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Tag: PwC

  • PWC urges govt to implement mining roadmap

    PWC urges govt to implement mining roadmap

    The PricewaterhouseCoopers (PwC) has expressed doubt over the implementation of the mining sector roadmap. According to the audit firm, nothing  has happened since the blueprint was unveiled about a year ago.

    Available records, it said, have  shown that the mining sector’s contribution to the Gross Domestic Product (GDP) had remained far below expectation, accounting for only about 0.33 per cent in 2015, which was before the inauguration of blueprint.

    A multi-stakeholder committee was set up by the government to develop a roadmap for the transformation of the sector to boost its growth. The deliberate outline included building a world class minerals and mining ecosystem designed to serve targeted domestic and export markets for minerals and ores.

    The blueprint was also expected to rebuild the nation’s minerals, mining and related processing industry, rebuild market confidence in minerals and mining sector and win over domestic users of industrial minerals that are currently imported.

    PwC advised that the government should focus on expanding domestic ore and mineral processing industry and make the sector competitive.

    A PwC Director, Cyril Azobu, who spoke with The Nation said for government  to develop the sector, it needs to implement the strategic actions that were contained in the roadmap.

    According to Azobu,  the PwC was in touch with the mining strategic team, assuring the firm’s support  to the Ministry of Solid Minerals to ensure that strategic actions contained in the roadmap were implemented.

    He said: “Execution is a critical thing, that is where we are interested in and we are working with the government and the private sector to see how that works. We are really much interested in getting this to work. However, there are other stakeholders that are involved, everyone needs to be committed to making this work.”

    He said efforts being made are geared towards encouraging development of certain strategic minerals such as bitumen and iron ore as well as legal matters.

    He said: “It is expected that there would be a resumption of activities within the iron ore space such that we could have complete integration from iron ore mines to steel production and other processing companies to develop iron ore.

    “I have not seen much activities, given the great expectations we had.. The truth is that this is one area the government needs to give attention in terms of funding, and very recently the mining development fund was inaugurated, but it is yet to pick up.

    “I think much of the activity had been a bit of institution building, and addressing existing legal matters has slowed down the industry. We are concerned because in a couple of months the year will come to an end without achieving the expected goals of the roadmap.

    “I am aware the mining development fund board has been constituted, but I think they will need to step up efforts in terms of how they stimulate the industry from funding perspective. I hope they will have the cooperation and get to work. I hope the issues around legal matters will be ironed out. I also hope that bitumen, which seems to be one of the strategic minerals will also pick up and there will be activities to bring investments into the country.”

    On funding, the PwC boss said exploration funding was not attractive to funding institutions because its high risk, adding that except those who have the licences are able to get private funding. “If you ask anyone in the mining sector today, the real issue for them is funding,” he said.

    Azobu said part of what the government has done is the provision of minerals data. This, according to him, has helped in carrying out appropriate exploration.  “There is a bit of work going on in respect of funding from the government. Nonetheless, one also needs to be sure of what exactly one is funding and how it will provide the expected outcome in addressing the funding gaps,”he said.

     

  • PwC on Edo’s path to economic prosperity

    No country can grow and prosper economically without a favourable environment that enables business to thrive. Indeed, no state can flourish economically and progressively improve the socioeconomic condition of its people if it lacks workable economic policies and business-friendly atmosphere.

    To engender economic prosperity, those who drive the machinery of government must manifestly see to it that they constantly initiate and implement policies that make for the thriving of business and competitiveness, and continually address challenges that may hamper the booming of business even as they beat every path of available opportunities therein. To do otherwise is to stagnate, nurture poverty, and worsen the human condition.

    The foregoing position is a fitting summary of PricewaterhouseCoopers (PwC), findings in a recently conducted study in the area of State-Level Business Environment.

    Entitled “Promoting Economic Prosperity: Analysis of the State-Level Business Environment in Nigeria”, the report provides findings from the State-Level Business Environment Analysis carried out in four different states of Anambra (South-east), Edo (South-south), Ogun (South-west), and Niger (North Central).

    For each of the states, the study reveals that certain positive efforts are already in place and others are being taken to nurture such business-friendly environment that encourages effective competitiveness, motivates investment and boost investors’ confidence and, consequently, realise economic prosperity for the people.

