Tag: Nigeria

The trade balance between Nigeria and Indonesia has risen from $2.6 billion in 2021 to $4.6 billion in 2022.

President, Nigeria Indonesian Chamber of Commerce and Industry (NICCI), Ishmael Balogun, made this known at a news conference in Lagos to herald the Nigerian Indonesian Investment and Trade Forum (NIITF) 2023.

The NIITF was aimed at showcasing the best of Nigeria’s non-oil produce, drive Foreign Direct Investments (FDI) and increase trade balance between Nigeria and Indonesia.

This year’s edition of the forum comes up this month in Jakarta, Indonesia, after its inaugural edition in 2022.

Balogun said at last year’s edition, notable participants from both the public and private sectors were present, signing Memorandum of Understanding (MoUs) and promoting bilateral trade and investment between Nigeria and Indonesia.

“We can authoritatively report back that the investments definitely paid off. In 2021, our trade balance between Nigeria and Indonesia was $2.6 billion. That figure has grown significantly to $4.6 billion in 2022 and we are just scratching the surface,” Balogun said. 

The NICCI president noted that the potential for both countries to do more existed and this was why this year’s NIITF was themed “Rediscovering Business Potential in Nigeria.”

“We have a very robust line up of participants both from the public and private sectors from Nigeria and Indonesia. Areas of focus include but not limited to manufacturing, renewable energy, power generation, infrastructure development, health, agriculture, transportation, mining, digital economy and much more,” Balogun said.

He also stated that during the event, there will be a panel session, with the topic “Decongesting Bilateral Bottlenecks and Creating Opportunities.”

“This will be followed by a Government to Government (G2G), Government to Business (G2B) and Business to Business (B2B) round table discussions to further foster sustainable collaborations and fruitful partnerships.

“Several MoUs will be signed by participants from Nigeria’s public and private sector and both nations can continue to grow in leaps and bounds,” Balogun said.

He added: “We seek to provide sustainable solutions to the different challenges that have prevented the ease of doing business between the two countries.”

Meanwhile, the Enugu State Government is the headline sponsor for this year’s NIITF event, and Governor Peter Mbah will be delivering the keynote address.

Secretary to the State Government (SSG), Prof. Chidiebere Onyia said the State Government will be collaborating with the Indonesian Government to foster mutual prosperity, capital flows and diversification of Indonesian industries into the state.

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According to him, the state’s collaboration with the Indonesian Government would also help explore the myriad of investment opportunities in Enugu State across key sectors such as energy, power and transport.

Prof. Onyia noted that the state’s abundant mineral resources, fertile lands with rich plantations supporting production of the best cashew, sorghum, rice, cassava, and other agricultural species placed the state as a vantage investment destination.

He also said the state’s breath-taking natural landscapes presented viable investment opportunities in eco-tourism, while its predominantly youthful population provided a wealth of human capital.

“Enugu is blessed with untapped natural gas reserves and our vast natural gas reserves have imposed a responsibility on the state to drive the Nigerian green economy transition.

“I am happy to announce that Enugu is one of the first states to attract investment in CNG-powered buses and the state has the potential to be a leader in the clean industries of tomorrow.

“Enugu State is a vital trade and investment gateway into the southeast region as it boasts a multi-modal transport infrastructure to support trade activities between the South-Eastern region, Northern Nigeria, as well as the rest of Africa,” the SSG stated.

He further said the state’s economic transformation plan underscored a three-pronged strategy of boosting sector productivity, reforming key state institutions, and creating cross-cutting social sector programmes and services.

He revealed that the state’s vision under the Governor Peter Mbah-led administration was to make Enugu one of the top three revenue-generating states and to attain a zero per cent poverty headcount rate.

The SSG added that the administration was committed to ensuring peace and security to grow the state’s economy exponentially from a $4.4 billion Gross Domestic Product (GDP) to a $30 billion GDP economy in the next eight years.

“Our mission is to make Enugu the preferred destination for investment, business, tourism and living in Nigeria.

