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Tag: LCCI

  • Bakare, others tackle corruption

    Prominent Nigerians and opinion leaders, including Pastor Tunde Bakare of Latter Rain Assembly, Lagos, have called for measures to reduce corruption in every facet of the nation’s life, especially the economy.

    They spoke in Lagos at this year’s annual summit of HR Guide, tagged: The Role of the Organised Private Sector in the Quest for a Corrupt-Free Nation.

    A public affairs analyst and consultant Alhaji Mahmood Othman said corruption is a by-product of indiscipline.

    He said: “Once you are a leader, who is infallible, everything will fall into place.”

    The consultant decried the high level of corruption in the private and public organisations, saying it was a clog in the wheel of the nation’s progress.

    Othman, however, said the nation could reduce acts of malfeasance and corruption, even if it could not be eliminated altogether.

    The President of the Lagos Chambers of Commerce and Industry (LCCI), Dr. Goodie Ibru, who was represented by the Director-General of the chamber, Mr. Muda Yusuf, identified corruption as the agent suffocating private sector’s activities and entrepreneurship.

    Ibru said corruption was also perpetuating the dominance of an inefficient public sector and undermining economic diversification and structural transformation.

    A lawyer, Dr. Babatunde Ajibade (SAN), corruption compounded the nation’s problems.

    He noted that “corruption has become a disease” in the country because it appeared to be infectious among the people.

    The lawyer noted that several people envied Nigerians riding flashy cars without caring to know the sources of their wealth.

    Ajibade said: “Why should you envy a man in a convoy?”

     

     

     

    The senior advocate said the Judiciary was the least funded arm of government.

    He said self-examination and cleansing should be the beginning of the solution to the national malaise.

    The guest speaker, Pastor Bakare, who was represented by Idoreyen Enang, noted that until every Nigerian was respected for being a Nigerian and not on the basis of his or her state of origin, corruption would remain intractable.

     

     

    Bakare said: “The private sector should be under check and hotlines connected to anti-graft agencies, such as the Independent Corrupt Practices and Other Related Matters Commission (ICPC) or the Economic and Financial Crimes Commission (EFCC).

    “Until the people inside are given the opportunity to speak to the people outside, corruption can’t be checked. When you lose your voice, you’ve compromised. There should be a reason for joint and personal accountability.

    “Leadership is a reflection of self; you have to mirror it. Let there be a law or hotline through which complaints can be made from an establishment to the regulatory and anti-corruption agencies. This will reduce corrupt tendencies.”

    The Managing Director of HR Derivatives, the organisers of the summit, Mr. Napoleon Omomila, said the second annual summit was dwelling on corruption because it affected the foundation of employment generation, organisational profitability/productivity, national growth and development.

    He said: “I have heard in some quarters that corruption is now fully entrenched in Nigerians; that discussing it is more or less a waste of time. Some have also said that organisations have found ways to incorporate corrupt practices into their system as part of their strategy to ensure survival in this very tough business environment. But I beg to disagree, because there still exist some well-meaning Nigerians and organisations that have not been compromised, that have maintained their integrity and still are making significant progress in their endeavour.

    “In fact, it’s most definitely certain that whatever you acquire through corruption, either as an individual/or organisation cannot endure. So, if we all know that those things we acquire by corrupt means do not endure, then is it not better for all of us to find ways to ensure we leave enduring and lasting legacies in the sands of time through corrupt-free business practices? Most people and organisations find it very easy to point fingers at government. They forget that it takes two to tango; except for a few cases of individual’s direct stealing or theft.”

  • Fairs of economic revival

    Fairs of economic revival

    For years, the Lagos Chamber of Commerce and Industry (LCCI) has held the Lagos International Trade Fair. This year’s, the 27th in the series, with the theme: ‘Harnessing trade potential for an inclusive economy’ has come and gone. What has this fair achieved over the years? Has it helped in stimulating the economy through foreign direct investment (FDI)? Or is it just an avenue for companies to exhibit products? Okwy Iroegbu-Chikezie reviews the fair.

