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B I M O N T H L Y

A publication of Nigerian-British Chamber of Commerce

Working with NBCC to Invest in Nigeria/Britain

The Trade Mission Special Edition

The Nigerian Business Environment: Navigating the Rocky Road Ahead

Nigerian Music as a Global Phenomenon

Interview with

Prince Dapo Adelegan

Celebrating the Queen at 90 NETWORK | JUNE 2016

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FEATURES - COVER STORY VOLUME 1 ISSUE 4

8

12

24

THE CENTENARY ISSUE

cused GEC s and in a of our eople. ibility s and ves in ms to frica’s on the

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BA bi-monthly I M publication O N ofTNigerian-British H L YChamber of Commerce OMENKAMAGAZINE.COM

VOLUME I ISSUE 4

www.globalenergyco.com

JUNE 2016 1 OMENKA MAGAZINE VOLUME 1 ISSUE 4

Contents 6

From the President

8

From the DG’s Desk

9

Editor’s Note

6

Mission & Vision Statements, Core Values

7

Member Spotlight

7

Executive & Council Members

11

Nigerian-British Chamber of Commerce Trade Mission to the UK

20

Events in Pictures

22

Celebrating the Queen at 90

COVER STORY

24

Interview with Prince Dapo Adelegan

TRADE & INVESTMENT

28

Building Closer Links between UKTI and the Nigerian British

GREETINGS

OUR CHAMBER

EVENTS

Chamber of Commerce

OPPORTUNITIES 30

Profile of the Nigerian - British Chamber of Commerce

32

Working with NBCC to Invest in Nigeria/Britain

36

Export, the New Frontier

38

The Investment, Advocacy and Mobilization Committee (IAMC) Chairman on The N300m Debenture Issuance for the NBCC Plaza Project

44

Nigerian - British Chamber of Commerce Policy Statement

48

The Wealth of Nations

54

Naira: To Devalue or Not

ENTERTAINMENT

56

Nigerian Music as a Global Phenomenon

SPORTS

60

Nigerians in the British Football Leagues

ECONOMY

24, Modupe Alakija Crescent Ikoyi - Lagos, Nigeria T. +234 818 455 3331 +234 809 8027583 www.reviloco.com

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GREETINGS

COUNCIL MEMBERS

NEW MEMBER PROFILE

President Prince Adedapo .O. Adelegan

THE NIGERIAN-BRITISH CHAMBER OF COMMERCE is the foremost bilateral chamber of commerce in Nigeria. The chamber is accredited under the NACCIMA/CIPE, Washington, D.C. USA accreditation programme. There are over 350 corporate members who are found in all sectors of the Nigerian economy. Our membership base ranges from the small and medium enterprises to large scale multinational corporations and government agencies. We organize workshops, business luncheons, seminars, trade fairs, trade mission, members’ evening and other such activities that aid trade and investment.

Mission To continuously encourage and promote mutually beneficial trade relations between Nigeria and Britain

Vision To be the foremost channel of trade and commerce between Nigeria and Britain

Core Values Integrity Co-operation Commitment Respect THE NIGERIAN-BRITISH CHAMBER OF COMMERCE Olubunmi Owa Street, off Admiralty Way Opposite CBC Towers, Lekki Phase 1, Lagos P. O. Box 9803, Marina Lagos, Nigeria T: +234 1 4540395 www.nbcc.org.ng

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Deputy President Mr. Akin Olawore Immediate Past President Prince Adeyemi A. Adefulu, MFR Mrs. Theresa Ananyi Mr. Ray C. Atelly, frpa

Greetings from the President Dear Distinguished Member, Our publication returns with engaging content geared towards promoting co-operation between Nigeria and British businesses. In fulfilling our objective, this special issue documents our trade mission to the United Kingdom, holding in the month of June. Splashed on our pages are photographs of previous events including our courtesy visit to the Ogun State Government, our insurance colloquium and of course, Her Majesty, the Queen’s 90th birthday anniversary. Several incisive articles are also lined up for you including; export as a new frontier, which comes on the heels of the federal government’s thrust to diversify the Nigerian economy and halt an over dependence on crude oil; a discussion on whether to devalue the naira or not also becomes a focus of attention, as well as the sovereign wealth of nations. Sports and entertainment are not left out and provides a relaxing edge as Nigerian footballers that play in British football teams are featured in this edition, as well as Nigerian musicians making great strides globally.

Hon. Treasurer Mrs. Bisi Adeyemi Patrons Mrs. M. R. A. Adeleke, OON Chief (Dr) Michael Olawale-Cole CON Senator (Chief) ‘Dipo Odujinrin, MFR Mr. Akinola Akintunde, FCA Arc. T. C. Awagu Mr. Oludayo Sonuga Chief (Dr) C. O. Ogunbanjo, OFR Alhaji Aminu A. Dantata Alhaji Aliko Dangote

Prince Dapo Adelegan President and Chairman of Council

Mr Paul Arkwright Chief A. C. Okafor Chief (Dr) Orji Uzor Kalu, MON Asiwaju Bola Ahmed Tinubu Chief L. A. Shoyombo, JP Otunba Olasubomi Balogun, CON Chief Kola Daisi Chief Adekunle Ojora, CON

Hon. Life Vice Presidents Chief G.A. Mabiaku Chief Olusola Faleye Chief A. O. Apara Erelu O. O. Aina Mr. Dayo Lawuyi, MON Mr. Sola Oluwole Mr. C. D. M. Le Clair, OBE, OON Mr. Abi Odojukan

Mrs. Beatrice A. O. A. Fisher Mr. Peter Walker Asiwaju Fola Osibo Mr. P. O. Oluwi Alhaji (Dr.) Dalhatu Tafida, OFR Barr. P. C. Abuka Iyalode Alaba Lawson, MFR, JP Mrs. Ladun K. Lawal

Council Members

All these and more are lined up for you. I wish you a pleasant read!

Vice Presidents Mr. Joe Dada Mr. Alan Davis

Mr. Kayode Falowo Mr. Uwamai Igein Engr. M. O. Aminu Dr. Obiora Chukwuka Mr. S. O. Oyefeso Mr. Babatunde T. Bello Chief ‘Bintan Famutimi Mr. Osagie Okunbor Mr. Tunde Ogunde Dr. Ikenna Nwosu Mr. M. O. Adeleye Alhaji I. A. Bello Pastor Ituah Ighodalo Mr. Owoseni Adetu Mrs. Bola Adesola Dr. A.B.C. Orjiako Mr. Kolawole Olayinka

Chief Keith Richards, OBE Princess Sarah Sosan Dr Adesola Kazeem Adedutan Mr. Ahmed Bashir Mr. Jeffrey Spears Mr. Kenneth Opara Mr. Sesan Shobowale Mr. Sola Oyetayo Mr. James Houston Chief Adesumbo Onitiri Mr. Agele J. Alufohai Mr. Hakeem Ogunniran Prince Bimbo Olashore Mr. Akin Osuntoki Mr. Adebayo Sanni Mrs. Clare Omatseye

BERGER PAINTS NIGERIA PLC. Berger Paints Nigeria Plc., which commenced operation in Nigeria on January 9, 1959 has grown to be a leader in the coating and allied industry in Nigeria - a legacy inherited from Lewis Berger, the German colour chemist who founded the Berger Paints’ dynasty in London, in 1760. We take pride in being a company with an on-going commitment to the development and manufacture of paints and allied coating which are at par with modern technology, are environmentally friendly and formulated to withstand harsh tropical conditions. The company has a reputation for being the first in setting standards in the paint industry in Nigeria. It has pioneered a wide range of specialty products that are much sought after in this dynamic and everchanging market. Berger Fire Retardant Texcote, a textured finish we first introduced into the Nigerian market has been very successful in capturing the imagination of many consumers. Berger Rufhide, wall putty with superior adhesive strength over conventional P.O.P and other screeding materials, first of its kind in the Nigerian market was also pioneered by Berger Paints. Our other well known brands such as Luxol (Clinstay), Super Star, Classic, and so on, continue to enjoy extreme popularity across Nigeria today. Operating in with 16 depots in 6 business segments; decorative/architectural finishes, Industrial coatings, marine & protection coatings, Berger/KCC heavy duty coatings, automotive/vehicle refinishes, wood finishes and preservers, Colour World centres and a countrywide distribution network of dealers and mega dealers in strategic locations spread throughout the country, the company is well placed to serve the growing requirements of the Nigeria market. In 2012, Berger Paints Nigeria Plc. Entered into partnership arrangement with the biggest heavy duty coating manufacturing company in South Korea, KCC Corporation to jointly serve the Nigerian paint and coating market. This partnership affords our customers the quality and durability that marine and protective market have found synonymous with the KCC marine and heavy duty brands.

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GREETINGS

GREETINGS

Editorial Board MR. RAY C. ATELLY FRPA (EDITOR-IN-CHIEF) MR OLIVER ENWONWU MRS YEMISI MOKUOLU MRS JOYCE AKPATA MS LADUN OGIDAN MS JESSICA ALETOR ART DIRECTOR OLIVER ENWONWU GRAPHIC DESIGNER RAZAK BOMBATA PHOTOGRAPHER OLA PHOTOS MEDIA SALES, ADVERTISING & DISTRIBUTION REVILO

From the

DG’s Desk

Esteemed Member,

I wish to welcome you to this special edition of the Network magazine. It is our desire to cover a wide spectrum of content is relevant to the interests of our members in Nigeria, as well as in the UK Network. We hope we have met this expectation as you read through this bumper package.

Welcome to this very special issue of our bi-monthly publication Network. It is indeed special because it also serves as a guide to our June trade mission to the United Kingdom, which promises to be most successful in promoting international trade between Nigeria and the United Kingdom. In this issue, we also keep you up-to-date with the Chamber’s activities with an insightful interview with our 14th president, Prince Dapo Adelegan, who speaks about his goals for the NBCC. Also included is more information on the progress made so far on the building of our new plaza, which will serve as our new secretariat. Events like our recent courtesy visit to the government of Ogun State, as well as our colloquium on insurance are also well documented in lavish photographs. Though public confidence in the Buhari-led federal government is eroding, we at the NBCC are keeping faith in his programmes to diversify the Nigerian economy with an article on export as a new frontier. Our focus on economy broadens with informative articles like value and investment opportunities between the UKTI and the NBCC.

R E V I L O

Revilo Company Ltd 24, Modupe Alakija Crescent, Ikoyi, Lagos T: + 234 818 455 3331, 809 802 7583 www.reviloco.com

Network is published bimonthly by Revilo Company Ltd on behalf of The Nigerian-British Chamber of Commerce. Reproduction in whole or part is forbidden

At last we have for your reading pleasure, an interview with the 14th president of our chamber, the NBCC. In it, he sets the agenda for his administration and looks forward with hope and expectations. and opportunities that abound in Nigeria, as well as opportunities for greater economic co-operation between Nigeria and Britain. We have a kaleidoscope of pictures that capture recent events in both countries, including those with great historical significance, involving Her Majesty, the Queen. As the Chamber embarks on a trade mission to the UK, which covers visits and activities in London and Liverpool, this special edition brings you details of the mission delegates as well as the exciting events that promise to make this Trade mission one of the best ever. In our next edition, you shall be served photos from this event. We hope you will make it a date to attend the next.

save with express permission in writing of the publishers. All material is compiled

To round off, enjoy your stories on Nigerian music as a global phenomenon, as well as Nigerian talent lighting up the British Premiership!

Editor’s Note

Cover

from sources believed to be reliable, but published without responsibility for errors

The Network magazine circulates in the UK, as well as in Nigeria. We have increased the pagination and circulation of this edition to ensure that copies are available with our partner chambers, the UKTI offices, and the Nigerian High Commission.

or omissions. Revilo accepts advertisements from advertisers believed to be of good

Joyce Akpata Director-General

We hope you enjoy reading.

repute, but cannot guarantee the authenticity or quality or objects or services advertised

Best wishes,

in its pages. The Network does not assume responsibility for unsolicited manuscripts, photographs or illustrations. Copyright

Ray C. Atelly, frpa Editor-in-Chief

worldwide of all editorial content is held by the publishers, Revilo Company Ltd. The name, Network is a registered trademark owned by The Nigerian-British Chamber of Commerce and cannot be used without its express written consent.

