The Nation Newspaper

Tag: opportunities

  • ‘Recession offers investment opportunities in capital market’

    ‘Recession offers investment opportunities in capital market’

    Mrs. Titi Ogungbesan, Managing Director/Chief Executive, Stanbic IBTC Stockbrokers Limited in this interview with Ibrahim Apekhade Yusuf speaks on the huge investment potential in the capital market despite the lingering economic recession among other issues. Excerpts:

    Do you think the lingering economic recession offers any fresh opportunities for investments in the capital market?

    There is no doubt that the downward trend in the equities market presents buying opportunities, in my view, as many of the listed stocks are believed to be under-priced compared with their intrinsic value. We at Stanbic IBTC believe it is the right time for investors to take position in the market, especially in quality names with attractive valuation supported by compelling outlook.

    We believe Nigeria’s current economic situation is just a ‘slowdown’ as the country passes through this transition phase to what we potentially call a reinvigorated growth phase. We believe ongoing economic reforms if properly managed will be the much needed catalyst to unlocking the country’s vast potential. We favour development of domestic manufacturing capacity as a sustainable fulcrum for Nigeria’s growth. There is an urgent need to develop other key manufacturing sectors of the economy to an export potential so as to be less dependent on oil for FX and deliver inclusive growth. While we acknowledge that the weak macro could keep valuations depressed for a prolonged period, it is difficult to time when the market will turnaround hence in the near term, we will advise investors to take positions in quality names as the opportunity arises.

    One of the issues that have remained hotly debated is the issue of diversification. What form should this take?

    More products are being developed by market operators and participants to further deepen the Nigerian capital market. Over the past few years, a few products such as ETFs have been introduced and constant engagements are going on to build a suite of exchange tradable products. We believe having a range of products will also attract new investible funds. Additionally, the sector split of the NSE is skewed to financials and manufacturing sector and not a true reflection of the Nigerian economy. The listing of more companies in sectors such as ICT, agriculture, power and oil and gas should increase diversification.

    The Debt Management Office a few years ago appointed Stanbic IBTC Stockbrokers Ltd as the stockbroker to FGN Bonds. What has been the response of the market thus far?

    Market response has been positive and retail investors’ participation has improved over time. We expect further future improvement in the level of participation. Stanbic IBTC Stockbrokers Limited in its role as Stockbroker to FGN bonds has organised seminars/workshop in partnership with the DMO and the NSE aimed at creating more awareness amongst investors on the opportunities in the fixed income market. There has been renewed passion for retail bond trading and we expect this to translate into more transactions on the floor of the NSE.

    In a related development, the appointment of Stanbic IBTC Stockbrokers Limited by the Nigerian Stock Exchange as one of a 10-member list of market makers further reinforces company’s ability to deliver on its mandates. To what extent has this assignment helped in stabilising the capital market?

    Our role as a market maker is to correct price imbalances whenever the need arises as well as provide liquidity in stocks which will ultimately help the capital market. We also think that the introduction of Securities Lending product will aid Market Makers in performing their role effectively.

    Last year’s conference as well as previous editions of the conference focused on sustainable economic growth and development. This year’s conference would be the 8th edition, would you say that your objectives for organizing the annual conference are being met?

    Absolutely! Foreign inflows whether as FDIs or FPIs are critical sources of capital that ignites growth in any country. However, these flows would not be available if investor confidence in the country is lacking and that has always been one of our goals for the conference every year; to expose foreign and domestic investors to the numerous opportunities that abound in the country. Although the prevailing macro-economic situation in Nigeria has affected investors’ confidence in the market, we will continue to show opportunities that make Nigeria a critical economy in the frontier market. We have been doing that over the years and we will continue to do so. Therefore we are proud to affirm that the objectives of the conference are being met.

    The Nigerian environment is generally regarded as difficult for doing business due to challenges such as poor electricity supply, non-existent or collapsed infrastructure, insecurity, among others. These factors undoubtedly impede the competiveness of the Nigerian economy. What compelling argument will you offer to make anybody invest in Nigeria’s economy?

    Nigeria being the biggest economy in Africa GDP terms offers a compelling reason for investors to consider investing in the market and the economy as a whole. With the new government in place we expect to see some positive changes though it might be gradual and we expect long term funds to look at the potential returns on a risk-reward basis which we believe will justify investing in Nigeria. Currently, there are investment opportunities in infrastructure, agriculture, manufacturing and real estate.

    Given the current situation, what specific areas of the economy will you be advising investors to tap into?

