The Nation Newspaper

Tag: grow

  • ‘How entrepreneurs can grow their businesses’

    ‘How entrepreneurs can grow their businesses’

    All an entrepreneur requires to make a success of his business is the hunger for success. As simple as this statement sounds, the irony, however, is that not many people who venture into startups are motivated enough to make a success out of their business.

    This is the major challenge for many startups in sub-Sahara Africa. But in the view of Vusi Thembekwayo, a South African entrepreneur and business speaker, a lot of businesses can record success stories once they are able to apply themselves well.

    Thembekwayo popularly referred to as Vusi was in Nigeria recently as the lead resource person at the maiden edition of the annual Stanbic IBTC Business Leadership series. Judging by his antecedent, the packed audience looked forward to Vusi to provide insight and learning at the Stanbic IBTC Business Leadership Series.

    Apparently no stranger to such gatherings and certainly not to Stanbic IBTC, his proficiency, oratory, and delivery style, laced with humour kept the audience captive.

    Speaking at the Stanbic IBTC Business Leadership series, conceived to provide new and fresh insights, challenge the norm, and help build deeper connections among businesses and business leaders, Vusi shared useful suggestions among entrepreneurs interested in taking their businesses to the next level.

    Few weeks ago, on his Instagram page, Vusi posted a signpost with the inscription: “If you’re the smartest person in the room, then you are in the wrong room.”

    The wisecrack aptly embodies Vusi and speaks to his thirst for excellence, pursuit of knowledge, and constant self-improvement.

    Little wonder at 17, he was considered Africa’s best motivational speaker when he won the Audience Favourite Speaker Prize at the Public Speaking World Championship organised by English Speaking Union.  He speaks to over 250,000 people yearly in more than 13 countries.

    Vusi who is few years shy away from 30, is rated “one of the best motivational and keynote speakers alive today” by the Who’s Who in Southern Africa, a website dedicated to the leading lights in that region of Africa.

    The bubbly fellow is not only a business speaker but also empowers his audience with new knowledge, research findings and tools that they can immediately apply in their businesses or careers to achieve “step-change” results.

    The choice of Vusi as a resource person for such a high calibre initiative by one of the respected financial institutions in the country is quite obvious, going by Vusi’s formidable credentials, which read like a page out of Lewis Carroll’s Alice in Wonderland.

    Of importance is the fact that Vusi shares some of Stanbic IBTC’s underlying business virtues such as professionalism, hard work, intelligence, integrity, leadership, and confidence. Shell South Africa described him as exhuming “intelligence, trustworthiness, humaneness, courage and sternness.” And “he understands sales, management and leadership,” declared MTN Business.

    Vusi studied at Witwatersrand University, South Africa, and has certifications from Wits Business School, where he graduated Cum Laude, Graduate Institute of Business Science (GIB), and INSEAD.

    He has worked as a salesperson and later as a business unit executive in some of the well-known organizations in South Africa. As Director of New Markets & Structured Income at Metcash between 2007 and 2010, aged 22, he led the growth of New Markets business from R16 million (about $1.4m) to R298 million (about $26.6m), built the Structured Income business unit from nothing to R187 million (about $16.7m) and achieved the highest EBITDA (earnings before interest, taxation, depreciation and amortization) within the group for two years.

    Before then, between 2004 and 2007, he co-founded Uciko Capital & Advisory Ltd where he co-managed the Advisory business unit. He developed a sales system that equipped the sales team with higher closure ratio skills and was able to deliver 82per cent growth in net operating profit less adjusted taxes in 18 months.

    He is currently the managing director of MOTIV8, a specialist consulting and services business he set up. Premium business magazine named Vusi “an entrepreneur extraordinaire.”

    Thembekwayo holds several board appointments and directorships and influences R4.32 billion (about $384.5m) through these appointments in deals. One of such appointments is as a director in a listed company on the Johannesburg Stock Exchange, the youngest such director in South Africa. He is a member of the National Speakers Association, New York.

