The Nation Newspaper

Tag: investment

  • Addax plans $5b fresh investment

    Addax Petroleum Development (Nigeria) Limited is planning to inject  between $3 and $5 billion into the business.

    Its General Manager, External & Government Affairs, Dorothy Atake, said part of the company’s objectives is optimising its oil and gas operations and increasing production from its assets – onshore and offshore.

    Addax  Petroleum/NNPC Production Sharing Contract (PSC), according to her, has produced over 425 million barrels of crude oil in over 19 years when it took over the Oil Prospecting Licences (OPLs) 98/118 and OPLs90/225 operated by Ashland Nigeria Oil Company that operated the blocks for 25 years (1973-1998).

    She noted that the company as contractor to and for Addax/NNPC PSC, achieved this feat “through sustained investments in reserves and production growth, application of technology, strong NNPC/DPR strong partnership and with of host communities”.

    Atake said: “Leveraging its world-class technical expertise and application of technology, Addax/NNPC PSC has brought various fields on-stream and embarked on exploration and appraisal campaigns in its adjacent concession areas resulting in commercial oil discoveries in Ofrima  and Udele fields, a project pivotal to Addax growth plans in the country.

    “In addition, Addax Petroleum has a strong track record of developing under-exploited hydrocarbon resources and has through business drivers hinged on Health, Safety, Security and Environment (HSSE), human capital development, operations excellence and capital efficiency achieved this feat.

    “The Addax/NNPC PSC remains a socially responsible operator supporting the economy through her investments in exploration and production (E&P) and communities’ projects. Safety and care for the environment is its priority as evident in her low safety incident record and continued reduction in gas flaring from its assets since2009.”

    To increase production, Addax is drilling in the Njaba field in oil mining lease (OML) 124 area. “The first oil drilled the OML 124 campaign was completed ahead of schedule and significantly below budget. Preliminary well test results exceeded projected average oil production potential.”

    Since the 2009 SINOPEC takeover, Addax Petroleum NNPC PSC has invested over $5 billion and generated over $7 billion for the government, and created jobs Nigerians, including the host communities.

    “The company has also pioneered the institution of a micro credit scheme, where over 480 women have been empowered to develop their small scale businesses, through a revolving loan scheme initiated to empower small scale business women within OML 124 host communities.

    The Technical Skill Acquisition Programme (TSAP) has enabled youths within the host communities in Imo, Akwa Ibom and Rivers states to be trained at the Federal Technical College, Omoku, in Rivers State, on selected vocations, and after training, Addax Petroleum donated tools and equipment to assist them set-up small scale businesses in their chosen vocation. The company has spent significant amount on this scheme in addition to tertiary and post primary education scholarships and infrastructure development in the education sector.

    “Nigerian content development remains one of Addax /NNPC PSC’s critical business drivers as the company ensures compliance with the requirements of the Nigerian Content Act through the use of local materials and services. We achieved these initiatives with the tremendous support of the Nigerian Content Development Monitoring Board (NCDMB).

    “This venture has been at the forefront of building local capacity, contractors and making huge investments in training and development of Nigerians. It has 255 Nigerians in its employ as well as another 380 contract staff.

    “Addax/NNPC PSC is committed to research and development and in partnerships with the Universities of Benin and Port Harcourt.

    “Addax Petroleum has since 2009 been an affiliate of  SINOPEC, bringing this to bear on positive Sino-Nigeria relationship,” Atake added.

  • Oando chief: there’s certainty in African investment

    The Group Chief Executive of Oando, Mr. Wale Tinubu, has assured global investors of the certainty of investment flow into sub-Saharan Africa.

    He gave the assurance at the Abu Dhabi International Petroleum Conference and Exhibition (ADIPEC) in the United Arab Emirates (UAE).

    Participating on a C-suite executive panel to assess the ‘Impact of Effective Disruptive Innovative Strategies’ with focus on Nigeria as one of the leading economies in Africa,  Tinubu said a bigger drive towards efficiency was paramount in operations across the value chain due to the current climate of lower oil prices.

    He said: “Technology tends to be innovative and on a trial and error basis with more of the ‘independents’ like Oando. Decision-making is faster, cheaper and predominantly off-the-shelf technology is more readily available in sub-Saharan Africa at different price levels. Many opportunities arise to test out these technologies although many challenges still prevail.”

    The gathering established that it may be hard to implore useful techniques and technologies as people and organisations are sometimes averse to explore new territory because of the high risks involved. However, it was noted that innovation is obtainable at every level of the industry once one is able to determine the complications and offer viable solutions.

