Foreign Direct Investment talks top the centre stage Thursday between Nigeria and the Canadian investors with the Vice President Namadi Mohammed Sambo leading twelve governors and ministers to seek woo investors to Nigeria, which has also resulted in the signing of economic promotion agreement between Nigeria and Canada.
This was the hallmark of the Canada Nigeria Investment Conference attending by leading Nigerian and Canadian investors.
Vice President Sambo who led the Nigeria’s delegation to the conference said at the opening speech assured the Canadian businessmen and investors that the issue of insecurity in the country would be a thing of the past, as the federal government would ensure soon that terrorism and other violent crimes are a thing of the past.
He also informed the Canadian investors that their economy remains the best to do business in the entire G 20 economies of the world and that the trade relations between the two countries have grown from $ 700 million in 2007 to more $3 billion in 2012, explaining that it was for this reason that both countries agreed to sign the Nigeria-Canada Trade Promotion Agreement which was signed Wednesday in Ottawa Canada.
According to Vice President Sambo, the signing of the trade promotion deal is in line with the Bi- National Commission that was signed between Nigeria and Canada on April 23 2013. Sambo told the Canadian investors that the oil reserve of Nigeria currently stands at over 28.2 billion cubic barrels, while the gas reserve stands at 165 trillion cubic metres. He said that Nigeria will ensure quick transfer of profits, naturalization of investors that seek to become citizens of Nigeria and that there would be no restriction of profits and as well as ensure visa grants at the point of entry.
In his submission at the venue, the Minister of Trade and Investment, Olusegun Aganga told the Canadian Government to emulate the United States Government that set aside $13.5 billion grants for its investors that are willing to invest in Nigeria. The Minister who said that Nigeria remains the best country for investment said that in the nearest future that Nigeria, China and India would become the best country for investment, explaining that at the moment that the Nigeria economy is growing at more than 7 percent in the last 14 years.
The Minister explained that in the ability of the federal government to fight corruption and ensure free electoral system, that over N90 billion was spent in 2011 to ensure a free and transparent election because free and fair elections remains one of the basic ways to guarantee a free and fair election. He equally said that as part of the transformation agenda of the federal government that there is freedom of speech in Nigeria with the Freedom of Information Action signed in 2011. He said that the government is gradually ensuring a total judiciary reforms.
According to the Minister of National Planning Commission, Dr. Shamsdeen Usman, Nigeria have GDP of $900 billion and $4000 national minimum income by 2020, urging the Canadian investors “to ignore stories they hear about Nigeria, as they are not true of what is on the ground”.
In his comment at the occasion, the Minister of Foreign Affairs, Olusegun Asheru said that as part of the federal government new policy drive of economic diplomacy that ambassadors are the foot soldiers to drive the fight for Foreign Direct Investment. All Nigeria’s ambassadors, he said have been directed to commence drive to hold economic conferences to bring direct investors in to the country.
At press time, the following governors of Rivers, Akwa Ibom, Kaduna, Plateau, Bauchi, Anambra, Abia, Gombe and the Ministers of Transport, Education, Federal Capital Territory, Housing and Urban Development, Power and various Nigerian industrialists were attending the conference. The chairman of the PDP, Bamanga Tukur, National Treasurer, Bala kaoje and the National Publicity Secretary of PDP, Olisa Metu are also attending the conference that is expected to end by Saturday.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
The Lord Mayor of the City of London, Mr. Roger Gifford, Thursday described the Nigerian Stock Exchange (NSE) as the gateway to African capital markets, saying the London Stock Exchange (LSE) and the City of London would work with the NSE to enable it attain that leading role in the Africa.
Speaking at a United Kingdom-Nigeria Investment Partnership Forum in Lagos sponsored by the Guaranty Trust Bank Plc, Gifford said the NSE was currently number two in Africa but given the growth potential of the Nigerian economy and the reforms taking place, the exchange is already being positioned as the gateway to African capital markets. According to him, the existing relationship between LSE and NSE has been yielding positive results, which has led to the listing of three Nigerian banks on the LSE. He said his visit was to promote the trade and investment relations between UK and Nigeria, adding that Nigerian firms can access the deep international pool of capital of $1.8 trillion through the LSE.
