The Nation Newspaper

Tag: global

  • ‘Drop in global airlines revenues affecting growth’

    The Director-General of the Nigeria Civil Aviation Authority (NCAA) , Captain Mukhtar Usman, has said revenue flow to airlines globally has dropped, owing largely to discontinued state funding , sustained deregulation / liberalisation as well as intense competition and privatisation.

    Usman said passenger and cargo traffic at many airports are declining due to dwindling purchasing power of passengers and shippers.

    He spoke in Abuja at the Airport Business Summit and Expo, where he delivered a paper titled: “The acts of promoting a sustainable air transport economy”

    According to him, the cost of providing standard air transport services has continued to rise with continuous innovations in the facilities and increasing demand for customer satisfaction.

    The NCAA boss noted that in Nigeria, for instance, aviation fuel constitutes about 50 per cent of the airlines’ direct operating costs.

    He said high cost of funds and the steady devaluation of the local currency in which the airlines’ income is mostly denominated has had huge impact on the business.

    Usman said in the last two and half decades many small and average airlines have either collapsed or gone bankrupt.

    His words: “One of the few areas in which significant performances has been recorded is the operation of low-cost airlines, which have benefitted from a shift to cheaper travel.

    Usman said the big challenge for Nigeria is creating a friendlier and more enabling environment for airlines.

    Proffering solutions, the NCAA boss said: “ The national political leadership should ensure that square pegs are put in square holes, giving the regulatory body the necessary autonomy by resisting unnecessary interference in the latter’s statutory operations.”

    He added that government’s interference should be limited to ensure an enabling political and economic environment to engender economic viability and sustainability of the aviation industry.

  • Lagos woos global investors for FDI

    Lagos State will continue to protect the interests of global investors through provision of amenable operating environment and protection of private enterprises.

    The state gave this assurance at the weekend during the formal presentation of its Office of Overseas Affairs and Investment, otherwise known as Lagos Global, to members of the business world, diplomatic community and top government functionaries.

    Governor Akinwunmi Ambode, who was represented by the Secretary to the State Government, Mr. Tunji Bello, reiterated the state’s commitment towards making Lagos an investment destination of choice by creating a favourable environment for local and Foreign Direct Investment (FDI).

    As the world continues to acknowledge Lagos as a regional financial hub, he said, the government has demonstrated the commitment to strengthen this position through deliberate policies aimed at improving the business climate in the state.

    He outlined that the state has been on investors’ radar by putting in place effective legal and regulatory frameworks such as the Land Reform Act, Double Taxation treaties, Limited Liability Reviews and the development of Free Trade Zones, adding that the ongoing judicial reform is aimed at strengthening the laws for the protection of enterprise.

    Ambode emphasised that public infrastructure development and investment in security as well as the competitive edge are the things its residents enjoyed. Also, according to the Governor, access to local, regional and international markets, readily available labour, bourgeoning middle class with high purchasing power and investor-friendly disposition among the citizenry, had combined to ensure that the state remained investors’ haven.

    He urged investors to take advantage of investment opportunities in the state as government had prioritised the achievement of the four pillars of the Lagos State Development Plan (2012-2015) through the attraction of investments in eight major sectors which are power, agriculture, transportation, health, tourism, housing, ict and manufacturing.

    “With the array of prospects in different sectors, we are confident that you will take advantage of these opportunities by taking the decision to make the next investment here”, Ambode said.

    In his remarks, Special Adviser on Overseas Affairs and Investment, Prof. Ademola Abass said the Lagos Global was created to serve as a one-stop shop for investors to enhance the ease of doing business in the state.

  • Tourism contributes $7.2t to global economy

    The tourism industry contributed over 7.2 trillion in Gross Domestic Product (GDP) to the global economy, a report by the World Travel and Tourism Council (WTTC) has stated.

    Its President David Scowsill in a statement said tourism added 7.2 million jobs to the global economy.

    Scowsill, in the report, titled: ‘The economic impact report,’ which is WTTC’s flagship yearly research, stated that the document provided economic data on the contribution of the tourism sector on a global level.

    The report said: “In spite of uncertainty in the global economy and specific challenges to tourism in 2015, the sector grew by 3.7 per cent, contributing a total of 9.8 per cent to the global GDP.’’

    Travel supported 284 million jobs last year, an increase of 7.2 million, one in 11 jobs on the planet.

    The WTTC chief said though terror attacks, disease outbreaks, currency fluctuations and geopolitical challenges have impacted the sector at a country or regional level, tourism at the global level continues to produce another robust performance.

    He said travel contribution to GDP  outpaced overall GDP country growth in 127 of the 184 countries covered by the research.

    He listed the countries where tourism most markedly outperformed the wider economy last year to include Iceland, Japan, Mexico, New Zealand, Qatar, Saudi Arabia, Thailand and Uganda.

    According to Scowsill, the sector’s growth was stimulated by a worldwide increase in middle-class income households, an ageing population, which tended to travel more, making travel more accessible and affordable.

    The report however, said all regions of the world showed growth in total tourism contribution to GDP in 2015, adding that South-East Asia was the fastest growing region with growth of 7.9 per cent followed by South Asia, which grew 7.4 per cent.

