Author: rukayat moisemhe

Collectivity
By Rukayat Moisemhe
Lagos, June 26, 2024 (NAN) The Lagos Chamber of Commerce and Industry (LCCI) has urged the business community to embrace connectivity by forging connections that bridge gaps and enhance progress and prosperity.

Mr Gabriel Idahosa, President, LCCI, said this at the 2024 LCCI Member’s Day event on Wednesday in Lagos, with theme: ‘Connecting the Dots’.

Idahosa called on the private sector to take advantage of every opportunity to join hands, hearts and forces in the spirit of service and collaboration, to truly make a difference.

He noted that in a world where connectivity was paramount, the interplay between individuals, businesses, and communities would lead to collective progress.

”We are not just isolated entities operating in silos; rather, we are interconnected threads in the intricate fabric of society, each with a role to play, each with a contribution to make.

”As members of the LCCI, we recognise the power of service, that is, the power to effect change, drive progress and create a lasting impact.

”Service is not merely an action; it is a commitment to bettering the business community and the nation at large,”he said.

The LCCI president said the chamber remained dedicated to empowering business members to make a difference whether in advocating for favourable policies, providing vital business support or fostering collaboration and partnership.

He said the LCCI would continue provide unparalleled networking opportunities, particularly in a world where connections mattered and relationships formed the bedrock of business.

”Most importantly, LCCI is a collective voice that represents the interests of its members, advocates for policies conducive to business growth, and engages with policymakers to effect change.

”In a world where regulations abound, and decisions impact businesses, having a strong advocate in your corner is invaluable.

”The chamber serves as a nexus, bringing together like-minded professionals, potential partners, and customers.

”Members can expand their reach through networking events, business expos, and trade shows, forge new partnerships, and unlock new growth opportunities,” he said.

Also, Otunba Akinbo Akin-Olugbade, Vice President, LCCI, urged the business community to position themselves with the chamber to optimally derive the value of its benefits for their organisations.

He noted that in the new era, businesses depended on partnership, networking, and collaborations for survival and relevance.

According to him, globalisation has made the world more connected and integrated fuelled by technological advancement, lightning-speed communications, and scientific breakthroughs.

Akin-Olugbade said the LCCI would continue to stimulate key economic indices to impact business growth.

”We expect, in the spirit of reciprocity: that your organisations will continue to
contribute their quotas to the development, growth, and expansion of the frontiers currently embraced by the chamber.

“LCCI implores you to do business with integrity and at the highest ethical standards,” he said.(NAN)(www.nannews.ng)

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Edited by Dianabasi Effiong

Multinationals exodus: CIoD wants FG address underlying issues

Issues

By Rukayat Moisemhe

Lagos, June 26, 2024 (NAN) The Chartered Institute of Directors (CIoD) has advised  the Federal  Government to do more to attract foreign investments and retain  multinational companies.

The Director-General of CIoD, Mr Bamidele Alimi,  gave the advice in the institute’s position paper  on the exodus of multinationals from Nigeria.

The paper was made available to the News Agency of Nigeria (NAN) in Lagos on Tuesday.

Alimi said that the Federal Government should adequately address the issues making multinational companies to exit Nigeria.

He said that Nigeria recorded a significant exodus of multinationals over the past decade.

According to him, the exodus raises concerns about Nigeria’s business climate.

NAN reports that Procter and Gamble, GlaxoSmithKline and  Kimberly-Clark are among the multinational companies which have left Nigeria.

The CIoD director-general said: “Obtaining foreign exchange is a significant hurdle for multinational companies, and the volatility in the exchange rate creates untold hardship for businesses.

“Lack of an easily accessible liquid forex market, where companies can easily buy and sell foreign currency at market rates, significantly hinders their operations.

“The depreciation of the Naira against major currencies like the US dollar further compounds  foreign exchange problems.”

Alimi said that unreliable power supply also posed a challenge, as frequent outages disrupted production, increased reliance on expensive generators, and raised operational costs.

He urged the government to adequately address infrastructural impediments, bureaucracy bottlenecks and security challenge.

Alimi said that a stable and predictable business environment  with access to foreign exchange, reliable power supply, efficient infrastructure and improved security would retain multinationals and attract new ones.

According to him, this will  lead to increased investment, job creation and economic growth.

He stressed the need to reduce dependency on oil by diversifying the economy through improved investments in agriculture, manufacturing, technology and services.

