Tag: investment

  • Ireland plans massive investment in Nigeria in four years

    Ireland plans massive investment in Nigeria in four years

    Republic of Ireland has hinted of plans to expand its investment portfolio in Nigeria in the next four years.

    Giving this assurance was the Irish Minister for Agriculture, Food and the Marine, Simon Conveney.

    He spoke in Lagos when he led a delegation of Irish businessmen on a trade mission to Nigeria.

    The Irish minister who disclosed that he had a fruitful meeting with his counterparts in Nigeria, namely: Rotimi Amaechi of and Chief Audu Ogbeh, emphasised that the interface and discussion session will be mutually rewarding as well as strengthen bilateral relations for both countries.

    Upbeat, Conveney who was in the company of Ambassador of Ireland to Nigeria, Seán Hoy and Chief Executive, Enterprise Ireland, Julie Sinnamon, said this was probably one of the largest trade missions from Ireland to have ever visited Nigeria.

    “We have the largest ever trade mission we have brought to Nigeria. We have 42 companies with us, ranging from aviation, financial services, construction, waste management, agriculture, software system and among a broad spectrum of different Irish skills set hat we are hoping will become embedded in the Nigerian economy in the future.”

    The trade mission, he assured, will provide a foundation on which to build strong economic links with West Africa, especially with Nigeria and Ghana. “The region which has a strong demand for imports of quality food, given the size of its population and Ireland is strategically placed to be a key supplier of quality dairy and meat products, but also high end services in the field of education, finance, engineering, construction and technology.”

    Conveney who is also the Minister Defence in his home country, said his country has a strong trade relationship already with Nigeria dating back to 1961 Ireland established its first ever embassy in the continent of Africa in Nigeria.

    The envoy who acknowledged that the country has immense potential for growth, said: “Nigeria is possibly the most exciting economy in the world to work in considering the potential for growth and expansion here in terms of resources, in terms of population growth. By 2050, it is projected that the current population of about 190million could expand to say about 430million people. And that pace of growth is going to drive food demand, in terms of consumption pattern, in terms of energy, water, transportation, financial services and quality of life issues and so on. And that is very challenging environment to work but it’s also very exciting.”

    In a short remark, Sinnamon said: “This trade mission is about helping Irish companies to optimise on the opportunity that exists, as the continent transitions from the need for assistance, to a continent of opportunity; the so-called ‘aid to trade’ journey.

    Our ambition is to reach export sales of €600m to the region by 2018 and we will continue to work with ambitious and capable Irish companies to expand their market share in African countries, exploring and developing lucrative trading relationships that ultimately deliver export-led job creation in Ireland.”

    Overall, bilateral trade with Nigeria was worth half a billion euro in 2014.

  • NBC restates commitment to investment, facility upgrade

    NBC restates commitment to investment, facility upgrade

    Nigerian Bottling Company (NBC) Limited has stated its commitment to focused investments and upgrade of its manufacturing facilities in Nigeria. In a recent company statement during an engagement session with its major stakeholders, the Acting Head, Public Affairs and Communication, NBC Limited, Mrs. Sade Morgan, said that the Company is upgrading its manufacturing operations, and the Ilorin facility is being transformed to become a world class material handling and logistics hub.

    “The restreaming of NBC’s operations in Ilorin is part of an on-going Accelerated Investment Plan, aimed at doubling production capacity by 2020, to better satisfy our customers and markets. Whilst manufacturing activities have ceased within the facility, the Company will continue to carry out logistics and commercial operations from that location, making it a major and expanded full-fledged depot and material handling facility,” Morgan stated.

    She said that the demand for Coca-Cola products is high and growing, and in a bid to meet up with the sales projection trajectory in a competitive environment, more production lines are being installed in some of our existing manufacturing facilities, most of which will be new. The new Ilorin depot facility, when completed, is expected to support new and upgraded production lines in the region to deliver our products more efficiently and effectively to yearning customers and dealers within the South-West Region and beyond, in an environmentally sustainable way.

