The Nation Newspaper

Tag: Traders

  • Falling Naira rate affecting sales, say traders

    Falling Naira rate affecting sales, say traders

    Traders at the Balogun market in Lagos Island selling Italian and Brazilian shoes, bags and other fashion items, say they are not making sales as a result of the exchange rate. At the moment, it is $1 to N199.2351.

    Many of these traders import their items from Europe. Recounting their ordeal, majority of them said some of their goods are still abroad as the previous price they purchased those goods have increased by 10 per cent.

    According to them, the high exchange rate is hindering them from bringing their goods into the country. These merchants explained that they often place orders, change the currency to the Dollar and send to the company they are purchasing from but the increment in exchange rate has become a barrier.

    One of the traders, Mr Ikechukwu Ugwu, said he imports office shoes, particularly in the second quarter of the year, but that he would have to wait a while to see if the rate dollar would fall. “If I import shoes and start selling at N13, 000 or N15, 000, my customers will refuse to buy because the original price for the shoes is N8000 or N10, 000. The additional N7000 and N4000 mean a lot to customers and I will not sell to lose either,” he said.

    Another importer Mr. Kenneth Okoye, an importer of cosmetics, said he could not put all his money in the business and later not yield good results. “How can I change money at such a ridiculous rate? I can’t risk it. Because this our business comes with little profit like N50, sometime with N200. Our customers who buy in bulk earn us more profit but for now they are not showing up because of the increased exchange rate. Bringing the goods in and not selling them will be a big problem to us, our customers are used to the old price, and they won’t accept the new price. We have however agreed that we will not import until the dollar rate returns to what it used to be,” he added.

    Another importer of Italian party wears, shoes and bags Mr. Emeka Urama told The Nation Shopping that he didn’t intend to import soon. He said his customers would have to make do with what was available. He said items or designs and a set of jewelry which used to cost N20, 000, will go for N25, 000 while those that cost N30, 000 would rise to about N40,000.”

    He added that the increase in exchange rate has affected demand.”Some of my customers that come from Abuja and Port Harcout to patronise me used to buy about 50 to70 different sets of jewelries. Now, they buy 30 or 35 different sets instead and this is not good for the business, he said.  

  • Traders protest monarch’s planned demolition of market

    Traders protest monarch’s planned demolition of market

    Scores of traders yesterday stormed Lagos State House of Assembly, appealing for its intervention over alleged the planned demolition of Idi-Ose market in Apapa by a monarch, Oba Fatai Aromire Ojora.

    The traders said the royal father had given them up till Thursday to vacate the market or have their property destroyed.

    The protesters displayed various placards, with inscriptions such as: “Oba Ojora wants to become Baba Oja,” “Oba Fatai Ojora: stop harassing Idi-Ose market, your wahala too much;” “Lagos! Save our souls from Oba Ojora from selling Idi-Ose market to an hotelier,” “Oba Fatai Ojora, leave Idi-Ose market alone, don’t sell it to an hotelier” and “Oba Fatai Ojora, instead of selling Idi-Ose market to an hotelier better sell the palace,” among others.

    Speaking on behalf of the group, the Apapa-Iganmu Iyaloja-General, Alhaja Nike Owoseni, said she got the information about the proposed demolition last Thursday,  adding that no fewer than 16 markets under her, she has been making moves to resolve the impasse.

    “When they called me on Thursday that they wanted to pull down the market, we went to police station to complain and we tried also to see the monarch, but we were told that he was celebrating a festival. So I told my people to maintain peace.

    “This morning, I was called again that some youths numbering about 20 were in the market harassing the traders. Our people wanted to retaliate by fighting them but we had to appeal to them for calm,” she said.

    Also speaking, the secretary of Idi-Ose Market, Pastor M. A. Adeoye, said the oba was maltreating them like slaves, adding that they were asked to vacate the market since last year.

    Chairman House Committee on Information, Strategy and Security Segun Olulade promised that the House would intervene to resolve the issue.

    He said: “We have received your petition and I can assure you that within the next 24 hours, we shall invite all the necessary parties that are involved.”

  • Exchange rate affecting sales, say traders

    Traders at the Balogun market in Lagos Island selling Italian and Brazilian shoes, bags and other fashion items say they are not making sales as a result of the exchange rate. At the moment, it is $1 to N199.2351.

