The naira has been stable at the official and parallel markets, with the foreign exchange (forex) reserves standing at $47.6 billion, a report by Exotic Capital, an investment and research firm, has said.

    The report said although the level of reserves was still below the record high of $64 billion realised in August 2008, it has nearly doubled the $24 billion recorded in October 2016, increasing by more than $22 billion in 17 months.

    The economy benefited from increased forex supply with over $20 billion inflow to the I&E window since inception.

    “We have written extensively on Nigeria’s multiple exchange rate system and will abstain from further discussion at present, suffice to say that a fairly valued naira at 360 to the dollar combined with high domestic rates has led to a tremendous increase in the level of gross foreign reserves held at the CBN,” the report said.

    A similar report by FBN Capital, entitled: “Towards the $50 billion threshold, and counting”, said the rapid accumulation of $15.96 billion over 12 months was due to two sizeable Eurobond launches, a small diaspora bond issue, the recovery in oil export revenues (through the Nigeria National Petroleum Corporation’s share of production and, more recently, the steady bid by the CBN at the I&E Forex window.

    The FBN Capital report said: “We should stress that the data are gross and mask the swap transactions the CBN has entered into with local banks. The steady bid by the CBN has been seen variously as a response to the softening of demand for forex by importers and other economic actors, and as a move to contain naira appreciation.

    “The CBN will be pleased with the healthy signals from I&E Forex window where the weekly average has now settled above $1 billion.”

    Speaking on the issue, CBN’s Acting Director, Corporate Communications, Isaac Okorafor, reiterated the bank’s commitment to ensure adequate forex supply to genuine customers to achieve the goal of forex rates convergence.

    Managing Director, Afrinvest West Africa Plc, Ike Chioke, said the window has won the confidence of foreign investors. He said the window attracted foreign investors’ appetite for Nigerian assets leading to impressive appreciation in the equities market and stabilising the naira.

    Before the introduction of the window, foreign investors’ appetite for local assets waned significantly on the back of currency crisis which in turn fundamentally weakened macroeconomic performance, dragged corporate earnings and also impacted on equities market viability.

    According to the CBN spokesman, forex supply to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira. The apex bank is a market participant at the window to promote liquidity and professional market conduct.

    He said that the apex bank assured that the exchange rates of the transactions would be as agreed between authorised dealers and their counterparties.

    Besides, he said the regulator reserved the right to intervene as a buyer or seller, as it deems fit, in the window, even as information on transactions between authorized dealers is reported to the CBN on a daily basis. Manufacturers and other foreign exchange (forex) end-users also seem to be having a great time over the coming of the window.

    The improved access forex by local manufacturers is positively impacting on the economy as the manufacturing sector, which was in comatose for nearly two years, has been upbeat in the last four months.

    Manufacturing picks up

    The Manufacturing Purchasing Managers’ Index (PMI) of June stood at 57.0 index points, indicating expansion in the manufacturing sector for the 15th consecutive month, a CBN survey shows.

    The Manufacturing and Non-Manufacturing PMI Report on businesses is based on survey responses, indicating the changes in the level of business activities in the current month compared with the previous month.

    A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding, 50 points indicates no change and below 50 points indicates that it is generally contracting.

    The CBN report showed that the index grew faster in June when compared to the index in the  previous  month.

    It said:  “Of  the 14 subsectors surveyed,  10 reported growth in the review month in the following order: paper  products; furniture  &  related products; printing  &  related  support activities; food,  beverage  &  tobacco products; plastics & rubber products; electrical equipment; textile, apparel, leather & footwear; chemical & pharmaceutical products; petroleum & coal products and nonmetallic   mineral   products.

    It added: “The transportation equipment; fabricated metal products; primary metal; and cement subsectors declined in the review month.”

    The CBN report explained that at 59.2 points, the production   level index for the manufacturing sector grew for the 16th consecutive month in June. The index indicated a faster growth in   the   current   month, when compared to its level in the preceding month.

    “Ten of   the 14 manufacturing subsectors recorded increase in production level, one remained unchanged, while the    remaining three recorded declines in the production level in the month under review. At 56.2 points, the new orders index grew    for the 15th consecutive month, indicating increase in new orders in June,” it added.

    Continuing, it said eight sub-sectors reported growth, two remained unchanged while four were contracted in the review  month.

    “The manufacturing supplier delivery time index stood at 56.5 points in June, indicating slower supplier delivery time    for the thirteenth consecutive month. Eight subsectors recorded improved suppliers’ delivery time, while six remained unchanged,” it said.

    Also, the manufacturing sector inventories index grew for the 15 consecutive month in June 2018.   At 57.7 points, the index grew at a slower rate when compared to its level in the previous   month. Eleven of the 14 subsectors recorded growth, two remained unchanged while one recorded decline in raw material inventories.

    “The composite PMI for the non-manufacturing sector stood    at 57.5 points in June 2018, indicating expansion in the non-manufacturing PMI for the fourteenth consecutive month. The index grew at a faster rate when compared to that in May. Fourteen of the 17 subsectors recorded growth in the following order: repair, maintenance/washing of motor vehicles; agriculture; information & communication; professional, scientific, & technical services; finance and insurance; utilities; water  supply, sewage & waste  management; health  care  &  social  assistance; real  estate  rental  & leasing; electricity,  gas,  steam  &  air  conditioning  supply; wholesale/retail  trade; construction; management of companies; and transportation and warehousing,” it said.