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OUR CHAMBER

Contributors

Nigerian-British Chamber of Commerce Trade Mission to the UK JUNE 13-17, 2016 Oliver Enwonwu Oliver Enwonwu is the founder and Chief Executive/ Managing Director of Revilo. He is an artist, curator, art administrator, brand strategist and writer. His expertise is built on 11 years of developing creative and intellectual content for clients. He holds a first degree in Biochemistry, an Advanced Diploma in Exploration Geophysics (distinction), Post Graduate Diplomas in Applied Geophysics and Visual Art (distinction) and a Masters in Art History, all from the University of Lagos. He writes regularly on art and investment for several important publications including the Vanguard newspaper, as well as speaks, moderates and participates in public events and discussions.

Ahmed Bashir

Ahmed Bashir is the Director, Trade and Investment, Nigeria and UK Trade & Investment (UKTI). He has held various other significant positions in the UKTI including Director, Operations and Marketing (December 2011 – March 2016), Marketing Director, Asia Pacific and South Africa (July 2011 – November 2011), as well as Head of Operations, Marketing Group & Chief Operations Officer (February 2011 – July 2011). In 2015, Bashir was awarded Member of the Order of the British Empire (MBE), for services to Equality in the Public Sector. (Middlesbrough, North Yorkshire).

MISSION OBJECTIVES This mission is aimed at attracting foreign investment to Nigeria with a focus on multi sectors particularly non-oil products and services. These include; Agriculture / Food, Creative Industry, Infrastructure, Property & Construction, Industry & Manufacturing, Oil & Gas and Power

regional interactions with the British Chamber of Commerce, the Liverpool & Sefton Chamber of Commerce, UK Trade & Investment and the Liverpool Commonwealth Association where delegates’ can learn how to access high growth markets

To show how to overcome the challenges of entry into the UK market. To develop partnerships between UK and Nigerian businesses

To engage with high-level business leaders in the UK, trade related government officials, and a number of UK-based chambers of commerce

To promote Nigerian goods and services in the UK

To explore potential for export of non-oil products from Nigeria

To participate in the International Festival for Business 2016 (IFB2016) in Liverpool, which is the World’s largest business festival, as well as

To showcase property and construction opportunities in Nigeria

Jessica Aletor Jessica Aletor is a Communications and Business Services Specialist at the Nigerian-British Chamber of Commerce. She is an event photographer and a social media strategist and holds a Masters degree in Industrial Relations and Personnel Management from the University of Lagos. She enjoys music, reading, and running.

Ray C. Atelly Ray C. Atelly, frpa is the Vice President of the NigerianBritish Chamber of Commerce. He has occupied various other important roles including Group Managing Director/CEO of PG Consulting Ltd, Group Chairman HT Group, (2006 – present), Chairman Imagia Italian Furniture & Interiors (2006 – present). Atelly is passionate about the greatness of Nigeria with a focus on integrated marketing communications, brand building, human capital development, training, youth empowerment, and business advancement. He is also an investor, business leader, mentor, a student of life and business holding membership of boards of several private sector establishments across many segments of the Nigerian economy.

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Ladun Ogidan

DELEGATES PROFILE Name: Prince Dapo Adelegan Designation: President and Managing Director Company: Celtron Nigeria Limited Address: 18A, Dapo Sholanke Close, off Admiralty Way, Lekki Phase 1, Lagos Email: info@celtrongroup.com Tel: +234 8057000007 Email: dpbenjamin@gmail.com Website: www.celtrongroup.com Business Interest: Trade Facilitation, Investment and Brokerage

Name: Mr. Akin Olawore Designation: C.E.O Company: Akinolawore & Co. Address: 8/10, Broad Street, Western House (5th Flr.) Lagos Tel: 08033065231 Email: olawore@gmail.com Website: www.akinolawore.net, www. brokerfieldres.com, www.baobabrealty. com Business Interest: Real Estate, Property Management & Construction

Ladun Ogidan is the Deputy Editor of Omenka magazine. She holds a first degree in Mass Communication from Covenant University, Nigeria. Ogidan is the Chief Operating Officer of Revilo. She is also Assistant Curator at the Omenka Gallery, and has co-ordinated several exhibitions home and abroad.

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Name: Ray Atelly, frpa Designation: C.E.O Company: HT Group Address: 37, Bode Thomas Street, Surulere, Lagos Tel: 08096711247 Email: ray@pgconsultingng.com Website: www.pgconsultingng.com Business Interest: IT Hardware Distribution, Advertising, Furniture and Public Relations Name: Mrs. Theresa Anayi Designation: Managing Director Company: KENDALL GROUP Address: 14, Warehouse Road, Apapa, Lagos Tel: +234 8033528234 Email: tessy@kendalltravels.com, tessy@tizeti.com Website: www.tizeti.com Business interest: Travel Consulting and Telecommunications Name: Chief Fola Osibo Designation: Managing Director/C.E.O Company: Promaconas International Limited Address: 2, Fola Osibo Road, off Adebayo Doherty Road Lekki Phase 1 Tel: +234 8034025101 Email: folosibo@yahoo.com Website: www. promaconasinternational.com Business Interest: Export Facilitation, Industrial Management Consultants, Publishing and Education Materials Name: Mrs. Joy Okwuadigbo Designation: Regional Director, Africa Company: Highbury Nigeria Limited Address: 252E, Muri Okunola Street, Victoria Island, Lagos Tel: +234 8054045022 Email: joy.okwuadigbo@highbury.ac.uk Website: www.highbury.ac.uk Business Interest: Further Education Colleges, based in the UK and Nigeria

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Name: Engr. Tunde Ogunde Designation: C.E.O Company: UNECON Associates Ltd Address: 18, Johnson Street, Ilupeju, Lagos Tel: 08033119674 Email: ogunde@uneconassociate.com Website: www.uneconassociates.com Business Interest: Engineering/ Construction Name: Mr. Babatunde T. Bello Designation: C.E.O Company: Romis Consultants Limited Address: 26, Association Avenue, Illupeju, Lagos Tel: 08033533365 Email: romisco2000@gmail.com Website: www.romisconsultants.com.ng Business Interest: Professional ServicesManagement Consultants, MSME Development, Pre-Investment Studies Name: Mrs. Ladun Lawal Designation: Managing Director Company: Ayojide Pharm Limited Address: 68, Cemetery Street, Ebute-Metta, Lagos Tel: 08034025101 Email: ladunlawal@yahoo.co.uk Website: Nil Business Interest: Pharmaceutical and Agric Products Name: Mr. Bamidele Ayemibo Designation: C.E.O Company: 3T Impex Consulting Limited Address: 25, Adebola Street, Off Adeniran Ogunsanya, Surulere, Lagos Tel: 08036522946 Email: bayemibo@3timpex.com Website: www.3timpex.com Business Interest: International Trade Consulting Name: Mr. Akan Mboho Designation: C.E.O Company: Mboho Works and Stevedores Limited Address: 3 Akan Jack Mboho Street Lekki Tel: 08028826514 Email: mbohoworks@yahoo.com Website: Nil Business Interest: Construction, Freight Forwarding, Haulage Services, Custom Brokerage & Warehousing

Name: Mr. Adejana Gbadebo Olujare Designation: C.E.O Company: Realty Point Address: Onigbogbo House, 29, Mobolaji Bank Anthony Way, Tel: 08059100256 Email: realtypointceo@gmail.com Website: www.deboadejana. com, www.realtypointltd.com, www.primeestatesng.com, www. findnigeriaproperty.com Business Interest: Real Estate, Property Management & Construction Name: Ogidan Oluwatoyin Stephanie Designation: Business Development Manager Company: Kingscourt Realtors Address: Plot 3211A Akin Ogunlewe Str, Victoria Island, Lagos Tel: 08036224201 Email: stephanie2k1ng@yahoo.com Website: www.kingscourtrealtors.com Business Interest: Leases, Sale, Property Management Name: Onafowokan Bolaji Designation: C.E.O Company: Bonas Technologies/Bonas Intl School Address: 84 Ajebo/Igbokuta Rd, Imota Ikorodu Lagos Tel: 08023020513 Email: bonastechnologies@gmail.com Website: Nil Business Interest: Education Training/ Agro Services Name: Mr. Gregory E. Nwakgo Designation: Managing Partner Company: Roseberg Legal Practitioner & Arbitrators Address: 6b Bendell Close Off Bishop Aboyade Cole Street, Victoria Island Lagos Tel: 08037149482 Email: greg@rosberglegal.com Website: www.roseberglegal.com Business Interest: Seeking for Franchise Opportunities

Name: Mr. George Oladeinde Samson Designation: C.E.O Company: Geogry Shelter Nigeria Limited Address: Plot 16, Ogunyomi Crescent Lakowe Phase 2 Ibeju Lekki, Lagos Tel: 08033901155 Email: georgyshelterpropertyltd@gmail. com Website: www.georgyshelter.com Business Interest: Real Estate and Trading Name: Saidat Bolanle Ogunrinde Designation: C.E.O Company: Bolfat Allahu Nig. Ltd Address: 52, Igbogbo Road, Ikorodu Lagos Tel: 08033477146 Email: bolfatayi@gmail.com Website: Nil Business Interest: Trading/Msme Name: Mr. Godwin Abiodun Oyefeso Designation: C.E.O Company: Successedge International Ltd Address: 17/19 Allen Avenue Ikeja Lagos Tel: 08037163281 Email: gosuccessedge@gmail.com Website: Nil Business Interest: Agriculture/Export Name: Mr. Vincent Ebere Okuta Designation: C.E.O Company: Kutascom Nig Ltd Address: 77 Bayo Oyewole Street Okota Lagos Tel: 08033448936 Email: kutascom@gmail.com Website: Nil Business Interest: Export Name: Mr. Prince Akinwale Ojomo Designation: Consultant Company: Global Property Partners Address: Olademeji Alo Street, Lekki Phase 1 Tel: 08033048820 Email: akinsoroy@gmail.com Website: www.deluxeresidences.net Business Interest: Real Estate, Property Management & Construction

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NIGERIAN-BRITISH CHAMBER OF COMMERCE MISSION TO THE UK Name: Rebecca Ellis Designation: Managing Partner Pomona Wealth Address: Pomona Wealth GmbH, Ebelstrasse 46,8044 ZurichSwitzerland Tel: +41 79 789 53 13 Email: rebecca.ellis@pomonawealth. com Business Interest: Trade & Investment Name: Mr. Chima Ezenwa Designation: Managing Director Company: Telco Agro Chemical Address: 40, Igbo-elerin Okokomaiko Lagos Tel: 08100044228 Email: telcoagro@gmail.com/ chimaphilip90@gmail.com Website: Nil Business Interest: Export Facilitation, Industrial Management Consultants Name: Mr. Patrick Abayomi Designation: Group MD/CEO Company: Windriven Systems Limited Address: 28 Afolabi Aina Street Ikeja, Lagos Tel: 08066951835 Email: aofara@aol.com Website: www.windrivensystemsltd Business Interest: Agriculture, Renewable Energy, Organic Farming, Hydroponics, Aquaponics Control Farming Name: Mrs. Olayinka Adeshola Designation: Proprietress Company: Tindip Educational Serviced Ltd Address: 1-5 Olori Oyefusi Street, Solomade Ikorodu Lagos Tel: 08020545177 Email: dipoarigbelasu@yahoo.com Website: Nil Business Interest: Education & Training Name: Mr. Emmanuel Odemayowa Designation: C.E.O Company: Consultant and Diaspora Address: Olademeji Alo Street, Lekki Phase 1 Tel: 08085151778 Email: akinsoroy@gmail.com Website: www.deluxeresidences.net Business Interest: Real Estate, Property Management & Construction

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Name: Ms. Jessica Ekanem Aletor Designation: Communications and Business Services Specialist Company: Nigerian-British Chamber of Commerce Address: Olubunmi Owa Street, Off Admiralty Way Opposite CBC Towers Lekki Phase 1, Lagos Tel: 08036585606 Email: jessica.aletor@nbcc.org.ng Website: www.nbcc.org.ng Business Interest: Communications, Branding, Advertisement & Public Relations Name: Mr. Ogunsola Johnson Kolawole Designation: C.E.O Company: Zest Global Logistics Ltd Address: 3/5 Osolo Way, Ajao Estate, Lagos Tel: 234-7917258, 08033017263 Email: wole@zestgroup-ng.com Website: www.zestglobal-ng.com Business Interest: Freight Forwarding

OUTLINE PROGRAMME: JUNE 13 -17, 2016 JUNE 13, 2016 ‘Opportunity Nigeria – Importing from Nigeria’ Day 1 in London 10am

Delegates courtesy call to the Nigeria High Commission

Venue: Nigeria High Commission 9 Northumberland Avenue London WC2N 5BX

10.15am

Registration and Networking

Venue: Nigeria High Commission 9 Northumberland Avenue London WC2N 5BX

Welcome Address: The Vision of the Nigerian Government in the Economic Development of Nigeria Speaker: Simon Ogah, Acting High Commissioner to the UK

Sponsored by AMG Logistics (Nig) Ltd.