    In the case of Edo State, the study explicitly affirms the fact that the state government demonstrates renewed interest in significantly improving the business environment in the state through workable policies and decisive engagement of the challenges in the business sphere.

    It captures the unembellished and unfeigned reality that the state government has a deep business-oriented consciousness, hence its organised move to improve and build public infrastructure, expand revenue base, improve the capacity of the workforce, and provide incentives that attract investors.

    This is not any surprising when viewed against the backdrop of the fact that Governor Godwin Obaseki is a business-oriented mind with a rich trove of experience in the private sector. It is this background that the man brings to the service of the state as its chief executive officer.

    As the study rightly observes, the Obaseki administration wastes no time in walking the path of economic prosperity for the state. Within three months of taking office, the administration was able to perfect a trade mission to China in order to attract relevant investors to the state.

    As every business-inclined entity is wont to do, the outlined goal of making Edo State an emporium of economic prosperity within the South-south region is being undertaken through a carefully mapped-out plan of institutional reforms, economic revolution, culture and tourism, environmental sustainability, socio-welfare enhancement, and infrastructure development.

    This inclusive governance structure, as the PwC report describes it, is the administration’s way of ensuring that it avoids a one-sided, limiting development culture.

    Similarly, it is worthy of note that the commitment of the Obaseki administration, like its immediate predecessor, to the socioeconomic development of Edo State is not a ruse. In other words, the vision is not a feel-good idea for which the government has no means of actualising it.  As the PwC report asserts, “Edo state has abundant resources to support its prosperity agenda”. The government is keenly aware of this and it is methodically and consistently taking the right step to make judicious use of the resources.

    One of those resources being effectively harnessed for the economic development of the state is in the area of agriculture. The Agripreneur Programme initiated by the government is a worthy example of how it is using available resources to transform the state economically and considerably reduce unemployment.

    “With over 2 million hectares of arable land,” the PwC report notes, “the state is well positioned to enjoy strong expansion in crop production including oil palm, rubber and cassava. Deposits of limestone, marble, gypsum, feldspar and granite among others have also been reported to exist in abundance in the state. The state houses major agro-allied companies in Nigeria including Presco, Okomu Oil and PZ-wilmar with large expanse of oil palm and rubber plantations. The government has begun efforts to increase the agricultural output of the state through the provision of incentives for investors and active partnerships for the development of the agricultural value chain.”

    Additionally, the development of a major seaport is another means through which Edo State under Governor Obaseki is creating a business-favouring environment for the prosperity of the Edo people. The Gelegele Seaport has as its major features an agribusiness development park, marine facilities, an inland port, and supporting infrastructure and facilities.

    Already, since large conglomerates such as BUA and Dangote group consider the state an attractive investment destination, according to PwC, it may yet emerge “as a trade hub for the southern region with significant impact on its prosperity”.

    In the area of revenue, the state government is deeply uncomfortable with the envelop economy that ensures that its biggest source of revenue comes from the monthly statutory federal allocation to states. This disinterest in depending solely on Abuja for big income has inspired a coordinated move towards aggressive improvement in the state’s Internally Generated Revenue (IGR).

    As the report reveals, the state reduced its major source of revenue from monthly allocation from 80% in 2011 to 55% in 2016, adding that “[during the review period,” the state’s IGR “increased by only 5.4% annually, which was below the zonal average annual growth of 8.2%.”

    What this presupposes is that Edo State must intensify and sustain its efforts to expand its income base. More precisely, the government must not at any point renege on its laudable commitment to such initiatives as taxes, land, infrastructure, public-private partnership scheme, and execution of business-friendly policies as practical means of enhancing business environment in the state.

    In order to put an end to this anomaly, the state government has designed a number of ideas, chief among which is the industrialisation park being developed. There is the Ossiomo Industrial park project which is expected to attract close to USD 1 billion in Foreign Direct Investment.

    As the PwC study equally makes clear, the Obaseki administration’s hands are firmly on the plough of development for all-round economic prosperity in the state. It is unswervingly labouring to become a reference point in building a truly business friendly environment.