    The arts, entertainment & recreation subsector remained unchanged, while   the accommodation & food   services; and educational services subsectors recorded contraction during  the period under review.

     

  • Economic turnaround: Can ERGP be game changer?

    An Open Day, being organised by the Ministry of Budget & National Planning will tomorrow drop the curtain on the first phase of the Economic Recovery and Growth Plan (ERGP) Focus Labs. The ERGP is designed to restore the economy after the exit from a painful recession. But, like several other policy documents before it, the implementation of the ERGP blueprint will decide its fate, writes COLLINS NWEZE.

    MORE than one year after the Federal Government unfolded its Economic Recovery and Growth Plan (ERGP), the Ministry of Budget & National Planning will tomorrow mark the end of the first phase of the ERGP Focus Labs with an Open Day.

    The ERGP was unfolded as economic blueprint in January last year to get the country out of recession and attain stability and growth.

    It itemised the potentials in the economy and how they can be harnessed for economic growth and development.

    Tomorrow’s open day, billed for the International Conference Centre (ICC) in Abuja, will be flagged off by the Vice President, Prof. Yemi Osinbajo. It will be attended by the lead sector ministers involved in the first phase of the labs.

    The Focus Labs are designed as workshop-style closed-door investment fora between private sector and senior government officials. The labs serve as forum for detailed discussions and interactions to address some of the bottlenecks and inhibitors of additional business investments in the economy.

    The Open Day is expected to present the outcomes of these initial Labs and elicit feedback from the public. Besides presenting lab outcomes for their sectors, the lead ministers are to discuss the way out of the  identified bottlenecks and to pave the way for  investments that can create jobs.

    The Labs produced 67,200 man-hours of effort within a six-week period, involving 180 organisations, including the relevant ministries, government agencies, authorities and private sector companies.

    Commenting during the last week of the Labs, Budget & National Planning Minister Udoma Udo Udoma said: “Over the last few weeks, participants in the Labs have had an opportunity to engage the government directly on the complex inter-agency issues that hinder investment.

    “The frank and open discussions between investors and nine cabinet ministers and their teams, as well as several agencies and departments, are a critical first step to building trust and credibility between the public and private sectors and harnessing important partnerships that will unlock key investments to diversify the economy and create wealth and employment.”

     

    The ERGP recognised that Nigeria has the potential to become a major player in the global economy by virtue of its human and natural resource endowments. However, this potential, it said, has remained relatively untapped over the years.

    Analysts said the ERGP content shows that government is approaching the nation’s economic challenges with the same zeal with and commitment it had demonstrated in the fight against corruption and economic crimes.

    They believe the ERGP had brought together all the sectoral plans for agriculture and food security, energy and transport infrastructure, industrialisation and among others means to revive the economy.

    After a shift from agriculture to crude oil and gas in the late 1960s, Nigeria’s growth has continued to be driven by consumption and high oil prices.

    “Previous economic policies left the country ill-prepared for the recent collapse of crude oil prices and production. The structure of the economy remains highly import-dependent, consumption-driven and undiversified,” they argue.

    The ERGP, a Medium-Term Plan for 2017 – 2020, builds on the Strategic Implementation Plan (SIP) and has been developed for the purpose of restoring economic growth while leveraging the ingenuity and resilience of Nigerians people – the most priceless assets.

    It has an understanding that the government’s role in the 21st Century must evolve from that of being an omnibus provider of citizens’ needs into a force for eliminating the bottlenecks that impede innovation and market-based solutions.

    The plan recognises the need to leverage Science, Technology and Innovation (STI) and build a knowledge-based economy. It is consistent with the aspirations of the Sustainable Development Goals (SDGs), given that the initiatives address its three dimensions of economic, social and environmental sustainability issues.

    However, stakeholders believe that cost reduction strategies for achieving greater macroeconomic strategy and realising the goals of ERGP.

    Financial analysts believe that every Nigerian will benefit from efficiency in management of available resources, adding that efficiency management of resources will achieve the ERGP goals, and save more funds for implementation of more projects.

    They said: “Government should be seen as business of service and not means of acquiring wealth. The ERGP is key in helping government realize its objectives.”

    Speaking on the sidelines of the just concluded 2018 Spring Meetings of the International Monetary Fund (IMF)/World Bank in Washington D.C., Udoma said the ERGP has attracted positive responses from the public which shows there are many opportunities for investment in Nigeria beyond the oil sector

    The minister told reporters at the meeting: “At the moment, the focused labs are being conducted in agriculture, transportation, power and gas, manufacturing and processing. The response has been very good.

    “We are looking forward to organising an open day in which we will share the results with the Nigerian public, that should be in the next one or two weeks. So, that is going well and I am very encouraged by it.”

    He said the focus of the ERGP is to generate more revenue and revive key segments of the economy.

    Udoma said: “As you are aware, we have the tax amnesty to try and increase the tax revenues being generated. We are looking at some of our excise duties and so the focus is to generate more revenues. Our problem is not a debt problem, our problem is a revenue problem and so we are focused on generating much more revenues.”

    On economic growth, the senator said the country targets seven per cent growth by 2020, a figure he said would make him comfortable. “Our target is seven per cent growth by 2020; that will make me comfortable; above seven per cent will make me even much more comfortable.