    Tinubu closed the meeting on a positive note by pointing out that in sub-Saharan Africa, “there’s certainty in investment today.”

    ADIPEC provides a unique platform for high level discussions on the future of the global oil and gas industry, focusing on current challenges, solutions and trends that will provide a positive and lasting impact for all.

  • Dutch textile firm mulls investment in Nigeria

    ADutch textile and design company, Vlisco Group yesterday held a high-level discussion with the Minister of Finance, Mrs. Kemi Adeosun, over its proposed investment in the Nigerian cotton textile industry.

    The Chief Executive Officer of Vlisco Group, Mr. David Suddens, who led the group’s delegation to the meeting with Minister, said the investment would boost growth and jobs in Nigeria across the entire value-chain from cotton to fashion.

    The Group is participating across the sector value chain from sourcing of cotton, textile printing, wholesale, retail and e-commerce distribution, garment manufacturing and supporting and training of Nigerian fashion designers.

    He said: “Vlisco foresees an end-to-end involvement in the Nigerian textile industry from cotton sourcing to retail. We are expecting this investment to yield benefits for the Nigerian economy in terms of economic diversification and job creation in line with the country’s Industrial Revolution strategy.

    “Vlisco Group’s activities are expected to generate more than 10,000 jobs in Nigeria in the medium term. We also envisage a Vlisco printing factory in Nigeria using Nigerian designs for the Nigerian consumer, retail outlets selling Vlisco products and trained tailors sewing Vlisco fabric into garmet.”

  • Experts canvass investment in infrastructure

    Equipment manufacturers and experts in the built environment have called for massive government investment in infrastructural development, saying it is the only way the nation can develop economically.

    They spoke on the sideline at an international construction and building exhibition, organised by ELAN, which was held in Lagos. The exhibition, which is believed will open up investment opportunities as well as other value chain in the built industry, had  several exhibitors from over 17  countries such as Turkey, Italy, Ukraine, India, Egypt, China and the United Arab Emirate (UAE), among others.

    ELAN EXPO Project Coordinator, Mr. Jude Chime, explained that the event brought together building professionals in the country, including international manufacturers and service providers in the sector. He said the EXPO has attracted billions of dollars into the Nigerian economy and will grow the sector.

    Chime said the EXPO brought to the fore the rapid growth in the last 20 years in the building and infrastructure construction, adding that the expo was considered in order to meet the growing demands in the sector. He said the large Nigerian market attracted a lot of investors, who want to be part of the lucrative infrastructure market.

    “On his part, General Manager, ElanExpo International Trade Fairs, Mr. Nihat Suer, explained that this year’s expo was hinged on stronger international partnership with delegations from Egypt, Turkey, Poland, India, Italy, Saudi Arabia, United Arab Emirates, and China, among others.

    He said the fair brought together important professionals around the world and offered opportunities to network with foreign investors and explore other areas of investments apart from oil. “Sharing knowledge is the key for development and the need for adaptive technology cannot be over emphasised,”he said.

    Sharing her experience on the ongoing infrastructure reconstruction work in Maiduguri and the need to embrace competitive infrastructure upgrade, an engineer with the Bornu State Ministry of Works & Transport, Mrs Kori Shettima, gave a detailed and graphic information on the post war reconstruction of the war torn Northeast state of Maiduguri.

    She said her ministry had the mandate to repair the war damaged infrastructure in order to reactivate the local economy. Drawing example from Kosovo, a breakaway Republic from Yugoslavia, she pointed out that it has remained a good example for the government of her state where mixed research approach was used with quantitative and qualitative data collection to explore planning and implementation of post conflict reconstruction of infrastructure projects.

    On the challenges encountered in post conflict reconstruction, Shetima listed some of them as endemic corruption, lack of communication, lack of transparency in decision making, donor conditionality, lack of resources and poor procurement process.

    The incoming President of the Association of Professional Women Engineers of Nigeria (APWEN), Mrs Felicia Agubata and the vice-chairman, Nigerian Institute of Mechanical Engineers, Lagos Chapter, Mrs Funmi Akingbagbohun, assured that stakeholders will continue to explore solutions to infrastructural gaps in the country.

     

  • Edo’s Alaghodaro Investment Summit

    As Governor Godwin Obaseki of Edo State marks his first anniversary in office on November 12, there would be so much to talk about in the coming weeks on the Edo State Investment Summit, otherwise branded as Alaghodaro, which means ‘progress, moving forward and looking ahead’ in Edo language. It is another way of saying the future is here. Everywhere you turn in Benin City, the Edo State capital; you will find billboards and flag pole banners starring back at you in a welcoming gesture announcing the summit and critical areas of intervention to reset the economy of the state.

