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  • ‘LCCI 2016 awards celebration of best practices, CSR’

    ‘LCCI 2016 awards celebration of best practices, CSR’

    The 2016 Commerce & Industry Awards organised by the Lagos Chamber of Commerce & Industry (LCCI) was a celebration of  companies that have grown over time through innovations and business sustainability. It was also for rewarding companies that made positive impact on the people,  integrity, transparency and social responsibility, the LCCI President, Chief Mrs. Nike Akande, has said.

    The ceremony, which held in Lagos, during the week, celebrated private and public institutions operating in Nigeria for their best business practices and growth through innovations.

    Speaking at the event, Mrs Akande said: “We are celebrating enterprises that have excelled in the economy amidst multitude of challenges in the investment environment. We are excited that many of them are also indigenous enterprises.”

    Some of the companies that came tops are Nestle Nigeria Plc and Unilever for High Standards in Food manufacturing, Olam for most impactful investment in agriculture, May & Baker for high quality & safety in pharmaceutical manufacturing and Alpha Morgan Capital Managers Limited for emerging investment banking firm.

    Others are NEXIM Bank for Trade Finance Bank of the year, Techno Oil for the most impactful company in clean cooking, Coleman Technical Industries Limited for impactful investment in wire and cables, Sujimoto Construction Limited for most innovative luxury real estate firm, Skool Media for innovation & creativity in education among others.

    Mrs Akande said the LCCI awards would, amongst other things, continue to promote healthy competition among corporate organisations as well as public sector institutions. She said the Chamber believes that there is tremendous value in competition.

    She commended the Federal Government on the ongoing efforts at fixing some critical sectors of the economy such as power, security, forex issues, infrastructure, institutional bottlenecks and corruption.

    Responding, the awardees commended the Chamber for recognising their impact in the growth of the economy and encouraged the government to put in place robust measures to encourage businesses in the nation. They canvassed the withdrawal of hurtful policies that discourage investment and encourage capital flight.

    In his closing remarks, LCCI Deputy President, Mr. Babtunde Ruwase, thanked  the firms that participated for their contribution to the development of the economy and promised that LCCI as a critical partner in the economy would continue to contribute its quota to the growth of the economy.

  • LCCI unveils 2016 International Trade Fair

    LCCI unveils 2016 International Trade Fair

    The Lagos Chamber of Commerce and Industry (LCCI) drew the attention of managers of the Nigerian economy and the public  to the importance of harnessing the nation’s human resources with modern technology, in addition to adding  value to the non-oil export that will result in improved earnings for the country.

    LCCI President, Chief  Nike Akande stated this at   the public presentation of the prospectus of the 2016 Lagos International Trade Fair scheduled to hold from Friday November 4 to Sunday November 13, 2016, tagged: “Positioning the Nigeria Economy for Diversification and Sustainable Growth Enhancing”.

    Akande said:  “We have neglected our non-oil sector for too long , hence we are blessed with abundant deposits of solid minerals which had remained largely undeveloped over the years. There are needs to focus on a non-oil economy such as Gypsum, Bentonite, Tantalite, Bitumen,Coal, Gold, Gold Baryte, Iron ore, Gemstone and many more”.

    She  stressed the need to  identify the alternatives to crude oil, including  giving exposure to the opportunities that abound in value addition to enhance earning and profitability.

    Also speaking, Chairman, Trade Promotion Board, Mr. Sola Oyetayo said the public presentation of the prospectus is also coming on the heels of the Chamber’s introduction of three trade venues to facilitate corporate exhibitions, business to business meetings, and boost Nigeria’s rapidly growing creative industry.

  • Rotary South Africa delegates visit LCCI

    Rotary South Africa delegates visit LCCI

    A delegation of Rotary International District 9400 has visited the Lagos Chamber of Commerce and Industry (LCCI) on Victoria Island, as part of the group’s Friendship Exchange programme.

    The team, which was visiting the country for the first time, was led by Mrs Koeki Quashie. She was accompanied by her husband, Kobla; the Honorary Consul of the Ghana High Commission in South Africa, and Chief Executive Officer, TravelVision, Mr Peter Bradshaw David.

    Mrs Quashie said they were on a two-week visit to the country, adding that though some of the group’s members had visited other countries, they had not been to Nigeria or any African country.

    She said: “We have never had any exchange in Africa. I have always wondered why we don’t do inter-African friendship exchange.  This exchange involved a lot of hard work but I am happy to say that it came to fruition.’’

