The Nation Newspaper

Tag: investment

  • How BUA’s $1b investment’ll stimulate economy, create jobs

    How BUA’s $1b investment’ll stimulate economy, create jobs

    The investment of $1 billion in Obu Cement Plant in Edo State by the BUA Group is seen as a boost to the Federal Government’s  drive for investments to reboot the economy. Asst Editor OKWY IROEGBU-CHIKEZIE writes that the massive investment could change the economic landscape of the state and the country.

    With the investment of $1 billion in its cement plant in Okpella, Edo State, which, arguably, boasts Nigeria’s finest limestone depository, the BUA Group may have set the stage for the transformation of the state’s economy and, by extension Nigeria’s.

    For one, the newly-inaugurated cement plant, which has the capacity to produce three million metric tonnes of cement yearly, is seen as a big boost and a massive intervention to address the domestic deficit in cement products for construction.

    With the plant’s state-of-the-art setup seamlessly structured to facilitate the export drive, the investment is also seen as a significant boost for the nation’s cement self-sufficiency drive.

    BUA Group, according to its Chairman/Chief Executive Officer, Abdul Samad Rabiu, is building the second Obu cement line.

    Rabiu, who spoke at the launch of the facility, noted that the cement plant would reposition Nigeria from a cement importer to an exporter, increase production capacity from three million tonnes to 45 million tonnes by 2018.

    He said the cement sub-sector, which accounts for over 90 per cent of Nigeria’s mining sector, has the potential to shore up the $2 billion it injects into the country as foreign exchange (forex).

    Rabiu, however, said infrastructure, particularly stable power as well as policy consistency, was necessary to achieving a significant growth in the sub-sector. He said that the investment could double the sub-sector’s current 30,000 direct employment and over two million indirect jobs.

    “These kinds of investments in important sectors of the economy are not only necessary, they are critical.

    “In order to reverse our import dependency and diversify the economy, large corporations have to engage in game-changing investment in sectors such as agriculture, mining, and infrastructure, while government at all levels ensures an enabling environment for the investments to thrive,” Rabiu said.

    He said the vision of the company was to provide Nigerians with the best quality cement, using the best technology and best hands at the most affordable price. According to him, the choice of Okpella, in Estako East Local Government Area of the state, as the site for the plant, is strategic.

    “This community has the best limestone in the whole of the country,” Rabiu said, adding that the location is very good, being in the mid-west and it is very close to the cement market in the north, with excellent road networks in the south-west and to the east. “So, this place is at a strategic location to adequately distribute cement all over Nigeria,” he added.

    Rabiu also stated that the completion of the second line in the first quarter of 2018, being handled by SINOMA CBMI of China, is expected to take the company’s production capacity to six million metric tonnes per annum.

    He expressed confidence that SINOMA, with their track record and vast expertise in deploying cement plants across the world, would deliver a world-class second line for the Obu Cement Plant. “It will also meet our stringent environmental, safety, quality and technical requirements for our plants and products,” he said.

    The Obu Cement Plant utilises 9,000 tonnes of limestone and clay daily for its large-scale operations, while it produces 32.5, 42.5 and 52.5 grade cement. And the plant is engineered to be the most-environmentally- friendly cement plant in Africa with the most advanced dust emission control systems.

    “Our technology has the latest filtration with capacity of less than 10 milligram per normal cubic meter. We use natural gas, which is a very clean energy for both our kiln as well as the power plant, in addition to having a very green environment,” Rabiu said.

    At the inauguration of the plant and the ground-breaking of the second line, the Vice President, Prof. Yemi Osinbajo, pledged that the Federal Government would remove all human inhibitions to encourage investors.

    Commending BUA management for the achievement, he said the project, which is a wholly Nigerian enterprise, planned and executed by a Nigerian team, is a big boost to the economy, with the opportunities it will provide for skilled and unskilled youths of the state and the country at large.

    The Vice President noted that the plant’s output would guarantee self sufficiency of cement production for the nation, especially when BUA Group is using modern and efficient facilities with local materials. He said the company’s achievement had demonstrated that the Nigerian economic growth plan must be private sector driven.

    Osinbajo assured the private sector that the Federal Government would endeavour to make policies that would remove bottlenecks. “We will continue to create the enabling business environment and will directly assist the private sector to grow, which will in turn grow the Nigerian economy,” he said.

    According to him, the only feasible means to achieve a robust and far-reaching socio-economic development is to enable active involvement of private sector players and investors. Government resources, he said, cannot independently bridge the infrastructural and technological gap without the involvement of private sector resources.