    The summit that would be declared open by Prof Yemi Osinbajo, Nigeria’s Vice President, is scheduled to hold from November 10 – 12, in Benin City, and the organisers have promised to reveal ‘Nigeria’s best kept secret’ at the summit. The essence of Alaghodaro has been aptly captured as “Envisioning the Future” by looking at 30 years from now. It is a bold and visionary endeavour by Governor Obaseki and the intention is for local and foreign investors to unlock the investment potentials in Edo State. Indeed, Alaghodaro is a march to greatness and a plan to own the future.

    By being forward looking and coming up with a strategic intent for creating wealth and prosperity for Edo State people, Obaseki is bringing his wealth of experience in the private sector, especially his investment-savvy credentials, to bear on his economic transformation agenda in Edo State. The very distinguished professor of strategy, Michael Porter of the Harvard Business School, says strategy is about winning by using your resources to gain competitive advantage through innovation.

    As a man of ideas, Obaseki has clearly continued on this path since he assumed office 12 months ago and it is evident that he is in a hurry to accomplish so much during his tenure. The governor is a technocrat and strategist and silent workaholic who would rather allow his performance record speak for him as he strives to win for the Edo State people. If you visit the website of Alaghodaro, it says the summit is aimed at bringing together “top Nigerian and international business leaders, investors, bankers, industry experts, policymakers and the academia to set the agenda for development”.

    The richest man in Africa, Aliko Dangote, will be leading a host of other serial investors and entrepreneurs to make presentations in what the organisers say would “spark innovation and inspire commitment to strategic deployment of capital for greater socio-economic and environmental impact”. Together with the Dangote Group, the Mahindra Group from India and Tolaran Group from Singapore are ready to showcase a $1.5 billion investment at the summit. A ground-breaking event would be the launch of Edo Industrial Park that would signpost the governor’s vision for the rapid industrialization of the state.

    In addition, the summit intends discover how Edo State will leverage its competitive advantages in the different sectors for sustainable economic growth. This critical outcome is expected to be achieved by private sector collaboration with the state government. The strategic pillars of the prosperity road map that would be unveiled at the summit as the government looks into the future include institutional reform, economic development, social welfare, environmental sustainability, and art, culture & tourism.

    Information from the Alaghodaro website further revealed that the Edo State Investment Summit was conceived with the following objectives in mind:

    • Bring together stakeholders critical to advancing business interests across a variety of industries.
    • Build important business relationships with key stakeholders such as investors, financiers, consultants, operators, project developers and government.
    • Acquire practical knowledge from top local and international business leaders and investors on the latest trends, opportunities and challenges across various fields of interest.
    • Gain valuable insight into Edo’s investment landscape and untapped potential in a variety of industries.
    • Explore prospects for joint venture or outright acquisition through public-private-partnership, privatization and commercialization of several state-owned enterprises.

    To set the tone for the summit and to demonstrate his commitment to succeed, Obaseki was at the London Stock Exchange recently to speak to a global audience on investment opportunities in Edo State. The sectors he talked about during the session discussing ‘The Nigerian Opportunity’ included mining, agro-processing, infrastructure, transportation, healthcare, arts, culture, tourism and education. With assurances of a favourable investment climate provided by the governor, global business leaders are encouraged to participate at the Alaghodaro Investment Summit.

    In a season of declining oil revenues, Obaseki says Alaghodaro is a response to that challenge through innovation by moblising human and private capital to open up non-oil sectors such as agriculture, mining, sports, technology, entertainment, arts, culture and tourism. The time has come for governors to completely innovate and think out of the box. The era of going cap in hand to Abuja for monthly handouts should become a thing of the past. Such monthly allocations ought to be considered as residual revenue while focusing on non-oil sector revenue to accelerate developments in their respective states.

    Indeed, plans are afoot to turn Edo State into a tourist destination through a re-branding effort that encourages ownership of the process by all stakeholders. The idea is to look at the culture and lifestyle of the Edo people; festivals, carnivals, tourist attractions and historical sites in view of the rich cultural heritage of Edo State. For example, Edo State Festival of Arts, Culture and Tourism, otherwise known as EDOFEST is planned to hold from December 17 – 22 in Benin City just as the Ososo Carnival has been scheduled to hold in Ososo in Akoko Edo Local Government Area of Edo State from December 23 – 30.