11.00am - 11.10am

11.10am - 11.30am Name: Ani Patience Ndidi Designation: Div. Head, Logistic and Warehousing Company: Max Avenue Address: 28 Lanre Ebegbune Str, Ajao Estate Lagos Nigeria Tel: 08056157383 Email: max.avenue@yahoo.com Website: Nil Business Interest: Warehousing, Logisitic & Agric Processing Name: Adam Muhammed Kamil Designation: Managing Director Company: Alkasir Tailoring Services Address: Jigawa Shopping Complex, Radama Road, Kaduna Tel: 08032102624 Email: mohammedkamiladam@gmail.com Website: Nil Business Interest: Fashion /Creative Industry Name: Mr. Fred Uhuweraka Designation: C.E.O Company: Frijay Consult Limited Address: 16/18 Folarin Gbadebo Street Off Adetola Bus Stop, Agbado Road Ijaiye-Ojokoro Lagos Tel: 08033546498 Email: agrifrijay@gmail.com Website: www.frijay.com Business Interest: Agriculture-Agro Food Processing, Marketing, Packaging For Exports

11.30am - 11.50am

11.50am - 12.05pm

12.05pm - 12.20pm

Opening Address: The Role of the Nigerian- In association with NIDO (UK) South British Chamber of Commerce in Facilitating UK-Nigeria Bilateral Trade Speaker: Prince Dapo Adelegan, President, Nigerian-British Chamber of Commerce Keynote Address: Facilitating Trade and Investment between the UK and Nigeria Speaker: Prime Minister’s Trade Envoy to Nigeria, John Howell MP Presentation: The Role of the Diaspora in UK - Nigeria Trade Development Speaker: Henrietta Abraham, Chair of NIDO UK (South) Presentation: Economic Outlook and Prospects in the New Era Speaker: Peter Horton, CEO, Diamond Bank UK

12.20pm - 12.35pm

Q&A

1.00pm - 2.15pm

Networking Lunch

2.15pm – 2.30pm

Presentation: The Role of UK Trade & Investment Speaker: Ahmed Bashir MBE, Director, UK Trade & Investment Nigeria

2.30pm -2.45pm

Presentation: Addressing Logistical Needs Speaker: Mark Daoud, Managing Director AMG Logistics (Nig) Ltd. Panel Discussion: Potential for Export of Non-Oil Products from Nigeria NETWORK | JUNE 2016 |15


Panellists include: Chair of NBCC’s Export Committee, Chief Asiwaju Fola Osibo Charis Management Systems, Yemi Shodipo The London Port Health Authority, John Ambrose Nigeria Diaspora-Trade & Investment Association (NDTIA) AMG Logistics (Nig) Ltd., Mark Daoud Bitpesa, Joshua King 2.45pm - 3.45pm

Q&A

3.45pm – 4.00pm

Launch of Nigeria Export Club

4.00pm – 4.10pm

Vote of Thanks

4.10pm – 4.45pm

Networking

4.45pm

Close

11.55pm - 12.10pm

Presentation: AWW Architects: A Nigerian Experience Speaker: David Perkin

12.10pm - 12.25pm

Panel Discussion: Construction, Property and Infrastructure’

12.25pm – 12.45pm

Panellists include; AWW Architects, David Perkin NBCC Construction and Real Estate Sector Group, Gbadebo Adejana Akin Olawore & Co, Akin Olawore Pecora Capital, Switzerland

2:45pm – 1:40pm

Exhibition and display opportunities for delegates

1:40pm – 2:40pm

Networking Lunch

2:40pm – 4pm

Private 1-2-1 Business Meetings Travel to Norton Rose Fulbright LLP offices

TUESDAY JUNE 14, 2016 4pm – 6pm ‘Opportunity Nigeria – Construction, Property and Infrastructure’ Day 2 in London

Registration and Networking ‘Opportunity Nigeria – Construction, Property and Infrastructure’

11.00am - 11.10am

Presentation: Funding Infrastructural Projects in Nigeria Speaker: Pecora Capital, Switzerland

11.10am - 11.25am

Presentation: Addressing Logistical Needs Speaker: Mark Daoud, Managing Director AMG Logistics (Nig) Ltd.

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WEDNESDAY JUNE 15, 2016

Venue: Nigeria High Commission 9 Northumberland Avenue London WC2N 5BX

Presentation: Opportunities in Property and In association with NIDO (UK) South Construction Markets of Africa

11.40am - 11.55pm

Venue: Norton Rose Fulbright LLP, More London Riverside, SE1 2AQ

Norton Rose Fulbright Networking Event

10.15am

11.25am - 11.40am

Opportunity Nigeria: Taking Rail Forward in Nigeria

International Festival for Business 2016 Day 3 in Liverpool 1pm-4pm

International Festival for Business 2016 (IFB2016)

Venue: Exhibition Centre Liverpool, Kings Dock St, Liverpool Waterfront, Liverpool L3 4FP

Nigerian-British Chamber of Commerce Stand at IFB2016 – Market Place Area Networking and 1-2-1 meetings via the IFB2016 Business Club 4pm-6pm

1-2-1 Meetings

Presentation: Developments in Construction and Public Private Partnership in Nigeria Speaker: Akin Olawore, Managing Director Akin Olawore & Co. Presentation: Opportunities in the Nigerian Real Estate Sector Speaker: Gbadebo Adejana, Managing Director Realty Point Ltd.

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THURSDAY JUNE 16, 2016 International Festival for Business 2016 & “Meet your Global Business Network” conference Day 4 in Liverpool All Day

International Festival for Business 2016 Nigerian-British Chamber of Commerce Stand at IFB2016 – Market Place area

Venue: Exhibition Centre Liverpool, Kings Dock St, Liverpool Waterfront, Liverpool L3 4FP

Networking and 1-2-1 Meetings 10.30am – 1pm

“Meet your Global Business Network” conference led by Liverpool and Sefton Chambers of Commerce

Venue: Exhibition Centre Liverpool, Kings Dock St, Liverpool Waterfront, Liverpool L3 4FP

Interaction with the British Chambers of Commerce and the Liverpool and Sefton Chambers of Commerce 4pm

Free Time / Sightseeing

6pm

Liverpool & Sefton Chambers of Commerce ‘Black Tie’ Gala Dinner (Optional) FRIDAY JUNE 17, 2016 Day 5 in London

2pm

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Mission organizing team to make farewell call to the Nigeria High Commission

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EVENTS

EVENTS

Ogun State Courtesy Visit, April 6, 2016

NBCC Insurance Colloquium, April 7, 2016

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Courtesy Visit to First Bank, June 1, 2016

NBCC Breakfast Meeting, June 9, 2016

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EVENTS

EVENTS

Celebrating the Queen at 90 LAGOS

ABUJA

On Thursday April 21, the British High Commissioner, Paul Arkwright and the Deputy British High Commissioner, Ray Kyles hosted guests to a reception to mark the Queen’s 90th birthday in Lagos. Speaking at the event the High Commissioner said, “The Queen visited Nigeria in 1956 and in 2003. It is a sign of just how long she has been on the throne and how dedicated she is to her duty. Indeed, she has made over 250 foreign visits to over 113 countries. She is the longest serving monarch in the United Kingdom and the British Isles. So it is a particular pleasure to celebrate her birthday with you today.”

It was also a terrific evening in Abuja as the British High Commissioner, Paul Arkwright hosted a party to celebrate Her Majesty Queen Elizabeth II’s 90th birthday. Guests from around and outside Abuja joined the celebrations, including government officials, diplomats, media, civil society, the military and business communities. Some highlights of the evening included a photo exhibition of the Queen’s two previous visits to Nigeria, pop up performances of Shakespeare’s Two Noble Kinsmen, a beautiful rendition of the UK and Nigeria national anthems, and a toast to the Queen proposed by the High Commissioner.

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C OV E R S TO RY

C OV E R S TO RY

What do you hope to achieve as President of the NBCC? My aspiration for the 2-year mandate is first to consolidate on the programmes and activities that I have been part of the last 2 years as Deputy President, then recalibrate these activities to a much stronger height of deliverance for members of the Chamber. There is a 7-point agenda in terms of my aspirations: Number one is to build our plaza. The NBCC Plaza has been a project on the table for the past 12 years, and as I speak to you, the foundations have been laid. Our expectation is that we deliver in the life of this administration God willing; as a matter of fact a debenture of 300 Million Naira is currently been raised through a Merchant Bank to deliver this important project in time and at cost. The second aspiration is to develop our NBCC UK Chapter and network. As the Nigerian-British Chamber, our focus should revolve around providing a pipeline of foreign direct investment from Britain into Nigeria, as well as assisting Nigerians to achieve their aspirations in the United Kingdom. This means we need to put a structure in place in the UK that can provide a hand-holding concierge service to British interests who are looking at Nigeria as well as provide representation for Nigerian enterprises, both public and private sector, to help them to achieve their aspirations in the United Kingdom. One of the steps we took was to sign a 5-year M.O.U with the Nigerian Export Promotion Council (NEPC) to assist them in the setting up of a Nigerian Export warehouse in the UK, apart from our plan to set up the Nigerian Business and Investment Centre (NBIC).

Interview with Prince Dapo Adelegan

President and Chairman of Council Nigerian-British Chamber of Commerce Oliver Enwonwu and Ladun Ogidan. Photos: Chibuike Uzoma

The 3rd plank of aspiration is prosperity for our members. The purpose of joining the Chamber is to ensure that member leverage on the networking opportunities to increase their business patronage. Therefore, from our premium members to our SMEs, we will devise a series of programmes and activities to bring more prosperity. In the case of our MSMEs, there is the need to link them to the bigger corporates to enable capacity for sustainable patronage and growth. We have activities like Members’ Evening, Breakfast Meetings and Public Policy Dialogue sessions that afford contact and networking with our premium members. We have been in a series of discussions with organizations about vendor engagement for our members so that once they present themselves as members of the NBCC, the

large corporate member Companies will automatically avail access and patronage. The 4th plank is to be a voice for business. We want to strengthen our presence in the federal capital. In the next six months, we want to have a bi-monthly breakfast programme, as well as a secretariat in Abuja because we are at the vanguard of expanding and growing the business trade between Nigeria and the UK. To leverage the on Nigeria’s estimated 2 million Diaspora in the UK, the largest concentration of Nigerians outside of Nigeria, there is a need to engage very closely with the British and Nigerian governments to ensure that business, political, social and cordial relationships continue to grow. The 5th plank is the Diaspora. I travelled to London in the first week of August last year to engage the Nigerian Diaspora and institute an executive committee of our Chamber in the UK, which includes prominent members of the Diaspora. Moreover, to hold a series of meetings with them, that can assist in achieving their aspirations in Nigeria. The professionals, businessmen, entrepreneurs and most Nigerians in the UK are desirous of investing in Nigeria, so the NBCC wants to position itself as a pipeline that can expose them to business opportunities in Nigeria and assist, by bringing them in contact with our members who are in similar areas of interest. Equity is becoming a much easier and sustainable source of funding for SMEs. We believe that 10 million dollars in annual remittance by our UK Diaspora into Nigeria annually, provides a pool of investable funds available that we can leverage upon to help develop our SMEs. Our 6th plank is to ensure that all members have value for their membership in the Chamber. Our premium members for example are by invitation; members in this category have an automatic council seat in our Chamber. We want to be their voice that engages with government when there are issues, or they want a policy changed, reviewed or established to suit their business objectives. The 7th plank is to be a platform to help emerging companies. We have set up an NBCC Academy/SME Development Centre that will be on the mainland focusing on capacity development for SMEs. The development centre will avail advisory services in legal, secretariat, financial, and market access. We will also provide a virtual office for those that cannot afford an office.

