The Nation Newspaper

Tag: investment

  • Stakeholders seek investment in retail malls

    Stakeholders in the real estate sector have called for greater investment in retail malls. The call is coming against the backdrop of a report that showed that demand for space for retail malls in the country has increased by 905 per cent in the last 10 years.

    The call, according to them, is necessary considering that the sector has had a turbulent time since last year, leading to a lull in housing development.

    Broll Nigeria Chief Executive Officer, a real estate services company, Mr. Bolaji Edu, who gave the percentage at a roundtable to discuss the growth prospects in the retail industry, observed that from just two modern shopping malls sitting on 30,000 square metres in Lagos, the retail arm of the sector has grown to over 300,000m2 last year and is projected to reach 301,780m2 by this year end. And despite the current economic challenges, the retail arm still offers more growth and opportunities. The event was tagged: “Retail Industry: 10 Years from Now.”

    “The last 10 years have seen a boom in retail real estate and the country now boasts of over 300, 000m2, which represents a 905 per cent growth,” Edu said.

    Although there are challenges to malls development in the country, especially in terms of prospects of turnover, funding, slow take-up rate, and restricted access to foreign exchange (forex), as well as the ban on items directly linked to real estate from the official forex window, and weakening naira on the black market, among others, real estate experts still believe that the retail arm of the sub sector offers vast opportunities for employment generation. One of them is Head, Real Estate Finance, West Africa, Stanbic IBTC, Mr. Adeniyi Adeleye, who urged prospective investors to have confidence in the retail arm of the industry.

    Adeleye’s position was supported by the submissions of the Retail Portfolio Executive, Broll Nigeria, Mr. Gavin Cox. According to Cox, over the next six to 12 months, there will be little growth in rents because  retailers will have to struggle under the current economic situation, while demand for rental space is expected to fall until the business environment improves for retailers.

    “Future development must look at new designs and how they are put together as well as energy efficiency. We also have to make case for smaller malls,” Cox said.

    Speaking from a developer’s perspective, the Development Manager, Nigeria, RMB Westport, Mr. Wallace Wilkins, observed that there remains huge growth prospect in the sector, but the challenges to be addressed included infrastructure; supply chain; finance, especially repatriation of proceeds; and bringing the right retailers on board.

    But in spite of this growth, the Director, Actis, an investment company, Mrs. Funke Okubadejo, however, said the penetration of the retail segment had been very low. She noted that stakeholders in the industry must educate people on what retail is, so as to change their perspective on retail space, considering that other countries see retail as a huge investment for job creation.

    The one-day event focused on the emerging trends in the intersection of the dynamic interplay of developers, retailers and financers in running their operations in a symbiotic model that results in a win-win situation for every party.

  • Investment for Green Card seminar holds in Lagos , Abuja

    Do you have $500,000 that you will like to invest in the United States of America?

    A seminar will hold in Lagos and Abuja to educate Nigerians on how to invest their money and get Green Card and other benefits.

    A statement by the organisers reads: “With the aim of providing the best choices of livelihood to residents in Nigeria who seek for laudable opportunities to enact a formidable transformation in their future, American company, EB-5, has decided to bring the EB-5 Investment for Green Card programme to Lagos and Abuja.

    “The free workshop is targeting high network Investors willing to diversify their portfolio by investing the sum of 500,000 dollars in the markets of the USA, which includes real estate, hotels, farming and other great investment areas.

    “Apart from the fact that it gives you directional purpose in a land full of immeasurable opportunities, your decision to make this investment gives you laudable benefits, of which the most alluring is that you get to receive Green Cards/Citizenship for yourself  and all members of your household.

    “While the foreign investors get the income from their investments, their children also get to attend American schools like residents and be eligible for scholarships and grants like American citizens. The business person will also be eligible to build business credit and get loans from America at ridiculous rates over time.

    “EB-5 Investment for Green Card seminar would be holding in Lagos on Thursday 7th July, at Oriental Hotel and Sheraton Hotel on Thursday, 14th July, for the Abuja seminar.

