The Federal Government has assured tomato producers of robust policy to boost local production and stop the importation of tomato paste and create local jobs.
The production of tomato is in line with the on-going economic diversification effort of the government.
The Minister of Industry, Trade and Investment, Okechukwu Enalema who spoke during a facility tour of GB Foods Nigeria, and tomato backward integration project in Kaduna, said the policy is to significantly reduce post-harvest losses of tomato fruits, boost production and attract investment into the entire value chain.
He said the implementation of the policy will also open investment in green house farming and address some challenges faced by tomato farmers in the country.
He said: “The visit to the tomato factory is useful and has reinforced my belief that bigger things can be done in this great country. I like what I saw and I am highly impressed.
“Gino Tomato backward integration project operates on the tomato production value chain from seedling growing, planting, harvesting and production of tomato paste on the farm.”
The world is embracing innovations; innovations rooted in knowledge and critical thinking. On this score, the National Agency for Food, Drug Administration and Control (NAFDAC], by dint of good leadership, is not lagging behind in this global drive. It has not only continued to buy into the latest inventions in its mission to safeguard the public health of Nigerians, it is also playing a star role in imparting knowledge to young Nigerians pursuing related professional and academic programmes in the nation’s institutions of higher learning by putting at their disposal its state-of-the-art laboratories for both the compulsory Supervised Industrial Work Experience (SIWES) and internships.
As a technology driven agency, NAFDAC has seven hi-tech laboratories equipped strategically spread across the nation’s six geopolitical zones. Each of the seven major facilities houses laboratories for different purposes. There is a Cosmetic Laboratory for testing baby powder, toilet soap, creams etc; Food Registration Laboratory with fume chamber for analysing fumes from organic solvents; Food Compliance Laboratory with Ion Exchange Chromatography (IEC); Medical Devices Laboratory for testing condoms, syringes, hand gloves, diapers etc; Farm Control Laboratory; Instrument Laboratory; Pharmaci-Chemical Laboratory for analysing herbal products; Pharmaceutical Control Laboratory; Pharmacognocy Laboratory; Microbiology Laboratory; Pesticide Formulation Laboratory for checking the kind of pesticide used on food and analysing the fertiliser farmers use; Water Laboratory; Alcoholic Beverage Laboratory etc. The biggest of the laboratories is the Zonal Laboratory in Agulu, Anambra State, which was commissioned on October 15, 2010 by former President Goodluck Jonathan. The spacious facility has 10 different laboratories. All the laboratories have well trained personnel to make them work efficiently.
Five of these facilities have got international accreditation, mainly from the USA. They include the Mycotoxin and Pesticide Residues laboratories located at Oshodi in Lagos; and the Central Drug Control Laboratory in Yaba, Lagos. The other two are Food Compliance Laboratory with Ion Exchange Chromatography (IEC and High Performance Liquid Chromatography Laboratory (HPLC) located within Oshodi used for analyzing vitamins.
The Mycotoxin and Pesticide Residues laboratories were accredited by the American Association of Laboratory Accreditation in November 2013, when they obtained the ISO 17025 certification. Again in January, the United State Agency for International Development (USAID) and US Pharmacopeial Convention (USP) presented an international accreditation known as ISO/IEC 17025: 2005 to the Central Drug Control Laboratory, Yaba for quality monitoring of pharmaceutical products in Nigeria.
The accreditation project, which was supervised by United Nations Industrial Development (UNIDO), helped launched the two laboratories into the league of internationally recognized and respected laboratories, a development that has given global acceptance to NAFDAC-regulated products, tested and certified. What this means in simple terms is that all products analyzed for export purposes by the two laboratories would carry a special ISO logo, thus making the commodities accepted all over the world.
Again in January, the United State Agency for International Development (USAID) and US Pharmacopeial Convention (USP) presented an international accreditation known as ISO/IEC 17025: 2005 to the Yaba, Lagos Central Drug Control Laboratory of NAFDAC for quality monitoring of pharmaceutical products in Nigeria. It is the first government-owned laboratory to attain such accreditation, which gives it the capacity to test both locally manufactured and imported pharmaceutical products. During presentation of the certificate in Lagos by Mission Director, USAID Nigeria, Michael Harvey, he described the accreditation as one critical milestone that re-established Nigeria as original super producers and distributors of pharmaceutical products.
What is quite revealing here is that the regulatory agency is well placed to take up the responsibility of mentoring the critical manpower needed in food and drug administration and control in Nigeria. The agency’s modern facilities have become very handy for a nation bereft of the needed facilities in its higher institutions of learning. We have Dr. Paul Orhii to thank for his foresight and innovativeness. Under his watch, NAFDAC spearheaded global efforts in the use of technologies to fight counterfeiting. For this, TRUSCAN, Mobile Authentication Service (MAS) and Radio Frequency Identification etc, were introduced and deployed in the fight against counterfeit drugs in the country. Now, he is directing his energy to giving relevant knowledge to our teeming population of students in laboratory science, medical and pharmaceutical sciences, and even biological and micro biological sciences that will drive the processes needed to make Nigeria Africa’s hub for food and drug production and distribution.
