The Nation Newspaper

Tag: investment

  • Infrastructure deficit hampers investment

    Power outages and  lack of motorable roads, including the absence of  railways, are   stifling  growth and  foreign investment in the  agriculture sector, the  Director Africa, Cassava Adding  Value to Africa(CAVA), Dr Kola  Adebayo,  has said.

    Speaking with The Nation, Adebayo observed that while there was enormous scope for raising the productivity, doubling crop yields and farm incomes, the absence of reliable rural transport and energy infrastructure are making investment in agriculture difficult and less rewarding.

    Infrastructure shortcomings, he explained,   is shown by weak linkages between crop production, processing and marketing.

    Although the  government  is  working  to    achieve significant growth through  the  Agricultural  Transformation  Agenda, he  maintained  that  this  will  not be  achieved     without   upgrading  infrastructure.

    He  stressed it was important  the government  improve  rural  connection  as  it  could   led  to higher productivity,  consequently, increasing   demand for farm and non-farm products and services.

    Farmers’ concern, he   empha-sised, is a ready market for the crops that are produced. He   said they can achieve this, if the  government  is  able to provide infrastructure  to link crop production with huge untapped markets and specific agro-industries.

    Canvassing improved   budgetary allocation towards infrastructure upgrade, he urged the government to make efforts at boosting infrastructure funds.

    He said the farming sector requires a range of government interventions to further growth.

    These include measures to protect the local industries and strengthen   regulations to ensure farmers and investors benefit from trade and investment, among others.

    He explained   that  less attention has been given to strategies for promoting rapid expansion and job creation in the rural sectors.

    The commitment of the   government to address employment generation, he maintained, would require revamping the agric sector to   generate   full employment.

  • Calabar Port: Dredging ignites hope on $10b investment

    Calabar Port: Dredging ignites hope on $10b investment

    •Investors worry over litigation

    Optimism has been rekindled over the  $10 billion investment in Calabar port following the flag-off of its dredging by the Federal Government.

    The huge investment, operators said, had been put on hold for seven years.

    The flag-off ceremony was done by  the Minister of Transport,  Senator Idris Umar, who represented President Goodluck Jonathan.

    But some of the major investors at the port, it was gathered, are worried over the litigation that may follow the flag-off ceremony by the company that bided for the contract before the procurement process was cancelled by the management of Nigerian Ports Authority (NPA).

    Some of the companies that have huge stakes in the port, include General Electric, Tinapa Business Resort, Calabar Free Trade Zone, ECM Terminals Ltd, Intel Services and Cocoa Industries.

    Some of the officials of the companies, who spoke with The Nation under the condition of anonymity said they are happy over the efforts of the government to dredge the channel, but are worried over the controversy surrounding the award of the N20 billion contract by NPA, which they said may stall the process.

    The shallow nature of the water channel, they said, has made it impossible for bigger vessels to sail through, thus contributing to the reason many importers are not patronising the port and the reason why they have not made profit on their investment.

    Findings revealed that the draft at approach of the port was 6.4 metres at high tide and 5.4 metres at low tide.

    The concession agreement, the investors said, stipulated that the Federal Government will take the draft to 9.5 metres and that the Bureau on Public Enterprise (BPE) had told them that the draught would be achieved on start of business.

    Between August 2007 and December 2012, it was learnt, only 680 vessels patronised the port. ”The non-completion of the dredging of the channel to the advertised draft of 9.4 metres is the biggest threat to the development of the port with adverse effect on our financial projection and cargo throughput was predicted on the completion of the dredging as assured during the concession exercise.

    “Companies like Flour mills, Unicem and Dangote and others do not enjoy the economy of scale in their vessel nominations to Calabar due to the fact that their full load arriving vessel has to lighten some cargo tonnage in Lagos before calling at Calabar Port due to draft limitations. Hence, a cargo ship load that could have come at once per voyage ends up being conveyed down to Calabar Port in two or three voyages,” the official said.