    “In 2016, tourism’s total contribution to GDP is forecast to grow by 3.5 per cent, and is again expected to outpace global economic growth for the sixth consecutive year. Security concerns, border policies, oil prices, the strength of the U.S. dollar relative to other currencies, and other macroeconomic developments will continue to influence travel trends in 2016 and beyond,” the report stated.

    It, however, projected that over the next decade, tourism is expected to continue to outpace the world economy, growing by four per cent on average yearly.

  • Embrace global standards, estate valuers told

    Embrace global standards, estate valuers told

    To boost their practice, estate valuers have been asked to embrace international best practice.

    The call came at the seminar by the Nigerian Institution of Estate Surveyors and Valuers  (NIESV), Lagos Branch.

    The event, tagged: “Head of Practice Forum 2016: International property measurement standard and its impact on the Nigeria property market”, held at IKeja.

    Among others, the body emphasised the importance of proper valuation in the real estate sector.

    Questions, such as: Would it be possible to place values on properties without measurement? Would such values be correct if the measured areas are not correct? Is it proper to have, for example, three different measured figures from the same property from three different surveyors? were addressed at the event.

    The guest lecturer, Messrs Jimmy Olayinka Omotosho, a realtor, said the importance of international property measurement standard (IPMS) could not be over emphasised, saying it is one of the instruments that practitioners should be familiar with and make use of for their effective performance.

    According to Omotosho, IPMS, apart from its being an effective tool for the eradication of quackery in the profession, ensures the accuracy of measurement and that it should not be left in the hands of the incompetent staff.

    “Because of its importance, head of firms should ensure that a competent hand is involved in engaging in valuation business and not to be left for an incompetent staff, though, they are employed and need to develop, any mistake in applying IPMS may lead to wrong valuation that may not favour either the service provider or the  owner of the property, he added.

    Omotosho listed the benefits of the IPMS as: provision of a mechanism for benchmarking property across international markets as well as in Nigeria; provision of a common transportable market  for  practitioners to use and the provision of  greater transparency to all property users wherever they are located within the country.

    Others are that IPMS provides consistency in the data, with valuation and financial reporting and will support property and facility managers to better compete and utilise space within the local market. In addition to enabling  international occupiers, investors and owners to benchmark their properties.

    “Therefore, NIEVS, as one of the coalition organs should engage in IPMS training and guidance for professional use and also write it (IPMS) in their professional statements, which will become mandatory over the time and should be appropriately regulated,” Omotosho advised.

    The Estate Surveyors &Valuers Registration Board of Nigeria (ESVARBON) Chairman, Elder William Odudu, who extolled practitioners’ quest to be at par with their foreign counterparts, noted their achievements over the years.

    Odudu, however, informed the gathering that a book had been written by one of the members that would put more light into international property measurement standard.

    “The Registration Board will look at the paper presented here by our guest speaker and make the necessary comments and recommendation. Nevertheless, I must commend the organiser for a job well done, ‘’ said Odudu.

    Earlier, the Chairman of the chapter, Mr. Offiong Samuel Ukpong, emphasised the need for the group to ensure that their practice was  done according to the best international practice.

    According to him, the event came as a follow-up to last years’ forum, where they examined the subject of international valuation reporting standard (IVRS).

    “Here today, we are meeting to examine and take home what should be our guiding principles on measurement of commercial properties,’’ he said.

  • ITF prepares trainees for global employment

    ITF prepares trainees for global employment

    The Industrial Training Fund (ITF) is preparing graduates of the Fund for the global job market, its Director-General, Mrs. Juliet Chukka-Onaeko, has said.

    She said the agency’s decision to send trainees home after the successful completion of their examinations was to allow for more students/trainees to be admitted and trained in technical/vocational skills.

    Mrs Chukka-Onaeko said trainees sponsored by ITF in collaboration with the Nigeria Employers Consultative Association (NECA) and other organisations would soon get international certifications. She stressed that the ITF was already working on getting an international certification programme for its trainees to be able to work anywhere in the world.

    The ITF chief said the Fund was working with established players in various sectors such as agriculture, oil and gas, construction and automobile maintenance in order to train and empower more youths.

    She said: “ITF’s training programme has been helping players and operators in the various economic sectors and industries to raise new breeds of excellently skilled youths to work for them instead of relying on expatriates.

    “The ITF has been working on certifications for our trainees so that they can work anywhere in the world. We have, therefore, been training our students not only on skilled manpower, but alongside good work ethics, good customer care, and also entrepreneurial skills.”

  • Global unemployment projected to rise in 2016 and 2017

    Despite falling unemployment levels in some developed economies, new ILO analysis – World Employment and Social Outlook (WESO) – shows the global job crisis is not likely to end, especially in emerging economies.

    Continuing high rates of unemployment worldwide and chronic vulnerable employment in many emerging and developing economies are still deeply affecting the world of work, warns a new ILO report.

    The final figure for unemployment in 2015 is estimated to stand at 197.1 million and in 2016 is forecast to rise by about 2.3 million to reach 199.4 million. An additional 1.1 million jobless will likely be added to the global tally in 2017, according to the ILO’s World Employment and Social Outlook – Trends 2016  (WESO).

    “The significant slowdown in emerging economies coupled with a sharp decline in commodity prices is having a dramatic effect on the world of work,” says ILO Director-General Guy Ryder.