Gifford disclosed that African-focused companies listed on the LSE have raised over £4.2 billion between 2008 and now, assuring companies that the LSE was to assist them in further international capital raising. In his welcome speech, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, said it was deliberate policy of the exchange to improve collaborative efforts with other exchanges to ensure that listed companies and investors get better services. Onyema noted that efforts of the NSE to restore investor confidence have paying off as the market grew by 34.5 per cent in 2012 and has recorded a growth of over 18 per cent so far this year.
Also speaking, the Deputy Managing Director of GTBank, Mrs. Cathy Echeozo, said there are immense opportunities for deeper partnerships between the UK and Nigeria which private enterprise can also explore. According to her, GTBank has always played to its strength both locally and internationally, saying the bank was the first Nigerian company to take advantage of the capital market opportunities in the UK market to raise both equity and debt capital to fund its growth aspirations.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Chairman of Seplat Petroleum Development Company Limited, Dr. ABC Orjiako, has stressed the need for transparency in business and adherence to corporate governance global best practices as a corollary for increased investment. Orjiako made the contribution as a panelist at the “Investor Risk in West Africa” Breakfast Session convened by FTI consulting in London on Fiday April 24. The session was chaired by the former Deputy Secretary General & Chief of Staff of the United Nations under Kofi Annan, Lord Malloch-Brown.
Orjiako noted that “when we speak about transparency and corporate governance in Nigeria, we should look from two perspectives; the previous period when the government did not play an active part in encouraging transparency and the current dispensation where the government is actively promoting the entrenchment of global best practices and the rule of law by tackling bribery and corruption and encouraging corporate governance best practices in corporate Nigeria.” Making a connection between good corporate governance practices and investment growth, Orjiako noted that the present state of affairs has played a huge part in the increased inflow of foreign direct investment.
He also spoke about the ongoing divestment by the International Oil Companies (IOCs), arguing that the success of the still-evolving exercise is predicated, mostly, on transparency and adherence to corporate governance principles. “The oil divestment has led to a lot of investment in the country with a lot of local banks playing active roles in providing financing support. The situation has also created new opportunities for companies like Seplat,” he said.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
Modesty emits its own peculiar charm. Otherwise, the slight-build man poring over important-looking documents on a conference table in this expansive office could have easily passed for any other staff member of the National Airspace Management Agency. He was sporting a blue-themed print shirt.
Of course, the visitor from THISDAY knew who he was: Elder Mazi Nnamdi Udoh, the managing director/chief executive officer of the Nigerian Airspace Management Agency, better known by its acronym NAMA.
This man, who holds the traditional title Ugwu Aro, is a scion of a First Republic senator, Senator Henry Nwafor Udoh and his spouse Madam Uzoma Udoh. With his enviable credentials and pedigree much should be expected from him.
Since joining the agency in 1980 – following his graduation from the Nigerian College of Aviation Technology in Zaria – he had not only distinguished himself but also burnished his credentials by obtaining an Air Traffic Safety Electronics Licence at the School of Aviation in Langen, Germany. This is in addition to an MSc in air safety from London’s City University.
His eventual appointment on October 5, 2011 as the NAMA MD/CEO should really have surprised no industry-watcher. For he had prior to this appointment been the executive director for electronic and engineering services, the general manager of project and surveillance, the special adviser on projects monitoring to the Aviation Minister and once the airspace manager of the Ilorin International Airport.
But the name Udoh has become synonymous with the multi-billion naira Total Radar Coverage of Nigeria (TRACON) project, which delivers modern Air Traffic Systems at all Nigerian airports nationwide. On October 18 2010, while he was still the NAMA’s acting managing director, he was praised by President Goodluck Jonathan for his enviable record in the industry during the commissioning of the TRACON. TRACON, since its launch in Abuja, has tremendously improved the quality of air traffic services in Nigeria’s airspace and has since recorded more over flyers.
The project also earned the endorsement of the Senate Committee on Aviation, which was on a tour of airport facilities and project. The committee had indeed lauded the project as the most modern system for airspace surveillance.
Even with the arrow darts of criticisms trailing the project in the form of petitions, the committee’s chairman, Senator Hope Uzodinma had acknowledged that TRACON “is a project that has been justified.” The senator, however, scored the management of the project low “in terms of public perception”. TRACON, according to Uzodinma, currently remains the most sophisticated system in the world.
A maintenance arrangement has been sealed with Thales ATM of France for multi-million naira project. This agreement, which involves the training of the NAMA officials and unlimited repairs, would last for five years. Also under this agreement, Thales ATM has trained over 100 agency officials on the use of TRACON and would be training 12 of its engineers every year.