    As usual, crowds thronged the Tafawa Balewa Square (TBS) venue of the 27th Lagos International Trade Fair held between November 1 and 10. They came mainly to buy goods at cheap prices. At trade fairs, it is generally believed that goods are cheaper, compared with their prices at retail shops. So, shoppers flocked to the fair to get things which they had been planning to have for long. But is this the goal of a fair? According to the organisers, the Lagos Trade Fair, like others, was targeted at Nigerian enterprises seeking wider access to internal and international markets as well as investors seeking joint-venture partners and markets for intermediate and capital goods in Nigeria and the Economic Community of West African States (ECOWAS) member-countries.

     

    Objectives of the fair

    The Chairman, Trade Promotion Board of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Babatunde Paul Ruwase , said the fair was to create a platform for economic growth through a deliberate exposure of the nation’s potential to the outside world.

    Other reasons were to revitalise and diversify the economy, especially non-oil exports, accelerate development of commerce and industry and encourage patronage of made-in-Nigeria products.

    Ruwase also said the fair was to encourage agriculture and agro-based industry, the evolution of Nigeria’s trade with the outside world, focus attention on the role of the private sector in the Nigerian economy and to explore the prospects for foreign and local investments in strategic areas.

    LCCI President Mr Goodie Ibru said the theme of the fair, “Harnessing trade potentials for an inclusive economy,” was chosen to underscore the critical importance of trade and the value of inclusiveness in the economic growth process. He said, among other things, it was to stress the fact that the quality of the investment climate and sectoral linkage have a lot to do with economic advancement of the country and the welfare of her citizens.

    Ibru stressed that the trade expo was premised on the need to ensure that there are sufficient linkages in all aspects of the economy. He listed the linkages between the oil and gas sector and the rest of the economy; the financial sector and the small businesses; large enterprises and the small businesses; between our consumption and our production and between our industries and our agricultural sector.

    His words: “There is the need to ensure that our national economic management model is structured to capture maximum value from domestic spending, foreign direct investments and other economic activities and how best can this be achieved if not through a well thought out trade fair that is well structured and inclusive of all stakeholders.”

    He observed that for a developing economy like ours, protection of our industries and firms is good and desirable, but making them domestically and globally competitive is fundamental as it is the surest path to sustainable development. The LCCI chief said the trade fair couldn’t have come at a better time than now when the government endorsed the new Common External Tariff (CET) by the Council of the ECOWAS Heads of State and Government to benefit from the economic integration of the region.

    President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Alhaji Muhammed Abubakar, said the fair would serve as a catalyst to economic development of country. It would increase FDI in information technology, oil and gas and other strategic areas in addition to promoting the value of individual linkages and inclusive growth, he added.

    The NACCIMA boss said trade fairs provide an opportunity for policy makers to appreciate the fact that the private sector needs the appropriate policy to thrive.

    He said: “No economy is an island but every economy needs the appropriate policy to be competitive. The private sector needs to be supported a great deal by government to drive the trade potentials of the country and a well planned and executed trade fair provides the platform.”

     

    Experience from the fair

    Rusawe said the over 500,000 visitors and over 1,000 stands showed that the nation’s economy is viable and attractive to the world.

    Wondering why the economy has not grown beyond the level it is, he concluded that the nation must be doing something wrong, despite its huge resources.

    According to Rusawe, the policy makers must as a matter of urgency investigate why foreigners, especially of the Asian countries stock, come here and succeed in every area of business even with something that needs no skill as pedestrian as in retail trade while our people fail. That those who participated last year came back this year in addition to huge foreign participation shows that trade fairs are a necessity in the economic growth of any nation, he said.

     

    Exhibitor’s remarks

    The Consul-General, Arab Republic of Egypt, Abdel Halim, called for increased trade and investment relations between Nigeria and his country.

    He said Egypt’s doors were open to genuine businessmen from Nigeria, adding that the relationships would provide a platform for discussing challenges that might arise in the enforcement of the Egypt Investment Promotion Act on Retail Trading.

    According to him, the Retail Trading Act is to ensure that foreigners who engage in businesses in Egypt abide by the laws of the country.

    Halim listed investment portfolios in Egypt to include tourism, energy, agriculture and fi nancial services.