    Osinbajo noted that advanced economies attained significance by the contributions of major entrepreneurs such as the Chairman of BUA Group. He emphasised that it was imperative to build a symbiotic relationship with committed serial entrepreneurs and investors to drive economic growth and development.

    His words: “Nation building is never judged by the number of new projects or fresh ideas that we begin; we are judged by what we complete and sustain. This country will only grow on the talent and resourcefulness of people like yourself who are ready to put their resources out and invest anywhere in the country, employ the local people in that community and add real value to the lives of Nigerians.”

    Edo State Governor Godwin Obaseki commended the management of the company for taking the bold steps in 2015 to initiate the process of establishing the plant. He expressed happiness that the management had made success of the company, including completely turning around the acquired moribund Edo cement factory.

    Obaseki said the vision and mission of the company were in line with the state government’s economic reform agenda, adding that “the State Government is ready to make Edo an industrial haven with friendly tax policies.

    He reassured the group of ensuring the operating environment was comfortable with the promotion of responsible and attractive tax regime. The state, he said, has reformed her land management process in a fashion that makes acquisition of land, security of approvals and building permit feasible without social harassments or uncontrolled communal land administration.

    Obaseki said: “We want to use this opportunity to invite other investors to emulate the BUA Group, come to Edo State and take advantage of the great potential in the state. Edo State is rich in limestone and other solid minerals, besides its status as an oil producing state. Government is resolute about economic diversification especially into areas where we have competitive and comparative advantage.”

    The governor also informed that his administration has created the enabling business environment for potential investors to invest in an industrial park, located in Ologbo, in Ikpoba Okha Local Government Area of Edo State, where the gas transmission line and proximity to power is expected to boost economic activities and create investments in the state.

    “We are currently designing an export processing zone with the initiative of investing in the Gelegele Port to boost production and agriculture, which is the major thrust of both the Federal and Edo State Governments’ economic diversification programme,” Obaseki added.

     

    How the BUA journey began

    The acquisition of a two million tonnes floating cement terminal labelled BUA Cement 1 in 2008 marked the company’s entry into the Nigerian integrated cement manufacturing. It was the first time the industry experienced a technology driven bulk-bagging of cement on a vessel.

    It acquired majority stake in the publicly listed Cement Company of Northern Nigeria PLC (CCNN), as well as in Edo Cement Company Limited in the same year before investing in the construction of a Greenfield three million tonnes plant in Obu.

    On the acquisition of CCNN, Rabiu said: “BUA’s investment in the cement line in Sokoto is the single largest private sector led investment in the North-Western part of Nigeria.

    “This is particularly important because Sokoto cement was the largest employer of labour in Sokoto State after the State Government, and the 60-year-old company founded by the Sardauna of Sokoto needed that investment to keep those jobs.”

    The effectiveness and efficiency of the plant in its first year of operation, which was over 90 per cent in an industry where efficiency averaged 60 per cent, led BUA to commence the construction of a second cement plant line of three million tonnes.

  • Mining is long-term investment, PwC chief tells investors

    PriceWaterhouseCoopers (PwC) has advised investors in the mining sector not to expect returns on investments quickly as the life cycle in any mining is always long.

    Its Director, Mr. Cyril Azobu, said looking at the entire value chain of the industry, the development period is long, adding that exploration, which is the most risky part of the value chain, takes quite a long time.

    Listing the challenges that face investors in the sector, he said it takes over five years to do exploration, after which the investor would begin to develop the area by building plants that will carry out the operations and do some level of processing.

    Azobu told The Nation in Lagos that even after processing, the investor needs to have export channels, adding that what is produced would still be subject to global commodity pricing.

    He also said there were also shocks that could affect pricing globally, so returns on investment will not be expected soon on investments in mining sector.

    He urged the government to speed up the implementation of last year’s mining roadmap as it clearly articulates the government’s aspirations and expectations from the sector.

    According to him, the roadmap  determines particular strategy needed to be deployed to achieving the mining sector objectives as it looks at across a chain, from institution building to stakeholder management, funding, and management of players in the sector and the whole range of things that are needed.

    “The roadmap articulated how we intended to grow the sector, which is actually different from the one in 2012, which was very ambitious. We wanted to grow the sector by 10 per cent by 2020 and we are still hovering around five per cent. Perhaps, we are putting the cart before the horse. You can’t just have such growth objective without having a clear strategy on how you intend to get it done.