    “And that is why we are working so hard. Even though we are working so hard, the rate of growth is still too slow. So, we will like it to pick up and that is why there is a need to work hard. They say the result for good result is more hard work and so we are poised to continue to focus on the various measures on the ERGP. We believe that we are already seeing some positive results and we believe that we will get it.

    “I think the key is revenues, we just have to make sure that we have a broad-based growth that we are growing in agriculture and other areas within our control. I think that is what we are trying to do, that is the best measures we can take.

    “In terms of inclusiveness of growth, as you know, this is a government that is committed to making sure that we carry everybody along. And that is why we have the social investment programme in which we have committed N500 billion every year in the budget, the school feeding programme, the Government Enterprise and Empowerment Programme (GEEP). So, we have a number of programmes to make sure nobody is left behind.”

    Udoma said that judging from the series of meetings he has been having with private investors, it was evident that investors are interested in Nigeria.

    He said: “Many of the investors I have met have shown interest in the investment opportunities we are creating through the initiatives and reforms in the ERGP and are desirous of coming to explore them.

    “They have seen that this is the right time to come to Nigeria. They have seen how committed the government is towards improving the business environment, in removing constraints to investments, in diversifying the economy, and in partnering with the private sector on infrastructure development.

    “I am very encouraged by the fact that the positives development in Nigeria are being recognised. The positive developments about economic recovery and growth plan, the things that we are doing to encourage investment, make Nigeria more investment friendly. I’m happy that all those are being recognised. And the fact that the economy is out of recession and is growing again is also being recognised and the fact that growth is not dependent solely on oil. That there is growth in agriculture and other areas, so it has been a positive meeting for me.”

    A Lagos-based economist, Michael Obi, said the government can be efficient in a productive process. He said that having a progressive economic plan provides opportunity for the government to be efficient in the management of resources.

    According to him, the economy must be diversified and real sector promoted for the real benefits of ERGP to be realised.

    His words: “For the economy to grow, the real sector has to be promoted. There is need to manage inflation, reduce cost of borrowing and have efficient exchange rate for the economy to thrive. Government has to implement budget efficiently, for it to realise set objectives.”

    The Efficiency Unit, domiciled at Federal Ministry of Finance, is expected to review all government overhead expenditure. Its aim is to reduce wastages, promote efficiency and ensure quantifiable savings for the country.

    The unit works across all Ministries, Departments and Agencies (MDAs) to identify and eliminate wasteful spending, duplication and other inefficiencies. It also identifies best practices in procurement and financial management and share such knowledge with the MDAs to ensure its adoption.

    “Findings of the Efficiency Unit will be formally communicated accordingly and will be enforced through establishment of expenditure guidelines, undertaking follow-up reviews and spot checks”, a Finance ministry report said.

    It went further: “Other measures that will ultimately checkmate wastage across all areas of Federal Government expenditure will also be adopted.”

    According to the statement, the development is based on the fact that presently, the nation’s recurrent expenditure completely dwarfs capital expenditure by a ratio of 84/16.

    “This includes non-wage related overhead expenditure such as travel costs, entertainment, events, printing, IT consumables, stationery,” it said.

    The ERGP also indicated that oil accounts for more than 95 per cent of exports and foreign exchange earnings while the manufacturing sector accounts for less than one percent of total exports.

    According to the report, “the high growth, recorded during the 2011-2015, which averaged 4.8 per cent per annum and mainly driven by higher oil prices, was largely non-inclusive.

    “Majority of Nigerians remain under the burden of poverty, inequality and unemployment. The General economic performance was also seriously undermined by deplorable infrastructure, corruption and mismanagement of public finances.

    “Decades of consumption and high oil price-driven growth led to an economy with a positive but jobless growth trajectory.”

    According to the report, after more than a decade of economic growth, the sharp and continuous decline in crude oil prices since mid-2014, along with a failure to diversify the sources of revenue and foreign exchange in the economy, led to a recession in the second quarter of 2016.

    It said: “The challenges in the oil sector, including sabotage of oil export terminals in the Niger Delta, negatively impacted government revenue and export earnings, as well as the fiscal capacity to prevent the economy from contracting.

    “The capacity of government spending was equally constrained by lack of fiscal buffers to absorb the shock, as well as leakages of public resources due to corruption and inefficient spending in the recent past.”

    It said the current administration recognises that the economy is likely to remain on a path of steady and steep decline if nothing is done to change the trajectory.

    The report said: “It is in this context that since inception in May 2015, the government has made several efforts aimed at tackling these challenges and changing the national economic trajectory in a fundamental way.

    “The earliest action was the prioritization of three policy goals: tackling corruption, improving security and re-building the economy. Consequently, the SIP for the 2016 Budget of Change was developed as a short-term intervention for this purpose. Visible successes and achievements have been recorded.

    “However, it is recognised that more needs to be done to propel the country towards sustainable accelerated development.”

    It said the ERGP differs from previous plans in several ways. First, focused implementation is at the core of the delivery strategy of the plan over the next four years.

    More than ever before, there is a strong political determination, commitment and will at the highest level.

    The report said: “Whilst all the MDAs will have their different roles in implementing the plan, a Delivery Unit is being established in the Presidency to drive the implementation of key ERGP priorities.