The TRACON project, which as its name implies guarantees a total coverage of the country’s airspace, comprises four Primary Radar and five Secondary Radar Heads. These are co-located in Nnamdi Azikwe, Murtala Muhammad, Malam Aminu Kano and Port Harcourt International airports. There are also five relay stations which serve as standalone Secondary Surveillance Radar located at Talata Mafara, Maiduguri, Numan, Obubra and Ilorin.
President Jonathan has hailed the commissioning of the project as another stride of his administration’s endeavour to “overhaul the aviation system from its past state of disrepair to conform to international standard.” The president continued: “Coming on the heels of the country’s attainment of the USA International Category 1 Safety Assessment Certificate, the feat today is an attestation of the country’s unwavering commitment in ensuring a safer, more secured and more efficient and reliable flight operations.”
It seemed to be one of those favourable twists of fate that the TRACON project had come at a time Nigeria had chalked up a category 1 status award by the international aviation community. He also saw it as a befitting gift for the country’s 50th anniversary.
Back in his office at the NAMA Headquarters, Udoh told his visitor from THISDAY that the project is more than just about total radar coverage. Among its other benefits is flexible route system, which enables a pilot flying from Lagos to London to independently choose the route he wants to fly from. “Following the route selection, the pilot would then input all essential flight data (such as the aircraft type, speed, altitude, ETD) into the onboard computer and inform the air traffic controller (ATC),” explains the NAMA official brochure. “The ATC would then open the airway for the flight, communicating with it only when it is necessary.”
There are also the integrated aircraft billing systems and spares, voice communication systems, display consoles, voice recording systems, very high frequency transceivers, voice recording systems and fibre optics.There are also both primary and secondary radars at the international airports.
In matters of air safety, the project makes Nigeria a force to be reckoned with and the third African country after Egypt and South Africa to attain this status. The project enhances both civil and military surveillance of aircrafts operating within the country’s airspace. The nine radar projects guarantee a combined coverage of 315 nautical miles.
The agency, according to Udoh, is equipped to handle about 500 aeroplanes and 3oo helicopters daily. Numerous foreign aircrafts overfly the country’s airspace en route other countries.
An increased number of aircrafts in the country’s airspace, he explained, had obliged the agency to take steps towards improving air navigation infrastructure. This includes the total radar and radio coverage of Nigeria and the performance-based navigation, which makes Nigeria the first country in Africa to implement it.
The influx of more foreign airlines into the country’s airspace is, no doubt, a tacit endorsement of its improved safety. Then, there is also the increasing demand by several airstrips and aerodrome operators for the agency’s assistance in air traffic services. Udoh dispelled the notion that the Nigerian airspace is unsafe since no airline should embark on any flight without receiving air traffic instructions from the control tower.
The secret to this vote of confidence is the agency’s training culture. The training of its personnel in different areas of traffic management has continued to hold in the US, South Africa and Egypt. According to Udoh, this investment in the training of its personnel has ensured that Nigeria meets the minimum internationally acceptable standards in air traffic services.
During a recent facility tour of the TRACON sites, newspaper editors were able to watch a live coverage of the country’s airspace. Signals were intercepted from moving aircrafts and were relayed to the air traffic controllers for the tracking of the aircrafts.
The 67 million-euro project, whose contract was awarded during President Olusegun Obasanjo’s administration to Thales ATM of France, has helped burnish Nigeria’s sullied profile in international aviation safety. This is after the country’s airspace was blacklisted in 2005. It is understandable therefore that the Jonathan administration is celebrating the fact that the project has re-launched Nigeria into global reckoning.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
President GoodluckJonathan, yesterday, said Federal Government had developed an industrial blue-print to ensure the complete development of the iron and steel industry to serve as a catalyst for the domestic and industrial development of the country.
Jonathan spoke after commissioning the 700,000 tonnes 5-Stand Tandem Cold Rolled Steel Plant, built by Wempco Steel Mill Limited at Ibafon, Ogun State, noting that the country would be producing about 12 million tonnes of liquid steel by 2020.
He said steel was one of the most important materials used widely for both domestic and industrial purposes throughout the world, explaining that this was why the Federal Government planned to develop the complete ecosystem of this sub-sector.