“Enugu State will become Nigeria’s most remarkable success story, driven by industrialisation and structural economic transformation, responsible public financial management, robust growth in trade and investment, and sustainable and inclusive infrastructural development,” he said.

Also speaking, the Enugu State Commissioner of Trade, Investment and Industry, Adaora Chukwu, said the state’s partnership with the Indonesian Government was based on Governor Mbah’s initiative to raise the state’s GDP from $4.4 billion to $30 billion.

She said part of the ways to achieve the mandate was through strategic partnerships and collaboration with various international and local investors to harness the various investment opportunities in the state.

Chukwu said the investment forum would help to open up newer opportunities for investors, business, trade, and export arrangement between both countries’ economies.

“Efforts have been made to strengthen regulatory and legal framework to ensure the elimination of bottle necks to allow investors to come in.

“Nigeria, hopefully, will gain and attract investment, industries and capital in the partnership and for the Indonesian Government, it will be a mutual prosperity effort, with Enugu State giving expertise in some areas,” she said.

The Director, Indonesia Trade Promotion Center, Lagos, Mr. Hendro Jonathan Manurund, said more than any other country in Africa, Nigeria remained the investment destination of choice for most Indonesian investors and companies.

He gave the Center’s commitment to facilitating and fast-tracking visa processing for Nigerians wishing to attend the Forum in Jakarta or do business in the country.

Jonathan said the Center will offer special visa processing services with minimum fee to Nigerians without the hassle of visiting the embassy in Abuja or the Center’s office.

Founder and Chief Executive Officer, Modern Ekeleda Group, Mr. Segun Abayomi, is a world-renowned technocrat, economist, finance and audit expert. A fellow of Chartered Institute of Management Accountants, United Kingdom, Abayomi was Chief Audit Executive and Executive Director at GWC Qatar. In retirement, he made the bold decision to return and set up his business in Nigeria. In this interview with Deputy Group Business Editor, Taofik Salako, Abayomi speaks on his motivations, experiences, Nigerian manufacturing industry and macroeconomic environment among others   

What are your motivations for setting up your company and what made you to decide to set up here in Nigeria?

After spending years outside the country, I faced the question of the choice of either going to Europe, America or coming back home and my consideration was based on where I could provide the highest value and satisfaction for my life. So, I thought that the best way to give me satisfaction is to come back home; coming home would be the best way I can provide the highest value to people and serve the country. I considered that going to Europe won’t give me the best of satisfaction because it won’t be able to boost the funds that I have to the highest value. Coming back home would allow me put the little money I have and the experience to use. In coming home, I analysed what I would be able to do with myself when I come back home. I also analysed that if I decided to remain in Dubai or going to Europe or America, my activities and the way I’ll use my life will be very limited, but in Nigeria, I’ll be more useful. So, that’s what made the decision easier for me to choose to come back home.

What has been the experience so far?

The experience has been interesting. The satisfaction, the reality and the knowledge that you are able to serve people and make impact on people around you, impact the economy and in all these, you will know that you are doing the right thing and feel it also. I feel more satisfied. For several years, I served as Chief Audit Executive and Executive Director of a publicly quoted company. During this time, I had the best health facility around the world, the best finance, I could go around the world, I could go to Germany, Austria and use the best of money to get the best health attendance but I never got the best of my health. My blood pressure used to be in the highest levels but since I returned home, I feel much better. It returned naturally better. I feel more satisfied coming back and I feel I’m achieving better serving the country this way.

In setting up your company, what were the challenges you met in the environment as a new entrepreneur in the market?

In setting up the company afresh, one of the challenges one faced was understanding the costing, how to identify the things you need and where to get them. When I came in newly, I needed to find the right person to relate with, that was a challenge for me. I had problems relating with the right people because everybody was just out to take something from me. The second issue faced was how to identify the location; where to start the business. I also had to pick up employees. I had to interview employees too. You need to find the right person to also join in picking up employees, you need to work with who has the right expertise, if not; that could be a huge problem if you don’t pick the right people. My case was a combination of hardwork, carefulness and luck. I was able to do everything right at the same time. I picked everything correctly by God’s Grace. The human capital support was the last problem faced. If you don’t get the human capital support needed that could be a huge problem. You have to be able to get the sourcing of raw materials, if not, that’s another problem. The set up was another huge problem for me because I had problem trying to get my electricity installation. It took me almost three to four months. At last, I was able to get it done through some processes. One needs to put that into consideration. Getting the right people to surround you is just important.