    NBC Limited is partnering with communities on its shared values of water stewardship, youth development and women empowerment. Collaborating with state governments, supporting female entrepreneurs with trade asset financing and business training for women entrepreneurs in the Coca-Cola value chain remains a top priority and a strategic part of the company annual business plan.

  • Investment One advises companies on how to raise funds

    Investment One Financial Services Limited has underscored the need for Nigerian companies to seek professional advice on their capital structure and available financing options in order to grow their businesses and avoid financial shocks.

    At a seminar organised by Investment One Financial Services Limited in partnership with the Network Business Club, experts discussed various ways to attract smart money to grow business.  The seminar was directed at different levels of business, ranging from large companies to Small & Medium Enterprises (SMEs) looking to bring their business ideas to reality or scale up their business. The seminar thoroughly examined how to attract smart money and had various speakers who addressed various aspects of the seminar theme.

    Managing director, Capital Management Division, Investment One Financial Services Limited, Mr Ademola Aofolaju said companies must realize the importance of correct capital structure for their particular kind of business.

    According to him, the proportion of debt to equity may be related to growth potential and cash flow and the varying business needs which may include expansion, working capital and asset acquisition.

    He also outlined the detailed requirement for attracting smart money which include the 5Cs of capital, cash flow, character, capacity and collateral, adding that other requirements may include experience, sound operations, financial records, governance structures, compliance and legal structures and market positioning.

    In his remarks, managing director, Investment One VenCap, Dr. Ore Sofekun, noted that for Nigeria to achieve the desired economic growth, there must be a shift from being a consuming nation to a producing nation. Investment One VenCap is the private equity and venture capital subsidiary of the financial services group.

    She pointed out that for a country with Nigeria’s population size, SMEs is one of the growth engines.

    She added that the seminar was held in line with the group’s commitment to providing financial education to both individuals and businesses, helping them to achieve their desired financial goals.

    Chairman, Networks Business Club, Mr Ernest Obi, explained that the event was borne out of the identified needs of their members who have businesses at different stages of either inception or growth and for whom financial advice was required to achieve the desired result.

    According to him, the objective of the event was to provide business owners with a platform to directly engage investors.

     

     

  • ‘Edo remains an investment haven’

    ‘Edo remains an investment haven’

    Mr. Joe Okojie, Edo State Commissioner for Agriculture, who assumed office some weeks back, unveiled his plans for the ministry while playing host to the 11th Supervision Mission of the Rural Finance Institution Building (RUFIN) programme in Benin, Edo State capital, reports Ibrahim Apekhade Yusuf 

    Rural farmers in Edo State got over N1.2billion as loan disbursement from the Rural Finance Institution Building (RUFIN) programme. How does that make you feel?

    When you say N1.2billion, it will appear as if it was disbursed at once. But the amount from the record I have has been disbursed since 2010 at the inception of the programme on a revolving basis. So, it is not as if it was just disbursed at once. But be that as it may, I think I feel very encouraged that there are facilities out there that our people at the grassroots level, who ordinarily won’t have access to credit, can now have access to it so that they can use in their various small scale farms in order to increase their productivity. So for me, that’s a step in the right direction.

    What strategies do you have in place to ensure that the programme is sustained given the fact that the programme is wrapping up next year?

    First of all, I must commend the RUFIN team for doing their part. It’s a programme I that I think is worthy of note and going forward, we as a government, we have a responsibility to cater for our people. What we have to do as a government is to take ownership of the programme and continue to make sure that our people, especially those at the grassroots level continue to have access to resources to improve in their farm and in their productivity in general.

    RUFIN is a programme through which help and relief can be given to people at the grassroots. That is why when I took over office, I took interest in the project and I made itý my project. I’m doing my best so that, we as a government will fulfill our own end of the project. I promise you that we will do the needful and will do more to take ownership of the programme when RUFIN is gone. My hope is that, going forward, we will have better synergy so that we are able to deliver on our promises.

    Farmers in Edo State like their counterparts across the federation look up to government for one assistance or the other. As the Commissioner for Agric, what’s your agenda for farmers in your state?

    Well, for me, the farmers are my primary constituency in the state and I will do whatever I can consciously do to deliver on my deliverables. And my deliverable is to make sure that we help them to pursue their goals in whatever we can.

