The Nation Newspaper

Tag: Mr Muda Yusuf

  • Ekiti woos China, business community for development

    The Ekiti State government has canvassed the partnership of the government and people of China to achieve sustainable development in the key sectors and delivery of its four-point agenda.

    The Deputy Governor, Otunba Bisi Egbeyemi, made the call while addressing the representatives of the Chinese government and business community at the celebration of the Chinese Lunar Year in Lagos.

    The Lunar Year celebration also featured a discussion on China’s Belt and Road Initiative (BRI) and production capacity cooperation between China and Nigeria.

    According to a statement on Tuesday signed by his Special Assistant (Media), Odunayo Ogunmola, Egbeyemi spoke on business and economic opportunities available in Ekiti for potential Chinese investors and business community.

    Egbeyemi listed areas Ekiti would need China’s support to include training and retraining of workers, mechanized and commercial agriculture, healthcare delivery, development of educational institutions and establishment of industries to absorb unemployed youths.

    The forum was attended by Ambassador of China to Nigeria, Mr. Zhou Pingjan; Edo State Governor, Mr. Godwin Obaseki; Director General of Lagos Chamber of Commerce, Industry, Mines and Agriculture, Mr. Muda
    Yusuf, Director General of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Ayoola Olukanmi, among others.

    Read Also: Vote against return of treasury looters, Osinbajo tells Ekiti electorate

    The deputy governor said the state has both human and inherent natural resources for the development and sustenance of capital investment in the State.

    Revealing the intention of the Fayemi administration on mechanized and commercial farming, Egbeyemi, explained that Ekiti State was blessed with vast virgin land and yet to be accessed natural resources that
    could boost the economy of the country if properly harnessed.

    Egbeyemi sought the intervention of the Chinese government in provision of vaccine for immunization and equipment for its hospital to enhance health service accessibility to the people especially those at the
    grassroots.

    This, he said, would reduce infant mortality rate, morbidity and the spread of infectious diseases.

    Egbeyemi who revealed plans to partner Chinese government on development of its educational institutions in the State said such development would help produce self-dependent graduates and reduce
    unemployment in the State.

    The deputy governor charged the Chinese government who he claimed had benefitted from award of contracts from Ekiti State government to allow the people of the State feel its presence by establishing companies and investing in the economy of the State.

    The four-point agenda on which the Fayemi administration anchors its economic revival plan are social investment, knowledge economy, agricultural and rural development and infrastructural development.

    In his address, the Chinese envoy to Nigeria, Ambassador Pingjian revealed that the initiative would focus on industrial promotion, infrastructural connectivity, trade facility, green development, capacity building, health care, people to people exchange and security initiative.

    Pingjian expressed confident and readiness of China to deepen and sustain cooperation with Nigeria in the realization of the joint construction of the Belt and Road initiative.

  • Recession exit, a sign of growth – LCCI

    Recession exit, a sign of growth – LCCI

    Mr Muda Yusuf, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), says the country’s exit from recession is a signal that the country is growing.

    Yusuf said in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos that the development would change the perception of foreign investors on the Nigerian economy.

    The director-general called for policies that would truly align the country for sustainability of the growth.

    The News Agency of Nigeria (NAN) reports that the National Bureau of Statistics (NBS) in its report said that the nation’s Gross Domestic Product (GDP) grew by 0.55 per cent in the second quarter of 2017.

    It said the growth was an indication of country coming out of recession after five consecutive quarters of contraction since first quarter 2016.

    Yusuf however noted that the growth in the GDP could not on its own lead to direct impact on citizens.

    He said that this was due to the impact that still inflation had on goods and services coupled with the fact that salaries had not been increased.

    Yusuf therefore called for policy that would make people to feel the positive impact of the growth beyond the technical growth of moving out of recession.

    “It is very good that we have a situation where we are out of recession. It is one thing to be out of recession and another thing for both the investors and citizens to feel the impact.

    “We need to look beyond getting out of recession and take into consideration other important factors that could impact on the private sector performance and on the welfare on the people.

    “This is because the GDP numbers on its own will not bring about this kind of impact.”