    Many of these traders import their items from Europe. Recounting their ordeal, the majority of them said some of their goods are still abroad as the previous amount they purchased those goods have increased by 10percent.

    According to them, the high exchange rate is hindering them from bringing their goods into the country. These merchants explained they often place orders, change the currency to the Dollar and send to the company they are purchasing from but the increment in exchange rate has become a barrier.

    A trader Mr Ikechukwu Ugwu said he imports office shoes, particularly in the second quarter of the year, but that he would have to wait a while to see if the Dollar rate would fall. “If I import shoes and start selling at N13, 000 or N15, 000, my customers will refuse to buy because the original price for the shoes is N8000 or N10, 000. The additional N7000 and N4000 mean a lot to customers and I will not sell to lose either,” he said.

    Another importer Mr. Kenneth Okoye, an importer of cosmetics, said he could not put all his money in the business and later not yield good results. “How can I change money at such a ridiculous rate? I can’t risk it. Because this our business come with little profit like N50, sometime with N200. Our customers who buy in bulk earn us more profit but for now they are not showing up because of the increased exchange rate. Bringing the goods in and not selling them will be a big problem to us, our customers are used to the old price, and they won’t accept the new price. We have however agreed that we will not import until the Dollar rate returns to what it used to be,” he added.

    Another importer of Italian party wears, shoes and bags Mr. Emeka Urama told The Nation Shopping that he didn’t intend to import soon. He said his customers would have to make do with what was available. He said items or designs and a set of jewelry which used to cost N20, 000, will go for N25, 000 while those that cost N30, 000 would rise to about N40,000.”

    He added that the exchange increment has affected demand.”Some of my customers that come from Abuja and Port Harcout to patronise me used to buy about 50 to70 different sets of jewelries. Now, they buy 30 or 35 different sets instead and this is not good for the business, he said.  

  • Police chief to traders: be security-conscious

    Aba Area Commander of the Nigeria Police, Mr. Peter Wagbara has called on traders and shop owners in the commercial hub of Abia State, and its environs to be security conscious.

    Speaking in his office during a meeting with stakeholders, chairmen and their executive from various markets located in Aba, Wagabra urged them to be vigilant and report to the police within their markets of suspicious objects and strange faces.

    The Aba Area Commander said it has become necessary that traders tightened up security around the markets and their shops and to be able to identify strange faces in the market owing to security reports that some people were planning to perpetuate mayhem in one of the markets in Aba.

    He said: “The police warn anyone who wants to cause disaffection among traders which would bring civil unrest in the market to desist from such act.

    “We have tried to ensure there is maximum security of lives and property in our markets and will not just seat and watch unscrupulous individuals to come and breach the peace existing in Aba, because they want to achieve their selfish aim.

    “I want to urge you to strengthen your internal security, know when to open and close the market. It will enable you to monitor the movement of people in and around the market.

    “You must guard your markets jealously and avoid acts capable of breaching the peace, law and order in your markets. Your property in the markets is worth millions of Naira and if for any reason it was destroyed, you will be the one that will bear the loss.

    “So, you are expected to collaborate with the police and report every incident and suspicious movements to the police so that police can take prompt action. Things dropped where they are not supposed to should not be neglected. Call and tell us. The police anti-bomb detecting department will be alerted to inspect such items before it will be disposed.

    “We have a robust patrol team that will always respond promptly to your emergency calls. All we are asking is for you to do your bit and alert the police whenever you are in doubt or suspecting anything around you.”

    In their separate speeches, the chairman Ariaria International Market, Mr. Lucky Akubueze, Director of Taskforce Ngwa Road Market Chief Friday J. Nwulu and Chief Agbawo Chidi thanked the police chief for his concern over the security of the traders.

    They promised to pass the message across to their members as soon as they go back to their respective markets, even as they promised to co-operate with the police in protecting their lives and property and also in ensuring that there was peace in various markets in Aba and its environs.

  • Nedbank, IFC launch $50m facility for producers, traders

    NEDBANK’S Capital division and the International Finance Corporation (IFC) have launched a $50 million working capital finance and warehouse scheme to help commodity traders and processors in sub-Saharan Africa (SSA) import agricultural commodities and export cash crops, with the first deal already having been signed with rice importers in Liberia.

    In a statement, the bank explained that this funding had ensured that food was still delivered to the country without any disruption, despite the Ebola outbreak threatening food security with restrictions on air travel and border closures.