    “Many working women and men are having to accept low paid jobs, both in emerging and developing economies and also, increasingly in developed countries. And despite a drop in the number of unemployed in some EU countries and the US, too many people are still jobless. We need to take urgent action to boost the number of decent work opportunities or we risk intensified social tensions,” he adds.

    In 2015, total global unemployment stood at 197.1 million – 27 million higher than the pre-crisis level of 2007.

    The unemployment rate for developed economies decreased from 7.1 per cent in 2014 to 6.7 per cent in 2015. In most cases, however, these improvements were not sufficient to eliminate the jobs gap that emerged as a result of the global financial crisis.

    Moreover, the employment outlook has now weakened in emerging and developing economies, notably in Brazil, China and oil-producing countries.

    “The unstable economic environment associated with volatile capital flows, still dysfunctional financial markets and the shortage of global demand continue to affect enterprises and deter investment and job creation,” explains Raymond Torres, Director of the ILO Research Department.

    “In addition, policy-makers need to focus more on strengthening employment policies and tackling excessive inequalities. There is much evidence that well-designed labour market and social policies are essential for boosting economic growth and addressing the jobs crisis and almost eight years after the start of the global crisis, a strengthening of that policy approach is urgently needed,” adds Torres.

    The authors of the WESO also document the fact that job quality remains a major challenge. While there has been a decrease in poverty rates, the rate of decline in the number of working poor in developing economies has slowed and vulnerable employment still accounts for over 46 per cent of total employment globally, affecting nearly 1.5 billion people.

    Vulnerable employment is particularly high in emerging and developing economies, hitting between half and three-quarters of the employed population in those groups of countries, respectively, with peaks in Southern Asia (74 per cent) and sub-Saharan Africa (70 per cent).

    Meanwhile, the report shows that informal employment – as a percentage of non-agricultural employment – exceeds 50 per cent in half of the developing and emerging countries with comparable data. In one-third of these countries, it affects over 65 per cent of workers.

    “The lack of decent jobs leads people to turn to informal employment, which is typically characterized by low productivity, low pay and no social protection. This needs to change. Responding urgently and vigorously to the scale of the global jobs challenge is key to successful implementation of the United Nations’ newly adopted 2030 Agenda for Sustainable Development,” concludes Ryder.

  • Global meltdown: Paris climate talks and Nigeria’s strategy

    Global meltdown: Paris climate talks and Nigeria’s strategy

    On December 12, 2015, Nigeria,  alongside 194 other countries, adopted a resolution. It was to reduce global carbon emission which took the centre stage at the Conference of Parties 21 (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC) in Paris, France. Assistant Editor SEUN AKIOYE who was at the conference reports on how Nigeria will fulfill its obligations.

    Fabius Laurent, the President of the Conference of Parties 21 (COP21) to the United Nations Framework Convention on Climate Change (UNFCC) looked like a rock star after he banged the gavel, signifying the adoption of a historic climate change agreement in Paris, France.

    There were shouts, applause and raw show of emotions as it dawned on the delegates from almost 200 countries, who converged on Paris that history was unfolding in their life-time.

    Laurent himself could not hide his emotions. He stood up raising up the hands of French President Francois Hollande and United Nations (UN) Secretary General, Ban Ki-Moon in a victory sign.

    “The Paris agreement allows each delegation and group of countries to go back home with their heads held high. Our collective effort is worth more than the sum of our individual effort. Our responsibility to history is immense,” Laurent said to a sustained applause.

    But, Laurent, the French Foreign Minister, and former Prime Minister, has not always been the rock star of what is now known as the Paris Climate Agreement. For a little over two weeks, he faced intense pressure and criticism over the fate of the agreement which forced him almost to the limit of his diplomatic skills.

    Also, the ghost of the failure of Copenhagen climate talks in 2009 hung heavily on the conference venue at Le Bourget, the sleepy community, north of Paris.  The Copenhagen talks have been considered a major failure and it seemed early that the Paris talks would follow the same pattern.

    The road to Paris

    There is the belief  that Africa has not been a historic contributor to climate change, accounting for less than two to three per cent of the world’s GreenHouse Gas (GHG) emission. But, its effect has been felt largely on the continent due to several factors, including underdevelopment, high prevalence of conflict and subsequent diseases, the location of the continent itself and the high dependence on rain-fed agriculture.

    There are grim predictions for the continent if Paris failed in a concrete agreement that would reduce global emission to lower than two degreeCelsius.  If the current trend continues, Africa’s annual Gross Domestic Product (GDP) loss would be between 1.5 to three per cent by 2030. Besides, famine and wars are expected to rise even as the continent’s coastal cities like Lagos, the Niger Delta and Durban, would be submerged. The Intergovernmental Panel on Climate Change also predicted that about 250 million Africans will be exposed to increased water stress by 2020 and that Lake Chad, with an estimated area of 26,000 square kilometers, has  been reduced to just about 10 per cent of its size in 1960.

    Lake Chad is economic lifeline to more than 30 million people in Nigeria, Cameroon, Chad and Niger.

    In a report titled: “Turn the heat down”, released in 2013, the World Bank predicted that dry and arid regions in Southern and Western Africa will increase by 10 per cent by 2030 and if the global temperature increases from 1.5 to two degree Celsius by 2040, African farmers will lose between 40-80 per cent of their crop land while yields from rain-fed agriculture will suffer reduction by at least 50 per cent by 2020. This will adversely affect food security, fueling climate migration, unrest and violence.