    “It is one thing to have a roadmap and another to implement that roadmap, that’s the reason I’m saying that there could be bit more work to be done, and there could be more action to be taken to make the implementation faster. To get this done, it is not just government’s action, the private sector must be carried along. In fact, it should be private sector driven,” he said.

    Azobu said there is a mining implementation and strategy brief in the roadmap. He also said a team has been constituted and its responsibility is to have a  clear implementation plan on who takes what responsibility.

  • ‘Kenya, Ethiopia compete with Nigeria for investment’

    Nigeria, South Africa and Egypt are facing increasing competition for investment from Kenya and Ethiopia, a newly released Africa Risk-Reward Index, has said.

    The Africa Risk-Reward Index provides investors with a synthesis of risks and opportunities across the African continent. The Index was developed by Control Risks and Oxford Economics.

    Control Risks is a global risk consultancy, which helps organisations in the world to understand and manage the risks and opportunities of operating around the globe, particularly in complex and hostile markets.

    Oxford Economics is a world leader in global forecasting and quantitative data analysis, acting as a key adviser to corporate, financial and government decision-makers, and thought leaders.

    The report showed that Africa’s economic giants including Nigeria, South Africa and Egypt have been stumbling recently.

    It stated that economic downturn and militancy in Nigeria, rising security risks and political instability in Egypt, and escalating political risks in South Africa led to doubts whether the balance between risks and opportunities in these markets was still favourable for businesses.

    The report added that despite recent recovery in Nigeria and South Africa, Kenya and Ethiopia might soon outshine these economic giants in the competition for investment.

    Giving more insights, the report put Nigeria’s reward score at 6.0 (out of 10), ahead of South Africa and Egypt. It stated that Nigeria’s charms, however, fade against a risk score of 7.3 (out of 10), as President Muhammadu Buhari’s government struggles through its first term.

  • Cement self-sufficiency: BUA’s $1b investment to the rescue

    Cement self-sufficiency: BUA’s $1b investment to the rescue

    Nigeria’s road to self–sufficiency in cement has been long and tortuous. But her chances of achieving the target may have been brightened by the investment of $1 billion in Obu Cement Plant in Edo State by the BUA Group. Asst Editor OKWY IROEGBU-CHIKEZIE writes that the massive investment could change the economic landscape of the state and the country.

    With the investment of $1 billion in its cement plant in Okpella, Edo State, which, arguably, boasts Nigeria’s finest limestone depository, the BUA Group may have set the stage for the transformation of the state economy and, by extension, the economy.

    For one, the newly-inaugurated cement plant, which has the capacity to produce three million metric tonnes of cement yearly, is seen as a big boost and a massive intervention to address the domestic deficit in cement products for housing and construction.

    With the plant’s state-of-the-art setup seamlessly structured to facilitate the export drive, the investment is also seen as a significant boost for the nation’s cement self-sufficiency drive. BUA Group, according to its Chairman/Chief Executive Officer, Abdul Samad Rabiu, is building the second Obu cement line.

    Rabiu, who spoke at the launch of the facility, noted that the cement plant would reposition Nigeria from a cement importer to an exporter, increase production capacity from three million tonnes to 45 million tonnes by 2018.

    He said the cement sub-sector, which accounts for over 90 per cent of Nigeria’s mining sector, has the potential to shore up the $2 billion it injects into the country as foreign exchange (forex).

    Rabiu, however, said infrastructure, particularly stable power as well as policy consistency, was necessary to achieving a significant growth in the sub-sector. He said that the investment could double the sub-sector’s current 30,000 direct employment and over two million indirect jobs.

    “These kinds of investments in important sectors of the economy are not only necessary, they are critical.

    “In order to reverse our import dependency and diversify the economy, large corporations have to engage in game-changing investment in sectors such as agriculture, mining, and infrastructure, while government at all levels ensures an enabling environment for the investments to thrive,” Rabiu said.

    He said the vision of the company was to provide Nigerians with the best quality cement, using the best technology and best hands at the most affordable price. According to him, the choice of Okpella, in Estako East Local Government Area of the state, as the site for the plant, is strategic.

    “This community has the best limestone in the whole of the country,” Rabiu said, adding that the location is very good, being in the mid-west and it is very close to the cement market in the north, with excellent road networks in the south-west and to the east. “So, this place is at a strategic location to adequately distribute cement all over Nigeria,” he added.