    The state government is yet to make its commitment as far as the counterpart funding of the RUFIN programme is concerned. Can you bring us up to speed on what is being done in that regard?

    We’re aware of the challenges and we’re willing to do whatever we can to address the challenges. Edo state is an agrarian state with over 65 per cent of the residents here involved in one form of agriculture or the other. So agriculture is very key and we’re willing to do whatever we can to encourage people in agriculture, especially at the grassroots. That’s why we take particular interest and liking for RUFIN programme given the fact that the programme is directed at people at the grassroots. When I first came back into the country and saw the way things were going, a situation where you have people at the grassroots not been catered for, I told myself that if we continue on this path, a time will come when we will no longer be able to protect the very few rich because we have not made provisions for the very many poor. So, my quest was to make sure that the gap and divide was addressed and I think coming on board, I found that through the RUFIN programme we can channel help to the poor and needy in the society. So, naturally I took interest in the project and I have made it my project ever since.

    One of the challenges that confront smallholder farmers is the challenge of preserving their produce. What scheme does the state has in place to assist in that regard?

    Concerning the issue of preservation, just last week we looked at an array of things that can help farmers to preserve their harvest and be able to optimise it. We’re looking at the silos we have to see how we can refurbish them so that some of these farmers can take advantage of the silos to preserve whatever it is they’re going to harvest.

    However, that’s just one of the measures. But we’re considering the suggestions and innovations that came up last week and we’re looking at them. My hope is that we’ll make the best use of the opportunity in the shortest possible time. So we’re still evaluating what will work in this environment.

    In the past, the state partnered with foreign investors to grow the agric base. Are you still open to such collaboration?

    We’re still talking to a lot of investors. As we speak l’m scheduled to have an appointment with some investors. We’re targeting new investors and we hope to give them incentives to encourage them to come and invest in the state. We’re determined to make Edo State an investment haven.

    Can you be specific on the revenue projections from these new investments?

    Don’t you think it would be dangerous to count your chickens before they are hatched? (Laughs).

    Another challenge farmers contend with is how to add value to their produce in terms of processing, etc. What is the state government doing to help in this area?

    I must admit there are infrastructural deficit. But considering the time I have, if I embark on building infrastructure now, it will be difficult to achieve that. However, our plan is that we want to be able to put the state on the path of growth by setting medium and long term goals. But in the interim, we’re looking at short term goals, which is to help farmers reach their productivity and help them with access to the market. If you go to the rural areas, you will see that what the Comrade Governor has done is to pave roads through farm communities so that farmers will be able to take their produce to the market.

    That’s the first thing. In that regard, you will agree with me that we have been able to build infrastructure across various communities to ease the transportation of produce to the market. In the short term, we have achieved one key deliverables. I’m sure our medium term would be to add value by setting up processing plants. But let me say here and now that it is not going to be done in my tenure unless you want me to lie to you and l’m not going to lie to you. If sit down here and tell l’m going to that in my tenure, l will be lying to you. It’s not just possible because even more l desire it, time will not permit me.

    What l will concentrate on are things we can achieve in the short run that can increase the productivity of the farmers such as the RUFIN programme that gives direct credit access to the farmers and that’s why we’re not leaving any stone unturned in our quest to ensure the programme succeeds. Why I have decided to take ownership of it and do whatever I can to make sure that we sustain it and the state takes over so that our farmers can continue to have access to improve on their productivity.

  • U.S govt backs CBO investment management fund with $18.75m

    U.S govt backs CBO investment management fund with $18.75m

    The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has approved an $18.75 million commitment in CBO Investment Management (CBOIM’s) fund, CBO Growth Private Equity Investment Limited Fund. The Fund is seeking to raise $150 million from international and local institutional investors to invest in Small and Medium Enterprises (SMEs) in West Africa.

    CBOIM is one of the first private equity fund managers to target African institutional capital through a Nigeria onshore fund in parallel with a fund backed by international investors. The fund will specifically invest in SMEs with scalable growth patterns and credible management teams across six core sectors including agri-business/food processing, energy services, manufacturing and import substitution, education and healthcare services, technology, media and real estate services.