    Visu says he is “an ordinary guy, with a simple background.” Simple background, yes, but he is certainly not an ordinary guy. There are not very many under-30s who have achieved so much professional success.

    He belongs to an exclusive class that boasts of Lucy Baldwin, the 29-year-old managing director of Goldman Sachs, Lucas Duplan, the 22-year-old founder of rave making Clinkle, a mobile payment start-up company, David Karp, 27-year-old founder of Tumblr, the microblogging platform and social networking website, and Uzoamaka Maduka (26) co-founder, The American Reader, a well received literary magazine.

    On what drives him, Visu says, “As young people, we need to move beyond being successful; we need to be significant.” Indeed, the very energetic Vusi is constantly in motion in search of the next challenge. This ties in nicely with Stanbic IBTC’s pay-off line ‘Moving Forward.’

    The financial institution, leveraging on the rich heritage of the Standard Bank Group, to which it belongs, is always willing to push the envelope in product and service innovation and delivery. CEO of Stanbic IBTC Holdings, Sola David-Borha, talks about an “unrelenting commitment to deliver innovative solutions and very credible performances across all business segments.”

    “His humour is the glue that binds some of his most diverse audiences in the world. His motivational speaking style is rich with jokes,” wrote a columnist about his deliveries. In 2013, Vusi delivered 209 presentations across four continents.

    Some of his clients include Standard Bank, World Bank, Shell, MTN, Ernst & Young, RBA Homes, Australian Houses of Parliament, British House of Commons, and many others.

    A former Australian Prime Minister, John Howard, was so impressed by Vusi’s presentation that he described him as the ‘Rock Star of Public Speaking’, in reference to the huge, almost godlike, devotion to and followership commanded by Rock ‘n Roll stars. And like a Rock star, the speaker from Madiba country leaves his audiences swooning and asking for more.

    Feedbacks from clients suggest Vusi is adroit at what he does, which is to motivate people to go beyond “success to significance”.

  • Understanding will grow—Wenger

    Understanding will grow—Wenger

    Arsène Wenger admits that his summer signings are not quite on the same wavelength as their new team-mates – but he expects that to happen soon.

    Alexis Sanchez, Mathieu Debuchy and Calum Chambers all made their Premier League debuts for Arsenal against Crystal Palace on Saturday and all three impressed. Alexis played a part in both goals, Debuchy forced the save that led to Aaron Ramsey’s late winner and Chambers was composed at the back.

    Wenger knows it will take time for his new-look side to click but he saw promising signs at the weekend.

    “Technically the performance could have been better but the attitude and the not-give-up attitude was fantastic,” he told Arsenal Player. “In the end it got us through.

    “It’s normal, with the pre-season preparation we had, that we have some co-ordination problems, but overall I’m very happy with the attitude of the team.

    “There was some misunderstanding in our passing but overall I felt at the back Debuchy and Chambers played very well, they were really controlled. [Alexis] had good spells but he has to improve the understanding with his partners. The three of them have been very satisfying.”

    The Arsenal manager also praised Ramsey after he popped up in the six-yard box to end Palace’s resistance in stoppage time.

    “It’s important for us that he can score goals,” said Wenger. “It’s a continuity of what he has delivered last season and that’s good for us.”

     

     

  • ‘Nigeria needs more startups to grow economy’

    ‘Nigeria needs more startups to grow economy’

    Ibifuro Tatua, CEO, Boss Pan Africa Limited, a company involved in packaging and sourcing building materials is helping others to take their business to the next level and connecting with their contemporaries in other parts of the world. In this interview with Rita Enosegbe, she shares her passion for business and other related issues. Excerpts:

    How did your journey into business start?

    My journey into business started from an early age, without really realising it. I was groomed to be a business woman by my grandmother who herself was a trader and a farmer. Every holiday when we went to the village to visit her, she would make me sell her farm produce and she let me sell it as I pleased and she would sing my praise to all who cared to listen. I did it then just for the praise, I enjoyed the drama and attention I got as she would use my name to sing different songs. She would dance and she was loud about it, so selling and doing chores, for me, became my goal every holiday, even though my dad who was a pilot and my mum a contractor with shell.