    He said the Egyptian Government had provided incentives, including tax rebates, for foreign investors. He said no fewer than 10 Egyptian exhibitors participated at the Lagos Trade Fair to showcase some made-in-Egypt products.

    “All our products are natural; our perfumes on display were without any chemical addition. Some of the natural oils are medicinal and produced under hygienic condition,” he said.

    To him, the fair was an opportunity for the Egyptians to introduce more products into Nigerians.

    Patronage at Ghana, Indonesia and India stands was good in terms of sales and investors while China Pavilion was a beehive of activities with visitors and prospective investors because of mostly the cheapness of their products.

    While some of them said the sales were poor, others said they had got people interested in continuing business relationships with them after the fair.

    One of the exhibitors at Akwa Ibom State stand, Mr Godswealth Henry, managing director, Jekon Integrated Farms Nig. Ltd., producers of RIV Pam Red Palm Oil, said his outing was impressive.

    “Visitors to our stand and patronage in terms of sales and prospective investors are encouraging.

    “I am happy to be at the 2013 Lagos Trade Fair. The idea of the Akwa Ibom Ministry of Commerce bringing us to participate is being achieved.

    “We are into edibles, that is, adding value to farm products so that it meets international standards for export.

    “Our presence at the fair is to get investors in Lagos to be able to evaluate the acceptance of the product when we start exporting them,” he said.

    Another exhibitor from Cameroon Stand and Managing Director, GIC Laboratoire Gefeh, manufacturers of herbal medicine, Mr Ngwei George, said visitors had been enlightened on efficacy of herbal products.

    “Our products are made from tree roots, leaves or seeds and we work with the Ministry of Health, Cameroon.

    “All the products on exhibition are certified by the Cameroon Government laboratories. We have different uses for cocoa seeds.

    “For example, from the cocoa butter made from cocoa seed which is medicine on its own, we produce soaps, hair creams and lotions, among others.

    An exhibitor at Abia State stand, Mr Cosmos Onyeibe, however said the sales were poor and that the stand was too small to accommodate about 17 exhibitors that came with the state government.

    “We are not happy with this year’s Lagos Trade Fair; see, this stand is too small; we are 17 exhibitors and we do not have enough room to exhibit our goods.

    Managing Director, Dusco-Designers International, Mrs Olufunmilayo Ige, a manufacturer of female hand bags, shoe and jewelry from Aso-oke and Ankara fabrics from Osun State said the state government still has a lot to do in areas of making affordable finance available for SMEs. She complained of low sales at the fair and said though she has had visitors visit her stand and appreciate her goods there has been no effective demand.

    Another entrepreneur and Curator of Genesis Arts Gallery Mr Adeyinka Fabayo from Osun State also asked for financial assistance from government to purchase the necessary machines that are capital intensive. He said the fair just like any other is good for exposure and not necessarily cash sales.

    Another entrepreneur Mrs Iyabo Oyebamiji who manufactures local fabrics also complained of low sales.

     

    Advantages of the fair

    ‘’We are excited to see business deals signed and taken to the next level which is a testament that the trade fair is a veritable ground for businesses enterprise and cooperation said Ruwase. Our efforts at putting in place a business to business meeting room at the fair was not in vain seeing the many strategic unions and engagement that came out of it.

    ‘’Many states attended the fair and displayed their products which if harnessed can take the nation to greater heights in her quest for economic prosperity, he added.

    According to him, what some of the state governments need to do is to encourage their SMEs by not only providing funding and soft loan for them, but also an enabling environment in terms of the provision of necessary infrastructure, capacity building and helping with regulatory issues.

    Rusawe said it was at the fair that the Ogun State Government disclosed that it had released N1 billion to the state SMEs to assist them in running their business. He argued that some of those the fund are meant for might not have known about it and would continue to struggle to source for funds for their businesses.

     

    Lessons learnt

    Rusawe said the announcement of President Goodluck Jonathan at the opening ceremony, on the efforts of the government concerning power generation and distribution and the hand-over of the Distribution companies (DISCO) to investors is an eye opener.