    The target of keeping the climate “well below two degrees” according to activists and African developmentpartners is a little too late for the continent. “Two degree Celsius is already harmful – with what you are looking at, an increase of about 3.5 degree Celsius  for the continent because of Africa’s location. 1.5 degree Celsius would be reasonable. We want to see better ambition by people not submitting what is convenient for them but what is right,”Anthony Nyong, coordinator of the African Development Bank (AfDB) delegation said.

    The continent resolved at COP21 to speak with one voice, apart from a strong contingent in the African Group of Negotiators (AGN), which is chaired by Nagmeldin Elhassan from Sudan. The continent also had a strong voice in the G77+China.

    Of particular concern to the Africans at the Paris Conference were the issues of  carbon emission reduction to1.5 degree Celsius, financial pledge , loss and damage and common but differentiated responsibility clauses.

    At the Copenhagen talks in 2009, a pledge was extracted from developed countries to contribute $100 billion  yearly until 2020 to help developing nations combat climate change. But by 2014, the fund had only yielded $62 billion, a situation which did not go down well with the AGN.

    Therefore, when the talks opened in Paris, it was a better prepared Africa and optimistic world that converged on Le Bourget. Laurent said at the start of the conference: “This will be a COP of action, it’s clear, it’s true.”

    The villains, the heroes

    Trouble began early in the talks with allegations that developed and wealthy nations had aligned against the main clauses of the proposed agreement, including Loss and Damage, reduction of GHG to 1.5 and financial pledges. But, none was more divisive than the challenge of fossil fuel, free world and keeping the global climate under control.

    The initial negotiations were conducted by country negotiators, after which ministers for the Environment deliberated on the draft agreement. But, it was by no means an easy task, led by the Philippines, the vulnerable countries forum wanted global carbon eradication by 2050 but the United States (US) and other developed countries prefer to shift the deadline to 2100.

    “In the last 60 years, the world climate has reached 1.0 degree Celsius and in the last 10 years, we have reached 100 per cent extreme weather, imagine if 2050 is not achieved, we are roasted,” one of the negotiators from South Africa said.

    He was not the only one who had the feeling that the world will be roasted; Godwin Ojo of Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN), shared such sentiment. “We want a de-carbonised economy, a move from fossil fuel. Anything short of 1.5 degrees is roasting Africa; it is destroying mother earth; by that, Africa is already at 3.5, so, we cannot afford to go higher. The developed countries should live up to their historic responsibility,” Ojo said.

    But India, an emerging industrialised country and Saudi Arabia, a major oil producing country reportedly did not buy into the idea. They were opposed to anything but 2.0 degrees. Also, all the Intended Nationally Determined Contribution (INDC) – a set of adaptive and mitigation measures each party intends to adopt against climate change – submitted by parties, pointed to a carbon reduction of 2.7 to 3.5 degrees. That is bad news for Africa and other vulnerable countries.

    The US also reportedly frowned at the Loss and Damage clause which would have allowed countries, especially in Africa claim damages from historic polluters. The US frowned at a legally binding agreement, which would have been impossible to pass through the US congress.

    Nigeria and the climate challenge

    Environment Minister Amina Mohammed shone like a star at the talks. Until her appointment, she was the SpecialAdvisor on Millennium Development Goals (MDG) to the UN Secretary-General, Ban Ki-Moon. So, she was on a familiar turf.

    Nigeria submitted its INDC on November 28 at 12:24:55pm, one month after it was prepared by the Ministry of the Environment and  a few days before COP21.

    “The INDC is not just an ordinary document, we have to be careful in completing it and we didn’t delay intentionally. Many developing countries don’t understand what should go into the INDC. We had to follow due process, get the buy-in of all the stakeholders and collect information before we arrived at our conclusion. It was when the government understands what is in the INDC that it gave its accent,”Adeoye Adejuwon, the lead negotiator for Nigeria told The Nation.

    Nigeria has had its fair share of the climate change calamity. For many years, the coastal cities and communities have been especially prone to ocean encroachment. There are predictions about Lagos being submerged in flood and coastal communities like Ayetoro in Ilaje Local Government Area of Ondo State already lost more than half of its land to the ocean.

    The Permanent Secretary in the Environment Ministry, Bukar Hassan, said: “If you look at the sea level rise, in about 30 years, we may lose the whole of Lagos. The rainfall pattern in the northeast has changed. We can’t predict the quantum and distribution; food security is affected and that has, apart from the one caused by insurgency, we have climate refugees in the North and the South.”

    According to a 2009 DFID study, if no adaptation action is taken, between two to 11 per cent  of Nigeria’s GDP could be lost by 2020. This projection is not to be taken lightly as the  Post Disaster Need Assessment (PDNA) Report of the 2012 flood  showed that the total damage caused  by the flood was $16.9 billion, representing 1.4 per cent of the real GDP growth in that year.

    “In this regard, climate change poses a significant threat to the achievement of development goals, especially those related to eliminating poverty and hunger and promoting environmental sustainability,” the Nigerian report said.

    This situation set the tone for Nigeria’s “ambitious INDC”, Hassan said.  According to the document, the objective is a reduction of GHG from Business As Usual (BAU) by 2030 while growing the economy by five percent annually.

