Tag: growth

  • Small business growth and our declining possibilities

    Entrepreneurship is not a subject you find in the curriculum growing up in Nigeria. Nevertheless, it is an inextricable part of our lives. We all know entrepreneurs. We know that akara or boli seller whose child’s education was financed through their sweat and hard work. We know that family member who couldn’t get a job and had to start a business. We know the laundry man, the tailor, the driver, and carpenter, the welder and plumber, everyday Nigerians, most of them without a business school certificate, surmounting incredible odds to build businesses from the ground up. The truth is, no nation has achieved sustainable economic growth without entrepreneurs willing to convert ideas into businesses that create jobs and raise productivity. The battle is fought and won at the level of government’s ability to create an enabling environment that encourages more people to innovate and take risks. And this has been one of Nigeria’s challenges, a socio-political problem rooted in history.

    Historically, ‘doing business’ in early postcolonial Nigeria, largely, was something you did when you were not ‘good enough’ for white collar jobs. Or something your financial circumstances forced you into. And when money wasn’t an issue, it was a glorified hobby to keep you busy. In fact, universities were wired to prepare you for a white collar existence and parents were there to keep you on prevailing career paths. You were either a lawyer, doctor, accountant, engineer or rebel. But the widespread failure of state capitalism across Africa – where government efforts to predominantly provide jobs and control the market started to prove inadequate – began to pave the way for the slow rise of an entrepreneurial class in the mid to late 80s. Today, we are beyond the cusp of what Peter Drucker called the entrepreneurial society, with technology making entrepreneurship a normal and steady reality. And what is also important to see, is that the bulk of what is happening in the current climate is being driven by young people.

    All across the county technology is enabling young Nigerians look beyond traditional career paths and the golden dream of working in an oil company or in a multinational. Hopeful and exciting as this picture is, there is a counterfoil of reality that reveals millions of young Nigerians on the fringes, unemployed, drifting, and portentous. What they represent, however, through the lens of calculated optimism, is an opportunity to turn around the economic fortunes of Nigeria, one that can only be seized with the right investments in education, in skill acquisition, and in creating opportunities and enabling environments for ideas and new businesses to flourish. This of course will require deliberate state intervention. Something along the lines of the National Social Investment Programme and the Job Creation Unit’s N-Power program, an initiative that is amongst other things, connecting businesses to new markets, bridging skill gaps and creating new enterprises.

    N-Power addresses the challenge of youth unemployment by providing a structure for large scale and relevant work skills acquisition and development while linking its core outcomes to fixing inadequate public services and stimulating the larger economy. The modular programmes under the initiative ensures that each participant will learn and practice most of what is necessary to find or create work. The N-Power Volunteer Corp involves a massive deployment of 500,000 trained graduates who will assist to improve the inadequacies in our public services in education, agriculture, health and finance (tax). The intervention is yielding fruit. Beneficiaries are adapting skill and some of them are starting new enterprises.

    Ugwunna Chukwuemeka Charles always wanted to be a farmer. Like most young Nigerians, he went to the university, earned a degree, and landed a job far outside the realm of his dream. Working with a private firm in Umuahia that drew too much sweat, delivered little knowledge and far less remuneration, Ugwunna’s aspirations were subjected to the more pressing demands of survival, until N-Power. Applying for the programme’s N-Agro initiative, Ugwunna took a step into an opportunity that opened new possibilities in agriculture, one that married professional training, funding options and community service. With N-Power’s technology driven approach to skill acquisition, Ugwunna was able to leapfrog from idle passion to professional farming. Today, he works as one of N-Power’s Agricultural Extension Officers, providing knowledge to local farmers, helping them improve their output and grow their businesses. In 2017, he started one of the fastest growing fish farms in Abia State, transitioning from a frustrated under-employed graduate who was barely able to make ends meet, to fulfilling his potential. In the orbit of Ugwunna’s evolving success story are numerous beneficiaries – dependents supported by his increasing income, employees and their own dependents, local farmers and the larger community are testaments to how far effective policy initiatives like N-Power can go in writing new narratives.

    It is true that the Nigerian government, for decades, has not fared very well in crafting policies that enable entrepreneurs, particularly with the development of public infrastructure and access to finance. But an initiative like N-Power can form part of a redemptive process as it continues to arm young Nigerians with the skills and access they need to create businesses and create jobs. The initiative is empowering about 20,000 participants with skills in software development and hardware repair. It is providing technical training in carpentry and joinery, welding and fabrication, plumbing and pipefitting, automobiles, masonry, electrical works, painting and interior decorating, and connecting beneficiaries to markets. So far over 230 small business have also been indirect beneficiaries of the programme, with over 20,000 additional jobs created to support it. There is something here that can be bigger and better given greater attention and commitment.

    That Nigerians have an entrepreneurial bent has now become a cliché, but it is true. And what this truth needs to enable Nigeria extricate itself from the persisting economic and social woes, is the commitment of government to expanding the range of opportunities available to its bearers of ideas. According to the Nigeria Bureau of Statistics, small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP in the last five years. Imagine how much more we can create by empowering effective initiatives like N-Power. Softcom, a wholly Nigerian owned technology company, is one of the private partners the government is working with in the execution of the N-Power programme, and the company’s proven capacity to seamlessly manage a project of such scale, is a further testimony of what young Nigerians can achieve given the right tools. The truth is, getting young Nigerians to hone their skills into viable businesses is a prerequisite for reducing unemployment and poverty. And N-Power’s skill acquisition drive and internship model is headed in the right direction.

     

    • Akinseye, writes from Lagos.

     

  • How to foster national unity, growth, by Sultan, Tambuwal, Ajibola, others

    EMINENT Nigerians, including the Sultan of Sokoto, Muhammad Sa’ad Abubakar, Sokoto State Governor Aminu Tambuwal, former Justice Minister Bola Ajibola (SAN) and ex-National Commissioner for Insurance Oladipo Bailey, have argued that it was difficult for the nation to attain its full potential in the face of growing insecurity and widening division among the ethnic nationalities.