    These are just two examples to promote domestic tourism in the state. In addition, the state government has also targeted a critical audience by looking at diaspora citizens. It is an open secret that most Nigerians abroad are keen to either return home or have investments with organisations or individuals they can trust. Nigerians abroad send millions of dollars home every year but these funds can be properly harnessed for investment purposes in critical sectors that align with the Alaghodaro vision.

    There are several investment assets that may be considered by investors including our diaspora brothers and sisters. A good example is the AMES Edo Truck Transit Park which is an Edo State government public private partnership agreement (PPP) with Atlantique Marine and supported by the federal government through the Nigerian Shippers’ Council (NSC) that is constructing a modern Truck Transit Park (TTP) located in Benin City. The park is designed to conveniently accommodate about 1000 trailers on rotation basis. The park will also serve as a public rest area located off the road to provide temporary rest location for truck drivers.

    Another PPP example is the construction of an Inland Container Depot (Dry Pot) in Benin City also facilitated by Atlantique Marine. The objective of the project is to bring shipping activities closer to manufacturers and drive industrialization in Edo State and neighbouring states. On completion by 2018, the project is expected to be designated a Custom Port and receive the federal government approval as a Port of Origin and Destination.

    However, in order to successfully reset the economy during and after the Alaghodaro Summit, the strategy and economic team should explain in a document the incentives for investors who are deploying private capital. An investment guide would also be helpful and it should clearly establish how shared value that is sustainable can be created through PPP to encourage more investments from the private sector.

     

    • Braimah is a Lagos based public relations and marketing executive.

  • Over $4.5b investment in Ajaokuta Steel ‘ll be recovered, says DG

    Ajaokuta Steel Company Director-General Sumaila Abdul-Akba has said the over $4.5 billion investment in the company would be recovered as efforts are being made to ensure that the plant becomes  fully operational soon.

    He expressed concern that the steel company had been lying fallow for a very long time, adding that the government is determined to resucitate it.

    Abdul-Akba told The Nation in Abuja that about N10 billion worth of steel and allied products were imported yearly. This development, he said, calls for the revival of the steel plant.

    The United Nations (UN) data estimates that every $1 invested in the Ajaokuta Steel Company will yield about $8. Abdul-Akba corroborated this, saying the plant was viable.

    Minister for Solid Minerals Development Dr. Kayode Fayemi said at a forum that the legal impediments surrounding the steel company had been resolved.

    “I believe the development would speed up the plant’s recovery process,” Abdul-Akba said, adding that the plant will go into the commercial stage, which would involve Public-Private Partnership (PPP).

    He added: “It is going to be a public affair. It is going to be as transparent as possible, and we will be looking for investors both locally and internationally. Those that have the right competence and also the financial strength to get the Ajaokuta steel company to where it is supposed to be.

    “So, the government has good intention, and what I intend to do as the Chief Executive is to first of all stabilise the environment, bring my experience and ensure that the governance system within the company is right and also to ensure that this commercial stage we are going into, all due process would be observed, the best practices would be strictly adhered to.”

    Experts, however, said one major problem confronting the nation’s industrialisation drive, especially in solid minerals and obtaining maximum value from them, was insufficient accreditation laboratories in the country where samples could be analysed. This, they said, had hampered their acceptability  outside the country.

    They noted that there are only three accredited laboratories in the country, adding that there is need for samples to be analysed for them to be more authentic and that information on them will based on the authentic report.

    Abdul-Akba said Ajaokuta’s management will be looking at all the challenges and how to fashion a notable roadmap, which will yield the maximum benefit accruable from the steel company in addition to the benefits derived from mining.

  • Edo investment summit: Sustainable future beckons

    Edo investment summit: Sustainable future beckons

    The Edo State Government plans to host a three-day business/investment summit tagged “Alaghodaro Investment Summit.” With the theme “Envisioning the future”, it promises to be the template for leveraging a robust private sector partnership to open up investment opportunities in various sectors.  Asst Editor OKWY IROEGBU-CHIKEZIE reports that the state also plans to ride on the summit’s platform to domesticate the Federal Government’s Economic Growth and Recovery Plan (EGRP).

    The economic development agenda of the Governor Godwin Obaseki-led administration in Edo State is on course. The governor, who has not hidden his intention to strategically position the state for life without oil, has concluded plans to unveil an economic blueprint fashioned after the Federal Government’s Economic Growth and Recovery Plan (EGRP) launched by President Muhammadu Buhari in April.

    The EGRP, a 168-page medium-term economic plan, charts a course for the economy over the next four years. Its vision is to boost growth, invest in Nigerians, and build a globally-competitive economy. It envisages that the economy will return to sustainable, inclusive and diversified growth, and also transform Nigeria from an import-dependent to a producing economy.