    “The Ministry of Budget & National Planning will coordinate plan-implementation and for this purpose will, amongst other things, build up its capability for robust monitoring and evaluation.”

    The plan outlines bold new initiatives such as ramping up oil production to 2.5 mbpd by 2020, privatising selected public enterprises/assets, and revamping local refineries to reduce petroleum product imports by 60 per cent this year.

    Other initiatives include: environmental restoration projects in the Niger Delta, which demonstrate the Federal Government’s determination to bring environment sustainability to the forefront of its policies.

    It said: “As part of this plan, oil revenues will be used to develop and diversify the economy, not just sustain consumption as was done in the past. The economy will run on multiple engines of growth, not just the single engine of oil.

    “The Plan focuses on growth, not just for its own sake, but for the benefits it will bring to the Nigerian people. This plan also places importance on emerging sectors such as the entertainment and creative industries.”

     

  • ‘Ecobank mobile app game changer’

    By using digital technology to combat many of the financial inclusion barriers customers face on the continent, Ecobank’s mobile app has become a game changer for African banking, Ecobank Group CEO Ade Ayeyemi has said.

    He listed other financial inclusion barriers that have been removed by the app to include dearth of rural branches, affordability of products, high transaction costs and minimum opening balance requirements.

    Ayeyemi said the upgraded version of the mobile app, which builds on the core functionality of the original version, has attracted three million new customers in just six months, taking the total number of users to four million.

    The Ecobank chief said the app won one million customers in its first year of launch, while the upgraded features have seen the rate of sign-ups triple in half of the time, adding that so far this year, app use has been growing at an average 700, 000 new customers per month.

    He explained that Ecobank’s strategic mission was built around using mobile banking to deliver innovative, efficient and cost-effective services to those who have typically sat outside of the formal economy, and therefore goes far beyond the reach of the traditional branch and Automated Teller Machine (ATM) networks.

    “Customers can use the app on their mobile to instantly open Ecobank Xpress Account, which doesn’t have any account fees, paperwork or minimum balance requirements, or to send and receive money across 33 African countries,” Ayeyemi explained.

    He, therefore, said the bank’s mobile app not only removes the barriers that have financially excluded so many Africans, but offers next generation functionality to help them send money, make withdrawals or pay for goods and services.

    According to the CEO, Ecobank remained committed to providing Africans with access to financial services. He added that it is doing so in a way that joins functionality with convenient, accessible and efficient banking channels, such as the rollout of Ecobank Xpress Point Agents.

    “We want to be the digital bank of choice for all Africans,” he said, noting that “Functionality is one thing – giving our customers unrivalled convenience is another.

    “The Ecobank Xpress Point Agents that can now be found in your local neighbourhood enable you to deposit money into your app-based Ecobank Xpress Account and begin to make digital payments on the app using Ecobankpay.”

    Ayeyemi added that with bank’s mobile app, which is available for download from the Google Play Store or Apple Store, customers can also withdraw funds in local currency that may have been sent to them from friends or relatives using the bank’s innovative instant transfer or Xpress Cash capabilities.

  • ‘Dangote Refinery ‘ll be sector’s game-changer’

    ‘Dangote Refinery ‘ll be sector’s game-changer’

    Ghana’s Deputy Minister for Energy (Petroleum),  Mohammed Adam, has said the 650,000 barrels per day (bpd), refinery being built by Dangote Refinery and Petrochemical Company, will be a game-changer for Nigeria’s oil industry.

    The refinery, estimated to cost over $14 billion, according to Adam, will attract global attention and market. He added that the initiative has raised hope for other African countries on the viability of investing in a huge refinery.

    Adam spoke at the just-concluded 2017 African Downstream Oil Trading and Logistics (OTL) Expo in Lagos. The Expo’s theme was: “Downstream-Renewed Opportunities”.

    He said the refinery would  open a sub-regional market with a West African price index for countries in the sub-region.

    He said when the refinery becomes operational, Nigeria’s import of products would stop or reduce drastically, and the cost of products imports from Europe and Asia by smaller consuming countries around Nigeria would be expected to increase.

    This is because Nigeria’s large petroleum imports, which are hugely subsidised and taken across the borders, would no longer be there for sub-regional neighbours.

    Adam said: “The development in Nigeria reinforces my conviction that there is strong basis for shared infrastructure in our sub-regions, as this could integrate our industries, lower cost of business and reduce the prices of petroleum products.

    “Transportation of fuels across the continent is largely by bulk road vehicles. It increases substantially, the cost of petroleum products for our people. It is possible working with the private transportation companies in our markets to build enduring Private-Public partnerships to build the railways and the pipelines that will cost-effectively deliver petroleum products across the regions while building substantial economic value for the states, the business and the people across this continent.”

    According to him, developing an African market no doubt imposes greater demand for skills, adding that there is the need to readjust the educational curriculum and open new centres of excellence to provide relevant skills to the youth and prepare them for a very demanding industry.

    Adam also said there was the need to harmonise policies and opportunities to allow the African downstream to deliver the infrastructure and services required by African economies.

    To him, the drive to move from “dirty fuels” to “cleaner fuels” has resulted in most countries opting to tighten the specifications for gasoline and gasoil. He noted that the transition to low-sulphur fuel is the most topical issue that must be discussed at all levels on the African downstream industry.