    To them, the nation’s quest for growth and economic prosperity was only realisable in a secure, peaceful and united environment, devoid of unnecessary rancour.

    The Sultan of Sokoto, Tambuwal, Ajibola Bailey, a scholar, Dr. Mahmud Saidu and Assistant Inspector General of Police, Mauzu Hadeija (retd) spoke in Abuja on Saturday at a one-day lecture and award of patron/matron and honorary fellows.

    It was put together by the Chartered Institute of Loan and Risk Management of Nigeria (CILRMN) and The Defender online media.

    Those conferred with the institute’s awards are the Sultan of Sokoto, President Muhammadu Buhari’s wife Aisha; Inspector General (IG) Ibrahim Idris; former Communication Minister Maj.-Gen. Tajudeen Olanrewaju and a cleric, Primate Elijah Babatunde Ayodele.

    The lecture held under the theme: “Towards national integration and economic development of Nigeria: The online media and risk management approach”.

    The Sultan of Sokoto, who was represented by the Emir of Keffi, Shehu Chindo Yamusa (III), urged the media to always be guided by the tenets of the professions and endeavour to present “the untwisted truth” all the time.

    He added: “I agree that the factors militating against our integration and economic development in this country can best be addressed if we can all agree and show it in our actions and utterances, whether we are president, traditional rulers, governors, journalists, lawyers, civil society activists and so on and so forth, that we are first and foremost, Nigerians before we are who we are.

    “This is the reason why I have usually told those, who talk about restructuring, to focus on economic restructuring rather that geographical restructuring and that the way they usually agitate about it means the splitting of Nigeria into pieces.”

    Tambuwal, who was represented by a member representing Kebbe/Tambuwal (Sokoto State) Federal Constituency in House of Representatives, Abdulsamad Dasuki, urged Nigerians to keep working for the unity and progress of the country.

    He particularly advised the political leaders to work to promote national peace and cohesion, and desist from acts capable of encouraging hatred and division.

    Ajibola attributed the growing insecurity in the country to rising unemployment and illiteracy.

    Relying on a United Nation’s report, Ajibola, who was represented by the Vice-Chancellor, Crescent University, Prof. Ibrahim Gbajabiamila, noted that Nigerian presently ranks among countries with high number of out-of- school children.

     

  • FBN General sustains growth, grosses N3.51b premium in 2017

    FBN General Insurance has grossed a premium income of N3.51 billion in the financial year ended December 31, 2017, reflecting a year-on-year growth of 60 per cent from N2.2 billion in 2016.

    The company’s claims and expenses rose by 180 per cent from N270 million to N756 million. Profit before Tax (PBT) closed at N322 million, representing a growth rate of 66 per cent.

    In a statement by its Managing Director, Bode Opadokun, the growth was partly driven by improved asset and investment portfolio management resulting in an investment income growth of 112 per cent.

    He said: “The 2017 account was approved by the National Insurance Commission, (NAICOM). During the year under review, we consolidated on the strategic restructuring across key business functions.

    “This has inspired a profitable performance exemplified by our total assets recording an appreciable growth of 27 per cent at year-end from N6.06 billion achieved in 2016 to N7.72 billion in 2017. With our strategic marketing drive and the support of our dedicated staff, we are hopeful of sustaining our growth in 2018.

    “It is worthy of note that in addition to the company’s restructuring efforts during the year, FBN General has implemented some tactical initiatives, chief of which is the diversification into retail product sales to enhance her value proposition to customers. Though, the company recorded high claims expenses for the period, which stood at N756 million, a year-on-year growth of 180 per cent, this is symptomatic of the general high loss trend during the year and a testament to the firm’s commitment to her customer’s satisfaction,”he added.

    FBN General Insurance is a wholly owned subsidiary of FBNInsurance Limited, an FBNHoldings company associated with the Sanlam Group SA.

     

  • Alaafin: Absence of value system hindrance to growth

    The Alaafin of Oyo, Oba Lamidi Olayiwola Adeyemi 111, has said without a solid moral base, the country’s social, economic and political development will be in a shambles.

    Oba Adeyemi gave the warning at the conferment of awards on him and his aides by the Lokoja-based International Centre for Ethics and Self Value Orientation.

    The Alaafin stated that he shuddered to think of a Nigeria of intellectual giants, astute economists and politicians withoutrelevant moral values as internalised through socio-cultural orientation and espoused by religion.

    “We need to relate our development to our values system. To do contrary is to entrust the safety of the insane man into his own hand which is a recipe for self-destruction. Consequently, a scientific modern Nigerian society without a sound social and moral base will be her worst enemy in terms of the human misery, fear, insecurity and barbarism that would be self-inflicted in the process of a misguided scientific advancement,” he said.

    The monarch explained that “if a country produces intellectual giants” but who are “moral dwarfs”, it is simply producing obstacles to its own development. He noted that the import of this is that morality is germane to social growth and development. “Therefore, to extricate morality from the Nigerian society is to destroy the very essence of the society, thereby inviting anarchy and disorderliness. Morality is a necessary tool for the survival of human society. It is vital to the survival of any society because it is the basis of all social structures and institutions,” he added.

    Oba Adeyemi noted that the problems facing the country, are anchored on non-compliance with or total neglect of moral principles and these have led to the doldrums we are experiencing in our private and public lives.

    This, he added, shows that national growth and development depend largely on the good sense of justice, moral worth and responsibility, conscientiousness, devotion to duty, selflessness, probity and honesty exhibited by the leaders and the led.

    “Nations often have constitutions used to establish the groundwork for their social, legal and ambitious future. It establishes the basic relationships between the citizens and their rulers. It defines rules for good and bad practices, laying down laws against taboos while preaching certain practices as essential. This generally is the means of identifying the nation’s values or value system.

    “It is assumed that a nation’s value system is sacred and could extend beyond that nation’s boundaries. All nations are supposed to be proud of their value systems, just as a person is proud of his or her upbringing and character and would try to impress that behaviour and beliefs on others. Basic values are traditional and historic, reflecting aspects of the experience that each nation went through since its inception as a national unity,” he said.