    My other siblings hated the idea but I did it as if my life depended on it. I did it with so much joy, and today I am that girl; that happy, hardworking grandma’s girl, now a woman.

    Which was your first job?

    When I graduated, the first job I got was with a construction company. They built mostly churches, universities and did big projects only. I was the site clerk.

    I resigned as the site clerk, registered a company name and called my mum and my brother and I started this supply business of building materials. I relocated to Lagos and ventured into other line of businesses, and realised there is so much potential in Africa; there is so much to learn and so much to do.

    I have always had an independent mindset. I have too many ideas running through my mind and I know that doing a white collar job would limit me to a certain extent and I would be required to work within my job description, job group and the company scope. I do white collar jobs only to gain knowledge and the technical knowhow of certain operations and to add to my CV. But once the knowledge is tested and proved, I like to expand and maximise it in my business world.

    How do you compete with others in the market?

    Ideas and opportunities kept presenting themselves to me. I just don’t know how to be idle; I like to work, even if it is for charity. I just like to be productive and multiply in productivity. I am the kind of person who would sell water to fish. If I find myself in a bad place, I like to think of what good can be sold there. So, basically, ideas present themselves to me and I take a chance on them.

    What do you consider as inspiration on the job?

    The very first people I share my business ideas with, the ones who support and give approval. Those I need the most are the first to say no, don’t do it, you can’t do it, forget about it or some just go silent on you. Without moral support, it becomes four times more difficult to proceed, but now I have decided to try things out on my own or with like minds that may not necessarily be close to you but who believe it can be done. That is no longer a challenge for me, however. Every business has its own challenges; for some it is cash, for me it is to understand the business, the nitty-gritty of the business. It takes time to grasp the basics of a business, we see the beautiful aspect of a finished product, we project in our mind and calculate the expected turn out of the business, but most times those tiny factors we overlook can set us back and frustrate a well planned and heavily funded venture.

    As much as it is good to hire professionals to handle every area of your business, there is need for you to have an idea of what to do to save your business until help surfaces. I call it business first aid; there is also need to have an understudy for every professional.

    What inspires what you do?

    I learn from those who have gone through the mile I want to go. I read books, watch documentaries on the businesses I am interested in. I keep an open mind, I take risk, and I make friends and find mentors or role models in the chosen line of business. I don’t mind running errands for them just to stay close. I tell them my mission and most often than not, they are happy and willing to put you through, but you must always remember to give them due credit at every chance you get, and you must be focused.

    What challenge did you face at the beginning?

    I trust easily. I give people benefit of doubt and I like to give room to my workers to create. I do not box them and they do excellently well, but not checking on them, not checking on their final delivery has cost me time, money and a few opportunities. So, now, no matter how brilliant an idea, I see to it that it is reviewed critically. I still make mistakes; I am still a work in progress, but I try to see how best to improve on production and services.

    I am inspired by a lot of factors pending on what angle I look at it. I like change, I like to make a difference, I like to feel secured, I like to just go out there and come back with favourable results or at least make an attempt.

    If you don’t utilise your full potential in your youth, when you are strong and active, is it when you are old weak and feeble that you will begin to think and work? In my first year at the university I came across a phrase: procrastination is the thief of time. I liked it so much and used it often, as so as I knew what it meant, if you don’t do it now, you might as well forget it because every second that clicks is time being spent, burnt, lost, and it is you getting older by the seconds. Some people tell me they don’t have the platform or opportunity to prove themselves. Some say they have ideas but don’t have the resources, well how long will you wait? What if the platform or resources you are waiting for never comes; will you just wait and do nothing? Why not get busy while you expect that big break. Trust me, nothing is too small, it was one Otunba in Lagos who said: ‘shit business is big business’. What can be low as that if you look at it from a layman view?

    How did you raise your start-up capital?