    According to officials, Nigeria would reduce her carbon emission by 20 per cent unconditionally, and if given international assistance, rise to 45 per cent. The key measures to achieve this would be: work towards ending gas flaring by 2030; work towards off-grid solar PV of 13GW (13,000MW); Efficient gas generators; two per cent per year energy efficiency (30 per cent by 2030); transport shift from car to mass transit; improve electricity grid and climate smart agriculture and reforestation.

    Nigeria’s estimated emission currently stands at around two tonnes CO2e (equivalent carbon dioxide) per person and if current trends continue, it will rise to 900 million tonnes per year or 3.4tonnes CO2e per person by 2030. However, under the conditional reduction, by 2030, Nigeria’s emission will reduce to two tonnes CO2e. Historically, between 1850 and 2010, Nigeria has emitted 2,564.02 million tonnes of GHG.

    In 2012, the Federal Executive Council (FEC) adopted the Nigeria Climate Change Policy, Response and Strategy with a goal to “to foster low-carbon, high growth economic development and build a climate resilient society.”

    The approach to achieving this would be through the implementation of mitigation measures that will promote low carbon as well as sustainable and high economic growth; enhancement of national capacity to adapt to climate change; raising of climate change-related science, technology and R&D to a new level that will enhance better participate in international scientific and technological cooperation on climate change by the country; significantlyincreasing public awareness and involve private sector participation in addressing the challenges of climate change; strengthening of national institutions and mechanisms (policy, legislative and economic) to establish a suitable and functional framework for climate governance.

    Adaptation, mitigation strategy

    The fight against climate change is predicated on both mitigation and adaptation strategies and Nigeria has adopted some strategies in key sectors. For instance, in agriculture, the government plans to adopt improved  system for both crops and livestock including the introduction of drought-resistant crops, implement strategies for improved resource management. In energy, Nigeria plans to increased protective margins in construction and placement of energy infrastructure (i.e. higher standards and specifications) expand sustainable energy sources and decentralise transmission in order to reduce vulnerability of energy infrastructure to climate impacts.

    In forestry, Nigeria will strengthen the implementation of the national community-based forest resources management programme while supporting the review and implementation of the national forest policy. The country will also develop and maintain a frequent forest inventory system to facilitate monitoring of forest status; and initiate a research programme on a range of climate change-related topics, including long-term impacts of climatic shifts on closed forests.

    In transport and communications, the government plans to undertake risk assessment and risk reduction measures to increase the resilience of the transportation and communication sectors. Strengthen existing transportation and communications’ infrastructure through early efforts to identify and implement all possible ‘no regrets’ actions.

    But, despite these set objectives, Nigeria aligned with countries like India, to oppose an early end to fossil fuel extraction. “We are an energy thirst country. What we are generating today is not sufficient. So, if coal is the answer, why not?” Hassan said.

    Also Cross River State Governor, Prof Ben Ayade, who doubles as the chairman of African Governors Forum on Climate Change, said Nigeria cannot transit from fossil fuel now.  “Renewable energy is not the way for Africans at this point in time. Renewable energy means an end to the sale of hydro-carbon and that means Nigeria should stop exporting crude oil. But, they are busy doing research, inventing technology, using solar energy and wind power.

    “When all of that happens, when the oil price goes down, when you stop producing oil, what are you going to use as an alternative?  Renewable energy must follow with development, it must follow with technology. Africa cannot be in a haste to adopt renewable technology,” Ayade argued.

    According to the governor,  the answer is controlled utilisation of fossil fuel. He said: “I would rather have you use fossil fuel with mitigate measures than to cap it and focus on renewable energy. While that technology works for them, it is harmful for our economy.”

    But, this position contrasts sharply with the generally held view that fossil fuel consumption is largely responsible for climate change disasters. Former Minister of Finance and Coordinating Minister of the Economy, Mrs. Ngozi Okonjo-Iweala, said Nigeria must move away from subsidising dirty energy.

    She said: “Almost three quarters of infrastructure that Africa needs we still don’t have it. That means the power we need, the road and the railway, we still cannot get these infrastructures and have it in a way that is friendly to climate change, that lowers emission and puts us on a low-carbon growth path.

    “We are looking at power and looking at renewables. We are not saying renewables should be everything because Africa should have a mix. We can still use gas to some extent, but we should increase the renewables.”

    But, frontline environmentalist  and Executive Director, Health of Mother Earth Foundation (HoMEF) Nnimmo Bassey, said Nigeria must embrace renewable energy 100 per cent.

    “Nigeria should move away from oil. We made a lot from oil and lose a lot to oil theft. We need to be creative and invest in areas that sustain lives. We have all this sun; Nigeria should jump into renewable energy,” Bassey said in Paris.

    Hope rising

    After two weeks of intense negotiations and expectation, the Paris agreement was finally adopted on December 12. It was an emotional moment for world leaders, politicians and activists, as the agreement was the first legally binding climate change agreement with far-reaching impacts on the future of the world.

    “You’ve done it! Reached an ambitious agreement; a binding agreement; a universal agreement. Never will I be able to express more gratitude to a conference. You can be proud to stand before your children and grandchildren,” Hollande said.