    The EGRP document has been described by many experts in economics and public administration as a well-articulated principles for managing the economy. Dr. Alex Oti, a banker, said: “The EGRP represents the first blueprint by this administration to not only deal with the present economic meltdown, but also ensure growth in the medium term.”

    This is why, in line with its provisions for the growth of the non-oil sector, the Obaseki-led government plans to use the platform of the maiden edition of its summit tagged “Alaghodaro investment summit” to unveil a domesticated EGRP. The summit with the theme “Envisioning the future” will hold in Benin City, the Edo State capital.

    Alaghodaro is a Benin catch phrase meaning ‘Progress’ or ‘Moving forward.’ According to its organisers, it will bring together top-notch Nigerian and international business leaders, investors, bankers, industry experts, policymakers and the academia, to set the agenda for the state’s development. It will showcase how Edo intends to partner the private sector to leverage its competitive advantage in various sectors for sustainable  growth.

    With the state’s economic development plan geared towards opening up investment opportunities, with priority given to initiatives that prioritise its competitive advantage in agriculture, the summit, The Nation learnt, will showcase the administration’s ambitious agricultural programmes that gave birth to the Edo Fertiliser and Chemical Company aimed at boosting the local production of fertiliser.

    The Edo Fertiliser Plant and Chemical Company Limited, recently inaugurated by Vice President Yemi Osinbajo, in Auchi, is a public-private venture, which can produce about 60,000 metric tonnes of fertiliser yearly. Also to be paraded at the summit is  Saro Farm in Sobe, Owan West Local Government Area, where harvest is ongoing.

    No doubt a template for leveraging a robust private sector partnership to open up  investment opportunities, the Saro Farm is the outcome of a Public-Private Partnership (PPP) initiative with Saro Agro Sciences Ltd., a leading company in agribusiness. It was conceived by Obaseki to create jobs for youths across the state.

    According to Obaseki, the maize farm was part of his administration’s accelerated agriculture initiative to boost job creation in the state. He told excited and expectant indigenes that between 50, 000 and 80, 000 agricultural jobs would be created before the end of the year in the state. The first phase of the initiative targets job creation for 1,000 farmers through the cultivation of 5,000 hectares of maize farms across five local government areas of the state.

     

    The road to an industrial hub

    Apart from agriculture, which has got a major boost with the adoption of contract farming, partnership with SARO Group on maize farming, the state government under Obaseki’s watch is also making frantic efforts to industrialise the state and create jobs.

    For instance, the Edo Industrial Park, which has received positive reviews by analysts, will top discourses at panel and technical sessions during the summit.

    On completion, the park will be linked to the Azura-Edo Independent Power Plant (IPP), under construction. The project is situated close to Nigeria’s main trunk line, the Escravos Lagos Pipeline System (ELPS), which is only 1km from the Azura-Edo project site.

    Aside these, there is a plan to transform the state into a transport hub, with the anchor being the Gelegele Seaport, which would aid the evacuation of agricultural produce for local and global markets.

    The resulting jobs that would be generated from these ventures are expected to usher the state into a new order of economic growth. The 200,000 job target will be reviewed at the event with the sectors that can produce the highest number of jobs, as encapsulated in the EGRP.

    Infrastructure is also top priority for the Obaseki administration. This informed the creation of a separate Ministry of Infrastructure in the state to drive the realisation of the Gelegele Seaport, the expansion of the Benin Airport in partnership with the Federal Government and the construction of intra-city and inter-state roads, among other projects.

    Perhaps, more importantly, the Ease of Doing Business also received the EGRP attention. For instance, Nigeria is ranked 169 out of 190 countries on World Bank’s ‘Ease of Doing Business’ index. The plan envisages improved ranking to 100 during the EGRP.

    Consequently, the government as part of removing barriers to trade and investment, signed the Private Property Protection Law. The law criminalises the  Community Development Associations (CDAs) activities. The CDAs were notorious for harassing land owners by making them pay illegal levies and selling people’s property until the PPA Law was put in place by the Obaseki-led government.

    The passage of the PPP law effectively outlawed land speculators and grabbers, who for years tormented investors.This has cleared the space for investors to site factories and industries in parts of the state without fear of intimidation from anyone.

    As part of its vision of making the state accountable, transparent and a darling for local and foreign capital inflows, the  government  insists on the adherence to its public procurement laws in sourcing of services and goods, which eases business transactions with the State Government.