Interestingly, the authorities of the nation’s participating higher institutions have attested to the value-added to knowledge of the students during their industrial trainings at the agency’s facilities. They described the knowledge as priceless. They also reported the students exhibited remarkable improvement in their understanding of practical laboratory analyses, which invariably are typical of science-oriented disciplines where commitment, interest, suitable research environment as well as modernized facilities are required to bring about the necessary impressive results.
NAFDAC’s Deputy Director in NAFDAC and Head of the agency’s South-East zonal laboratories in Agulu, Charles Nwachukwu, disclosed while playing host to a team of media executives recently, that the agency’s new role was consistent with the sustainability policy of the his boss, Orhii, who he said had shown remarkable zeal in not only sustaining the legacies of his predecessors, but also building on them to assure its continuing relevance to the nation.
He maintained that the agency’s current leadership zeal for sustainability had kept its workforce happy and productive, adding that the staff were happy to be part of the lofty process of safeguarding the health of the nation. For Nwachukwu, in NAFDAC “there is no Nigerian factor, we are business-minded, we have our goals and the agency’s leadership is bent on achieving these goals. Indeed, these laboratories, built and located across the country have certainly become a beehive of activities”.
There is no doubt that the training and education the students have received will make them more ready to face the challenges of future working life and make them more confident in themselves. There is no doubt the nation would be better for it.
I dare say NAFDAC’s inputs into Nigeria’s socio-economic and industrial advancement cannot be underestimated. Science, they say, is the bedrock of modern society. For NAFDAC to be living up to expectations in training the present and future manpower in the area of food and drug administration and control, Nigeria’s continuing economic diversification and growth are assured.More importantly, NAFDAC is saving for the nation its hard earned foreign currencies that could have gone into overseas training for our youth students.
With the enactment of the Administration of Criminal Justice (ACJ) Act 2015, many believe the delays in dispensation of justice, especially in criminal cases, will be reduced. President Muhammadu Buhari and Vice-President Yemi Osinbanjo (SAN) have spoken on the need for more reforms. Lawyers have identified other areas that need transformation, reports Precious Igbonwelundu.
Since assuming office, President Muhammadu Buhari has repeatedly emphasised the need for judicial reforms that will aid his administration’s anti-corruption war as well as strengthen democratic governance.
The Administration of Criminal Justice Act of 2015 has addressed some problems, such as staying proceedings pending appeal, and cases starting de novo when judges are elevated to the Court ofAppeal.
Still, lawyers believe there are other areas that need reforms.
These include ensuring financial independence for the judiciary, insulating it from political manipulation, reviewing the processes of appointment and removal of judges; addressing institutional limitations and incapacities, as well as ridding the judiciary of corruption.
Speaking on areas that need reforms, a Supreme Court Justice, Kudirat Kekere-Ekun, called for an amendment of the Constitution so that some cases can terminate at the Court of Appeal.
This, in addition to more deployment of Information and Communication Technology (ICT), she said, would reduce the Supreme Court’s workload.
Justice Kekere-Ekun backed suggestions that some cases terminate at the Court of Appeal, adding that a review of the constitutional provisions governing the jurisdiction of the Supreme Court is necessary.
“I am in full support of certain classes of cases terminating at the Court of Appeal. In my humble view, the amendment of the 1999 Constitution has added to the burden of the Supreme Court.
“It made the Supreme Court the final court of appeal in respect of decisions arising from Governorship election tribunals.
“Such appeals, by virtue of Section 285 (7) of the 1999 Constitution (as amended) must be concluded within 60 days from the date of the delivery of the judgment of the Court of Appeal,” she said.
She said the provision has led to an influx of appeals and has also affected other cases pending before the court, which are already overdue for hearing, but which had to be set aside while election related appeals are heard and determined expediently.
She also called for the use of more technology in court processes.
She said: “The global village is moving at a faster pace, the apex court of the most populous nation in Africa cannot be left behind. We must embrace information technology and take advantage of all that it offers along with alternative dispute resolution mechanisms, where possible.
“A reduction of the inflow of cases and more efficient management of the court’s docket will allow the justices to devote more of their time and resources to research, study, reading, consultations among themselves for the advancement and administration of justice.”
Justice Kekere-Ekun
Justice Kekere-Ekun said for the Supreme Court to discharge its role effectively, the adoption of Information technology will allow for easy sharing of information.