    Ban Ki-moon said: “We have entered a new era of global cooperation on one of the most complex issues ever to confront humanity. For the first time, every country in the world has pledged to curb emissions, strengthen resilience and join in common cause to take common climate action. This is a resounding success for multilateralism.”

    The main objective of the historic climate change agreement is to keep a global temperature rise this century well below two degree Celsius and to drive efforts to limit the temperature increase even further to 1.5 degree Celsius above pre-industrial levels.

    The agreement also captured the essential elements which includes: mitigation – reducing emissions fast enough to achieve the temperature goal;  transparency system and global stock-take – accounting for climate action; adaptation – strengthening ability of countries to deal with climate impacts; Loss and Damage – strengthening ability to recover from climate impacts and support – including finance, for nations to build clean, resilient futures.

    There is also hope in the horizon for vulnerable and developing countries like Nigeria as “unparalleled announcements of financial supports” were made.  “We have seen unparallelled announcements of financial support for both mitigation and adaptation from a multitude of sources both before and during COP21. Under the Paris Agreement, the provision of finance, from multiple sources will clearly be taken to a new level, which is of critical importance to the most vulnerable,” Christiana Figueres, Executive Secretary of the UNFCCC said.

    Nigeria is already looking beyond the Paris talks. On arrival from the conference, the Minister of the Environment began an on-the -spot visit to degraded areas in the country for  impact assesement.

    Among the places visited were:  the Niger Delta,  Alpha Beach and Makoko in Lagos, the sand dune in Yobe and the Sharada industrial pollution site in Kano.

    The assessment was aimed at setting the pace for a comprehensive response to the challenge of climate change even as Nigeria plans to hold on to its leadership role in Africa.

    President Muhammadu Buhari has pledged his commitment to reducing the GHG as well as tackle the climate change challenge in the country.

    But, the implementation would rest on the shoulders of Hajia Mohammed as the envionment minsiter.

  • Global poultry industry ‘ll rebound, says report

    A positive year is expected for the global poultry industry next year, but the sector needs to recover from the challenges incurred by recent avian influenza outbreaks, according to the most recent quarterly report of Rabobank.

    According to it, key fundamentals for the global poultry outlook for next year are positive. The groups indicated that feed prices are expected to remain low, while competitive protein prices for beef and pork will be relatively high.

    Excessive supply expansion has outstripped continued strong fundamentals – robust demand, ongoing low feed prices and relatively high competitive protein prices – in recent months, after multiple quarters of balanced supply/demand, the latest Rabobank report states.

    This has pressured producer profitability in most regions of the world. Markets in China and Thailand will also likely be impacted by avian influenza (AI)-related import restrictions on breeding stock by the US in 2H 2016, also potentially affecting global poultry markets.

    Looking ahead to 2016, the company noted that key fundamentals suggest a good year ahead for the industry, but whether the industry can really benefit from these positive fundamentals highly depends on supply rebalancing to new market circumstances and on further developments surrounding Bird Flu.

     

  • ‘How to build small brands up to global status’

    ‘How to build small brands up to global status’

    Some start-ups are scared of hearing the word branding when advised to engage it for their businesses.

    They think branding and positioning should only be explored by top brands, such as Coca Cola, MTN and others.

    In the words of the convener of Brand Forum and Chief Executive Officer, Thots ‘n’ Works, Mrs. Ogunleye Ayanfeoluwa, most of the start-ups demarket their services by “exchanging with clients poorly designed complementary cards that looks like a photocopied item.”

    These, according to her, are some of the orientations that make start-ups remain small players till they are run out of business  by smarter ones who understand branding.

    “But they fail to understand that small businesses too should brand and position for business growth to attract good customers,” says Ogunleye.

    However, with the recession trailing most big businesses, experts at a just-concluded Brandforum, a free enlightenment forum for SMEs, said this is the right time for small business owners to brand their products and service to attract big clients who need affordable services.

    At the forum, the Executive Director, Rainoil Limited, Godrey Ogbeche, who delivered the keynote address titled: “Start small, grow, big”, urged business owners not to be deterred by the state of the economy.

    “Most things grow big start small. Businesses like seeds have to endure a period of heat and harsh conditions in before they make head way and become big enterprises and conglomerates that people appreciate today.

    “Most of the advanced economies that we know of today are supported by hundreds of thousands of small businesses that employ more people and grow their countries’ GDP. So, be ready to start small now and grow big gradually,” Ogbeche advised.

    -Besides, Ogbeche noted that to attract the right clients, start-ups must have drive, passion, discipline, integrity, dedication and also understand relationship management skills.

    To start out small, she urged SMEs to be sure of their value proposition; get adequate knowledge about the products and services and the industry they operate in as well as avoid loans to finance their start-ups or assets.

    Drawing from her personal experience of starting Rainoil with her husband in 1994 with N300,000, Ogbeche stated that the first step to growing big for SMEs is strategic planning, just as she explained that each entrepreneur must decide what being big is for him or her.

    Also, Ogunleye urged SMEs to brace up in spite of the dwindling economy because it is their “finest hour” to compete and grow.

    Also, the Chief Executive Officer, Thistle Praxis Consulting, Ini Onuk, while fielding questions from the audience comprising business owners,  warned that each business owner must be ready to operate by principles of integrity in business dealings, adding that training staff is not an option even if many leave immediately after receiving advanced training from their employees.

