The Nation Newspaper

Tag: growth

  • ‘Corporate governance catalyst to growth’

    Effective corporate governance framework in organisations spurs  success and growth, Lagos State Commissioner for Establishments, Training and Pensions, Dr. Akintola, Benson, has said.

    Speaking on: Corporate Governance: Responsibility, Sustainability and Accountability – Implication for the Nigerian nation, at the 2017 Induction Ceremony of the Association of Corporate Governance Professionals of Nigeria (ACGPN), he urged the association not to relent in its effort to propagate and champion the cause of effective, efficient and responsive frameworks for responsible corporate governance in all sectors of the economy.

    According to him, in today’s market-oriented economy the need for corporate governance arises and is absolutely crucial. He noted that efficiency as well as globalisation are significant factors aiding corporate governance ethics.

  • Transcorp sustains growth with N9b profit in Q3

    Transnational Corporation of Nigeria Plc (Transcorp) Plc recorded considerable improvement in its overall return outlook in the third quarter as the conglomerate drew on improved top-line and operating efficiency to return to positive bottom-line.

    Key extracts of the interim report and accounts of Transcorp for the nine-month period ended September 30, 2017 showed that the group’s turnover rose by 35 per cent from N41.92 billion in third quarter 2016 to N56.76 billion in third quarter 2017. Gross profit rose by 45 per cent from N19.84 billion in 2016 to N25.62 billion in 2017. Operating profit stood at N16.81 billion compared with N11.58 billion in comparable period of 2016.

    With better finance cost management, net finance cost declined considerably to N7.77 billion in 2017 as against N24.37 billion in 2016. Profit before tax thus improved to N9.04 billion in third quarter 2017 as against pre-tax loss of N12.7 billion recorded in third quarter 2016. After taxes, net profit recovered to N8.2 billion in 2017 as against net loss of N14.21 billion in corresponding period of 2016.

    President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Adim Jibunoh, said the third quarter performance highlighted a significant improvement in the group’s operations.

    According to him, the result was achieved largely through improved and sustained production capacity in the power business as a result of improvements in gas supply amongst other initiatives and the positive outlook in the hospitality business.

    “Our power plant has consistently ranked as the number one power producer in the country for third quarter 2017 and we are on track for a stronger performance in fourth quarter 2017, as we progress plans to increase our available capacity,” Jibunoh said.

    He added that improvements in general economic activity in Abuja on the back of implementation of 2017 budget and return to operations of newly upgraded room stocks will boost occupancy and top line performance for Transcorp Hotels in the months ahead.

    Jibunoh had earlier assured the investing public that the conglomerate would deliver better returns in the current business year.

    He noted that the conglomerate would deliver better returns in 2017 given the growths across its business segments.

    He said the conglomerate has been investing in its businesses in the hospitality, power and oil and gas sectors because of its strong faith in the economy.

    He said the conglomerate was working on becoming the biggest provider of electric power in the country.

    “The shareholders will be happy this year as something good will come out as a return to them,” Jibunoh said.

    Transcorp, owned by more than 300,000 shareholders, has a vast business portfolio that comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. The group’s notable businesses include Transcorp Hilton  Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Limited, owner of 972 megawatts power plant, Teragro Commodities Limited, operator of Teragro Benfruit plant-Nigeria’s first-of-its-kind juice concentrate plant; and Transcorp Energy Limited.

  • IMF: there’s disconnect between Nigeria’s population, economic growth

    IMF: there’s disconnect between Nigeria’s population, economic growth

    International Monetary Fund (IMF) Managing Director, Christine Lagarde, has said some West African nations economy, including Nigeria, is not growing at the same rate with their population.

    She spoke with reporters at the ongoing IMF annual meetings in Washington DC, United States (U.S).

    She said:“Sub Saharan Africa is one region of the world where growth is way suboptimal. Those countries (grow at) 2.5 per cent. That is too low for the demographic expansion of the region.

    “There are different countries if we are to look at Rawanda, it is a different situation from that of Togo and Ghana is going to be different from Mozambique and so on. It is still too low for the demographic growth. For that region to take advantage of the demographic dividend of all the young people, who are coming up and trying to have access to the economy and have a job, it is too low.”