    ‘’We are in a vantage position to appreciate the efforts of the government in power generation, especially as far as the investment of the government in that area is concerned. More states have also said that they have created industrial clusters, but, unfortunately, we are not seeing the effect because when the environment is tough the poor feel it the most,” Rusawe said.

    He also noted the observations of some exhibitors and visitors and promised that next year’s event would be bigger and better.

     

    Challenges at the fair

    The most challenging part of the fair is having to construct the boots yearly and they are only useful for a week or at best two weeks. He said the chamber was clamouring for a more permanent arrangement and a purpose built complex that is suitable for trade, expos and exhibitions. Some exhibitors, however, expressed their satisfaction with the venue due to its centrality bearing in mind the poor state of the Lagos /Badagry Expressway. Some exhibitors said their challenge was poor publicity which they said made attendance to their stands poor limiting their visibility and possible sales they would have made.

    On the heels of that, Rusawe asked the Federal Government to expedite action on the transfer of the purpose-built Lagos International Fair Complex at Lagos/Badagry Expressway to the chamber as had been done for Kaduna and Enugu Chambers of Commerce.

    He said: “We are wondering why the purported concession which was adjudged to be faulty has been allowed to stand to this point in time. LCCI is impressed that government has thought it wise to go to court but not excited because the court process may drag forever.”

     

    Government remarks

    President Goodluck Jonathan said the government recognised the place of trade fairs in the economic development of the country. He said that was one reason the Federal Government was taking the legal option to take over the concessioned Lagos International Trade Fair Complex on the Lagos/Badagry Expressway because of the faulty privatisation process.

    He said his administration was poised to increase trade on three levels — international, ECOWAS and internal trade as it has realised its potential for economic growth.

    Jonathan, who was represented by the Minister of Industry, Commerce, Trade and Investment Dr Olusegun Aganga, said the government’s interest in the fair is also based on her belief that SMEs are the engine room of growth for any economy judging from the success story of the Asian Tigers.

    He noted that with 17 million SMEs, employing 32 million people, the government was on its way to economic prosperity.

    Jonathan also announced the tariff differential of 70 per cent that will make it more expensive to import when there is local alternative.

  • LCCI to govt: Honour pact with doctors

    LCCI to govt: Honour pact with doctors

    The Lagos Chamber of Commerce and Industry (LCCI) has called on the Federal Government to honour the agreement it signed with resident doctors and lecturers in the universities, lamenting that the prolonged ASUU strike and the commencement of another round of strike by the Association of Resident Doctors is going to cripple businesses and industrial harmony in Nigeria

    LCCI Director-General, Mr Muda Yusuf, called on the Federal Government to resolve the industrial crisis both sector as businesses in the economy are gravely affected

    “Council under the chairmanship of the President, Mr Goodie Ibru , recently, reviewed the industrial relations issues in the educational sector and the health sector and expressed concern over the prolonged nature of the ASUU strike and the commencement of another round of strike by the Association of Resident Doctors,” Yusuf said.

    While calling on the Federal Government to ensure urgent solutions are found to the crisis, he said the recurrent strikes have very negative implications for the development of human capital which will invariably take its toll on the economy.

    His words: “The Council expressed worries and urged the government to expedite action on the resolution of the labour issues, insisting that the recent handover of the Distribution Companies and Generating Companies to private sector investors may witness an improvement in the power supply.

    “Council therefore implores government to improve its management and communication processes in order to avert the current trend of recurring strike actions. Council appeals to all stakeholders in this issue to embrace the spirit of dialogue and compromise in the interest of the citizens and the Nigerian economy,” he said.

    On the security situation in the country, Yusuf said: “The council is not happy over the recent killings of students in the North Eastern state of Yobe and we note that persistent attacks and threats to security of lives and properties “.

    While appreciating the efforts of the government so far in dealing with the security issues, Yusuf requested that the strategies be consistently reviewed to reflect the dynamics of the situation.

    “We call for a review of current strategies to protect law abiding citizens as the security situation in the country is already undermining investors’ confidence in the Nigerian economy,” he said.