    Findings revealed that no container ship visited the port in the last four years.

    The Minister at the venue said the dredging would be performed by the Calabar Channel Management (CCM) and Messrs Niger Global Engineering and Technical Company Limited.

    He explained that the channel would be deepened from its present eight metres to 10 metres.

    Investigation revealed that it may take the dredging firms up to two years before they will complete the remaining 24 kilometres to be dredged.

    Sixty killometers of the channel, the Minister said, has been accomplished through the past dredging efforts.

    The Calabar port, he said, would attract more ships by the time the contractors finished their job.

    In his speech, the Cross River State governor, Senator Liyel Imoke said he was not happy about the poor state of the port.

    He said nine years after, the Calabar channel dredging contract had not been completed.

    “We hope that this time around, the project will come to stay. This project is not about dredging of Calabar port channel, It has become a sentimental issue to us.”

    He said the port has been severely under served the people of the area and that it has not realised its true potentials.

    The governor, however, noted that the successful completion of the project will boost the economy of the state, noting that many companies depend on the port to realise their objectives.

    In his address, NPA’s  Managing Director, Mallam Habib Abdullahi said his agency  would ensure the success of  CCM in its operations and overall management of the channel.

    He assured that the activities of CCM would open up  market for Calabar region and the entire South- South.

    A member of NPA board, Senator Florence Ita Giwa urged the the government  to modernise the Ikom B ridge and Odukpani  road, saying that, without it, the dredging would amount to nothing.

  • In search of new capital market investment

    In search of new capital market investment

    The biting economic crunch has made it almost impossible for many companies listed on the Nigeria Stock Exchange to go for new initial public offerings (IPO). Bukola Afolabi in this report looks at the issues

    The flurry of activities and otherwise of any stock exchange remains one of the cardinal fundamentals for gauging investors’ confidence, market pulse, liquidity and health of the market as regards to its primary responsibility to the economy as a whole.

    However, since the Nigerian capital market witnessed a downturn in 2008, companies have not been making initial public offerings (IPOs) for a number of reasons, chief among which is the fear that such venture might fail due to low investor confidence in the market as against rights issues and bonds.

    Hitherto, many investors preferred investing in IPOs because of their capital gain potential just as it is believed that shares offered through IPOs are under-priced and have the potential to rise after listing. Hence, investors always swoop on such shares. However, the IPO market has been dormant since 2008.

    Sadly, a cross-section of financial experts who spoke with The Nation said the Nigerian market will remain inactive until second half of 2015.

    For instance, Head, Equity Primary Markets, Africa, India and Middle East at the LSE, Mr. Ibukun Adebayo, told The Nation  that the driving force for capital raising across Africa now is debt, explaining that equity IPO raising, will become active in 2015.

    “It (IPO) is a question of time. The driving force for capital raising, not just Nigeria but across Africa now is debt. Companies are inherently underleveraged in Nigeria so we are going to see more debt issuance before you see equity issuance. Companies have to come because the balance between the interest of the investors and the company moving forward. So we expect   more of   IPOs taking off from the second half of next year,” Adebayo said.

    A stockbroker, Mr. Ayo Oguntayo, said the return of retail investors would encourage companies to issue IPOs in the very near future.

    The primary aim of the Nigerian capital market is to mobilise long-term funds. The Nigerian Stock Exchange (NSE) is the centre point of the capital market while the Securities and Exchange Commission (SEC) serves as the apex regulatory body. It provides a mechanism for mobilising private and public savings and making such funds available for productive purposes. The exchange also provides a means for trading in existing securities. To enable small as well as large-scale enterprises gain access to public listing, the NSE operates the main board for relatively large enterprises and the Second-Tier Security Market (SSM) where listing requirements are less stringent for small and medium-scale enterprises. The exchange which started with only 19 securities traded on its floors in 1961 now has about 198 equities with a total market capitalisation of more than N13 trillion.