    Rabiu also stated that the completion of the second line in the first quarter of 2018, being handled by SINOMA CBMI of China, is expected to take the company’s production capacity to six million metric tonnes per annum.

    He expressed confidence that SINOMA, with their track record and vast expertise in deploying cement plants across the world, would deliver a world-class second line for the Obu Cement Plant. “It will also meet our stringent environmental, safety, quality and technical requirements for our plants and products,” he said.

    The Obu Cement Plant utilises 9,000 tonnes of limestone and clay daily for its large-scale operations, while it produces 32.5, 42.5 and 52.5 grade cement. And the plant is engineered to be the most-environmentally- friendly cement plant in Africa with the most advanced dust emission control systems.

    “Our technology has the latest filtration with capacity of less than 10 milligram per normal cubic meter. We use natural gas, which is a very clean energy for both our kiln as well as the power plant, in addition to having a very green environment,” Rabiu said.

    At the inauguration of the plant and the ground-breaking of the second line, the Vice President, Prof. Yemi Osinbajo, pledged that the Federal Government would remove all human inhibitions to encourage investors.

    Commending BUA management for the achievement, he said the project, which is a wholly Nigerian enterprise, planned and executed by a Nigerian team, is a big boost to the economy, with the opportunities it will provide for skilled and unskilled youths of the state and the country at large.

    The Vice President noted that the plant’s output would guarantee self sufficiency of cement production for the nation, especially when BUA Group is using modern and efficient facilities with local materials. He said the company’s achievement had demonstrated that the Nigerian economic growth plan must be private sector driven.

    Osinbajo assured the private sector that the Federal Government would endeavour to make policies that would remove bottlenecks. “We will continue to create the enabling business environment and will directly assist the private sector to grow, which will in turn grow the Nigerian economy,” he said.

    According to him, the only feasible means to achieve a robust and far-reaching socio-economic development is to enable active involvement of private sector players and investors. Government resources, he said, cannot independently bridge the infrastructural and technological gap without the involvement of private sector resources.

    Osinbajo noted that advanced economies attained significance by the contributions of major entrepreneurs such as the Chairman of BUA Group. He emphasised that it was imperative to build a symbiotic relationship with committed serial entrepreneurs and investors to drive economic growth and development.

    His words: “Nation building is never judged by the number of new projects or fresh ideas that we begin; we are judged by what we complete and sustain. This country will only grow on the talent and resourcefulness of people like yourself who are ready to put their resources out and invest anywhere in the country, employ the local people in that community and add real value to the lives of Nigerians.”

    Edo State Governor Godwin Obaseki commended the management of the company for taking the bold steps in 2015 to initiate the process of establishing the plant. He expressed happiness that the management had made success of the company, including completely turning around the acquired moribund Edo cement factory.

    Obaseki said the vision and mission of the company were in line with the state government’s economic reform agenda, adding that “the State Government is ready to make Edo an industrial haven with friendly tax policies.

    He reassured the group of ensuring the operating environment was comfortable with the promotion of responsible and attractive tax regime. The state, he said, has reformed her land management process in a fashion that makes acquisition of land, security of approvals and building permit feasible without social harassments or uncontrolled communal land administration.

    Obaseki said: “We want to use this opportunity to invite other investors to emulate the BUA Group, come to Edo State and take advantage of the great potential in the state. Edo State is rich in limestone and other solid minerals, besides its status as an oil producing state. Government is resolute about economic diversification especially into areas where we have competitive and comparative advantage.”

    The governor also informed that his administration has created the enabling business environment for potential investors to invest in an industrial park, located in Ologbo, in Ikpoba Okha Local Government Area of Edo State, where the gas transmission line and proximity to power is expected to boost economic activities and create investments in the state.

    “We are currently designing an export processing zone with the initiative of investing in the Gelegele Port to boost production and agriculture, which is the major thrust of both the Federal and Edo State Governments’ economic diversification programme,” Obaseki added.

     

    How the BUA journey began

    The acquisition of a two million tonnes floating cement terminal labelled BUA Cement 1 in 2008 marked the company’s entry into the Nigerian integrated cement manufacturing. It was the first time the industry experienced a technology driven bulk-bagging of cement on a vessel.

    It acquired majority stake in the publicly listed Cement Company of Northern Nigeria PLC (CCNN), as well as in Edo Cement Company Limited in the same year before investing in the construction of a Greenfield three million tonnes plant in Obu.

