The Nation Newspaper

Tag: growth

  • ‘Diversification key to economic growth’

    Director-General, Centre for Black and African Arts and Civilisation (CBAAC), Mr Ferdinand Anikwe, has urged  Nigerians to reflect on the need to diversify the economy.

    Anikwe said Nigerians needed to sit down, go through their history and take important decisions that would contribute to the growth of the  economy.

    “Nigerians are complaining of no sale and low income from the oil sector; this could be a blessing in disguise.

    “There are so many other things that we can do to improve revenue generation for the country.

    “Apart from falling back on agriculture, we can also talk about small and medium scale enterprises and small scale industries,” he said.

    According to him, more than 80 per cent of the population engage in small businesses which the contributions can be effectively maximised.

    He said the challenge of fallen oil prices is an opportunity for the country to look inwards, reflect on its history and correct past mistakes.

    “With that, we can shift away from our imperfection and face the path to progress that can engage us in meaningful agriculture production.

    “Many  countries of the world have always moved from agriculture to industry and go back again to agriculture to enriched industry,” Anikwe said.

  • Refugees’ influx’ll spur economic growth, says World Bank chief

    The influx of refugees from war-torn countries and others from poverty-stricken nations could spur the growth of the economies of the recipient nations, the President, World Bank Group, Jim Yong Kim, has said.

    Kim, who spoke while reacting to a World Bank report, said with the right set of policies, this era of demographic change could be an engine of economic growth, arguing that “if countries with ageing populations can create a path for refugees and migrants to participate in the economy, everyone benefits.  “Most of the evidence suggests that migrants will work hard and contribute more in taxes than they consume in social services.”

    The report which was released in Lima, Peru, at the ongoing meetings of the global financial bodies, stated that the world is undergoing a major population shift that will reshape economic development for decades. He said  while posing challenges, it offers a path to ending extreme poverty and shared prosperity if the right evidence-based policies are put in place nationally and internationally.

    The report, titled: ‘The Global Monitoring Report 2015/2016: Development Goals in an Era of Demographic Change,’ said the large-scale migration from poor countries to richer regions of the world will be a permanent feature of the global economy for decades to come as a result of major population shifts.

    In her contribution, the Managing Director,  International Monetary Fund (IMF), Christine Lagarde, said the demographic developments analysed in the report will pose fundamental challenges for policy-makers across the world in years ahead.

    She said: “Whether it be the implications of steadily ageing populations, the actions needed to benefit from a demographic dividend, the handling of migration flows – these issues will be at the centre of national policy debates and of the international dialogue on how best to cooperate in handling these pressures.”

    The report said the share of global population that is of working age has peaked at 66 per cent and is now on the decline. Global population growth is expected to slow to one per cent from more than two per cent in the 1960s. The share of the elderly is anticipated to almost double to 16 per cent by 2050, while the global count of children is stabilising at two billion.

    It said the direction and pace of this global demographic transition varies dramatically from country to country, with differing implications depending on where a nation stands on the spectrum of aging and economic development.

  • Harnessing ICT for growth

    Harnessing ICT for growth

    National Youth Service Corps (NYSC) members of the Information and Communication Technology (ICT) Community Development Service (CDS) group have organised a conference to equip youths with skills to make them self-reliant. PHILIPS OGBAJE (NYSC ABUJA) reports.

    In the age of innovation and technology, how can graduates tap into the opportunity offered by Information and Communication Technology (ICT) to achieve self-reliance and contribute to national development? This was the aim of the ICT Youth Initiative Conference held in Abuja last Tuesday.

    The event was organised by the National Youth Service Corps (NYSC) members of the ICT Community Development Service (CDS) group. It was held at the main auditorium of the National Universities Commission (NUC). The  theme was: Harnessing emerging technology to advance national growth.

    At the event, the chairman on the occasion and Vice President of Abuja Graduate School, Dr Joe Ikoli, decried what he called “follow-follow attitude” of the country on technology, noting that Nigeria consumes everything in technology but produces nothing in return.

    “Whenever we talk of emerging technologies, we talk of technologies of other countries driven by their national interest and agenda. What about our home-grown technology? What technology have we developed to address specific national needs?” he queried.