    Lagarde said IMF would engage commodity-dependent countries on building up their buffers as such countries are not faring as well as countries with diversified economies.

    “We are engaging them in the direction of stabilising; for those that are doing well, build up their buffers and more importantly, diversify the sources of their economic growth.

    “What we observed is that those that are heavily commodity dependent are faring less well than those that are well diversified,” she said.

    The best way to reduce inequality within a population, according to her, is to reduce the gender gap between men and women, not making the rich pay more taxes.

  • Why Nigeria’s economic growth is slow, by bank chairman

    First Bank Plc Chairman Mrs. Ibukun Awosika has explained why there is slow economic growth in Nigeria.

    She said the national economy may not improve unless women empowerment is given a priority.

    Addressing the opening session of the International Law Students Association Conference at the Obafemi Awolowo University, Ile Ife, Awosika said statistics of gender distribution of Nigeria’s population indicate that women account for 48 per cent of the working population.

    Speaking on the theme of the conference: “Rethinking the role of women in modern day Africa,” she maintained that lack of empowerment provision for such a high number of people expected to contribute positively to the national economy, no doubt, would have negative impact on the general wellbeing of the populace.

    Mrs. Awosika said: “Almost 50 per cent business potentials of Nigeria are locked up because women were not empowered. Every Nigerian must be ready to lead right within his or her space. Women should work towards retaining values in them over a long time.”

    She noted that the society seemed to be deliberately working against giving women the needed support to operate.

    Mrs. Awosika added that as long as the status quo remains, the country may continue to record poor economic growth.

    The bank chairman noted that the long held belief that women with good economic means or career cannot keep home-front should be discarded.

    According to her, despite being married for 27 years and facing daring challenges of keeping her marriage, she said she has managed to combine effectively managing her home and career.

    She said: “I was three years old in my business when I got married. And I have been married for 27 years. You can be a successful career woman or business owner and still keep your home-front intact. Women constitute 48 per cent of Nigeria’s workforce. If that huge number is left with no meaningful contribution, economy cannot grow.

    “Women can manage business successfully, but we need to empower them. I urge you all to follow your dream with passion, the result is always big. The place of your birth is beyond your control, but what you make of your life is what matters.”

  • ‘Nigeria needs viable debt market for sustainable growth’

    nigeria needs to encourage the development of a robust and viable debt capital market in order to secure a sustainable domestic pool of capital that could support national growth and development.

    This was the consensus of stakeholders at the 2017 Nigerian Debt Capital Markets Conference & Awards organised by the FMDQ OTC Securities Exchange in Lagos. The event, which brought together subject matter experts with varying focuses and interests in the Nigerian and global financial markets space, provided a platform to deliberate on strategies and other pre-requisites needed to position the Nigerian debt capital markets to support sustainable economic growth and development.

    Vice President, Federal Republic of Nigeria, Professor Yemi Osinbajo, who was represented by the Director General, Debt Management Office, Ms. Pat Oniha said the government knows the importance of the debt capital market to its overall economic recovery and growth plan.

    He said the government would continue to support the development of the Nigerian capital market.

    He urged all stakeholders to support the Federal Government’s diversification efforts by showing greater commitment from the private sector to complement the government’s efforts especially in the area of infrastructure development.

    Minister of Finance, Mrs. Kemi Adeosun, who gave a special address, recognised the opportunities inherent in the debt capital market and assured the participants that the Federal Government was taking bold steps towards putting the necessary reforms to support private sector-led growth, even as the country exits recession.

    Director General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, underscored the growing relevance of the debt capital market to the much-desired turnaround of the Nigerian economy.

    Gwarzo, who was represented by Director, Investment Management, SEC, Ms Mary Uduk, provided an overview of the recent milestones achieved in the Nigerian debt capital market.

    He pointed out that the Nigerian Economic Recovery and Growth Plan underscores the role of the private sector in leading the growth that Nigeria desires.

