Business

Between FG And Diaspora Investors

Published

13 years ago

October 31, 2011

Olusegun Aganga is Nigeria’s trade and investments minister. An accomplished investment banker and erstwhile holder of the nation’s finance portfolio. He joined the ministerial train not quite long ago after relinquishing his managing directorship of the prestigious investment firm of Goldman Sachs in Europe.

As part of his new charge, Aganga has the unenviable task of exploring fresh grounds for more robust trade relations with the outside world. And this he has to undertake alongside developing alternative strategies on how best to attract more investments to help rouse the nation’s near prostrate economy.

The minister has already hit the road, running. At a recent parley with a cross section of his Diaspora compatriots, Aganga was reported to have hinted on the Federal Government’s plan to initiate a drive for the mobilisation of at least 10 per cent of the informal remittances made annually by Nigerians living abroad.

According to him, the government intends to float a special financial instrument which will be issued for sale to such Nigerians. Also in the scheme is the planned establishment of a mechanism to advise and properly guide those who are willing to invest but who may have lost touch with the prevailing investment trend in the country.

This new drive is apparently based on the popular postulation that Nigerians living abroad repatriate billions of dollars annually. Some analysts have even placed the amount at over $20 billion while suggesting that the bulk of such remittances end up in the hands of family members back home who use them for feeding allowances, funerals, payment of school fees and medical bills, and also for the construction of exquisite country homes on behalf of their overseas benefactors.

But this multi-billion dollar assumption may be flawed if a recent revelation by Fola Kehinde, executive chairman of the African and Caribbean Chamber of Commerce and Enterprise (ACCCE) in the United Kingdom, is anything to take away.

Kehinde was at the head of a trade delegation which visited Port Harcourt, recently. And while speaking during a luncheon jointly organised by his chamber and the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), he was reported to have said that Diaspora Nigerians repatriate about $60 million (N9 billion) annually.

It is already obvious that Kehinde’s figure is a far cry from the $2 billion (about N300 billion) which the nation is targeting from its surmised yearly diaspora remittances.

Even as comparatively meager and ludicrous as Kehinde’s figure appears, it will be rather too hasty to dismiss it with a mere wave of the hand until an authentic official figure is made available. Unfortunately, there is hardly any such record anywhere because Nigeria had never reckoned with the economic potentials of her Diaspora citizens until now.

Apart from those who became foreign citizens by birth and, perhaps, students who won government scholarships to attend foreign schools and who chose to stay back on completion of their studies, the Nigerian Diaspora comprises mainly of emigrants whose movements where based on economic considerations. They are mostly people who fled the country during the infamous brain drain of the 1980s when the then military governments slammed an enduring embargo on employment as part of the harsh austerity measures of that era.

In those years, anybody who got disgusted with the system and sought to travel out of the country in search of better opportunities was seen as being lily-livered. Such was readily branded an Andrew and caricatured to no end. State-sponsored newspaper cartoons, radio and television jingles were massively deployed in this exercise. Yet the migrants remained undeterred. The lure of the thriving economies of Europe, Asia and the Americas was too tempting to resist. University teachers and other professionals left in their droves. Lesser folks who couldn’t afford an escape via the normal exits, trekked through the treacherous Sahara Desert.

Like their counterparts from other parts of the developing world, most of these migrant Nigerians have, over the years, laboured honourably to achieve successes in their various countries of domicile; so much so that their once scornful home-nation is now more inclined to show greater interest in their affairs and to also seek ways of involving them in national development.

It is apparently in realisation of this new resource base that the House of Representatives Committee on the Diaspora, working with Nigerians In Diaspora Organisation (NIDO), is sponsoring a bill for the establishment of a commission for Nigerians living abroad.

Spearheaded by the committee’s chairman, Hon. Abike Dabiri-Erewa, the bill seeks to recommend the involvement of such Nigerians in policy formulation and execution with a view to drawing from their reservoir of human, capital and material resources for the overall development of the country.