    Yusuf said that the government also needed to address investment environment issues such as power, transportation, cost of funds, foreign exchange management, tax and trade policies.

    Yusuf added that those policies needed to be truly aligned and be reviewed to ensure the sustainability of the recovery the nation was now experiencing.

    He said that there was also an urgent need to address the situation of high cost of goods and services since there had not been increase in incomes to cushion the effect on the citizens.

    “For individuals, we need to look at what will improve the citizens’ welfare because the GDP on its own can not bring about the improvement and may not directly impact on the people.

    “It is important that the government looks at policies that can directly impact on the welfare of citizens, especially on the cost of food, health care, transportation and education.

    “So, beyond the technical exist from recession, we have to look at policies such the foreign exchange policy, interest rate policy, trade policy, investment policy and tax policy.

    “We need to get all these right to ensure we sustain the current exit,” the LCCI boss said.

  • LCCI to CBN: Grant exporters free access to export proceeds

    LCCI to CBN: Grant exporters free access to export proceeds

    The Lagos Chamber of Commerce and Industry (LCCI) has called on the Central Bank of Nigeria (CBN) to review its foreign exchange policy that restricts exporters’ free access to their export proceeds.

    The Director-General, Mr Muda Yusuf, told the News Agency of Nigeria (NAN) on Tuesday in Lagos that the policy was detrimental to non-oil export and did not motivate exporters.

    “The Chamber has received several complaints from exporters about the adverse effects of current foreign exchange policy on export business.

    “The policy hurts exporters as it denies them of the natural advantage of increased profitability which a weak currency offers.

    “Indeed, many Asian economies deliberately devalue their currencies to stimulate their export sectors.

    “A major advantage of weak currency is the incentives it provides to exporters because the currency depreciation makes exports cheaper, boosts demand for exports, creates more business for exporters and improves profitability.

    “It also makes it possible for the export sector to create more jobs, contribute to recovery and growth of the economy.

    “But the foreign exchange policy has denied exporters this very important advantage as they are denied unfettered access to their export proceeds,” he said.

    According to him, the current regulation makes banks custodians of export proceed which they covert to local currency for exporters at official rate.

    “Given the free market premium of about 35 per cent, the policy represents a major disincentive to export business.

    “Yet export sector development is one of the major planks of the economic diversification programme of the present administration,” Yusuf said.

    The director-general said that the policy resulted in a decline in official declaration of export proceeds and led to sharp practices and corruption in export documentation processes.

    “This is a major shortcoming of the current foreign exchange policy of the CBN.

    “It does not augur well for the economy and not consistent with the objectives of the Economic Recovery and Growth Plan (ERGP),” he said.

    “Yusuf urged the CBN and the Economic Management Team to urgently review the policy and not impose conversion rates on exporters.

    “All forms of restrictions to foreign exchange inflows should be removed so that the supply side of the market can be positively impacted and reduce the current pressure on the Forex market.”

    Yusuf said that implementing this would complement recent efforts of CBN to ease the pressure on the foreign exchange market, strengthen the naira exchange rate, bolster foreign reserves and boost investors’ confidence.

     

  • LCCI urges FG to review Import duty on vehicles

    LCCI urges FG to review Import duty on vehicles

    The Lagos Chamber of Commerce and Industry (LCCI) has advised the Federal Government to review import duty on vehicles in order to bring down the cost of transportation in the country.

    The LCCI Director General, Mr Muda Yusuf, made this known to newsmen at Ota, Ogun State on Monday.

    According to him, the current import duty on vehicles was aggravating the cost of transportation in the country.

    Yusuf noted that there is the need for the Federal Government to urgently review the automotive policy in 2017 because of its adverse effects on the economy.

    “The current 70 per cent import duty on new cars is prohibitive and has put the price of new cars beyond the reach of most Nigerians and corporate organisations.

    “Similarly, the present import duty of 35 percent on trucks and buses has also negatively affected the cost of transportation in the economy.

    “This is a period when importers are already grappling with sharp currency depreciation.”

    Yusuf said that if the Federal Government could review downward the import duty on Vehicles, it would enhance people’s standard of living and boost the economy.