    “To sustainably develop Nigeria, reliance must be shifted from ‘owners’ capital’ and short-term funding from commercial banks to long-term capital from the debt capital market,” Gwarzo said.

    Vice President and Treasurer, International Finance Corporation (IFC), Mr. Jingdong Hua, noted that for Africa to meet and maximise its potential in the global financial markets space, Nigeria must be one of its greatest engines.

    He called on the government to create an enabling environment to support the debt capital market and also promote financial markets education for capacity building of market participants, and the general public.

  • Oando: patnership key to growth

    Oando: patnership key to growth

    •Supports US-Nigeria commercial relations

    The Group Chief Executive, Oando Plc, Wale Tinubu, has stressed the importance of collaboration and strategic  partnership for sustainable  economic growth.

    Tinubu spoke during  an exclusive dinner in New York hosted by the U.S. Nigeria Council (USNC) for Food Security, Trade and Investment with U.S investors interested in Nigeria.

    The dinner was held on the sidelines of the 72 Session of the United Nations General Assembly as a platform to dialogue and build U.S-Nigeria commercial relations and deepen a new era of understanding and cooperation between the U.S and Nigeria.

    Speaking on the occasion, Tinubu said: “As we know, global firms and investors are increasingly drawn to Nigeria, Africa’s largest and most dynamic market, but navigating the rapidly changing business ecosystem requires strategic partnerships.

    “Collaboration is essential to not only maximise an organisation’s potential, but also to grow and diversify the Nigerian economy. Meetings like these encourage tangible partnerships across both borders and allow for an upward drive of the economy.”

    Tinubu lauded the Council for facilitating transactions between a very diverse set of stakeholders and expressed  hopes for even stronger and more impactful relationships in the near future.

    The dinner  was a platform for companies in both countries to deliberate on ways to build on Nigeria’s return to growth and deepen diversification. The event was co-hosted by John Coumantaros, Chairman of Flour Mills Nigeria Plc; Uche Orji, Chief Executive Officer of the Nigeria Sovereign Investment Authority, and Ambassador John Negroponte, Vice-Chairman of McLarty Associates.

    Council members and dinner participants focused on an urgent need to further developthe Nigerian economy, especially after a recession.

    The commitment of Nigerian businesses to the USNC was demonstrated by the active participation of Tinubu, Jim Ovia of Zenith Bank, Tunde Folawiyo of Yinka Folawiyo Group, Abdulrazaq Isa of Waltersmith, Kola Karim of Shoreline Energy, and Oscar Onyema of the Nigeria Stock Exchange (NSE).

    The dinner welcomed a diverse and notable group of entrepreneurs who have built successful companies in a wide range of sectors including oil and gas, technology, agribusiness, e-commerce, and education.

    U.S. businesses in attendance include Google, IBM, Tetra Tech, and American Tower.

    Among the leading investors at the event were Citi, Denham Capital, Fairfax Africa, CRE Ventures, Development Partners International, Atlas Mara

  • Operators seek viable road network for growth

    Operators seek viable road network for growth

    To boost economic development, Nigeria needs a viable road network, Managing Director, Lafarge Africa Plc, Mr. Michel Puchercos, has said.

    The roads, he said, will be the second largest in the South of the Sahara and largest in West Africa, making them central to economic development.

    This, he said, also raises concerns on the need for a maintenance culture.

    He spoke at a road construction summit by Lafarge Africa Plc, in partnership with Business Day Media, in Lagos.

    The summit had as theme: “The economics of innovative solutions to road construction in Nigeria.”

    Puchercos said though Lafarge has solutions to the challenges of road construction in the country, the firm could not do it all alone. Hence, the need for all hands to be on deck to bring about an innovative solution to road construction. This, he further said, would mean involving financial institutions, construction industries and road users.

    Lafarge Africa Chairman, Mr. Mobolaji Balogun, said lack of good road network hinders effective transportation, thereby preventing the country from attaining its potential in agriculture mining, and hindering foreign direct investment, which may in turn, lead to loss of jobs, and hamper the growth of small and medium scale enterprises.