  • PwC urges transparent use of tax revenue

    PwC urges transparent use of tax revenue

    Director, Tax and Regulatory Services, PricewaterhouseCoopers (PwC), Kenneth Erikume, has advised the Federal Government to ensure more transparency in the use and administration of oil and gas tax revenues.
    Speaking with The Nation on telephone, Erikume urged the Nigeria Extractive Industries Transparency Initiative (NEITI) to take the driver’s seat in driving this, adding that the agency is supposed to ensure transparency in the industry.
    He said: “They need to take the front seat and establish good and clear data and communicate back the data to the public.
    “It is our country, it is our resources; so everyone should have interest in it. If you make it public, people will be more comfortable with it and also have trust in the system.
    “I think there would be more trust if NEITI can take the initiative and make some of these things public.”
    He called on the government to put in place a website where people could get information about the royalty collected from the oil and gas industry, petroleum profit tax, and income tax.
    With this, he said one could trace how funds were generated, and utilised, adding that a country like Nigeria should be able to have this in place.
    He acknowledged there were many initiatives being embarked upon by the government, adding that the government needed to speed them up and make them more transparent.
    According to him, people could make claims when they do not have enough information, arguing that one of the things lacking in the system was sufficient information, particularly in the extractive industry.
    “If these information is available, I think people would be able to make decisions by themselves in terms of paying the right amount of taxes or not,”he said.
    Erikume said based on the contribution of oil and gas industry to the country, Nigeria should not be struggling with infrastructures such as hospitals, roads, electricity, water and schools.
    “So, there are two aspects of paying bills for oil and gas companies. There is concern whether they are paying the right taxes that audit can be carried on periodically,” he added.

  • PwC urges transparent use of tax revenue by govt

    Director, Tax and Regulatory Services, PricewaterhouseCoopers (PwC), Kenneth Erikume, has advised the Federal Government to ensure more transparency over the use and administration of taxes that come out of the oil and gas industry.

    Speaking with The Nation on telephone, Erikume, nevertheless, urged the Nigeria Extractive Industries Transparency Initiative (NEITI) to take the front seat in driving this, adding that the agency is supposed to ensure that there is more transparency in the industry.

    He said: “They need to take the front seat and establish good and clear data and communicate back the data to the public.

    “It is our country, it is our resources so everyone has a vested interest in it, and if you make it public people would be more comfortable with it and also have trust in the system that what the government is doing is sustainable.

    “I think there would be more trust if NEITI can take the initiative and make some of these things public.”

    He called on the government to put in place a website where people  could find out the amount of royalty collected from the oil and gas industry, petroleum profit tax, and income tax, from the industry and how they have been applied.

    With this, he said one could trace how funds were generated, and utilised, adding that a country like Nigeria should be able to have this in place.

    He acknowledged there were many initiatives being embarked upon by the government, adding that the government needed to speed them up and make them more transparent.

    According to him, people could make claims when they do not have enough information, adding that one of the things we lacked in Nigeria was sufficient information, particularly in the extractive industry.

    “If these information is available I think people would be able to make decisions by themselves in terms of paying the right amount of taxes or not,”

    He said based on the contribution of oil and gas industry to the country, Nigeria should not be struggling with infrastructural development such as hospitals, roads, electricity, water and schools, adding that everybody should have a decent life in Nigeria.

    Perhaps some of these companies may be contributing the right amount of taxes but overtime government may not have met the obligations using these monies judiciously, he noted.

    “So, there are two aspects of paying bills, for oil and gas companies there is concern whether they are paying the right amount of taxes then audit can be carried on periodically and I am sure those audits happen, there are various levels of audits and verifications that have been done,” he added.

  • PwC: Nigerian firms lack capacity for oil, gas exploration

    PwC: Nigerian firms lack capacity for oil, gas exploration

    •More assets divestments coming

    PricewaterhouseCoopers (PwC), an auditing firm, has said Nigerian indigenous oil firms still lack capacity to carry out oiland gas exploration despite the push by the Content Act passed into law in 2010.

    Its Director, Tax and Regulatory Services, Kenneth Erikume, said since the passage of the Act, aside funding challenges, indigenous operators still lacked  sufficient capacity to explore for oil and gas.

    Given these challenges, the Federal Government needs to focus more on building capacity at the local level and getting the Nigerian Content Development and Monitoring Board (NCDMB) to drive the acquisition of technical know-how requisite for the industry.

    He said with necessary expertise, the country would be able to create entities that could help other African countries in their oil and gas sector. This is the direction a country such as Nigeria, that started oil and gas operations in the 1950s, should be taking, he added.