This is the 7-point agenda for my tenure. 2 years is a very short time, but we are going to try as much as possible to touch all of these aspects and establish an irreversible foundation for their emergence. So help us God. What increasing roles will the NBCC play during your tenure in the local Nigerian economy? First, our expectation is that the businesses of our members will grow, and if we can calibrate and increase the performance growth and profitability of our 300 plus membership, it will have significant impact on the economy. Moreover, through those 300 memberships, we can also affect millions of suppliers and businesses that are tied to those companies because once a company is prospering, its public prospers. What is your philosophy on financial management for the Chamber? The President of the Chamber is not responsible for the financial management, but he has and oversight function over the financial management. The Deputy President is the Chairman of our Finance and General Purpose Committee, so he has the responsibility for ensuring that the resources of the Chamber are adequate, and the capital and property are invested. However, if I may speak for him, I think our aspiration is to increase our income generating capability beyond subscription. The 21st-century chamber cannot rely on subscription alone. It must look at other revenue generating and sustaining activities within the chamber that can help to build it. First are properties. The LCCI is the foremost chamber in Africa. I sit on the council, and it has established itself as the most financially successful chamber in the country because of its huge investment in properties. That is why the NBCC Plaza, in my opinion, is our first major investment, which will assist in generating consistent and sustainable income to run the organization. The other is the NBCC Academy/SME Development Centre, which is going to be an independent, self-sustaining training and capacity institute that can partner with other educational institutions locally and abroad in delivering capacity training to Nigerians. Another is our programme. Hitherto, many of our programmes have been effective but not financially successful. We have decided as an Exco, that going forward; every programme must pay for itself and be viable in delivering something to the Chamber. I have also brought in a committee on core mobilization investment and advocacy, headed by a topNETWORK | JUNE 2016 |25


C OV E R S TO RY

notch investment banker and membered by mainly financially sound-minded people. They will be the funds and investment generation arm of the Chamber. They will look at endowment, opportunities for investment, partnerships with various institutions and bodies to ensure that the Chamber is profitable, bearing in mind that the total value of members’ asset is in excess of almost $50 billion and considering that the first ten biggest companies on the Nigerian Stock Exchange are our members. With that volume of global assets, the Chamber has no business with poverty or being deprived of finance. We need to leverage on our size, depth, and network and give value to our members. I am sure that the financial support that we require will come from within and from beyond the Chamber. How will the Chamber encourage sectorfocused activities and development within? The need to sectorize the Chamber Membership has been on the drawing board for a while. The Exco and Council have given approval for the activation of the Oil and Gas Trade Group, The Export Nigeria Club, the Professional Service Trade Group, The Construction and Real Estate Trade Group, the Media and Creative Trade Group, as well as an SME Trade Group. These trade groups will define the aspirations, growth and developments of member organizations providing platforms for peer engagement, interaction, knowledge sharing and B2B activities. The worth of any organization is the quality of its network, the trade groups will engender greater value for our members at all levels with attendant prosperity for the Chamber. Since coming on board as Vice President, and now President of the Chamber, in what way has the Nigerian government been supportive? I was the vice president for four years—two terms of two years each, and then I became deputy president for another two years before I became president. I have been in the Chamber for 20 years as a member, council member, vice president, deputy and now president. I have gone through 6 different presidencies. The president of the country is the grand patron of our Chamber. The tradition is that when a new administration 26| NETWORK | JUNE 2016

C OV E R S TO RY

comes in, we go and decorate and invest that president as our patron. Presently, we are waiting for President Buhari to settle down, then we will be in Abuja by His grace to decorate him then engage the government. We will also give ideas about policy direction, the economic relations between Nigeria and Britain and otherwise, as well as discuss how the government can help in shaping policies that will affect for good, the fortunes of the businesses of our members. As I mentioned earlier, regarding our relationship with the federal government, we just signed a 5-year M.O.U with the Nigerian Export Promotion Council, which is the body charged with exposing our non-oil export and providing jobs for Nigerians. We are also working on partnering with the Nigerian Investment Promotion Council and the Nigerian Tourism Development Council. These are institutions of government that help to expose Nigeria to visitor-tourists who may come in first as visitors but end up becoming investors. It is the one that contributes in promoting the opportunities for investment in Nigeria and helps us develop a non-oil export base, particularly through agriculture. In June 2015, I led a trade mission of our Chamber across the UK and in one of our presentations we were told that the total value of Nigerian food export to the UK is 30 million pounds a year. That is about 1.5 billion naira of the official export transactions that come through the British ports. It includes the ogbono, garri, alubo, and okporoko that we send from Nigeria to our brothers and sisters in London, exclusive of what we carry in our bags when we go, which means that it is more than 1.5 billion naira. Now, imagine that if we can increase that by an average of 10/20% on a yearly basis, in 5 years time, we could do N5 billion worth of exports. This will keep over 5,000 enterprises functioning in Nigeria, working and employing. So we will have a solution to the employability, the current crises, the youth and restless Nigerians if we can develop our agro-allied industry and make it exportable; because beyond England, the Nigerian Diaspora is going to America and Asia, and that means just like the Chinese, they travel with their national food wherever they go. In fact, the next level for us is to encourage the establishing of restaurants offering only Nigerian cuisine in different parts of the world. The Chinese conquered the world first with their food before they came with their technology. We want to do the same thing, using that model through our culture through our culture and food to take Nigeria on a global roadshow so that

the world begins to respect us. Finally, one of the areas we are also keen on having discussed with some of our serious premium members is in developing a perception change documentary that can be aired on British television to change the perception of the British public about business in Nigeria. With the estimated 2 million population of Nigerian Diaspora in London, we are one of the major ethnic groups in the UK. We discovered that the public sector is unable to galvanize the necessary resources to engage a campaign that changes the perception of the British public. Therefore, we are going ahead as a Chamber to commission the documentary in partnership with our members. This will be a necessary prerequisite towards increased trade, respect, engagement and possibly increased traffic of tourists into our country to discover our potential, which could then be translated into major foreign investment and employability for Nigerians. What policies can the Buhari-led government implement to foster business relations between the Nigerian and British business communities? First, the government needs to improve the security situation of the country. I am happy that during his last visit to America, the focus of the discussion between President Obama and President Buhari was the assistance required to defeat Boko Haram. The second thing to do is to fight world corruption because the perception of Nigeria as one of the most corrupt countries does not help our case for foreign direct investment particularly from a very discriminatory and conservative society like Britain. However, once they can see our commitment towards fighting corruption, a better business environment, and most importantly, increased investment in critical infrastructure, the will to partner with Nigerian companies will increase. The moment we can also solve our power problem, the world will come here because with the size of the country, demographics of our youth and middle class in terms of disposable income, every brand will want to come into Nigeria to serve the West African market. If the Buhari administration can succeed in resolving these problems, then as we advance to the 2nd and 3rd decade of the 20th century, Nigeria will emerge as a dominant economic power in the world. What are the sectors of the economy you see most vital for Nigeria in the coming years? The first and most important thing is

agriculture. When you drive through Nigeria, you see the enormous opportunity for agriculture with almost 70% of our land untouched. It means that if the government can develop agro-allied as a focal point of growth for the economy, the issue of unemployment will be resolved. The food security that we require will be guaranteed; the cost of food will come down because we can export. We can become the food basket of the world. China is presently buying land all over the world to grow food to feed its 1.357 billion people because there is no land space anymore. Nigeria can become a farmland for produce to export. Moreover, we can add value to this export by setting up agro-allied businesses that will employ people and add value to our export receipts. The moment we are exporting and getting receipts, our foreign exchange value to naira will reduce and that will impact positively on businesses. In my opinion, agriculture is that key that will unlock Nigeria’s potential, considering the dwindling price of oil and the discovery of shell oil all over the world that limits the global demand for our crude oil.

The other sector that I think is important is tourism. Nigeria needs to develop its tourism potential. Here, security is vital because people do not visit places they do not feel safe. If we can work on the security then advance internal tourism, we can position tourist traffic generators in different parts of the country. The festivals, for example, can become national ones. The volume of people that who visit Calabar for the carnival every year, confirms the validity of this assertion. Internal tourism alone can stimulate economic development in Nigeria. However, the reality is that if the internal public of the country is not patronizing local tourism sites, external visitors will not come. If you do not satisfy your internal public, your external public cannot embrace perceptions. What are the main drivers of growth for the NBCC? The quality of our members, quality of our programmes and the value-added services that we bring to our members.

What are the greatest challenges facing the NBCC today? We do not have any significant challenge because we are a very lucky Chamber. We have the adamant co-operation of the British government through the UK TI in offering pipelines of opportunities for British businesses and members to interact and conduct business. Through our trade missions, many of our members have established solid business relationships with companies in the UK, either as agents or representation. In terms of capacity, they have added value to their businesses locally. If there is any challenge at all, it is to ensure that our members are given satisfactory services that deliver on their expectations. As I have enumerated earlier, our determination to ensure that is done. Where do you see the Chamber in the next five years? My prayer and expectation is that this Chamber, in another five years, will become the foremost bilateral chamber of commerce in the country. NETWORK | JUNE 2016 |27


Building Closer Links between UKTI and the Nigerian-British Chamber of Commerce Ahmed Bashir

I am delighted to be writing to you in my new capacity as Interim Director of UK Trade and Investment (UKTI) Nigeria. Having been in the post for just over a month now, it has been a great learning curve understanding in detail the nuances of the Nigerian economy, and in particular the very positive role-played by British business. This is in no small part due to the great work done by the Nigerian British Chamber of Commerce since inception in 1977. During my time in Nigeria, it is my hope that UKTI and the Chamber continue working in close proximity to facilitate further British investment in the country. A bit about myself: I am from the north east of England from a small town called Middlesbrough and proudly still carry the accent, which I hope to unleash on many of you. I joined the civil service in 2003, working originally at the Department for Work and Pensions. Over the past 13 years, I have taken on a variety of roles within Her Majesty’s Treasury and UKTI, 28| NETWORK | JUNE 2016

including a posting in Hong Kong where I presided over marketing operations in the Asia Pacific region, as well as South Africa. Most recently, I was humbled to receive an MBE in the Queen’s 2015 New Year’s Honours List for my services to the UK economy having worked extensively on the Great Britain campaign that I hope you will have seen in Nigeria and indeed across the globe where it has been rolled out. I hope I am able to positively extend my experiences and services to our shared aims of attracting UK businesses to Nigeria. The work we do is seldom in silo, and for that I am grateful to my predecessor Chris Maskell, who has left a wonderful foundation for me to build on. I am all too aware of the challenges facing my role. UKTI and the Chamber have worked in the past to encourage UK companies to look beyond the challenges in Nigeria, and not only do I wish to continue this important work, I would also like to tackle head on the misconceptions heard all too often

about working or investing in Nigeria. We will require a multi-pronged approach to educate and attract businesses and I hope to work closely with the Chamber in accomplishing this. Despite a slowdown in recent years for reasons we are all too aware, Nigeria continues to occupy the top spot as the largest economy in Africa. And this means Nigeria should remain as a very attractive investment prospect for British businesses; not just in the major resource areas of oil and gas, but also in other areas including human resources and diversity that have seen recent growth. It is my utmost hope that during my time as Director of UKTI Nigeria, UKTI will work as closely as it has ever done with the Chamber to increase the number of UK companies present in Nigeria. I look forward to working with you all. Ahmed Bashir MBE NETWORK | JUNE 2016 |29


Profile of the Nigerian - British Chamber of Commerce The Nigerian-British Chamber of Commerce is the foremost bilateral chamber in Nigeria. It was founded in 1977. We currently have about 400 members spanning all sectors of the economy made up of Nigerian and British business people. It is active in Nigeria and Britain through the NBCC-UK Network. MAIN OBJECTIVES •

To maximize trade between Nigeria and Britain through a regular exchange of information among members To maintain a close liaison with all relevant government authorities, departments and representative bodies with the aim of protecting and or representing members’ interests on matters of current importance To advise members of the Chamber on opportunities and problems, legislative or otherwise, arising from the pursuit of trade between the United Kingdom and Nigeria. To sustain partnership with the British Chamber of Commerce and UK Trade & Investment including the export-oriented Overseas Business Networks Programme launched in October 2013 To create value for our members continuously and facilitate business-tobusiness relationships

Special events

Workshops

Trade missions

Issuance of introduction/reference letters to members to facilitate visa procurement

Exhibitions & fairs

President’s Dinner & Awards

Market intelligence services on Nigeria – UK trade

Annual Golf Classics

Provision of access to library and information data bank

MEMBERSHIP CATEGORIES

Free copy of Chamber’s bi-monthly magazine

Corporate plus

• • •

Representation of members’ interests to all relevant government authorities Participation in trade missions and other sector focused events

Attendance at conferences and seminars addressed by leading authorities in their fields, affording members to inform themselves on, and discuss current key issues affecting Nigerian-British trade

30| NETWORK | JUNE 2016

Corporate

Member–to–member offers

Members’ discounts from selected service providers

BUSINESS SERVICES

Attendance at professional development and networking sessions

These services are available in-house and through designated members with approved and appropriate experience.