    IFC Regional Head of Manufacturing, Agribusiness and Services for SSA, German Vegarra, added that the private sector had a crucial role to play in containing the economic effects of Ebola.

    “By partnering with Nedbank, IFC and (the) Global Agriculture and Food Security Programme will support commodity trade in Liberia to maintain economic activity and ensure food security in the country.

    “The scheme is crucial to deal with the real challenge of food security across the continent,” noted Nedbank Capital Global Commodity Finance (GCF) head, SeketeMokgehle, adding that Nedbank, as the only South African bank to have signed with the IFC, was “extremely pleased” to be able to play its part towards ensuring that food, a basic human right, was available to all African citizens.

    In SSA, in particular, 20 countries had recorded an overall improvement in food security, according to the Global Food Security Index 2014, but countries in the region still made up the bulk of the bottom tier of the index. Although the region had recorded high economic growth rates over the past five years, food security and, particularly, food affordability continued to be undermined in SSA.

    Nedbank hoped that the working capital finance and warehouse scheme would address, among many other challenges, SSA’s low average income, widespread poverty, weak logistical infrastructure, political unrest and heavy reliance on costly food imports amidst large geographical areas.

    The scheme, which was part of the IFC’s Global Warehouse Finance Programme (GWFP), was focused on providing funding to farmers and traders in emerging and nondeveloped countries in Africa who were often unable to procure finance owing to a lack of sufficient conventional loan collateral.

    The deals would be structured on a warehouse concept, with the physical commodity or collateral being stored in warehouses or other acceptable storage and in-transit methods to mitigate potential risks. As the product was sold, the trader would pay the lender, enhancing cash flow for the farmer but still protecting the commodity on behalf of the financier.

    “The GWFP covers transactions in Africa, excluding South Africa, whereby Nedbank’s GCF division provides finance against a specific agricultural commodity. This is managed under a collateral management arrangement, stock monitoring arrangement, warehouse receipt financing, in-transit against a freight forwarders receipt or similar financing structures,” advised Mokgehle, adding that GCF already provided these products and had been doing so since 1999 in its business.

  • Traders: why we shunned insurance

    Traders: why we shunned insurance

    •’Operators not sincere’

    Traders are averse to insuring their properties despite suffering heavy losses in fires in Lagos in the past one month, it has been learnt.

    Traders, according to the News Agency of Nigeria (NAN), lost goods worth billions of naira to fires which gutted five markets.

    According to NAN, many of the traders said they would not insure their businesses because the insurers were not sincere.

    Mr Lekan Oguntunde, the market leader of Oluwagbemi Market on Lagos Island, said most insurance companies did not pay claims in time whenever tragedy occurred.

    He said: “The experience of few of our members that registered with them is unpleasant. These insurance companies are diligent in collecting premiums but when it is time for compensation, they will start demanding for unnecessary things.

    “One of our members was asked to bring receipts for goods bought many years before the fire that gutted his shop.’’

    A fire victim at Ereko Market on Lagos Island, Mrs Remix Bakinson, said Nigerians lacked confidence in insurance companies.

    Bakinson said she stopped insuring her business five years ago because she did not see the need for it.

    “All that insurance people are concerned about is the collection of premiums, after that, nothing else. At least, they should be able to tell us what happens to the money if no losses are recorded after a period of time,” he said.

    Mr Silva Okereke, leader of fabric sellers at the market, said he distrusted insurance companies because of their high premiums, especially, for comprehensive insurance.

    According to Okereke, the companies demand up to N500,000 yearly on businesses valued at N5 million.

    He said: “This is just too high; some of us collected loans from the bank to float our businesses and we are still repaying with interest. We pay almost five million naira per annum as rent on our shops; this is apart from other expenses.

    “So, it will be good if insurance companies can bring down the premium they demand.”

    Mr Olanrewaju Onigemo, Secretary-General of Electronics Market Traders Association at Alaba, Lagos, said insurance operators had not been visiting them regularly.

    “The last insurance company that was here came five years ago and we introduced the company to our members, afterwards we did not see them again.

    “Our members lack enlightenment; they find it hard to inculcate other things into their business apart from buying and selling.

    “Also, Insurance operators ask too many questions and are not sincere; so they can hardly get five out of 100 persons selling here at Alaba, to buy their policies,’’ Onigemo said.

    He urged insurance companies to mobilise and penetrate the markets.