She said it would also help to create a database for decided cases by all the courts and which will also be accessible by judicial officers anywhere.
In addition, she said ICT will facilitate communication between the justices, the registry and other administrative staff. According to her, the project is capital intensive and requires political will, purposeful leadership, and the commitment of substantial resources.
“It also requires training for the justices and upgrading the knowledge and skills of courts staff to enable them effectively manage the facilities.The leadership of the court is fully committed to this transformation.
“The role of the Supreme Court today should primarily be that of development of legal policy and to discharge the role effectively, its current docket has to be greatly reduced,” she said.
Worried by these challenges bedeviling the system, a former Chief Justice of Nigeria (CJN), Justice Dahiru Musdapha, during one of his presentations at the Nigerian Institute of Advanced Legal Studies (NIALS), enjoined the Judicial Reform Committee as well as other bodies which have been empanelled, to explore how best to fortify the independence of the judiciary, and insulate Judges from political manipulation.
Justice Musdapha considered several issues, such as Should serving Judges should continue to undertake ad hoc assignments, such as election petition cases? What are its implications for delays in handling regular cases? Will such assignments will make them vulnerable to corrupt practices?
He said: “Sadly, the judiciary in several states still goes cap in hand to the executive for funds. By section 162(9) of the Constitution, any amount standing to the credit of the judiciary in the Federation Account is paid directly to the National Judicial Council (NJC) for disbursement to the heads of Superior Courts, including those at the state level.
“However, a significant part of the funding requirements of state judiciaries, especially in the area of the provision of infrastructure and welfare of Magistrates and other lower court Judges, remain the responsibilities of states.
“The plight of the state judiciaries is compounded by the fact that, in spite of the best efforts of the NJC, the processes of appointment and removal of judges/security of tenure is the subject of political theatrics.
“Delay in the dispensation of justice remains a major challenge due, in large measure, to institutional incapacities in the area of infrastructure (especially e-infrastructure), inbuilt delay mechanisms in the law, as well as failings on the part of some Judges, the official and private Bars, law enforcement agencies, litigants and witnesses.
“The sobering reality is that if court backlogs grow at their present rate, our children may not be able to bring a lawsuit to a conclusion within their lifetime. Legal claims might then be willed on, generation to generation like hillbilly funds; and the burden of pressing them would be contracted like a hereditary disease.”
The needed reforms
A Senior Advocate of Nigeria and Queens Counsel (QC), Mr Oba Nsugbe, said the secrecy surrounding judges appointments must be stopped.
“We need to make greater efforts to completely demystify the system of judicial appointments in Nigeria from beginning to end,” he said.
Nsugbe said he once sought to know how to go about applying to be a judge in Nigeria, and to learn about upcoming vacancies, criteria for appointment and the process, but came up with no reliable information.
He interrogated various official websites for answers, read a number of publications, and spoke to people in the judiciary, and still got no useful information on how to be a judge.
His words: “The answers never seemed complete or exhaustive. This needs to change. In so important an area, you can never have enough clear, systematic information about what each and every stage entails – exactly what is needed of the applicant, when, who will assess it; how it will be assessed; who will be spoken to; against what criteria, etc. There needs to be more transparency about the appointments procedure. The lack of it acts as a disincentive to many aspiring judges,” he said.
A judge of the Delta State High Court, Justice Roli Harriman, in paper, said only a few states, such as Lagos, has any form of electronic recording of proceedings.
Majority of courts, she said, still use archaic equipment and judges write longhand, which is later reproduced by typists. “The use of longhand and typewriters obviously tend to delay justice,” she said.
Another factor, the judge said, is that little use is made of software designed for case management and legal research. This lack of tools leads to judges adjourning till further dates rulings they could otherwise have delivered immediately. “Apart from a few states, the acquisition of this software is not on the priority list of governments,” Justice Harriman said.
Delays, the judge added, even start from the filing process. “I am hoping a time would come when e-filing will take centre stage in the judiciary, a time when lawyers can, with a registered access code, file their processes and make payments online,” she said. Besides, it will not be out of place if court registries accept Point of Sale (POS) payments.
Lack of courtroom technology, such as video conferencing, is also a challenge. In criminal cases, a greater number of adjournments are due to investigating police officers being transferred to other locations or being sent on other assignments. Some witnesses are also reluctance to come to court. “If their evidence can be taken through video conferencing, then this would eliminate the delay,” Justice Harriman said.
The physical state of some courts also does not help speedier justice delivery. Some courts do not have air conditioning, and some courtrooms are like cubicles.
While stating his agenda for judicial reforms, Musdapha noted that it was imperative to explore ways to strengthen the provisions of laws and regulations, as well as the mechanisms for their enforcement.