    No matter how quietly you make it, your responsibility increases, the demand on you is high and there is the need to give back to the society. You just have to set your priorities straight; you must set aside money for business, money for pleasure and money for emergencies. You must learn to be financially disciplined or else you end up worse than where you started. I have made several financial mistakes. I love to shop and I love to help people, but I realised that moderation is the key word. In everything you do, set a limit.

    It was Mahatma Gandhi who said: “Never test the depth of a river with both feet,” so I make sure I don’t get carried away with expenditures. As for human resources, some people see me and their first reaction is, this small girl? Well, by the time they sit down to discuss business with me and realise that I know what I am doing, they begin to say, ‘yes ma’, ‘ok madam’ or ‘yes boss.’

    What do you hope to gain from the international summit?

    When I got an award as the young performing personality of the year at the Niger Delta Achievers Merit award in 2012, I was surprised to see many young entrepreneurs like myself at the event. I was really impressed to see that the young people have decided to take control of the economic situation around them. Then at the African Achievers Award held in Ghana, I met much more youths across Africa taking giant strides; some of us came together and decided that there was need for us to meet, inspire, empower and support the next generation of emerging global business leaders who are committed to use the power of business to change some of Africa’s most challenging economic, social and environmental problems. The summit will feature the top business leaders like Mrs. Divine Ndhlukula, Forbes most successful business woman in Africa 2012.  Others include Maha k.Al-Ghunaim Chairperson & Group Chief Executive Officer of the Global Investment House, Justina Mutale (Founder Positive Runway), with presence across 54 countries globally and Richard Branson, founder and Chairman of Virgin Group.

    The summit is designed to support young people on their ongoing journey of business excellence as renowned business leaders, industry giants and entrepreneur expects have been lined up to give them extensive training, while stimulating real life business challenges in the 21st century with pragmatic solutions for society benefit and business success. It would also help to match individuals with the best in the industries or sector will be our own strategic mechanism to guarantee value.

    What are the other benefits?

    Participants would gain perspective on their own current leadership challenges, looking both at their personal styles and global strategic context of their industries. The business sessions, trade collaborations, seminars, expert business tour, networking opportunities and political exposure will surely define the crescendo of the summit and make it an experience unforgettable for all participants.

  • GTBank to grow market share in African expansion

    Guaranty Trust Bank has said its target in the years ahead is to aggressively grow its market share in priority sectors and also build highly driven workers with deep industry skills.

    Presenting the bank’s result for the year ended December 31, 2013, to the business editors in Lagos yesterday, its Managing Director, Segun Agbaje said the lender also wants to scale up its African franchise.

    He said the bank has been able to sustain its profitability as well as a 9.68 per cent increase in dividend value. He said based on the recently completed Gross Domestic Product (GDP) rebasing, Nigeria remains the largest economy in Africa with GDP of $510 billion, adding that Nigeria’s third quarter 2013 real GDP will be 6.81 against South Africa’s 1.70 per cent.

    Agbaje said the GDP growth is increasingly driven by non-oil sector adding that the Central Bank of Nigeria (CBN) is committed to stable currency regime having maintained a stable rate regime.

    He said although oil production dropped from 2.09 million barrels per day (mbpd) in June 2012 to 1.99mbpd in June last year, oil prices remained above $100/barrel through last year.

    He averred that given current international developments, there is need for suppot for oil prices through this year.

    Agabje said the bank’s management goal is to promote sustainable efficiency across board and increase in cost of private.

    According to him, GTBank successfully completed its acquisition of Fina Bank and its subsidiaries Such as Fina Kenya and Uganda adding that the bank has now been rebranded to GTB Kenya, GTB Rwanda.

    He said GTB Fina Bank was already a profitable venture prior to acquisition and management is confident that it will be a lot more profitable, efficient and innovative

  • Protests grow against ministerial nominees

    Protests grow against ministerial nominees

    AS the screening of the new 12 ministerial nominees begins tomorrow, protests have grown against some of the nominees.

    Those on the list are: Senator Musiliu Obanikoro (Lagos); Aminu Wali and Hadjia Jamila Salik (Kano); Mrs. Lawrencia Laraba Mallam (Kaduna); Mrs. Akon Etim Eyakenyi (Akwa Ibom); Mohammed Wakil (Borno); and Abdul Jelili Oyewale Adesiyan (Osun).