• •

Global business links through cooperation with other British Chamber of Commerce within the International UK Business Network Opportunities to promote your business through the chamber’s various sponsorships and advertising opportunities Business referrals

THE CHAMBER PROGRAMMES MEMBERSHIP BENEFITS

Premium

Breakfast meetings

Members’ Evening

Business Round – Table

Trainings

Emerging

Advisory Business matching and referrals Market Studies Events Business Matching and Referrals Brokerage Engagement with potential clients, agents and distributors Market Studies Survey reports Sector research Competitor analysis

Professional Services

MSME

Networking events

chargeable services tailored to their individual business needs. Services are designed to offer an appropriate understanding of opportunities in the Nigerian market and B2B networking opportunities. These services include:

Education and Training

Industry missions

Advertising opportunities on NBCC website and newsletter

UK Secretariat

Editorial in NBCC newsletter

info@nbccuk.org

Market overview, research, competitor and sector analysis

Events Trade shows Product launches

NBCC – UK NETWORK The UK Network of NBCC was formed in July 2009 with the intention of engaging with the Nigerian Diaspora in the UK, providing a platform for UK companies with interest in the Nigerian market and providing access to Nigerian businesses in the UK. Categories of membership of NBCC –UK Network •

Premium

Corporate

Establish speedy links with potential agents, suppliers, distributors and customers Receive support from sector-focused business groups, build market share and expand into new markets Benefit from a friendly, open and inclusive community of interest Core Services Offered by the Network

www.nbccuk.org Nottingham Commerce Centre 8, Experian Way ng2 Business Park Nottingham

Policy Advice

Advice on cultural awareness

Visa, business visa and work permit support

Tariff and customs research

Finance reporting and book keeping

Olubunmi Owa Street, off Admiralty Way Opposite CBC Towers Lekki Phase 1

Risk and budget management support

Tel: +234 (1) 4540395, +234 80126509157

Relocation support

E-mail: info@nbcc.org.ng

Our Network’s services will enable you to: Tap into a reservoir of knowledge on international trade

Market penetration, promotional advice, support for launches and marketing products and services

T: +44 (0) 330 024 1126

Sector Business Groups The chamber has a number of sectoral groups which members are encouraged to join. These include the following;

Market Insight

Export Trade Group

Getting Started Overseas

Creative & Entertainment Industry

Building Market Share

Construction & Real Estate

Tailored Additional Services

Oil & Gas

NG2 1EP National Secretariat NBCC House

Website: www.nbcc.org.ng

Connect with us: Facebook – Nigerian-British Chamber of Commerce Twitter: @nbccng, Instagram: @nbcc_ng, LinkedIn: Nigerian-British Chamber of Commerce

We offer UK businesses a range of bespoke, NETWORK | JUNE 2016 |31


T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

Working with NBCC to Invest in Nigeria/Britain

T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

Member Benefits Apart from the huge member-to-member networking opportunity open to all our members both in the United Kingdom and Nigeria, members enjoy the following benefits: 1. Organizing conferences and seminars addressed by leading authorities in their fields, affording members to inform themselves on, and discuss current key issues affecting Nigerian British trade. 2. Representing members’ interests to all relevant government authorities. 3. Organizing trade missions arranging traveling services members.

and for

4. Providing information and market intelligence service on Nigeria - UK trade through the Chamber’s regular publications. 5. Provision of access to library and information data bank. 6. Publication of the bi-monthly news report on business trade and legislative issues that are of interest to Nigerian - British business relation, as well as Chamber members; and reporting new developments within member companies and business and employment opportunities of interest to members. 7. The Chamber also publishes Tradelinks magazine. Tradelinks is a journal of topical issues and personalities on the activities of the Chamber. It was first issued in July 1987 and has been published regularly since.

F

ounded in 1977, The Nigerian-British Chamber of Commerce (NBCC) is the foremost bilateral chamber of commerce in Nigeria, established to promote exclusively bilateral business and investment activities between the Nigerian and British private sectors. Its membership base ranges from the small and medium enterprises to large-scale multinational corporations and government agencies. The Chamber organizes workshops, business luncheons, seminars, trade fairs, trade mission, members’ evenings and other activities that aid trade and investment.

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Why Join a Sectoral Group? The NBCC Business groups provide a platform for members to engage and connect within their professional sector and beyond. The groups’ core committees consist of 8 to 12 members driving event programme and content. Business group core committees also take an active interest in enlarging the member base. They are a vital and important pillar in delivering our mission. The Nigerian-British Chamber of Commerce enjoys a reputation as one of the most active in the Nigerian business community. Our business groups enhance the Chamber’s policy of engagement, with each business group’s aim being to provide a cutting edge approach to bring

about dialogue, change, improvement and influence with key people at industry and government levels. This provides both specific benefits to members and allows for their dynamic involvement and contribution. Agriculture The NBCC’s 40th anniversary is an excellent opportunity to further raise NBCC’s (and therefore its members) profile in the Nigerian-British business community. The occasion will be marked with several highlights including business awards to acknowledge the long and proud history of Nigeria and Britain doing business together. Women in Business The Women in Business committee aims to get women involved while introducing issues of interests to women by working with relevant organizations on joint networking events and collaborations. Property & Construction This business group provides an expert exchange and input forum encompassing all areas relating to property, real estate, real estate services and construction. The group aims to gather and share/provide insights and best practice from within the membership to create value for all members, as well as attract new ones. Banking & Financial Services The NBCC Financial Services Group covers one of Nigeria’s leading market sectors where a high level of major and niche institutions and financial firms occupy strong and influential market positions. Its aim is to significantly expand NBCC membership at both the corporate and individual levels by raising the standard of and focusing the networking and promotional opportunities within both the financial services sector and to the rest of NBCC’s business groups and membership. IT & Communications The ICT (IT and Communications Technology) Business Group focuses on networking and driving interests/opportunities through NBCC, other chambers and the broader Nigeria business community. Professional Services The Professional Services Business Group is the Chamber’s largest group. The group includes members from accountancy, business & management consultancies, PR & communications specialists, engineers, industrial services, legal services, real estate services, relocation services, tax specialists,

and travel consultants. The group’s activities are planned and co-ordinated by a dedicated professional services committee, drawn from a cross-section of the group membership. The main focus of the committee is to act as a hub of information and support for UK organizations wishing to learn more about doing business in Nigeria/Africa and Nigerian organizations wishing to learn more about doing business in the UK/Europe. Small Business Enterprises NBCC’s 40th anniversary is an excellent opportunity to further raise the Chamber’s (and therefore its members) profile in the Nigerian-British business community. The occasion will be marked the occasion with several highlights including the 40th Anniversary Business Awards to acknowledge the long and proud history of Nigeria and Britain doing business together. Education & Training The 40th anniversary of the NBCC provides an excellent opportunity to raise further NBCC’s (and therefore its members) profile in the Nigerian-British business community. Several events will mark the occasion including the 40th Anniversary Business Awards, which will acknowledge the long and proud history of Nigeria and Britain relations. Fashion & Creative Services The Creative Industries Group developed within the British Chamber of Commerce, engages with the rich and complex business demographics of Singapore and beyond. The NBCC strives to create a useful platform from which to underpin and facilitate new ways of innovative competitive and contemporary practice. This cross-disciplinary core group discusses long and short-term goals, strategy, collaboration, communication, research and so on to benefit the members. These are shared with them via events, reports and the Orient magazine. Power & Public Utilities The Energy and Utilities Group has regular events open to members, their guests and the invited wider energy-related community. Activities are often co-ordinated and shared with other energy-interest groups in an attempt to provide a broad and open forum. Over the years, events have seen distinguished energy business figures address key business issues. Speakers have come from across the sector including multinationals, such as Shell and BP. NETWORK | JUNE 2016 |33


NIGERIAN-BRITISH CHAMBER OF COMMERCE 2016 Programme Schedule

JUNE BREAKFAST MEETING Date: Thursday June 9, 2016 Venue: Intercontinental Lagos, Plot 52A Kofo Abayomi Street, Victoria Island, Lagos Time: 7:30am

TRADE MISSION TO UK Monday June 13-17, 2016 London and Liverpool The Nigerian-British Chamber of Commerce invites its Members and Non-Members, State Governments and MDA’s to participate in its Trade Mission to the UK.

MSME BITE-SIZE WORKSHOP Date: Monday, June 27, 2016 Venue: PricewaterhouseCoopers Annex, 17, Yesufu Abiodun Street, Oniru, Victoria Island, Lagos Time: 8:30am

JUNE MEMBERS’ EVENING Date: Thursday, June 30, 2016 Intercontinental Lagos, Plot 52A Kofo Abayomi Street, Victoria Island, Lagos Venue: Intercontinental Lagos, Plot 52A Kofo Abayomi Street, Victoria Island, Lagos Time: 6pm

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JULY BREAKFAST MEETING

ADVOCACY ROUNDTABLE

Date: Thursday, July 28 2016 Venue: Intercontinental Lagos, Plot 52A, Kofo Abayomi Street, Victoria Island, Lagos Time: 7:30am

Date: Thursday August 11, 2016 Venue: Intercontinental Lagos, Plot 52A Kofo Abayomi Street, Victoria Island, Lagos Time: 10:00am

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We make it simple, clear and easy for you to navigate the complexities of the international financial markets. www.pomonawealth.com Tel: +41 43 268 0960 Pascal: pascal.crepin@pomonawealth.com, +41 79 123 1089 Rebecca: rebecca.ellis@pomonawealth.com, +41 79 789 5313 or +234 908 206 5573 Nigerian Correspondent for Dispora Institute: Prince Akinwale Ojomo: +234 905 545 4087 Event Reference Code: DISPW16

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T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

Export, the New Frontier organizations, which can benefit from the right export climate, like banks, the logistics people, clearing agents and consultants, to co-fund and co-influence what is happening.” During his tenure, Adefulu played an important part in encouraging growth in the nation’s exportation sector by engaging strongly with the Lagos Chamber of Commerce, the UK Tier, as well as a number of missions that visited the country. “We sent 2 missions of Nigerian business people abroad, looking for British business people to collaborate with. We started an initiative we called Export Nigeria, which is a private sector initiative, not just to participate in, but also to influence government policies, so they will develop from the bottom to the top.“ Today, Nigeria is the 38th largest export economy in the world and the 125th most complex economy according to the Economic Complexity Index (ECI). In 2014, Nigeria exported $99bn and imported $52.3bn, resulting in a positive trade balance of $47.4bn. In 2014, the GDP of Nigeria was $568B and its GDP per capita was $5.91k.