He said that initiatives that would support small and medium-sized enterprises  and innovation would drive the diversification.

Alimi advised that the Central Bank of Nigeria  should adopt more flexible foreign exchange policies that would give businesses  easy access to foreign currencies.

Alimi said that the government should collaborate with the private sector to create a more business-friendly regulatory framework, simplifying processes and reducing bureaucratic bottlenecks.

“The Presidential Fiscal Policy Reform and Tax Committee should consider incentives to reduce the cost of doing business.

“This could include tax breaks, subsidies for critical inputs, and support for technology adoption to improve efficiency,” he said.

Alimi said that  business registration processes should be simplified.

He added that there should be  improved access to credit, protection of minority investors and effective enforcement of contracts.

The CIoD director-general emphasised  promotion of partnerships between multinationals and local businesses to enhance local capacity and ensure more sustainable investments.

“Lastly, government should actively engage in public relations campaigns to rebuild confidence among foreign investors.” (NAN)(www.nannews.ng)

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Edited by Kevin Okunzuwa/Ijeoma Popoola

They gave the advice at a career and entrepreneurship workshop organised by the boys and girls brigade of Wesley Chapel, Lekki, Lagos State, on Saturday.

Registration

By Rukayat Moisemhe

Lagos, June 21, 2024 (NAN) Michael Nwabufo (aka Mike Premium), the Ambassador for the Corporate Affairs Commission (CAC), on Friday urged business owners to beat the July 7 deadline for registration.

Nwabufo, a talent and brand manager, made the appeal while speaking with newsmen in Lagos.

He said the CAC business registration could be completed within 24 hours through the new Special Registration Portal (SRP).

According to him, the CAC has made a lot of significant advancement recently through SRP to ease registration of businesses in line with the new government directives.

On the mandatory business registration, the CAC and the Central Bank of Nigeria, Nwabufo said the portal had enabled businesses to be registered and receive documentation in a day.

“There is a crucial deadline for agents and fintech companies to register their businesses.

“Compliance is mandatory under new regulations aimed at enhancing transparency and accountability within the financial sector. The deadline ends on July 07.

“To facilitate this, the CAC has introduced a Special Registration Portal, a new system enabling businesses to complete their registration directly through their mobile banking apps.

“This innovation streamlines the process, making it quicker and more convenient for agents to comply with the regulatory requirements,” Nwabufo said.

He urged business owners to take advantage of the SRP immediately to ensure timely registration and avoid any potential penalties for non-compliance.

Nwabufo urged business owners to arm themselves with further information and access to the portal by visiting the official CAC website or consult your banking app.

Emphasising the importance of business registration in Nigeria, Nwabufo said that it would foster uniqueness and trust among entrepreneurs.

According to him, there is a partnership between the Practitioners of Content Creating, Skit-Making, and Influencers Guild of Nigeria and the CAC.

He said that the partnership was aimed at registering over five million new businesses nationwide within a year.

Nwabufo thanked the Registrar-General, Hussaini Magaji SAN, for his continuous efforts in making sure the Nigerian business space was safe and secure.

He also commended Magaji for his unwavering support for Small Medium Enterprises.

“The CAC has been one of the top performing government parastatals in the past one year scoring 53.36 per cent in the Efficiency Compliance Ranking, 65.12 per cent in Overall BFA Performance and highest score on the ReportGov.NG platform with 67.86 per cent, indicating full compliance,” he said.

He also mentioned the possibility of the Federal Government grants for content creators who register their businesses through this new process.

The News Agency of Nigeria (NAN) reports that Nwabufo was appointed CAC ambassador on April 26.  (NAN) (www.nannews.ng)
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Edited by Gregory Mmaduakolam/Chinyere Joel-Nwokeoma

Regulation

By Rukayat Moisemhe

Lagos, June 20, 2024 (NAN) Experts have called for the adoption of good regulatory governance principles to tackle the implications of overlapping regulatory functions on business operations and the manufacturing sector.

They made the call at the Manufacturers Association of Nigeria (MAN) Ikeja branch 2024 Chief Executive Officers (CEOS) breakfast meeting on Thursday in Lagos.

The News Agency of Nigeria NAN reports that the meeting had as its theme: “Harmonising Regulatory Compliance: The Impact of Overlapping Regulatory Function on Business Operations”.