    “The facilitators that feature Jessica Carrello, Director of EB-5 Relations from Chicago, as the keynote speaker, will go over the details of this program in the way that opens your mind more to the opportunity that awaits you. Dr Ope Banwo, would also be explaining the legal issues and how to navigate the programme successfully. To participate, visit www.greencardseminars.com.”

  • Shell spends $195.5m on social investment in Nigeria

    Shell spends $195.5m on social investment in Nigeria

    The Managing Director, Shell Group of Companies in Nigeria, Osagie Okunbor, yesterday said the group spent no less than $195.5 million on social investments in the country last year.

    Okunbor, who is also Shell Country Chair, disclosed this in an interactive session with reporters in Lagos.

    He said the amount made Nigeria the largest concentration of social investments spending in the Shell Group.

    He said that $145.1million of this amount was paid to the Niger Delta Development Commission (NDDC) as required by law.

    “Another $50.4 million was expended on social investment projects by the Shell Petroleum Development Company of Nigeria (SPDC) Limited operated by Joint Venture and Shell Nigeria Exploration and Production Company (SNEPCo).’’

    According to Okunbor, these spend-levels have not come about by accident.

    “Shell and its partners believe they can make a real difference in the lives of Nigeria, and we have targeted our investments at the community and enterprise development, education and health.

    “Of course, we cannot take the place of government but we are keen to play our part in the development of a country we’ve been part of for more than 50 years,’’ he said.

    The country chair said that the Shell Group would continue with its contributions to developing the country’s human and contracting capacities.

    He said that $900 million had also been spent on local contracting and procurement.

    According to Okunbor, ownership of key assets such as rigs, helicopters and marine vessels is a key focus of these efforts to support Nigerian community contractors?.

    He said that Shell Companies in Nigeria were also actively involved in the development and utilisation of natural gas, pioneering its production and delivery to domestic consumers and export markets.

    “Although, the SPDC JV’s market share of domestic gas has reduced through a series of divestment since 2010.

    “This has enabled Nigerian companies to play a more strategic role; Shell companies still remain a crucial part of the national gas energy mix.

  • ‘Investment in agric can create jobs for youths’

    An octogenarian, Pa Emmanuel Osunwo Remi-Williams, has urged the government to tackle youth unemployment by investing in agriculture.

    In an interview, he said the perennial problem of the country is unemployment and  this could be solved through a recourse to farming

    Pa Remi-Williams said the federal and state governments should study the blueprints adopted by the late premier of the Western Region, Chief Obafemi Awolowo.

    He said Awo, as the late sage was popularly known, solved youth unemployment then by acquiring vast areas of land in Apoje on the outskirts of Ijebu Igbo, which were devoted to palm tree plantation.

    To encourage young school leavers to work on the farms, he said Awo gave the youth good welfare packages, including salaries. “People were enticed with bicycles, the most senior ones with motocycle. Other areas were earmarked for cocoa and cassava planting. Salary scale was good and very encouraging. Education was one of the cardinal points of the government. Free education was introduced in 1955. It was a six-year programme, after secondary modern school. Most of these youth took to agriculture instead of white collar jobs,’’ he said.  According to him, the government used the money it made from agriculture to build its education programme and build skycrappers, such as the Cocoa House in Ibadan.

    Also, Pa Remi-Willaims said during the Second Republic, the Unity Party of Nigeria (UPN) also used agriculture as  cardinal programme.

    He cited former Lagos State governor Alhaji Lateef Jakande who acquired land in Epe for rice plantation to buttress his point. He said many Nigerians were willing to return to the farms if given the right incentives.

    He said his call became imperative as the country’s economic earnings from its mono-product declines daily, warning that there might be more problems ahead if an alternative was not sought, especially for the youth.

    Since the idle mind is the devil’s workshop, he said the youth should be engaged.

    He however, did not support the idea of giving tools to the young to stand on their own, saying they lack the experience and that not everyone could be an entrepreneur.