He suggested that the Code of Conduct for Judicial Officers should expressly forbid Judges from giving extra-judicial advice to other branches of government, just as he stated that only paragons of integrity, the best and the brightest be appointed to the bench and elevated.
The former CJN envisioned a judicial system that is simple, fast, efficient and responsive to the needs and yearnings of the citizenry, which can be actualised by full computerisation of operations.
He suggested the amendment of Section 233(2) of the Constitution to compulsorily require leave of the Supreme Court before an appeal may lie from decisions of the Court of Appeal.
“This will engender a filtering mechanism that ensures that frivolous appeals do not continue to clog our cause list and thereby cause undue delays and backlogs.
“Again, on the appointment of Judges, we are also of the respectful view that there is considerable merit in the call to diversify the pool from which judicial appointments to superior courts are made.
“We are concerned by the declining intellectual depth and overall quality of the judgments of some of our Judges as well as the frequency with which some Judges churn out conflicting decisions in respect of the same set of facts.
‘’A wider diversity of experience will undoubtedly add quality to judicial deliberation in our courts.
“We must, therefore, embark upon reforms that address not only the present problems but also rollout the infrastructure that would enable us cope with foreseeable future challenges,” he said.
However, on the Criminal Justice System, some of the suggestions the former CJN made have been included in the recently amended Administration of Criminal Justice Act.
Lawyers’ views
That notwithstanding, lawyers believe more reforms are needed in order for the judiciary to efficiently carry out its functions.
They argue that concerted efforts must be made towards decongesting the prisons and ensuring faster proceedings.
• Adekoya
Renowned legal practitioner, Mrs. Funke Adekoya (SAN), said the government needs to focus on the investigative and prosecutorial areas of the Criminal Justice System.
She said: “On a practical note, the police needs to be properly equipped with resources and trained such that they can concentrate on investigating crimes before arrests are made, rather than after.
“Proper investigation will decrease the number of Awaiting Trial Detainees, some of whom are incarcerated because they have been unable to make bail while the police are still conducting investigations.
“The police should be trained in finger printing collection and analysis. All the biometrics collected from Nigerians through the BVN exercise and the collection of passports and drivers’ licences should be centralised and the police should access it to trace criminals.
“This will further decrease the time before arrest, and between arrest and trial.
“Only lawyers, trained in the art of prosecution should be allowed to handle criminal cases, and States that have not amended their laws in line with the Administration of the Criminal Justice Act, should be encouraged to do so.
“Lawyers in the Ministry of Justice need to be trained to enable them handle the various types of prosecutions which are now a feature of our criminal justice system, rather than farming out briefs to private prosecutors.
“The government also needs to review the jurisdiction of the courts. Too many frivolous matters are reaching the Supreme Court, such that the Judges are overburdened with issues that are not ‘cutting edge’.
“The Constitution needs to be amended such that all matters except death penalty judgments should require leave from the Supreme Court before they can be appealed to that court.
“Regular appellate jurisdiction should end at the Court of Appeal. The grant of leave should be based on public interest considerations [conflicting decisions of lower courts, constitutional issues, impact on legislation etc.”
Constituional lawyer, Fred Agbaje, said emphasis should be placed on prison reforms as well as fast track in hearing and determination of criminal matters.
He suggested that custodial sentencing for convicted persons should be deemphasised, just as he explained that convicts of lesser crimes, instead of outright jail, be given social punishment such as “sweeping Ikorodu Road for two weeks during the day under the supervision of a social worker or pay a fine!”
He noted the need for a review of stringent requirements a surety must meet to stand bail for an accused, such as the demand for land certificates in Ikoyi, Lekki, Ikeja GRA to be produced by civil servants from grade seven and above.
Agbaje said no accused person should be arraigned without the prosecution witnesses in court and failure by the prosecution to conduct and conclude the case after a stated number of adjournments, should warrant it being struck out.
He also suggested the need for reduction of appeals on interlocutory decisions through the constitution.
The Chairman, National Human Rights Commission (NHRC), Prof. Chidi Odinkalu, believes there is a need to be make the judici
•Prof. Odinkalu
ary more accountable in appointment of judicial officers, as well as in jurisprudence.
“In the last quarter of a century, the judiciary has become a sinecure, part of the retinue of patronage in public life.
“Almost invariably, the path to judicial office now begins in the civil service and appointment to the Bench is increasingly viewed as part of the promotion structure in the civil service significantly dis-entangled from any rigorous considerations of integrity, professionalism, merit, values and temperament.
“The resulting narrowness of pool of judicial skills and intellect reflects in the quality of both organisation and some of the jurisprudence that comes out of courts and imbues our judicial system with a structural flaw that can only be addressed through structural intervention. The time is ripe for this,” he said.