    Shedding light on the planned summit, Chairman of the Planning Committee, Asue Ighodalo, said: “The summit is designed to foster knowledge sharing, build relationships, spark innovation and inspire commitment to strategic deployment of capital for greater socio-economic and environmental impact.”

    Ighodalo, an investment lawyer, sits on the board of Nigerian Economic Summit Group (NESG). He has been the chairman of Sterling Bank since 2014  and director of private companies and non-governmental organisations (NGOs),including the Christopher Kolade Foundation, FATE Foundation, Lagos State Lottery Board, Main Street Technologies Limited, Union Bank (UK) among others.

    It is easy to see why the government through the summit is engaging investors and thought leaders on the immense potential that the state has. For instance, on a scale of one to 10, Edo ranks eight as the most likely state to be self-sustaining for its natural resources. The state has oil, immense potential in water and other natural resources, a population that can easily attract outside and foreign investments.

    Despite, Obaseki is cautious that this may not last. He said: “Oil has been the driving force of our economy both at the national and state level. The real challenge for us as a people is not necessarily what happens now, but what happens when the oil wells dry up and we can no longer generate foreign exchange from the sale of oil.”

    The governor said: “Alaghodaro is the response of the government of Edo State to this challenge. We understand that to ensure a sustainable future for our children we must take deliberate action today towards developing the non-oil sectors and diversifying our economy.”

  • Returns on social media investment: elusive or illusive?

    Returns on social media investment: elusive or illusive?

    With my experience, social media should just be a component of your marketing strategy and not the centre of it. The return on investment is low. That is why start-ups who focus on social media fail”.

    This was the opinion of a tech evangelist and Chief Executive Officer  of TychZoe Global Network, Shaba Okare Michael. He is one of the few tech enthusiasts who believe that the return on investment (RoI) of social media marketing is a mirage.

    Multinationals’ executives  have refused to discuss the results of their social media engagement and RoI. Small businesses are not tracking RoI; they just believe it works. When asked if social media really delivers, Tofunmi Akinseye, of lifestyle-entertainment magazine Savvy, said: “Yes, this isn’t supposed to be a debatable topic at a time like this when we have increased smartphone users and adoption.”

     

    That’s the euphoria.

    From social media consultants, all you have are analytics that pictured social media impressions, reach and followership. Michael Oluwasegun, strategist with Social Handlers, attempted to illustrate what RoI is for a recent campaign, #RideShareWeekNG.

    In July the campaign led to an increase of over 75 per cent in inbound traffic for gomyway.com and 60 per cent growth rate in engagement and followership,” he said.

    Social Media’s RoI is a measure of the profit generated by social media engagements and ads relative to the cost of those engagements and ads. RoI is a business-centric metric that is connected to a company’s bottom line unlike Return on Advertising Spend (RoAS), which is a measure of gross revenue generated for every naira spent on advertising.

    A close observation of social media pages suggests that brands are unknowingly spending to grow a community of fans, prospective clients and customers. If what brands do is growing communities, then how do they get return on such investments?

    “I believe the community factor is one of its’ strongest attributes”, explained Susan Onigbinde, founder of Dodo Design agency. “It also drives brand loyalty, because people who now share the same values as your company start to develop a connection with your brand”, she added. Tofunmi Akinseye explained what this “connection with your brand” could birth, arguing that it “leads generation to product awareness, product engagement, brand/product retention and ultimately sales”.

    But RoI of social media is not evidenced by making sales. Sales could be direct or indirect effect of some other marketing initiatives or the product itself.  RoI for social media is difficult to track, “because it can be difficult to collect data and exact customer behavior leading up to a sale”, according to Cannon Tekstar Hodge, a social media strategist and writer based in Los Angeles.

    It is either Social Media’s RoI is difficult to track or it is a fantasy. The clicks and impressions may not signify an intention to “connect” or “purchase”, it may be an indication of social media addiction explained as “operant conditioning” by psychologists. Operant conditioning, as explained by Entrepreneur Network partner Ben Angel, suggests that people post, click and share on social media to get a psychological feeling of reward.

    A global study released by the International Center for Media & the Public Agenda (ICMPA) at the University of Maryland, reveals that social media addiction is rampant among college students. The participants of the study were made to abstain from social media for 24 hours. One of the participants noted: “I was itching, like a crack-head, because I could not use my phone.” Social media is a lifestyle, and most users are there to indulge and pass time. Your product is not the attraction.

    The founder of Disrupt Digital, David Idagu Goldfinger advised that “the website and other activities outside the social media platforms is what convert the traffic to sales”. Jide Bamidele, a certified e-campaign expert and founder of Spark Conect warned that “Social media should not be the strategy in itself but a major part of the overall marketing strategy”. He advised organization to align online activities with offline activities to convert social media leads.