Coming from Diaspora, what would be your message to other professionals who, like you, have gathered global experience and exposure and they are at a stage in life where they need to find somewhere to retire to?

My advice to my colleagues that are outside is that it’s very advantageous to come back home and invest. In Nigeria, margins can be made more than in America and other countries. Margins, in terms of profit. Secondly, this is your country, you will achieve more satisfaction working in it.No matter the difficulty, there is still satisfaction, it’s still your country and no matter the difficulty you face, there is still satisfaction. Not everything is a free ride but the result is worth the challenge. I don’t consider gaining knowledge from another land and using what I’ve learnt to develop a foreign land as the best thing to do, that’s why I made my choice to come home. I advise Nigerians to follow my example because so far I’ve not regretted it. I’ve been grateful to God for my decision.

What can government do to encourage people to come home?

What I think government should do is working more with the Diaspora networks because they are doing something already. There is the Nigerians in Diaspora Commission (NIDCOM), there is Nigerian Investment Promotion Commission (NIPC). They need to work together more in encouraging Nigerians on the need to come back home and invest and the supports they will get. They should make it clear that they should bring any little money they have home to invest and bring their experience home. What I noticed is that once you leave Nigeria for up to 10 years, you don’t know much again. So you need help from relatives, agencies and friends to be able to come back home. One reason people don’t come back home is that the little they have may not always be enough to invest without proper guidance. NIPC and NIDCOM can guide people on partnership and financing supports to help them get the investment drive, because there are people with great expertise, good ideas and experience that can come home. They already have some funding but they may need to have extra funding and financing.

Given your history and experience, do you have or plan to have a mentorship programme for other Nigerians outside?

I’m trying to form a subsidiary that would help Nigerians that may want to come home and also those who may not want to come in now but want to invest their funds. We would form a subsidiary outside that would help groom these Nigerians and help bring them back home. A subsidiary company that would partner with people to help use their funds in preparation to return home. We have the knowledge, skills, experience and the track records to be able to deliver on this. This is part of extending my success story to other Nigerians, part of my patriotic duties to help and support fellow Nigerians.

You often hear of people setting up their businesses and they are no more after a year or so, what are the pitfalls to look out for?

If you are going into manufacturing, it is capital intensive, so you must think of that. Secondly, you need to have an idea of the business you want to go into. Thirdly, you must be able to have a good management of funds. Be able to manage cash flow also. There’s one thing to manage the profitability of a business and there’s another, to manage the cash flow of the business, so you must run the two concurrently. My advice is that one must focus on the profitability of the business and one must ensure the liquidity of the business. Those are the two basic areas of focus. When looking at reasons businesses failed, there’s always huge failure in their cash flow process.

What of people talking about roads and power?

Everything is about profitability. For example, if a product is acceptable in the market and it’s widely marketed and the demand is high, even if the road is not good, people would still pay for it. As you are meeting demand or selling, then you will be fine. Once you are fine, make sure the cash flow to keep running is there.

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What are the things you think government can do to stimulate the potential of the Nigerian economy.

My advice to government is that they should look at the entrepreneurs and do marginal financing for these industries. If they can do this, it would help a lot of manufacturing companies to improve their capacities. Marginal financing would go a long way in helping a lot of businesses to increase their capacities and help increase employment, production, export, sales and product availability, among others. Finance houses are unwilling to provide money in an easy way for companies but they might find it easy to do marginal financing. With marginal financing, these companies can pay back their loans within two years. The government can create policies that could encourage finance houses to provide this kind of loan. This is a major way government can help businesses.