    On the protracted labour issues in the privatisation process, Yusuf said the Council expressed worries and urged the government to expedite action on the resolution of the labour issues, insisting that the recent handover of the Distribution Companies and Generating Companies to private sector investors may witness an improvement in the power supply.

  • MAN, LCCI: fake products are threat to real sector

    MAN, LCCI: fake products are threat to real sector

    ‘There is a need to strengthen Standards Organisation of Nigeria (SON) in its fight against the manufacture and importation of fake and substandard goods. Our government needs to also collaborate with the exporting countries to penalise their own people’

    The Organised Private Sector (OPS) has raised the alarm over the threat of fake and counterfeit products to the real sector.

    The prevalence of such products in the country, the Manufacturers Association of Nigeria (MAN) and Lagos Chamber of Commerce and Industry (LCCI) said, was inimical to the sector’s growth.

    MAN and LCCI were reacting to the report of the Global Congress on Combating Counterfeiting that businesses worldwide lose several billions of dollars yearly to fake and counterfeit products.

    Former Director-General, MAN, Mr Olayinka Akande, said the real sector was under siege as manufacturers were big victims of large-scale product adulteration, faking and counterfeitings.

    Manufacturers, he said, were also faced with the challenge of under-invoicing and evasion of duty payments.

    Akande said unfriendly countries were subsidising fake and counterfeit products that are dumped in Nigeria, thereby killing local initiatives, creating unemployment and increasing poverty level.

    He said: “With numerous natural endowments and export potentials which stand the nation out in the world as investors’destination of choice, the huge export potentials of the nation is far from being fully harnessed for the benefit of sustainable economic development.”

    Counterfeiting, he said, affected the market shares of the different business segments, adding that between 10 and 30 per cent of cosmetics, toiletries and packaged foods; and 20 and 30 per cent of electronic goods and computer peripherals, are involved.

    Between 40 and 50 per cent of engineering and automobile parts and 73 per cent of goods in the domestic market, especially textile and garment sector, are also affected.

    LCCI Director-General Mr Muda Yusuf said fake and counterfeit products in the country suffer from low ethics in the operating environment.

    He said faking and counterfeiting had become the “greatest challenges” for manufacturers.

    He asked for the implementation of a policy that will protect local manufacturers against imported sub-standard products.

    Yusuf called for an institution that will be dedicated to fighting economic crimes against the manufacturing sector rather than leaving things for manufacturers.

    He said:“There is a need to strengthen Standards Organisation of Nigeria (SON) in its fight against the manufacture and importation of fake and substandard goods. Our government needs to also collaborate with the exporting countries to penalise their own people. We also need greater market intelligence in addition to tasking government on the need to support local industries to produce at low cost and competitively too.”

    Yusuf observed that low grade products thrived where consumers were more concerned with buying what they could afford and not necessarily the quality and standard of the item.

    The Commercial Director, Grand Oak Limited, Mr Fatai Odesile, said the challenge businesses, brand owners and regulators around the world were facing today was the counterfeiting of products.

    This growing global menace, he said, presents an enormous public health risk and challenge to premium brand owners, and even compromises the survival strategies of some businesses. Quoting SON sources, he said the nation was losing an average of N52billion yearly to fake and substandard products heightening worries among economic players in the country.

    Odesile said over 46,000 jobs were lost to faking, adulteration, sub-standard and counterfeiting in recent times.

    He tasked the government to curb the menace to save the economy.

    On how his company has fought counterfeiting, he said: “We have taken so many efforts in the past to curb this incidence of faking and these include on-Pack Promotion with free items such as branded souvenirs, products, innovative packaging and the deployment of information technology in product delivery and packaging. ‘’

  • LCCI urges passage of Petroleum Industry Bill

    Operators of business concerns under the aegis of Lagos Chamber of Commerce and Industry (LCCI) have called on the National Assembly to urgently pass a landmark energy bill, saying the legislation holds the key to solving corruption and other forms of fiscal problems in the country, Platts said.

    According to Platts’ report, the Petroleum Industry Bill (PIB), designed to radically overhaul Nigeria’s oil and gas industry, from fiscal terms to restructuring the state oil firm Nigerian National Petroleum Corporation (NNPC), has been stuck in parliament for more than five years because of disputes between the government and foreign oil firms.

