The Nation Newspaper

Tag: growth

  • Olanipekun seeks growth of Ikere community

    Former President of Nigerian Bar Association (NBA) Chief Wole Olanipekun has called on indigenes of Ikere Ekiti in Ekiti State to assist in developing the community.

    He made the call on Saturday while inaugurating an ultramodern administrative building constructed at the palace of the Ogoga by an oil magnate, who is also an indigene of the town, Otunba Sola Adewumi and his wife, Oluwakemi.

    The legal luminary called on Ikere indigenes to avoid acts capable of breeding disunity and crisis in the state. He also called on them to give an unflinching support to the town’s traditional ruler, the Ogoga, Oba Samuel Adejimi Adu Alagbado.

    “I want to plead with you all in Ikere, we should desist from any act of disunity. Oba Adejimi Adu is our king in Ikere. Look at positive things that have been happening since his enthronement and this is an indication that Ikere is moving forward,” Olanipekun said.

    Olanipekun said the gesture of Adewumi was worthy of commendation, noting that the donor had earlier built and donated a non-profit event centre in the town and also building a hotel to create job opportunities for the indigenes.

    The senior lawyer revealed that he had just secured a licence to establish a radio station in Ikere to contribute his own quota to the development of his birthplace.

    Adewumi, the chairman/chief executive of Equatorial Energy, revealed that facilities in the building include offices for the monarch, his wife, their secretaries and a hall that can seat about 150 people at a time, among others.

    The Ogoga urged his subjects to always seek the good of Ikere and contribute to its growth

    He praised Olanipekun for his impact in rallying indigenes for the community’s progress.

  • Akiolu: councils’ funds seizure affected Lagos growth

    Akiolu: councils’ funds seizure affected Lagos growth

    Oba Riliwanu Akiolu of Lagos has said the seizure of Local Government funds by former President Olusegun Obasanjo’s administration contributed to the slow pace of the state’s development.

    Akiolu spoke at an inaugural lecture, which is part of activities for the Lagos State at 50 Anniversary in Lagos.

    The Obasanjo-led administration withheld Lagos state local government funds, following the creation of 37 new local council development areas (LCDAs) under former Governor Bola Tinubu.

    The state’s refusal to cancel the LCDAs as directed by the Federal Government led to the withholding of funds meant for the 20 existing local governments.

    Akiolu said Tinubu, with all his development plans would have done much for the state, but for the seizure of the allocation.

    According to the monarch, Lagos state would have been far developed by now.

    “Senator Bola Tinubu came with robust development plans for Lagos State, but he could not do so much because of the seizure of local governments’ funds. But he laid the foundation upon which his successors had been building.

    “The state was blessed with Governor Babatunde Fashola, and now, Governor Akinwunmi Ambode. These governors have taken Lagos to an enviable height with unassailable internally generated revenue,” he said.

    Akiolu urged political office holders to be sincere and honest in all their dealings.

    He also urged residents to support the government as it strives to develop the state and make life comfortable for them.

  • May & Baker outlines new strategic plan to sustain growth

    May & Baker outlines new strategic plan to sustain growth

    • Shareholders applaud 20% dividend increase

    May & Baker Nigeria Plc plans to expand into new business areas as it seeks new opportunities that will add value to its performance while sustaining the growth of existing businesses and investments.

    At the annual general meeting at Muson Centre, Onikan, Lagos yesterday, chairman, May & Baker Nigeria Plc, Lt. Gen. Theophilus Danjuma (rtd), told shareholders that the company was set to break new grounds and enhance the value of their investments.

    According to him, with its existing businesses showing resilience and the continuing operational efficiency of its World Health Organisation (WHO)-certified pharmaceutical complex in Ota, Ogun State, May & Baker is shifting focus to acquire new competences and expand its business into new profitable ventures.

    “In the years ahead, our plan is to acquire necessary competences in new business areas and seek opportunities that will add value to our investments. At the same time we shall continue to leverage our installed capacity at the pharmaceutical facility in Ota, energise the food and beverages businesses by promoting existing brands and introducing new ones.  May & Baker has a great pedigree but the future is even more alluring as we make new strides and break new grounds,” Danjuma said.

    He explained that the company had delayed its capital raising in order not only to extract the greatest value for the existing shareholders that had toiled to build the company but also to ensure that new equity investments are in line with the strategic vision of future expansion and technical competences. It should be recalled that shareholders had in 2014 empowered the company to raise N3.2 billion new equity capital.

    He said the board had in the interest of all the shareholders decided not just to go for financial investments, but more importantly to look for investors that can, in addition, offer technology that will help the company to better leverage its Pharmacentre investment.

    “This way we shall secure both funding and technology competencies to delve into new areas,” Danjuma said.