    He posited that the only way to reverse the trend of unproductive use of technology was for the government to rethink the nation’s technological engagement. He called on policymakers to review curriculum of higher institutions to reflect the technological needs of the country.

    In his address, CDS coordinator, Mr Ikenna Ogu, hailed NUC Executive Secretary, Prof Julius Okogie, for allowing the group to hold the conference in the commission’s premises free of charge, noting that the event was being held at the right place.

    He said CDS group was established because of the need to change the operation of the NYSC secretariat from analog to digital. According to him, the group has served as a pool from which capable and qualified hands are drawn to assist experts carrying out the operations.

    He said the conference was aimed at bringing together youths and professionals in the ICT field to encourage Corps members to take interest in the “money spinning ICT market” in Nigeria.

    In his lecture titled: The role of ICT in the Nigerian Customs Service operations, the Comptroller in charge of ICT department, Benjamin Aber, said the advent of technology had led to the improvement of pre- and post-clearing operations of the Customs, noting that complete automation of the processes had increased revenue generation for the country.

    Comptroller Aber said ICT had enabled the Customs to save cost and cut down human contact in the clearing of goods. He added that it had also led to increased pace of operations.

    In his presentation, the Acting General Manager of New Horizon, Mr Kingsley Nzewuji, advised students and Corps members to embrace ICT, saying anyone with the knowledge would be employable.

    The representative of the Permanent Secretary, Federal Ministry of Youth Development, Mr Steve Aderemi, identified research, broadband penetration and favourable government policies as major drivers of ICT development. He said the ministry was ready to partner with any youth with good ideas by providing fund to develop the innovation.

    In an interview with CAMPUSLIFE, the CDS president, Idris Bello, appreciated the guests and members of his group for making the event successful. He also praised the NUC for the support of the initiative, saying: “With the successful hosting of this conference, I have the feeling that I have used my service year to make a great impact on my colleagues and the country.”

    Isreal Amogo, a Corps member, said the conference exposed him to opportunities in ICT, thanking the organisers for the initiative. He promised to put everything he learnt into practice.

  • Yellen eases fears of slowing growth

    U.S. stocks were higher in late morning trading on Friday after Federal Reserve Chair Janet Yellen said she expects interest rates to be raised this year, easing concerns about slowing global growth and prompting a rally in bank shares.

    Nike’s surprisingly strong results in China pushed its shares up nearly 10 percent to a record high, giving the biggest boost to the Dow and the S&P.

    Data showing that the U.S. economy expanded more than previously estimated in the second quarter added to the positive tone and backed the case for a rate hike before the end of 2015.

    Yellen said on Thursday that she and other policymakers do not expect recent global economic and financial market developments to significantly affect the Fed’s policy. Nine of the 10 major S&P sectors were higher, led by the financial index’s 1.54 percent gain – its biggest in 2-1/2 weeks.

    “Yellen’s speech gave a little bit of clarity to the markets,” said Robert Pavlik, chief market strategist at Boston Private Wealth in Palm Beach Gardens, Florida.

    “That put the market in a slightly better mindset. It understands what the Fed is going to be doing because the last FOMC meeting had left people scratching their heads.”

    Federal fund futures contracts showed traders were pricing in more than a 50 percent chance of a rate hike by the end of this year.

    At 10:57 a.m. ET (1457 GMT) the Dow Jones industrial average was up 202.17 points, or 1.25 percent, at 16,403.49. The S&P 500 was up 16.79 points, or 0.87 percent, at 1,949.03 and the Nasdaq composite was up 32.02 points, or 0.68 percent, at 4,766.50.Markets have been skittish since last Thursday, when Yellen cited concerns about slowing global growth as a key reason for holding off from a much-anticipated hike. Since then, the S&P 500 had fallen about 3 percent through Thursday’s close.

    The CBOE Volatility index, known as Wall Street’s “fear gauge”, fell 6.9 percent to 21.84, but remained above its long-term average of 20.

    Data on Friday showed stronger construction and consumer spending helped U.S. gross domestic product rise at a 3.9-percent annual pace in the April-June quarter, up from the 3.7-percent pace reported last month.

    Consumer sentiment rose to 87.2 in September, better than the median forecast of 86.7.

    Nike jumped 9.6 percent to a record high of $125.82 after its quarterly profit topped expectations on strong growth in China.