The Department of Petroleum Resources (DPR) has said the gas sector needs robust and appropriate policy framework to enable the country harness the opportunities and benefits in its abundant gas resource.
Its Deputy Director, Gas Monitoring and Regulation, Mr. Antigha Ekaluo who spoke in Lagos yesterday at the 2015 Business Forum and Annual General Meeting of the Nigeria Gas Association (NGA) said only a good policy could move the sector forward . The theme of this year’s Business Forum is Harnessing and monetising the potential of stranded gas fields.
Ekaluo said effective gas sector policy will give Nigeria the ability to harness opportunities in the sector and will afford the country the opportunity to enjoy maximum value from its stranded gas resources. Nigeria, he said, is endowed with abundant gas resources and the sector holds huge potentials for unprecedented growth.
He said: “The existing legal and regulatory framework, written primarily for oil does not provide robust technical and commercial framework for gas. There is therefore the need to pass the Petroleum Industry Bill (PIB) into law, which will underpin the ongoing sector reforms.
The gas sector policies will provide Nigeria with the opportunity to harness and get maximum value from its stranded gas resources.”
He said effective gas sector development remains a strong catalyst for growth of the economy. Besides, such growth will also have a multiplier effect on the Nigerian economy, he added.
In harnessing and monetising stranded gas, Ekaluo said there is need to adopt new technologies, adding that government should also deepen market penetration, sustain demand growth and also vigorously pursue the completion of gas gathering and utilisation projects. He said there is urgent need to address gaps in regulatory and commercial frameworks across the gas value chain.
The Chairman, Society of Petroleum Engineering (SPE), Nigeria Council, Mr. Emeka Ene said to achieve effective strategy for monetising stranded gas, there is need to identify and secure country’s closest markets and develop an integrated flare-out model.
The Managing Director, Frontier Oil Limited, Dada Thomas has advised the Federal Government to substantially grow the nation’s Sovereign Wealth Fund (SWF) to cushion the effects future oil price falls.
He told The Nation that other countries resort to drawing from such funds in times of oil price slump, adding that when oil price goes up again, the drawn funds are replaced. He lamented that it is not the case with the country.
He also lamented that Nigeria grossly underutilises her gas resource.
He cited some countries that turned their economic woes to fortunes through prudent use of their SWF and efficient exploitation of their gas resources. He noted that Nigeria should follow suit by growing its SWF and optimise the utilisation of its abundant gas resource.
He said: “I worked in Holland for five years and I helped develop some of the country’s gas resources. Holland was poor after the war but now look at the quality of life of the 14-15 million Dutch people. They generate more wealth than the 170 million Nigerians. They have taken the gas resources and turned it into wealth generating asset. The Norwegians have $800 billion sovereign wealth. They were lucky they were producing good oil at good prices for a long time.
“I don’t think their population is more than Lagos State but they decided not just to provide for today but also for tomorrow. So are the Saudis, and that is the reason they said they have the capacity to sustain the oil price war with the United States for eight years. But as a nation, we instituted $2 billion SWF in the last couple of years and now I think it has been reduced to about $500 million.
“Government needs to create framework and platform for encouraging people to invest in gas development in Nigeria especially for domestic consumption. We domesticate the use of the gas to power up Nigeria, to improve the economy and the quality of life of all of us. “How can we be sitting on 182 trillion cubic feet of gas and we don’t have power? “How can we be sitting on about 33 billion barrels of oil reserves, the seventh largest exporter of crude oil and yet we import refined products and we have four refineries? “We need to sit down as a nation and re-examine ourselves as to where we are, where we ought to be, and how we need to get there. As a nation, we will lose many things if the right policy decisions are not made to ensure a long term sustainable energy future. Gas is the key to unlocking Nigeria’s potentials economically, socially and quality of life of everybody.”
Thomas said there is a lot that needed to be done about the exploration and production (E&P) space especially on the gas side. “I started off thinking ahead of a project that is oil but it turned out to be gas. Thank God we didn’t give up. We also linked up with a partner that is not averse to gas business and together we created a brand new gas value chain in the southeast Nigeria where we are taking gas and turning it into power. Ibom Power in Akwa Ibom as it is today is being powered by gas from Frontier Uquo field.
Oyo State Social Democratic Party (SDP) governorship candidate Seyi Makinde has said he will create a robust economy in the state, if voted into office.
The SDP candidate identified non-patronage of local contractors and irregular payment of workers salaries as factors contributing to the poverty afflicting the people.
Makinde said: “It is when those people affected get their money and patronise local markets that money can circulate.
“But, unfortunately, what we have in the state today is contrary. Contractors are not based in Oyo State and they take our money to Lagos State where they are based. Workers are not regularly paid and they lack purchasing power to go to the markets, hence the low sales being recorded by our market men and women.”