    The major instruments used to raise funds in the market include equities, debentures, bonds and stocks. The capital market is classified into two segments, namely primary and secondary. The primary market is for new issues of securities. The mode of offer for the securities traded in this market includes offer for subscriptions, rights issues, offer for sale, private placement etc; while the secondary market is a market for trading in existing securities. This consists of exchanges and over the counter deals where securities are bought and sold after their issuance in the primary market. Activities in the secondary market have increased substantially over the years. The number of stock brokers trading on the exchange increased from 110 in 1991 to 140 in 1994.

    NSE and the economy

    However, the key drivers of the Nigerian economy hardly feature on the exchange; Agriculture, oil and gas, power and telecoms each constitute less than five per cent of the market capitalisation of the NSE.

    According to data obtained from the CEO of NSE, Oscar Onyema’s keynote on “Re-awakening the capital market through participation of key players in the economy’ in February 2012 showed that agriculture contributed nearly 44 per cent to GDP, yet was less than 0.3 per cent of market capitalisation; oil and gas was over 14 per cent of GDP but a mere three per cent of market capitalisation; power (specifically, electricity), at just over 3 per cent of GDP, is not represented on the market at all; while telecoms, with 5.5 per cent of GDP (not to mention almost 90 million GSM subscribers), was a meager 0.5 per cent of market capitalisation.

    With the rebasing of the GDP, the director -general of the Securities and Exchange Commission (SEC) Ms Arunma Oteh recently said “Our market capitalisation to the GDP which is very low at 30 per cent has now declined further to 16 per cent after the exercise, compared in ratio to some of our peer countries like South Africa with market capitalisation to GDP being at 230 per cent, Malaysia 159 per cent, United States of America 118 per cent, China 75 per cent and India 69 per cent. So we have got our work cut out for us. Rebasing should wake us up to the urgent need to ensure that more companies list, so that market capitalisation can indeed better reflect our GDP.”

    Oteh however projected that the Nigerian Stock Exchange would  target 500 companies for initial public offerings over the next five years to reach a $1 trillion market capitalisation by 2016.

    She pointed out that the bourse needs oil and gas, power and telecommunications companies to list stocks to meet its market-value objective. “There are a number of large, significant companies that are preparing to come to the market,” Oteh said.

    She said that talks are being held with telecoms companies on encouraging them to trade their shares.

    Going back in the history, and particularly of IPO’s in the NSE, the primary market section experienced the strongest initial public offering activity between 2006 and 2008, which helped boost investment appetite from the retail end of the market, with the NSE recording 88 transactions from IPO activities.

    During this period, retail investors and institutional investors increasingly felt confident in the capital market.

    New listings in 2014

    In 2014 so far, two new listings have been witnessed, as Seplat Petroleum Development Company listed its 543.28 million ordinary shares of 50 kobo each at N567 after a successful IPO on April 14, 2014 while Caverton Offshore Support Group became the second firm to get listed in 2014 specifically on May 20, 2014, with 2.35 billion units at N9.50 which it issued through private placement since 2008

    Capital market performance

    According to some market analysts, the inability of the exchange to inspire primary market activities can be seen in the performance of the secondary market as illiquidity persist in the market. The secondary market indicator, the Nigerian Stock Exchange (NSE) All-Share Index, which is the barometer of the market movement gained for the first five months in the year 145.21 basis point or 0.35 per cent from the 41,329.19 points it opened the year to close at 41,474.40 on May 30, 2014.

    The market capitalisation, which opened the year at N13.226 trillion closed on May 30, 2014 at N13.694 trillion, gaining N468 billion. However, in 2013 Nigeria capital market gained 47.2 per cent but market analysts are still optimistic that the market in 2014 will close higher than 2013.

    Although, the primary market has shown, sign of rebound through the rights issue as quoted, substantial major investors’ holdings are falling back on the existing shareholders to bridge equity financing gaps and reduce dependence on short-term loans.