    On the acquisition of CCNN, Rabiu said: “BUA’s investment in the cement line in Sokoto is the single largest private sector led investment in the North-Western part of Nigeria.

    “This is particularly important because Sokoto cement was the largest employer of labour in Sokoto State after the State Government, and the 60-year-old company founded by the Sardauna of Sokoto needed that investment to keep those jobs.”

    The effectiveness and efficiency of the plant in its first year of operation, which was over 90 per cent in an industry where efficiency averaged 60 per cent, led BUA to commence the construction of a second cement plant line of three million tonnes.

  • Nigeria’s real estate set for global investment standard

    The quest for diversification of the economy and attract foreign investment is set for a boost with promoters of The Oceanna unveiling investment options for part-ownership, similar to what earned the Dubai real estate sector global appeal.

    The Group Managing Director, Palton Morgan Holdings, Adeyinka Adesope, said the hotel segment of the iconic project is open to part-ownership with flexible payment options, secure and high returns on investments. “We are opening up the real estate sector to investors both in Nigeria and the Diaspora. Having embarked on a project that has clearly redefined the real estate sector in Nigeria by setting the standard for luxury and working with globally acclaimed professionals/consultants, we now invite investors to participate,” he said.

    Information available on their website indicates that Grenadines Homes, a member of Palton Morgan Holdings, is trying to match the Nigerian real estate sector with Dubai where luxury, safety of investments, flexible financing and high returns, among other things have combined to increase global appeal to that market.

    According to Head, Marketing Services, Palton Morgan Holdings, Kikelomo Williams, the company desires to open up a plethora of opportunities and experiences to discerning investors with the project. “The Oceanna Hotel is more than just a location. It is carefully set out as a plethora of opportunities and experiences, but the first step is to be an investor. It guarantees a lifetime stream of income,” she said.

    She is confident that the global appeal of the iconic development is not just in beauty, “the quality team of experts and professionals working on it will excite anybody familiar with topnotch real estate across the world’’.

  • Chad is good for investment, says UBA

    Chad is good for investment, says UBA

    The United Bank for Africa (UBA) has declared Chad as a good investment destination.

    Chairman of UBA Group Tony Elumelu said this during a forum organised by the Chadian government on the financing of its National Development Plan 2017- 2021 last week in Paris.

    Elumelu, who was represented by the CEO, UBA Francophone Africa, Emeke E. Iweriebor, said UBA’s decision to invest in Chad a decade ago turned out to be a sound investment decision.

    “UBA Chad has contributed to the growth of the Chadian economy through financing infrastructure, a critical lever in sustainable development,” he said.

    He added that UBA Chad is one of the Pan-African bank’s high performing subsidiaries in Africa and encouraged potential investors to look into Chad as an investment destination.

    The forum was opened and closed by Chadian President Idris Deby.

    In attendance were President of Mauritania Mohamed Ould Abdel Aziz, Chadian cabinet ministers, representatives from various governments, including the governments of Japan, Canada, the U.S.A, Saudi Arabia, Switzerland and from the African Union, AfDB, European Union (EU), International Monetary Fund (IMF), the International Finance Corporation (IFC) and many others.

    Iweriebor said at a session during the forum that with the presence in 19 African countries as well as in London, Paris and New York, UBA has supported several projects in Chad, including a 60 Mega Watt Central Electricity power plant in Farcha.

    UBA contributed $18.5million and led the syndication that raised $80 million for the project resulting in an improvement in the access to electricity in Chad by 3.9 per cent.

    The bank continues to support the government of Chad in its development initiatives in the areas of infrastructure, oil and gas and other key sectors of the economy.

    The forum on the national development plan saw many organisations and countries pledging support to Chad with about $20 billion raised.

    Derby thanked the people and organisations present for coming to support Chad.

    He promised that the administration was going to put in maximum effort to ensure that the development plan was successful.

  • Plateau partners Dangote for investment

    Plateau State Governor Simon Bako Lalong has said his  government will partner Dangote Group in policy formulation, tax holidays, land and security, to ensure safety of investment in the state.

    He spoke when he led top government functionaries to visit the Chairman  of Dangote Group,  Alhaji Aliko Dangote, at the headquarters at Marble House, Ikoyi, Lagos, during the annual general conference of Nigeria Bar Association (NBA).

    The governor said the meeting was intended to woo the  the billionaire investor in core areas of agriculture, with emphasis on wheat, rice, tomato and Irish potatoes on a large scale production, solid mineral exploration and processing, establishment of agro-based industries and capital injection in a public private partnership, to revitalise ailing industries in the state.