E

Her top exports are crude petroleum ($74bn), petroleum gas ($13.2bn), refined petroleum ($4.23bn), pyrophoric alloys ($1.9bn) and special purpose ships ($1.25bn), using the 1992 revision of the HS (harmonized system) classification. The top export destinations of Nigeria are India ($15.2bn), Spain ($9.7bn), Brazil ($8.77bn), the Netherlands ($5.59bn) and France ($5.48bn).

www.maersk.com

Nigeria continues to record consistent growth and improved political stability with the recent rebasing of her GDP making it the largest economy and market in Africa and the 26th largest in the world. Over the past decade, Nigeria’s annual growth rate averaged 7 percent. As a result, the country is regarded as one of the fastest growing economies in the world with a GDP in 2015 of US$510 billion. In sustaining this annual growth rate, the Buhari’s administration’s liberalization of the Nigerian economy promotes publicprivate partnership, as well as strategic alliances with foreign firms, especially regarding infrastructure development and technology acquisition in critical sectors such as security, power generation, transportation and healthcare.

36| NETWORK | JUNE 2016

Unfortunately, the considerable strides that Nigeria has made in the recent decade have not gained enough attention globally because the country’s security challenges have received more negative media coverage than her economic successes. However, the Nigerian economy has been significantly less than in previous years, arguably due to the fallen oil prices resulting from the United States shale oil boom. Despite this, Nigeria is the key driver of international trade in West Africa, which comprises of sixteen countries. Indeed, exportation has brought improved growth and development in Nigeria. Due to Nigeria’s recent economic decline, it is a topic inviting research and development to increase foreign exchange earnings, improve balance of payment position, while creating employment, educational and training opportunities. Consequently,

export-oriented industries would be developed in the manufacturing sector, as well as government revenue built through taxes, levies and tariffs. In a recent interview, past president of the NBCC, Prince Yemi Adefulu called for improved policies to encourage exportation. “We are all beneficiaries of good policies and victims of bad ones. For example, we need to advocate to the Nigerian Export Promotion Council (NEPC), where the export direction should tilt. If we are saying this as business people, it’s different from the NEPC within government saying the same. Governance is about competing pressures. Different interests are competing for the little money available. So, we must collaborate with NEPC by suggesting and insisting on certain policies being put in place by government that will help export. We should get some private sector

According to the Nigerian Export Promotion Council in 2011, Nigeria earned a staggering $3 billion (N468 billion) from non-oil exports. Below are figures for non-oil exports from a recent year: Product

FOB Value

1.

Cocoa & Cocoa Preparations

$417,900,987

2.

Processed Leather

$333,011,697

3.

Rubber

$143,871,586

4.

Cashew Nuts & Edible Fruits

$55,363,190

5.

Plastics, Polybags

$53,491,233

6.

Sesame Seeds & Oil

$104,054,165

7.

Aluminum & Articles

$64,022,090

8.

Sea Foods

$48,141,669

9.

Cotton Yarns & Woven Fabrics

$31,754,740

10.

Gum Arabic

$37,154,951

11.

Others

$539,934,012

Market experts from the National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) assert that Nigeria accounts for over 40 percent of imports in the subregion and ranks among Africa’s largest consumer markets. A report from Nigeria’s National Bureau of Statistics (NBS) indicates that Asia accounted for 44.6 percent of Nigeria’s imports in 2015, while imports from Europe and the Americas accounted for 33.6 percent and 14.1 percent, respectively. Nigeria’s top imports are refined petroleum ($7.83bn), cars ($1.75bn), wheat ($1.46bn), motorcycles ($877m) and iron structures ($780m). The top import origins are China ($13.6bn), the United States ($5.54B), the Netherlands ($3.4bn), India ($2.98bn) and Belgium-Luxembourg ($2.59bn). NBS also reports that machinery, boilers, transport equipment, manufactured goods, and commodities also account for the majority of imports into Nigeria. Prospects for UK businesses in Nigeria are especially promising in the following sectors: oil and gas equipment, healthcare services and medical equipment, electrical power generating equipment, computer hardware/software, telecommunications equipment, automobile parts and accessories and construction. According to Nick Hurd, UK Minister for International Development, the trade volume between Nigeria and UK stood about 6 billion ponds (about N2.4 trillion) in 2015. As the largest economy in Africa, and as a gateway to fifteen smaller West African countries and a net importer of most high precision equipment, Nigeria can be a very rewarding market for British companies that take the time and effort to understand its market conditions and opportunities, find the right partners and clients, and take a long-term approach to market development. Founded in 1977, The Nigerian-British Chamber of Commerce (NBCC) is the foremost bilateral chamber of commerce in Nigeria, established to promote exclusively bilateral business and investment activities between the Nigerian and British private sectors. The UK Trade & Investment in Nigeria helps companies in Britain increase their competitiveness through overseas trade in Nigeria. It also offers professional, authoritative and personalized assistance to help companies in Nigeria locate and expand in the UK.

NETWORK | JUNE 2016 |37


T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

The Investment, Advocacy and Mobilization Committee (IAMC) Chairman on the N300m Debenture Issuance for the NBCC Plaza Project

THE NBCC  PLAZA  

Jessica Aletor

Kayode Falowo holds a BSc. (Hons) in Agricultural Engineering, an MBA degree and a diploma in Information Management. He has over 25 years of working experience in the financial sector and is the Group Managing Director of Greenwich Trust Limited.

PUT THE  PICTURE  HERE  

Falowo is a distinguished Fellow of the Chartered Institute of Stockbrokers and a Member of the; Nigerian Institute of Management, Institute of Management Consultants, Nigerian Society of Engineers, Certified Pension Institute of Nigeria, Nigerian-British Chamber of Commerce and NigeriaMalaysia Chamber of Commerce.

Work in Progress – contd.

Kayode Falowo is currently a member of the Technical Committee of the Bureau of Public Enterprise (BPE), member, Presidential Advisory Committee on the Nigerian Capital Market and is the immediate past Chairman of the Association of Issuing Houses of Nigeria.

Kayode Falowo, Group MD, Greenwich Trust Limited

What is the debenture all about? The debenture is an instrument being issued by the Nigerian-British Chamber of Commerce to raise N300mn (USD 1.52 mn) for the purpose of constructing and developing a four-floor ultra-modern plaza within Lekki Phase 1, Lagos, Nigeria. Since the debenture was announced, what has been the response? The response since the announcement of the debenture has been interesting. In particular, there has been key discussions around the debenture returns compared to Treasury Bills investment and applicable interest rates for term deposit in Nigeria. However, all the members of the Chamber who have been contacted on the investment 38| NETWORK | JUNE 2016

In this interview, he chats with Jessica Aletor on the N300m debenture for the NBCC Plaza project.

have been very supportive and welcoming of the idea.

Government Bond yield with a floor and cap of 8% and 10% per annum.

How hopeful are you about the debenture? Considering the high-level of support from the key stakeholders in the Chamber, Past Presidents, Council Members and Members, we are confident of a success story.

How long is the construction time frame? The construction period is expected to last between 12 and 18 months.

How does the Investment compare with other investments in Nigeria at the moment? This investment promises higher returns than Nigerian Treasury Bill yields, which are currently at an average of about 6%. The debenture has been structured as a floating rate instrument, which is benchmarked against the prevailing Federal

What is the minimum investment for members who want to buy into the debenture? The minimum investment for members is N1,000,000 (One million naira only). What does the usage of the plaza including the (renting of office space, and ATM Gallery) mean for NBCC? The usage of the plaza will bring more visibility to the Chamber’s brand. It also

Work in Progress strengthens the country presence ofThe project was designed by Pyramids Plc and other consultants include: Akin the Chamber and is expected to further Olawore & Co; Project Managers; Costec Consultants – Quantity Surveyors solidify the trade relationship betweenand Unecon Associates – MEP Engineers. Main contractor is Construction Kaiser Limited, Case Projex for the MEP. Nigeria and Britain. Again, by undertaking this laudable project, the Chamber becomes the pioneer international trade group to undertake a project of this status. Further information regarding the mechanism of the debenture are contained in a confidential information memorandum, and can be made available upon request. Kindly contact the following representatives of Greenwich: Kenneth Ero and Oreofe Laditan via email: ken.ero@gtlgroup.com and oreofe.laditan@ gtlgroup.com

NETWORK | JUNE 2016 |39


T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

T R A D E & I N V E S T M E N T O P P O RT U N I T I E S

N300 Million.

40| NETWORK | JUNE 2016

NETWORK | JUNE 2016 |41


T R A D E A N D I N V E S T M E N T O P P O RT U N I T I E S

42| NETWORK | JUNE 2016

T R A D E A N D I N V E S T M E N T O P P O RT U N I T I E S

NETWORK | JUNE 2016 |43


Nigeria (CBN) in turn imposed a fine of N4bn on Skye Bank Plc. for failing to render appropriate returns on accounts of some government institutions and agencies under the Treasury Single Account Regulation. Similarly, First Bank of Nigeria Plc. and United Bank For Africa Plc. (UBA) were fined N1.8bn and N2.9bn respectively.

NIGERIAN-BRITISH CHAMBER OF COMMERCE (NBCC) NBCC ECONOMIC REVIEW & POLICY STATEMENT

REGULATORY COMPLIANCE AND CORPORATE GOVERNANCE Regulatory compliance is a key element of good corporate governance. In recent times, there has been an upbeat in regulatory oversight with attendant sanctions imposed in the face of noncompliance. Those that got the most attention are the regulatory sanctions imposed on MTN Nigeria, Stanbic IBTC Bank Plc., Guinness Nigeria Plc., Skye Bank Plc. and First Bank of Nigeria Plc., to mention a few.

THE ECONOMIC PERSPECTIVE & IMPLICATIONS According to the National Bureau of Statistics, as at the 25th of November 2015, the Non-Oil sector of the Nigerian economy contributed 89.73% to the nation’s GDP, with significant growth in the Telecoms, Trade, Crop Production and Financial sectors of the economy. The Information and Communications sector contributed 9.8% to the nominal GDP, whilst the financial sector contributed 3.18% to the overall nominal GDP. It is pertinent to mention that MTN Nigeria recorded revenue of N824 billion in 2014. The chart below provides a snapshot of the sectorial contribution to the nation’s GDP in Q3, 2015;

Diverse opinions have been expressed as to the appropriateness or otherwise of the sanctions and in particular the quantum and the attendant publicity. It is pertinent to consider the position of the regulators, as well as the economic implications in order to ascertain the appropriateness or otherwise of these sanctions.!!

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The fine saw the suspension of trading in MTN shares on the Johannesburg Stock Exchange in order to protect investors from severe loss, and the company’s share price plummeted by 12% in just one day. Other erring telecommunications companies viz- Globacom, Etisalat and Airtel were slammed with fines ranging from 3.8 million to 7.4 million. In October 2015, the Financial Reporting Council of Nigeria (FRCN) suspended the Chairman of Stanbic IBTC Holdings Plc, the Chief Executive Officer, and a Partner at KPMG Professional Services for alleged infractions in the 2013 and 2014 Financial Statements of the company. Prior to this, the FRCN had imposed a fine of 1 billion on the group for flouting CBN regulations. Guinness Nigeria Plc. also fell under regulatory hammer. The company was fined N1bn by the National Agency for Food and Drug Administration and Control (NAFDAC) for allegedly revalidating expired raw materials without prior approval of the Agency. The Central Bank of

44| NETWORK | JUNE 2016

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REGULATORY PERSPECTIVE In the case of MTN Nigeria, it was alleged by the Nigerian Communications Commission (NCC), that MTN Nigeria breached the provisions of Section 20 (1) of the Registration of Telephone Subscribers Regulation of 2011 by failing to deactivate 5.1 million pre-registered subscribers who had not registered their sim cards. The NCC proceeded to levy a fine of 1.04 Trillion on the Company. The fine was however reduced to 780 billion, and about two weeks to the payment deadline, MTN filed an action challenging the NCC’s decision to impose a N780 billion fine on the Company. Shortly after filing the suit, the telecommunications company opted for an out of court settlement and made a down payment of 50 billion to NCC.