    He said the company has restarted discussions with the President Muhammadu Buhari government on the joint venture business for local vaccine production and the signals from the discussions indicate that government is positive on the local production and the revised joint venture agreement will soon be ratified by the Federal Executive Council.

    “We have absolute confidence in this project and that explains why we have not given up on it through these many years of delay. The need to produce vaccine in Nigeria has become even more imperative because the major foreign donor agency for vaccine, Global Alliance for Vaccines and Immunizations (GAVI) has indicated its desire to withdraw sponsorship by 2022. This leaves local vaccine production as the only sustainable avenue to keep our population secure from immunizable diseases,” Danjuma said.

    He noted that the performance of the company in 2015, in spite of the challenges in the economy, showed that it has continued to be resilient and focused on creating values for shareholders.

    The audited financial statement shows that sales grew by 7.8 per cent while increased cost efficiency and internal control boosted pre-tax profit by 41 per cent.  Turnover rose from N7.02 billion in 2014 to N7.57 billion in 2015. Operating expenses reduced by 11 per cent, while distribution, sales and marketing expenses remained flat at 2014 level.   Administrative expenses also reduced by 8.4 per cent from N641.33 million in 2014 to N587.3 million in 2015. Finance charges which has remained a major headache of the company is gradually also being contained. Cost of funding the business was thus reduced by 2.6 per cent from N603.87 million in 2014 to N588.18 in 2015. With this level of operational efficiency, profit before tax grew from N101.2 million in 2014 to N142.4 million in 2015. However, due to significant increase in  total tax burden to N74 million,  the  growth in after tax profit  was slowed to  7.41 per cent,  from N63.34 million in 2014  to N68.03 million in 2015.

  • Berger Paints promises growth as forex scarcity reduces Q1 profits

    Berger Paints promises growth as forex scarcity reduces Q1 profits

    Berger Paints Nigeria Plc has promised their shareholders improved returns on their investments by the end of the year despite the drop in their financial performance for the first quarter (Q1) ended March 31, 2016 to foreign exchange scarcity (FX).

    The Premier paints company in Nigeria said it is hopeful of increased profitability by leveraging on its soon to be commissioned first automated paint manufacturing plant in Sub-Sahara Africa that would reduce production costs, reduce response times, improve their product quality and make them compete favourably with imported brands.

    The Managing Director and Chief Executive Officer, Berger Paints, Mr. Peter Folikwe disclosed this to stockbrokers at the presentations of the company’s facts behind the figures on the floor of Nigerian Stock Exchange in Lagos.

    Folikwe said though revenue increased by Eight per cent (N54m) from N706 Million in Q1 2015 to N760 Million in Q1 2016, Operating Profit fell 72 per cent (N79m) from N109 million in Q1 2015 to N31 million in Q1 2016.

    He said the decline was as a result of; “margin drop largely as a result of increase in raw material prices, scarcity of foreign exchange as we have to largely resort to local sourcing of raw materials at exorbitant price and the general lull in economic activities due to the delay in passage of 2016 budget”.

    For the second quarter 2016 financial forecast, he said they are targeting N1.014 billion revenue and profit after tax of N111 million.

    The Chairman,Berger Paints, Dr Oladimeji Alo said despite the first quarter result, the company intends to reclaim its first position in the market through aggressive drive and investments in their leading brands, increase in  marketing activities to gain visibility and renewed evolvement of their route to market capabilities to drive aggressive sales.

  • NGA launches study groups to boost gas growth

    To facilitate gas optimisation, the executive council of the Nigerian Gas Association (NGA) has inaugurated five study groups to lead research and explore viable methods to exploiting the vast and untapped gas resources for domestic utilisation.

    NGA President Bolaji Osunsanya said: “I am excited by the calibre and experience of the volunteers involved, and the vibrant enthusiasm they’ve shown for the task at hand. The rejuvenation of the study groups encourages the self-development of our members, and establishes the groups as focal engagement points and drivers of the NGA’s pertinent objectives. More importantly, the key findings collated will significantly enhance the association’s advocacy capacity, and enable us better synergise with the government and other important institutions to promote the best technical, regulatory, and contractual practices.”

    NGA’s 1st Vice President and overseer of the study groups, Dada Thomas said: “The fact-based research and key position papers provided by the study groups will play a crucial part in advancing the NGA’s four cardinal value propositions of anticipating and driving legislation and policies; positioning the association as the data and knowledge resource centre of choice within the industry; encouraging best practices and acceptable standards; and promoting viable investments within the Nigerian gas sector. The executive council is committed to the prevailing success of the groups, and will ensure adequate support is constantly provided.”