    Erikume told The Nation that the government needed to address uncertainty of investments in the petroleum industry, respect some of the agreements and concessions it has with operators. When this is sorted out, investors would be more comfortable to invest, he added.

    He also urged the government to ensure that the Petroleum Industry Bill (PIB) is passed into law as quickly as possible.

    According to him, when an investor puts his money into a system, he will be interested in making progress.

    Since oil prices have started rebounding, he expressed optimism that investors would returm to the oil fields abandoned in the wake of the slump in prices.

    Erikume said the worst was over, adding that things could only get better. He said if oil price gets to about $60 per barrel, the country would begin to see more investments in the industry.

    “From the national perspective, what most investors are looking forward to is the final decision on the PIB, which has taken too much time to complete. It has implications on the fiscal quality which will impact on how much dollar an investor would be able to recover if he embarked on crude oil exploration and production,” he explained.

    Erikume said there would be more divestments by traditional international oil companies (IOCs). According to him, the multinationals will be focusing more on offshore and deepwater exploration where there are fewer issues of vandalisation and militancy.

    IOCs will continue to seek for divestment from onshore and shallow water assets and indigenous companies can pick up the assets.

    Erikume agreed that the challenge in passing the PIB was around balancing the interest of various stakeholders, including payment to the communities.

    In addition, there are conflicting issues around the fiscal provisions, which also have to be balanced in the interest of all.

    But, to address the issue, he said,  the National Assembly, in consultation with stakeholders, has to expunge the portion of the bill that is related to corporate governance and administration from the fiscal and commercial aspects of the bill.

    He noted that the oil and gas industry governance bill was being proposed. “So the industry governance bill is being considered now, I think it has passed second reading, I am hopeful because it is not carrying the baggage of the fiscal provisions of the full bill, it will be easier to pass into law,” he added.

  • PWC: Nigeria’s financial system showing least progress

    PricewaterhouseCoopers (PWC) yesterday said the nation’s financial system is showing least progress out of seven emerging markets.

    It also said Nigeria’s financial system is significantly impeding growth.

    But it said Nigeria and six others have performed well in private sector lending.

    The seven emerging markets are: Brazil, China, India, Indonesia, Mexico, Nigeria and South Africa.

    This assessment was contained in PWC brief on growth ratio and the direction for specific financial systems, which was released to the media in Abuja.

    The assessment highlights considerable room for further improvement in key areas, ranging from financial inclusion to pensions and protection.

    The report said: “This can’t be said about the other African country in PwC’s assessment. Not only has Nigeria by far the highest percentage of its population living in poverty, its financial system is also showing the least progress of all seven emerging markets.

    “In five of the eight key areas, Nigeria’s financial system scores significantly below PwC’s fit-for-purpose targets, holding back inclusive and sustainable growth. However, the success of Nigeria’s auto-enrolment pension model is a bright spot.”

    The report however said Nigeria and six others have performed well on private sector lending.

    It added: “In the PwC research, all seven emerging markets perform well on private sector lending, which is known to drive growth.

    “With the exception of Brazil, the banking spread (difference between bank lending and deposit rates) in the emerging markets is low, improving borrowers’ ability to service debt.

    “Another key area in which most of the seven emerging markets do reasonably well is controlling the size of their banking system. Only the size of China’s banking sector – compared to its economy – could raise systemic concerns.”

    PWC asked all the seven emerging markets to improve their financial system

    It said:  “The lack of an efficient and resilient financial system is still holding back inclusive and sustainable growth in emerging markets. Policymakers, regulators and financial services organizations should more actively shape a financial system that is fit for purpose.

    “While growth in emerging markets continues to outstrip developed counterparts and hundreds of millions of people have been lifted out of poverty, developing a well-functioning financial system remains critical to tackling poverty and sustaining economic growth over the long term. “Emerging markets need a robust and broad-based financial infrastructure to channel funds efficiently, draw people into the market economy and enable them to share in the benefits.”

    But the report said China and Indonesia are underperforming in a number of key areas.

    It said: “Compared to the other emerging economies, China has the biggest difficulties with its pension asset management and the size of its banking system.

    “China’s banks are facing a troubling collision of swelling balance sheets, high corporate debt levels and a rise in insolvency and default.

    “Indonesia seems particularly off track when it comes to financial inclusion and a well-functioning housing sector.”