    We think asset classes exposed to Nigeria’s infrastructure and agriculture sectors offers good investment potential. Nigeria’s high infrastructural deficit and the underutilised capacity in agriculture is a supportive catalyst that could underpin growth in the medium term. We believe that with the 28% of the N7.29 trillion 2017 budget that is billed for capital projects which infrastructure forms a major part of, the state of infrastructure should start improving moderately. Nevertheless, we acknowledge the poor level of execution of capital budgets in the past and the low capacity to execute. That is the reason why the engagement of the government with the private sector is welcome and encouraging and could result in a faster pace of closing the infrastructural gap. The development of infrastructure such as electricity, railway transport and more road networks should unlock opportunities in sectors such as agriculture and manufacturing. Given our population, the country is a ready market for a number of the finished goods so the export market should not be an immediate concern.

    The listing of major companies, particularly in the oil and gas, power and telecoms sectors, on the Nigerian Stock Exchange has remained a matter of intractable debate, with both sides offering strong arguments that appear to have stalemated the issue. What role can market operators like you play to break the deadlock and possibly encourage the targeted companies to quote on the local bourse? 

    The market can support the government’s financing efforts by raising capital for infrastructural projects through primary issues and public offerings. The major point here is capital whether for expansion or for diversification or even taking on new projects- that is what the Stock market provides. Companies that have a good business model and a good track record of profitability over the years, investors will want to be part of such businesses. The challenge we now have to take on as market operators is identifying those companies, engage them and intimate them of how the Nigerian stock market can both create more liquidity and value for their business. I must mention that although the operating environment is quite challenging at the moment for most businesses in those sectors. There has to be a really compelling story for the companies wishing to list on the exchange to get their desired level of liquidity.

    The capital market is expected to play a major role in helping government finance a huge budget deficit this year. Considering the general apathy in the market, particularly by foreign investors, how well can the market support government’s financing efforts?

    The federal government has always and will continue to tap into the fixed income market as a way of providing funds and finances to fund a budget deficit. We believe that the domestic pension funds and other investors have sufficient capacity to support government’s bond issues. Issuing project related bonds would also be an avenue to raise funds to plug the budget deficit in our view This will however have to be looked at from a contract sanctity perspective. On the equity side of the capital market space, one way to fund the government deficit is by getting some of the properly-run government agencies to list on the exchange. Take for example NNPC listing on The Exchange or perhaps the National Communications Commission (NCC). The power of sovereignty alone could be compelling enough for investors to invest and hence for the government to source the liquidity it requires.

    Stanbic IBTC is a dominant player in Nigeria’s capital market; how has stock market volatility and the weak performance of recent public offerings affected your overall performance in the last one year?

    Investor apathy towards Nigerian equities at the moment cannot be overemphasised and all due to a number of reasons; weak outlook of the Nigerian economy following the crash in crude oil prices, reduced FX liquidity, weaker company-specific fundamentals amongst others. The impact has been felt on the entire bourse with the Nigerian All share index declining by about 16.14%, 17.36% and 6.17% in 2014, 2015 and 2016 respectively. This is significant as investors are not keen on taking positions at the current price level because of the fear of further diminution. Although there is still liquidity in the system as a whole, we will continue to engage investors to look at sound investment.  We remain and would continue to work towards being the number one stockbroking firm in Nigeria.

    It is said that the future that comes to fruition does not just happen; it is accomplished by human effort. As a company what goals have you set for the firm in the next four years?

    Yes we have consistently been the market leader in the stockbroking space over the last couple of years. Just like the brand we represent, we aspire to continue to be the market leader. In addition, we look forward to partnering with the capital market regulators to introduce and champion progressive initiative relating to investment vehicle and education.

  • U.S. showcases business opportunities in Enugu

    The Foreign Commercial Service of the United States Diplomatic Mission to Nigeria has concluded a four-day outreach to Enugu State that focused on expanding commercial ties between the U.S. and Nigeria, especially the Southeastern geo-political zone.

    During the outreach, a team of trade and commercial specialists from the U.S. Mission to Nigeria, led by Commercial Counselor Brent Omdahl, held meetings with Enugu State Governor Ifeanyi Ugwuanyi, state commissioners, and other senior Cabinet-level officials on trade opportunities which will contribute to mutual prosperity and job growth for both countries.

    “This outreach demonstrates the strong U.S. business interest in expanding commercial ties with Nigeria,” Commercial Counselor Omdahl said.

    Governor Ugwuanyi and Commercial Counselor Omdahl discussed U.S. investments in Enugu State, including the on-going $700 million Motir DuSable solar plant project in the Nachi community of Udi local government area. At full capacity, the solar plant will add 300 Megawatts to the national grid.

    While in Enugu State, the U.S. Foreign Commercial Service participated in the 28th Enugu International Trade fair. The Foreign Commercial Service also hosted leading regional business owners at a workshop entitled: “Networking with the USA Business Summit and Conference – Enugu 2017”.

    “We are expanding our Networking with the USA (NUSA) program to key growth areas in Nigeria and we see Enugu as one such important growth area. During this program, we advised Enugu companies on best practices for engaging with American companies, in addition to discussing U.S. agencies to work with in order to take advantage of various partnerships,” Commercial Counselor Omdahl said.