    Bank of America, JPMorgan, Citigroup and Wells Fargo were up between 2.0 percent and 2.6 percent.

    Apple was up 0.5 percent at $115.61 as its new iPhones went on sale on Friday.

    Pier 1 Imports slumped 19.2 percent to a 5-year low of $7 after the home decor and furniture importer’s results missed expectations.

    Advancing issues outnumbered decliners on the NYSE by 1,893 to 977. On the Nasdaq, 1,384 issues rose and 1,263 fell.

    The S&P 500 recorded four new 52-week highs and three new lows, while the Nasdaq recorded 36 new highs and 65 new lows.

     

  • ‘Improved shrimp production vital to growth’

    Increased shrimp production is vital to the economy, Prof Martins Antekhai, has said.

    Antekhai of the Department of Fisheries, Lagos State University (LASU), said investors could explore investment opportunities in small, medium scale shrimp aquaculture to meet an anticipated shortfall in seafood supply.

    He said there’s a huge business opportunity in shrimp production to fill the growing supply-demand gap in the face of rapidly expanding demand.

    The shrimp production supply chain provides opportunities for small farmers, cultivating companies, input and feed providers, processors, transporters and marketers.

    Investors, according to him, can explore intensified farming methods with industrialised processes to seek profits.

    Antekhai said there was  the need for Nigerians to get involved in shrimp production to benefit from the global shrimp exports market being explored by leading producers,  such as Colombia, Cuba, Dominican Republic, Ecuador, Mexico and Nicaragua.

    With $5 million, he said investors could made good returns. The international price of a freshwater prawn stands at $380 while a large fresh tiger shrimp sells for $975 per kilogramme.

    The model farm costs $4.7 million to build, including the hatchery and a processing facility.

    Initial investments involve building ponds, irrigation system, processing plant, cold storage, feed mills, hatchery, pumping station, farm stores, warehouse and waste water treatment.

    He said the produce would be processed and exported abroad.

    He noted, however, there were challenges for producers, following increasing demands from international consumer for better food safety standards and traceability.

    Poor infrastructure, he noted, also has made it difficult for Nigeria to improve domestic and global shrimp production volume.

    According to experts, shrimp is the most valuable fisheries commodity in the world, accounting for about 15 per cent of the total value of internationally traded fisheries products.

  • ITF, NIPC to promote women, youth entrepreneurship growth

    ITF, NIPC to promote women, youth entrepreneurship growth

    The Industrial Training Fund (ITF) and the Nigeria Investment Promotion Council, (NIPC) are to sign a Memorandum of Understanding that would facilitate the training and development of women and youth entrepreneurs.

    ITF is also set to host the first-ever National Skills Summit to revive the manpower sector and change the face of training, skills development, job creation and entrepreneurship in Nigeria.

    ITF Director-General/Chief Executive Officer, Dr.  Juliet Chukkas-Onaeko, made this known while receiving the Executive Secretary of the Nigerian Investment Promotion Council, (NIPC), Mrs. Uju Hassan-Baba, in her office in Abuja.

    Mrs. Chukkas-Onaeko  said  the agency was mindful of President Muhammadu Buhari’s disposition towards youth empowerment and job creation to address unemployment, pointing out that  ITF has realigned some of its activities to enable it drive change in that direction.

    She said capacity building for women entrepreneurs is one of ITF’s areas of focus, noting that the fund would also continue to train women and youths in book keeping, business decision making and identification of markets for products.

    Pledging to broaden the synergy for manpower development, particularly in the non-oil sectors, Mrs Chukkas-Onaeko and Hassan-Bada noted that the collaboration was critical to effective local skills acquisition and manpower development for driving diversification.

    According to Mrs Chukkas-Onaeko, ITF is shifting focus from dependence on oil.

    She said with its abundant manpower deposits, Nigeria could become one of the most industrialised nations in the world.

    ITF, she said, has raised a business training team that can handle the training of women and youth entrepreneurs. ITF, she said, has over 1,000 trainers that provide services in basically all sectors of the economy.

    Mrs Chukkas-Onaeko stressed the need for local skill development in other sectors of the economy that are of comparative advantage to the country.