    On  South Africa, PWC said: “Although poverty reduction has stalled in recent years and it has the worst income inequality of all seven emerging economies, South Africa is showing the most progress towards a fit-for-purpose financial system.

    “ Four of the eight key areas for a healthy financial system are already supporting inclusive and sustainable growth, and while more work is needed – for instance on the high levels of indebtedness – the country is moving in the right direction in the other four areas.”

    The report faulted India’s pension asset management and life insurance penetration as below healthy targets.

    “Strong innovation coupled with regulatory support is proving to be a boon for financial inclusion in India, with the Indian payments industry standing out from its emerging market counterparts by driving above-average growth in non-cash payments.

    “However, the country’s pension asset management and life insurance penetration are both significantly below healthy targets,” it added.

    But the report rated Brazil’s financial system as vulnerable.

    It said: “Brazil’s household debt and comparatively high banking spread make its financial system vulnerable. But policymakers are actively working to reduce its banking spread. Another positive sign is the country’s use of electronic payments, opening up access to financial services for under-served communities.

    “Mexico’s banking spread is already low, while it’s also actively promoting e-payments to accelerate economic development. However, it has more work to do on financial inclusion and life insurance penetration.”

  • PwC’s global gross revenues hit $35.9b

    Price Waterhouse Coopers (PwC) International Ltd has reported global gross revenues of $35.9 billion for the fiscal year ended June 30, 2016. The firm said at constant exchange rates (local currency), its total global revenues rose by over seven per cent.

    Pricewaterhouse Coopers (PwC) International Ltd Chairman, Bob Moritz, said the revenue growth was as a result of the strength of its brand, the opportunities it provides for its people, the quality of services and its focus on meeting the needs of stakeholders.

    Noting that these attributes remain at the heart of PwC and how it measures its success, Moritz said, “Our revenue growth in fiscal year 2016 across all major markets and businesses is testament to our fundamental purpose of building trust and solving problems.”

    He said that to secure future growth, PwC was investing heavily in technology to enhance the quality and impact of its services and make the best use of the skills of its people. “The world is changing rapidly and we are planning for the services our clients, capital markets and other stakeholders will need tomorrow, as well as serving their needs today,” he said.

    Moritz said whether it’s the tax and audit services of the future, transformational consulting, block chain or augmented reality, the firm was implementing a strategy to meet the long-term needs of its stakeholders and the career aspirations of its people.

    “This is an era of unprecedented scrutiny and the public expects more from business today.  We are focused on how we can best serve not just the needs of our core stakeholders, but society at large.  This is reflected in our purpose, the culture we’re building right across our network and in the stories we tell in our annual review,” he stated.

    PwC’s fiscal year 2016 global annual review is an online digital experience that uses video, graphics and stories to show who the firm is, what it does, what it thinks and how it is doing.

    According to the report made available to The Nation, more revenue growth was coming from developing markets – particularly Asia where revenues grew by 10 per cent, with strong performances in India and China.

    In North America and the Caribbean, revenues grew by eight per cent boosted by a strong performance from the United States (US), the firm’s largest market in the world.   While in South and Central America, revenues were up nine per cent.

    In Western Europe growth was steady, up six per cent.  Central and Eastern Europe posted robust revenue growth of 10 per cent.

    Demand for PwC’s network’s audit and assurance businesses remained strong despite fierce competition and price pressure across the world.

    In the year under review, PwC’s $15.3 billion assurance business grew by six per cent.

    Broader assurance services such as Information Technology (IT), risk and data assurance are all areas where PwC is driving innovation and increasing investment.

    Advisory growth of eight per cent to $11.5 billion was driven by an increased demand from clients for PwC’s network strategy through execution services and by excellent growth across a broad range of consulting, forensics and deals-related work.

    In particular, cyber security, digital and data & analytics services benefitted from the company’s significant recent investments.

    The strong market for deals positively impacted its network’s tax operations, with revenues increasing by seven per cent to $9.1 billion.  In addition, there was continuing strong demand for compliance, corporate consulting and transfer pricing work globally.

    Moritz, however, said quality continues to be the driving force of all PwC’s operations around the world.  He said 2016 alone, $500 million was invested to further enhance the quality and delivery of its services as the company continues to focus rigorously on meeting the needs of its stakeholders.