    “For me, we sign a bond of about two years with any staff we are going to train. We can’t just train you and you leave. We have even trained others overseas in the past and they resigned immediately they returned from the training,” she said.

    At the public presentation of the  book written by Ogunleye titled: “What Mr Zack taught about Business and Life”, Onuk enjoined SMEs to buy the book as it contains many real life nuggets of running a business in Nigeria.

    Ogunleye also announced a branding makeover for three SMEs selected by her firm. She handed  them over to mentors who will help them grow.

  • Africa set to take its share of global cement market

    Africa set to take its share of global cement market

    Despite the large deposit of limestone in Africa, the continent  has no representation within the top global cement companies. But, the expansion of Dangote Cement across Africa may change the  order. The company appears set to change the fortune of Africa as an importer of the raw material to a global producers. TAOFIK SALAKO and Okwy Iroegbu-Chikezie report that Dangote Cement is fast becoming a game changer in the global cement market.

    The world’s cement market is vast. With an estimate of  annual revenue of more than $250 billion and a 5.3 per cent annual growth projection, cement production is arguably a major driver of economic growth in many ways.

    The product is a vital raw material in construction, the major hub of activities for growing and emerging economies. Its production is intensive and largely localised, providing the resident economy with huge opportunities for job creation, self-sustenance and foreign exchange.

    But, despite Africa’s vast limestone deposits, no African nation ranks among the top cement producing countries and no African company features among the top producers.

    According to the Global Cement magazine report, China, India, United States of America, Turkey, Russia, Vietnam, Iran, Japan, Brazil and Pakistan are the top 10 producing countries. Chinese companies also dominate the global top 20 cement companies. France’s Lafarge is leading the rank, which includes eight Chinese companies – CNBM, Anhui Conch,  Jidong, China Resources, Sinoma, Shanshui, Huaxin and Tianrui.

    Other top producers are: Italy’s Italcementi and Buzzi; Taiwan Cement (Taiwan); Heidelberg Cement (Germany); Cemex (Mexico); Votorantim (Brazil), CRH (Ireland); Ultratech and Jaypee (India) and  Eurocement (Russia).

    Dangote Cement is making inroads into the top league, in operations and capacity.

    With a market capitalisation of about N2.8 trillion; more than a quarter of the total market capitalisation of the Nigerian equities market, nine-month revenue of N365.5 billion, operations in 18 African countries, two other ready-for-commissioning plants in two African countries and pipeline contracts for several plants in 11 countries, Dangote Cement is already established as official largest cement company and one of the largest companies in the continent.

    The third quarter corporate earnings report and the commissioning of its $600 million cement plant in the United Republic of Tanzania have shown Dangote as Africa’s driver in cement production.

    According to extracts of the nine-month earnings report as at September 30, Dangote Cement exported 3.7 million metric tonnes to neighbouring countries.

    The export underscores both the fact that Nigeria is now self-sufficient in cement production and the fact that the country can save its hard-earned foreign exchange (forex) earnings through local exporters

    The report underlines the resilience and steadiness of the company’s growth model despite macro-economic and industry-specific headwinds that had shaved competitors’ earnings.

    According to the report, the company’s turnover rose by 17.8 per cent to N365.5 billion by September 2015, following strong performance its plants outside the country. It posted N310.21 billion when compared to 2014. The gross profit grew by 13.5 per cent to N226.8 billion as against N199.71 billion.

    Also, the operating profit stood at N173.5 billion, 6.8 per cent higher than N162.5 billion generated in 2014. The diversity of the earnings also improved. Nigerian operations accounted for N162.7 billion, West & Central Africa N2.9 billion, while South & East Africa brought in N7.4 billion.

    Altogether, the profit before tax rose by 8.4 per cent to N166.9 billion in the third quarter as against N154 billion recorded in 2014.

    The net profit after tax rose from N140.48 billion to N157.99 billion and the basic earnings per share rose by 18.6 per cent to N9.80 by third quarter as against N8.26 recorded in 2014. The third quarter basic earnings per share have surpassed the N9.42 per share recorded throughout last year.

    Dangote, which has distributed a dividend per share of N6 on the basis of earnings payout rate of 63.5 per cent for the last business year, ended 2014 with a revenue of N392 billion as against N386 billion in 2013.

    As the company’s exports hold rays of hopes for diversification of the economy, its sustained growth has been helping to stabilise the stock market.

    With declining foreign portfolio investments, the stock market has wriggled under a recession orchestrated by global variables, including declines in crude oil price and recovery in advanced markets.

    The resurgence by highly capitalised stocks, including Dangote, has helped the market to moderate losses in recent period. Dangote Cement’s Industrial Goods Index has shown the strongest resilience on the main board at the Nigerian Stock Exchange (NSE) with average year to date return of -2.49 per cent, the lowest within a table of return as high as -17.97 per cent, at the start of the market this week.

    Its Group Managing Director Onne van der Weijde, attributed the steady improvements in earnings of the group to its operations across Africa, a development he noted, has helped to mitigate the impact of a subdued local economy.

    He said: “We remain optimistic that our home market of Nigeria will recover and this will restore growth and improve overall profitability. We hope our new pricing strategy will contribute to the country’s economic recovery and particularly urge the Government to begin building more robust roads using concrete instead of imported asphalt.