    Lalong said the government secured the Federal Government’s support to secure mining sites not under any lease from the encroachment of illegal miners.

    He said the state had arrangement to re-acquire the former BARC Farms, with a wide expanse of about 5,000 hectares, adding that it will  open up Bokkos Farm with 3,000 hectares, for investment in agriculture.

    “This is besides the potential the state has, to acquire arable land for cultivation.”

    Dangote hailed the governor for the return of peace in Plateau, noting that conflicts, which engulfed the state in the past, discouraged investors.

    He said: “With the return of peace, openings exist because of the weather of Plateau State for large scale cultivation of wheat, rice, vegetables and fruits.  My company is interested in exploring these.”

    Dangote thanked Lalong for keying into the global trend of employment creation and revenue generation through private sector participation.

    He assured him and his team of his readiness to send in consultants to engage the government and explore areas of interest.

  • Enugu: Much ado about Iran’s investment

    Some years ago, Nigerians welcomed the advent of social media as channels of communication and information. It was invented to speedy dissemination of information and to promote effective communication. As good as it is, Nigerians have speedily turned it to rumour mill and a means of promoting and propagating hate speeches, lies, misinformation, divisive politics and propaganda. Mischievous Nigerians have also latched on its non-regulation by any agency to abuse it to the detriment of the peaceful co-existence of the country.

    That is why today almost every Nigerian is either a blogger or an online journalist, without a clear identity or particular address. All it requires is for one to get a Chinese handset, recharge date, sit down in the comfort of a home to be fabricating lies and sending out on the social media platforms undisturbed.

    They are always handy to be hired by politicians or any other persons to blackmail and demonise their perceived enemies without being tracked or traced. Many Nigerians, being gullible and lazy researchers and readers, usually rely social media platforms as news to form opinions. This is even when it is a basic rule in information dissemination that the sources of information are more important and credible than information itself. But who cares especially when some Nigerians for reasons best known to them have decided to replace credible news with rumour mongering and hate speeches?

    This was exactly what happened in Enugu recently after the Ambassador of the Islamic Republic of Iran to Nigeria, Morteza Rahimi Zarchi, spoke at the Government House, Enugu, during a courtesy call on the governor. He stated that he was in Enugu to see to the feasibility of establishing an Iranian Hospital, modeled after the one in Dubai, at the ongoing Heliu Residences Project in Enugu. The governor, Ifeanyi Ugwuanyi in his response said that his administration is fully committed to the sustenance of an environment that is conducive for businesses and other developmental initiatives in the state, as well as necessary legislations, institutional frameworks, favourable tax regime amongst others.

    As a background,  a private firm, FIT Consult Ltd, developing the Heliu Residences project in Enugu had invited the diplomat to the state to undertake a feasibility study of establishing an Iranian Hospital, modeled after the one in Dubai at the ongoing estate. The ambassador while in Enugu paid a courtesy visit to the Government House, Enugu, where he informed the governor of his mission to the state. At the meeting, no MOU was signed and no bilateral agreement was reached.

    With this, which happened in the broad daylight and covered by the print and broadcast media, some hired elements operating on social media platforms twisted the event by alleging that Enugu State government signed bilateral agreement with the Iranian government to build a world class hospital in the state as a step to Islamise the region!

    What a failed attempt to mislead and pitch the people of the state against the governor, Ifeanyi Ugwuanyi, who has not only provided leadership, but has provided enabling environment for the peace that is attracting investors. But this is not unexpected as more of it will come, especially as 2019 elections are drawing nearer.

    It would be recalled that on assumption of office, Ugwuanyi’s government organised an investment summit where the economic potentials of the state was showcased to the world. Since then, investors across the country and outside have seen the state as a destination because of its peaceful and friendly environment.

    From the above scenario in Enugu, the questions are – where did the Enugu State governor go wrong in welcoming the Iranian Ambassador that was brought to the state by a private estate developer? When has it become an offence for a governor to assure an investor of enabling environment to operate? Does the state government have any power to stop private investors from attracting partners from outside the country? This is especially when such investors have received clean bill of health from the relevant security agencies.

    The problem is that Nigerians have failed to realise the limit of politics. Politicising developments is one of the major hindrances to rapid development and Nigeria is not an exception. The Enugu event reminds one of when the idea of Islamic Bank was initially mooted during the administration of President Goodluck Jonathan and some people kicked against it, expressing fear that the country will be Islamised through it. All sorts of rumours and propaganda were peddled to frustrate the establishment of the bank in Nigeria. But President Jonathan saw beyond the sentiments and emotions being bandied by some people and gave the order for the licensing of the bank which is today known as Jaiz Bank.