    Mr Mohammed Abdul, Secretary-General of Perishable Food Sellers Association at Mile 12 market, said it was wrong to force people to take an insurance policy.

    Abdul said some traders had not taken up any policy because of their religious beliefs.

    Reacting, President of the Nigeria Insurers Association (NIA) Mr Godwin Wiggle said it had taken measures to encourage people to accept its policies, especially in micro-businesses.

    “We have developed robust micro insurance products that will address the needs of market people,’’ Wiggle said.

    Mr Ayodapo Shoderu, President, Nigerian Council of Registered Insurance Brokers (NCRIB), said the council was working hard to promote high ethical standards among its members.

    Shoderu said the council will not defend any member that violates insurance broking operation standards.

    “Let me reiterate the call for compulsory insurance for all Nigerian markets and public edifices, as enshrined in the legal provision under Insurance Act 2003 (Sections 64 and 65) of insurance of public buildings,” he said.

  • Traders: why we shun insurance

    Traders: why we shun insurance

    •Say operators not sincere

    Traders are averse to insuring their properties despite suffering heavy losses in fires in Lagos in the past one month, it has been learnt.

    Traders, according to the News Agency of Nigeria (NAN), lost goods worth billions of naira to fires which gutted five markets.

    According to NAN, many of the traders said they would not insure their businesses because the insurers were not sincere.

    Mr Lekan Oguntunde, the market leader of Oluwagbemi Market on Lagos Island, said most insurance companies did not pay claims in time whenever tragedy occurred.

    He said: “The experience of few of our members that registered with them is unpleasant. These insurance companies are diligent in collecting premiums but when it is time for compensation, they will start demanding for unnecessary things.

    “One of our members was asked to bring receipts for goods bought many years before the fire that gutted his shop.’’

    A fire victim at Ereko Market on Lagos Island, Mrs Remix Bakinson, said Nigerians lacked confidence in insurance companies.

    Bakinson said she stopped insuring her business five years ago because she did not see the need for it.

    “All that insurance people are concerned about is the collection of premiums, after that, nothing else. At least, they should be able to tell us what happens to the money if no losses are recorded after a period of time,” he said.

    She said she regretted not insuring her business, adding that she lost goods worth billions of naira to the fire.

    Mr Silva Okereke, leader of fabric sellers at the market, said he distrusted insurance companies because of their high premiums, especially, for comprehensive insurance.

    According to Okereke, the companies demand up to N500,000 yearly on businesses valued at N5 million.

    He said: “This is just too high; some of us collected loans from the bank to float our businesses and we are still repaying with interest. We pay almost five million naira per annum as rent on our shops; this is apart from other expenses.

    “So, it will be good if insurance companies can bring down the premium they demand.”

    Mr Olanrewaju Onigemo, Secretary-General of Electronics Market Traders Association at Alaba, Lagos, said the traders had not thought of insuring the market.

    Onigemo said insurance operators had not been visiting them regularly.

    “The last insurance company that was here came five years ago and we introduced the company to our members, afterwards we did not see them again.

    “Our members lack enlightenment; they find it hard to inculcate other things into their business apart from buying and selling.

    “Also, Insurance operators ask too many questions and are not sincere; so they can hardly get five out of 100 persons selling here at Alaba, to buy their policies.

    “We learnt our lessons from people who took comprehensive insurance, if an insured car is involved in an accident today, the compensation will be paid after three  years,’’ Onigemo said.

    He advised insurance companies to mobilise and penetrate the markets.

    Mr Mohammed Abdul, Secretary-General of Perishable Food Sellers Association at Mile 12 market, said it was wrong to force people to take an insurance policy.

    Abdul said some traders had not taken up any policy because of their religious beliefs.

    He recalled that some companies had come to the market to sell their products but most traders were not interested.

    Reacting, President of the Nigeria Insurers Association (NIA) Mr Godwin Wiggle said it had taken measures to encourage people to accept its policies, especially in micro-businesses.

    “We have developed robust micro insurance products that will address the needs of market people.

    “We have strategised and sensitised our members to enter Nigerian markets in full force,’’ Wiggle said.

    The association, he said, would continue to improve on its enlightenment to reach people.

    Mr Ayodapo Shoderu, President, Nigerian Council of Registered Insurance Brokers (NCRIB), said the council was working hard to promote high ethical standards among its members.

    Shoderu said anything short of this was unacceptable, adding that the council will not defend any member that violates insurance broking operation standards.