    He said sales from outside the country have contributed nearly 29 per cent of volumes so far this year and 39 per cent in the third quarter, a proof that the group’s diversification has been successful and quickly gaining market share in other countries.

    According to van der Weijide, the group’s strategy to be the cost and quality leader in all markets has already delivered strong gains in market share in key territories such as South Africa, Ethiopia and Senegal.

    “He said: “These were countries that were supposedly oversupplied, but the group’s strong entries have proven that new factories producing high-quality products will disrupt cement markets where incumbents have older, less efficient technologies and lower quality products.

    “Despite the challenges we are facing in Nigeria, our achievements and continued growth cross Africa should reassure investors that we are delivering on our promise to become the continent’s largest cement producer.”

    Another frontier for growth

    In October, Dangote Cement inaugurated its $600 million 3.0 million metric tonnes per annum cement plant in Mtwara District, Tanzania, setting several records as the largest cement plant in East and Central Africa and the largest single investment in Tanzania.

    The Tanzanian plant is the fourth to be inaugurated after Ethiopia, Zambia and the Cameroon plants. The Dangote Group now has cement operations in 18 African countries and it has plans to inaugurate those in Senegal and South Africa before the end of this year.

    Other African operations include: Ghana, Cameroun, Congo, Cote d’ Ivoire, Liberia, Senegal, Sierra Leone, Ethiopia, Kenya, South Africa, Zambia, Niger and Mali. These non-Nigeria African operations fully complement a solid home base, already established by the cement group.

    Back at home, Dangote Cement’s fully integrated quarry-to-customer cement plants have a production capacity of 29.25 metric tonnes per annum (Mta).

    Its Obajana plant in Kogi State is the largest in Africa with 13.25 Mta capacity across four lines. The Ibese plant, also in Ogun State has four lines with a combined installed capacity of 12Mta while the 4.0 Mta capacity plant in Gboko, Benue State..

    Tanzanizn President Jakaya Kikwete, who inaugurated the plant, captured the hopes and aspirations of his country when he described the cement plant as historic and a milestone that would not only bring economic prosperity to the people of Tanzania, but strengthen the bilateral relationship between Tanzania and Nigeria.

    Dr. Kikwete, who opted to speak in Swahili with intermittent interjection of English, said the investment by Dangote Industries has further rekindled the spirit of African brotherhood and continental economic development.

    His Prime Minister, Mizengo Pinda, said the plant in Mtwara will initially create more than 7,000 indirect jobs that will bolster the general economy of the area and the entire country.

    Pinda commended the record-setting pace with which the company completed the Tanzanian plant, the fastest to be so built by the Dangote Group and the second largest cement plant of the group, trailing Nigeria’s Obajana plant.

    President Muhammadu Buhari, who was represented by Kaduna State Governor Mallam Nasir  el-Rufai, commended the Dangote Group for rising to the fulfilment of the aspirations of the founding fathers of the continent, noting that firm’s African growth strategy symbolises a new dawn.

    According to him, with Dangote’s investments across Africa, the continent has finally taken its destiny in its own hand rather than waiting endlessly for international investors.

    Stressing that only Africans would genuinely develop Africa, Buhari pointed out the vast opportunities in the continent have been receiving a lot of attention from investors, not only because it is seen as the last frontier of development in the world but also because of its high rate of returns.

    President, Dangote Group, Alhaji Aliko Dangote, said the inauguration of the Mtwara plant marked the beginning of an enduring business relationship with Tanzania. He noted that the Group has a plan to invest in agriculture and other sectors that would have multiplier effects on the Tanzanian economy.

    He said the group would also construct a 25-hectare jetty at Mgao, a community within Mtwara for export of cement to other countries and transportation to Tanzanian capital, Dar Es Salam.

    Dangote said: “We are here to create wealth and provide jobs for Tanzanians. In fact, one of our key strengths lies in our ability to understand the peculiar needs of Africans and how to do business successfully on the continent. That is why we have made Africa the centerpiece of our multi-billion dollar investments.

    “We believe that it is only Africans who can develop Africa. We are also motivated to create an African success story because we believe that entrepreneurship holds the key to the future economic growth of the continent.”

    Investment in the real sector of the economy, he said, remained the only way Africa can achieve accelerated growth and development that could liberate the people from the shackles of poverty.

    Dangote lauded the Tanzania government and its people,  assuring that the company  will go beyond its primarily business of wealth creation and reciprocate the enormous goodwill of the people, who he said would  be engaged in impactful corporate social responsibility projects.

    His words: “We are already committed to assisting the Mtwara community where our plant is situated, to build a market, school, a clinic and other social amenities, as part of our CSR initiative, just like we did at our Obajana, Ibese and Gboko Cement Plants in Nigeria.

    “It is our hope that all these projects will give the community a sense of ownership. A few weeks ago, we gave a grant of $500,000 to needy people in the nearby community.”

    According to him, the company has earmarked some  $500,000 to empower the people of the community.

    Building new capacities

    In August, Dangote Cement signed several contracts valued at $4.34 billion with Chinese firm, Sinoma International Engineering Company Limited, to build 13 new cement facilities across 11 countries. The deal was a major expansive move to increase the group’s total capacity to more than 70 million metric tonnes.

    The new projects would be funded through a mix of internally generated funds, debt finance and vendor credit expected to come on stream gradually over the next 30 months.