    In the course of the Networking with the USA (NUSA) program, an American consular officer from the U.S. Consulate General in Lagos held a session with the business owners on the process for obtaining a business visa to America. The consular officer demystified the commonly held ideas about U.S. visa application process.

    The Foreign Commercial Service of the U.S. government works to promote the expansion of U.S. trade and investment to Nigeria through support of business partnerships between American and Nigerian companies.

  • Leadership hazards and opportunities 

    Leadership hazards and opportunities 

    A leader literally and figuratively occupies the space in the front of the line. That space is riddled with uncertainties and perils. In battle, the leader faces the enemies, whose goal is to shoot and kill. If the enemies are skilful, you may be hit. If they are not, they can misfire. There are also land mines on your path, just in case the machine guns miss you.

    As you lead, your followers are behind. If you are lucky, and they acknowledge and respect your leadership skills, they will give you cover and watch your back. If they don’t, or they envy your frontline position, they can orchestrate your downfall. In the heat of the battle against the enemy, they may plan a mutiny, or they may simply abandon you to your fate. Of course, you may also be an unwitting cause of your fate.

    As in war, so it is in politics, which has led some to find a fitting analogy between war and politics.

    Fortunately, the perils of leadership are balanced by the opportunities that it affords for providing fresh insights for the greater purpose of achieving lasting success for the organisation, be it private, public, or national. Ideas matter, and leadership with ideas inspire. Examples also matter, and leadership with personal stories of effective leadership under grave circumstances with ideas proven to work can galvanise pragmatic steps toward the achievement of shared goals.

    This intertwining of leadership hazards and opportunities has always played out at various points in our national history. Recall the First and Second Republic partisan brickbats within and between party hierarchies. We have also seen a similar trend in the present republic, again within and between the major political parties. For Master History, repetition does not connote failure.

    Yet the way the interconnection played out in the last one week has especially been quite dramatic and hilarious.

    First, let us bring to the fore evidence of the danger of leadership, including the desperation of the opposition coupled with its unskilful use of ammunition. Two related stories caught my attention in this regard. First, on April 2, THISDAY newspaper carried a story headlined “PDP Caucus Accuses Tinubu, EFCC of Conspiracy to Destroy Senate.” Naturally, I was interested in the story. But as I got into the middle, it became clear to me that something was not right.

    The article reported that the Senate PDP caucus was upset that Tinubu was involved in a conspiracy with the EFCC to destroy the Senate and impugn the integrity of its members. Surely, if this was true, PDP caucus had the responsibility to raise the alarm as members of the Senate. The justification is that even though the caucus is in the minority, it sees itself as a good corporate citizen of the chamber. Good for the Senate PDP caucus, I said to myself.

    As I read on, however, I saw less than circumstantial evidence in the allegation against Tinubu. Media agencies associated with him carried critical reports or comments on Senate leadership. Oba Akiolu vowed to deal with Senate. And there was a “savage” attack on Senator Peter Nwaboshi, who had moved a motion on the “refusal of the executive to respect Senate resolutions.” THISDAY also reported that its source contented that Tinubu and his friends “were not happy that senators supported President Muhammadu Buhari, when he was away. They thought we will help them bring down the government because of their ambition.”

    Now, this last accusation is strange when it is combined with the accusation by the same “source” that Tinubu’s friends had attacked the Senate because of its motion on the refusal of the executive to respect Senate resolutions. In one breath, Tinubu and his friends were accused of attacking the Senate (i) because the Senate supported the Presidency and (ii) because the Senate opposed the Presidency. The accusation is a classic case of self-contradiction.

    On top of this, there is no reference to any named individual who made the accusations, only to anonymous “sources”. The most bizarre of this is that no word or statement, written or verbal, was attributed to Tinubu as basis for the allegation of his war against the Senate. It is a case of guilt by association. By which it means that none of the individuals and organisations mentioned as having something to do with the grievance of the PDP caucus can act freely and independently. Their actions or statements must be authorised by Tinubu.

    But the story itself has no legs and it disappears into the thin air as quickly as it appeared. By the following morning, it was gone and this time, there was at least one credible source. The leader of the Senate PDP caucus, Senator Enyinnaya Abaribe, who should know, “said the caucus did not discuss Tinubu at any time.” “It is far from the truth”, he said. “We did not at any time discuss Tinubu at our meetings and nobody accused the EFCC of anything.” Just like that, “the handwork of mischief makers” as Abaribe put it, was discredited. Like the wiretap claim of one that will remain unnamed, this too fell flat.

    But who are these “mischief makers”? One THISDAY reporter “broke” the original baseless story. It was another THISDAY reporter that nailed its coffin with a new reporting. Did the first reporter make up the story? To what end?  Was the fake story planted by Tinubu’s political opponents who found a willing journalist to publish it? Shouldn’t the journalist confirm the story with the Senate PDP caucus before going to press? Or did the PDP caucus decide to wriggle out of an embarrassing story?