    Empowering women, she said, was critical to ITF’s agenda as well, adding that both agencies have agreed to collaborate on capacity development for women entrepreneurs along the agricultural value chain.

  • Sanusi urges Fed Govt on infrastructure growth

    Sanusi urges Fed Govt on infrastructure growth

    Former Central Bank Governor, and Emir of Kano, Sanusi Mohammed 11,  has advised the Federal Government to adopt a holistic approach in resolving infrastructural problems in order to move the country forward.

    He said infrastructural development should not be limited to road construction, but extended to other sectors, such as health and education to achieve meaningful socio-economic growth.

    Sanusi, in a statement  while giving his approval to the forthcoming 2015 Nigeria Infrastructure Public Private Partnership Summit  billed to hold in the last quarter of this year, said the development of social infrastructure, especially health and education is critical to the wellbeing of the people.

    In the statement entitled: ‘Emir of Kano, Sanusi Mohammed 11 Welcomes Focus on Social Infrastructure at the forthcoming Infrastructure Private Public Partnership (PPP) Summit,’  said  this during a visit to his palace in Kano, by the Summit Planning Team headed by A. B. Mahmoud, a Senior Advocate of Nigeria (SAN).

    He said the non-implementation of several recommendations from previous successful Summits by past Governments, has affected infrastructural developments in Nigeria, urging the team to ensure that the summit provides solution to  problems relating to infrastructural gaps among others,  besetting the growth of the country.

    His words: “I understand the critical role infrastructure plays in developing our economy, and in particular, the need for Nigeria to address the key social infrastructure deficit particularly in education and health that will deliver a better quality of life not just for the elite, but for those in society for whom access to one thousand naira could make the difference between losing a child and obtaining the medication and treatment that could save a child’s life”.

    In his response, the leader of the delegation, Mahmoud, said the summit would put in place a roadmap that would make government at all levels work together to develop critical infrastructure through public private partnerships.

    Also, Gori Olusina Daniel, partner and Africa Regional Director at Adams & Moore, said the summit would focus on four critical sectors– Power, Health, Transport and Education, in order to align with the Federal Government’s development priorities.

    Olusina, also a member of the delegation, said: “This summit is about charting the way forward in four critical sectors and establishing a private sector led Community of Practice, working in collaboration with government across all levels that will ensure the successful implementation of these roadmaps”.

  • GE refurbishes subsea ‘Christmas trees’ for growth

    General Electric (GE) has embarked on the refurbishment of its Subsea Christmas Trees,  to boost its operation.

    Subsea Christmas tree is an assembly of valves, spools, and fittings used for oil, gas wells, water injection well, condensate well, among others, in the oil and gas industry.

    Basically, the tree is used for petroleum and natural gas extraction, and its refurbishment by GE will reposition the firm for increased operation.

    The Chief Operating Officer, General Electric, West Africa, Uzochi Nwagwu, said the trees were being refurbished in line with his company’s growth plans of winning more customers by leveraging on opportunities in the industry.

    He said domestic and international oil firms would from time to time, explore for oil in the industry, adding that GE is preparing itself to meet their needs.

    According to him, GE offers services to Exxon Mobil, Agip, Shell Nigeria Exploration and Production Company (SNEPCo) and others, adding that the refurbishment would help GE win the operators’ confidence at both the on-shore and off-shore segments of the oil and gas sector.

    The operators, he said,  are happy with GE’s decision  to refurbish Subsea Christmas trees, adding that the development will impact positively on the operation of the company.

    The trees’ lifespan, according tohim, is between 15 and 20 years, noting that some components of the trees age at some point and need to be removed and replaced to meet the yearnings of oil and gas exploration companies.

    He said: “GE selected a number of its trees for refurbishment because they are incapable of meeting the growing needs of existing and prospective operators. At our (General Electric) facility at  Onne, Rivers State, what we do now is that we  select old trees, remove worn out parts and reshape them to perform optimally.

    “This idea is necessary in order to keep in tune with developments in the global oil and gas industry. As the industry keeps growing, pressure keeps on piling up for operators, who in their own estimation, desire quality services to survive in the industry. By refurbishing the trees, GE is expanding the life cycle of the trees, while at the same, trying to get a sizeable chunk of the oil and gas market. A lot of activities are coming up in offshore and deep offshore, and GE, like any other companies, would like to take advantage of that for growth.”