    Continuing, he said: “Where are values like honesty, integrity, good neighbourliness, religious tolerance etc that once defined our society? Whatever also happened to being our brother’s keeper? Today, we’ve grown so numb and we are no longer shocked when people are slaughtered in a senseless terror campaign by some deranged individuals. As a result, we now have internally displaced people in the country, yet we carry on as if all is well. Everything has been reduced to politics”.

    Oba Adeyemi who lauded the management of the Centre for their sense of devotion and commitment to duties stressed that ‘there is urgent need for a re-orientation, a re-engendering and a re-focusing on our moral values with the view to actualising our potential and harnessing our resources both human and materials, for a greater, purposeful, egalitarian and vibrant society.

    “As a result of this, all hands must be on deck to actualise this goal. In this regard, moral instruction and education must be given a pride of place in all our educational institutions starting from the primary to the tertiary levels. Also, every citizen must imbibe the culture of moral value recognising that society is real only to the extent to which the members are instructed and guided by their value system. This presupposes that every social institution such as the family, the church, the schools and the government must take the culture of punctuality very seriously, we must preach against insolence, violence and other vices which will project the nation in bad light’’.

    Earlier, the Executive Director of the Centre, Prince Salihu Musa Yakubu who led other members of the management team, said they have been keeping close watch on Alaafin’s stewardship amongst others within the period under review.

    According to him, ‘’from our findings, you (Alaafin) have used character to change the pattern of kingship in Nigeria, in addition to your commitment to uplifting humanity via your philanthropic gestures. You have institutionalised a new concept in traditional leadership, building bridges across kingdoms and helping to ensure national cohesion, unity, peace, and prosperity of Nigeria’’.

    Yakubu explained that the management of the Centre has shortlisted the Alaafin and his kingdom for this unusual character so demonstrated in the country since his ascension unto his father’s throne.

    Presenting the award, Oba Adeyemi was formally issued with a National Certificate of Credence, and a Gold medal having scored over 79 percent in the Centre’s assessment criteria.Alaafin was also inducted as His Excellency Ambassador of Ethics and Conscience and presented with score cards measuring his scores in the Centre’s 10 thematic areas of independent assessment.

    Also conferred with awards of diligence to duties were the Palace Provost, Prince Totoola Adeyemi, and the Accounting Officer, Mrs Abosede Oyatokun.

  • DFID: Osun on right path to growth, development

    •Aregbesola hailed for determination 

    The Department for International Development (DFID) has lauded the giant strides and determination of Osun State Governor Rauf Aregbesola in generating a robust development plan for the state.

    Also, the Commissioner for Economic Planning, Budget and Development Dr Olalekan Yinusa said the workshops for Sector Plan Development teams, approved by the state government, were yielding good results.

    He said the state was putting in place a robust development plan for the state in all sectors.

    The DFID, through its Southwest Reform Facilitator, Miss Rachel Illah, made the commendation at a three-day Envisioning/Capacity Building workshop for Sector Plan Development teams on Medium Term Sector Strategy (2019-2021) organised by the Ministry of Economic Planning, Budget and Development.

    It noted that Osun State was on the right path to development.

    Miss Illah said the governor’s passion, coupled with the machinery his administration set in motion for development, was encouraging and in line with the guidelines and regulations of the DFID.

    The DFID facilitator said the desire for growth and development by the state government, was worthy of emulation by other states in Nigeria.

    She noted that the most important ingredient of growth is the desire the state government had demonstrated.

    Miss Illah said the capacity building workshop was the right way to craft a development plan for any state, adding that no meaningful development can take place without a visible blueprint.

    She added: “I am amazed and impressed at what is going on in Osun. It is only very few states that do what Osun is doing. This is the best way to go, if you want to achieve a real and meaningful development plan or blueprint.”

    “This capacity-building workshop for sector plan development teams is a pointer to the fact that the state really knows what it wants to achieve in terms of growth and development.

    “I can see and feel the desire for growth and development by the people and government of this state. I can see through this workshop that the governor has been able to carry all stakeholders along.

    “I am happy to know that everyone is on the same page in Osun. This is what my organisation clamours for: that everyone, including the government, shares the same passion for development.”

     

    “This shows something significant. It shows the government in this state knows that it is not all about politicians. I am aware that this workshop is all-encompassing. I can see public servants, civil society organisations (CSOs), non-governmental organisations (NGOs), market women.

    “I have also seen members of political parties different from the ruling party in the state. It shows that government knows that the particular needs of the people should be the priority and not what government wants.

    “A budget for development should be directed at the particular needs of the masses for it to be meaningful.

    “The happiness of the people should be paramount to the government in planning for development and the Osun State government has taken this as priority, or else this workshop will not be happening in the first place.”

     

     

  • Nigeria needs lower interest rate, access to finance to drive growth

    Nigeria needs to implement fiscal and monetary policies that will considerably reduce interest rate and open up access to finance to Small and Medium Enterprises (SMEs) in order to drive national economic growth.

    Managing Director, H. Pierson Associates Limited, Mrs. Eileen Shaiyen said the only way to fast-track Nigerian economic growth through the SMEs is to drastically bring down interest rate and create access to finance.

    According to her, the SME space is desperately in need of a stimulus that will unearth the potential of the sector and enable it to drive broad economic growth.

    “But in the short term while we are making that strategic change, we need to look at the issue of interest rate. If we can get interest rate down to single digit, it will make a world of difference,” Shaiyen said.

    She noted that efforts must also be made to provide amenable capital to the SMEs beyond the traditional lending activities of the commercial banks.

    According to her, there is need to step back and review approach to the SME business. A lot of the SME businesses require venture capital, private equity; a different kind of money, not the traditional banking; the traditional money we find in our banking system doesn’t focus on this kind of business.