  • Shell mulls $30b yearly investment

    Shell mulls $30b yearly investment

    The Royal Dutch Shell yesterday said its yearly capital investment will be between $25 billion and $30 billion from this year through to 2020.

    Its Chief Executive Officer, Ben van Beurden stated during the firm’s 2016 capital markets with  Re-shaping Shell to create a world class investment case’as its theme.

    He said: “Capital investment will be in the range of $25-$30 billion each year to 2020, as we improve capital efficiency and ensure a more predictable development funnel for new projects. Investment for 2016 is expected to be $29 billion, excluding the purchase price of BG, some 35 per cent lower than the pro-forma Shell-plus-BG level in 2014.

    “In the prevailing low oil price environment we will continue to drive capital spending down towards the bottom end of this range; or even lower if needed. In a higher oil price future we intend to cap our spending at the top end of the range.

    “New project start-ups since end-2014 should contribute some $10 billion of annual cash flow by 2018. Investment delivers new, profitable projects for shareholders.

    “Programmes to sustainably reduce operating costs are in place across the company; we expect to reach a run-rate of $40 billion of underlying operating costs at the end of 2016, some 20 per cent lower than the 2014 pro-forma level for Shell-plus-BG with potential for further cost reduction.”

    He noted that asset sales, as planned, are expected to be $30 billion for 2016-18, adding that “we have earmarked up to 10 per cent of Shell’s oil and gas production, including five to 10 country exits, for disposal. We expect to make significant progress on the first $6-8 billion of this programme in 2016.”

  • ‘We’re targeting $1b investment in Nigeria’

    Foreign exchange (forex) crisis is not a disincentive for serious businesses interested in making huge investments in the Nigerian economy, Chairman of East Hem Liquids, Ed Ukaonu, has said.

    Speaking at the unveiling of the ‘Last Shot’, a premium recovery and detox drink that helps prevent hangovers after a period of alcohol consumption into the Nigerian market, he said his company will make over $1 billion investment in the economy in the coming years, to foster economic development for the country.

    The entrepreneur explained that apart from helping  toprevent hangovers after a “night out”, the product helps in rehydration after a ‘work out’ or a long active day”. Continuing, he re-affirmed that the product detoxifies your body and makes you feel good all day and night”.

    Explaining how this complete sugar- free drink works as a recovery drink, Ed noted that   it contains key ingredients such as Glucorate which is found naturally in fruits and vegetables, along with other vitamins like B12 that helps remove toxins in the liver.

    This, he said, allows the body to detox naturally and helps prevent cell damage and dehydration associated with “playing hard”. Frequent restroom use after drinking alcohol can deplete your body of electrolytes needed to keep your muscles and nervous system running”.

  • Investment confab by ICC court of arbitration coming

    The first International Chamber of Commerce’s (ICC) Africa Regional Arbitration Conference holding next month in Lagos, will focus on investment opportunities in emerging markets, the organisers have said.

    The three-day conference themed: “Arbitration and Africa – Prospects and Challenges”, will focus on the relationship between inward foreign investment in emerging African markets, types of disputes and the African experience in resolving investments and other business disputes by arbitration.

    The President of the ICC International Court of Arbitration Paris, Alexis Mourre, has been confirmed to attend the conference, which has the backing of the Nigerian Bar Association (NBA).

    The event, which starts on June 19 to end on 21, will see Mourre delivering the keynote speech alongside the NBA President, Augustine Alegeh.

    The conference avails participants an experience sharing platform to a veritable audience including CEOs of multinationals and organisations investing in Africa, as a backdrop to subsequent discussion on relationship between arbitration and investment.

    Conferring to the Vice Chair host committee Tunde Fagbohunlu, the conference, which is the first of its kind in Africa, anticipates a good turnout of delegates. It will provide an indispensable update on development in African region and is the most important gathering for African arbitration community. Not only does the conference offer a line-up of top-class experts, topical issues and relevant discussions, it is also an excellent opportunity for networking.