The President said his “administration has approved the Minerals and Metals Development Road Map, which was recently presented to the public stipulating time-bound targets for the sector,” pointing out that the strategies to be adopted would ensure the accomplishment of the set objectives of increasing steel production of three million tonnes of liquid steel by the end of this year and progressively increase to 12 million tonnes by 2020.
According to him, the steel sector was at the heart of his administration’s national development endeavour.
He described the building of the steel plant as the single largest private sector investment in the steel sector, and a another milestone in “our determination to reposition our steel sector to play a pivotal role in our match towards industrialisation and national transformation.”
On WEMPCO
Commending WEMPCO for its efforts in developing the country, he said: “By constructing this 700,000 metric tonnes per annum cold rolled steel here to compliment your existing investments in the country, Wempco has demonstrated strong belief and confidence in our economy. I thank you for keeping faith in our country.
“Steel is at the heart of any national economic development endeavour. As we all know, a vibrant steel sector contributes to GDP growth, facilitates exploitation of natural resources and generates economic activities in downstream industries.
“It also promotes job creation, the acquisition of technical skills, transfer of technology and the provision of machine parts and tools. In fact, no nation can industrialise without a vibrant iron and steel sector.
“With increasing globalisation and the growing strategic importance of Nigeria as a key emerging market, we are determined to provide the necessary incentives and support for the growth of the private sector. The steel sector offers immense economic opportunities for our country, which we have not fully exploited.
Industrial revolution plan
“This administration, however, aims to reposition this industry. The Ministry of Industry, Trade and Investment in conjunction with other MDAs, has developed an industrial revolution plan, which has identified the iron and steel industry as a focal sector.
“We are committed to improving our investment climate by providing and upgrading necessary infrastructure such as power, roads and rail. Our aim is to keep attracting foreign and local Direct Investment, DI, into key sectors of the economy that will create jobs, stimulate private sector growth, and contribute technology transfer and, ultimately, economic growth and wealth for Nigerians and Nigeria.
“Government will continue to encourage investors and investments in this and other sectors for the good of our country and her great people. We shall continue to support genuine investors that show interest in investing in Nigeria.
“We expect investors to reciprocate this gesture by showing greater dedication as well as transparency in their investment operations.
Security, self-sufficiency
“We are also working assiduously to bring the security challenges currently facing us under control. Reports from around the world indicate an unacceptable manifestation of insecurity largely orchestrated by individuals, who have no love peace and harmony among members of humanity.
“In this regard, we will continue to collaborate with our friends and allies to bring this menace of insecurity to an end.
“I would like to assure existing and prospective investors of government support as we strive for self-sufficience in local steel production.”
I strongly believe that self-sufficiency will open major downstream sector activities with the attendant massive job opportunities and economic empowerment for our engineers, technicians, artisans, fabricators, alike.”
“You all may recall that a few years ago, we had less than five functioning steel rolling mills and no cold rolling steel mill, but today, there are more than 15 functioning steel rolling mills producing reinforcing bars and three functioning cold rolled steel mills producing cold rolled flat sheet of which WEMPCO is one of them
“It is my hope that WEMPCO will continue to strive to expand its current production capacity to gradually meet the nation’s demand for flat steel sheets. I want to encourage WEMPCO to within the shortest possible time embark on full backward integration so as to produce Hot Rolled Steel, which is the major raw material for producing Cold Rolled Steel.’’
He however, urged Nigerians patronize locally made products, adding, ‘’We must support our industries and change our appetite for foreign made goods. This way, we shall all contribute our individual quotas towards the economic growth of our country and jobs and wealth creation for our kith and kin.”
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
The President, Oodua Peoples’ Congress (OPC), Dr Frederick Fasehun, says no amount of blackmail will stop the congress from resuscitating the Unity Party of Nigeria (UPN)as he also debunked insinuations that OPC had bagged a monthly N2.4 billion pipeline protection contract
Fasehun said this on Monday in a statement made available to newsmen in Lagos.
He also urged politicians not to make comments which are capable of heating up the South-West geo-political zone.
Fasehun lamented the recent comments credited to a political party on the resuscitation of UPN founded by late Chief Obafemi Awolowo.
Fasehun, the Chairman of the Committee for the Resuscitation of UPN, in his statement said the “UPN is an idea whose time has come. And no amount of blackmail will stop it.
“Those resuscitating UPN are committed to the legendary ideals of Chief Obafemi Awolowo, which always made the human person the centre piece of government policy.