    Shaiyen commended the policy trust of the President Muhammadu Buhari administration urging the government to be committed to the execution of the Economic Recovery and Growth Plan (ERGP), which she said was well articulated and focused.

    “You will agree with me that it is very well-focused, well-articulated. But what we need is execution. In strategy, everything is about execution. As we go through to 2019, what we need is consistency in governance, and timeline for execution. If we begin to do that, you will begin to see the impact. But if you have major interjections that disrupt execution, you lose focus and the plans are disrupted,” Shaiyen said.

    She added that Nigerians need to choose transformational leaders who will run the country with the efficiency and thoughtfulness of an entrepreneur.

    She noted that leadership must be based on competence and track records rather than ethnocentric and other sentiments.

    “A leader has to be nominated based on the footprints of what he has done. Our economy, states are just too large to be used as experiments.  At all levels of leadership, we need a paradigm shift on how we see leadership. They must be leaders who have a global view and global standard. That requires deliverables and transformation. l think we need to have a fundamental shift on how we define good leadership and we need to also act very quickly,” Shaiyen said.

     

  • MainOne: technology key to growth

    MainOne: technology key to growth

    Increased technology adoption will create jobs, grow the bottomline for businesses, reduce corruption and lead to rapid economic transformation, the Chief Executive Officer, MainOne, Funke Opeke has said.

    According to her, a survey by the company showed that Nigeria is one of the world’s top three consumers of the internet, adding that more needed to be done to harness the potential of digital transformation.

    Speaking at MainOne’s flagship IT event, Nerds Unite, in Lagos with: Radical digital transformation as theme, she said aside connectivity to the internet, there was need to collaborate in the areas of increasing the rate of technology adoption, local data hosting and content distribution.

    Opeke said it was important to engage technology gurus in sharing ideas and finding new ways to improve the standard of living, adding that the conference was a platform designed to bring together professionals in the world of technology.

    “Technology is critical to the sustenance of the community. There is no way the economy will grow without technology. Therefore, there’s need for radical digital transformation,” she said.

    Other IT experts highlighted the importance of applying technology to every facet of life in line with digital transformation agenda of the Federal Government.

    The keynote speaker, Nnamdi Oranye, urged Nigerians to be passionate about the development of the country, adding that technology remained the only way to move the country forward.

    Oranye, who is the author of Disrupting Africa’ stated that a recent United Nations survey estimated that Nigeria would be the third largest country in the world by 2050.

    He said Nigeria could not afford to fail, adding that Africa is looking up to the country described as a developing because of its low industrial base.

    Oranye further stated that before the country could be developed, technology and innovation had to be used to identify new trends, provide incentives and develop new ideas. He added that people should take advantage of available tools to build a legacy for the coming generations.

    During a panel discussion which centred, on ‘Disruptive solutions for enterprise,’ Presales Customer Solutions Manager, SAP West Africa, Chibuzor Ezeasor, said technology could be used to engage customers and the workforce in an organisations.

     

    Ezeasor said SAP, through its CSR programme, would organise events and training around Africa for young entrepreneurs and developers. He said SAP would also build an application for entrepreneurs to build other applications.

    Also speaking, the Chief Technology Officer, Microsoft, Hakeem Adeniji-Adele, stressed the need for SMEs to adopt technology. “Enterprises are driven by customer experience and engagement and technology can be adopted to get adequate feedback and suggestions,” he said.

    Adeniji-Adele, who noted the interdependence of technology and innovation, also stated that there was no way an entrepreneur could innovate without using technology.

    He said 62 per cent of the revenue generate by Microsoft was from the innovation of CloudShare.

    On the other hand, Senior Government Manager at Avanti Communications, Srinath Logasubramanian, described innovation as critical to human existence, adding that the day innovation ends, is the day the world will come to an end. He noted that even big companies had to be on their toes in innovation in order not be pushed out of business by new firms and hinted that Avanti would be launching a satellite system in March to cover broadband services across sub-Saharan Africa.

  • Feeding bottle federalism stunts growth, development, says Oyebode

    Feeding bottle federalism stunts growth, development, says Oyebode

    It is simply indefensible and unacceptable that nearly 60 years after independence, Nigeria remains in the quagmire of underperformance and stasis, Prof Akin Oyebode has said. In his lecture entitled: “Re-thinking the Nigerian nation: Issues and challenges” at the first year anniversary of Ondo State Governor Oluwarotimi Akeredolu, the constitutional lawyer says the ball is back in the people’s court to change the narrative by voting the right people into power.

    Nigeria is today at a crossroads. The multifarious ethnic nationalities, culture areas and linguistic groups hitched together by British imperialism are almost totally dissatisfied, if not actually disillusioned by the arrangement foisted on them. So high is the distaste of many for the framework for their co-habitation that loud voices are heard across the land for a reconsideration and necessity for refashioning a more equitable and fruitful paradigm.

    In the present atmosphere of irredentism, beggar-thy-neighbour policies and naked quest for ethnocentric supremacist tendencies by the powers-that-be, the disillusionment and intention of the malcontents and discomfited to go for broke in their search for alternatives become quite understandable.

    A people accustomed to the niceties of liberal democracy, self-esteem, freedom for all and life more abundant would naturally be uncomfortable with diabolical efforts to render them comatose and transform them into slaves or, at best, second class citizens in their fatherland.

    A people steeped in meritocratic values cannot but be aghast at the diktat of khakistocrats presumably intent on painting the country in their hue with the inexorable consequence of social conflagration and national atrophy. Whether wittingly, or unwittingly, the country is being nudged towards crises and perdition.

    It is within this ominous conjuncture that we are being called upon today to contemplate the unfolding scenario in our dear country with a view to charting possible ways out of the threatening catastrophe.

    Indeed, we are being asked to re-examine Nigeria’s nationhood and justify the essence of our being and justify our claim to membership of the universal family of nations.