    Not less than six companies have initiated plans to float rights issue in the past three weeks. Shareholders of Diamond Bank, Sterling Bank, UBA Capital, Africa Prudential and May & Baker have approved plans by their companies to raise new funds through rights issue. Shareholders of Oando Plc have also mandated their board to float a rights issue while Consolidated Breweries has informed the NSE of its intention to access funds through rights issue.

    Unity Bank is currently running a right issue of N19 billion. Unity is issuing 38.45 billion ordinary shares of 50 kobo each at N0.50 per share. The right issue is expected to close on June 18, 2014. While Evans Medical has concluded a rights issue of 486.47 million ordinary shares of 50 kobo each at N2.50 per share in April, raising N1.22 billion from the market

    According to analysts, rights issue implies significant financial commitment by the core investors as expectation of more companies filing for rights issue as the years go by remain high.

    Analysts’ views 

    Analysts are of the view that companies recourse to raising additional capital from existing shareholders (Rights Issue) who are members of the company rather than going to the primary market appears to be the thing to do.

    “What they have been doing is to raise money through right issues. You have to understand why this is so. You will recall that the market went through a very distressing phase for the past four years when we all witnessed the downslide of most of the share prices listed companies,” said an analyst who asked not to be named.

    He added that while the primary market remained in limbo, many listed companies explored the already saturated option of sourcing cheap funds through right issues.

    He maintained that it is only when activities in the primary market of the Nigerian capital market are rejuvenated that the Nigerian capital would be said to have started to breathe again.

    The General Manager of Lambeth Trust & Investment Company Limited, Mr. David Adonri, noted that the crisis of confidence in the secondary market arising from the global financial meltdown of 2008/2009 had contagion on the primary market, noting that the door’s becoming dormant due to massive erosion of investors’ confidence.

    He also observed that the restoration of investors’ confidence in the secondary market will automatically lead to revival of the primary market.

    Managing Director of Dependable Securities Limited, Mr. Chineye Ayanwu, said investors are not keen on investing in the primary sector because investors who bought into public offers earlier have not gotten returns on their investments and the bearish market had eroded the share value of their stocks.

    He also noted that the secondary market determines what happens in the primary market, although the secondary market is recovering, investors’ confidence in the primary market is still low due to investors’ scare of investment due to financial turmoil.

    Another investment expert who asked not to be named observed that the low activities in the primary market is also a reflection of development in the secondary market.

    He urged the capital market regulators to put more effort towards the rebounding of the market and when the market rebound then every stock will now reflect true value and that will attract investors to price the new stock appropriately.

    “The primary market is hinged on the market rebounding, right now the value of most of the stocks is considered to be below their book values,” he added.

    In an attempt to restore investors’ confidence in the primary segment, he said that the NSE had set up a new department to encourage companies that have done private placement in the past to come and list as this will give leverage to the primary market.

    Shareholders’ views

    Shareholders have called on the companies that raised private placement during the boom in the market to come and list as they promised.

    The President of Association of Avid Shareholders, Mr Abayomi Obabolujo, said, “there are myriads of primary market activities without anyone asking questions on what happened to the initial funds raised by the companies and private placements that had not been listed.”

    General outlook of the market

    Market analysts are optimistic that the new issues recently approved by the NSE would revive the primary market and the successful IPO carried out by Seplat in January, 2014.

    According to the General manager of Compass Investment & Securities Limited, Mr Sam Ndata, the new issues would deepen the market and revive the primary market.

    He advised shareholders to prove to new investors that there was still hope in the nation’s capital market by taking up their shares in the rights issue exercise.

    While, the head, international primary markets, South Asia, Middle East, Africa at the London Stock Exchange (LSE), Mr Ibukun Adebayo, recently said the volatility in the Nigerian stock market has eased to a level that would attract more local firms to raise fresh capital through IPO.

    “The market has become wider and more diversified. We have the small capital market launched which is the alternative securities market. And we also have series of different measures that have been put in place by the regulator to strengthen the market,” he said.

