The Nation Newspaper

Tag: growth

  • ‘Global partnership vital to agencies’growth’

    It is  necessary for agencies to look for other global  counter-parts to enable them attain their vision, the Group Managing Director of Noah’s Ark, Mr Lanre Adisa, has said.

    Citing the decision of Noah’s Ark to partner Dentsu Aegies Network (DAN), a leading global advertising firm, he said it was pertinent for agencies yearning for growth and global recognition to get out of local market through affiliation whose partnership would enable them attain the vision for which such local agencies were set up.

    Speaking at the signing of a partnership agreement between Noah’s Ark Communications and Dentsu Aegis Network (DAN) in Lagos, Adisa said the decision of Noah’s Ark to go into partnership was informed by the need to further widen its horizon and entrench the young creative agency in the global advertising space.

    Adisa said the partnership would see Noah’s Ark being the creative partner to Media Fuse Dentsu Aegis Network (MFDAN), consisting of the  global agency, DAN and its local media affiliate, the Media Fuse.

    He explained that the agency had been able to achieve milestones since it was set up eight years ago, one of  which was being the first agency in the country and West African sub-region to be featured in the renowned Lurzer’s Archive, in 2012.

    He, however, expressed the belief that the agency’s partnership with DAN, would go a long way in enhancing the global status of the agency and help DAN establish its presence in the local advertising space.

    “Dentsu is one of the top global holding companies in the advertising world. It is on record that it is the fastest growing of our top players today. Right from our first contact, we were humbled by their respect for our brand.

    “With this affiliation, we will be having Media Fuse Dentsu Aegis Network (MFDAN) as our media partners while we also become their creative partner in this market. For our clients, this amounts to having the best of both worlds,” he added.

    Chief Executive Director, Sub-Saharan Africa, Dentsu Aegis, Mrs. Dawn Rowlands, said the choice of Noah’s Ark Communications was informed by the level of energy of the Noah’s Ark’s team, its cohesiveness and the availability of an environment that drives creativity.

     

  • LASU VC: education key to national growth

    LASU VC: education key to national growth

    LAGOS State University (LASU) Vice Chancellor Prof Olarenwaju Fagbohun has canvassed good education for youths and governance as panacea for national development.

    Fagbohun, who was guest speaker at the installation of Lanre Akintilo as president of Rotary Club of  Gbagada in Onikan, Lagos recently, noted that education could galvanise youths for development since ‘’they are the greatest assets of a nation’’. He said youths have enormous energy, do protest the present and have no fear about the future. He urged the youth to embrace education and use their abilities and training to tackle the challenges facing the country.

    Speaking on Education, youth and national development –redefining the future of Nigeria, Fagbohun said: “Education develops the personality of the individual and significance of his life to himself and to others. With the right education, our youth will be empowered to pierce the curtain of the future and give shape and usage to mysteries still in the womb of time. Getting governance right is the key to ensuring that our youth positioned to contribute to national development.’’

    The professor of Environmental Law said since the adults, who are leaders today, were yesterday’s youths, they had failed us, noting that the youths could not contribute meaningfully  to national development because they have been neglected by the leaders and this had  led to their frustration and despondence. He added: “I am convinced that the situation is not helpless and that, indeed, there is so much that we can do to bring about desired changes.’’

    Fagbohun called for good governance, adding that Nigeria’s problems were caused by bad administration over the years. Good governance, he said, translates to respect for rule of law, human rights, transparency, lack of corruption, effective institutions, conflict resolution mechanism, among others. ‘’When good governance is enthroned, it will bring together the cooperation of the public sector, the business community, civil society and organisations like Rotary,’’ he added.

    He said governance would assist the government to have in place frameworks for managing its problems and move the country forward. He called for strategic governance that would encourage policy experimentation and learning and push the ministries, departments and agencies to be inclusive, transparent and accountable.

  • Town planners blame lack of planning for retarded growth

    Lagos State Chapter of the Nigerian Institute of Town Planners (NITP) Chairman, Mr. Anifowoshe Abiola, has said the inability of governments and stakeholders to match economic planning with physical planning is responsible for lack of opportunities for wealth creation in the country.