    LCCI Director-General Muda Yusuf said his organisation and Rotary have some things in common – both are voluntary organisations and that some past presidents of LCCI were Rotarians. He said though opportunities and resources abound in Nigeria, the economy is facing some challenges.

    He,however, added that the government through its reforms policy is solving the problem. ‘’Nigerians are very enterprising people. We are everywhere,’’ he said.

    Others at the event were LCCI Director of Trade Promotions and International Relations Dele Alim; Head, BEST Unit, Mayowa Olanihun.

    On the Rotary District 9110’s team were Chairman,Friendship Exchange Mrs Onikepo Oshodi and Mrs  Uyi Sowobi, among others.

  • LCCI to celebrate core values in business

    LCCI to celebrate core values in business

    The Lagos Chamber of Commerce and Industry (LCCI) has concluded plans to honour excellence and ethical business practices at the Commerce & Industry awards slated for Lagos.

    LCCI Director-General Muda Yusuf said the objective of the annual awards was to recognise, celebrate and promote private and public institutions who have exhibited the core values of best business practices.

    He said it was also for those who have impacted positively on the society through innovations, business sustainability and positive growth.

    “LCCI Commerce and Industry Awards prides itself as a highly credible platform where winners emerge through a painstaking selection process from hundreds of entries supported by robust research and market intelligence,” Yusuf explained.

    Some of the awards to be won at the event include award for excellence in diverse sectors of the economy such as banking, pension, insurance, hotel, hospitality, power and energy.

    Others are healthcare, manufacturing, construction, automobiles, aviation, pharmaceuticals, education, media and broadcasting among others.

    Yusuf also revealed that the chamber will be celebrating deserving corporate organisations and public institutions that have made remarkable contribution to the development of commerce and industry, and the economy at large.

  • Reverse decline in FDI, LCCI urges

    Reverse decline in FDI, LCCI urges

    President, Lagos Chamber of Commerce and Industry (LCCI), Mrs. Nike has called for a reverse in declining flow of investments.

    She urged the government to increase capital inflows, by relaxing foreign exchange policies to facilitate export proceeds’and diasporan remittances as well as foreign investments.

    The LCC chief was reacting to a report by the National Bureau of Statistics (NBS) that the flow of investment into the country declined to $11.68billion (N2.3 trillion)  from $51.7billion (10.18trillion).

    The report showed that all the three major components of investment, such as foreign direct investment, portfolio investment and other investments declined within a three-year period.

    It said last year’s drop was not unconnected with the tough economic environment resulting from the lower global oil price and the prevailing foreign exchange policies.

    But Mrs Akande raised concern over the down trend in the stock market, lamenting that it is not showing any sign of abating as the market capitalisation has continued to tumble.

    “As at March 18, the (NSE) All-Share Index and market capitalisation depreciated by 1.13 per cent at 25,694.79 and N8.839 trillion. The stock market performance is largely a reflection of the sentiments of investors in the larger economy,” she said.

    The LCCI boss also lamented the worsening power supply across the country, noting that it continued to pose challenges to business operators, despite the tariff increase.

    She regretted the high energy costs, especially the high expenditure on diesel and petrol for large and small businesses respectively as most businesses spend as much as between 15 and 25 per cent of their total operating cost on alternative power sources.

    Mrs Akande stressed the need to explore alternative models of power provision which focuses on diversification of energy sources and decentralisation of power supply channels.

    The high dependence on gas pipelines from the Niger Delta is charecterised by high vulnerability risks which the economy and the citizens can no longer bear, she added.

     

     

     

    She said: “To facilitate the adjustment, we urge the government to create an enabling environment that will enhance the capacity and productivity of private sector enterprises. The policy and institutional environment need to be enabling. There are numerous sectors of the economy which potentials are largely untapped. We believe that this is the time to look very closely at these various sectors in order to accelerate the economic diversification process.”

    While calling on government to improve on the ‘Ease of doing business’, she recalled that Nigeria ranked 169 among 189 countries with Mauritius ranking 32 as the best in Africa.

    She called for the speedy passage of Petroleum Industry Bill (PIB), Solid Mineral Industry Reform Bill, Railway/ Rail Transport and Inland Waterways Bill. Others are Port Reform Bill, National Transport Commission Bill, Competition and Consumer Protection Bill and the Land Use Act Bill.

    According to her the Organised Private Sector (OPS) believes that when the bills are passed into law, it will provide the much needed legal framework for economic diversification including support for the private sector to create economic opportunities in the country. According to her, the overall objective is for the nation to retain existing investment, attract new investors, create favourable business environment and boost current level of trade flows.