    It is telling that even the second reporter avoided mentioning the original reporter or the fact that THISDAY published the debunked story. Whatever answers there are to these questions, the story itself confirms the hazard of leadership. Tinubu has come a long way to be acknowledged as a major issue in Nigerian politics today. The territory he occupies is also the aspiration of others who feel threatened by his intimidating presence. I have no doubt that he gets it that to feel secured and stable in your own skin due to the power of your ideas is one of the most important assets of a leader. Hence his penchant for idea-powered leadership.

    This takes me to the other side of the linkage, the opportunities of fresh insights and ideas for the greater purpose of the organisation. With no time for the frivolity and theatrics that characterise the everyday outing of some politicians and the cat and mouse relationship that politics seems to nurture, Tinubu has taken on the task of regular intervention, with the power of ideas, in the national search for greatness since the beginning of the Fourth Republic.

    The inauguration of a colloquium series that focuses on issues of national significance is a confirmation of Tinubu’s stature in the politics of ideas. Needless to add, great ideas and a dogged pursuit of their execution are what makes a nation great— not dictatorship, not mindless populism, certainly not malicious accusations that have no foundation.

    In his address to his namesake colloquium, Tinubu again demonstrated his grasp of what turns the wheel of economic advancement: shape the economy for the benefit of the people. This is basic, but have we fully embraced its logic?

    If we did, millions will not be out of work today. And tens of millions will not be underemployed. One way we have failed and pursued the opposite of what is required is conform ourselves to the rentier mono economy which makes us consumers rather than producers. We even outsource the production of our only product to multinationals and whine that they defraud us. Hopefully, we have learnt the important lesson from this ongoing recession, that if the lives of our young ones are not to be wasted in their prime, if we are to help them realise their full potentials, we need an economy that works for them, a diversified economy that develops our indigenous resources for what we and the world need.

     

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  • Dangote to extend investment opportunities

    Dangote to extend investment opportunities

    Multi-billionaire investor Aliko Dangote has expressed his group’s desire to consolidate on his existing investments in Zambia and other African countries by exploring opportunities in the energy and agriculture sectors.

    Dangote spoke when he visited Zambian President Edgar Lungu to express his gratitude for the enabling environment that the country offered investors at every level.

    Already, the business mogul has a cement factory in Zambia in which several hundreds of Zambians are employed.

    Dangote urged Zambian government to roll out policies to encourage massive investments and the produce very competitive.

    “I am here not only to explore investment opportunities and consolidate our existing business relations, but also to congratulate your Excellency for your victory in the last general elections. I wish you many years of success as you guide your nation to greater heights and prosperity,” Dangote said.

    “During your tenure, you need to implement agricultural practices, which will ensure that yields per hectare are high and competitive,” this is because, “Zambia’s natural advantage in the export market is the readily available captive market that consists of eight neighbouring countries and other nations in the great lakes region,” he said.

    “We are going to explore investment opportunities in the energy sector and perhaps look at the viability of existing petroleum refinery facilities,” he added.

    Lungu said his government was determined to put in place policies that would be investor-friendly and guarantee conducive and enabling environment for the businesses to thrive.

    The Zambian helmsman instructed Minister of Finance Felix Mutati and relevant government ministries and agencies to ensure that the process of facilitating investments in job-creation enterprises was efficient.

    “Agriculture is the major thrust in Zambia’s economic diversification drive and among our top priorities, which include the provision of affordable food, fuel and farmer inputs.

    “I admire your tenacity and commitment to invest within Africa because that is what improves the brotherhood between nations. We will support you and facilitate your investments in Zambia,” assured the President.

    He added:  “We need to put our hands together to help our people out of poverty.”

  • Recession offers opportunities for SMEs’growth, says expert

    President of Successedge Exporters Network (SEEN), Mr. Godwin Abiodun Oyefeso, has said economic recession does not mean an end to life. He said it  could be a springboard for the growth of Small and Medium Enterprises (SMEs) in the country.

    Oyefeso, while delivering a paper entitled: “Economic recession, the power of change in life and opportunities for SMEs in the non-oil export of the economy”, during a conference in Lagos, pointed out that recession could provide a lot of opportunities for businesses.

    He admitted that recession could bring feelings of lack, poverty, pain and loss, but it could provide a lot of opportunities for the growth of SMEs.

    He explained that most successful companies such as FED EX, Microsoft, CNN, HP started during recessionary periods because their founders identified some opportunities that existed within the period and filled them.

    He said: “While we hear so much about how the net worth of billionaires and millionaires are shrinking, there are a lot of millionaires increasing their net worth or being made. This rich people have created a recession profit lifestyle and do more than survive during a recession.

    “The key to understanding a recession is that the country’s economy is different from your personal economy. In fact, the recession provides the greatest opportunities for taking your life into your own hands. Just like having a raining season like economic boom and recession.