    Nigeria, Ghana, Kenya and other African countries had specified sulphur levels for diesel imported, Adam said, supporting the call for African countries to move to cleaner fuels as it presents an opportunity for investments in domestic refineries to meet national specifications, allowing the downstream to be supportive of the development goals of African economies.

    According to him, following the sustained lower oil price environment of the last three years, there has emerged what is called “petro-democracy” in which citizens’ demand for greater accountability from their governments and players in the petroleum industry have improved. The demand for domestic prices to follow a symmetrical trend with international prices led to downward adjustments in prices in some countries.

    According to Adam, one of the greatest challenges confronting the downstream petroleum industry was the inability to match the upstream industry in the area of safety and security. He noted that operating at the very end of the petroleum value chain, proximity to human populations, their health and safety, and consequently, their property, the requirements for improved safety standards placed on Nigerian and other African countries the duty to be more responsible.

  • ADAM MOUKTAR MOHAMMED Wants to be football’s game changer

    ADAM MOUKTAR MOHAMMED Wants to be football’s game changer

    THE American cliché is instructive: ‘Think of what you can do for your country and not what your country can do for you.’
    Miles away in Abuja on this sunlit day, Adam Mouktar Mohammed, Vice-Chairman of the FCT Football Association and owner of amateur club FC Hearts of Abuja, sat behind his desk preoccupied with just the thought of making a difference in Nigerian football so that the country could attain its full potentialities in the art the renowned Pele called ‘the beautiful game.’
    “After 10 very successful years as a player agent, I resigned early this year to face the management side of football in order to further be a game changer,” began Mohammed with a deep long breath in an interview with MORAKINYO ABODUNRIN.“I want to be the game changer of Nigerian football.”
    There is no doubt that Mohammed means business and overtime, he has shown that he is the type that matches his words with action. This time, the Masters degree holder in Finance from American Intercontinental University in London looks at the numerous challenges facing sports development in Nigeria and provides recipe for transforming this pastime into a big business and employer of labour for the country, adding the wind of change in the country and the ‘PMB’ effect would definitely rub off on the Nigerian sports industry.
    “Let me start by saying that civil servants are not trained to run sports,” he explained. “It’s (sport) a business and there is a scientific dimension as well as an artistic angle to it.
    “You must see how most countries that have built successful sporting traditions achieved it; Germany, Spain, Brazil, USA have built models that were carefully planned and implemented as an enterprise that are professionally run by top experts.
    “It’s constantly dynamic and evolving, so you must keep up; success does not come by chance but it comes with skilled knowledge, meticulous preparation and unrivalled desire.
    “When you look at all aspects of life, you will see the proper foundations that led to growth in the world’s leading countries and if we are to see a change in our fortunes, then we must go back to the drawing board and lay the foundations,” he emphasised with a clinched fist.
    Mohammed further explained that it was his desire to do things in a better way that he decided to put his money where his mouth is by funding FC Hearts which is becoming a conveyer of talents for the country’s youth teams.
    He said: “There is no better proof to show your love for the game and to consolidate yourself as an important stakeholder than putting your resources not only financial but time, which I consider even a more valuable resource because you can recoup your money, but not your time.
    “It gives me immense satisfaction to invest my time and resources in my country Nigeria because I believe in it and I truly want it to be at par with the world’s most developed countries; football goes beyond just the game as it has a multiplier effect on the whole economy.
    “Clearly, everybody has woken up to know that it’s big business and also has a huge impact on the people and when it’s your passion, you get the most satisfaction in the success of the project by adding value to people and they benefit a lot in terms of earnings, entertainment, success and reward,” he noted, as he speaks about his unbridled passion for sports and sundry issues. Excerpts…

     

    Developing passion for football

    I am Adam Mouktar Mohammed, born in Kano, grew up in Lagos, Kano, attended university in London. These major cities moulded my love and passion for football. My first foray (as players’ agent) started 10 years ago when I made up my mind that I could change the football scene then as it was exclusively dominated by foreign players’ representatives. I cannot over emphasise the important role that plays in the football chain. Thus I sat for the FIFA exam, passed it and was subsequently granted a licence to become a football players’ agent. Thankfully, I have had huge successes in terms of unearthing talents, harnessing them and eventually placing them in clubs in Europe. After 10 very successful years, I resigned as an agent early this year to face the management side of football in order to further be a game changer. And a few months ago, I was elected Vice-Chairman of the Federal Capital Territory (FCT) Football Association.

    Possibility for sport business

    Yes, sport goes beyond your imagination. Some countries are famous for their sporting achievements more than any other thing. Take Brazil for instance – as soon as you mention that country, the first thing that comes to mind is football, Pele. These countries have mastered the art and science of building institutions that run sports both as a business and as entertainment successfully. Another example – as of today, the English Premier League is No.1 in terms of followership and TV revenue in the world. This was only after certain clubs took the bull by the horns and decided to change football in England and run it as a business, as a private enterprise, and, as they say, the rest is history. Just look at the facts and figures, it’s phenomenal in terms of income to clubs and players and the economy as a whole – leisure and hospitality, tourism, player sale, TV rights, sponsorship, player salary. Yes, it could be done here. I believe Nigeria has all the ingredients for sports to be a huge contributor to our GDP. It’s waiting to happen in Nigeria, the market is ripe and demanding it. In my humble opinion, we must tell ourselves the hard truths; we must get focused, determined, patriotic persons with integrity to drive this process and build from down up and this must be privately driven, but with necessary support from the government at inception.