    “Enacting a competitive, inward looking Petroleum Sector Act, the PIB, by the Federal Government of Nigeria is germane to curbing corruption and other forms of fiscal leakages in the oil and gas industry,” the Lagos Chamber of Commerce and Industry, an umbrella group for Nigerian businesses, said in a statement,” Platts reported.

    “While we note that the passage and implementation of the PIB will not entirely eliminate the problem, it would expand investment, curbing corruption and other forms of fiscal leakages, further stabilizing the economy,” it added.

    The chamber expressed concerns over the dwindling fortunes of Nigeria’s oil sector due to “structural gaps in its regulatory, fiscal and business practices which have supported high [levels of] inefficiencies.”

    The chamber, one of Nigeria’s most influential economic pressure groups, has membership drawn from all sectors of the economy, including foreign oil companies operating in Nigeria, such as Shell and ExxonMobil.

    Lawmakers held a public debate on the PIB in July, which threw up sharp disagreements among legislators in two key areas, namely a special fund for communities hosting oil fields and facilities, and extra powers granted to the oil minister.

    Oil executives have said the continued delay in the passage of the bill has brought uncertainty to businesses and has held up billions of dollars of investments in exploration and production.

    Meanwhile, UK-based country risk monitor Business Monitor International has projected that the PIB could be passed by the first quarter 2014. “Adoption of the Petroleum Industry Bill, which we expect around Q4 13-Q1 14, would be a strong signal for investors that Nigeria’s hydrocarbon sector is ready to move forward,” BMI said in its latest report on the Nigerian oil industry.

     

     

  • Reviving reading culture

    After 16 years of publishing Melodies of a Dashed Dream, Florence Abenemi has launched her second book, A Bouquet of Regrets, at the Lagos Chamber of Commerce (LCCI), Alausa, Ikeja, Lagos, report Olushola Orebajo and Salami Rofiat

     

    The gathering at the Lagos Chamber of Commerce (LCCI), Alausa, Lagos during the launch of a book, entitled Bouquet of Regrets by Florence Abenemi, attracted many authors and academia. Columnist at the Daily Independent newspapers and Media Consultant to the Bells University, Otta, Ogun State, Mr Oyose Baje said reading culture among Nigerians is declining and must be revived.

    Oyose described Abenemi’s book as a true life story, saying A Bouquet of Regrets is a must read for all and a fantastic book produced from creative thinking. He said the book tells about the freedom individuals have in higher institutions, which makes them commit heinous crimes. According to him, the social media has its advantages and disadvantages, but it is a major factor responsible for the decline in reading culture among Nigerians. “All we have now is materialism; there are different web sites that attract most people nowadays. Everybody wants to get rich quick,” he added.

    He advised Nigerians to encourage reading among the younger generations. “I was happy when President Goodluck Jonathan initiated Bring Back The Book. This was done to emphasise the need for reading books. The younger ones should be brought up with the desire to read because reading brings knowledge from various places, and when there is knowledge, there is a brighter future,” he said.

    Continuing, he added: “The quality of teaching should be improved in various schools. Books may be produced as films to enable better understanding and encourage reading among Nigerians as this will help save the declining rate of reading.” There should be the desire for knowledge, because Knowledge is power”.

    Former broadcaster at the Nigerian Television Authority (NTA) and owner of Reading For Development Initiative, a non-governmental organisation (NGO) described the book as one of a kind, and urged parents to guide their children towards reading culture. “Reading should be an enjoyable interaction between parents and children. It is a time for parents to sharpen their kid’s communication and writing skills,” she added.

    The book was reviewed by Folu Agoi, an award winning author and a lecturer at the Lagos State University (LASU), Anthony campus. “To cut a long story short, considering its style reflected in its title, theme, plot, characterisation, setting and point of view, Florence Abenemi’s A Bouquet of Regrets is indeed, a great novel – a psychoanalytical work of narrative fiction crafted to aid our understanding of ourselves, our neighbours and our society.