    Abiola, who spoke at a briefing on the 50th anniversary of the NITP, also rued the absence of  proper and professional planning, saying such omissions led to the arbitrary development of cities and towns.

    He blamed stakeholders and governments for the misnomer.

    He said if Nigeria paid more attention to physical planning, it would have an improved economy with more opportunities for wealth creation, disclosing that Lagos  has a comprehensive Master Plan to guide physical development in the next 25 years.

    Abiola, also the Commissioner for Physical Planning and Urban Development in Lagos State,  said  the key objectives of NITP centred on advancement of public awareness of the importance of living and working environments,  with the inclusion of advancement of town planning education, training, research and practice.

    He said: “As professionals, we have for many years been emphasising the benefits/values of orderliness, well planned communities, not only for the health of the citizenry, but also for their economic well-being.

    “This, we believe, will be better achieved if and when economic planning at state and federal government levels is treated as mutually exclusive.”

    NTIP past president, Dr. Bunmi Ajayi, said there had been plans to guide cities’ development, but that lack of finance to  implementation  them has been a challenge.

    “If the government fails to commission plans, there is nothing any town planners can do,” he said.

    Another former president of the institute, Mr. Remi  Makinde, chronicled the achievements of town planners  since  the inauguration  of NITP. According to him, they initiated  plans for the development of FESTAC Town, Satelite Town, Gowon Estate, Ipaja Low cost housing, formation of Federal Environmental Protection Agency and development of  Abuja as a new federal capital among others

    In Lagos State, Abiola said the institute offers advocacy and interfacing with public sector towards mapping out policies, laws and regulations.

    “As we celebrate 50 years of planning profession in Nigeria, we have resolved to continue to play the lead role in stimulating efforts to promote habitable settlements,” he said.

  • ‘How to achieve security, growth’

    A development expert, Dr Kwesi Aning, has called on African nations to allow state structures and institutions abide by rules and procedures to develop the continent.

    Aning made the call while delivering a lecture in honour of notable historian Prof. Akanmu Adebayo, at the University of Ibadan, yesterday.

    Aning is the director of the Faculty of Academic Affairs and Research, Kofi Annan International Peacekeeping Training Centre (KAIPTC), Accra, Ghana.

    Organised by the Global-Africa Development Network, Aning spoke on the topic: “Negotiating the West African Conundrum: Developing Society through Human Security and Social Justice.”

    His paper analysed the interconnected concepts of huaman security and social justice as indicators in measuring development, with focus on Africa as a developing economy.

    The model of human security, he said, forms part of a larger process highlighting the obligation of governments to protect human freedom.

    “It reinforces existing development frameworks as human rights-based, and sustainable development approaches, by looking at the wide array of situations threatening the survival, livelihood and dignity of people. At the same time, it considers issues of development, rule of law and democracy as broader critical components of understanding human security and how these translate into socio-economic justice. However, for such development to translate into social equity and justice, state structures and institutions should abide by rules, procedures and principles as a prerequisite for societal transformation and development in Africa,” Aning concluded.

    Prof. Oludayo Adesina, who chaired the confrence’s Local Organising Committee, said the conference was in honour of a foremost African scholar, whose works reflected the increasingly important need to understand the African experience in its interlocking dimensions.

    Responding, Adebayo hailed the organisation for organising the conference in his honour.

    He thanked friends and associates for the encomiums poured on him, stressing that the pressure of work made him look like a hard person to some of his former students.

    At the event were the Oluwo of Iwo, Oba AbdulRasheed Adewale, judges, academics from foreign countries as well as friends and well wishers.

  • May & Baker Nigeria sustains steady growth in first half

    May & Baker Nigeria Plc rode against the industry and macroeconomic headwinds to sustain appreciable growth in its performance in the first half of this year as the healthcare group continued to benefit from improving cost and operating efficiencies.

    Against the general decline in revenue and profitability by most companies that have released their earnings reports, key extracts of the interim report and accounts of May & Baker Nigeria for the six-month period ended June 30, 2016 showed that turnover rose by nine per cent.  The group results showed that turnover rose to N3.70 billion in first half of 2016 compared with N3.41 billion in first half 2015.