“Like Awo, they are committed to the delivery of free, qualitative and affordable education and healthcare. We know how far they can go.”
Fasehun debunked insinuations that OPC had bagged a monthly N2.4 billion pipeline protection contract.
He said he had earlier addressed the press on the intention of OPC to stem pipeline vandalisation in the South West.
“OPC was only toeing the line of private security agencies formed by militants in the Niger-Delta who secured pipeline-protection contracts in their area.
“Equity and Federal Character dictate we should get a similar contract.
“And unlike the billions of Naira rampantly stolen from state allocations by politicians in authority in this part of the world, the pipeline contract will feed tens of thousands of families.
“Unfortunately, the Federal Government is yet to reply to our proposal, although we have been to Abuja to defend our proposal at several interviews,’’ Fasehun explained.
He said the congress had in October 2010 furnished the Federal Government with a comprehensive proposal to provide security for petroleum pipelines in the South-West.
The OPC president said this was in the wake of various incidents of pipeline vandalisation and oil theft.
“Nigeria loses a significant chunk of its revenue to pipeline vandals, apart from the social dislocation and loss of lives and properties resulting from vandalised pipelines.
“Everyone knows that OPC has the network, commitment and discipline to render this legitimate and patriotic service to protect pipelines.
“Not only will it provide jobs for about 30,000 Nigerians, it will satisfy the yearnings of Nigerians that oil be produced and pumped through local refineries and pipelines in order to guarantee a reasonable pump price,’’ he said.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
The Nigerian Maritime Administration and Safety Agency (NIMASA) said at a meeting between NIMASA and oil companies operating in Nigerian waters that the implementation of the offshore waste reception facilities would take effect from this month.
It also said that a Sea Protection Levy has been introduced and must be paid by oil companies with loading receiving bays, oil rigs and pipe lines.
The NIMASA Director-General, Mr. Patrick Akpobolokemi, said that the objective of the regulation was to improve and sustain the marine environment by developing a maritime environmental management system through self-funding.
Akpobolokemi who was represented by the Executive Director, Maritime Labour and Cabotage Services, Mr Callistus Nwabueze Obiwuzie, noted that implementation of the Sea Protection Levy had commenced.
The agency put the rate payable per annum for offshore installations by oil companies at N15million, saying that oil wells for exploration would attract N10 million per annum from first day of April every year. It added that pipelines would attract N1, 500 per cubic metre of pipe line volume from high water mark to termination point offshore.
He added that the Federal Government in its commitment to ensure the protection of the marine environment and its resources ratified the Marine Pollution (MARPOL) convention, the major instrument of the International Maritime Organisation (IMO) on the prevention of pollution of the marine environment. NIMASA said the move was in line with the IMO’s Marine Environment Management Regulations 52 and 53 on Sea Protection Levy and Offshore Waste Reception Facilities.
The NIMASA Director-General noted that the convention was domesticated in 2012, to prevent degradation and of land and destruction of the ecosystem with attendant economic implications which oil pollution has caused the nation.
The Head, Maritime Environment Management, Mrs Abiodun Gunwa, explained that the agency introduced the Marine Environment Sea Protection Levy through a marine notice last August.
Gunwa said that the levy must be paid by all commercial operating vessels of 100 gross tonnage and above operating in Nigerian waters, adding that the same was applicable to potential oil polluters, installations and pipelines.
According to her, Nigerian-flagged vessels will pay as follows:
*between 100 and 1,000 gross tonnage would pay N500 per tonnage
*1,001 and 10,000 gross tonnage, N350 per gross tonnage
*10,001and 100,000 gross tonnage, N300 per gross tonnage
*100,000 and above, N250 per gross tonnage.
On the other hand, foreign vessels will pay the following levies:
*100 and 1,000 gross tonnage are to pay $0.1 per tonnage
*1,001 and 10,000 gross tonnage, $0.15 per gross tonnage
*10,001and 100,000 gross tonnage, $0.3 per gross tonnage
*100,000 and above, $0.3 per gross tonnage
Meanwhile, NIMASA said it will hand over the MT Green Dolphin to the Economic and Financial Crime Commission (EFCC) for alleged involvement in oil theft.
The NIMASA Director-General who disclosed this at a briefing in Lagos, promised also that the long-awaited disbursement of the Cabotage Vessel Financing Fund (CVFF) will commence this month.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
In recent times, there has been growing concern over the genuineness of Chinese involvement in Africa and Nigeria in particular. The concern is borne out of the fact that China in its appetite for oil, in particular, to fuel its growing economy, is busy buying oil blocks and mineral resources from existing investments at any cost.