    He added that the PwC network welcomed a record level of new joiners, adding 58,081 people in 2016, including 26,780 graduates. Overall PwC’s global headcount grew by over seven per cent to more than 223,000 people.

  • LASU VC’s remark at closing of ‘Ready-Set-Work’

    LASU VC’s remark at closing of ‘Ready-Set-Work’

    Ready-Set-Work is an initiative of Lagos state Government to address employability and employment challenges facing today’s graduates while empowering them with the right skills and knowledge that will make them Valuable in the market place for final year students of Lagos State Government owned institutions across all campuses.

    The Governor of Lagos State Akinwumni Ambode allocated N15.5 million seed funding for those with the best business ideas among provision for internship slots in top  organization like Total, System Specs, Guaranteed Trust Bank, Access bank, FCMB and Jobberman who will all be on ground to select students for their respective organizations.

    The 13 weeks programme started its general module session from June 18 – July 9 which there after the classes where divided into the Employability and Entrepreneurial module which lasted from July 16 – August 27, after which students of both classes where told to compete for a chance to be among those who will be picked for the internship slots of 6 months and prize money of N1 million plus 600 thousand naira for 6 months for the person with the best business idea and 500 thousand plus 100 thousand naira for 6 months, 250 thousand plus 100 thousand naira for 6 months to the 2nd and 3rd  person, respectively.

    Lagos state university vice chancellor, Olanrewaju Fagbohuin, special adviser to the Governor of Lagos state on Education, Commissioner Obafela Bank-Olemoh, commissioner for information and strategy, Mr. Steve Ayorinde, Commissioner for Wealth creation, Mr. Babatunde Durosinmi-Etti, Energy and Mineral Resources, Mr. Olawale Oluwo. Also on seat are the Senior County Manager for PWC, Mr. Uyi Akpata, the founder and CEO of system Specs, Mr. John Obaro, Managing director of Etisalat, Mr. Mathew Willsher among others, were all present to witness the pitch and interview sessions of the programme.

    In his remarks, the Vice Chancellor of LASU, appreciated the effort of those who made the programme a success, the likes of the Lasu engineering and technical department team who ensued all were in place for the duration of the programme, the lecturers who left their home every weekend to support the programme and even the security men and the school cleaners were not left out.

    The top 3 Business ideas as well as those who have been selected to internship positions, by the partner organizations will be announced at the Ready-Set-Work RSW Graduation ceremony slated for Thursday, September 15, 2016 at landmark Center, Victoria Island.

  • UK, PwC to boost trade with Nigeria post-Brexit

    To boost trade between the United Kingdom (UK) and Nigeria, the UK Foreign and Commonwealth Office and Pricewaterhouse Coopers (PwC) have launched a report titled: “Seizing the Opportunity: An Economic Assessment of Key Sectors of Opportunity for UK Business in Nigeria”.

    The launch, which was held along with a roundtable discussion at the PwC Nigeria’s office in Lagos, recently, provided opportunity for UK and Nigerian business leaders and the UK Trade and Investment team to interact.

    The report, produced by PwC on the request of the Foreign and Commonwealth Office, highlighted the opportunities that exist in Nigeria for UK businesses and provided guidance for trade and investment in Nigeria.

    In the context of BREXIT – the UK’s recent vote to leave European Union (EU) – the UK Trade Envoy to Nigeria, John Howell, described the report as useful in the UK’s bid to strengthen trade relations with Nigeria and other countries.

    While speaking with journalists at the event, Howell said BREXIT will not reduce the UK’s trade relations with Nigeria, but would rather increase its importance.

    He said: “I don’t think BREXIT will change the trade relationship with Nigeria. I think you’ve got to remember that my appointment as the Prime Minister’s trade envoy pre-dates BREXIT and it shows how important the relation between Nigeria and Britain was even then. So, all BREXIT has done is that it has increased the importance of that relationship. Britain is open for business. It may have left the EU, but it hasn’t left Europe.”

    Howell also said the report was very useful in that it highlighted so much about how trade is done between Nigeria and Britain and it also highlighted the opportunities that are there for the future. “I shall certainly be using it when I get back home to encourage companies to come out and-take advantage of the opportunities,” Howell said.

    The UK Trade Envoy added that he was determined to ensure that the UK becomes Nigeria’s number one trade partner by talking to both British companies and companies in Nigeria about how they can do more business together and making them aware of the opportunities highlighted in the report.