    Nwagwu, who oversees GE’s oil and gas department, said the refurbished trees were in Bonga field, where the company offers services to Shell.

    He said the cost of refurbishing Subsea Christmas trees varies because they have different problems. According to him, the company would be manufacturing components of Subsea Christmas tree in its facility in Calabar, Cross River State soon.

    The development, Nwagwu said, would afford the company of opportunities of owning  more trees, get more customers and grow its revenue.

  • Weak UK construction data adds to signs of cooling growth

    The amount of new housing built in Britain fell for the first time in more than two years in July, despite rising house prices, driving a broader decline in construction that adds to signs that the country’s economy is slowing.

    The official figures on Friday contrast with bumper profits reported by house-builders and follow weak manufacturing figures which have raised questions about whether growth is cooling as the Bank of England comes nearer to raising interest rates.

    House-building in July was 2.5 percent lower than a year earlier, the first fall since March 2013, and the slowdown looks set to continue with the volume of orders for new housing at its lowest since early 2013.

    Private commercial work, such as building shops and offices, also fell, and overall construction output in July was down by 0.7 percent on the year, the first fall since May 2013 and bucking economists’ expectations for a 0.6 percent rise.

    “This indicator continues the theme of disappointing data for Q3, which includes weaker (purchasing managers’) surveys, disappointing industrial production and tentative evidence that retail sales were soggy,” said Alan Clarke, head of European fixed income strategy at Scotiabank.

    Britain’s economy has been growing rapidly over the past couple of years, chalking up an above-average 0.7 percent expansion in the three months to June, but most economists expect a modest slowdown in the third quarter of 2015.

    At the same time, Bank of England Governor Mark Carney has said that the decision over when to raise interest rates for the first time since 2007 is likely to come into sharper focus around the turn of the year.

    A survey published by the BoE on Friday showed that nearly half of Britons expect interest rates to rise in the next 12 months, the highest proportion since May 2011.

    Some BoE policymakers worry that even though inflation is near zero at the moment, it could rebound rapidly due to limited spare capacity in the British economy, pushing annual price growth above its 2 percent target in the next couple of years.

    Following the construction data, one industry expert blamed restrictive immigration rules for making it hard to attract skilled building workers from outside the European Union.

    “There is a chronic housing shortage and although we welcome government plans to build 200,000 new homes by 2020, there is no chance of that number being built unless desperate skills shortages in the industry are addressed,” said Michael Thirkettle, chief executive at consultants McBains Cooper.

    The Royal Institution of Chartered Surveyors forecast on Thursday that house prices would rise 6 percent this year, twice its previous estimate, largely due to a lack of housing.

    The weak ONS data contrasts with a more upbeat picture painted by industry surveys and results from housebuilders — both of which reflect the performance of larger players in the industry than the ONS survey, which covers more small firms.

    A series of British housebuilders have posted large profit rises in recent months with the largest builder by volume, Barratt, saying on Wednesday that it had seen a strong start to the new financial year with a 32 percent rise in forward sales.

     

  • Gabon is top sub-Saharan African country in retail growth

    Gabon is the most attractive sub-Saharan African country for international retailers to target due to strong economic growth and a stable middle class, according to A.T. Kearney’s African Retail Development Index.

    The study, which evaluated 48 countries in the region, ranked Gabon ahead of Botswana, Angola and Nigeria, Africa’s biggest economy and most populous country.

    The index, published by the United States (US) consultancy, is compiled based on size of the urban population, business efficiency and risk of investment.

    “Scale will come to sub-Saharan Africa only when a few things happen, particularly the development of a shopping culture,” A.T. Kearney consultants including Mike Moriarty and Jaco Prinsloo said in the report. “The first priority in most markets is for basics and dry goods, but over time fresh supply chains and modern shopping space will be increasingly needed.”

    South African retailers including Shoprite Holdings Ltd., Woolworths Holdings Ltd and Pick n Pay Stores Ltd. are expanding on the continent to take advantage of higher economic growth rates than in their home market and rising household incomes.

    U.S. chain Wal-Mart Stores Inc is also adding new stores in sub-Saharan Africa through its Johannesburg-based, Massmart Holdings Ltd. None of the four chains have entered Gabon.