  • Fed Govt mulls more investment in Transcorp

    Fed Govt mulls more investment in Transcorp

    Despite selling off some public assets, the Federal Government is considering additional investment in Transcorp Hilton Hotel Plc.

    The Director-General, Bureau for Public Enterprises (BPE), Benjamin Diki made this known at the public presentation of the Transcorp Hilton Hotel’s Initial Public Offer (IPO) in Abuja.

    He said government is considering making further investments in this company because Transcorp has been paying dividend for the past five years consistently and the federal government, being a shareholder has been enjoying this dividend, and that is why the federal government can recommend to Nigerians to buy this stock.

    Government’s interest in boosting its investment in Transcorp Hilton he said “is to tell you the level of profitability of this company and we recommend Transcorp to every Nigerian, even if it is 10 shares buy it, we will see what will happen in the future, we are supporting a good deal for Nigerians.”

    The BPE boss noted that “government’s 49 per cent share holding is now being diluted because government has not yet taken up its rights issue, and government has enjoyed high dividend from this stock.”

    He said the federal government has not brought other shares to the Nigerian public “because we are not confident of their fundamentals, they have not been making profit, they have not been paying dividends on a regular basis. We don’t want to come and sell shares to Nigerians, then they will wait one, three, or five years without dividend.”

    Speaking to journalists at the event, the Managing Director, Transcorp Hilton Plc, Valentine Ozigbo, said Transcorp Hilton is Nigeria’s best example of Public Private Partnership (PPP) because Transcorp is a very serious investor.

    Ozigbo said over the next five years, the company will take a phased approach in developing high-end hotels in Ikoyi, Port Harcourt, Ikeja and Warri, as well as a Convention Centre and Apartment complex in Abuja, in addition to paying even higher dividends than it is currently doing.

    He said the company is raising up to N8 billion through the IPO offering of 800million ordinary shares of 50 kobo each at N10 per share to capitalise the development of new projects.

    He said the company will utilise the proceeds from the IPO to develop two high end hotels in Lagos and Port Harcourt and major commercial centres, in order to capitalise on the increasing demand for world class amenities, while Hilton Worldwide will serve as the Operator/Manager of all the proposed new developments which will become part of the international Hilton Hotels chain across Nigeria.

    Ozigbo explained that the Transcorp Hilton Ikoyi Hotel will be an upscale hotel on a 5,868 square metre site at 39, Glover Road, Ikoyi having 300 rooms and suites, with conference and leisure facilities, gym and spa and a swimming pool.

    The project is expected to be supported by a growing population of young and wealthy Nigerians and business travellers, and it will be jointly owned by Transcorp Hotels and Heirs Holdings.

    The estimated cost of the project is put at $140 million (N22.68 billion), with the cost of land going for $15 million or N2.43 billion. Construction cost is said to cost $125 million, or N20.25 billion, and the projected commencement date is the fourth quarter of 2014, with three years construction period if the Lagos State government issues the permit on time.

    Transcorp Hilton Port Harcourt on the other hand, will be a 250 room hotel facility with conference and leisure facilities located in the Ero Road, Port Harcourt, GRA.

    The project will be built on 10,141 square metres of land at an estimated project cost of $105 million, or N17.01 billion. The cost of land is put at $5.86 million, or N950 million, with construction cost put at $100 million, or N16.20 billion. The projected commencement date is the fourth quarter of 2014, with three years construction period.

    The company has also commenced the renovation of the Transcorp Hilton Abuja. The renovation involves the modernization of core facilities of the hotel, for which Transcorp  plans to spend approximately $57.5 million, or N9.2 billion over the next three years.

    The funding for this renovation will be sourced from the company’s cash flows from operations.

  • Fed Govt, ambassadors meet on investment

    Fed Govt, ambassadors meet on investment

    •Target $80b trade with Asia 

    The Federal Government and 14 ambassadors across Asia held a strategic meeting in New Delhi, India, at the weekend on how to improve trade and investment with the 15 countries in the sub-continent.