    Accordingly, it is intended to begin by postulating the determinants of nationhood before uncovering the problematique of the Nigerian state as well as the successes and failures of successive administrations in the task of grappling with the contradictions of the polity which, it must be stated, had proven nearly overwhelming and created the oxymoron claiming to be making considerable progress in welding together the multifarious components of Nigeria while accelerating and intensifying the underdevelopment of the country.

    Finally, an attempt would be made to construct a prognosis of what can be done to lighten the burden of co-habitation among the disparate people that constitute the country’s population.

     

    When is a Nation?

     

    I am sure this august audience would readily recall the inimitable way in which our inimitable Nobel laureate had posed the national question a few years ago in a bid to dramatise the predicament of the Nigerian nation-state as currently constituted. While no prizes are on offer for unravelling the inadequacies of the Nigerian nation-state, it seems apposite to re-visit the indicia of statehood under international law in order to adumbrate the indeterminacy of Nigeria’s claim to nationhood.

    Accordingly, only entities possessing a defined territory, stable or fixed population, effective government and capacity to enter into relations with other States are considered States.

    Nevertheless, it needs be emphasized that possession of the stated indicia does not ipso facto translate into nationhood. Allegiance by the population to a central authority or common flag and national anthem, commonality of values which underpin co-habitation, guarantee of protection by the state against aggression or arbitrariness by other members of society number among the desiderata of a nation. A people bereft of these elements are little more than a rabble.

    Although Chief Awolowo’s restatement of Metternich’s formulation regarding countries and peoples who are a “geographical expression,” in comparison with nations has attained the status of conventional wisdom, the riposte that nearly every country or people had started off as a geographical expression could indeed exercise some heuristic value. The fact, however, bears re-stating that any country that intends to command the respect and loyalty of its people must exercise the reciprocal duty of protection toward them.

    For, if a people are denied due protection by their government, it becomes very difficult, if not, in fact, impossible to expect their allegiance to the state of which the government is merely a personification.

    A conscious people can be expected to withhold allegiance and support for an uncaring or tyrannical regime. The social contract is a dual carriage way and the rights of the people are a definite correlative duty which ultimately collapses where and when the government feels free to abandon its responsibilities to the people. The consequence of this is the metamorphosis of the natural right of the people to their right to rebel against an oppressive, tyrannical government.

     

    Nigeria’s fault lines

     

    The yoking together of the various people inhabiting Nigeria through what has been described as “the mistake of 1914” has continued to pose serious challenges to many of them who barely have very little in common with others.

    Today, Nigeria is a multi-ethnic, multi-lingual, multi-religious conglomeration ostensibly at war with itself in the quixotic and frenetic quest for nationhood. Whereas there ought to have been strength in diversity, the removal of the scaffolding that held the people together during colonial rule merely accentuated fissiparous, centrifugal and dysfunctional tendencies which colonialism had generally masked.

    Can we forget that things had boiled over to the extent that the country had endured a fratricidal 30-month civil war, which we had pretended ended with “no victor and no vanquished”?

    The militariat which had dismantled the federal arrangement of our founding fathers and foisted a quasi-unitary constitutional framework on the people ensured that Nigeria remained a work in progress so much so that the component units of our unique federation are compelled to go cap in hand to Abuja every month for their sustenance. The “feeding bottle” federalism has effectively stunted Nigeria’s growth and development as the country nudges more and more toward perdition.

    It is indisputable that no-one has a say on where and to whom one is born or his ethnic nationality. Accordingly, a far-sighted government should blunt the rough edges of ethnic and religious idiosyncracies by putting in place policies based on equality of status and opportunity in furtherance of self-actualisation of every citizen. But what do we see today? Increasing emphasis is being placed on ethnic origin, native language and religious persuasion which is not only dysfunctional and counter-productive but also seriously flawed and inimical to the corporate needs and interests of the country as well as national unity, social well-being and collective progress. Until and unless the forces of reaction and ethnocentricity are effectively combated, the country would continue to make progress only in a negative and reverse direction.

     

    Grappling with contradictions

     

    As stated above, Nigeria is chafing under the stranglehold of severe contradictions. Granted that nation-building is everywhere a continuous and laborious project, the situation in Nigeria would seem to have been complicated by a dearth of patriotic and insightful leaders possessing a well thought-out strategic plan to change the country for the better.

    The multiplicity of ethnic nationalities numbering over 400, it must be conceded, makes the task of governance a forbidden one. Yet, ways need to be devised and necessary adjustments made to infuse the people with a sense of belonging and collective stake in Nigeria incorporated.

    It might well be wishful thinking to canvass downplaying the state of origin of key players on the country’s political or security chessboard in deference to competence and meritocracy. Nevertheless, there is a felt need for social engineering and endearment of the various constituencies in the polity in order to carry along as many people possible through socially relevant and just5ifiable socio-economic and political programmes and policies.

    The experience of other countries with regard to socio-economic and political transformation within a reasonable timeline is enough to teach us requisite strategies and tactics for our own transition from the third world to the first.

    We are all Africans even if our native languages are not the same. Accordingly, it is not too much to ask that we de-emphasize our differences in the overall interest of our collective need and national progress. It needs be brought home to all concerned that there are immense benefits to be derived from harnessing our endowments in the larger interest of Nigeria.

    As the world’s largest concentration of black people, we have a historical mandate to actualise our dreams and aspirations, unencumbered by parochial and self-serving nuances. Undue emphasis on ethnicity and religion should be seen as an unnecessary and avoidable hindrance to achieving the utilitarian hopes and aspirations of our people.

     

    Reconciling and resolving divisive and divergent tendencies in contemporary Nigeria

     

    The push and pull factors in relation to nation-building in Nigeria exert tremendous influence on the country’s growth and development. While there are forces wedded to the status quo, there also exist forces ranged towards radical or revolutionary change in the scheme of things. The interplay or clash of these forces can be best grasped through an understanding of the ratio and balance of class forces within the polity.

    To the extent that the dominant ideas of every epoch are those of the ruling class, to that extent can it be said that the outlook and consciousness of the ruling class have a bearing on its capacity to come to grips with the contradictions in the society. In other words, solutions to problems prevalent in the society depend largely on the existing power equation and the perception of the political leadership and how any resolution or reconciliation impinges on the existing power equation and perceived threats to the ruling class.