    Minister of  Power, Works and Housing, Mr. Babatunde Fashola, disclosed that the country’s infrastructure challenge was very enormous. He blamed the infrastructural deficiencies, especially roads, on past administrations, who he accused of not investing much in infrastructure.

    For instance, Fashola disclosed that though at the beginning of this administration in 2015, the total budget for roads was N18 billion; N5 billion for power and N1.8billion for housing, totalling N24.8 billion, less than half of the amount was released to it. However, the following year, which represented the full budget year of this government, his ministry was allocated N422 billion.

    According to the minister, one of the innovative ways the government is developing its road infrastructure is tax deduction benefits, whereby companies that build infrastructure for public use are granted tax incentive. This incentive, he said, is being enjoyed by Dangote Industries, which constructed the 42.8-km Obajana Road in Kogi State. The tax relief initiative is being improved upon with a proposal for it to accommodate people, or group forming a cluster to build infrastructure for public use, the minister added.

    The projects that have been signed on for this process include an agreement with Dangote Industries to reconstruct a two-kilometre road in Apapa, using cement. This project, Fashola said, has been extended to 35km to cover Apapa, Liverpool, Marine bridge, Oshodi, Oworonshoki and old Lagos Toll gate.

    Also, he said the government  has been signed an agreement with the Liquefied Natural Gas (LNG) Group, to build Bonny Bridge. The cost of the project, which would be completed in five years, would be borne by the firm and Federal Government.

  • NEPC: only non-oil export’s forex ’ll spur growth

    NEPC: only non-oil export’s forex ’ll spur growth

    Only Foreign Exchange (forex) earnings from export of non-oil products will spur Nigeria’s sustainable economic growth, the Nigerian Export Promotion Council (NEPC) has said.

    Its Chief Executive Officer Mr. Segun Awolowo made this known at the Quarterly Lecture organised by the former Director General of National Poverty Alleviation Programme (NAPEP), Dr Magnus Kpakol, in Abuja.

    The lecture was titled: “Exporting, exchange rate and economic growth.”

     Awolowo, who was represented by a director at NEPC, George Enyiekpon, a lawyer, said forex generated from remittance from Nigerian relatives abroad could not provide sustainable economic development for the country.

    The NEPC chief also said it was obvious that crude oil was no longer profitable as it was before. He added that the non-oil export should, therefore, be focused on by the country.

    While noting that Nigeria’s exchange rate violability started way back in the 1960s; not just in 2015, he urged the youths to focus on export as a business. According to him, this will not only enable them make ends meet, but also help the country garner much forex.

    However, a senior lecturer in the Department of Political Science and International Relations, University of Abuja, Dr Mutiullah Olasupo, blamed Nigeria’s economic growth problem and her forex violability to corrupt leadership and lack of sound economic policies.

    He said bad governance from corrupt leaders wreaked huge havoc on the country’s economy, adding that it would only take sincere and corrupt-free leaders to savage the economy.

    Olasupo cited Malaysia, Singapore and South Korea as countries that were below Nigeria in terms of economic development in 1960s and 1970s, but through sincere leadership and good governance catapulted themselves to be among the economic buoyant countries far above Nigeria.

    Kpakol said Nigeria could still get it right with economic decisions of the government. He said the Central Bank of Nigeria’s (CBN) policies on agriculture, which were being implemented across the country, were excellent decisions.

    He said CBN’s agriculture policies would not only ensure food security, but are also capable of giving the country a sustainable and stable foreign exchange.

  • Assessing NEPC’s path to diversification, growth

    Assessing NEPC’s path to diversification, growth

    With the mandate of diversifying Nigeria’s economy from mono-product to multi-product, the Nigeria Export Promotion Council, NEPC, appears to be turning the challenges posed by the current recession to opportunities.

    It indeed sounds gratifying that rather than reeling under the multiplicity of the problems occasioned by the economic downturn, the Council is expanding the frontiers of diversification in the country.

    Given the commitment of the present administration at creating different streams of revenue for the country, it was not a surprised that NEPC is pursuing its core objectives with a renewed vigour.

    For an agency that has been in existence for 41 years, the need to diversify could not be described as new, but the commitment to its objectives at a time like this has not stopped attracting much attention.