    CBOIM and OPIC have a mutual commitment to make investments that not only generate commercial private equity returns but also have a positive developmental impact. “CBOIM presents an opportunity for OPIC to support an institutional-quality investment manager that will provide critical capital to SMEs in a variety of sectors in Nigeria and the rest of West Africa where access to finance for SMEs remains a challenge, but has a strong potential for development impact.

    “I’m especially proud that this is the first Africa-focused approval to result from OPIC’s Innovative Financial Intermediaries Program (IFIP), an OPIC initiative to facilitate capital flow to developing economies,” OPIC’s President/CEO Elizabeth Littlefield, said.

    Managing Partner of CBOIM, Bex Nwawudu,  commented: “Securing investment from OPIC is a powerful endorsement of the opportunity and our strategy to support the best caliber SMEs in West Africa, and our governance structures. We have a long term vision for CBO and a clear plan for delivering superior returns. We are now making excellent progress to ensure we are attracting both international and African institutional investors as well as the partnerships required to fulfill them.”

    CBO Investment Management is a West Africa investment firm based in Lagos, Nigeria and founded in 2008. The firm is managed by Managing Partners Bex Nwawudu & Chuka Mordi, along with Managing Director Joanne Yoo. The firm has 17 professionals on the ground.

    CBOIM recently appointed Gary Steinberg (the former Chief of the Investment Unit at the International Monetary Fund) as Chair of the Advisory Board and to the Investment Committee.

  • African pension funds create investment capital pool

    With pension funds in some parts of Africa growing at a remarkable pace, the continent has become its own biggest investor.

    This is according to RisCura’s 2015 Bright Africa report, an on-going research effort aimed at assisting investors into the continent.

    Africa has experienced tremendous growth in pension assets over last five years. Assets in East Africa, for example, have grown in excess of 20 per cent on a consistent basis only overshadowed by Nigeria, which has seen growth between 25 per cent and 30 per cent.

    In much of sub-Saharan Africa where pension systems are older and more established, growth rates have been lower, but still strong, ranging between eight percent and 18 per cent over the previous five years. These trends are set to continue as this young continent moves towards increased coverage, and more inclusive and comprehensive systems.

    In line with global trends, the vast majority of retirement income in Africa is funded by governments, derived from taxes or other forms of government revenue (essentially a pay-as-you-go system or PAYG). With a large proportion of formal sector workers concentrated in the civil service, pension funds for public sector workers are well established and benefits are often more substantial compared to the private sector.

    Coverage on the continent however, is much lower compared to the rest of the world. Data from the Labour Office’s 2014, 2015 World Social Protection Report estimates that currently only 16.9 per cent of older people in sub-Saharan Africa receive an old age pension. Although this number is higher in North Africa at 36.7 per cent, it is still considerably lower than much of the developed world, 90 per cent in North America and Europe. A recent report on the pension sector in the East African Community estimates that between 80-90 per cent of the population is not reached via public or private pension fund schemes.

    In part, this is due to the unique circumstances in Africa including demographics, young population, a large informal employment sector, and migration with limited pension portability, and dependency on government finances. The pace of regulatory reform has also led to divergent coverage trends between countries and regions.

     

    Pension funds as investors

    Pension funds globally have become significant investors, both as fiduciaries in global capital markets and in their capacity as investors in local and international development projects. At the end of 2014, global pension fund assets were estimated at USD 36,119 billion, representing a 6.1 per cent rise from the 2013 year-end value. On average, these assets account for 84.4 per cent of these countries’ GDP.

    • Courtesy: RisCura analysis

  • China projects $12b investment in Nigeria, others by 2030

    China projects $12b investment in Nigeria, others by 2030

    The Chinese government is determined to expand its investment portfolio across Africa to $12billion by 2030.

    Giving this hint at the weekend was the Managing Director, ZTE Nigeria Limited, Brielle Gao.

    She spoke as a guest at the 19th Brainstorming Session on United Nations Sustainable Development Goals in Nigeria, with focus on China-Nigeria Relations. The event, which held in Lagos was organised by the Nigerian Institute of International Affairs in collaboration with the Embassy of the Peoples Republic of China in Nigeria.