    Other confirmed participants are  Monica Mbanefo, former Director, International Maritime Organisation (IMO), United Nations, Sami Houerbi, Director, ICC Dispute Resolution Services for Eastern Mediterranean, Middle-East & Africa, among others.

  • Sterling Bank backs Ogun investment forum

    Sterling Bank backs Ogun investment forum

    As part of its drive to partner stakeholders in the growth of the nation’s economy both at the state and national levels, Sterling Bank has announced its sponsorship of the third edition of Ogun State Investment Forum.

    The theme of the two-day event, starting from today, is “Ogun State: Open for Business- Emerging Economic Powerhouse”.

    It would be recalled that the Bank also sponsored the 2014 edition of the programme and stood out as a major partner with other state governments, especially in the area of education and economic development. Last year, the Bank presented an e-library to the College of Education, Ikere-Ekiti in Ekiti State and commissioned co-branded verve/identity cards, which serve as access control system and identity management solution for staff and students of Benue State University in Makurdi.

    Also, in line with the plan of the Federal Government to diversify the economy owing to the declining revenue generated from crude oil exports, Sterling Bank has remained committed in supporting production and consumption of locally made goods and services by assisting local manufacturers with the introduction of the “made in Nigeria” week and its partnership with Innoson Motors; the first in the manufacturing of locally made vehicles.

  • Investment in financial technology to exceed $150b in five years 

    •‘Nigeria threatened by FinTech companies’

    Cumulative investment in financial technology (FinTech) globally could exceed $150 billion within the next three to five years, according  to a survey by auditing giant Pricewater House Corper (PWC).

    The survey said  financial institutions and technology companies are stepping over one another for a chance to get into the game titled.

    FinTech, according to experts, refers to any innovation on how people transact business. It applies to the segment of the technology startup scene that is disrupting sectors such as mobile payments, money transfers, loans, fundraising, and even asset management.

    The report, “Blurred Lines: How FinTech is shaping Financial Services”, said traditional Financial Services (FS) firms fear almost a quarter of their business is at risk from FinTechs. It said FinTech companies are more bullish, believing they could capture a third of incumbents’ business.

    The report, made available to The Nation, added that Nigeria is just as threatened by FinTech companies as their global counterparts. It, however, said it expects Nigeria to leap frog and adopt the rapidly changing technologies as they emerge, driven primarily by consumers’ demands.

    The report, which featured the responses of 544 CEOs, Heads of Innovation, CIOs and top management involved in digital and technological transformation across the FS industry in 46 countries, said incumbents believe 23 per cent of their business could be at risk due to further development of FinTech.

    Results from the PwC survey, which assessed the rise of new technologies in the FS sector and their impact on market players, also revealed that 83 per cent of respondents from traditional FS firms believe part of their business is at risk of being lost to standalone FinTech companies, reaching a staggering 95 per cent in the case of banks.

    The survey showed the banking and payments industries are feeling the most pressure from FinTech companies. Respondents from the fund transfer & payments industry anticipate that in the next five years, they could lose up to 28 per cent of their market share to them, while bankers estimate they are likely to lose 24 per cent. This compares to around 22 per cent in the case of asset management & wealth management and 21 per cent in insurance.

    Two-thirds (67 per cent) of FS companies ranked pressure on profit margins as the top FinTech-related threat, followed by loss of market share (59 per cent). One of the key ways in which FinTechs support the margin pressure point through innovation is step function improvements in operating costs. For instance, the movement to cloud-based platforms not only decreases up-front costs, but also reduces ongoing infrastructure costs. 

    Blockchain, a distributed ledger technology, represents the next evolutionary jump in business process optimisation technology. According to PwC, it could result in a radically different competitive future in the FS industry, where current profit pools are disrupted and redistributed towards the owners of new, highly efficient blockchain platforms. Not only could there be huge cost savings but also large gains in transparency. Yet it ranks low on the agendas of participants.