The other way I see they can help is by sorting out the issue of border closure. The closure of the border, especially in the southwest, is affecting businesses that are willing and able to export. It’s affecting these companies. The government wants everyone to approach them for permission to export which is not going to work in a free economy like that. They need to come up with steps to take when you want to take anything across the border, and without unnecessary encumbrances. If the process is too cumbersome, customers would disregard us and go elsewhere. We need to have a clear and known export guideline across the border, and all the agencies must respect this. 

For instance, in the case of our company, we are having problems for now exporting because we can’t export across the border. There are demands from Benin Republic and Togo, they are asking for our products, but in this our industry, there is a requirement for speedy delivery. So, when customers request, it mostly comes with speedy delivery order, but we aren’t able to meet up so they shift to someone else who can deliver. This border closure is affecting us. Government should help facilitate cross border trading. It would help the country, we can produce cheaper and serve the economy well and this is beneficial to the country and we can increase our productivity to serve the other markets. Government can also support us to increase our capacity and ability to export to these markets.

What has been your experience in getting competent hands to run your business since these machines have to be operated by experts?

We bring people from outside to train our people. We don’t want to allow foreigners to run our system, they just come to train, we pay them and they go. Also, they can do online training. There’s maintenance support for our machinery already. Yesterday we had an issue with an equipment and we had technical online support to fix it. Nigerians are to a large degree competent and are fast learners.

What is your impact on the community?

We have extensive corporate social responsibility (CSR) within our community and with our stakeholders. We provide a lot of support to the indigents, to public institutions, community welfare, religious organisations and public facilities. We support the law enforcement agents, community leadership, community health and sanitation through cleaning and removal of wastes and many other things. We are a very responsible member of the community where we operate and I’m happy that’s another way of giving back to the society.

Now as a growing company, what are the pressing challenges?

From what we are experiencing now, one of the issues is in the area of financing. We need financing support, we are not having easy access to financing. The other issue is access to raw materials because some of our raw materials are both local and imported contents; and the imported contents are sometimes not easy to access. We are anticipating hopefully that when Dangote Refinery and other refineries get opened in 12 to 24 months, may be that could be resolved. But for now, we are having this challenge.

We need supports of development finance institutions like Bank of Industry (BoI), Development Bank of Nigeria (DBN) and others. That’s the most important support needed now. So far, we have not been able to access loans from BoI, it’s a support we need, we’ve tried several times and we have not been successful, but we’ll keep trying hopefully we will get something.

What are Modern Ekeleda’s expansion plans? Where do you see yourself in five or 10 years of operation?

One reason why we established this company is to employ people and I’m conscious of what we can do to support the country. The most important reason is to ensure Nigerians under no circumstances import these products we can produce. We want to be in a situation where Nigeria would be exporting these products. We are producing just a few segments for now but I have plans that in the next 12 months, we should be able to triple our production capacity. This way it would be everything added for the government, community, myself and it’s going to be a win-win for everybody; that’s what we are working towards.

You were on the board of a publicly quoted company abroad, do you also have the dream of taking your company public?

We have a projected trajectory of growth, that after some years we hope to reach a place where we will be big enough to consider going public. But that’s a decision to be considered after six years. The rate at which we are going, we need a lot of investment and financing which we are not getting at the moment. We need to work on that and if we can reach our target, the market is there for us.

What are the competitive advantages driving your market penetration?

The Nigerian market is very dynamic. What we met in the Nigerian market is already competitive. We try to bring a higher quality in terms of quality, our buckets are thicker and more durable. We have two segments of products; 100 per cent virgin requirement and ones with recycled requirement. All are produced to the best quality. Then, customer relations. The relationship between ourselves and customers is much greater. We treat our customers well by making sure that they are comfortable with us. We give our customers more options and find possible solutions to their issues faster. The comments we are getting from our customers are that they are better treated, they get a better treatment from us compared to what they get from other companies. We relate to them directly, sometimes with our top management. Most of the times, we work 24 hours in solving their problems. We make sure the orders are delivered to time and schedule, unlike where customers deposit money and their orders are not delivered to time. We make sure we try to deliver their goods between 24 and 48 hours. We ensure that when there is a complaint, we handle the complaint expeditiously.