    The company sustained growth in pre and post-tax profits.  It reduced its finance cost and distribution, sales and marketing expenses by 10 per cent and 12 per cent respectively. However, cost of sales grew by 16 per cent  from N2.25 billion to N2.60 billion due to increases in materials’ costs, devaluation of the Naira and high power cost driven by rampant gas outages. This affected gross profit, which reduced from N1.16 billion in first half 2015 to N1.1 billion in first half 2016.

    Nigeria’s inflation rate has risen consistently to 16.5 per cent while the devaluation of Naira from N199 to a dollar had pushed the exchange rate above N300 per dollar.

    The company continued to benefit from management’s focus on overall operational efficiency. While administrative expenses rose on the back of the jumpy inflation from N263.45 million to N309.48 million, distribution, sales and marketing expenses dropped by 12.4 per cent from N583.20 million to N510.84 million. With these, total operating expenses declined to N820.31 million in first half 2016 as against N846.65 million in first half 2015. Finance costs reduced from N284.38 million to N255.80 million.

    With these, profit before tax rose to N44.25 million in first half of 2016, against N43.73 million recorded in comparable period of 2015. Profit after tax also increased from N29.73 million to N30.09 million. Earnings per share thus improved from 3.03 kobo in first half 2015 to 3.07 kobo in first half 2016.

    This commendable first-half performance has raised the prospects of good returns in the ongoing business year. The company had increased total dividend payout by 20 per cent to N58.8 million, for the 2015 business year compared to what it paid for 2014 business year.

    Managing Director, May & Baker Nigeria Plc, Mr. Nnamdi Okafor, had told shareholders at the 2016 Annual General Meeting (AGM) that management would remain focused on improving the performance of the company in spite of the challenges in the macro economy.  He assured that the company will remain focused on its long-term goal of building a virile and diversified business that can ensure good competitive long-term returns to the shareholders.

    The increase in sales and bottom-line shows the resilience of the underlying fundamentals of the company and the success of ongoing management’s initiatives aimed at optimising the synergies from its recent investments.

    Also, reviewing the outlook for the company recently, chairman, May & Baker Nigeria Plc, Lt. Gen. Theophilus Danjuma (rtd), told shareholders that the company was set to break new grounds and enhance the value of their investments.

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

  • Dangote Cement outlines plan for profit growth

    Dangote Cement outlines plan for profit growth

    Dangote Cement Plc would shift to coal as a stable energy source, increase the group’s production capacities with the opening of new cement plants and enhance its domestic and international supply as part of a multi-prong approach to improve its performance in the period ahead.

    At the presentation of the underlying facts on the operations of the cement group yesterday at the Nigerian Stock Exchange (NSE), chief executive officer, Dangote Cement Plc, Onne Van der Weijde, outlined the strategic initiatives being taken to improve the profitability of the cement group.

    He spoke against the background of the half-year results of the group for the period ended June 30, 2016. Key extracts of the group results showed that turnover rose to N292.19 billion in first half 2016 as against N242.22 billion recorded in comparable period of 2015. Profit before tax however dropped to N124.89 billion in first half 2016 as against N128.73 billion recorded in comparable period of 2015. After taxes, net profit declined from N121.81 billion to N103.42 billion.

    Van der Weijde said the cement group would start 100 per cent coal production in September 2016 in an attempt to overcome the shortage of gas supply and reduce the challenge of foreign exchange (forex).

    According to him, the company had decided three years ago to diversify and de-risk fuel supplies by opting for coal mills as energy sources, with the coal mills now ready for operation by end of September 2016.

    He said switching to coal would improve margins compared with Low Pour Fuel Oil, improve fuel security, eliminate shutdown as 100 per cent coal use will be possible across all lines and reduce forex need for imported fuel.

    He added that the some of the company’s plant in Obajana in Kogi State and Ibese in Ogun State have already started using locally purchased coal blended with imported coal to assure optimal quality for their operations.

    “We will begin mining our own coal at Ankpa in Kogi State in fourth quarter,” Van der Weijde said.

    He noted that klin fuel is the major cost of cement production, pointing out that the group margins are affected by the inefficiencies in the fuel mix.