    On the budget, she stressed the need to improve the budgetary process to ensure timely presentation and expeditious consideration by the National Assembly. She said: “There are currently too much discretion on the part of both the executive and legislature on timing. There is need for framework that would be time bound as it is the practice in more advanced democracies. There should be statutory timeline for budget presentation; consideration by the National Assembly and assent by the President. If complied with, it would be beneficial for planning for public and private sectors; enhance faster delivery of infrastructure, reduce uncertainty. It also has the potential to enhance cash flow into the economy.”

  • LCCI to Fed Govt: adopt flexible forex regime

    LCCI to Fed Govt: adopt flexible forex regime

    The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to implement a flexible exchange regime to manage the country’s weak currency to stimulate investment.

    Its President, Chief Nike Akande, stated this during the chamber’s media conference in Lagos.

    She noted that a flexible exchange rate regime is  adopted to cope with changing demand and supply conditions in the forex market.

    She said the economy is not as developed as others and should adopt policies that will be in the best interest of the people.

    She said: “The average naira exchange rate remained stable at the inter-bank segment of the foreign exchange market with a daily average of N196.99/$ between January 25 and March 14, 2016. So far, the value of the naira has depreciated by 17.2 per cent at the CBN window from N165 to the dollar (which it was at the end of December 2014), to the current rate of N196.9. However, the parallel market is still under pressure for the last couple of months even as the depreciation remains huge with the value of naira weakening by almost 100 per cent at an average of N320 to a dollar to date.”

    She added that the recent sharp depreciation of the naira exchange rate in the parallel market is worrisome, stressing that it is a trend that should not be allowed to continue and that  necessary steps should be taken to stem the slide and volatility as it is as much of an issue to consumers as it is to producers stakeholders that create value in the economy.

    She said: “The discussion at this time should not be about devaluation of the naira. It should be about a pricing mechanism that is sustainable, predictable and transparent. It is about a policy regime that would reduce uncertainty and inspire the confidence of investors.  It is about a policy framework that would minimise discretion and arbitrage in the foreign exchange allocation mechanism.  This is what the discussion should be about.’’

     

     

     

     

    She said the benefits of this approach are that it enhances liquidity in the foreign exchange market, it reduces uncertainty in the foreign exchange market and therefore enhances the confidence of investors, it is more transparent as a mechanism for forex allocation, it minimises discretion in the allocation of forex and it reduces opportunities for round tripping and other sharp practices.

    She continued: “The  framework adopted by the CBN is a fixed exchange rate regime.  This model is better suited for a country that has adequate reserves to support the fixed rate. But in our case, we do not have the reserves to support the exchange rate at N197 to a dollar. This is the fundamental issue at this time.The consequences are already manifesting in the following ways; widening gap between the official and parallel market exchange rates to an unprecedented level of over 60 per cent, lack of liquidity in the foreign exchange market resulting in acute scarcity, mounting trade debts, increasing factory closures as many manufacturers are not able to access foreign exchange for raw materials and other input, many investors are not able to meet offshore obligations, mounting inflationary pressures, and sharp drop in capital inflows.’’

    She added: “In the light of the foregoing, we recommend the following policy options to mitigate the current crisis; adoption of a flexible exchange rate regime, this would improve liquidity in the forex market, reduce uncertainty and enhance investors’ confidence.

    “Flexible exchange rate deepens the autonomous foreign exchange market through the liberalisation of inflows from export proceeds, Diaspora remittances, multinational companies, donor agencies and others.  Market rates should be allowed to prevail in the autonomous window.”

     

  • Budget 2016 ‘ll stimulate economy, say LCCI, MAN

    Budget 2016 ‘ll stimulate economy, say LCCI, MAN

    The Organised Private Sector (OPS) is excited about the N6.06 trillion budget for this fiscal year.

    The Lagos Chambers of Commerce and Industry (LCCI) and the Manufacturers Association of Nigeria (MAN) said the budget would stimulate the economy.

    LCCI Director-General Muda Yusuf said the budget’s size  and its reflationary character would have a stimulating effect on the economy.

    He said it is what the economy needs at this time, considering the economic slowdown of 2.1 per cent in Gross Domestic Product (GDP) growth from about four per cent a year ago, rise in unemployment and slow down in industrial activities.

    The LCCI chief praised the budget for giving priority to infrastructure as well as security, noting that it is a step in the right direction given the huge infrastructure deficit in the country and having regard to the security challenges in some parts of the country, particularly the northeast.