    While the majority (56 per cent) recognise its importance, 57 per cent say they are unsure or unlikely to respond to this trend. ”When faced with disruptive technologies, the world’s leading companies succeed by rapidly weaving them into their DNA, as part of their ‘business as usual’ process,” says Partner and Financial Services Advisory leader at PwC Nigeria, Dr. Andrew S Nevin.

    Nevin added: “Blockchain and disruptive ledger technologies offer a once-in-a-lifetime opportunity for FS companies to transform the way they do business. In our view, the lack of understanding of blockchain technology and its potential for disruption poses significant risks to existing business models and the firms that do not take the time to understand the impact will underestimate the opportunities and threats that blockchain can provide.”

    To put this into perspective, PwC’s Global Blockchain team has identified over 700 companies entering this space, 150 of whom it says are ‘ones to watch’ and 25 of which it expects will likely emerge as leaders.

    The PwC’s survey showed the most widespread form of collaboration with FinTech companies is joint partnership (32 per cent), which PwC said is indicative FS firms are not ready to go all in and invest fully in FinTech.

    Asked what challenges they face in dealing with FinTech companies, 53 per cent of incumbents cited IT security, regulatory uncertainty (49 per cent) and differences in business models (40 per cent).

    In the case of FinTech companies, differences in management and culture (54 per cent), operational processes (47 per cent) and regulatory uncertainty (43 per cent) were deemed the top three challenges when dealing with traditional FS firms.

    On the survey, EMEA FinTech Leader at PwC, Mr. Steve Davies, said: “FinTech is changing the FS industry from the outside. PwC estimates within the next three to five years, cumulative investment in FinTech globally could well exceed $150b.

    As the lines between traditional finance, technology firms and telecom companies are blurring, many innovative solutions are emerging and there is clearly no straight forward solution to navigate this FinTech world.” 

    For PwC Global Financial Services FinTech Leader, Mr. Manoj Kashyap, “FinTech is shifting the paradigm of traditional intermediary roles by making them obsolete. While FS organisations have acted as intermediaries in the financial system by providing an invaluable service to clients, their functions are being usurped by new technology-driven business models.

    “Given how fast technology is developing, incumbents cannot afford to ignore FinTech. Nevertheless, our survey has shown that a non-negligible 25 per cent of firms do not deal with FinTech companies at all. With the pace of change now occurring at increasingly faster intervals, no FS business can rest on its           oars.”

    Nevin concludes: “Nigeria is just as threatened by FinTech companies as their global counterparts. We expect Nigeria to leap frog and adopt the rapidly changing technologies as they emerge, driven primarily by consumers’ demands.”

  • Govt, UNIDO partner on Investment Technology Promotion Office

    The United Nations Industrial Development Organization (UNIDO) is to launch its Investment and Technology Promotion Office (ITPO) in Nigeria.

    Set up at the request of the Federal Government, the ITPO Nigeria would provide a platform for public and private stakeholders, entrepreneurs and development partners, to establish collaborative links in support of an increased competitiveness and diversification of the  economy.

    A statement by the Head of UNIDO ITPO in Nigeria, Mrs. Adebisi Olumodimu, said the launch would allow for several additional events, including the ITPO workshop, sensitisation workshops on the Enterprise Development and Investment Promotion Programme (EDIP); the Computer Model for Feasibility Analysis and Reporting (COMFAR) as well as on gender inclusiveness in technology promotion.

    It said: “The Minister of Industry, Trade and Investment will chair the event, which will also include sensitisation workshops on key UNIDO-ITPO systems to attract investment, identify and deploy technologies, and develop industrial cooperation with relevant international initiatives.

    ITPO Nigeria will be the first office in Africa, and will join global ITPO network that covers Bahrain, China (Beijing and Shanghai), Italy, Japan, South Korea and the Russian Federation.

    “Current UNIDO initiatives in Nigeria include new technologies to enhance clusters for the production of industrial goods such as finished leather products, agricultural value chains to support food and beverage processing, and creative fashion and craft industries in Nigeria.