    “Let me reiterate the call for compulsory insurance for all Nigerian markets and public edifices, as enshrined in the legal provision under Insurance Act 2003 (section 64 and 65) of insurance of public buildings”, he said.

  • Vote like you did on March 28, Obasanjo urges Ogun traders

    Vote like you did on March 28, Obasanjo urges Ogun traders

    Former president Olusegun Obasanjo has urged Nigerians not to relent in their quest for change with the election of the Predident – elect, General Muhammadu Buhari in the last March 28 polls.

    He made the appeal at the weekend in Abeokuta, the Ogun State capital, while speaking with reporters shortly after a surprise visit to traders at the popular Itoku market.

    Obasanjo asked all agents of change to go the whole hog and re – enact the same feat of March 28 by coming out enmasse to vote.

    “They should do exactly what they did last Saturday. As a member of the community, I have the right to visit my people especially in the spirit of Easter.

    “Since I came back, I have not really visited any market. I have come to do two things. I have come to give them Easter greetings and to find out how they are doing in their market.

    “This is my community. As a member of the community, I want to know what’s going on and what’s happening in the community, ” Obasanjo stated.

  • Ondo traders for Buhari

    Ondo traders for Buhari

    Leaders and members of the Market Women Association in Ondo State at the weekend expressed their support for the All Progressives Congress (APC) and its presidential candidate, Gen Muhammadu Buhari.

    Over 1,000 market women trooped into the APC secretariat, Akure, where they assured the party leaders of their determination to mobilise their members to work for Buhari, his running mate, Osinbajo and all other candidates.

    They hailed Osinbajo for coming to the popular Erekesan Market during his recent Town Hall meeting in Ondo town.

    At the event were the candidate for Ondo Central Senatorial District, Chief Tayo Alasoadura and the House of Representatives candidate for Akure North/South, Afe Olowookere.

    The traders were led by the former lawmaker representing Akure South 1 Constituency, Tayo Abidakun (Jaja).

  • Val boom for Lagos traders

    The shift of the elections turned out to be a blessing for traders and other businesses who took advantage of the Valentine’s Day celebration to make good sales. TONIA ‘DIYAN reports. 

    It had hitherto clashed with the Presidential election, but when there was an announcement shifting the election from February 14, a sigh of relief came for both lovers that had planned to have a frolicking time for the day, as well as for traders and other business owners, whose businesses would have suffered considerable loss where the election to hold that day.

    Indeed, over the years, St Valentine’s Day has proved to be an annual business opportunity for entrepreneurs in Lagos. With the election rescheduled from February 14th, traders recorded moderate sales. Chiama Uzor, a clothing retailer at the Arena said “I was actually worried for the fact that it was election and it was also valentine, but thank God it was postponed.  I am happy we had fun making sales, it was a good one. “

    Mutiat Adepoju, a gift items trader at Iponrin market, Surulere , explained that sales of Valentine goods on Valentine Day  is always  a fire brigade approach. We saw more last minute shopping where everybody wanted to go home with something for their partner. Adepoju recalled one of her customers who said to her “ I won’t be able to go home today if I don’t get this scented flowers” when the item was becoming difficult to find in her store.

    For Mary Agbator, a shopper, Valentine items were not too expensive on valentine day.  They were only a little different compared to last year’s.

    On display at some shops in Lagos Island were attractive gift items, and fanciful clothings, which never failed to attract buyers. They were to match blouses and skirts, club tops and trousers, bondage skirts, red bomb short,  white bumshort with club top. Their prices varied between seven thousand and seven thousand five hundred. These prices are attributed to the dollar rate increment, which has gone high.

    For some other retailers at the Oke-Arin market, prices of Valentine items went up a little higher but, retailers at this market said they were able to cope.  And shoppers who visited the Oke Arin market to buy Valentine items said despite the hike in the prices of items on this day, they still had to buy gifts because it was valentine.

    Gloria Thomson sells clothing and beauty accessories, she said She could not travel this year to get stuffs because the exchange rate is high. “I have loads of leftovers from last year’s valentine sales so I just did a little bit of out sourcing from those items I had last year, so I could also sell Valentine stuffs. I was able to outsource and I got some things i didn’t have before and I was able to make sales.” She said.

    Most of the gift items of these retail outlets were imported products. The weak Naira to Dollar exchange rate at N200, has a negative impact on prices, and  for this reason personal budget had to follow scale of preference.