    Tech innovator Shaba Okare Michael claimed that social media consultants know that social media does not work but “they have to make money”. He however posited that “Social media is not a failure in itself. It does work for events and social stuff. But for sales, it does not work as such”. The logic in the statement is that events and social causes need “human traction” while profit-inclined businesses need “sales traction”. It is hard to argue against Shaba with the dearth of data on RoI of social media.

    Before you debate this, consider the presentation of Coca-Cola at the Advertising Research Foundation’s 2013 Conference in New York. At the conference, Eric Schmidt, Senior Manager (marketing strategy and insights) at Coca-Cola said “we didn’t see any statistically significant relationship between our buzz and our short-term sales”. Thus, this debate is about statistics and social media RoI remains either elusive or illusive until we have the data.

     

  • Indian firm scales up investment in Nigeria

    •Opens power solutions outlet 

    Indian’s multinational company and second largest supplier of power generating sets, Sterling & Wilson, has scaled up its investment in Nigeria with the official launch of its power solutions showroom and office complex in Lagos.

    This came barely a year after Indian Vice President, M. Hamid Ansari’s visit to Nigeria with 22-man business delegation where they proposed $5 billion additional investment in the Nigerian economy.

    Sterling & Wilson PowerGen Business India, Chief Executive Officer,  Sanjay Jadhav, said the group was extremely excited to open its outlet in the Nigerian market.

    “We realised that the Nigerian power generating market is as robust as that of India where you need scalable tough, reliable,  efficient and genuine power generating products. Apart from providing mechanical, electrical and plumbing solutions since 1927, we are India’s leading supplier of GenSets. So, we are offering our range of products and services designed to meet the growing needs of businesses and consumers for stable power supply including GenSet sales and services, gas power project engineering, supply and turnkey execution along with a complete range of mechanical, electrical and plumbing (MEP) solutions,” Jadhav said.

    Head, PowerGen Business for West Africa, Mr. Bipin Moye, noted that the Sterling & Wilson showroom is the first power solutions showroom in Nigeria and will display the full range of Sterling branded diesel generators.

    “It will also offer the opportunity of cutting edge service, repairs and factory warranty management backed by the availability of experienced and well trained technical service staff, making this a great option for power consumers such as construction and project sites facilities managers, manufacturers, schools, businesses offices, and other stakeholders,” Moye said.

    He pointed out that Sterling and Wilson generating sets are built for reliability and designed with compactness and durability in mind.

    According to him, the new Perkins powered diesel generator sets are built to world-class standards, for high efficiency, low fuel consumption and global emissions compliance and come in a range of options to match customer’s power needs, making the process of choice and installation really simple.

    “Throughout our company, we have strived to give customers the best possible in generating sets with efficiency, reliability and global emission quality standards in mind. We also have on offer our range of gas power solutions with capacity between 300 KWe to 25 MWe and multiples for large corporate consumers in the manufacturing, healthcare and oil and gas market segments,” Moye said.

    He added that Sterling and Wilson Nigeria Ltd is an ambitious inroad into Nigeria by Sterling and Wilson pvt India.

  • Ugwuanyi: Fruits of investment drive

    Governor Ifeanyi Ugwuanyi’s administration in a recent business engagement with a Chinese Investment Company, Lion Business Park Limited, recorded a major breakthrough in its spirited efforts to attract direct foreign investments to the state for economic recovery and diversification.

    The company, is partnering the state government under a Public Private Partnership (PPA) initiative to build an industrial market on a 2000 hectares of land located in the proximity of the Enugu Industrial Park – FTZ ( ENPOWER  Free Trade Zone) at the 9th Mile Corner, Enugu, to be known as Lion Business Park, modelled after the Dragon Market in Dubai.

    It is interesting to note that the new business investment was a fallout of the first ever Enugu State Investment Summit, tagged “Oganiru Enugu”, organized by the Ugwuanyi administration in April 2016, to showcase the economic potentials of the state in line with its promise to vigorously promote investment and pursue the diversification of the state’s economy.

    The Lion Business Park project is, therefore, a bold initiative of the present administration designed to establish an integrated manufacturing industrial hub that will facilitate Chinese manufacturers’ entry into the state to feed the Nigerian and African market through the existing sales channels in Nigeria and the West African Sub-region in partnership with Nigerian business organizations.

    It was strategically initiated to leverage on the thriving trade cooperation between Nigerian Business structures and their foreign counterparts, especially from China, for the purpose of furthering their mutual interests in a more profitable, affordable and convenient setting.