Dr Muda Yusuf, Founder, Centre for the Promotion of Private Enterprises(CPPE), said the call was particularly important as this was not the best of times for manufacturers and investors in the economy.

Yusuf stated that regulatory risk was one of the biggest risks that businesses had to cope with in the Nigerian economy.

This, he noted, could manifest as overlapping regulatory regimes, too many regulations, sporadic and frequent regulatory changes and absence of dispute resolution mechanism between businesses and the regulators.

“There are several cases of overlapping regulatory functions creating challenges for manufacturers and its impact is with respect to cost, irritation and distraction of having to attend to numerous agencies of government.

“Because manufacturing business is long term, regulatory risk is a major source of worry for manufacturers as manufacturers do not have the luxury of switching easily from one product line to another.

“Hence, the need for regulatory risk needs to be kept to the barest minimum,” he said.

The CPPE boss also stressed the urgent need to harmonise the applicable exchange rate for the computation of import duty.

He said the import prohibition  of 41 items by the former Central Bank of Nigeria (CBN), Godwin Emefiele, was a classic case of overlapping and conflicting functions of the CBN and fiscal authorities on trade.

Yusuf noted that while the policy lasted, it created a lot of confusion in the international trade ecosystem as items that were on the CBN import prohibition list were not on the fiscal policy prohibition list.

He stressed that the regulator’s purpose and regulatory objectives should be clearly defined and communicated to the regulator, the regulated, and the general public.

“Governance arrangements for regulators should promote efficiency, effectiveness and integrity.

“Stakeholders should be able to predict, with a high degree of confidence, what decision a regulator is likely to make in particular circumstances.

“Regulators should engage systematically with stakeholders through transparent, formal mechanisms that guard against “regulatory capture” by one or more stakeholders.

“Also, regulators should be accountable to the government and parliament, the regulated entities, and the general public for their decisions and use of resources,” he said.

President, MAN, Otunba Francis Meshioye, said that while regulations were essential for safety and quality, the overlapping and sometimes contradictory regulations increased operational costs and ultimately hindered business growth.

He noted that Nigeria’s regulatory landscape was characterised by a multitude of agencies, each with its own set of rules and requirements.

Meshioye said that though the intention behind these regulations was often to protect the public interest, ensure compliance, and promote industrial standards, the lack of coordination and harmonisation among regulatory bodies created bottlenecks to businesses.

“These bottlenecks have adverse effects such as operational inefficiencies, increased compliance costs, delayed production, uncertainty and risks.

“It is pertinent to note that the need for harmonisation of regulations is not about reducing standards or compromising on safety and quality but about creating a more coherent, predictable, and business-friendly regulatory environment,” he said.

Elder Robert Ugbaja, Chairman, MAN Ikeja Branch, underscored the importance of collaborative efforts in addressing regulatory challenges and driving positive change.

Ugbaja called for the development of practical strategies that promote regulatory harmonisation that had the potential to unlock the full capacities of Nigerian businesses and industries.(NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa

Trade Mission
By Rukayat Moisemhe
Lagos, June 13, 2024 (NAN) The Nigerian-British Chamber of Commerce (NBCC) has stated the need for Nigerian and British businesses to leverage their strengths and explore new frontiers at the forthcoming trade mission in the United Kingdom.
Mr Ray Atelly, President, NBCC, said this at a news conference on Thursday in Lagos.
Atelly said the 2024 NBCC Trade Mission slated for June 24 to 28 has the theme: “Unveiling Untapped Opportunities Across the UK and Nigeria.”
He said the advice was crucial to navigate the complexities of a post-Brexit and post-pandemic global economy.
He noted that the trade mission was critical, particularly at this time when the Nigerian economy needed a rebirth especially via influx of foreign direct investments.
He said Nigeria’s dynamic economy, rich in resources and entrepreneurial spirit, presented a wealth of investment opportunities for UK businesses, particularly as Nigerian banks need capital to meet the new capital threshold set by the apex bank.
Atelly added that the UK, with its advanced infrastructure, diverse market, and robust legal framework, offered numerous opportunities for Nigerian businesses seeking to expand their footprint internationally.
“It is certainly not just a window but a big door of opportunities thrown open to investors all over the world, the United Kingdom particularly.
“The Central Bank of Nigeria Governor, Olayemi Cardoso, has agreed to feature in the trade mission and he will be delivering a paper on his programme for the banks (recapitalisation of Nigerian banks).
“It is, therefore, an opportunity for the financial institutions in Nigeria to join us on this mission to explore possibilities beyond borders,” he said.
He also stated the need to explore and unveil untapped opportunities that exist within both economies.
Atelly said on the Nigerian front, opportunities existed in the transportation, educational and technology areas while for Nigeria in the UK, opportunities were in housing, food exports and culinary delights.
He stressed that Nigeria must expend efforts such as this to replace businesses that were being lost, noting that the net gain was in the country’s favour.
He pledged that the NBCC would continue to be at the forefront of fostering strong bilateral trade relations between Nigeria and the United Kingdom.
“This trade mission is a testament to our commitment to deepening economic ties, promoting business opportunities, and enhancing mutual growth and development,” he said.
The Director General, NBCC, Mrs Ebere Njoku, said the trade mission would high the vast and often underused opportunities in Nigeria’s key sectors such as agriculture, technology, manufacturing, and energy.
Njoku said the knowledge exchange in best practices between business leaders would foster innovation and collaboration between Nigerian and British business leaders.
“The UK-Nigeria relationship is built on a foundation of shared history and mutual interests.
“This trade mission is not just about business; it is about building bridges, fostering understanding, and creating a future where both nations can thrive together.
“As Nigeria navigates challenging economic conditions due to the decline in global oil prices, it has become imperative for us to diversify our economy and reduce our dependence on crude oil.
“The NBCC Trade Mission stands as a beacon of opportunity, aimed at attracting foreign investments to Nigeria with a focus on our non-oil sectors,” she said.(NAN)
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Edited by Chinyere Joel-Nwokeoma

Gas
By Rukayat Moisemhe
Lagos, June 13, 2024 (NAN) Some experts have called for a well-articulated and sustainable programme to decentralise the power sector regulatory environment and incentivise investors to boost natural gas production in Nigeria.
They said this at the American Business Council (ABC) Economic Update with theme: “Energising Nigeria: Navigating Challenges, Harnessing Opportunities,” on Thursday in Lagos.
Prof. Barth Nnaji, the Chairman, Geometric Power Ltd., said for almost three decades, the world had been possessed with finding a solution to climate change, having identified fossil fuel as the main culprit to global warming.
Nnaji noted that Nigeria had set a target of 2030 to achieve complete flare-out in its oil industry with various aspirations to pursue renewable energy options.
Nnaji noted that, unfortunately, the non-availability of adequate gas for power and industrial processes would afflict all the initiatives, in spite of the country’s proven natural gas reserves of over 206 trillion cubic feet.
He said that while government must be commended for exploring overseas markets for Nigeria’s natural gas for its benefit, they should bear in mind that ‘charity begins from home.’
“It is not just local power producers that are currently bleeding owing to insufficient gas.
“There is no sufficient liquified petroleum gas for our kitchens and people are now resorting to firewood and coal for cooking, thus worsening the environmental crisis,” he said.
Nnaji, also former Minister of Power, stressed the need for a total overhaul of the transmission arm of power generation, saying that the current national grid is grossly inadequate for 200 million.
“Nigeria needs over 100,000 MW to meet its energy needs and we currently have just 13,000MW of installed capacity from which we are only able to put less than 5,000 MW on the grid due to reasons primarily of gas and transmission constraints.
“The Nigerian government at every level should employ already tested approaches to collaborate with competent private sector operators to quickly progress power availability to the level that matches our country’s sustainable economic growth desire,” he said.
Mrs Margaret Olele, Chief Executive Officer, American Business Council, noted that the theme of the event was a critical conversation on how government and private sector can best move forward to energise the country.
Olele noted that in spite of the economic reforms by the current administration and the implementation of the Petroleum Industrial Act, Nigeria was still unable to meet Organisations of the Petroleum Exporting Countries (OPEC) production quota.
“Issues of theft, insecurity have impacted the country meeting its OPEC quota and it is important to address this because a major chunk of the country’s revenue is tied to the power, oil and gas sector.
“The gas we have is still underutilised and power generation issues is impacting manufacturers and everybody in general so we are here to unload and shift your mindsets from the status quo to innovation and progression amidst the challenges,” she said.
Mr Martins Arogie, Partner, Energy and Natural Resources Services, KPMG, said that Nigeria’s energy industry was considered one of the most inefficient in meeting the needs of its customers globally, in spite of the country’s enormous energy resources.
Arogie noted that underutilisation of these resources was rampant and exacerbated by a chronic imbalance in the electricity and petroleum products markets.
This situation, Arogie said, had threatened Nigeria’s energy security, harmed the economy, increased income inequality and energy poverty, weakened industrialisation processes, and the undermine efforts to achieve sustained economic growth.
“In a market where demand far outstrips the current supply, Nigeria’s energy sector presents attractive investment opportunities within its various subsectors including oil and gas, electricity and renewables.
“With an abundance of both renewable and non-renewable resources, Nigeria provides immense opportunities for sustainable solutions to address existing energy demand gap and contribute to government’s drive to improve the efficiency and contribution of the sector.
“Therefore, it has become imperative for all the stakeholders to collaborate to address the challenges hampering the development of energy sector and unlock the vast opportunities that it holds for the country, Africa and the world,” he said.
Mrs Eyono Fatayi-Williams, President, Women in Energy Network, noted that Nigeria, blessed with a lot of natural resources, has a 206 trillion feet of proven gas reserves, which means there’s so much that can be done to harness the country’s gas resources.
Fatayi-Williams noted that the country had a lot of room for growth, particularly as gas has been recognised globally as the transition fuel in energy transition.
“So, gas development is a good thing and gas development will help in closing the huge deficit we have seeing that what Nigeria produces and what it needs are at two different points apart.
“But I think our message is the government declared a decade of gas and we are still in that decade and that decade of gas is supposed to be the big ticket, and we look forward to that happening.
“I think the government can continue in that trajectory and we are bound to see positive changes and we look forward to when Nigeria can actually become a gas-powered economy in 2030,” she said.(NAN)(www.nannews.ng)
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Edited by Chinyere Joel-Nwokeoma