    Delivering a keynote address at the Nigeria Bar Association (NBA) conference in Port Harcourt in August 2011 on the topic titled: “Sustaining an Enduring Democracy in Nigeria,” Nobel Laureate, Prof Soyinka said the fears that greeted the proposed Islamic banking were unnecessary, as long as the proposition does not contravene the law”.   He said laws do exist in the banking sector, even as he said the country can practise any form of banking as long as such practice does not go against extant rules and regulations in the land. He also said the proposed Islamic banking which exists in other climes should not be an issue because it was not responsible for the scores of developments that have dragged the Nigeria backwards, including the Niger Delta crisis, the Boko Haram or the epileptic power supply the country was experiencing over the years.

    “Does the entry of Islamic banking contravene the law? Why is it much of an issue and attracting inflammatory?”

    Today many state governments have taken and still taking lower interest loans from the Jaiz Bank to develop their states. None of those who kicked against its establishment is kicking against getting loans from the bank at lower interest rate for development. Who knows if after building the worldclass hospital in Enugu, the Iranian government and its Nigerian investor will employ Nigerians as workers and provide healthcare services at affordable rates. This cannot be ruled out, what happened in Jaiz Bank.

     

    • Ude, wrote from Amokwe,Udi, Enugu State. 
  • MINISO’s $1.5b investment berths in Lagos

    MINISO’s $1.5b investment berths in Lagos

    The Federal Government’s quest for foreign direct investment (FDI) has yielded yet another positive boost. This comes on the heels of a $1.5 billion investment by MINISO, a Japanese designer brand  opening of outlets across the six high-brow shopping malls in Lagos.

    Announcing the arrival of the designer giant into Nigeria on Wednesday, the Country Manager, Mr. Chris Lee, said MINISO products include lifestyle essentials  and creative home necessities, health and beauty products, fashion accessories, gadgets accessories, digital accessories, stationeries gifts, unique toys series, seasonal products, Kitchen ware, etc.

    He said: “Miniso advocates a philosophy of quality life and is dedicated to providing premium and high-quality products to its customers, with a creative ideology of competitive and affordable pricing.

    ‘’MINISO continuously selects the best materials from all over the world for its products designs with a focus on the home and life. 80 per cent of the designs are from Japan, Korea, Sweden, Denmark, Singapore, China and Malaysia’’.

    Quoting Ye Guofu, a co-founder of MINISO, he said the higher the price, the better the quality.

    ‘’Those low price with bad quality products resulting from the profiteering desire are originated from the period of command economy.

    ‘’The time for good quality with low price products has just begun. In this era, the actual value of a brand should be beneficial to millions of people rather than providing services only to the noble and the rich. These very values and principles have induced the inception of MINISO,’’ Lee said.

    According to him, the brand has established a new type of shopping experience with cozier stores, which has become the main force within the department stores and shopping malls along with catering, fast fashion clothing and entertainment.

    “We strive to provide consumers with simple, natural and quality products, at lower prices, so as to give the consumers an exciting and happy shopping experience”, he added.

    He said the brand’s grand opening ceremony will hold in a forthnight simultaneously across three  premium shopping malls in the state- Ikeja City mall (Alausa, Ikeja), Circle mall (Lekki) and Novare Mall (Sangotedo-Ajah). Three more stores will follow suit by end of next month in Palms mall (Lekki), Festival mall (Festac), and Maryland mall (Maryland).

    Lee, however, assured that MINISO’s presence will soon be felt in other major stores across the country, to give more Nigerians opportunity to access the benefits and experience of MINISO’s array of products. With simple and quality features as well as leading the trend of intelligent consumption, he noted that most MINISO products are priced from N990, thus earning love from the major consumers aged from eight to 60.

    Aside the unique shopping experience, Lee said its presence in Nigeria will lead to increase in employment rate and boost local procurement.

    ‘’With MINISO’s strategic plan to have about 500 stores across Nigeria by 2019, the brand is committed to employing about 30,000 Nigerians and this will reduce the country’s current unemployment rate by at least 0.99 per cent.

    ‘’Over time, MINISO is committed to procuring most of its raw materials locally. We are also committed to transferring standard retail knowledge with an achievable projection of establishing a retail focused education system and transfer of knowledge to Nigerians. With this, individuals can carve a fulfilling career path for themselves in retail.