The argument is that most Chinese companies are not ready to go into exploration which is very risky and capital-intensive. As a result, many believe that this will not lead to the ultimate development of the continent as well as generate the much needed employment and technological transfer for the continent’s growing population.
Truly, if China on continuous basis buys from existing facilities, when the proven reserves of crude oil in the country are exhausted, what happens to the unproven reserves? Who then will invest in it? But the widely accepted opinion about the aggressiveness of Chinese investment in Africa is not necessarily supported by available data. All in all, Africa does not account for a big proportion of China’s global activities.
According to UNCTAD Statistics, Chinese investment in Africa reached its height in 2008 when Africa accounted for almost 10 per cent of its total global Foreign Direct Investment from the 4.3 per cent in 2004. But in the following year, the figure fell roughly four-fold and in 2010, the number was almost negligible at 0.3 per cent.
A country by country breakdown of Chinese investment in the African continent according to the Heritage Foundation (China Global Investment Tracker Interactive, January 2012) shows that in 2012, China’s investment in Africa focused primarily on five countries – Nigeria, Algeria, South Africa, Democratic Republic of Congo and Niger.
The breakdown by country showed that Nigeria has had $15.42 billion net investment from China, Algeria $9.23 billion, South Africa $6.64 billion; Democratic Republic of Congo $6.55, Niger $5.26 billion, Egypt $3.27 billion, Libya $2.68 billion, Zambia $2.49 billion, Sudan $2.210 billion, Ethiopia $1.9.
In all of these, among China’s major investors in Africa are CNOOC (Nigeria), Sinopec (Angola), China Railways Construction (Nigeria), Sinomach (Gabon), CITIC and Chalco (Egypt), China Nonferrous (Zambia), Minsheng Bank (South Africa), SinoSteel (Zimbabwe), CNPC (Niger and Chad), and China Metallurgical and Sinohydro (DRC). All these enterprises invested in Africa actively in the period 2005–2008, but in 2009– 2010, their presence waned and in 2011, the only big Chinese investor in Africa was the China Railways Materials Commercial Corporation in Sierra Leone with total investment of $260 million.
Nigeria in entering into contractual agreement with these new found friends called Chinese enterprises, must ensure that all the terms of the deals are open and transparent. Nigerians, in particular must be carried along to avoid unnecessary suspicion. At the moment, the way most of the transactions are entered into do not suggest that the contracts are open, transparent and with good intentions.
When the Nigerian government did the last oil bid round, most of the Chinese and other Asian companies promised out of the box investment in other sectors of the economy, but none has been fulfilled. Some of those mouth-watering promises will never be met because the companies involved have long left the shores of Nigeria.
Strategic thinking requires that those involved in negotiating deals with the Chinese have at the back of their minds the ultimate goal of a sustainable economy for Nigeria.
Of course, this is not to say that business deals and investments in mines and oil fields by the Chinese are not important.
Trade between China and African countries has surged by an average annual 30 per cent for much of the past decade, driven by China’s appetite for oil and minerals, and its sales of clothes, cars, telecommunications and other goods to African markets. Investments in mineral or oil fields must go beyond simply buying up natural resources.
Nigeria in its attempt to attract investment from China must note what is happening around the continent and not confine its investment drive with China to oil and gas. China’s largest bank, ICBC at the moment owns 20 per cent of South Africa’s Standard Bank. Shenzhen-based Huawei Technologies, China’s biggest telecoms equipment maker, is pushing south from its established stamping ground in North Africa. Peer ZTE Corp. is another Chinese player growing in importance in Africa.
None of these companies have signified any intention to set up in Nigeria; they are only selling finished products. All the companies that are investing in Africa are making a lot of money. China knows too well that with developed markets either saturated or entry requirements too high, its firms see Africa as a great untapped market and it is exploiting to its advantage.
Based on perceived benefits from China, the Federal Government last month called for enhanced economic ties with the Chinese Government. The Minister of Foreign Affairs, Ambassador Olugbenga Ashiru, made the call at a meeting with Mr Zhong Jianhua, Special Representative, African Affairs for China, in Abuja.