    Where and when by act or omission, the state is unable to exterminate threats to its existence, the extinction of the state must be deemed imminent. This is why no effort must be spared to ensure the elimination of threats to the survival of Nigeria.

    The pernicious and callous aggression by Fulani herdsmen across the country should serve as a wake-up call to all men and women of goodwill and humanitarian disposition on the necessity for peaceful co-habitation among Nigerians.

    A situation which hampers reciprocal love, respect and trust for fellow human beings is, quite frankly, antithetical to peace, order and good government and should be unequivocally and strongly condemned by all who wish Nigeria well.

     

    Where do we go from here?

     

    These are indeed harrowing times for Nigeria and Nigerians when majority of our young ones have lost faith and confidence in the Nigeria project. They are ready to vote with their feet at the slightest opportunity in order to pursue their dreams elsewhere. They no longer have heroes here and seek succor in foreign football teams, foreign music and foreign dressing.

    The middle-aged and elderly are also generally dispirited but find it a little more difficult to jump ship on account of existential demands. So, they are condemned to live out the rest of their lives under the threat of armed robbers, kidnappers and hired assassins.

    This leads me to the question, what is to be done and how do we emerge from the labyrinth of crying poverty, underdevelopment and inexorable descent into the hobbesian state of nature?

    It would seem that there is a felt necessity to re-invent the country and re-create the basic values which had helped hold the country together – love and mutual respect, fairness in inter-personal relationships, good neighborliness, etc. In an age of collective self-doubt and general despondency, the powers-that-be must evince a resolve to effect a turnaround in our affairs and create the pre-conditions for a better tomorrow.

    In addition, we need to enlist credible protagonists and believers in the Nigeria project in order to re-kindle confidence and hope in the Nigerian dream. They should be in the vanguard of the crusade for a kinder and gentler country which would make life worth living again.

    There is need for a moral re-armament in order to advocate the benefits of one nation and one people not through hackneyed programmes such as the NYSC (National Youth Service Corps) but innovative policies that would fire the imagination of our youth, de-emphasizing state of origin, ethnicity, religious and cultural orientation in favour of a broad national ethos and love for and commitment to a united Nigeria.

    For far too long have we allowed the country to drift and be rudderless like a ship at sea without a compass. We have not tapped sufficiently into the transient patriotism witnessed whenever the Super Eagles are engaging foreign teams arising largely from failure to provide “democracy dividends” to the preponderant majority of the population. What is called for now is a recovery mission on a national scale aimed at inculcating integrative nationalistic values.

    Regrettably, this cannot come to pass automatically. There first has to be an awareness by the nation’s political leadership of the acuity of the situation. Next, well elaborated programmes and policies must be put in place as a blueprint of national goals and objectives.

    It is simply indefensible and unacceptable that nearly 60 years after the country’s political independence, we are still in the quagmire of underperformance and stasis. Therefore, a consensus has to be forged among opinion leaders across the country regarding the country’s vision and mission with in-built timelines of the roadmap for Nigeria’s transformation.

    Disparate, uncoordinated efforts would need to be substituted with harmonized plans which put Nigeria first. Venal politicking, ethnocentricity, influence-peddling and racketeering must be immediately jettisoned in favour of pan-Nigeria endeavours and attitudes such that whoever falls below expectation is expeditiously sanctioned irrespective of his state of origin, religious persuasion or circumstances of his birth and any other consideration.

    It is only when law is applied without distinction that the country can be said to be making progress on its journey towards nationhood. Double standards, sacred cows and a hominem application of laws should no longer find a place in our national experience.

    In the final analysis, Nigeria’s journey to nationhood would be considerably shortened if politically correct public office-holders are brought to power. We need to constantly remember the sentiments of Joseph d’ Maistre to the effect that a people get the government they deserve.

    So, the ball is back in the court of the people who must always ensure that the right people are voted into power.

  • AfDB predicts growth for Nigeria

    AfDB predicts growth for Nigeria

    The African Development Bank (AfDB) has predicted that Nigeria’s economic outlook in 2018 and will be positive.

    The bank in its 2018 African Economic Outlook projected Nigeria’s economic growth  at 2.1 per cent  in 2018 and 2.5 per cent in 2019.

    According to the bank, “this outlook is anchored on higher oil prices and production, as well as stronger agricultural performance.”

    Notwithstanding this positive outlook for the country, the AfDB in its report said Nigeria still faces significant challenges, including foreign exchange shortages, disruptions in fuel supply, power shortages, and insecurity in some parts of the country.

    In addition, “revenue mobilization efforts are insufficient; at 5%, value added tax rates are among the lowest in the world, and revenue administration is inefficient. Poverty is unacceptably high; nearly 80% of Nigeria’s 190 million people live on less than $2 a day” the report said

    Looking into the future, the AfDB economic prediction on Nigeria noted that “oil prices rebounded to an average of $52 per barrel (Brent crude) in 2017 and are projected to reach $54 in 2018, up from $43 per barrel in 2016.”

     

  • ‘Govt spending will spur insurance sector’s growth’

    ‘Govt spending will spur insurance sector’s growth’

    For the insurance industry, 2018 may be the year to celebrate bigger feats. The Federal Government’s plan to bridge infrastructural gap and the recent positive projection for the country by the World Bank are enough a springboard to greater heights for the industry. The Managing Director, Law Union Insurance Plc, Mr. Jide Orimolade, in this interview with OMOBOLA TOLU-KUSIMO, sheds more light on this and other sundry issues in the industry.

    The Federal Government budgeted huge sum for infrastructure in 2018. What impact will this have on the insurance industry?