    Others are: Dr Khaliru Alhassan (Sokoto); Tamuno Danagogo (Rivers); Mrs. Asabe Asmau Ahmed (Niger); General Aliyu Gusau (Zamfara) and Mr. Boni Haruna (Adamawa).

    Besides some issues against six nominees by some senators, the Coalition Against Corrupt Leaders (CACOL) has kicked against the inclusion of former Adamawa State Governor Boni Haruna in the list.

    Some stakeholders in Niger State have also rejected Mrs. Asabe Asmau Ahmed because she is married to a man from Kano State.

    Investigation by our correspondent showed that there was pressure on Senate President on the application of the convention of the Senate. The convention states that the consent of two senators from the state of a nominee is necessary before the nominee can be cleared.

    The convention would enable senators to reject some of the ministerial nominees.

    It was learnt that although some of the nominees had been lobbying, but some senators are determined to stop those nominated from their states.

    One of those with such challenges is Boni Haruna. CACOL has faultred his nomination.

    In a statement by its Media Officer, Abimbola Adegoke, the anti-corruption group said its Executive Chairman Debo Adeniran said Haruna’s nomination “makes a mess of the anti-corruption war of the Federal Government”.

    The activist urged the Senate to “reject any ministerial nominee of questionable records, most especially those indicted or facing corruption charges with the anti-graft agencies”.

    He said: “It is very unfortunate that despite the barrage of allegations against Boni Haruna, Mr. President could still nominate him for a ministerial appointment…

    “Is it because there’s a dearth of people of impeccable pedigree that the President nominated Boni Haruna? This same Boni Haruna was arraigned on a 28-count charge of fraud and embezzlement of public fund during his administration as governor of Adamawa State between 1999 and 2007…”

    Some senators were also said to have issues against six nominees.

    The affected nominees are from the Southwest, Northeast, Southsouth and Northcentral.

    Although the names of the nominees were kept under wraps, some of those leading the campaign against them are from the ruling Peoples Democratic Party(PDP).

  • ‘How social media can grow SMEs, others’

    An information communication technology (ICT) firm, Cornerstone Limited, has unveiled a software called Victory 100 that allows small and medium scale enterprises (SMEs) to use social media platforms to enhance growth and expansion of business.

    Its Chief Executive Officer, Rev Lawrence Awolade, who unveiled the software in Lagos, said it is a seamless digital marketing social media business system that allows the user to post and manage all their social media platfrom from one site.

    According to him, it takes hours every day to post on the variety of major social media sites available and more time to manage them, answering questions and trying to get them to buy products. He said the cost and time spent on finding a way to capture the names and emails of interested people, building a relationship with them through emails, newsletters and proposing business deals could be overwhelming.

    “We harness the power of social media, take the mystery out of social media marketing, delivering an easy to use automated system that even beginners can understand and use. It helps you to manage your social media across multiple platforms, monitor brand mentions and quickly publish content within a single dashboard,” he said. According to him, the email platform built into Victory100 allows the user send personalised mails to all prospects when there is something special to promote or an announcement of new products or services at just $25 per month.

    Awolade said Victory100 has an integrated lead capture system to gather the names and email addresses of interested visitors to user’s posts and an auto responder to send them a series of targeted emails that help develop a strong relationship.

    He said the V-Success solution is like a health club for the users’ mind and vital to wealth creation efforts, adding that it is designed to take business and personal life to a new level using audio and video archive that provide motivation, inspiration, leadership and success training.

    He added that the V-Success programme gives the user ongoing advanced training on sales, leadership, personal growth and advanced internet principles to help assure success in business.

  • How young lawyers can grow

    How young lawyers can grow

    FOR lawyers, the legal profession may no longer be what it used to be. Lawyers of old made their mark in court. With the dearth of court cases, young lawyers do not have such chance. What is the way out?

    They have been advised to look for a sector where they can carve a niche for themselves and become specialists in the field.