    Displaying maximum commitment to the course of the business initiative, the Enugu State government recently facilitated the formal presentation of N300 million worth of cheque to three communities of Ogwofia Owa, Enugu Eke and Akama Oghe by the company as agreed compensation for the economic items, on the acquired land for the development of the project. The cheque presentation was not only a pivotal step towards the commencement and actualization of the project, but also gave credence to the governor’s  promise to proactively promote and attract private investment to the state through policies and programmes that would generate employment as well as boost the state’s economy for sustainable development.

    It would be recalled that Governor Ugwuanyi had in his inaugural address promised that his administration “will drive with full force investment promotion…” and “provide the necessary legal and policy framework to make investment thrive” in the state.  The governor also promised to give attention to the 9th Mile Corner, “a long overlooked economic hub” to harness its potentials to enjoy the full benefits of its newly acquired status as a Free Trade Zone. He noted that the initiatives will speed up urban development, generate employment, create fresh economic opportunities and reduce pressure on Enugu metropolis.

    It is pertinent to note that during the cheque presentation ceremony, the governor, who was represented by his deputy, Cecilia Ezeilo, highlighted the massive benefits the project will bring to the economy of the state. He stated that such an enduring business venture was apt and will “stimulate investment inflow in diverse sectors of the economy and create a huge economic value chain that would engender employment as well as production and availability of much needed goods and services”.

    Declaring that “Enugu State is ready and open for business”, Governor Ugwuanyi reassured all foreign partners and potential investors of his administration’s resolve to sustain the business-friendly environment that exists in the state. In the Memorandum of Understanding for the Lion Business Park, it was agreed that “the investors shall among other benefits, pay compensation for economic items on the land to the host communities through the state government”.

    While appreciating the state’s Ministry of Commerce and Industry, indigenes of the three host communities, members of the land acquisition steering committee and others who contributed to the successful acquisition of the land, the governor equally commended the company for the prompt fulfilment of “this very important term of the MOU”.

    Expressing gratitude, the Commissioner for Commerce and Industry, Sam Ogbu-Nwobodo, applauded Governor Ugwuanyi for his dexterity, vision, innovation, fiscal discipline, transparency, good governance and other structural and institutional initiatives aimed at driving massive investment inflow into the state’s economy.  The visibly elated commissioner noted that the event was a major breakthrough geared towards the full actualization of the investment vision of the present administration in Enugu State, disclosing that the state has “witnessed a sustained high level of investment inflow”, as a consequence of the governor’s tenacious commitment to investment promotion.

    The commissioner stated that the state government’s vision “is to create a conducive and profitable environment for Chinese companies to produce in Nigeria ahead of other countries and to enhance strong and enduring bi-lateral ties between the Peoples Republic of China and the Federal Republic of Nigeria”.

    While presenting the cheque to the host communities, the chairman of Lion Business Park Limited, Dr. Okechukwu Mbonu also commended Governor Ugwuanyi for his “great vision in making Enugu State a West African industrial hub”, saying that the company is only complementing what his administration has already started in the state.

    Appreciating how committed and desirous the governor was to have the project come to fruition, Mbonu assured him of the foreign partners’ determination to actualize their mandate in a record time and went further to thank the host communities for their support, sacrifices and understanding.

    Chairman and Chief Executive Officer of Air Peace Limited, Chief Allen Onyema, had during a recent meeting with Governor Ugwuanyi  on the economic development of the South East region, described the governor as “a visionary and forward thinking governor who has assembled technocrats to think about what to do for his people”. The Air Peace boss, who disclosed the company’s vision to use the Akanu Ibiam International Airport, Enugu, as the economic hub of Africa, to enable the nation play its leading role in the continent, also affirmed that the decision to establish businesses in Enugu was based on his company’s assessment of the governor’s leadership qualities, positive impacts in governance and commitment to investment promotion.

    “We have in Governor Ugwuanyi, the best governor in the South-east. He is very visionary; he has brought many technocrats together to think about what he will do for his people. So, we want to align ourselves with his dreams and that is why we decided to choose Enugu International Airport among all the airports in Nigeria for our business investment”, Onyema said.

    As Governor Ugwuanyi has taken the lead to make the coal city state the ultimate destination for tourism and business investments, the onus is, therefore, on the public to support this brave initiative as well as the concerted effort of his administration towards improving the living standard of the people of the state – the true heroes of democracy, for Enugu State is truly in the hands of God.

     

    • Amoke writes from Enugu State.