    Wants new role for government’s involvement

    Virtually 18 teams of the 20 Premier League clubs in Nigeria are state government-owned. This is a huge drain pipe and there is lack of professionalism in the running of the clubs because the perception is “government money is easy money”, “it’s other people’s money, hence it’s easy to spend”. These days you hardly see any government involvement in sports across the world apart from policy, legislation, special grants, tax incentives or infrastructure contributions and issuing guarantees for hosting international tournaments. Government has more pressing issues to deal with such as security, health, education and infrastructure. Resources are scarce and limited and so where these are allocated is key. Evidently, sports can generate huge revenues so it can fully sustain itself once it’s put on track and run efficiently. We just have not had the will to change the current situation. Once people who know and share the vision come on board, you will see instant changes.

    Addressing lack of mega sponsorship in Nigeria sport

    Sponsorship has a fundamental reason to it – you put your money in anticipation of return. Firstly, financial returns from sales and, secondly, image or brand perception. You want to send a clear message and you would want to partner with a positive product, but all the ingredients required from a marketing perspective, product, place and so on are absent. Hypothetically, take the Dangote Group, they must have a huge advertising budget, but certainly they would want to put their money in a place or associate with a product that would not give customers a bad perception because of say bad officiating, crisis, government interference, poor stadium, lack of TV coverage, hooliganism and so on.

    Facts and figures don’t lie and so no company would pass the chance to associate with top brands like Manchester United or Barcelona by virtue of their success, fan base, quality of facilities and instant brand recognition. They give a good return on investment. There was a time when football was the standard bearer for Nigeria. But these days, Hollywood and the music industry have long overtaken the country’s No 1 passion especially in international significance and as major employers of labour.

    Where did it all go wrong for Nigerian football in your own opinion?

    Our football and sports as a whole have been on a steady decline and virtually decimated, as they have not re-invested in themselves in terms of clear-cut short, medium and long-term blue prints, the laws, manpower and infrastructure. There has not been a deliberate plan, will and desire to take sports to the top level, hence new privately driven form of entertainment has taken the world by storm in the form of music and Nollywood. This has come not by chance but by a manifestation of hard work, talent and sheer will to succeed and be the best. Clearly, the world has stood up to recognise the force Nigeria is in terms of music and the film industry! I firmly believe it’s not too late for football and sports in general to play catch up and go on to surpass Nollywood as the No.1 form of entertainment in Nigeria. It’s a known fact Nigerians love sports, particularly football, but unfortunately they have not had a good return on their expectations.

    Dealing with dilemma of age-grade competitions

    I beg to differ on the measure of success in age-grade competitions because the whole essence is to create a platform for the future stars to gain experience in preparation for the big stage, which is the World Cup. So, physically clinching the cup is not the aim of most countries at the youth stage.

    And you must note that there is a big gulf in terms of infrastructure, environment, training programmes, family support, psychology, poverty levels as this affects decision making, physical attributes and formation, mental attributes and what have you. In a tournament, there are many factors including element of luck, but in the end, going forward the difference becomes clearer.

    It’s no surprise that this transpires as countries like Germany and Spain tend to produce more quality athletes than others due to their deliberate investment, infrastructure, scientific approach and policy. So, there is a huge difference in the support structures that eventually determine the longevity of a player’s career.

    Dearth of big transfer of Nigerian players

    The football world is global business and the economics dictate, constantly dynamic and increasingly demanding marketplace with a huge entertainment angle. It’s a clear case of demand and supply, where the consumer is king! Clubs want the finished article in terms of the players, they look at ability, mental and physical qualities and other market forces such as potential for a Brazilian player to attract more fans to follow and buy club merchandise. We lack world-class facilities and knowledge to train players from a very young age in order to learn the basics and reach the top. So, you find out that usually African players lag behind and take time to adapt and integrate in a different world whereby language, food, weather and knowledge of the football philosophy are huge challenges. The league in any country is usually the bedrock of that country’s football.

    Repositioning Nigerian football league

    Certainly, I agree with you 100% that is the case, but we in Africa concentrate always on the top premier tier of the league at the detriment of the lower amateur and academy structures which are the starting points that all players are spotted and moulded. Hence, we produce half-baked products that simply stagnate and eventually without a proper system a lot of them don’t ever make it to the top of the pyramid.

    Coming back to the Nigeria Premier League, we must transit gradually from public to private hands whereby investors will have ownership and control to run the teams in a more efficient, professional and goal-driven manner. As soon as they invest in infrastructure and competent manpower, you will see improvement in player recruitment and match attendances and in turn revenues will rise and the best talent will gravitate to the league. They will have the freedom to negotiate TV rights and sponsorship deals. We have started to see slight changes with the formation of the League Management Company (LMC), particularly in better officiating and increased sponsorship money, but we are still a long way from where we need to be as ownership of the league still lies with the government-owned teams. If Enyimba Football Club of Aba with their successes were a private enterprise, you would see them being a big continental brand with huge commercial potential. Fans want to see beautiful entertainment, the best players, great stadium experience and top-level infrastructure.