    At an event organised by the Nigeria Bar Association (NBA), Ikeja Branch at the Bar Centre, GRA, Ikeja, speakers noted that times had charged in the profession, urging young lawyers not to despair as all hope was not lost. The event was chaired by Justice  Atinuke Fadeke Oluyemi; Pastor Dele Adesina (SAN) was guest of honour.

    The speakes included the former dean, faculty of Law, University of Lagos (UNILAG), Akoka, Prof. Oyelowo Oyewo; Head of Jurispudence and International Law, Dr. Yemi Oke;  while discussants included Mr. Wolemi Esan and Mr. Olumide Apata.

    Dr. Oke, in his paper, “Discussing the role of young Nigerian lawyers in the new power sector”, counselled young lawyers to take advantage of opportunities in the sector, with the incoming of new investors.

    He pointed out that lawyers could reverse the quackery prevailent in the sector by drafting and negotiating power sector agreements, taking on prosecution of electricty matters as they affect Power Holding Company of Nigeria (PHCN) or consumer protection advocacy.

    To be effective and efficient in the sector, he advised young lawyers to develop themselves in electricity law by re-training themselves to become specialists.

    Speaking on legal and constitutional issues they affect electricity, Oke said the Schedule Part II, Concurrent Legislative List, Constitution of the Federal Republic of Nigeria (CFRN) 1999, provides in Section 13:

    The National Assembly may make laws for the Federation or any part thereof with respect to;

    (a) electricity and the establishment of electric power stations;

    (b) the generation and transmission of electricity in or to any part of the Federation and from one state to another state; (c) the regulation of the right of any person or authority to dam up or otherwise interfere with the flow of water from sources in any part of the Federation; (d) the participation of the Federation in any arrangement with another country for the generation, transmission and distribution of electricity for any area partly within and partly outside the federation;

    (e) the regulation of the right of any person or authority to use, work or operate any plant, apparatus, equipment or work designed for the supply or use of electrical energy.

    He explained that by virtue of paragraph 14, state governments in Nigeria are at liberty to engage in licensing and regulation of electricity subject as provided by the Constitution:

    Section 14 of the constitution, he said provides that a House of Assembly may make laws for the state with respect to

    (a) electricity and the establishment in that state of electric power stations;

    (b) the generation, transmission and distribution of electricity to areas not covered by a national grid system within that state; and

    (c) the establishment within that state of any authority for the promotion and management of electric power stations established by the state.

    In his paper titled: Emerging trends in contemporary legal practice: Insights from corporate practice, Wolemi Esan counselled young lawyers to take interest in the oil and gas sector, which he said presents tremendous opportunities for corporate legal works. He said the sector is the mainstay of the economy.

    He said that with the on-going restructuring in the power sector and the breaking of the monopoly hitherto being enjoyed by the PHCN, the sector is becoming more and more attractive for business opportunities. He remarked that one key objective of development in the power sector is to ensure power supply to all and government’s intention to step up generation to 400,000 V from 10,000 V, lawyers he said must be prepared to take advantage of the emerging opportunities in the sector.

    Esan said that clients are looking for strategic thinkers and stressed the need for lawyers to have a deep understanding of the sector in which they want to specialise. He also stressed the need for continuous education for lawyers to keep themselves abreast of developments around them. “If you have a good driver, you won’t want him to go. If you are a strategic thinker, your client would not want to let you go”, he said.

    Former chairman of the branch Mr. Dosu Ogunniyi advised young lawyers seeking practice in property management to tread carefully in the sector. He said much as the sector is capable making lawyers successful within a short time, “lawyers should be very careful in area of property management because the sector is very slippery and as lawyers we must retain our integrity at all time”.

    He lamented that contrary to expectations, some lawyers are impoverised. Ogunniyi said he conducted a research and was amazed to discover that some lawyers are earning as low as N30,000 per month in established chambers. “Each time I see a lawyer coming off an Okada (motor cycle), I feel very sorry for such a lawyer,”he said.