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With the dip in oil prices and the new focus on a diversified economy, expectations are that rather than stifle their growth, government would incentivize and stimulate other sectors of the economy, and make these sectors attractive to Foreign Direct Investment. Whilst it has been argued that it would be most difficult to attract investment into an economy with porous regulations, and lacking firm regulatory oversight, it is important to strike an appropriate balance. Year

Company

Regulator

Fine ( )

Fine/Net Asset

Fine/Revenue

2015

MTN Group

1.04 trillion

41.6%

33.8%

2015

Stanbic IBTC Holdings Plc.

1.0 billion

1%

8%

2015

Guinness Nigeria Plc.

1.0 billion

2.1%

0.84%

2015

Skye Bank Plc.

4.0 billion

3%

3.1%

2015

First Bank of Nigeria United Bank of Africa (UBA)

Nigerian Communications Commission (NCC) Financial Reporting Council of Nigeria (FRCN) National Drug Agency for Food Administration & Control (NAFDAC) Central Bank of Nigeria (CBN) CBN

1.9 billion

0.4%

0.53%

CBN

2.9 billion

0.9%

1.2%

2015

th

*all information on Net Asset, Market Cap. & Revenue are as at 30 September 2015.

NETWORK | JUNE 2016 |45


THE WAY FORWARD - MODERATION IS NECESSARY There is global precedence for huge regulatory fines. The government of the United States of America in 2008 imposed a fine of $1.6 billion on Siemens for bribery and corruption, whilst Volkswagen faces the possibility of an $18 billion fine for falsifying emission data. However, sanctions should not be destructive but corrective. These companies add immense value to our economy, and their output has contributed significantly to national GDP. With the present unemployment rate, and the need to generate more revenue through taxation, sanctioning companies into comatose would not be in our best interest. Punitive regulations, whilst necessary in an emerging economy like ours should be a last resort. Regulators should consider sensitizing the companies they regulate on the importance and benefits of regulatory compliance and the implication of non-compliance. Introducing attractive incentives for compliance is also the something to consider. The NBCC reiterates that regulatory compliance is a key component of a sound governance practice, and in view of this, it is pertinent for the Boards of regulated companies to ensure that they take their oversight function in this regard seriously, by ensuring strict compliance with regulatory requirements.

HOTEL OVERVIEW With 23 floors, InterContinental Lagos is the tallest hotel in West Africa. The hotel has 352 modern and luxury guest rooms and suites which have been aptly designed for your comfort. All rooms have stunning views of either the Lagos Creek or the Atlantic Ocean. The brandâ&#x20AC;&#x2122;s iconic Club InterContinental is located the 21st floor. For moreon information please contact: 7 restaurants and bars offer a variety of Tel: +234 226 food 9600 04&/ +234 226 9604 gastronomic beverage Email: sales.iclagos@ihg.com experiences.

www.intercontinental.com

The luxurious Conference and Meeting areas are located on the 3rd floor with extensive pre function areas and 6 various sized meeting rooms, business center and an exclusive boardroom.

Lobby

For more information please contact: Tel: 9600 04 / +234 226 9604 For+234 more 226 information please contact: Email: sales.iclagos@ihg.com www.intercontinental.com Tel: +234 226 9600 04 / +234 226 9604 Email: sales.iclagos@ihg.com www.intercontinental.com 46| NETWORK | JUNE 2016

NETWORK | JUNE 2016 |47


China

ECONOMY

China Investment Corporation

Saudi Arabia SAMA Foreign Holdings

The Wealth of Nations

Many countries of the world today have established an investment window, through which they invested surplus funds, often called a Sovereign Wealth Fund (SWF), managed by a distinct body outside of the ministries of finance, or treasury, as the case may be. What started small for many have today blossomed into huge funds with diverse investment portfolios spread all over the world. At the start of 2008, only $3.4 trillion assets were held under management by Sovereign Wealth Funds around the world. Fast forward to March, 2015, and it had more than doubled to $7.1 trillion, with oil and gas sovereigns like Nigeria accounting for $4.29 trillion of all SWF’s. The Nigerian Sovereign Wealth Authority (NSIA) was established when President Goodluck Jonathan signed the bill into law on May 27, 2011.It however did not commence operations until October, 2012 when an initial take-off seed capital of $1billion was provided. Jointly owned by the 3-tiers of government, the NSIA, manages three funds with clearly defined investment focus: 1. The Future Generations Fund 2. Nigerian Infrastructure Fund 3. Stabilization Fund The Nigerian Sovereign Investment Authority currently enjoys a high transparency rating of 9 out of a maximum of 10 and operates according to best practice principles, as clearly spelt out in the Santiago Principles, which aim to: 1. Maintain a stable global financial system and encourage the flow of capital and investment across capital markets 2. Comply with disclosure practices advocated by international organizations, such as the financial action Task Force under the Organization for Economic Co-operation and Development. 3. Take careful consideration of economic and financial risks in investment decisions and incorporate transparent governance structures that abide by appropriate operational 48| NETWORK | JUNE 2016

controls, risk management, and accountability, amongst others. Courtesy of the Sovereign Wealth Institute we provide you with facts and figures about the Wealth of Nations. While the Asian and Middle East countries hold over 80% of the Sovereign Wealth Funds of the world, it is worrisome that Africa has less than 3%. This may be a reflection of the savings apathy of the political class in Africa. It could be a testimony to the dire straits African countries have been through, resulting in a lack of investible funds. Whatever the reason for the uneven distribution of SWFs, it has already painted a picture of the world economy in the years to come. While countries in Africa are struggling to balance their budgets or provide basic amenities for their populace, others like Norway are busy buying up Facebook shares and major shopping malls in the United Kingdom. Countries with hydrocarbon wealth therefore need to invest some of their proceeds to provide alternative income when the natural resources are depleted. Such investments also come in handy when oil or commodity prices crash, as has been the case since June, 2015. A diversified portfolio of investments in relatively stable economies. Between 2011-2014, a total of $13.37 billion was invested in Spanish companies by various SWFs, thereby helping the Spanish economy to come out of recession. Country

Sovereign Wealth Fund Assets Inception Origin USD-Bil Name

LinaburgMaduell Transparency Index

2007

Non8 Commodity

598.4

n/a

Oil

4

592

1953

Oil

6

Kuwait

Kuwait Investment Authority

China

SAFE Investment Company 474**

1997

Non4 Commodity

China – Hong Kong

Hong Kong Monetary Authority Investment Portfolio

1993

Non8 Commodity

Singapore

Government of Singapore Investment Corporation

344

1981

Non6 Commodity

Qatar

Qatar Investment Authority 256

2005

Oil & Gas

China

National Social Security Fund

236

2000

Non5 Commodity

Singapore

Temasek Holdings

193.6

1974

Non10 Commodity

UAE – Dubai

Investment Corporation of Dubai

183

2006

Non5 Commodity

160

2008

Oil

Ray C. Atelly

A look at Sovereign Wealth Fund of Nations Nations that found wealth in exploitation of hydrocarbons have had to face up to the fact that this good fortune will not last forever. Even as they enjoyed the resources that came from nature’s bounty, some have made contingency plans for the inevitable outcome.