  • Dana Air bags LCCI’s award for service excellence in aviation

    Dana Air bags LCCI’s award for service excellence in aviation

    In recognition of its exceptional customer service, innovative online products and ethical business practices in 2016, Dana Air has bagged the award for service excellence in aviation, during Lagos Chamber of Commerce and Industry (LCCI)’s 2016 Commerce and Industry Awards, held recently at Shell Hall, Muson Centre, Onikan Lagos.

    The Commerce and Industry Awards is a yearly award ceremony, organized by the (LCCI), to recognize, celebrate, and promote private and public institutions who have exhibited the core values of best business practices, growth through innovations, and business sustainability.

    According the Director- General of LCCI, Mr. Muda Yusuf, “The Commerce and Industry Awards is a credible platform where winners emerge through a painstaking selection process from hundreds of entries supported by robust research and market intelligence.”

    Commenting further, he said, “We are celebrating corporate organizations and public institutions that have made remarkable contribution to the development Commerce and industry and the economy at large.

    While receiving the award on behalf of the company, the Accountable Manager of Dana Air, Mr Obi Mbanuzuo, thanked the Lagos Chamber of Commerce and Industry for the recognition. He stated that the LCCI is a very credible organization and the award is a challenge to maintain the standards and excellence which Dana Air has come to be known for.

    “We are delighted to have emerged winners in the aviation category. For us at Dana Air, this is a challenge not just to maintain the standards we have come to be known for, but to continue to review our services to meet and surpass the flying aspirations of our teeming guests.”

    Obi, while dedicating the award to the Dana Air team, thanked the airlines’ customers for their loyalty and commitment.  He said, ‘’ our customers deserve the very best in service delivery and we are focused on providing exceptional value for our customers through amazing and rewarding products and services.”

    Dana Air is one of Nigeria’s leading airlines, operating over 27 daily flights to Accra, Abuja, Lagos Port-Harcourt and Uyo. The airline is reputed for its efficient customer services, world- class in-flight services, on-time departures and arrivals, innovative e-airline products and high safety and quality standards.

  • Removal of fuel subsidy in peoples’ interest- LCCI

    Removal of fuel subsidy in peoples’ interest- LCCI

    Mr Muda Yusuf, the Director-General of Lagos Chamber of Commerce and Industry ( LCCI), on Thursday said that deregulation of the petroleum sector was in the peoples’ interest.

    Yusuf told the News Agency of Nigeria (NAN) in Lagos that the subsidy regime was no longer sustainable because it exerted pressure on government’s finances and foreign reserves.

    According to him, for several decades, the subsidy regime had serious transparency issues which inadvertently caused the economy to suffer.

    “With subsidy payments in the excess of one trillion naira threshold, the existence of such regime in a country with huge economic and social infrastructure deficit is simply scandalous.

    “It is in the overall interest of the economy and citizens for it to be discontinued.

    “The deregulation of the petroleum downstream sector will have multiplier effects because it will release resources for investment in critical infrastructures.

    “Fixing infrastructure will greatly improve productivity and efficiency in the economy and impact positively on the welfare of the people,” he said.

    Yusuf said that the deregulation would also boost private investment in the sector, reduce importation of petroleum products and ease the pressure on the foreign exchange market as well as the foreign reserves.

    Yusuf said the negative impact of the deregulation might be inconsequential if the current foreign exchange policy was maintained.

    “Only limited success will be achieved if the current rigidity in the management of the foreign exchange market persists.”

  • High operating cost killing SMEs’, says LCCI

    High operating cost killing SMEs’, says LCCI

    The Director General, Lagos Chambers of Commerce and Industry (LCCI), Mr Muda Yusuf, has said the mortality rate of the manufacturing firms in the country is very high because of  high operating cost.

    He added that the return on their investment is slower, while the turn-around is fewer, unlike somebody who is engaged in buying and selling.

    He said: “The cost of funding is a big issue. For most of them or generally in the economy, cost of funding is well over 20 per cent. And for the real sector operators it is difficult to sustain a business at that level with that kind of corporate funding especially when you realise again that you are facing competition from products that are coming from Asia that are very cheap.

    “So if operating cost is that high and you don’t have control over most of the variables, then, it creates a problem of competition for the manufacturer and that is why the mortality rate of manufacturing firm is very high especially at the medium and the small scale level.”