    The Marketing Communications Manager for the firm, Miss Colette Atane, used the launch to unveil the Brand Ambassador for MINISO Nigeria, Mrs. Stephanie Linus, a renowned Nollywood Actress, Director and Producer, emphasised that the brand philosophy of simple, natural and quality is the major reason for the choice of Linus as she exemplifies the very essence of the MINISO Brand.

    Responding, Linus expressed excitement about the breath of fresh air coming into the Nigerian Retail market as she echoed that MINISO represents the perfect mix of ‘quality and affordability’ with a wide range of products that appeals to all age groups.

    She said, she glad to be part of the phenomenal ideology of “simple”, “natural” and “quality” products.

    Listed as one of the fastest growing retail brands since its her establishment in Japan in 2013, MINISO has actively explored the international retail market by opening over 2,250 stores in more than 41 countries. It plans to increase same to another 15 countries  with a turnover of $750 million in 2015 and $1.5 billion in 2016.

    The firm is said to have beaten all  odds with an average monthly growth rate of 80 to 100 stores across countries including the United States, Canada, Russia, Singapore, the United Arab Emirates, Korea, Malaysia, Kazakhstan, and Australia.

  • ‘Hotel investment forum contributed $16.8m to African economies’

    •Created 5,462 jobs

    The total contribution of the Africa Hotel Investment Forum (AHIF) to economies on the continent, since inception, has hit $16.8 million. It is estimated that AHIF has been responsible for deals worth over $4 billion cumulatively.

    An international audit, tax and advisory experts, Grant Thornton, which made the independent assessment, said the headline figures included direct, indirect and induced financial benefits – accepted economic multipliers – and run from the first AHIF in Morocco in 2011 to Rwanda last year.

    AHIF is Africa’s premier hotel investment conference, which attracts many prominent international hotel owners, investors, financiers, management companies and their advisers.

    AHIF is organised by Bench Events, which has a track record of delivering multiple premium hotel investment conferences and forums across Europe, the Middle East, Africa, Asia and Latin America.

    Key findings of the Grant Thornton report, which spanned over six year, listed AHIF’s economic benefits to include $6.9 million direct contribution of AHIF to local economies, additional $9.9 million generated through indirect and induced impact, ie boosting local suppliers, increasing local spending power.

    The report obtained by The Nation, also said a total of $1.1 million were paid in taxes in various host countries, while a total of 5,462 jobs – temporary or permanent – were created or sustained.

    Delegate survey, according to the report, indicated a total deal value of $124 million, an average of $4.6 million per deal – translated for all AHIF events between 2011 and 2016, deals total an estimated $4.4 billion.

    Report author, Martin Jansen van Vuuren, said, “On average, hosting an AHIF event brings a million dollars in direct benefit to the local economy, an additional $1.4 million in indirect benefit and a substantial six-figure sum in tax to the host government.”

    He noted that one key gauge of AHIF’s success was the high-level of the delegates it attracts. “The attending CEO’s and MD’s do not only spend more than average by staying in the best hotels, but much more importantly, they are people with the ability to make decisions, including whether or not to invest in a destination – and that’s reflected in the value of deals done,” he said.

    Vuuren added that the report also highlighted the fact that host economies benefit from wide media coverage and from the credential of hosting a top-level conference like AHIF. He said doing so helps to attract further events, which boost local companies and provide job opportunities as well as the chance to develop skills.

    Commenting on Africa’s broader economic prospects, Martin said: “Economic growth of African countries may have slowed at present because of commodity prices, but commodity prices will rise again.

    “And given hotel development lead-in times, which are three years on average, and taking in to account the life of the asset, which is decades after the hotel is built, this is a good moment for investment, in my view.”

    The Chairman of Bench Events, Mr. Jonathan Worsley, said: “We are gratified that this report bears out what we’ve always believed: that hosting AHIF adds value to the places we visit and the conference is a great place to discuss deals which benefit tourism in Africa.

    “This year’s event will be our most comprehensive and exciting with an outstanding line-up of speakers, first-hand advice from experts and unique networking opportunities.”

    The seventh edition of the AHIF is billed for Kigali, Rwanda, between October 10 -12, 2017. According to Worsley, “Rwanda is a prime example of what can be achieved in our sector by a country that is determined to use tourism to propel itself forward and we’re pleased to be back again in October.”