    Yusuf, however, said the budget’s debt service provision of N1.5 trillion is a cause for serious concern. According to him, it shows that Nigeria is operating a debt profile that is not sustainable.

    “This amount is about 35 per cent of revenue, which has already exceeded the global threshold for debt sustainability,” he pointed out.

    The LCCI chief added that although debt service is an obligation over which the nation has very little choice, the lesson is that Nigeria needs to review her debt management strategy to reduce the burden of debt services her finances.  “The opportunity cost of current debit service provision for the economy is very high,” he said.

    Yusuf however, identified the drop in oil revenue as a contributory factor to the high deficit in the budget. He said the immediate implication is that the level of borrowing domestically and externally has increased, and this also has implications for debt service burden.

    He maintained that due to increased borrowing, the impact of the reduction in oil revenue has been mitigated.

    While commending the expected increase in efficiency and reduction in leakages in the management of government finances, the LCCI boss observed that the introduction of the Treasury Single Account (TSA) has also boosted government revenues. He expressed hope that the conglomeration of the targeted policies of government will make up for the shortfall in oil revenue.

    His words: “There is need for an appropriate economic policy framework that could inspire investors’ confidence. Private capital is crucial to the progress and diversification of the economy.  Only the right mix of policies would make this happen.

    “There is a need to urgently address the policy shortcomings in the foreign exchange management; undertake urgent reforms in the petroleum downstream sector; review existing trade policies and promote investment friendly tax policy.”

    Also, the President, Manufacturers Association of Nigeria (MAN), Dr. Frank Udemba Jacobs, said the budget would make appreciable impact on the economy if thoroughly implemented. He also commended the huge allocation made to infrastructure. According to him, poor infrastructure remained the bane of the economic development of the country, as the private sector has remained uncompetitive.

    On the allocation to the Ministry of Industry, Trade and Investment, the MAN president said the figure is adequate, adding that what they do is trade promotions, exhibitions and nothing more.

    Dr. Jacobs however, said the removal or reduction of N17 billion by the National Assembly did not make any appreciable difference. The approved N6.06 trillion budget for 2016 was an increase over last year’s N5trillion budget. Under the current dispensation, government budgeted a total of N1.36 trillion to debt servicing while allocating over N16, 296,622,303 billion to the Ministry of Industry, Trade and Investment.

  • LCCI, PwC identify priority sectors for diversification

    LCCI, PwC identify priority sectors for diversification

    Experts have advised the Federal Government to give priority to four sectors – agriculture, petroleum (petrochemical and refining), retail and Information and Communications Technology (ICT) – in its  efforts at weaning the economy off its over-dependence on oil.

    At a stakeholders’ forum in Lagos on the state of the economy, experts noted that the sectors have the most dominant transmission links to the economy.

    “These sectors in the medium-to-long term are key to boosting other sectors like manufacturing,” Country and Regional Senior Partner, PwC Nigeria and West Africa, Mr. Uyi Akpata, said.

    The theme of the forum was “Nigeria: Looking beyond oil”

    At the event organised by the Lagos Chamber of Commerce and Industry (LCCI) in collaboration with PwC Nigeria, Akpata said the need to target the agric sector, for instance, was because of its forward linkages to agro-processing and other services, such as logistics as well as backward integration to input supply sectors, which could improve farm incomes, increase employment and improve domestic food security.

    He projected that, potentially, Nigeria’s global agriculture exports could take-off at a rate similar to Brazil’s, with $59 billion in export revenues by 2030.

    The senior partner of the leading consulting firm also said value added to oil and gas output needs to urgently improve by implementing diversification within the sector. According to him, this requires investments across the downstream sector to develop petrochemicals, fertilisers, methanol and refining, industries relevant in both industrial and consumer products, which Nigeria imports.

    Similarly, the retail sector, he said, holds promises. While pointing out that consumer spending is the largest driver of the economy, accounting for about 70 per cent of Gross Domestic Product (GDP), he said the firm expects that this will be the boost for the retail sector growth even as population continues to expand.

    “Thus, as incomes rise along with rapid urbanisation, we project that household consumption expenditure could reach $1.1 trillion by 2030, from $317 billion in 2014, which implies a growth of nine per cent through 2030,” he said.

    Also, with Nigeria’s teledensity at 107.87, a large population of young urban people and massive scope to improve Internet broadband penetration, the expert projected that Nigeria is likely to see accelerated growth of its digital economy. He said more importantly, the opportunity to leverage technology to generate improved social and economic outcomes across other sectors has been created.