    He said most of the Small and Medium Enterprises (SMEs) do not have proper recording and structure, adding that this has made it difficult for them to access bank loans.

    He said the SMEs operators need to address many of these issues before they could convince the banks.

    His words: “You know there are two major angles. First, there is what you call the demand side problem. That is the problem from the SMEs themselves because if you are talking of a bank loan it is not something you just walk into a bank and just pick up.

    “You have to convince the bank that you have the capacity to repay; that you have the structure to manage the fund; and that you have a market for your product.

    “All these things matter to the bank but unfortunately many of the SMEs don’t have that kind of records. Some of them would walk to the bank and request for loans and the bank would ask for their books, which they don’t have. All they will say is that okay the business is doing well, there is market for it, but there has to be evidence.”

     

  • ‘Our expectations of power firms’

    ‘Our expectations of power firms’

    Will the 13 power generation and distribution companies meet the yearnings of manufacturers? This is the question real sector operators are asking as the firms prepare for operations.

    Some operators said the new generating and distribution companies must charge reasonable bills, provide efficient metering regime, good distribution networks, and access enough gas for electricty generation.

    They called for improved power supply, increased access to electricity and resolving the lingering labour issues.

    The Director-General, Lagos Chamber of Commerce and Industry Mr Muda Yusuf, said there was the need for improved power supply to lift the precarious state of manufacturing concerns.

    He said the firms needed to provide private-sector driven mechanisms/expertise and improved productivity to meet the expectations of manfacturers, adding that they cannot afford to fail because of the stringent processes that culiminated in their selection.

    The companies are West Power and Gas; NEDC/KPECO; 4Power Consortium; Vigeo Consortium; and Aura Energy; Others are Integrated Energy Distribution and Marketing Company;Sahelian Power; Transcorp/Woodrock Consortium; Amperion; Mainstream Energy Limited;Kainji Power Plc and CMEC/EUAFRIC JV.

    He said individual and corporate consumers had long been expecting an efficient power sector, arguing that power has caused a setback to the economy.

    He said manufacturers’ expectations were high, considering that they had been battling shortage of power for a long time.

    Yusuf said: “We expect the GENCOs and DISCOs to generate and distribute enough electricity, and further bring good expertise on board to grow the sector,” adding that the sector has suffered lethargy and required people that could demonstrate a high level of competence.”

    He noted that the regulators and operators must put in place measures to protect consumers and further grow the sector, stressing that they need to guide against the exploitation of consumers. They must provide effective consumer protection policy to prevent consumers from paying ‘crazy’bills, urging that the Power Holding Company of Nigeria(PHCN) successor firms must ensure speedy resolution of labour issues, as it would help them in providing opitmal services to consumers.

    The LCCI’s boss said the re-integration of former PHCN’s workers and other issues must be resolved to grow the sector. He called for synergy between the companies and the government to solve the problem of gas supply.

    Yusuf said this would prevent problems such as power drops, shedding of loads on transmission plants and power outage that characterised the PHCN regime.

    Former President, Neimeth Pharmaceutical Plc Mr Mazi Ohuabunwa said with the coming of the companies, manufacturers would no longer provide their power generation firms.

    Ohuabunwa said both the Small and Medium Scale Enterprises (SMEs) and bigger firms have experienced low power supply and capacity utilisation, saying the expectation is that the new entrants will turn things around.

    “Owning of power plants should not be the responsibiity of the manufacturers, it is not even advisable for two or more industries to come together and own a plant. The reason is because they are not consuming the same volume of electricity. This is aside the cost and the process of securing a plant. It is a government issue, hence the decision to allow the Bureau of Public Enterprises to handle the privitisation of the power sector. Now that the sector has been privitised, we should expect improved power supply.”

    He said the informal sector operators need stable power to function, arguing that they would grow their businesses, if things go according to plans.

    The Managing Director, KNB Global Services, Mr Kayode Agunbiade said the cost of providing an alternative source of power has eaten deep into his income.

    He added that provision of pre-paid metres would help consumers monitor their consumption and grow their businesses.

  • 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.