    The study groups are Natural Gas Transmission and Distribution chaired by Mr. James Odiase, Senior Manager, Commercial Gas, Seven Exploration & Production Limited; Industrial Utilization and Power Generation, chaired by Mrs. Yetunde Taiwo, Managing Director,                Seplat Gas, a subsidiary of Seplat Petroleum Development Company Plc; Domestic, Commercial and Transportation, chaired by Mr. Emeka Ene, Managing Director                Oildata Energy Group; Environment, Safety and Health, chaired by Mr. Toyin Adenuga, Managing Director, Shell Gas Nigeria Limited; and Legal and  Fiscal, Mr. Ike Oguine, Chief Consultant, Advisory Legal Consultants

  • SEYI BABATOPE: BoI LOAN IS A RESPONSIBILITY FOR GROWTH

    SEYI BABATOPE: BoI LOAN IS A RESPONSIBILITY FOR GROWTH

    Director of ‘When Love Happens’, Seyi Babatope is taking another shot at the success of his movie, with the sequel, ‘When Love Happens Again’, courtesy of Bank of Industry’s NollyFund loan scheme. He tells VICTOR AKANDE of the need to explore the theme once again…

    WHAT informed a sequel your film, When Love Happens?

    The idea is to strategically grow an aspect of the industry organically by enhancing a talent demographic. W ith this film, we shot in Lagos and Washington DC.

    What is different in the cast and crew?

    Some of the original cast have returned with some new additions.

    Is it a direct continuation or some sort of retelling?

    It’s a completely different story from the first film. Here we meet some of the established characters at another point in their lives and the film picks up from there. It is still a romantic comedy and light fun.

    So what’s the strategy in holding on to the same title?

    Holding on the franchise name is important because of the growth I mentioned earlier. Nigerian audiences must be assured that they are getting value. And when you see the film, the name does fit. I felt that in our cinematic landscape in Nigeria, respecting the audience is important and giving them something to look forward to will show that filmmakers don’t take their patronage for granted.

    Would you say the returns from the previous film is what makes the funding of the sequel possible?

    BOI (Bank of Industry) is absolutely responsible for this film. They are making a big push to grow the industry. The few of us that have been able to access the facility must treat the access as a responsibility that can propel us to the heights we aspire to; industry and individually.

    How much was your loan and how would this impact on this production differently. Plus, would you say this one is a big budget movie compared to the previous?

    The loan ranges for each production. I don’t believe our industry can afford to do large films yet, my films don’t exceed a certain number. My personal ingenuity is what is most valuable in the budget because there is no line item for it. I have not made a film more than $100,000 at the old exchange rate. I’m not going to start now.

    Which of the NollyFund approved studios is handling this work?

    Afrinolly, without their understanding of my vision, I would have been lost in the Wilderness of bureaucracy – immensely progressive and partners in this film.

    So who among the cast is returning, and who are the new guys?

    Weruche, Oreka and Eyinna return, while the new cast members include Funnybone, Jimmy Akinsola, Diana Yekinni, to name a few.

    Why Funnybone, if I may ask?

    He is such a pure amazing talent, his skill on set goes beyond his day job as a stand-up comedian. The most importantly is, he represents the type of multi disciplinary talent our country and industry type casts into a hole. I am more than glad he is in the film.

    How much did the previous gross in the cinema or how else would you choose to rate it’s performance?

    Great question, we opened in four countries and the measure of the success of a film can be measured more than its receipt. The first film didn’t have any house hold names in it that is considered sexy. And it was considered as a film whose classification was non-linear vis-a-vis Ikoyi film or masses film. We have been able to pay our bills and made our cost back. Netflix just picked us up as well. We made more than 30m in Nigeria alone.

    Great! What stage is the current production and when will it be ready for the market?

    We just finished last week, it will be ready later in the year.

    What development(s) would you say has/have happened to the Nigerian distribution platforms which you believe might help your returns on this new project, even better than the previous?

    Distributors are building more sites, which theoretically should bode better for filmmakers. The trust of the audience is the most important aspect I believe. For every one good Nigerian film they see, there is more to discourage them from trusting the Nigerian film. Once that can be overcome it should be better for all.

  • ‘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.

  • Mentoring key to pharmacy growth, says ex-minister

    Pharmacists have underscored the importance of youth mentorship to the profession’s development.

    According to the President, Nigeria Academy of Pharmacy Prince Julius Adelusi-Adeluyi, any profession, which does not take care of its younger generation has no future.

    He spoke at the inauguration of the Academy’s Young Pharmacists Mentoring Programme tagged: The Next generation pharmacist: Poise, pizzazz and panache.

    The future of pharmacy, he said, would be given to the younger generations that dare to do things differently.

    According to him, a lot of people think mentoring was about watching television and wishing to be like those they see. This, he said, is not mentoring.

    He urged elders of pharmacy profession to pass down their experience to the younger generation because the future belongs to them.

    Mentoring, he said, will help to develop young talents and re-position the pharmacy profession.

    He urged young pharmacists to strive for excellence because ‘nobody will like to mentor a failure that does not have an aim’.

    He urged pharmacists help one another because nobody can promote their profession than them.