    The former chairman of NBA Disciplinary Committee urged the national body of the association to establish a contingency fund to help young lawyers.

    In a welcome address, NBA Ikeja, Young Lawyers Forum chairperson, Mrs. Nelly Silver-Ajalaye, stressed the need for  young lawyers to embrace excellence and success in any pursuit, especially legal practice.

    “As young lawyers, we must always try to improve our professional skills”, adding that this was why the objective of the forum centered on promotion and advancement of continuing legal education among young lawyers.

     

  • Osun, Ogun, Akwa Ibom, others drive SMEs to grow economy

    Many state governments have made appreciable strides in the development of Small and Medium Scale Enterprises (SMEs). They have not only engaged in capacity building, but also provided funds and an enabling environment for them to thrive. Some of the SMEs, which were at the just concluded Lagos International Fair, acknowledged the efforts of their state governments but asked for more, especially in capacity building and funding, reports OKWY IROEGBU-CHIKEZIE.

    Most state governments seem to have come to the conclusion that Small and Medium Scale Enterprises (SMEs) are key to the economic growth of their states.

    They came to the just-concluded Lagos International Trade Fair to showcase their SMEs activities.

    For instance, the Commissioner for Commerce, Industry, Cooperatives and Empowerment, Ismaila Adekunle Jayeoba-Alagbada, told The Nation at the Fair, that the government has established four departments in the state Micro-Credit Agency for traders, artisans, agriculture and administration.

    He said the government has also acquired 35 hectares of land to establish an academy for training unemployed youths.

    He said the importance the government puts on reliable data for economic planning made it to embark on biometric registration of artisans and tradesmen.

    To assist the SMEs to maintain standards and quality in manufactured products and to help buyers have value for their money, the government, he said, would soon launch standard weights and measures in all markets.

    Jayeoba-Alagbada said the industrial sector was receiving a boost as the state is promoting industrilisation which has attracted private industrial investment to the state with the establishment of the Omoluabi Garment Factory, which, he said, had started production.

    He said: “A Business Support Centre has been established in the state capital in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The core activities of the centre are the enhancement of the capacity of operators of Micro, Small and Medium Enterprises and entrepreneurial development of unemployed graduates and youths in general. This is sequel to the development of industrial estates across the state.”

    He revealed that the Osogbo Industrial Estate has been developed and allocated to entrepreneurs, saying the Ilesa Industrial Estate has adequate infrastructure. Plots in the estate are being allocated to industrialists while the development of industrial estates in seven other locations across the state is in the pipeline, he added.

    On the government’s assistance to the SMEs, the Commissioner said the state government, in collaboration with the Bank of Industry (BoI), under the OSSG-BoI (MSME) Fund, provides financial support to cooperatives, industrial investors and operators of MSMEs.

    He also said the industrialists have been supported with N445,878,000. Due to the importance the government places on SMEs’ clusters as a means of growth, he said the government has organised them into cooperatives.

    He said: “The people have keyed into this mode of support as 10,509 cooperative societies have registered so far.”

    Jayeoba-Alagbada, said the state government has adopted a holistic measure to ensure effective service delivery and partner private investors for power generation from waste. This is in addition to the on-going construction of an international cargo airport in Egbedore Local Government Area.

    In commerce, he said the state has embarked on massive market development; construction has reached an advanced stage on two international markets – the Ayegbaju and Aje markets in Osogbo, the state capital and Ido-osun in Egbdore Local Government Area.

    He said there were plans to establish an international market in Ikurin, the headquarters of Ifelodun Local Government Area.

    However, the Chairman, Nigeria Association of Small and Medium Enterprises (NASME), Mr Ali Alabi, said a lot still needed to be done, adding that most of his colleagues still have challenges in finance, power supply and succession.

    He urged the government to study the Chinese model of supporting SMEs which is based on the Hand Holding Concept.

    Alasbi said while in China the government makes provision for new businesses, it is not so either in Osun or the country. He called for a policy that would resustitate SMEs that have collapsed, noting that this was the only way the economy could grow. The Asian economy grew through the SMEs because of the government’s policy to support them, he added.