    It is clear that the government has been trying to rejig the economy. In looking at the 2018 budget, I would say that in terms development in the economy, there has been a recovery from recession. Things may not be rosy now in terms of the economic trend, but things will get positive soon for the country. I believe that the 2018 budget will assist the insurance industry. Government has been spending in the areas of infrastructure, creating jobs and putting food on the table for the masses. I recall that some of the policies made by this administration is that they want to feed most of the children in the public schools. For us in the industry, we believe that this will provide a lot of income.  It has boosted public and private partnership that is going on right now and I think going forward it will continue to happen. If you look at our rail system, the Chinese banks are providing the funding and because of the local content  in the country, they are not allowed to do insurance in their country. They are mandated to do their insurance here and this has created a lot of opportunities for the industry. For us at Law Union and Rock, part of the area we want to focus on this year is the public sector because we know that there will be a lot of demand for insurance. We are doing very well in engineering and in fact, leading in that area. We have been able to insure up to eight power plants in the Nigerian economy. Also, there is a gap in the power sector and government is looking at how to fill the gap this year. Government has already signed an agreement of about £5.5 billion with Chinese government on Mambilla power plant project. This is an area that we believe will bring a lot of income in 2018.

    How are you preparing to key into this window of opportunity government spending is opening up?

    We want to do our retail business aggressively. In terms of technology, we want to acquire new software that will enable people to sit in the comfort of their offices or their homes to start and finish an insurance transaction. It will also fast track our claims settlement. We want our customers to sit in their homes and offices and send their claims. For instance, if a customer has an accident, he or she can take the pictures and send them; our in-house people can quickly adjust the claim, pay and before you know it, the vehicle is back on the road. We believe that the customer will be happy and even recommend us to families and friends. The only way insurance companies can advertise themselves in the market is  in the ability to settle claims, not just settling the claims but settling the claims on time.

    Are you convinced  that such initiatives will change the perception of the public about the industry?

    There has been record of some ills pertaining to the industry in the past. We are trying to correct it. The industry as a whole has embarked on a rebranding project. The Insurers Committee which comprises of chief executive officers in the industry are in charge of the project. At the last meeting of the committee, we agreed that we are starting the first quarter of this year by kick-starting the project. We are spending a lot of money just to send a positive signal to the market so that people can believe in insurance. It is only in Nigeria that insurance does not contribute much to the nation’s GDP, unlike in developed countries where insurance contributes a lot to the growth of the GDP. But it is a good thing that the government has been able to embrace insurance. I believe that the 2018 budget is tailored in the direction that it can support the industry to grow. Like I mentioned, for us at Law Union And Rock, we have identified the gaps as contained in the budget in various sectors. We plan to key into them to be able to achieve our top line and at the same time our bottom line for 2018.  There are two things in terms of investment that can make an insurance company to report a good bottom line. This is the underwriting profit and investment income. These two items, for us are very key. Underwriting profits is the core business profit and so we want to do our business in such a way that we offer professional advice to our various clients, settle their claims on time and also ensure that our rates are very competitive in the market. With this, our underwriting profit will rise while we continue to grow our investment to be able to make an appreciable income in our bottom line.

    The World Bank has projected  2.5per cent growth for Nigeria this year. What does this means to your organisation and the insurance industry?

    First of all I am hopeful that 2018 will be a better year for the country. The World Bank has been able to project this in terms of growth of the economy. I think it is positive and something that will reflect deeply on the industry. Presently, the oil price within the region is at $70 per barrel. And with the calmness from the Niger Delta, things can only get better. Interest rate has been low so manufacturing companies will be able to have access to loans from banks and this will definitely add positively to the sector.President Muhammadu Buhari,  in his first address, spoke on how he intends to close the infrastructural gap that exists in the country.  He mentioned roads, rail system, power sector as  areas of focus for his administration. I believe that by the time all of these are fulfilled, it will make the industry grow. Other sectors will also witness growth and will in turn impact on insurance arm of the business.

    It is saddening that only 1.5 million out of 180 million Nigerians are insured. Do you see more people taking up insurance this year?

    This situation is worrisome. But I believe that with the economy that is presently looking good, the number of people that are insured will increase. What we are doing on our part which I believe other companies are also doing is to provide tailor-made products that the consumers can embrace willingly. Some of us just look at the premiums written and number of policy holders that we have in our books. But part of the things that we need to do as insurance operators is to do a lot of publicity on insurance and its advantages to the people. We need to show how much progress we have made in the industry in terms of prompt payment of claims.

    The issue of rate cutting has continued unabated and is slowing down the growth of the industry. Why has it remained so and what is the way out?

    Rate cutting has been an issue in the market and it has been affecting our underwriting profit. We have not been making enough underwriting profit which is very key in the sustenance of our business. It is time as an industry for us to look at our underwriting profit that is going down as a result of the rate we charge on our various line of business. The rates are not profitable and when you are doing what is not profitable, I think the right thing to do is to adjust. For us at Law Union and Rock, our underwriting profit last year was about N1.27 billion, but it has taken a downward trend by almost 30 per cent this year. So we have asked ourself if we are charging adequate rate on the business that we take. Meanwhile, claims are really going up. The question is will I still be charging the same rate? The industry is facing a bigger problem on a global perspective. For instance, hurricane does not happen in Nigeria, but insurance companies abroad are charging us the same rate they would charge other countries in other part of the world. Once claims expense goes up, the reinsurers increase the rates charged and apply same to us. It does not concern them whether the company is in Africa or Nigeria. Presently, the reinsurers are complaining that they are not making profit from businesses that we place with them and they are putting a lot of pressure on us. They are saying that we want to kill ourselves in the market with the rates that we are charging and they are not ready to go through that path with us. For the various businesses that we have to put in our books, we have to be able to seek the consent of reinsurers. So for me, I think it is high time underwriters did something about charging the right rate. We have to adopt a rate that is competitive and profitable to move us forward in the market.

    The National Insurance Commission (NAICOM) is trying to migrate the industry towards Risk Based Supervision (RBS). It has foreseen voluntary mergers and acquisitions as part of the change that will occur in the industry. Are we likely to see that coming from your firm?