    He assured that in the second half, the group expects strong volume growth with Ghana likely to import more cement from Nigeria while simultaneously focusing on protection of margins in Nigeria with more coal facilities in Nigeria coming on stream and increased exports to ECOWAS countries.

    He said the groups’ Congo plant is set for operation in October 2016 while the Sierra Leone plant is expected to ready by October 2016.

    Chief executive officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema commended Dangote Cement as a dominant player in the industrial goods sector, noting that the cement group has continued to solidify itself as an innovative brand in this sector.

  • Infrastructure key to GDP growth, says BoI

    Infrastructure key to GDP growth, says BoI

    The Bank of Industry (BoI) has said an improvement in infrastructure across the country is capable of leading to double digit growth in the country’s gross domestic product (GDP).

    Its acting Managing Director, Mr. Waheed Olagunju, said if the country could record a GDP per capita income of $233.5  with less than 4,000 megawatts (Mw) of electricity, when power supply is improved to about 20,000 Mw, the GDP would hit double digit GDP.

    “It is possible and doable for our GDP to grow at double digits, because in the first half of this decade, Nigeria was among the 10 fastest growing economies in the world with a GDP growing at between five and seven per cent per annum, when the economy was driven by less than 4,000Mw of electricity,” he said.

    Speaking in Lagos during members’ evening with the Institute of Directors (IoD) Nigeria, he said in the 70s, indices clearly showed that Nigeria was ahead of China, saying GDP per capita then stood at $233.5 while China’s was $111.82. He said China is currently ranked second in the world.

    “We were ranked 88th in the world while China was 114th and by 2014, over a period of 40 years, China had overtaken Nigeria. Nigeria is blessed with so many natural resources, but have continued to depend on only one product over the years,” he said.

    He added that the country has everything required to become a great, stating that in the last 56 years, the nation has underperformed while other countries with less resources have done much better because they placed priority on industrialising their economies.

    According to him, Nigeria  has found itself where it was some years ago in 1986 when the Structural Adjustment Programme (SAP) was launched. According to him, Nigeria has been talking about diversification adding that the shocks experienced back in the years is what the nation is currently experiencing.

    “It shows that as a country we have learnt nothing over 30 years and this is why we are suffering from, but I believe we are now poised to make a change,” he said.

    He said if Nigeria can increase its electricity supply to about 20,000Mw per annum, the nation’s GDP will grow at double digits.

    He said the country is still faced with infrastructural challenges and cannot industrialise without an adequate power supply and infrastructural facilities. Olagunju pointed out that businesses spend up to 40 per cent of their operating expenses on alternative power supply to run their businesses.

    He said the mission of the Development Finance Institution (DFI) is to transform the nation’s industrial sector by providing suitable financial services to finance Nigeria’s industrialisation, saying the country should leverage areas where it has comparative advantages to drive its industrialisation efforts.

    He added that Nigeria has no business importing food to feed itself, pointing out that if Nigeria adds value to its natural resources, it should be able to feed Africa and even beyond.

    “We currently import food and one of the parameters for measuring the growth of a country is the extent to which the country is self reliant, but where we are externally dependent to feed ourselves, this means we are very vulnerable,” he said.

    Also speaking at the event, the president and Chairman,  Governing Council, Mr. Samuel Akeju, said the DFI represents the real acting agents of industrialising Nigeria, saying that BoI has continued to reflect the change needed to revolutionise the industrial sector of the economy.

    He said industrialisation is vital to achieve economic growth, adding that the institute identifies with the present administration’s renewed efforts to develop the non-oil sector of the economy through its different initiatives.

  • Fidson optimistic on future growth despite first-half slowdown

    Fidson optimistic on future growth despite first-half slowdown

    The management of Fidson Healthcare Plc has reassured that the healthcare company remains on the path to attaining significant growth in the near future as its focus on its strategies for market expansion, brand building and opportunities that exist through local and international partnerships would lead to better returns for shareholders.

    Against the background of 32 per cent decline in the company’s turnover in the first half of this year, the company stated that the low sales figure was as a result of unavailability of products, a direct consequence of the scarcity of foreign exchange shortage experienced by the manufacturing sector during the period.