Countries like Mexico, Chile, Poland, Philippines, China and even our sister West African nation of Sierra Leone each has a long-established Diaspora institution that has been very vibrant in overseeing the welfare of its migrant population. And now that it has become fashionable for nations to facilitate the integration of their Diaspora citizens in the development of the homeland, the above-mentioned countries stand on a better moral ground to engage in such endeavour.

Sierra Leone’s approach is particularly instructive here. According to a source, “Sierra Leone’s Office of the Diaspora is directly under the Office of the President. It encourages the return of professionals and other experts from the Diaspora in order to fill critical human resources gaps within the country’s government. Specifically, the office provides a list of jobs in government departments, a list of educational institutions and professional associations in Sierra Leone, contact details of government officials, and information on dual citizenship and other acts.”

Again, Nigeria’s policy makers should avoid the delusion of thinking that patriotism alone is sufficient to guarantee a steady inflow of Diaspora investments. Of course, let it not be lost on anyone that the Diaspora comprises Nigerians with dual citizenship which invariably translates to double allegiance. Therefore, to assume that these Nigerians will, just for mere love of country, sell off their stakes in some blue chip and gilt-edged securities at the world’s most prestigious stock markets and have the proceeds re-invested in the stocks of a local African bourse, is to believe the absurd.

It will surely take more than guaranteed ministerial slots, security reassurances and sustained executive appeals to convince canny Diaspora investors that it is now safe to plough their hard-earned savings into the funding of development projects back home. Certainly not while they still read about high-level bribery and corruption scandals, wanton waste of public resources, bad roads and general decay of transport infrastructure, bureaucratic bottlenecks, unreliable electricity supply, insecurity of lives and property, multiple taxation, bank failures and frequent changes in government policies.

Like Dabiri- Erewa advocates, Nigeria should as well seek the political integration of her Diaspora citizens by establishing overseas voting centres to enable them participate in the nation’s democratic process. It will be utterly ridiculous to know that these foreign-based Nigerians vote in the general elections of their host countries whereas they hardly have a say in the election of the very politicians who will oversee the management of the proposed Diaspora Funds Pool.

Also, and as has already been done in a few states (including Rivers), the Federal Government should always lend the economy to periodic assessment by one or more of the American and world-renowned independent credit rating firms of Fitch, Standard & Poor’s, Moody’s and Duff & Phelps. That way, Diaspora Nigerians and, indeed, the rest of the investing world will be better positioned to make informed judgments.