The SDP candidate spoke in Ibadan at the weekend during his market campaign led by the party state chairman, Sunday Adelaja and which took the team to Orita-Merin, Agbeni and Ogunpa markets.
Makinde, who alighted from his vehicle at Orita-Merin Market square and trekked to Agbeni Market, stopping along the way to greet the people.
He said the SDP administration under his leadership would ensure that the state-based contractors would be engaged to halt capital flight and that workers’ salaries would be paid on time.
The Babaloja of Orita-Merin, Rasheed Oloola, praised the governorship candidate for his vision and focus, recalling that his good works had preceded him and would go a long way in bringing him victory.
Nigeria’s retail market is evolving. The Retail Council of Nigeria (RCN) is making efforts to formalise the market and make it safe to enhance Nigerians’ shopping experience in line with international best practices, reports TONIA ‘DIYAN.
Organised retail business has come to stay. The hitherto unorganised method of retailing is fast becoming more structured. Before the advent of the Retail Council of Nigeria (RCN), it was difficult to record and track transactions and investment in infrastructure. Retail business in Nigeria is steadily moving to an organised platform thatpromises a major turnaround in the fortunes of operators. Much of that turnaround in the industry, which compfises supermarkets, department stores, stand-alone stores, shopping malls/hypermarkets, Mom & Pop stores, street vendors, and the weekly markets, is driven by the council.
Since its debut in October last year, RCN has been working to ensure that retail business is done in compliance with international standard. Most countries have moved away from the open market system where there is no such process. In an organised retail market, there is audit of suppliers/manufacturers and customer service is high. Besides, investment in infrastructure is high with many windows of employment. There is availability of products and services in an organised retail, a feature which is usually restricted in an open market trade.
Also, the RCN’s intervention in evolving an organised retail business has since ensured that sourcing of raw materials and finished goods is through international and national sources with a complete regulation of products and services. Today, there is high compliance to standard specification of products and services and when it comes to quality check and assurance, it is always comprehensive with a complete information on products and services. Besides, counterfeiting is strictly controlled and monitored when a business is organised. By organising the retail business, RCN has helped improve the efficiencies of the value chain, reduce wastage, and increase revenue. This is unlike in the past when governments at all levels had challenges collecting taxes from the unorganised retail market.
The successes so far recorded by the Council were not by chance; they were products of well-thought out strategies aimed at repositioning the nation’s retail industry for efficient service delivery. At the launch of the Council in Abuja, last year, Asiwaju Onafowokan, a Member of Board of Trustees of RCN, explained that the body had the target of formulating, facilitating, and propagating retail business practices and processes in line with international best practices. This, he believes, would lead to increased consumption, boost in production, employment generation and ultimately, the growth of the economy.
Similarly, Haresh Keswani, another Member of Board of RCN, also said organised retail is related to economic growth. Hear him: “The United States and Britain have organised retail, which contributes over 80 per cent each to economic growth. In Japan and India, the organised retail market contributes about 66 per cent and 10 per cent to economic growth, respectively. But Nigeria receives only three per cent due to unorganised retail market.” He however, said that though Nigeria has the smallest percentage of retail, the Council aims at liaising and co-operating with the government and regulatory authorities for ease of implementation, training and operation in the retail industry.
Already, the organised retail strategy, The Nation Shopping learnt, is beginning to promote modern retailing in Nigeria and contribute to the Gross Domestic Product (GDP). It is facilitating the development of associated/allied sectors of the economy, providing a platform for networking as well as disseminating useful information and knowledge to members and the public to make them educated and be aware of what the entire system entails. The council said it is also creating a database of members and that it encourages members to adopt the right values, imbibe international best practices, wholesome practices and embrace good corporate governance in the conduct of their businesses.
In doing these, The Nation Shopping learnt that the Council is hoping to replicate in Nigeria the success of more organised and robust retail markets in more developed countries of the world where the platform is contributing to economic growth and development.For instance, experts say that organised retail contributes 27 per cent to the global GDP. Also, across the globe, retail employ 17.1 per cent of the workable population. In the US alone, organised retail market accounts for 14 per cent of employment, while 20 per cent of the US economy is said to be supported by retail.
Sectorally, the contributions of organised retail are also telling. For instance, it has impacted the finance sector, as banks are now interested in supporting the retail business. The belief is that when there is increase in organised retail, there will automatically be an increase in consumer spend and finance. An increase in organised retail brings about increase in capital investment and project finance. It also provides Small and Medium Enterprise (SME) finance through supply chain contracts with retailers.
The manufacturing sector is not left out. Organised retail increases the presence of brands in all categories. When new products and concepts are launched to test the markets, it leads to eventually setting up local manufacturing facilities in the country. In other words, the country’s manufacturing infrastructure improves as technology transfer is facilitated.