    According to the management, Fidson only accessed 30 per cent of its foreign exchange needs in the first six months of the year. The paucity of foreign exchange, for the importation of products and essential raw materials, and macroeconomic headwinds were disruptive to the manufacturers in the pharmaceutical industry including the company’s business.

    Key extracts of the six-month half-year report for the period ended June 30, 2016 showed that sales dropped by 32 per cent from N4.032 billion in first half 2015 to N2.61 billion in first half 2016. Profit-after tax also declined to N39.582 million in 2016 as against N324.206 million recorded in the comparable period of 2015.

    Fidson stated that its cost optimisation strategy, which it embarked on a couple of years ago, continued in 2016 in line with the strategy to drive efficiency in the face of a challenging business environment.

    The management noted that the strategy saw Fidson reducing its operating cost by over 60 per cent in the period under review, assuring that the company will continue to drive efficiency into its processes, which will continue to result in savings on administration expenses.

    Fidson’s growth strategies are premised on the recent move to the company’s new World Health Organisation Good Manufacturing Practice (WHO-GMP), where local production recently commenced. The newly completed state-of-the-art facility will provide several benefits including increased profitability, increased efficiency from economies of scale, increased product offerings as well as job creation with an additional 300 jobs expected to be created.

    Aside from increasing production capacity, the new factory would enhance the company’s business prospects by enhancing its ability to tender for WHO sponsored programmes, which Nigerian pharmaceutical manufacturers are unable to access, losing out to foreign companies in these tenders.

  • ‘Lack of data slows Nigeria’s growth’

    The absence of a proper record and data management has been described as one issue undermining economic and social development in Nigeria.

    Chief Executive Officer of Havilah Merchants Limited and Havilah Storage Limited, Mr Lanre Adesuyi said this at the product launch of Bruynzeel storage systems and solutions in Lagos.

    According to Adesuyi, the failure of government and the citizens to keep and manage records is one reason why Nigeria cannot develop.

    “Nigerians need to effectively manage data and information. Some individuals do not even know how to keep personal records, let alone accessing public records”, he said.

    According to him, these problems and challenges are the core reasons why Havilah has taken up a mission to make information management and storage accessible to all.

    “The need to proffer genuine solutions to this problem is why we decided to partner Bruynzeel, the leading storage systems and solutions company in the world. Our partnership is strategic and that is why we are going to offer private and public institutions the best in storage technology from Bruynzeel”

    Adesuyi confirmed that this is the first time that Bruynzeel is coming to this part of Africa and that Havilah Merchants Limited is the sole distributor and technical partners of Bruynzeel in West Africa.

    Rob Reijnen, Global Export manager of Bruynzeel, said Nigeria is key to the company’s global growth and that Havilah is a strategic partner to this expansion.

    He assured potential customers of Bruynzeel’s determination of delivering the best to its customers.

  • SMEs get $5m boost from growth fund

    A Group Co Creation Hub has earmarked $5 million to support Micro, Medium and Small-Scale Enterprises (MSME) over the next two years.

    Speaking with The Nation during the Social Change Summit in Lagos, the Managing Partner, Tunji Eleso said the fund would help facilitate increased access and availability of financing for MSME working to use technology to improve public services.

    He, however, added that only existing SMEs with potential to generate revenue will benefit from the fund.

    According to him, applying individual organisation can get between $50,000 and $500,000.

    He explained also that organisations seeking bigger funding will be supported to present their allocations as counterpart funding to attract other funders.

    He  expressed hope  that the  fund would not only support the objectives of stimulating more diversified and inclusive growth,  but it would also help alleviate the financing constraints that have hampered the growth of  tech companies seeking to expand their  innovational by filling the current financing gaps.

    Earlier, he stressed that SMEs in technology and innovation business are an important driver for growth. He further pointed out that, access to funding is perceived by smaller businesses as a major constraint.

    Eleso, also Director, Pre-Incubation, CcHUB said there are foreign investors ready to invest seed and growth capital in innovative technology businesses with the ambition and potential to become market leaders.

    He  added that there are numerous organisations around the world that are ready to work  with entrepreneurs, adding that his organisation is determined to unleash the full potential of technology to aggregate and connect portfolios of green that have viable projects.