    My short and long term plans in football

    I have a dream for sports in Nigeria  firstly, I am over the moon to see Nigeria finally get a leader that is tackling corruption seriously, so the “PMB effect”, as I call it, will affect the sports industry positively. Corruption is really the enemy and it has virtually killed sports development in Nigeria. You see mediocre in charge and it can never work! We must demand better output and higher quality, clean up our league, set benchmarks, because the current structure is flawed. Being in sports circles for a long-time is not indicative of competence or ability to perform or deliver. There is a specific skill set required, and you must build that capacity. INtegrity and vision are key, persons who lack both qualities have occupied important decision-making positions and hence they can’t produce the desired results!

  • Garlands for the Game-Changer at 63

    Garlands for the Game-Changer at 63

    Great spirits have always encountered violent opposition from mediocre minds -Albert Einstein

    Words to describe his profound political persona come in different shades. But all are complimentary. These range from the “Asiwaju of Nigeria’s democracy” to “the Master Strategist” and the new one called “the Game Changer”.  These are but a few laurels that adorn the shoulder of the one dogged fighter who, today stands on a high moral ground to speak about Nigeria’s democratic dispensation -its norms, ethos, mores, codes, evolution, development and sustenance.

    Such apt descriptions also encapsulate that of a Nigerian political titan who means different things to various people. That depends on which side of the deepening political divide you stand-the conscienceless class of conservatives or that of the people-friendly progressives. But why, you may ask?

    The answer is found in his firm belief and the sacrifice to see to the enthronement of the dictates of a government, driven by the wishes of the majority. His type is rare. More like a meteor, he blazes the brilliant trail across the hazy political firmament, eliciting varied comments from political observers of diverse dispositions. It would therefore be foolhardy for any of his teeming admirers to expect even those who he has come to rescue from the stranglehold of the political oppressors to applaud his noble efforts. Such is the dilemma of the socio-political matrix within which political strategists operate; all because they see what many do not.

    Put simply, he is a visionary, armed with the 4-C concept of courage, character, candour and charisma, possessed all to the quantum level. But as usual, not a few would understand or even identify with his DNA and more so align with his consistent political ideology of people-friendly governance down to the grassroots.

    Born on March 29, 1952, his political career took off in 1992, when he was elected to the Nigerian Senate, representing the Lagos West Constituency. That was during the short-lived Nigeria’s Third Republic. After the results of the June 12, 1993 presidential elections were annulled, Tinubu became a founding member of the pro-democracy National Democratic Coalition (NADECO). The well-coordinated group effectively mobilised a groundswell of public support for the restoration of democracy and the validation of the 12 June election results.

    Let it be known that at that material time, he had all the opportunity to sell out as some fair weather friends did to betray our common cause. But Tinubu chose and wisely too, to stay on the people’s side while the struggle lasted. Had he been a political turn-coat, we would have no moral ground to identify with him, least of all, celebrate him on this auspicious occasion. It was the democrat in him that saw Tinubu calling for Resource Control, as a Senator against the vociferous voices of those who claim to love the country only when it suits their fancies. Today, that clamour re-echoes with greater verve and frenzy as the National Conference kicks off its deliberations. But would anyone remember who belled the cat? That is the million naira question.

    With the Sani Abacha regime baring its blood- thirsty fangs, he went into exile in 1994 but returned to the country in 1998 after the death of the military dictator. Subsequently, in the run-up to the 1999 elections, Bola Tinubu was a protégé of Alliance for Democracy (AD) leaders Abraham Adesanya and Ayo Adebanjo. As fate would have it, he won the AD primaries for the Lagos State gubernatorial elections in competition with Funso Williams and Wahab Dosunmu, a former Minister of Works and Housing. He stood for the position of Executive Governor of Lagos State on the AD ticket and was elected in April 1999.

    One reason why he can lay credence to being a true-born democrat is his salutary efforts to redefine the concept of party politics in the effervescent terrain called Nigeria. From the Alliance for Democracy (AD) through the Action Congress (AC) to Action Congress of Nigeria (ACN) and now, the game changer tagged All Progressives Congress (APC), his rare managerial acumen of men and materials all come to the fore.

    Another reason is his exemplary style of governance that made governance more participatory in Lagos State. For instance, he introduced measures to increase the Internally Generated Revenue. The measures included the Electronic Banking System/Revenue Collection Monitoring Project (EBS/RCM), which enabled the utilization of high level technology to create a robust data base of tax payers and successfully eliminated ghost workers.

    Another was the state’s Board of Internal Revenue (BIR); an outfit that used to be a cesspit of corruption. It was re-engineered to enhance its revenue collection capacity through greater autonomy, professionalism and motivation; the introduction of the electronic Tax Clearance Cards (eTCC),which is a fraud-free and convenient method of keeping tax payers records.

    There was also a deliberate policy to sensitize the public on the imperative of paying their taxes willingly, voluntarily and promptly, as a precondition for the delivery by government of quality infrastructure and social services. In addition was the new Land Use Charge Law promulgated in 2001. It  stipulated that once Land Use Charge Demand Notice is levied on a property, Ground Rent, Development Charges and the Neighbourhood Improvement Charge Law will cease to apply. This innovation led to the collection of the sum of over N3.5 billion as Land Use Charge between 2001 and March 2007 and the value of this revenue source keeps rising.

    His eight years administration therefore, saw to the revitalization of the machinery of state. All these made the desired impact  in “qualitative service delivery in diverse sectors, including education, health, justice, roads construction and rehabilitation, traffic management and public transportation, agriculture, environmental renewal, rural development, housing, job creation, women empowerment, local government administration and poverty alleviation.