    “The following are strategies one can use to survive in a recession: diversity your income, use other people’s money and do the something, but different.”

    According to him, Michael J. Cullen, who revolutionised American life by creating the modern supermarket, left his work in 1930 to start a self-serve supermarket with space for auto mobile parking and within two years, he made about $6 million in revenue.

    ‘’In Kentucky, United States (US), a good grandfather called Colonel Sanders, started serving chicken at his gas station during the great depression and by 1937, he had expended to 142 seat restaurant due to popular demand.

    ‘’In October 2008 during the height of financial crises, Warren Bullet bought $5 billion shares in Goldman and $3 billion in General Electric. Following this investment, Buttet made billions of dollars at a 10 per cent premium over his initial investment.’’

    Oyefeso added: “If you have funds, this is the time to purchase real estate assets. Rather than copying others, look for what everybody is doing and fill a need and do it differently.

    “Start a business with low start-up cost. Coincidently, most survivalist entrepreneurs typically open business in the food industry. Invest or purchase under- valued assets.’’

  • Editor advises students on journalism opportunities

    Mass Communication students have been advised to hone their writing and entrepreneurial skills in order to benefit from opportunities in journalism. While in school, The Nation Online Editor Lekan Otufodunrin said, students can engage in blogging, photography and freelancing, among others, to improve their employability after graduation.

    Otufodunrin gave the admonition at the School of Communication of the Lagos State University (LASU) last Wednesday during the presentation of his book entitled: Journalism of my life.

    In the 88-page book, Otufodunrin, whose journalism experience has spanned three decades, recalled his foray into media profession, during which he worked in various media houses as reporter and editor. In the book, the author explained how he was selected for various local and international fellowship programmes and trainings.

    Otufodunrin also wrote about his days at the University of Lagos (UNILAG), where he actively participated in activities of several campus associations. His experience after getting his first job also featured in the book.

    He wrote: “When aspiring young journalists complain about how long and hard it is for them to get a job after National Youth Service, I usually tell them that jobs have always been hard to get. After my youth service in June 1986, I had to wait for more than four months to find anything close to employment. I, immediately started applying for jobs anywhere I heard mass communication graduates were needed.”

    The book, he said, was meant to inspire young journalists and help them navigate the “increasingly tough media landscape”.

    One hundred copies of the book were purchased by The Nation Editorial Board Chairman Mr Sam Omatseye for free distribution to students.

    Responding to the donation by Omatseye, president of the LASU Journalism Students’ Association, Oluwatosin Mohammed, said: “This kind of donation to students is not common. We appreciate our patron, Mr Omatseye, for this gesture to support our career, and also Mr Otufodunrin for giving us opportunity to learn from his experience.”

    A lecturer in the department, Dr Jide Jimoh, advised students to read and take steps to enhance their career.

     

  • NOLLYWOOD’S ERA OF NEW OPPORTUNITIES

    Why are they calling us now?” Kunle Afolayan asked during an Access Bank’s breakfast session with filmmakers last Thursday.  The bank is planning to replicate the Bank of Industry (BOI)’s NollyFund, a ‘friendly’ loan scheme for the film industry. Without pretence, they call their own Access NollyFund; but whether or not theirs will stand the test of time, is a matter of time.

    However, the fact is that, like Afolayan further stated at the forum: “It only shows that Nollywood filmmakers are getting it right.” Because gone are the days when no bank wants to touch Nollywood because it does not have the kind of business structures that endear it to investors. Today, even though the structures are still ‘in the works’, especially in the area of distribution and exhibition, there appears to be signs of greater times ahead.

    Another issue which has locked filmmakers in a very interesting debate in the last two weeks is the Motion Picture Council of Nigeria (MOPICON) bill. With a review committee about to be inaugurated by the Minister of Information and Culture, Alhaji Lai Mohammed, this comes across as the beginning of another defining moment for the film industry which, for years has been yearning for a common front.

    Going forward, the fears about the bill being another regulatory agency of government may soon disappear, because from the composition of the review committee, it is obvious that this is simply a practitioners’ council that merely needs government’s legislation for enablement. Yes, MOPICON needs to be enabled to function as a front in the face of the numerous guilds and associations that have robbed the collective of some orderliness and respect.

    It is hoped that with the seriousness of the current regime regarding economic diversification, the industry will articulate its demands through MOPICON. Nollywood still needs so much support from government and, not to speak with one respectable voice is to lower those esteem needs with the usual dissonances.

    While this issue of MOPICON is ongoing, another concern for filmmakers is the Audio-Visual Rights Society (AVRS) which is one of the surest revenue streams for the film industry.

    One only needed to be at the last AVRS Annual General Meeting and election of new Board of Directors to see how stakeholders have decided to take their destiny in their hands.  ‘Everyone’ was present. And I can tell that the membership of AVRS will shoot up in no time.