Ibelema Jumbo

Business

Chivita, Hollandia Reward Outstanding Trade Partners At Annual Conference

Published

22 mins ago

April 29, 2024

The Tide

Chivita| Hollandia (CHI Limited) leading fruit juice and value-added dairy manufacturer in Nigeria has rewarded its long standing distributors at the recently held 2024 Distributor Conference. The event with the theme, “Break Boundaries Exceed Expectations” served as a platform to recognise and reward the exceptional contribution of the distributors and wholesalers who play a critical role in Chivita|Hollandia (CHI Limited) success and business goals for the year.
The Distributor Conference was held in two sessions. While the morning session featured keynote addresses, industry insights and brand immersion experience, the evening session was a cultural display of elegance and funfair that culminated in the award presentation and recognition of the contribution the trade partners made to the company in the 2023 year under review.
A key highlight of the event was the award ceremony which acknowledged outstanding trade partners in various regions across the country. The awards recognized commitment, dedication, and outstanding performance in areas of sales growth, brand promotion, and market expansion.
Eelco Weber, Managing Director, Chivita|Hollandia (CHI Limited), stated that the company’s success story is incomplete without the strong partnerships it has built with trade partners. “Today, we celebrate not only the achievements, but the collaborative spirit that has made our growth possible” he said.
Bola Arotiowa, Chief Commercial Officer, Chivita|Hollandia (CHI Limited), in his statement revealed that, the event which was first of its kind will continue to be an annual meeting to enable the company work more closely with its distributors, share insights and action points, help the trade partners familiarize themselves with the company’s goals and objectives for each year, and serve as a driver for mutual success.
“Our distributors are the backbone of Chivita|Hollandia (CHI Limited). Their relentless efforts in distributing our products, promoting our brands, and expanding our reach across the nation is truly commendable. As the bridge between us and our valued consumers, it is very important to reward their hard work and dedication for being an essential part of the Chivita|Hollandia (CHI Limited) family. Together, we will continue to deliver great products to our conusmers which in turn will deliver value to them”, Mr. Arotiowa added.
Speaking at the conference, HajiyaBilikisuSaida, Chief Executive Officer of Smabirm Nigeria Limited, who won the Outstanding Distributor of the Year in North 1 region, and got a reward of two million Naira worth of Chivita|Hollandia (CHI Limited) products expressed delight at the company’s recognition, and stated that the awards served as a way to inspire distributors to do more and put in more effort, which in turn would help both the distributors and the company to grow.
Other outstanding performance distributors of the year rewarded with a two million Naira worth of Chivita|Hollandia (CHI Limited) stock include, Sunny Chuks Limited for East 1 region, MRS FA & Sons Limited for East 2 region, Hussakas Ventures for North 2 region, Rookee 1388 Ventures for Lagos 1 region, Pik N Pil Ventures for Lagos 2 region, FaithJoe Event Management Limited for West 1 region, and Progress Family Nigeria Enterprise for West 2 region.
The annual Distributors Conference aims to strengthen the bond between Chivita|Hollandia (CHI Limited) and its trade partners. This collaborative approach fosters mutual growth and ensures the continued success of the brands in the Nigerian market.

Business

AXA Mansard Backs Female-Owned MSMEs With N1.4m Grant

Published

2 hours ago

April 29, 2024

The Tide

A global leader in insurance and asset management, AXA Mansard, has supported three female-owned MSMEs with business grants totaling 1.4 million to boost their operations.
This, the company said, is part of its commitment to women and the Medium, Small, and Medium-scale Enterprise (MSME) sector in the country.
The three businesses were successful at the International Women’s Day Pitch Competition, organised in partnership with SME 100 Africa in Lagos.
According to the Head of Marketing, AXA Mansard, Olusesan Ogunyooye, the competition, which is aimed at supporting female entrepreneurs in Nigeria, “is another way AXA is demonstrating its commitment to the causes of women and stimulating the MSME sector in Nigeria”.
The business pitch competition received numerous entries from women across different sectors, but after a rigorous selection process, shortlisted participants were selected to participate in the competition.
Ogunyooye said “the programme provided a unique opportunity for women from various works and socio-economic classes to showcase their innovative ideas and solutions in sectors such as food, tech, fashion, and fragrance, creating an atmosphere filled with excitement, enthusiasm, and a strong sense of community”.
He stressed the importance of investing in women, saying it is not just the right thing to do, but also aligns with AXA’s purpose of acting for human progress.
He explained that AXA believes the future of women should not be at risk, hence investing in their economic empowerment is a crucial part