    The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said the ministry and the envoys would work on doubling the volume of trade between Nigeria and Asia to over $80billion (about N13.2trillion) within two years.

    Trade volume between Nigeria and 15 Asian countries stands in excess of $40billion (N6.62trillion). India is Nigeria’s largest trading partner with about N2.95trillion,  followed by China at N2.143trillion.

    Trade between Nigeria and Australia stands at N534.3billion; Singapore, N293.4billion; Indonesia, N272.8billion; Japan, N263.5billion and Bangladesh, N84.5billion, among others.

    Nigeria’s ambassadors to India, Japan, Hong Kong, Singapore, Indonesia, Thailand, Philippines, North Korea, Vietnam, China, South Korea, Sri Lanka, Guangzou and Pakistan, attended the meeting.

    Key agencies of the ministry, such as the Nigerian Export Processing Zones, Nigeria Investment Promotion Commission, the National Automotive Council and the Oil and Gas Free Zone Authority, were also represented.

    Aganga said the meeting was necessitated by the emergence of Asian countries as Nigeria’s major trading and investment partners, adding that there was need to maintain the country’s position as the preferred investment destination in Africa and globally.

    The meeting also opened fresh investment commitments by major Indian companies.

    Aganga explained why India is keen on investing in Nigeria:  “The reason is that over the last decade, there has been a shift in the dynamics of how Nigeria does business globally. We have seen our nation move from a nation historically joined at the hip with the western world to one which is more and more eastward facing.

    “This is evidenced by the fact that Nigeria’s biggest trading partner is now India, with China following closely. Nigeria also sells a large portion of its crude to India, while our traditional major buyer- the United States- has moved to the 10th place. This scenario mirrors the shift in trading patterns.”

    He said while the Western world has been beset by economic instability, the fastest growing economies have been those in the African and Asian regions.

    “We want to arm you with the relevant information to help in your roles as chief marketing officers for Nigeria in your stations.

    Nigeria’s High Commissioner to India,  Ndubuisi Amaku, said the country would benefit by increasing the current level of economic partnership with Asian countries, adding that Asia had regards for Nigeria and would play a role in the transformation agenda of the government.

  • Investment firm mulls N16b deal in financial sector

    Investment firm mulls N16b deal in financial sector

    LeapFrog Investments, an equity investor in emerging markets, said it will be investing N16 billion ($100 million) into the Nigeria financial services sector.

    The firm’s Partner, Dominic Liber, said the firm can invest N8 billion in a single business, where necessary.

    He said the firm recently raised N65 billion ($400 million) that will be invested in high growth businesses in Africa and Asia, with Nigeria remaining a priority country. The firm, he added, has partner companies serving 22.7 million people across 16 countries.

    Liber explained that the fund is backed by many of the world’s leading development financiers, insurers, reinsurers, pension funds and asset managers.

    “Nigeria is a highly appealing investment destination, with stable economic indicators and an increasingly welcoming business environment. The Nigerian financial services industry presents a real opportunity for growth and there are a number of companies that are targeting the country’s vast emerging consumer market,” he said.

    Continuing, he said: “LeapFrog’s fund will make equity investments of up to N8 billion in any one company. These must be established businesses that deliver insurance, savings, pensions, investments, credit, remittances or payments”.

    The equity investor said he had played a leading role for over a decade in insurance product design, regulation and reinsurance across the continent. “We will be looking to invest in financial services businesses with strong management teams, an appetite for growth and profitability, and a focus on the emerging consumer,” he said.

    LeapFrog has a strong track record in Nigeria. Liber said he had in 2012, orchestrated Leapfrog’s strategic partnership with leading asset manager Asset and Resource Management Co., to invest in ARM Life, which today benefits over 600,000 Nigerians with life insurance.

    Deputy CEO of ARM, Jumoke Ogundare said: “Thanks to Leapfrog’s hands-on operational support to company management, we have not only gained a capital provider but also a trusted partner.”

    Backers of the new LeapFrog fund include leading development financiers, insurers, reinsurers, pension funds and global asset managers.