    Indeed, Copyright Society of Nigeria (COSON), the musicians’ version of the AVRS has opened the eyes of entertainers to some monies that have been wasting away, having distributed about N400million within the last five years of its existence.

    It is hoped that the Bond Emeruwa led new leadership of AVRS will continue to pursue the dreams of its founders and predecessors, perhaps with more vigour.

    I keep remembering November 20, 2014 when the D.G of Nigerian Copyright Commission (NCC), Mr. Afam Ezekude, handed over the certificate of registration to the interim chairman of AVRS, because that date was my birthday. I was glad that an initiative of that nature was so dated, and prayed it continues to be a part of my positive reportage of the film industry.

    Going by Ezekude’s advice during the AGM of AVRS, “the industry must speak in one voice in order to persuade all users of film works to pay royalty for such usage to AVRS,” adding that “for AVRS to earn the support of all stakeholders, it must ensure that its operation is carried out with a high level of integrity.” I cannot agree less.

    No doubt, the industry is sitting on a gold mine, but the fortunes may remain a dangling carrot if members refuse to bond for their common good. Suffice to say that apart from the popular commercial users of audio visual content, such as transmitting and re-transmitting companies, advertising agencies, telecoms companies, hospitals, relaxation spots, luxury bus operators, airlines, banks, super markets and chain retail outlets, and barbing/hairdressing salons, as enumerated by the erstwhile Chairman of AVRS, Mr. Mahmood Ali-Balogun, there exist other channels of revenue that are pending. One of such is the Private Copy Levy, which experts say is capable of generating about N200 million for members monthly, if and when the private copy levy is implemented in Nigeria.

    The levy is compensation for creators and investors in music, movies and literary works for the loss of revenue through free download of works via gadgets such as MP3s, MP4s, Cell phones, memory cards and flash drives, among others.

    Welcome to the world of new opportunities for Nollywood!

  • Tinubu: Nigeria must turn challenges to opportunities

    Tinubu: Nigeria must turn challenges to opportunities

    National Leader of All Progressives Congress (APC), Asiwaju Bola Tinubu, yesterday challenged Nigerians to   turn the country’s present socio-economic condition into opportunities for a desirable re-engineering of the economy.

    Nigeria, according to him, has long stood in the corridor between greatness and failure, between progress and calamity and must now “summon the courage to take the bold steps and move in the direction.”

    “We must reform and do so quickly and with alertness to the severity of the circumstances mounting around us,” Tinubu said in a prepared speech he delivered at the 15 – 20th Convocation ceremony of the University of Abuja where he awarded  the honorary doctorate degree in Business Administration (DBA, Honoris Causa).

    Tracing the country’s woes to past leadership, he said: “The ways in which we have grown accustomed to running this nation no longer suffice.

    “If we are to continue as we have done over the years our malpractice will deliver us into the vice grip of national failure.

    “That which we used to do then laugh at ourselves for our errant ways is no longer a joking matter. It is now fatal.”

    He spoke of the plan of the ruling APC to lift 20 per cent of Nigerians out of poverty within four years.

    For this to happen, he said, the state must be a fulcrum for job creation and economic development that touches all Nigerians not just a narrow growth that benefits few people.

    “Although confronted by multiple challenges, I believe this government has the chance and the mission to better our society and forge a new model for our national governance,” he said.

    “We have demonstrated the courage and determination to change a non-performing government through a democratic election. This electoral success has brought new challenges. These challenges are numerous and we must confront them with an even greater courage than that which saw us through the election.

    “We shall do this by implementing a national industrial policy linked to a national infrastructural plan and a national employment strategy.

    “Before our children can dream of a university education they must first enjoy the foundational education of primary school.

    “Our position is that we make a special effort to draw all children to school, particularly the poor. We cannot afford to allow poverty to keep children out of the classroom. If so we are suborning a life of ignorance and poverty for millions of our young ones.

    “This progressive government is committed to providing all school-age children one free meal daily. This seems a simple thing. But it is also wise and prudent. A hungry student does not learn. If the child is too hungry too often, he stops attending school altogether.

    “By this programme, students will more eagerly attend because their stomachs as well as their minds shall be fed. Parents will encourage children to attend because this will take the children off the streets while also alleviating pressure on the family to feed the children.

    “This current leadership will anchor its efforts to re-build Nigeria on massive industrialization and the re-structuring of the economy to allow for growth. Then, will hope be rekindled for millions of our people and a country of great potentials and possibilities will emerge.”

    Second Republic Vice President Dr. Alex Ekwueme, was one of those conferred with honorary degrees.

    His Doctor of Science (Honoris Causa) was received on his behalf by his daughter.

    Others who bagged awards at the ceremony were: former Chief Justices of Nigeria, Justice Idris Kutigi, Doctor of Laws (LLD) and Justice Maryam Aloma Muktar, Doctor of Letters (Dlitt) – both (?Honoris Causa) as well as Deputy Senate President, Ike Ekweremadu, who got PhD in Law and Senator Buhari, PhD Social Sciences.