Much of the transformation in Nigeria’s retail industry is driven by the revolution in the Information and Communications Technology (ICT) industry. The ICT industry has emerged, arguably, the backbone of organised retail. The hardware and software aspect of the IT industry has since caused a boom in the retail business. Increase in telecoms and IT infrastructure has facilitated a cashless economy where people buy and sell without carrying cash.
The far-reaching impact of organised retail, experts say, is anchored on the fact that the retail market is not about shops only, but every company that has relationship with consumers, including banks, telecommunications, manufacturing, tourism and consultancy firms. This was why the Council is determined to create an improved platform for direct interaction with consumers. The Retail Council believes that one sure way to achieve this is by encouraging informal retailers to move to the next level and become formal.
RCN also operates an open membership system where issues are collectively tabled to the government and to various policy makers for improvement and positive changes. “Organized retail is helping people think big and start small; it is helping to develop the value chain in the system knowing that value chain entities are SME drivers,” says Kaymu.com boss, Massimiliano Spalazzi.
Governance can improve greatly if policy makers take into cognisance issues relating to security and health of women and children, Lagos State Commissioner for Economic Planning and Budget Ben Akabueze has said.
He said government at all levels should pay greater attention to reproductive health problems of the people which is a leading cause of ill-health and death in pregnant women.
Akabueze spoke at the commemoration of the World Population Day by the Lagos State Government held at the Public Service Staff Development Centre, Magodo on the theme: “A time to reflect on Population Trends & Related Issues”.
The commissioner who was represented by the permanent Secretary in the ministry, Mr. Bayo Sodade, said over 100 million women in the world today who are interested in spacing or limiting their pregnancies, lack knowledge of, or access to family planning.
Head , Lagos office , United Nations Population Fund (UNFPA) Dr.Omolaso Omosehin , in his paper titled “Investing in Young People” said healthy, educated, productive and fully engaged young people could help break the cycle of intergenerational poverty because they are and are more resilient facing societal challenges.
He advised on the importance of investing more in young girls noting that for millions of young people around the world, puberty brings not only changes to their bodies, but also new vulnerabilities to human rights abuses, particularly in the areas of sexuality, marriage and child bearing.
He regretted that millions of girls were coerced into unwanted sex or marriage, increasing the risks of unwanted pregnancies, unsafe abortions and sexually transmitted diseases, including HIV, as well as death or disability due to child birth.
With the average return of 35.4 per cent last year, investors look forward to continuing recovery of the stock market. But how far will the bullish run go? Taofik Salako speaks to investment experts on the outlook for the capital market in 2013
The stock market witnessed impressive recovery last year with average full-year return of 35.4 per cent. This implied accretion of some N2.44 trillion in capital gains to investors in 2012. The All Share Index (ASI), the common value-based index that tracks changes in prices of quoted companies, closed 2012 at 28,078.81 points as against its opening index of 20,730.63 points for the year.
Aggregate market capitalisation of all quoted equities also rose from its opening value of N6.533 trillion to close the year at N8.974 trillion, indicating capital gains of N2.441 trillion. Besides its primary importance as the benchmark index for the Nigerian Stock Exchange (NSE), the ASI doubles as the country index for Nigeria and rightly indicates the competitiveness of equity returns.
With equities within the best-return bracket of the global stock market returns for 2012, both Nigerian and foreign investors have their eyes on the market in the New Year. Will the stock market sustain its bullish run? Will equities still make double-digit returns in 2013 atop the 35.4 per cent in 2012? How will the secondary market performance impact on the dormant primary market? How will the balance of funds play out between the equities market and fixed-income market? What are the intervening variables that may mitigate market performance? These and many others are the concerns of the investing public.
The outlook suggests a robust performance for the stock market in 2013, although market pundits are divided on the extent of returns in the New Year. Across a broad spectrum of the investment management industry, market pundits and advisors appear to agree that the market would post positive return again this year. From FBN Capital to Sterling Capital Markets, GTI Securities, FSDH Securities and Investment One Financial Services (formerly GTB Asset Management Limited), among other leading investment services companies, previews show strong potential for continuation of the upswing.
But how far will the market go? A more optimistic view suggests stronger performance than 2012-above 35.4 per cent return. However, more cautious view implies good double-digit return but below 2012 return. Cautious conservative expectation appears to provide surer benchmark for return in 2013.
Analysts agree that market performance would be driven largely by improving fundamentals of quoted companies, especially in largely undervalued sectors such as banking and insurance sectors. There appears to be unanimity about the pole position of the banking sector as a major driver of the market in 2013. While consumer goods and other manufacturing stocks that have provided significant leverage for the market in recent years may need to provide further fundamental supports to create headroom for price appreciation, most analysts said investors would easily see the locked-in values in financial services companies given earnings guides for the year ended December 31, 2012.