    I know that one item on the agenda of the regulator is Risk Based Supervision (RBS). Although they are still at the  the foundation level, they have not told us when the implementation will start. But I believe that once the implementation starts, everybody will look for capital that will sustain their business. We have to be proactive and not wait for NAICOM. As underwriters, we have to know if the capital we have is adequate for our business or not. I must know if I need to bring in investors or merge with another company. But for us, I think we want to grow organically. We don’t want a situation whereby we look at another company and say come and let’s merge. We will prefer a situation whereby we will get fresh capital into the organisation and then with that fresh capital, we can say that in general business we are solid. The area that we are looking at right now is how we can have a life business to complement whatever we are doing so that we can become a composite insurance company.

    In 2012, your company’s retain earnings was negative. What strategies did you deploy to make your results positive?

    When I came in 2012 as the MD, the company had a negative retain earning. That happened as a result of over N1 billion loss position. Currently the company has been growing consistently and progressively. As you know, if a company has a negative retain earning, as it makes profit in subsequent years, it begins to write off 15 percent of the company profit to the retained earnings. As at the end of 2016, we wrote a marginal figure into 2017 and as at March last year the negative retain earning has turned positive and as we speak now it is still positive. This is as a result of the efficiency that has been coming into the operation of the company since 2013 and we hope to continue in this regard. In 2012, things were also really difficult in terms of shareholders’ funds. The company had about N4 billion shareholders’ fund but  within the space of four years, we have been able to grow the shareholders’ funds to about N6.3 billion. Our negative retain earning was at a loss position of about N2 billion in 2012 which made our retain earnings negative. But right now we are in positive position. We have been able to clean our books in terms of solvency margin. We have 200 per cent solvency compared to the paid up capital for general business. All these things were made possible because of the kind of board of directors that we have. We have guided our corporate governance carefully in the organisation. We also have a focused and hardworking management. So these are things that have been done. Our share price that has been trading at par of 50 kobo at the stock exchange for a long time has now grown to about 80 kobo. Our shareholders will be able to smile at the end of the year when they get dividend.

    How would you rate agency system?

    The agency system is a good system and if I rate it 50 or 60 percent, I might not have done right. The agency system has helped the industry to create employment for people who ordinarily could not have gotten jobs. We are providing opportunities for graduates and people alike who have competence in sales to provide such services to us for a commission. The agency system is a good system. We only need to fine tune it. We recognise the gaps that are in the agency system. We have seen situation when some few agents have tried to tarnish the image of the industry with some fraudulent activities. This is why we are not just taking people, we provide adequate training and carry out competency test and checks on them. This will ensure that the people we are taking in going forward will not be able to defraud us even when they are not working with us again. Part of the things we have done in our company to checkmate the problem is that we have put in place a proper customer service unit. This unit is to call each client the moment a sale is concluded. The unit through a customer service manager, sends messages and often speak with the client. We have put measures in place to ensure that we reach our clients ahead of their renewal. So the moment you have one Adebisi or Nkechi who is sitting on the other side of the telephone whom you know, it will be difficult for anybody with a fraudulent motive to defraud you. For instance, if the fake person calls you for a renewal of your policy, you have a place to verify. We will try and be ahead of them.

    There is the belief that some underwriters still give excuses in order not to pay claims. What are you doing to ensure that people don’t get negative signals from the industry?

    The issues that you seem to see among some companies in the industry are the fact that they don’t get their underwriting business process right. When you sell a product to a customer and you did not inform the customer well on the conditions attached to the contract, there is bound to be issues when it is time to pay claim. This is because he is going to tell you that he is not aware of the condition and would insist that you must pay him. There is a particular case of someone that wanted to export groundnut. There was delay while he was exporting and the groundnut didn’t arrive until six months after the due date. By the time it got to the point of destination, the groundnut was already spoilt and they didn’t even allow it enter the country of destination. It turned out to be a total loss for the owner of the groundnut. He consoled himself that he is covered. For us practitioners, delays are a standard exclusion. But the client was not aware and he was not given any policy document. So when he notified the company, he was turned down.

    This is a person who was said to have borrowed money to pay for the insurance transaction. So for such a person, he will tell you that insurance does not work. If he has been informed, he would have taken informed decision on whether he should go ahead and do the contract or take additional cover elsewhere. For us at Law Union and Rock, we have identified the gap in the market and we ensure that even on third party cover, there is a bullet point summary of what is covered and what is not covered.  With this in place, when there is a claim, we will both be on the same page and there won’t be issues. This is what we do at our end and we rarely have any complaint. I believe that as an industry, we must live up to the expectation of the public in prompt claims resolution. It is better for us to practicalise what we are doing so that people can testify to it.

    It helps even in the rebranding of the industry. It goes to show that we are serious. It shows that we are serious to grow our capital base. We are very liquid and we can pay a claim of N1 billion and even go to the reinsurance for recovery. We want a situation whereby our customers remain happy with us and we can get a lot of referrals from them. I believe that building the industry is in our hands, the operators. Outsiders can’t come and help us grow the industry. I also think that various bodies like the NIA, Chartered Insurance Institute of Nigeria (CIIN), Nigeria Council of Registered Insurance Brokers (NRCIB), Institute of Loss Adjusters (ILAN), Association of Registered Insurance Agents (ARIAN) need to be engaging ourselves on how to move the industry forward; how to do things in such a way that people will look at us and feel proud about the industry. This way, people won’t be forced to do insurance; they will take up a cover voluntarily. They will call to insure their gadgets, electronics, houses, cars among others. The upcoming generation will feel proud and say I want to work in an insurance firm without anyone forcing them.

    There are issues of fake insurance certificates. What are you doing on your part to ensure that prospective customers are not caught in this web?

    The Nigeria Insurers Association which is the umbrella body for underwriters, have done a lot with the creation of the Nigeria Insurance Industry Database (NIID). A lot of money and resources have been put into the NIID and all we ask of motorists is that they should double check that the policy is genuine on the NIID. They can also generate their certificate from there and it gives us more credibility in the market.