Expert backs Commission’s move to sanitise digital lending space

Lending

By Rukayat Moisemhe

Lagos, June 13, 2024 (NAN) Money Lenders Association, has commended the continuous actions by the Federal Competition and Consumer Protection Commission (FCCPC) to sanitise the digital lending space in Nigeria, saying it is a welcome development.

Chairman of the Association, Mr Gbemi Adelekan, in an interview with the News Agency of Nigeria (NAN) on Thursday, said efforts of the FCCPC resulted in growth of online lending applications.

Adelekan, also Managing Director, Kwikpay Credit, said that the use of online lending applications, when compared to traditional financial institutions, had witnessed significant growth in the past few months.

He, however, noted that this growth also led to increase in default rate due to the economic situation and financial constraint for some customers.

He furthered stated that the growth in the industry had also attracted licensed players and some unregistered operators that were violating the consumer rights in the country.

Adelekan recalled that in August, 2022, the FCCPC issued interim guidelines on the registration of digital lending platforms in the country.

These guidelines, he stated, were necessary to curb these unlawful practices in the eco system and help to sanitise the industry.

According to him, the FCCPC has made significant progress in monitoring this important sector as the commission continues to investigate and track most of these illegally operating DMLs.

“While most licensed Digital Money Lenders (DML) are operating their loan app business ethically, in compliance with the prevailing laws of the land and lending principles, we also have a few bad eggs in the industry.

“Most of these unscrupulous lenders are unregistered and without the required licenses, thereby contravening various regulations and guidelines introduced by FCCPC and the various regulatory bodies of the government.

“These illegal operators use threatening and arm-twisting tactics as part of their collection strategy,” he said.

Adelekan stated that the continuous investigation and surveillance by the commission demonstrate its commitment to tackling these unwholesome practices head on.

He said that as of today, over 230 digital money lenders have been registered by FCCPC with 88 existing loan operators put on watch list.

He noted that the commission had also delisted 47 Loan apps from operating online on the google play store and also blocked the bank accounts of lenders violating the contraventions.

Adelekan charged the general public to desist from patronising illegal loan apps, saying any loan application that has approved and disbursed funds to you without the necessary verification was a red flag.

“The association advises the general public to exercise caution when applying for loans online, to only select licensed and approved Digital Money Lenders (DML) on the FCCPC’s website.

“This will help to reduce the rate at which these illegal loan apps name, shame and contravene the rights of consumers,” he said.(NAN)(www.nannews.ng)

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Edited by Ekemini Ladejobi