But there are major red flags to watch out for: foreign dominance, negative counterbalance effect from global economic challenges especially from the United States and Greece-induced Eurozone and Nigeria’s macroeconomic stability.With foreign investors accounting for nearly two-thirds of turnover on the Nigerian Stock Exchange (NSE), slight or massive sales orders from foreign portfolio managers and investors-either due to profit-taking or deficit financing and rebalancing, will have corresponding effect on the market. But this could be mitigated by the expected changes in the pension funds investment guidelines, which are expected to increase portfolio allocation to equities. Increasing local participation from returns-lured investors may also provide some support, although the impact could be negligible in case of massive divestments by foreign investors.
Head, Equity Research FBN Capital Mr Olubunmi Asaolu, said: “We have a positive view on both equities because of banks and fixed income. In the near term, equities should be supported by banks, particularly because of the attractive dividend yields in that sector.
“We see another year of gains for the NSE but do not expect the magnitude of gains this year to be on par with the 35.4 per cent gain of 2012. For a much stronger run in equities, earnings growth in the consumer names in particular will have to recover strongly – we struggle to see that kind of scenario at this point. Fixed income should continue to be supported by tailwinds in the form of inflation moving in the right direction and foreign offshore flows into the FGN bond market, helped by Nigeria’s inclusion in the JPM Government Bond Index, and a similar index for Barclays this year. There is also the possibility of a cut in the benchmark rate.”
Managing Director, GTI Securities, Mr. Tunde Oyekunle said: “We have a positive but cautious outlook for 2013 in both primary and secondary market. The primary market is likely to witness few listings. The secondary market will thrive on fundamentals, most especially the banking stocks with above average performance. The year will also witness recovery from some insurance stocks, which are back to profitability and positioned to pay dividend. However, since more than 60 per cent of market transaction is dominated by foreign funds, necessary caution should be taken in anticipation of the Eurozone debt crisis and likely impact of the fiscal cliff of US. We as a company would aim at increasing investors’ education through research and market intelligence to our clients.”
Head, Research and Investment Advisory, Sterling Capital Markets, Mr Sewa Wusu, said : “Given the level of performance in 2012, the capital market is expected to witness another impressive performance this year. Performance will be driven more by strong macroeconomic environment, good corporate performance and companies’ fundamentals. We are of the opinion that expected monetary policy easing in 2013 should induce investment switch to further favour stock market. Overall, market is expected to record stronger growth in 2013, and this time the growth will be more driven by sound macroeconomic environment, strong fundamentals and good corporate performance.”
FSDH Securities said: “The economic reform in the country presents a huge opportunity for the banks operating in the country. The Central Bank of Nigeria and other regulators in the financial market have taken proactive steps to implement a number of policies to make banks focus on their core banking business, develop specialisation and safeguard the banking system.
“Investment analysts at FSDH Securities said relatively low prices, good dividend outlook and emerging financing opportunities that may boost banks’ incomes stand banking stocks in good stead as toasts of investors this year. This will significantly impact on the overall market performance, one-third of market capitalisation.
“According to analysts, the drivers of investment in banking stocks in early 2013 would include good dividend payment expected from the 2012 business year and attractive valuation of banking stocks as banks are still trading at very low multiples.”
Managing Director, Investment One Financial Services Limited (formerly GTB Asset Management Limited), Mr Nicholas Nyamali, said: “Nigeria’s attractive double-digit yield environment has been instrumental to the attraction of offshore investment into the bond space. With continued offshore demand coupled with local demand, bond yields may likely trend towards single-digit. This yield compression will lure both foreign and local investors to enhance their total return by increasing their exposure to equity risk. However, for yield on fixed income instruments to move into single-digit territory, the appetite for bond instruments will need to remain elevated.
“The level of foreign investors in our markets reflects the level of confidence in the system and the superior risk adjusted returns relative to other developed and frontier markets. However, a strong dominance by foreign investors will make the local market susceptible to volatility from the global financial market space. Our bond and equity markets direction may then be strongly influenced by global events. Furthermore, unforeseen political or economic shocks could also make our market unattractive, which could trigger capital repatriation.
“We have meanwhile, in recent time seen renewed efforts from market regulators in the direction of clearer policies, reforms and initiatives all geared towards boosting local players’ confidence and market depth. We expect that more of these reforms, initiatives and sensitisation will further boost local participation. The forbearance package for stock broking firms, removal of stamp duty and waiver of VAT on stock market transactions are also clear initiatives aimed at attracting local players and investors back into the equities market. In addition, on-going reforms in the pension space, if it pulls through, will increase pension fund administrators participation in the stock market.”