Briefing newsmen after a closed-door meeting between both parties, Ashiru said that Chinese government’s investment in key sectors would facilitate economic growth. He said that both parties had also agreed to enhance relations at the international level. The developing relationship between Nigeria and China should go beyond rhetoric, but based on transparent deals open for all to see; not just in oil blocks but across all sectors of the economy. That is the only way Nigeria can truly benefit from China.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ORGANISED labour in the nation’s financial sector, has said labour and its allies are perfecting plans to picket banks and other financial institutions for alleged unfair policies and practices especially refusal to allow union and retrenchment of workers without recourse to subsisting procedural agreement and best practice. National Union of Banks, Insurance and Financial Institutions Employees, NUBIFIE, named two old generation banks and one new generation bank (names withheld) as well as insurance companies among the worst culprits.
The union advised the affected banks and other financial institutions to jettison their perceived unfair labour practices and embrace decent employment policies and positive industrial relations to save the companies from the wrath of organized labour.
President of the union, Danjuma Musa, who spoke in Lagos, said the union had notified the affected banks of the impending actions, saying one of them was given a 14-day ultimatum that expired on April 2, 2013 and said the bank had not responded.
According to him, the union has been having a number of challenges confronting it and noted that some of the challenges were government policy induced consequences, while others were cumulative effects of inefficient supervision by regulatory authorities thus, encouraging or creating enabling environment for corporate miss-governance and other impunities by industry operators.
“In specific terms, denial of workers their rights to freedom of association and to unionism, continuous arbitrary retrenchment of workers without recourse to collective agreement and consultation with the union, deliberate subversion of reconstitution of the Joint Negotiation Council (JNC) by withholding support to Nigeria Employers Association of Banks, Insurance and Allied Institution (NEABIAI) an umbrella organization for Employers in the Industry, exerting undue pressure on workers’ to meet-up with unrealistic deposit drive target, in the process and in some cases rendering or exposing workers to abuse and dehumanization with the attendant psychological trauma, have all become the hallmark of management practices in trying to achieve their corporate goals.
“The understanding the union has always displayed in the face of these challenges and more, has unfortunately emboldened various management to embark on various forms of unpopular policies against workers,” he said.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
The Nigerian Stock Exchange (NSE) has announced the selection of 14 companies as Designated Advisors, DAs, for soon to be launched Alternative Securities Market, ASeM.
Mid-sized and other upstart companies are expected to access the market through ASeM after its introduction.
The companies appointed include; BGL Securities, UBA Stockbrokers, Marina Securities, FSDH Securities, Capital Asset, EDC Securities, and CardinalStone Securities.
Others are Fidelity Securities, Partnership Investment, Investment One, Primera Africa, and Magnartis Finance & Investment, ARM Securities and Morgan Capital Securities.
At the unveiling of the qualified designated advisors, the NSE Executive Director, Market Operations, Mr. Ade Bajomo, said that the 14 companies were selected after rigorous screening of the 21 applications that was received.
He revealed that the DAs would be available to provide professional advisory services to the mid-size companies before and after their listing.
It would be recalled that the earlier disclosed plan to overhaul its second-tier market to an Alternative Securities Market (ASeM), in order to drive listing by upstart companies.
The ASeM will open a new window of opportunity for emerging companies with high potential for growth in Nigeria to access the capital market under less stringent rules and requirements to raise long term, low cost capital.
Commenting, the Executive Director, Business Development of The NSE, Mr Haruna Jalo-Waziri, had stated that “The Nigerian Stock Exchange is a staunch believer in the critical role of emerging enterprises in a developing economy and as such we have taken the bold step of providing a platform for sustainable growth and development of these companies. The ASeM Board will allow issuers; especially indigenous companies the opportunity to inject relatively low cost and long term capital into their businesses through flexible rules that recognize their growth potential rather than the size of operation.”
Shedding light on the possibility of most of the companies expected on the ASeM board being without any professional guidance and therefore being unable to meet the post listing requirements, Mrs Taba Peterside, GM, Listings Sales and Retention, NSE said “Designated Advisers (DA) will be required for all companies listed on the ASeM Board of the Exchange to ensure compliance with all the requirements and obligations of the Alternative Securities Market. The DAs will provide professional resources to qualifying companies for guidance and advice on securities-related matters”.
Information gathered from within The Exchange revealed that The NSE has already completed the selection process for the DAs and are at the verge of announcing the successful applicants in few days ahead of the official launch of the ASeM Board slated for later this month.
Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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