    The former Health Minister asked: “I look at the history of the Ministry of Health, there has been no pharmacist as the Minister of Health except me. Is it a sin to have another person at the saddle?”

    He urged young pharmacist to open their mind to opportunities and dare to do things differently.

    President, Pharmaceutical Society of Nigeria (PSN), Mr Ahmed Yakassai said education goes beyond the classroom, adding that young pharmacists should be ready to learn from experienced people.

    He said: “Young pharmacists can imbibe the knowledge gained from the doyen of the profession,” adding that the mentoring programme will help young pharmacists think about the patient. He stressed that it will help people to understand that pharmacists are thinking about safety, medication therapy “and being an essential member of the healthcare team.

    “They will be able to practice with courage, knowledge and experience from what they have learnt,”he said.

    According to him, the academy,  was considering empowering young pharmacists, adding that young pharmacists should use the social media positively.

    The gubernatorial candidate for the Peoples Democratic Party (PDP) in Lagos State, Mr Jimi Agbaje said mentoring has become a way of bringing up the younger ones and is not limited to pharmacy.

    The profession, he said, is trying to formalise mentoring in a way that is better organised for the younger pharmacists.

    “We are trying to get them involved in a way that they will add value to the profession and themselves,” he said.

    He urged the society to appreciate the role of the pharmacists because they are professionals in their own right. “It is not about competition in the health sector, the roles are clearly defined. If everybody is practicing those roles properly then the roles of each profession will be better appreciated,” he said.

  • ‘Africa’s growth outlook good but……’

    Growth in Africa is expected to average over four per cent over the next five years, but is still heavily commodity-dependent, according to a report by the Institute of Chartered Accountants in England and Wales (ICAEW).

    The Institute in its report, ‘Economic insight: Africa Q1 2016’, pointed to good news for African economies, but warned that manufacturing still accounts for a small share of output.

    The accountancy and finance body in the report made available to The Nation, however, said the old model of exporting raw materials is becoming unsustainable.

    The report noted that Africa’s Gross Domestic Product (GDP) growth is projected to average 4.3 per cent between 2015 and 2020. Nigeria, the largest economy on the continent, is expected to contribute significantly to Africa’s economic expansion – at an average real rate of 4.8 per cent per year between 2015 and 2020, contributing over 25 per cent to the continent’s forecast growth in this timeframe.The report said in the East Africa region, Kenya’s economy would expand by around six per cent during the 2017 to 2020 period.

    It attributed this to Kenya’s relatively diversified economy and comparatively low commodity dependence, which bonds well with the country’s economic growth outlook. Regional Director, ICAEW Middle East, Africa and South Asia, Michael Armstrong said: “Africa is the most commodity-dependent continent on earth. Africa’s economies increasingly need to create a hospitable environment for companies in the manufacturing and services sectors to drive growth, as the old model of growth driven by exports of raw materials is out-dated.”

    Armstrong added that the East African region is embracing the use of renewable energy to leapfrog older power generation technologies, while also reducing the need to extend the national energy grid to remote villages.

    The report noted, for instance, that Kenya is ranked the seventh highest producer of geothermal power globally after it recently unveiled the second phase of the Olkaria geothermal plant.

    Olkaria is the biggest single- turbine geothermal plant in the world. However, Kenya continues to face its own unique challenges. The report said the country’s unwarrantable fiscal situation is the primary reason why both Standard & Poor’s and Fitch Ratings downgraded the country’s outlook from stable to negative last year.

    However, the report also pointed out that the Kenyan Government has taken important steps towards fiscal consolidation by preparing a supplementary budget that plans to reduce both development and recurrent public spending in the current fiscal year.

    Tom Rogers, Associate Director, Macro Consulting at Oxford Economics, said: “A clear plan for preventing fiscal slippage will be needed to underpin confidence in public finances and economic stability. The government’s recognition of these economic concerns will be needed to address these issues and instil some confidence in the country’s economic outlook.”

  • ‘Poor health care infrastructure hinders economic growth’

    Kwara State Governor Abdulfatah Ahmed has urged stakeholders to address the health care infrastructure deficit.

    The governor, who spoke when the Deputy Ambassador of Netherlands, Mitchel Decleen, led a team of PharmAccess and Hygenia on a visit to him at Ilorin, at the weekend, said efforts were needed to ameliorate the situation.

    He stressed that the Community Health Insurance Scheme (CHIS) of the state, in partnership with Netherlands, PharmAccess and Hygenia, was a positive development.

    Ahmed said the scheme would soon cover the 16 councils as part of “this administration’s resolve to give the people access to health care.”

    He said a funding formula to be self-generating would be initiated to ensure the scheme was sustained after the exit of the partners.

    The governor hoped the partnership that made the CHIS a success would be sustained.

    Decleen said the team was in the state to examine the funding strategies.