    “The text A Bouquet of Regrets is a robust work of prose manifesting visible ingredients of drama and prose. Its aesthetic value reflects the linguistic fluidity and stylistic simplicity, which are all the trademark of a good writer,” he said.

    Folu added that ‘apart from the poetic title of the novel, other notable ingredients that account for the strength and beauty of the 128-page work include flashback, foreshadowing and suspense. Besides the work’s linguistic and onomastic features, it portrays campus life in the late 20th-century in Nigeria.” He, however, noted that writing should serve as a social purpose and not just for writing sake.

  • LCCI frets over global oil market

    LCCI frets over global oil market

    President, Lagos Chamber of Commerce and Industry (LCCI), Mr. Goodie Ibru, has raised the alarm over the sharp decline in the contribution of the oil and gas sector to the nation’s Gross Domestic Product (GDP), which fell from 26 per cent in 2003 to 13.42 per cent in 2012.

    He frowned at what he called extreme dependence of the government finances and external trade balances on proceeds from the sector, which he said exposes the nation to significant risks arising from price, production and supply shocks.

    Ibru, who made these disclosures in Lagos over the weekend while reviewing the performance outlook of the second quarter of the economy, expressed worries over new oil and gas fields in East and West Africa including Ghana, Liberia, Sierra Leon, Kenya, Uganda and Tanzania.

    He also said that the replacement of Nigeria oil in the United States of America (USA) with Shale gas. Quoting the US Energy Information Agency (EIA), he stated that oil imports by US will decline to six million barrels per day (mbpd), roughly a third of what it uses as the country moves closer to less oil independence as shale gas production accounts for 46 per cent of US natural gas production.

  • Investors prefer Southwest, says LCCI

    Which part of the country is most suitable for doing business? It is the Southwest, says the Lagos Chamber of Commerce and Industry (LCCI), quoting investors’ and entrepreneurs’ preference.

    In a statement, tagged: ‘The Nigerian Business Confidence Index (BCI),” LCCI said: “The confidence level of businesses located in the Southwest inched to a new high of 44 per cent from 38per cent and 30 per cent in Q2 and Q1.

    “This is followed by companies operating in the Southeast and Southsouth, with BCI score of 31 per cent and 21 per cent respectively.”

    The report said the confidence level of businesses in the Northcentral, which dropped to zero in Q2 improved dramatically with BCI score of 11 per cent. “Northeast and Northwest continue to trail between the negative and neutral confidence trajectories. We look to see how far the on-going security operation in some Northern states will impact business confidence in our Q4-2013 BCI survey,” it stated.

    LCCI said the third quarter 2013 aggregate BCI sustained a positive improvement of 24 per cent from the 16.5 per cent and 10.5per cent it achieved in Q2 and Q1. This represents 13.5 per cent point movement of the index along a positive trajectory since the beginning of this year.

    The steady and significant improvement of the BCI, according to the repor, suggests that business leaders are gearing towards expanding their investments and plant size in the months to come.

    He said apart from the recurrent factors such as poor access to credit, security situation and the dwindling public power supply, the index posted impressive confidence across most business and economic indicators.

    He also said that budget implementation and Federal Government’s security intervention in some parts of the North, impressive corporate results and the modest trends of exchange and inflation rate tend to have supported the record rise of business confidence in that section of country. The Director General of Lagos Chamber of Commerce, Muda Yusuf said for the first time, the financial sector recorded the highest confidence of 35 per cent closely followed by Hotel & Restaurant and Telecoms & Postal sectors 29per cent and 27 per cent confidence levels respectively.

    He also said for the first time the agricultural sector was impressive at 18 per cent but the manufacturing sector remains disappointing at 5 per cent business confidence level. According to him, this implies that expansion and new investment in the Nigerian manufacturing sector remains largely held down by the lingering challenges confronting business environment in the country.

    In their conclusion they said the 3rd quarter 2013 aggregate Business Confidence Index (BCI) sustained a significant positive improvement supported by the take-off of budget implementation across the country. He listed other positive improvements to include on-going security intervention in some parts of the North, impressive corporate results in most sectors and stable macroeconomic prices – exchange and inflation rate.