    ZTE Nigeria is a member of ZTE Corporation, the world leading telecommunication equipment and solution providers.

    According to Gao, her home country, China is committed to investment and long term sustainable partnership in Africa.

    “China would set up a $2bn fund to support south-south cooperation. China would also try to increase its investment in the least developed countries to $12bn by 2030. This belies the popular assertions that China’s substantial increases in aid to the region are motivated by short-term commercial and strategic interests, but are broader and more long-term.”

    Going down memory lane, she recalled that the late 1950s and early 1960s saw the advent of independence for most African countries, thus the relationship between the continent and China was modest and based on non-aligned diplomatic principles.

    She was however quick to admit that: “The remarkable expansion and modernisation of China’s economy in the 1980s and the 1990s resulting in massive industrial, energy, and market expansion needs, necessitated an increasingly closer economic relationship with Africa.

    “Overall, China is now Africa’s largest trading partner with trade ballooning to about 700% in the last decade. The trade relation has evolved from basically selling cheap clothing, bags, and kitchenware to oil, infrastructure and mining projects across the continent.”

    While acknowledging that China’s economy has momentarily slowed down, she however emphasised that there is greater need to shift to Sino-African relationship to a consumer-driven model that will inevitably depend less on African raw materials and market to an investment model with long term sustainable partnership model.

    Specifically, she said: “Last September, the Chinese president Xi Jinping at the UN after the launch of the new sustainable development goals (SDGs) pledged to support the SDGs.

    Besides, she said: “China through the Exim-Bank of China now offers developing countries, in Africa, loans with which to develop their infrastructures and resource rich own economies. These loans are not in any way a concealed plot to take over African countries. Rather they were rooted in China’s experience that natural resources could help poor countries develop and diversify their economies.  In China’s viewpoint, they offered a win-win solution.

    “As China’s economy slows down coupled with the increase in the cost of production China has began to look to Africa as the next most promising alternative destination for investment in, agriculture, industry and manufacturing,” she reiterated.

    Many Chinese companies, she stressed, “Have been among the most enthusiastic investors in Africa in the past two decades compared with Africa’s hesitant traditional western partners.

    “There is also increasing evidence that the Chinese engagement in Africa is largely beneficial rather than a menace. African governments with the right incentives by encouraging manufacturers to invest locally, transfer technology and employ local staff are already reaping the benefits with increase in commodity exports.”

  • Security needs massive investment, says expert

    The security sector requires massive injection of funds to guarantee protection of lives and properties, the Chief Executive Officer of Solidpro, a professional security outfit, Mr. Francis IEA, has stated.

    He said security operatives need a lot of technological installations to work with to boost their efficiency.

    IEA spoke last week at the commissioning of the outfit in Lekki, Lagos.

    Technologies, according to him, can improve intelligence gathering and help the nation’s fight against terrorism.

    He said: “Security is more than physical structures but more of technologies and invisible gadgets. Nigerians need to embrace more of these to save costs.”

    Chairman of the occasion, Dr Iruofagha James, called on Nigerians to show more than passing interest in security matters and stop leaving it alone to government.

    He said Nigerians and government must be willing to invest in security to protect the nation.

    According to him, “No amount of time and resources invested in security is wasted.

    “I am optimistic with the state of the art of technology and security equipments displayed, adequate effort will be made to overcome any security threat and also fortify its intelligence gathering.”

    Lagos Commandant, Nigerian Security and Civil Defence Corps (NSCDC), Gideon Abafi, stated that with the advance of technology, Nigerians should increase their support for security agencies to tackle the waves of criminal challenges.

  • NHTIC target $20b investment  in tourism sector

    NHTIC target $20b investment in tourism sector

    The organizers of the Nigerian Hotel and Tourism Investment Conference, NHTIC 2015 holding from 25th -27th of November at the Intercontinental Hotel, Lagos has disclosed that their target is to attract over $20billion worth of investment into the country’s tourism and hospitality industry in the next few years.