    Mr. Akpata said Nigeria is the largest economy in Africa and 22nd globally. “We project that the economy could rise through the world rankings to top 10 in 2050 with a projected GDP of $6.4 trillion, surpassing Germany, the United Kingdom, France and Saudi Arabia,” he said.

    He, however, said to achieve this diversification of the economic from its over dependence on crude oil is required. “Nigeria’s intrinsic potential lies beyond oil; harnessing this potential has become an imperative given the expectations of lower oil prices,” he stated.

    LCCI President, Chief Nike Akande, could not agree less. Describing the stakeholders’ forum as “strategic, timely and significant”, she said “it was an opportunity to discuss and to pool our wisdom together regarding how our country can navigate the lingering economic challenges and proffer alternative paths towards sustainable economic growth and development.”

    According to her, the sustained decline in global oil prices since 2014 has put the nation in difficult position and consequently led to various fiscal and economic challenges such as the drop in foreign earnings, decline in foreign reserves, huge financial bailout for some state governments and unstable macroeconomic environment.

    Mrs. Akande said a holistic and sustainable economic diversification strategy is desirable and in fact, inevitable at this time. “We need to put an end to the high dependence on oil. Strategic decisions and policies that will put the Nigerian economy on a path of sustainable recovery have become imperative.

    “Without doubt we need to pay greater attention to manufacturing, agriculture and agro allied industries, solid minerals, ICT, entertainment, tourism and many other areas in the non-oil sector,” she added.

    Vice President Yemi Osinbajo, said the topic of the forum was in line with President Muhammadu  Buhari administration’s determination to boost economic growth through effective policies.

    He said the administration was already making important strides to actualise the administration’s commitment in delivering the change agenda.

    “Indeed, we are repositioning the economy for exclusive growth and successful development by getting the fundamentals right be it fiscal, monetary, trade and investment policy reform,” the Vice President said.

    Osinbajo, who was represented by a Senior Special Assistant, Dr. Jumoke Oduwole, added that the administration remained committed to diversifying the economy away from over-dependence on oil and creating an enabling environment that will aid private sectors set goals and development.

    “We are investing in critical infrastructure, embracing and encouraging the private sector and advocating for greater inclusion particularly through job creation. To attain this, our administration is prioritising key areas such as industrialisation, agriculture and agro-allied processing and solid minerals. We are determined to diversify this economy through export promotion, our support in promoting local raw materials and pressing needs for made in Nigeria goods,” the Vice President said.

  • Multiple taxation: LCCI urges Fed Govt, Lagos to cooperate

    The President, Lagos State Chambers of Commerce and Industry (LCCI), Chief Nike Akande has urged the State House of Assembly to work in collaboration with the Federal Government to address the issue of multiple taxation and traffic congestion  to aid economic development of the state.

    Speaking when she led other members of LCCI on a courtesy visit to the Speaker, Hon. Mudashiru Obasa at the Assembly complex Alausa, Ikeja, she said:  “Lagos being the home for all, and commercial capital of Nigeria cannot but show the lead by tackling the menace of multiplicity of taxes, challenges associated with certificate of occupancy, tenancy related issues, waste disposal and traffic congestion among others.

    “We believe that this is the time for Lagos State to work with the Federal Government to address the factors that are stifling the investment climate in the state, especially in

    Akande pointed out that the lawmakers should also look into the issue of late invitation to the LCCI for public hearing, adding that “an investment-friendly legislation and oversight is critical for good governance and the progress of the Lagos economy.”

    While congratulating Obasa on his emergence as the Speaker, she noted that there has been a cordial relationship between the executive and legislature, which according to her has been responsible for the stability of democracy in the state.

  • LCCI seeks diversification of economy

    President of the Lagos Chamber of Commerce and Industry (LCCI), Chief Nike Akande, yesterday harped on the need for the economy to be diversified in the face of dwindling oil price.

    Mrs. Akande, who spoke with State House correspondents after a meeting with Vice President Yemi Osinbajo at the Presidential Villa, Abuja, said: “We are quite aware and conscious of the sharp decline in the oil price. The economy should be diversified. We should look at agriculture, industrialisation and solid minerals.

    “These are areas that have not been fully exploited. We discussed this with the Vice President. He even mentioned the issue of rice.”

    She counselled that instead of importing rice from Taiwan, rice could be produced in the country, leading to a lot of investments. She said the government can also derive a lot of revenue from taxation, taking a cue from states which are already benefiting from it.

    “It is not just about increasing the Value Added Tax. We are not asking for that, but generally, most people don’t pay tax. Let people pay tax and we can get revenue from there,”  she said.