    President Muhammadu Buhari, in a message on the occasion said that government alone could not  meet the needs of higher education.

    Represented by Director, Tertiary Education, Ministry of Education, Hajia Abdullahi Hindatu, the president encouraged private sector to invest more in research and development in the universities.

    He said:”It is pertinent to emphasize on the quality of teaching and research in our universities.

    “Research should not be relegated to the background in our universities. I therefore urge Nigerian universities to ensure that the quality of the graduates produced compares with products from other universities globally,” the president said.

    Twenty-five thousand, eight hundred and seventy-eight students received their degrees at the ceremony.

    The Vice Chancellor of the institution, Professor Michael Adikwu said 20, 461 received first degree in various fields while 1697 received postgraduate diploma.

    Eight students bagged first class between 2008 – 2015 sessions.

    The breakdown showed that 2,324 were awarded with Second Class, Upper Division; 11,180  were awarded Second Class Degrees, Lower Division.

    Adikwu said that Nigeria’s road to sustainable economic development lied in the creative ability of citizens to turn adversities into opportunities.

    He urged the graduating students ?to use personal initiatives to seize the opportunities that still abounded in the country for them to be self employed.

    Present at the ceremony were former interim Head of State, Chief  Ernest Shonekan; a former interim chairman of APC, Chief Bisi Akande; state governors; Minister of Information, Lai Mohammed; House of Representatives Leader, Femi Gbajabiamila;, Senator Abdullahi Adamu, a former Niger State governor, Dr. Mu’azu Aliyu; and Rep. James Faleke  among others.

     

  • ‘Stock Exchange has opportunities for growth’

    ‘Stock Exchange has opportunities for growth’

    The Chief Executive Officer of Seplat Petroleum, Austin Avuru, has advised companies to pursue good corporate governance and institutional framework as a means to accessing funds for growth and development at the Stock Exchange.

    He spoke at the tenth edition of the US-Africa Business Summit which held in Addis Ababa, Ethiopia.

    Avuru, who was a panelist at a session on ‘ Financing Africa’s Private Sector Growth’ noted, “that there are funds actually sitting and waiting for investable opportunities, for example from the Pension funds and Insurance companies” and that African businesses should take advantage of these opportunities to develop their businesses and grow the country’s economy.

    He noted that unlike in the past when “the Nigerian banking sector did not lend up to $20m to any sector for over 20 years, the oil and gas sector in the country alone has accessed credit facilities to the tune of $5.7b within the past five years” while insisting that “indigenous entrepreneurs must work towards attaining international standards of operation as a way to attracting more fund injection be it through the banks or public offerings.”

    Sharing the experience of Seplat which is the first upstream company to be dual listed on the Nigeria and London Stock Exchanges, Avuru told the audience that while going public remains one of the most veritable ways of raising funds for a business entity, any company aiming at being listed on the stock exchange must be prepared to open itself up to public scrutiny.

  • Aregbesola: fresh opportunities waiting to be tapped

    Aregbesola: fresh opportunities waiting to be tapped

    Text of Osun State Governor Rauf Aregbesola’s broadcast to usher in the New Year

    I congratulate you all for seeing to the end of the old year, 2015, and the beginning of the New Year, 2016.

    The old year was particularly interesting and brought its own blessings, triumphs and challenges. It was a year of national election during which we voted for a president of the people in the true sense of it. It was a landmark year when we had and took a great opportunity to break from a ruinous and anti-developmental ruling clique bent on taking the nation to the dark ages, and began a transition to a prosperous, secure and promising era superintended by genuine leadership that rose from the people. It was in a true sense the year of liberation and freedom for the Nigerian people.

    In that past year, in spite of our dire financial challenges, we fulfilled our obligation to the people by providing security, healthcare, education and enhanced environment for economic activities. You will recall that many of our legacy schools were completed and commissioned in 2015. Our administration’s flagship high school, Wole Soyinka Government High School in Ejigbo was also commissioned. We signed many Memoranda of Understanding (MoU) with reputable institutions, including the International Institute of Tropical Agriculture (IITA), Ibadan, the French government and a Chinese consortium for huge developmental programmes and job creation endeavours guaranteed to bring giant developmental strides for our state and people.

    That great year, ironically, also witnessed dwindling national economic fortunes. The pillaging of the national treasury that began with the ancient regime was compounded by continued precipitous drop in oil prices. The undisputable evidence of this fall is that a barrel of oil which went for $140 in 2013 sold for $31.71 yesterday (December 31). There are even unsavoury prognosis that before long, it might drop below $20.

    The effect of this sharp reduction is that the distributable pool of the Federation Accounts that hit a zenith of N1.2 trillion in 2012 dropped to a new low of N369 billion in November allocations shared in December 2015.