    He said the improvement suggests that business leaders are likely going to expand their investments in the months. He however, noted that some investors are still wary about the state of the economy in the medium term because the lingering limiting factors are yet to be addressed.

    BCI is a leading economic indicator designed to measure the degree of optimism on the state of the economy that business leaders are expressing through their activities of investing and spending. Decreasing business confidence is often a pointer to slowing economic activities because business owners are likely to decrease their investment. The more confident entrepreneurs and managers feel about the business environment, the more likely they are to make new investments, create job and impact the economy.

    The 3rd quarter 2013 BCI survey covered 15 sectors and 582 (top business executives) respondents over the period, 15th May to June 18th 2013.

  • Industrialists condemn adelays

    TThe delays at the Apapa Lagos port in Lagos since the takeover of scanning by Global Scan Systems Limited (GSSL) are affecting members of the Lagos Chamber of Commerce and Industry (LCCI), the group has said.

    LCCI said its members now pay huge amounts as demurrage with the attendant implications on the cost of borrowed funds, production schedules and inability to meet contractual timelimes, among others.

    Its Director-General, Mr Muda Yusuf, told reporters in Lagos that the chamber was worried over the complaints of its members about the challenges the destination inspectors at the port pose to their businesses.

    “Our members are complaining of the very serious congestion that has resulted from the change in the inspection agents at the port. Clearly, the new company that has taken over does not have the capacity that the previous company has, that is now comparing Cotecna with Global Scan, and this is taking quite a very serious toll on businesses. People are complaining about demurrage which they have to pay and this has implications for cost.

    “They are complaining about speed of delivery to factories – raw materials and things that have been stuck in the port. They are complaining also about the cost of fund because most of these cargos are brought in through borrowed funds and the longer they stay at the port the more interest you have to pay to the bank. So, from all angles it is really a very unfortunate situation,” Yusuf said.

    Yusuf expressed disappointment in the Minister of Finance for favoring the move for Global Scan to take over from Cotecna Destination Inspection Limited despite the resulting odds against port reforms.

    “It came to us as a surprise that Finance Minister who we see as a champion of the reform of the port has issued the directive that Global Scan should take over from Cotecna.

    “We don’t have anything against any organization but for a strategic port such as the Apapa Port what should be paramount is the capacity to deliver in the choice of any agent that take the role of inspection agents or even any role for that matter in that port.

    The port is too strategic for any government or any person to be using as a platform for patronage because the implication for the economy is quite enormous,” he said.

    But speaking with The Nation, the image maker of ClobalScansystems, Mr Adile Iroajugh said the company is doing its best to facilitate trade at the port.

    He said the scanner they are working with was handed over to them by Cotecna and that they have scanned over 2,200 containers since the site was handed over to them few weeks ago.

    He said, his company is also working on the scanner to make it more effective and boost cargo clearance at the port.

     

  • LCCI advises govt on budget conception, implementation

    Director-General, Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, has advised the Federal Government to take budget conception, preparation and implementation more seriously.

    He said conception, preparation and implementation of a budget were three major determinants of its success.

    Yusuf, who said these in Lagos, noted that the Federal Government should be more critical at these three major stages in budget preparation.

    He said shortcomings in budget implementation in Nigeria could be attributed to the level of seriousness of planners at the three stages.

    Yusuf said the three critical areas of conception, preparation and implementation of any budget determined its value delivery to Nigerians.

    “We need to be critical at those three critical budget making stages,“ he said.

    Yusuf advised that there should be capacity building in the public sector for budget planners to improve on budget planning and implementation.

    “Our public servants can be better at implementing budgets through training and learning more about private sector strategies.

    “The public-private partnership initiative can come handy here,“ Yusuf said.

    The LCCI boss also said corruption was also affecting successful implementation of public sector budgets.

    “Even where projects have been well articulated and approved, corruption often frustrates the delivery of value to Nigerians.

    “There is so much talk about fighting corruption, yet there is little action and unless we address this malaise, there will be no concrete outcome from our annual budgets.

    “The issue of value-for- money needs to be tackled more seriously.

    “The crusade against corruption should go beyond the level of rhetoric,” he said.