    Findings showed that many policies aimed at boosting the current efforts at diversifying have been introduced under the present leadership of NEPC.

    From agriculture, food processing to the encouragement of Small and Medium Scale Enterprises, SMEs, among others, the Council is ensuring that the nation’s export potentialities are realized within a reasonable time frame.

    Some programmes identified to have been commenced by the Council include Zero Oil Plan Initiative, ZOPI, Women in Export Development, Capacity Building for Exports, Cashew Processing for Export, Strategic Partnership with Los Angeles University and CBI Technical Support for Promotion of Nigeria’s Exports among others.

    On ZOPI, the Council is working towards boosting the supply of foreign exchange from non-oil sectors by driving growth in five key areas which include concentration on generating US$30billion from 11 selected strategic export products, exploring the competencies, comparative and competitive advantages of States and Zones through the One State One Product programme, domestic sourcing of products through the launch of first National Export Aggregator and Strengthening of Export Development Fund ,EDF, scheme, and prioritization of Nigerian exports to 22 newly targeted Export destinations.

    Specifically, the aims of the programmes  were discovered to include growing of non-oil foreign exchange from $2.7 billion today to $30 billion, diversification of export base from raw materials to  realization of  $706 million non-oil export to West Africa Sub-region by 2017, increasing non-oil export as a percentage of total export from 5 percent to 20 percent by 2018, increasing participation of SMEs in export trade by 50 percent and creation of 1.5 million new jobs in the SME sector by 2020.

    In addition, the NEPC and the Centre for Promotion of Imports from Developing Countries (CBI) Netherlands are currently administering a capacity building programme for the promotion of non-oil exports and improved access to European Union markets.

    This initiative, it was gathered,  is part of an effort to bring about economic empowerment of Nigerians with the aim of enabling Small and Medium Enterprises’ (SME) export to the EU market.

    Indeed, industry analysts found this function to be in line with the present government’s policy on poverty reduction and job creation, especially with the inclusive growth for women.

    The Council’s collaboration with CBI is to enhance knowledge and implement capacity building as an outcome of needs analysis that will focus on three sectors which are Sesame Seed, Cocoa and Cashew nut as pilot products.

    The same strategy would also be applied in developing other products.

    The  programme is currently training NEPC Coaches and a group of objectively selected companies drawn from the Sesame Seed, Cocoa and Cashew sub-sectors who are focused to improve the contribution of the non-oil export sector to the economy of Nigeria.

    However, the emphasis is on training farmers, processors and exporters as a whole in the entire products value-chain with a view to improving productivity, including establishing a sustainable local processing capacity, for the purposes of exports.

    It is also understood that the Council facilitated a credit facility for Foodpro, an Ilorin based Cashew manufacturing company to procure cutting-edge equipment and machines for Cashew processing.The objective is to boost cashew export and make the product competitive in the international market.

    The NEPC had in 2016, spearheaded the participation of Nigerian Cashew Processors to World Cashew Convention in Singapore to expose stakeholders to new technologies which would result in increased value addition, inclusive growth and job creation.

    Interestingly, it was learnt that plans have been concluded for Innoson Motors Limited to export 400 vehicles to Mali following the company’s readiness to sign Memorandum of Understanding with Taxi Plus and VIP – two major transport companies based in Mali, for use in the expansion of transport business in that country.

    This, which is seen as a key achievement, is as part of the outcome of the “Made-in-Nigeria ProductsExhibition” held in Bomako.

    . The Exhibition was facilitated by NEPC in collaboration with Ginco Group, a Nigerian firm based in Mali to showcase Nigeria’s exportable products.

    With the support of the Federal Ministry of Industry, Trade and Investment, NEPC and ITC launched the ‘SheTrades’ initiative during Women in Export Stakeholders Forum and Exhibition in Abuja on July 13, 2016.

    The programme seeks to connect one million women entrepreneurs globally by 2020.

    It is believed that through the forum Nigerian women will be established as part of ongoing efforts to empower women to drive trade-led development.

    Kurebe, a social critic sent in this piece from Abuja