    Economic growth in sub-Saharan Africa is forecast to accelerate to 6.1 per cent this year from a projected 5.6 per cent in 2013, according to the International Monetary Fund.

    Investment will probably rise to 23.2 per cent of gross domestic product, from 22.8 per cent last year, the Fund said. Many private equity firms are adamant that Africa is the next hot spot for the industry as its burgeoning middle class continues to bloom, but the pension and endowment funds who invest in private equity funds are more cautious.

    It is not hard to see what has attracted them to the continent. Over the last 10 years, Africa’s economic output has increased threefold to $2 trillion and six African countries have been among the fastest-growing economies in the world.

    There have been new investments into the Nigeria financial sector. For instance, Atlas Mara Co-Nvest Ltd, the investment firm backed by Robert Diamond, increased its stake in Union Bank of Nigeria Plc for about $270 million in a push to expand in Africa’s most populous country.

    The company will purchase a stake of about 20.9 per cent from Asset Management Corporation of Nigeria, it said in a statement today. UBN, which provides banking services to individuals and companies in Nigeria through almost 340 branches, had assets of about $6.3 billion at the end of June.

    Atlas Mara, which was co-founded by former Barclays Plc Chief Executive Officer Diamond, 63, started trading on the London Stock Exchange’s main market last month. The company, which raised $325 million in an initial public offering last year, has been expanding through stakes such as in the Development Bank of Rwanda and ABC Holdings Ltd.

    Also, Ecobank Transnational Incorporated (ETI) accepted the acquisition of a 12.5 per cent minority stake in ETI by Doha-based Qatar National Bank (QNB) through QNB’s purchase of both ordinary and convertible preference shares. QNB bought the shares from the Asset Management Corporation of Nigeria (AMCON) on the Nigerian Stock Exchange.

    Following the transaction Ecobank is discussing a strategic partnership with QNB which will enable the two banks to forge business relationships of mutual interest to their respective customers.

  • Group to boost foreign investment

    Group to boost foreign investment

    The Nigeria Leadership Initiative (NLI) will, on Wednesday, hold the maiden edition of the Diplomatic Dialogue Series (DDS), aimed at strengthening bilateral relations with other countries and boost investment.

    The event will take place at the Metropolitan Club in Victoria Island, Lagos, at 8am.

    According to the organisers, DDS is a platform for interaction between business-oriented people and foreign ambassadors.

    NLI’s Director of Programmes Anthony Ubani  said it would be a sustainable forum for the leaders of corporate firms, public servants, policy makers, business-oriented senior fellows and associates of the institute to engage, interact and share ideas  with envoys.

    The event will host the India High Commissioner to Nigeria, A.R Ghanashyan, as a guest.

    Chief Executive Officer of the NLI Dr. Yinka Oyinlola said: “Whatever brings people closer will inherently bridge divides, foster peace and better understanding and ultimately strengthen human interaction, growth and productivity.”

  • Dubai Chamber’s study highlights Nigeria’s investment opportunities

    The Dubai Chamber of Commerce and Industry and the Economist Intelligence Unit (EIU), have unveiled a study, which indicated that Nigeria is a strong destination for investments in telecoms and retail.

    It attributed this mainly to Nigeria’s large population estimated at  20 per cent of Sub-Saharan Africa’s population. This is in addition to being a key market to multinationals.

    The study said Nigeria’s Foreign Direct Investment (FDI) has exceeded US$6billion mainly in the energy sector owing to the investment in oil and gas.

    The study noted that the economy will remain robust, led by the oil and gas industry where growth is expected to continue until 2017. It also said non-oil growth would be robust, led by telecoms, trade and infrastructure.

    It, however, said it would not be sufficient for a sizeable improvement in living standard.

    The report, signed by the President and Chief Executive Officer, Dubai Chamber, Mr. Hamad Buamim, highlighted that the increase in economic reforms, rising fiscal spending and ties with fast growing economies in Asia were the main factors supporting the economy in Sub-Saharan Africa.