    The stark implication of this for the Nigerian governments at the federal, states and local levels is that revenue derivable from the Federation Accounts, as the basis for running government, has been reduced to little or nothing.

    It means for us that the era of unearned revenue has come to an end. We are now entering into a new and special period where it is imperative for us to work for our own money before we can spend it. This period demands innovation, creativity, productivity, industry and wealth creation.

    I am therefore asking of you all, that whatever your vocation may be, you must work harder, be innovative and double your productivity from now on. Whatever your estate: traders, farmers, civil servants, artisans, transporters, workers, corporate executives and the self-employed, you need to do more than before.

    Productivity is the key to tiding over and making the best of the special time we are in. It requires of – especially – the youth and school leavers to embrace the philosophy of hard work and innovation. This means finding engagement in farming and skill acquisition, instead of relying on general academic qualification in order to take advantage of this special period. No one must be idle again.

    Every challenge brings its own opportunities. Fresh opportunities are waiting to be tapped in this special time. It only requires that we reach into our natural God-given ingenuity and endowments.

    For us, we are already working in the areas of agriculture, solid mineral development, tourism and manufacturing.

    Tough times don’t last, but tough people do. When the going gets tough, the tough gets going. The history of development has taught us that humans are the primal agent of development. Development begins with thinking and coming up with ideas; only humans do that. These ideas are given life with their incorporation into policies which are then implemented to form an unending cycle of enterprise and wealth creation.

    Development in machinery and robotics notwithstanding, humans still drive work and put even machines and animals to any endeavour.

    Humans also form markets. Where there are humans, there is something to be sold, a service to be rendered and a money to be made, of course legitimately. We only need an atmosphere of peace, mutual respect and tolerance, even if we lawfully compete against each other. As long as we remain a people, united and resourceful, no force on earth can halt our march of greatness.

    The government will do everything within its powers to maintain its covenant with you. We will not leave you alone – hopeless and helpless. We are in it together. We shall provide leadership, show the way, do what we say and walk the talk. From the present situation, we will lead and guide you to new opportunities from which we will create new wealth and bring prosperity for all. Only the lazy has no place.

    We shall continue to provide security for lives and propertyand promote peace. This is the primary social good on which other goods rest upon. We shall also continue to provide healthcare service by putting our hospitals and medical institutions in the best shape. We are not going to slow down on education. It has been our priority and we are determined to make it our greatest legacy. The immortal words of Confucius is apt here. He said: “If your plan is for a year, plant rice; if your plan is for 10 years, plant trees; but if your plan is for 100 years, educate children.”

    The Federal Government has spoken its mind with some assurances on the challenges facing the nation. I am assuring you that solutions are being sought to the nation’s financial problem and every effort is being made to cushion the effect, one of which was the concessionary loans provided for states last year to offset the backlog of salary arrears. We must support them in our own way by working hard, create wealth and adding value to the commonwealth more than we take from it.

    It has also become necessary that you maximally support the government by paying your taxes, rates, levies and fines to the government. Every government is established on the sound foundation that it will be upheld and sustained with the taxes of the people. People place legitimate demands on their government only because they have a sense of ownership that comes from supporting that government with tax payment. This consciousness has been dulled in the past because the government has been supported largely with free and unearned oil money. That is now past. The consequences of direct ownership of government must be reawakened and you must enthusiastically pay your tax.

    I will like to thank all the people of the State of Osun for your kind support, understanding and unflinching loyalty to our government from time immemorial. I thank the women and their groups, market women and men, traders, artisans, civil servants (for their profound sense of understanding and cooperation with government), workers, students, transporters, commercial motorcyclists, employers of labour, organised private sector, the business community, non-governmental organisations, community based organisations, youth organisations, political parties, traditional rulers, community leaders and religious leaders.

    We have overcome obstacles, taken giant strides and buoyed with confidence to face any challenge in our way because we have firm assurances of your continued support. I thank youall.

    I commiserate with the Ijesa people, especially the traders at Atakumosa market, over the fire that razed the market recently. I also commiserate with the proprietress of Bovas Filling Station, Osogbo, over the gas explosion at the station, occasioning the loss of a family of four, including young children. Our hearts are also with the people of Ibadan, Onitsha and other places ravaged by fire in 2015. May such disaster never reoccur in our nation.

    On behalf of the government and people of the State of Osun, I offer heartfelt condolences to the government and people of the northeastern states of Nigeria being buffeted by insurgency. I pray the efforts of government will succeed and their afflictions will soon come to an end. We stand with the parents and families of the missing Chibok girls at this trying period in their lives. We pray that their sorrows and pains will end soon when the girls are found and reunited with their loved ones.

    It is my earnest prayer that the New Year will be peaceful and usher in fresh opportunities, goodness, prosperity and abundance to all and sundry.

    I wish you a happy and blessed 2016.

    Osun a dara!