    He also noted that the floating of the naira has made it a lot easier to do business with Nigeria.

    The PwC’s Country Senior Partner, Uyi Akpata, who presented the report, said despite the current state of Nigeria’s economy, its scale, the country’s resource wealth and its strategic geographical location make it favourable for UK exporters and investors.

    Akpata said: “UK businesses are well placed to succeed in Nigeria because of its familiar legal system, strong ties through the Diaspora community, same lingua franca and the perception that UK brands offer high quality.

    “Unfortunately, the UK’s importance in Nigeria has been sliding. Since 2000, the UK has fallen from first to become only the fifth largest non-oil goods exporter to Nigeria behind China, US, India and Germany in 2014. Similarly, the UK’s share of the Foreign Direct Investment (FDI) stock in Nigeria has decreased from close to seven per cent to less than two per cent between 2005 and 2014.”

    He added that the UK’s non-oil export and FDI in Nigeria could increase significantly depending on if the Nigerian Government will progress on reforms and enactment of policies on trade openness and also if the UK government will facilitate better cooperation between the two countries.

    The report identified six goods and services exports that will offer UK businesses the greatest potential for growth. These include, machinery and transport equipment; manufactured goods; chemical and related products; telecommunication and information services; transportation and travel; and intellectual property.

    It also identified three sectors that will provide the most promising FDI opportunities for UK businesses. They are technology, media and telecommunication; retail and consumer products; and business and financial services.

  • Govt needs review of approach to energy access, says PwC

    Govt needs review of approach to energy access, says PwC

    The time is right for policymakers to reappraise their approach to accessing energy, a report from PricewaterhouseCooper (PwC) has advised.

    The report said going by the trends, two-thirds of the world’s population will be without electricity by 2030, which is the target year to achieve the newly agreed post-2015 UN Sustainable Development Goal of universal access to energy.

    The PwC report titled: “Electricity beyond the grid: accelerating access to sustainable power for all”, said a new approach that better recognises the part that off-grid technology can play is needed.

    Partner and leader, Power & Utilities unit of PwC Nigeria, Pedro Omontuemhen, said: “For the millions of people, who do not currently have access to electricity, the old assumption that they will have to wait for grid extensions is being turned on its head by new technological possibilities. There are currently 634 million people without electricity in Africa and in Nigeria. We estimate that only one in five persons has access to power from the electricity grid.  This leaves four in five people living in urban and rural communities, having to fend for themselves with makeshift and localised power solutions. Faster progress is needed, and we believe it can be achieved if national energy policies adopt a more comprehensive approach to energy access, embracing the new starting points for energy provided by stand alone renewable technology and mini-grids.”

    Current electrification strategies tend to focus on national grid extension plan, but Olumide Adeosun, Associate Director in the firm’s advisory practice, said: “It is critical that Nigerians take steps to understand and embrace the new starting points for energy provided by stand-alone renewable technology and mini-grids as discussed in this report. We believe these solutions provide a viable, bottom-up solution to the patchy availability of electricity in Nigeria.

    Some of the enablers, such as mature mobile payment platforms and data analytics capabilities are already in place.  Others will require investors and communities engaging policy makers to formulate an integrated energy access strategy, work together in their communities to accelerate momentum in the electrification of Nigeria’s urban and semi-rural locations.”

    The report foresees a major transformation of the electricity sector in the period ahead and sets out five recommendations for accelerating the increase of electrification. One of them is to develop an integrated energy access plan and map – so that everyone can plan with more certainty for either off-grid or grid extension solutions.

    Another is to create an enabling environment for off-grid development – including clearer criteria for mini-grid development, support for skills and training and more supportive regulation to allow private players to unlock the off-grid market potential.

    There is also the need, according to the report, to recognise the value of and promote the growth of mobile infrastructure, microloans and payment solutions in supporting energy access – mobile infrastructure is proving crucial in the take-up of stand-alone home systems, giving providers a low-cost channel for customer relations and an ability to automatically manage non-payment.

    Establishing an off-grid innovation and development fund – a highly visible development and innovation fund, the report said, can play an important part in spurring off-grid growth in each country.

    Also, having a high-level energy access champion that can drive results – to cut through bottlenecks and monitor results.