    To start with, he, Tinubu, as the governor who took the mantle of Lagos State amidst monumental filth that clogged the drainages and the highways, swept it all with the introduction of LASTMA. Other creative organs of government such as LASTMA, KAI, LAMATA that his visionary administration established brought sanity and safety in the critical areas of public health, transportation, education and massive infrastructural development.

    To all those who, out of sheer envy label APC as a political party devoid of philosophy, a closer look at the ground-breaking achievements of the states under its purview would reveal one. And that is, the enduring principle of making governance to be driven by the wishes, aspirations, dreams and desires of the average Nigerian. That is, rather than that of a fraudulent family of shameless kleptomaniacs, whose stock in trade is not only to steal the nation blind but to make culprits walk our streets with a sneering swagger under the leaking umbrella of the crass culture of insidious impunity.

    Worthy of note also, is that all his achievements took place even in the face of daunting odds. Not the least being the withholding of allocations to local government councils that stretched from months to years, when Chief Olusegun Obasanjo held sway at the federal level. How did Lagos State weather the storm of months without federal allocation when the Internally Generated Revenue was yet to assume a sustaining level? How did his AD-led political party, more like a David pitched against the behemoth of a Goliath survive the political onslaught of the PDP rigging machinery that bulldozed its way through the South-West geo-political zone? He became ‘the last man standing.’ How did he do it? How did he wrestle back the same zone from the stranglehold of the same PDP in 2007 and went on to strengthen his hold on the vastly resourceful and politically sophisticated zone by 2011? And to cap all the trilogy of the bruising battles won, how did the ACN merge with other progressive parties in the mold of CPC and ANPP, both from the Northern fold, now giving the PDP sleepless nights?

    Perhaps, it would be more appropriate to underscore his sweeping political machinery to the metaphor of the broom, which incidentally has been adopted for much of the metamorphosis of the aforementioned political parties of the progressives

    In other climes, well-heeled writers, historians and political scientists would be all over him to decipher that unique attribute that has made him a strong brand of a survivor. That magic wand of his, to easily identify the best man for the job should also be a source of PHD thesis. Good enough, his predecessor, Gov. Babatunde Raji Fashola, has sustained these laudable policies such that they have been copied by governors from virtually all the six geo-political zones of the country. And without doubt, Mr. Akinwunmi Ambode, the APC flag bearer in Lagos State, would up the ante on these people-friendly policies and worthy legacies.

    History beckons on you to take the centre stage and rewrite our history of crass criminality and neglect by the opportunists in power; to seek the common good for the good of us all. Happy birthday to the most consistent democrat of our time.

  • Experiential marketing as game changer

    It has become the game changer that is prompting agency owners to consider setting up an experiential marketing agency within their group to stay in business.

    While clients are slicing marketing budgets in relation to other promotional mix, experiential marketing agencies are feeding fat, though delivering on return-on-investments.

    As a result, these have heat up debate on the role of experiential marketing to sustain brand recall and influence purchasing decision.

    According to experts, “Experiential marketing is a form of advertising that focuses primarily on helping consumers experience a brand. While traditional advertising (radio, print, television) verbally and visually communicates the brand and product benefits, experiential marketing tries to immerse the consumers within the product by engaging as many other human senses as possible. In this way, experiential marketing can encompass other marketing strategies from individual sampling to large-scale guerrilla marketing.”

    With the power of the emerging promotional mix to win consumers via exploring entertainment among other activities that engages consumers higher than traditional promotional mix, the marketing communication industry has massive use of the promotional mix to gain consumers attention.

    NBL’s ‘Gulder Club Ultimate’, an engaging party ship liner for industry giants, celebrities and other fun lovers on a novel ride across the country; Nescafe ‘Mug Flight,’ ‘Legend Real Deal’ and the ‘Peak One million endorsements’ are some of the recent experiential campaign which has helped the brands sustain their brand recall in the competitive market.

    Recently, Nigerian Brewery launched an experiential campaign to engage their brand with consumers via, BlackRevolution. The experiential campaign was meant to activate the new bottle for its stout brand, Legend Extra Stout but the use of BlackRevolution as the experiential campaign, which was designed by Oracle Experience, an experiential marketing agency, the BlackRevolution, explored Live Show with notable celebrities, such as Femi Anikulapo, Tuface Idibia, Comedian Gordons, to thrill the audience.

    The Experiential campaign also engaged consumers with a drama titled, First vs Real, which depicts the brand’s (Legend Extra Stout) readiness to wrest the reins of leadership out of the hands of the market leader.

    The agency used the short documentary to highlight the Legend brand to remind the target market, which was represented by selected audience at the Bar Beach, where the activation was done, to stay connected with the brand using all celebrities, the theatre and the campaign headline, BlackRevolution, as the experience.

    The Sales Director, Nigerian Breweries Plc., Hubert Eze, shed more light on the Legend Extra Stout staniol re-launch.

    He said: “We presented the BlackREALvolution as a movement, and it is indeed a movement for consumers that yearn for more in terms of satisfaction and quality.”

    The Chief Executive Officer, Oracle Experience Limited, Mr. Felix Eiremiokhae, said an ideal experiential campaign should make people talk about the brand and not the artistes.