    The report shed more light on the economic and investment realities in Africa that will give business leaders and decision-makers from Africa an ideal platform to discuss business partnerships and opportunities.

    It emphasised that with the emergence of middle class in Sub-Saharan Africa, formal retail is starting to develop, offering “value” products aimed at lower income customers while infrastructure needs are enormous, with an estimated $100 billion a year required by the power sector alone.

    The study further informs that Africa holds 60 per cent of the world’s uncultivated arable land, but remains a net importer of several food products as well as processed foods. The study said encouraging growth in domestic production and reducing reliance on imports is a key goal to governments and investors.

    Buamim stressed that the study  was  aimed at introducing businesses in Dubai to investment opportunities available in the continent.

    Non-oil trade between Dubai and Nigeria accounted for almost $5.6billion last year. Imports accounted for around $1billion and exports and re-exports about $4.6billion.

    Nigeria ranks 47th on the list of Dubai trade partners.

  • Group launches $.5m seed investment fund

    CoCreation Hub Nigeria has launched a $500,000 seed investment fund to support early stage start-ups over the next two years. Start-ups will receive sums ranging from $10,000 – $25,000 to support business model experimentation and operations.

    Initial beneficiaries of the fund,the  organisation  listed  include  Vacantboards, Truppr, Traclist, 500shops and GeniiGames. The announcement comes on the occasion of first anniversary of its incubation office which among other services, provides entrepreneurs with mentorship, user testing, access to markets, office space and administration.

    The initial beneficiaries of the seed investment went through CcHUB’s Pre-Incubation programme   which identified and supported aspiring technology entrepreneurs looking to address local market problems with relevant solutions.

    Through the $90,000 Tony Elumelu Foundation/CcHUB pre-seed fund, beneficiaries started out with a grant award of $5,000 each to support their ideas, build working prototypes, carry out initial market testing & proof their concepts. These ideas grew steadily, earning revenues, increasing their user bases and building partnerships hence needing a different kind of support.

    CEO & Co-founder of CcHUB, Bosun Tijani said: “CcHUB incubation office launched in response to the need to provide business development, mentoring and funding support to start-ups that showed traction from our impactful Pre-incubation program. Our seed investment ensures startups have a sure footing post-Preincubation to concentrate on rapidly executing their plans and learning from the market.”

    Director of Incubation ,Tunji Eleso said: “Discussions are already underway with investors to provide additional funding to two of our initial beneficiaries and we hope to break the news in the coming months. We welcome startups looking to transform the way Nigerians live, play and do business to apply to join our portfolio via http://cchubnigeria.com/pre- incubation.”

     

  • ‘Igbo can’t leave N40b investment in the North’

    The President of Ohanaeze Ndigbo in Kaduna State, Chief Austin Amaechi, has said the Igbo in the North cannot abandon their over N40billion investment because of Boko Haram.

    He said the Igbo leaders, who were asking them to return home, should be hopeful that the Boko Haram insurgency would soon end.

    Speaking at the inauguration of the state executive of the pan Igbo and socio-cultural group, Amaechi, a lawyer, said the investments of the Igbo in the North are over N40 billion.

    He went on: “How can you leave that and go back to the East? Economically, we are at home in the North and politically we want to participate. We will, therefore, ensure that we live in peace with our host communities because once there is peace, our investments will be secured.

    “If there is no peace, it is not only the investments of the Igbo that are threatened, but also those of other Nigerians.

    “We will ensure that Nigerians’ investments are protected by Nigerians.”

    The Ohanaeze Ndigbo chief recalled that during the civil war, the property of the Igbo were secured by northerners and were handed over to them after the war, including rents, adding that that helped them to bounce back after the war.

    “Unlike in other parts of the country where the Igbo investments were declared abandoned, that never happened in the North. This gives us the confidence to invest in the region despite the insecurity. I assure you that the investment will continue because very soon, insecurity will end by the Grace of God.”