    Alabi maintained that the government could also learn from India where every big firm is made to nurture 10 SMEs in its catchment area until they mature.

    The NASME chief further revealed that the government policy’s in India also favours the patronage of small companies against conglomerates as they help sustain their growth by paying higher for their services and products.

    He argued that until government embarks on such deliberate policies the SMEs will continue to struggle for survival.

    Alabi canvassed capacity building for SMEs. This, he said includes learning new skills, marketing, book-keeping, management and also succession plan, noting that several small businesses have gone under because of the poor knowledge of management skills.

    Managing Director, Dusco-Designers International, Mrs Olufunmilayo Ige, a manufacturer of hand bags, shoes and jewelry from Aso-oke and Ankara fabrics, said the state government still had a lot to do in making affordable finance available for SMEs. She decried the problems she and her colleagues face to access fund.

    She said she was in need of finance to get industrial machines, but could not get it.

    Another entrepreneur and Curator of Genesis Arts Gallery, Mr Adeyinka Fabayo, also asked for financial assistance from the government to purchase some capital-intensive machines, urging the government not to leave them in limbo.

    Another entrepreneur, Mrs Iyabo Oyebamiji, who produces fabrics, also asked for funding to keep her business afloat. She said with enough capital, she and her colleagues could assist the government to create the much-needed employment for its teeming youths.

    Also, Ogun State Governor, Senator Ibukunle Amosun reiterated his commitment to create an enabling environment for trade and commerce to thrive in the state.

    Amosun, who was represented by the Deputy Governor, Prince Segun Adesegun, at the trade fair, said the administration would continue to act as a catalyst for economic activities for SMEs. He explained that the state government had put together an economic reform agenda aimed at correcting the structural weaknesses within the system and establishing an enduring framework for economic growth.

    He promised to lay a solid foundation for a vibrant, research- driven mechanised farming and technologically-induced agro-based industry goals.

    In his keynote address, the state Commissioner for Commerce and Industry, Otunba Abimbola Ashiru, said the state government had concluded plans to set up cluster farm settlements, where producers, processors and other stakeholders in the food chain would be localised in different regions of the state to ensure cost-effectiveness, accessibility, visibility and synergy.

    He said the administration was developing a relationship among ministries, departments and agencies of government towards evolving a holistic and integrated response that would guarantee sustainable progress and development.

    Akwa Ibom State Governor, Godswill Akpabio, said he has instituted sectorial linkages for the economic development of the state.

    He said at the Fair, “at present, modalities are being worked out to ensure that quality goods and services that meet International Standards Organisation (ISO) standards are produced in the state.

    “This is an assured way of making our economy vibrant and sustainable to help boost the state’s economy and also ensure favourably in the international market.”

    Akpabio, who was represented by the Commissioner for Commerce and Industry, Mr Ufot Tobby Nkangude, harped on the need to harness the economic potential of his state and the country for development.

    He said indigenous participation served as channels through which economic could be transformed to enhance the welfare of citizens.

    He encouraged the exhibitors to compare notes with others and to start doing something irrespective of the size of their businesses today noting that government is poised to support them in material ways necessary.

    The state stand had exhibitors who displayed cooking ingredients, such as ground crayfish, palm oil, groundnut oil, furniture and art works.

    Others were detergents, handmade bags with local fabrics and locally, made blending machines.

    One of the exhibitors at Akwa Ibom stand and Managing Director of Jekon Integrated Farms Nig. Ltd., Mr Godswealth Henry, producers of RIV Pam Red Palm Oil, said his outing was impressive.

    “I am happy to be at the Lagos Trade Fair. The idea of the Akwa Ibom Ministry of Commerce bringing us to participate is being achieved and we commend our state governemnt for their support to the SMEs.

    “We are into edibles, that is, adding value to farm products so that it meets international standards for export.

    “Our presence at the fair is to get investors in Lagos to be able to evaluate the acceptance of the product when we start exporting them,” he said.

  • How firms grow the economy

    Over the years, brands and their parent companies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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