Business

Fuel Scarcity’ll Last For Two More Weeks -IPMAN

Published

2 hours ago

April 29, 2024

The Tide

The Independent Petroleum Marketers Association of Nigeria, IPMAN, said yesterday that the petrol scarcity currently spreading to more states across the country will take at least two weeks to normalise.
This is even as the Nigerian National Petroleum Company Limited, NPCL insisted yesterday that it has adequate stock of the product.
However, the Public Relations Officer of IPMAN, Chinedu Ukadike, said the product is not available in the country.
He said it has become a bit of a challenge to source the product because most refineries in Europe are undergoing turnaround maintenance.
Ukadike also blamed the acute shortage in supply on importation bottlenecks and the slow pace of marketers’ licence renewal by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.
He disclosed that only 1,050 marketers out of 15,000 have had their licences renewed by NMDPRA.
He said: “The situation is that there is no product. Once there is a lack of supply or inadequate supply, what you will see is scarcity and queues will emerge at filling stations.
“On the part of NNPCL, which is the sole supplier of petroleum products in Nigeria, they have attributed the challenge to logistics and vessel problems.
“Once there is a breach in the international supply chain, it will have an impact on domestic supply because we depend on imports. I also have it on good authority that most of the refineries in Europe are undergoing turnaround maintenance, so sourcing petroleum products has become a bit difficult.
“NNPC Group CEO has assured us that there will be improvement in the supply chain because their vessels are arriving. Once that is done, normalcy will return. This is because once the 30-day supply sufficiency is disrupted, it takes two to three months to restore it.
“We expect that by next week or so, NNPC should be able to restore supply and with another week, normalcy should return”.
On challenges faced by marketers in renewing their licences, he said: “NNPC has said the marketers who have not been able to renew their licences will not be allowed to remain on their portal which has been shut for some time now. Because of this, we have not been able to request new products.
“At this nascent period of deregulation, you will discover that this leads to scarcity, even when the product arrives. As it is now, even by their data, out of 15,000 marketers that are on the portal with licences, only 1,050 renewed their licences.
“The requirement for renewal by NMDPRA is so much. Marketers are facing a hostile environment. NNPC placed a deadline of April 15, 2024, for marketers to renew their licences.
“We are, therefore, appealing to NNPC to extend this deadline and also to NMDPRA to hasten the release of licences of marketers who have completed their processes, and also reduce bottlenecks around licence renewals”.
However, reacting to the crisis yesterday, Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, expressed optimism that the long queues will clear in the coming days, adding that NNPC Ltd has adequate stock.
He stated: “The Nigerian National Petroleum Company Limited, NNPCL, wishes to clarify that the tightness in the supply of Premium Motor Spirit currently being experienced in some areas across the country is a result of logistics issues and they have been resolved.
“It also wishes to reiterate that prices of petroleum products are not changing. It urges Nigerians to avoid panic buying as there are sufficient products in the country.”
Similarly, the Chief Executive Officer/Executive Secretary, Major Energy Marketers Association of Nigeria, Mr. Clement Isong, said: “As the NNPC Ltd said, there were logistics issues and they have been resolved. The marketers who have fuel, are working round the clock and the queues will be cleared in the coming days.”
However, the shortage of petrol witnessed in Nasarawa, Niger, Abuja, the Federal Capital Territory, FCT, last week, spread to Lagos, Oyo, Osun and other states, weekend, thus affecting the movement of goods and persons and by extension, the nation’s economy.
In Lagos, motorists and other users woke up yesterday to witness long queues at the few filling stations which had the product to sell, while many outlets belonging mostly to independent marketers, without the product, were closed.
However, some major marketers, including 11 Plc and NNPC Ltd, with stocks sold the product at over N600 per litre, while the few independent marketers with the product sold it at between N650 and N700 per litre, depending on location.
Checks by The Tide’s source indicated that many motorists and other users were compelled by circumstances to patronise black market operators who openly sold the product along Ikorodu Road, Isolo and other locations in jerry cans at between N900 and N1,000 per litre.
Further checks indicated that transporters increased fares by 100 per cent to cover the high cost of petrol.
For instance, commuters paid N2,000 from Mile 12 to Mile 2, a distance that used to cost them N1,000, while others paid N1,000 from CMS to Mile 2, which previously cost about N500.
The fuel situation in the ancient city of Kano worsened yesterday as most of the petroleum stations were shut.
Vanguard checks observed long queues in the few filling stations still dispensing the product in the state capital.
It was observed that independent marketers and some major marketers who were seen selling fuel sold it as high as between N850 and N900 per litre.