    This coming just as all arrangements have concluded for the second annual Nigerian Hotel and Tourism Investment Conference 2015 holding from 25th -27th of November at the Intercontinental Hotel, Lagos.

    Speaking at a press conference in Lagos to brief the media on developments that have taken since the first briefing in Lagos, Brian Efa, managing partner of Jonel Hospitality Consulting said for now 15 foreign participants have confirmed participation at the event.

    Mr Efa disclosed that out of the 15 participants, 10 are coming from South Africa, 4 from Europe and one from United States.

    He said the event will declared open by the Lagos state governor Akinwumi Ambode.

    He said the Nigerian Hotel and Tourism Investment Conference is working in conjunction with the Nigerian Investment Promotion Council and the Fderal Ministry of Culture, Tourism and National Orientation, to attract investment into the country.

    Efa stated further that they organizers will also be bringing company from abroad to help facilitate on single digit financing to help the Nigerian investors.

    Efa stated that the conference with the theme, Nigerian Tourism Industry, catalyst for Economic Diversification is aimed at growing the industry and create employment.

    Managing partner of Jonel Hospitality Consulting said this year event is going to be bigger than last year with more foreign participation.

    He based on demands, 10 exhibition stands have been created for some of the participants to exhibit.

    According to him, the event will feature different breakout sessions, while there would be a speed networking which will allow delegates to meet each other, exchange business cards and move on to meet the next person on Wednesday 2th November.

    The three day event is aimed at bringing international hotel and regional industry experts together to discuss and debate the changing landscape and to help identify intelligent and targeted investment opportunities in the country.

  • Nigeria’s oil industry investment dips 20%

    Nigeria’s oil industry investment dips 20%

    • $20b required yearly for growth

    Investment in Nigeria’s oil and gas industry, which stood at $20 billion last year has dropped by 20 per cent this year over industry woes and investment environment, the President for Chevron Africa and Latin America, Mr. Ali Moshiri has said.

    Moshiri who spoke yesterday while delivering the keynote address at a luncheon hosted by Chevron Nigeria Limited at the ongoing annual conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, said total investment in global oil and gas industry last year was $600billion. He said out of this, Nigeria accounted for $20billion, lamenting that this investment level has dropped by 20 per cent this year.

    His keynote paper was titled:  The Global Energy Landscape-Opportunities from the Current Great Oil Deflation.

    The Chevron chief said currently, the country is the leader in oil production in Africa and number three in gas production. He said its hydrocarbon space still holds great potentials despite the fact that the era of easy oil is gone. He noted that Nigeria’s number three position in gas production, is as a result of lack of gas infrastructure because it has more gas than oil and if the resource was adequately exploited, it could be the world’s number three or four  gas producer.

    He said: “But when you talk about investment, total industry investment in 2014 was about $600 billion and Nigeria had around $20 billion. After the price crash, there is tremendous reduction in global investment. Now the question is, ‘is that reduction because of cost-efficiency or is the reduction because of investment?’ As you can see, investment in Nigeria has significantly dropped by 20 per cent.”

    Moshiri said the country has capacity and resources to produce above two million barrels of oil per day, but noted that substantial investment is required to achieve that. He said $20 billion investment would be required yearly for the country to attain reasonable production above the current level of production.

    He said many projects were locked up in the country because of cost, citing the Bonga Southwest project as one of them.

    Moshiri who has spent 40 years in the oil and gas business, said the current slump in crude oil prices should not be a surprise to anyone, noting that he has seen four of such declines.

    He confirmed that United States’ shale oil and  refusal by members of the Organisation of Petroleum Exporting Countries (OPEC) to cut production are  the reasons price of oil has not rallied.

    “Between 2014 and 2015, about four million barrels per day of unconventional oil was introduced into the market by the U.S. Without the United States’ unconventional oil, the price of oil would have been significantly higher than what it is today,” he added

    Governor Akinwunmi Ambode of Lagos State, who was represented by the Commissioner for Energy and Mineral Resources, Mr. Olawale Oluwo said with the efforts of Lekoil, Afren and Yinka Folawiyo, the state would soon become the 11th oil and gas-producing state in the country.