746.7

Saudi Arabia Public Investment Fund UAE – Abu Dhabi Australia

Abu Dhabi Investment Council Australian Future Fund

442.4

110

95

5

ECONOMY

US – New Mexico

New Mexico State Investment Council

19.8

1958

Oil & Gas

9

Canada

Alberta’s Heritage Fund

17.5

1976

Oil

9

US – Texas

Permanent University Fund 17.2

1876

Oil & Gas

n/a

East Timor

Timor-Leste Petroleum Fund

16.9

2005

Oil & Gas

8

Chile

Social and Economic Stabilization Fund

15.2

2007

Copper

10

UAE – Federal

Emirates Investment Authority

15

2007

Oil

3

Russia

Russian Direct Investment Fund

13

2011

Nonn/a Commodity

Bahrain

Mumtalakat Holding Company

11.1

2006

Non10 Commodity

Peru

Fiscal Stabilization Fund

9.2

1999

Nonn/a Commodity

Chile

Pension Reserve Fund

7.9

2006

Copper

10

Mexico

Oil Revenues Stabilization Fund of Mexico

6.0

2000

Oil

4 4

4

2007

Oil

n/a

2006

Non10 Commodity

Korea Investment South Korea Corporation

91.8

2005

Non9 Commodity

Kazakhstan

Samruk-Kazyna JSC

85.1

2008

Nonn/a Commodity

Oman

Oman Investment Fund

6.0

2006

Oil

Kazakhstan

Kazakhstan National Fund

77

2000

Oil

2

Italy

Italian Strategic Fund

6.0

2011

Nonn/a Commodity

Russia

National Welfare Fund

73.5

2008

Oil

5

UAE – Abu Dhabi

International Petroleum Investment Company

Botswana

Pula Fund

5.7

1994

66.3

Diamonds 6 & Minerals

UAE – Abu Dhabi

Mubadala Development Company

Permanent Wyoming Mineral Trust Fund

5.6

1974

Minerals

9

66.3

US – Wyoming

Libya

Oil

8

1984

Oil

9

2002

Oil

10

Libyan Investment Authority 66

2006

Oil

1

Trinidad & Tobago

Heritage and Stabilization Fund

5.5

2000

Russia

Reserve Fund

2008

Oil

5

Brazil

Sovereign Fund of Brazil

5.3

2008

Iran

National Development Fund 62 of Iran

2011

Oil & Gas

5

China

China-Africa Development Fund

5.0

2007

US – Alaska

Alaska Permanent Fund

53.9

1976

Oil

10

Angola

Fundo Soberano de Angola 5.0

2012

Oil

8

Algeria

Revenue Regulation Fund

50

2000

Oil & Gas

1

US – North Dakota

North Dakota Legacy Fund 3.2

2011

Oil & Gas

n/a

Brunei

Brunei Investment Agency

40

1983

Oil

1

1985

Oil & Gas

9

1854

9

US – Alabama

2.5

37.7

Oil & Other

Alabama Trust Fund

US – Texas

Texas Permanent School Fund

10

Kazakhstan

National Investment Corporation

2

2012

Oil

n/a

65.7

Non9 Commodity Non5 Commodity

Norway

Government Pension Fund – 847.6 Global

1990

Oil

10

Azerbaijan

State Oil Fund

37.3

1999

Oil

UAE – Abu Dhabi

Abu Dhabi Investment Authority

792

1976

Oil

6

Malaysia

Khazanah Nasional

34.9

1993

Non9 Commodity

Nigeria – Bayelsa

Bayelsa Development and Investment Corporation

1.5

2012

NonN/A Commodity

China

China Investment Corporation

746.7

2007

Non8 Commodity

Oman

State General Reserve Fund 34

1980

Oil & Gas

Nigeria

Nigerian Sovereign Investment Authority

1.4

2012

Oil

9

598.4

n/a

Oil

4

France

Strategic Investment Fund

25.5

2008

Non9 Commodity

US – Louisiana

Louisiana Education Quality 1.3 Trust Fund

1986

Oil & Gas

n/a

592

1953

Oil

6

Ireland

Ireland Strategic Investment 23.5 Fund

2001

Non10 Commodity

Panama

Fondo de Ahorro de Panamá

1.2

2012

Non-n/a Commodity

New Zealand

New Zealand Superannuation Fund

2003

Non10 Commodity

UAE – Ras Al RAK Investment Authority Khaimah

1.2

2005

Oil

Bolivia

1.2

Saudi Arabia SAMA Foreign Holdings Kuwait

Kuwait Investment Authority

China

SAFE Investment Company 474**

China – Hong Kong

Hong Kong Monetary Authority Investment Portfolio

442.4

1997

1993

Non4 Commodity Non8 Commodity

20.2

4

FINPRO

Non-

3

2012 NETWORK | JUNE 2016n/a |49 Commodity


1.3

1986

Oil & Gas

de Ahorro de EPanama C O N O M Fondo Y

1.2

2012

Non-n/a Commodity

UAE – Ras Al RAK Investment Authority Khaimah

1.2

2005

Oil

Bolivia

1.2

2012

Nonn/a Commodity

2012

Nonn/a Commodity

Louisiana

Trust Fund

Panamá

FINPRO

Senegal FONSIS

Iraq

Development Fund for Iraq 0.9

2003

Oil

Palestine

Palestine Investment Fund

0.8

2003

Nonn/a Commodity

Venezuela

FEM

0.8

1998

Oil

Kiribati

Revenue Equalization Reserve Fund

0.6

1956

Phosphates 1

State Capital Investment Corporation

0.5

2006

n/a

1

Non4 Commodity

Gabon

Gabon Sovereign Wealth Fund

0.4

1998

Oil

n/a

Ghana

Ghana Petroleum Funds

0.45

2011

Oil

n/a

Indonesia

Government Investment Unit

0.3

2006

Nonn/a Commodity

Mauritania

National Fund for Hydrocarbon Reserves

0.3

2006

Oil & Gas

1

Australia

Western Australian Future Fund

0.3

2012

Minerals

n/a

Mongolia

Fiscal Stability Fund

0.3

2011

Minerals

n/a

Equatorial Guinea

Fund for Future Generations 0.08

2002

Oil

n/a

Papua New Guinea

Papua New Guinea Sovereign Wealth Fund

2011

Gas

n/a

n/a

Turkmenistan Stabilization Turkmenistan Fund

n/a

2008

Oil & Gas

n/a

US – West Virginia

West Virginia Future Fund

n/a

2014

Oil & Gas

n/a

Mexico

Fondo Mexicano del Petroleo

n/a

2014

Oil & Gas

n/a

Total Oil & Gas Related

$4,204.9

Total Other

$3,038.9

TOTAL

ECONOMY

3

Senegal

Vietnam

1

n/a

$7,243.8

Total Sovereign   Total  Oil  &   Total   Total  Oil  &   Total   Period   Wealth  Fund   Gas  Related   Other   Gas  Related   Other   Assets   (%)   (%)  

Total Gulf   SWF   Assets  

Mar 2016  

7,400

4,201

3,199

56.78%

43.22%

2,892

Sep 2015  

7,437

4,241

3,195

57.03%

42.97%

2,926

7,428

4,254

3,174

57.27%

42.73%

2,963

7,506

4,319

3,187

57.54%

42.46%

2,980

7,527

4,345

3,182

57.72%

42.28%

3,002

7,408

4,263

3,145

57.55%

42.45%

2,919

Dec 2015  

Jun 2015   Mar   2015   Dec   2014    

**As of December 2015, the figures calculated historically in this table are derived from the fund profile table series, not the summation from the table above. In addition, due to reporting, some figures may be revised as new information is reported. 2015 Total Other: 43.40%Total Oil and Gas Related: 56.60% 2010 Total Other: 44.79%Total Oil and Gas Related: 55.21% 2015 Other: 1.40%Africa: 2.70%Europe: 13.11%Americas: 2.80%Asia: 39.74%Middle East: 40.24% 2010 Other: 1.60%Africa: 1.80%Europe: 15.08%Americas: 2.70%Asia: 39.76%Middle East: 39.06% Breakdown of Sovereign Wealth Funds by Year of Establishment 2010-15: 21.50%

**This number is a best guess estimation. Source: Sovereign Wealth Fund Institute ***All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their assets, from other publicly available sources. Some of these figures are best estimates as market values change day to day. Total figures are rounded to the nearest tenth. Updated April 2016

50| NETWORK | JUNE 2016

Pre-1970: 7.60% 1970-79: 6.30% 1980-89: 7.60% 1990-99: 11.40% 2000-09: 45.60%

Rank Country 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

China  Japan  Europe (Eurozone)   Switzerland  Saudi Arabia  Taiwan  Russia  South Korea  Brazil  India  Hong Kong  Singapore  Germany  Mexico  Thailand  United Kingdom  Algeria  France  Italy  Iran  United States  Turkey  Indonesia  Poland  Malaysia  Israel  Iran[5]  Canada  Philippines  United Arab Emirates  Czech Republic  Europe (ECB)  Denmark  Libya  Peru  Sweden  Norway  Iraq  Spain  Lebanon  Australia  Colombia  South Africa  Netherlands  Romania  Chile  Vietnam  Qatar  Kuwait  Hungary  Argentina  Bangladesh  Kazakhstan  Nigeria  Belgium  Morocco  Austria  Turkmenistan  Pakistan  Bulgaria  Portugal  Macau, China  Angola  Egypt  New Zealand  Jordan  Oman  Venezuela  Uzbekistan  Uruguay  Croatia  Bolivia  Ukraine  Trinidad and Tobago  Serbia

Foreign exchange reserves (Millions of US$) 3,305,445 1,262,509 761,679 649,190 572,000 425,978 388,300 369,840 362,200 361,000 359,900 244,013 200,394 179,708 175,073 164,003 155,700 153,890 143,183 125,900 121,269. 112,769 107,542 100,530 95,631 94,775 93,950 83,922 82,977 79,920 74,785 75,150 64,015 61,630 60,445. 59,558 59,423 57,070 54,154 49,610 49,264 46,798 46,770 40,393 40,148 39,552 39,600 36,707 31,430 31,366 29,571 28,800 27,800 26,500 24,861 23,516 24,757 22,640 21,602 24,318 21,328 19,130 18,460 17,050 16,769 16,386 15,720 15,410 15,000 14,377 14,306 12,818 12,721 11,690 11,680

Figures as of March 2016 Apr 2016 Feb 2016 Mar 2016 May 2016 Jan 2016 May 20, 2016 Mar 2016 Apr 2016 May 20, 2016 Feb 2016 Feb 2016 Apr 2016 Mar 2016 Mar 2016 Mar 2016 Dec 31, 2015 Mar 2016 Mar 2016 Dec 2015 Apr 2016 Mar 2016 Mar 2016 Mar 2016 Feb 2016 Mar 2016 Dec 31, 2015 Apr 2016 Mar 2016 Dec 31, 2015 Apr 2016 Mar 2016 Mar 2016 Dec 31, 2015 May 7, 2016 Feb 2016 Feb 2016 Dec 31, 2015 Mar 2016 Dec 31, 2015 Mar 2016 Apr 2016 Mar 2016 Apr 2016 Apr 2016 Mar 2016 Dec 31, 2015 Jan 2016 Dec 31, 2015 Mar 2016 Mar 2016 May 2016 Mar 1, 2016 May 2016 Mar 2016 Jan 2016 Mar 2016 Dec 31, 2015 May 27, 2016 Mar 2016 Mar 2016 Feb 2016 Dec 31, 2015 Dec 31, 2015 Mar 2016 Feb 2016 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 Feb 2016 Feb 2016 Jan 2016 Mar 2016 Dec 31, 2015 Dec 31, 2015

71 72 73 74 75 76 77 78 78 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 -

Cuba  Finland  Myanmar  North Korea  Botswana  Costa Rica  Guatemala  Greece  Kenya  Cambodia  Paraguay  Tunisia  Afghanistan  Sri Lanka  Iceland    Nepal  Ghana  Dominican Republic  Bahrain  Ivory Coast  Bosnia and Herzegovina  Mauritius  Republic of the Congo  Azerbaijan  Panama  Belarus  Tanzania  Honduras  Uganda  Brunei  Ethiopia  Latvia  El Salvador  Ecuador  Papua New Guinea  Slovakia  Albania  Zambia  Jamaica  Mozambique  Cameroon  Macedonia  Nicaragua  Georgia  Yemen  Ireland  Senegal  Equatorial Guinea  Gabon  Haiti  Kyrgyzstan  Armenia  Moldova  Democratic Republic of the Congo  Mongolia  Niger  Lithuania  Bhutan  Namibia  Chad  Rwanda  Kosovo  Lesotho  Laos  Mauritania  Syria  Madagascar  Bahamas  Slovenia  Fiji  Mali  Cyprus  Benin  Luxembourg  Malawi  Aruba

11,600 10,412 9,417 8,000 7,990 7,784 7,658 7,535 7,356 7,091 7,028 6,714 6,681 6,225 6,186

Dec 31, 2015 Mar 2016 Dec 31, 2015 Nov 2013 Dec 31, 2015 Feb 2016 Mar 2016 Mar 2016 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 Feb 2016 Dec 31, 2014 Mar 2016 Apr 2016

6,034

Dec 31, 2014

5,617 5,183 5,051 4,882 4,625 4,497 4,407 4,399 4,182 4,111 4,021 3,755 3,681 3,649 3,589 3,519 3,171 3,128 2,966 2,879 2,852 2,716 2,670 2,528 2,510 2,454 2,441 2,426 2,309 2,191 2,099 1,903 1,825 1,803 1,794 1,740 1,717

Dec 31, 2015 Mar 2016 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 Mar 2016 Dec 31, 2015 Jan 29, 2016 Dec 31, 2015 Mar 1, 2016 Dec 31, 2015 Mar 2016 Dec 31, 2015 2014 Dec 31, 2015 Feb 2016 Mar 2016 Dec 31, 2015 Dec 31, 2015 Jan 2016 Dec 31, 2015 Dec 31, 2015 Jan 2016 Dec 31, 2015 Dec 31, 2015 Jan 2016 Jan 2016 Feb 29, 2016 Dec 31, 2015 Jan 2016 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 Feb 2016 Jan 2016 Mar 4, 2016

1,443

Dec 31, 2015

1,324 1,282 1,268 1,245 1,135 1,111 1,028 990 981 976 969 968 963 950 939 903 861 809 809 774 743 680

Jan 2016 2014 Feb 2016 2014 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 Sep 30, 2015 Dec 31, 2015 Dec 31, 2015 2012 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 Feb 2016 Dec 31, 2015 2014 Jan 2016 Dec 31, 2015 Jan 2016 Dec 31, 2015 2014

NETWORK | JUNE 2016 |51


ECONOMY

146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183

Barbados  Malta  Belize  Maldives  Suriname  Guyana  Sierra Leone  Montenegro  Palestine  Swaziland  Seychelles  Solomon Islands  Togo  Liberia  Cape Verde  Estonia  Zimbabwe  Tajikistan  Djibouti  San Marino  Burkina Faso  Saint Kitts and Nevis  Burundi  Timor-Leste  Guinea  Antigua and Barbuda  Guinea-Bissau  Central African Republic  Saint Lucia  Eritrea  Vanuatu  Sudan  Comoros  Grenada  Tonga  Samoa  Saint Vincent and the Grenadines  Federated States of Micronesia

663 658 634 627 625 614 601 600 581 572 537 496 494 493 492 471 457 430 393 392 363 327 316 312 303 297 287 260 258 248 213 172 171 170 167 141

Dec 31, 2015 Feb 2016 Dec 31, 2015 2014 2014 Dec 31, 2015 2014[127] Dec 31, 2014 Dec 2015 Dec 31, 2015 Jan 2016 2014 Dec 31, 2015 Dec 2013 Dec 31, 2015 Feb 2016 Dec 31, 2015 Dec 31, 2015 2014 2014 Dec 31, 2015 2014 Dec 31, 2015 2014 Dec 31, 2015 2014 2014 2014 2014 Dec 31, 2015 Dec 31, 2015 Dec 31, 2015 2014 2014 Dec 31, 2015 Dec 31, 2014

135

Dec 31, 2015

114

2014

Without a doubt, countries that choose to spend all today will end up having nothing saved up for the rainy day. They would invariably have to contend with such problems as; environmental degradation, rural urban migration, high infant and maternal mortality rates as a result of the lack of/or poorly equipped or manned hospitals; desperate migratory patterns/practices (to the Western world); high crime rates, high incidence of school dropouts (as they either lack sponsorships/scholarships/or leave school early to start fending for their families; poverty induced fetish practices, early pregnancies, low technical/vocational skills, overly late adoption of Technology, frequent breakdown of the rule of law, and last but not least, lack of enduring democratic foundations and principles.

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A country that has to grapple with all of the above issues will certainly remain underdeveloped for the foreseeable future. On the other hand, a nation can emerge into a force for good and instil national pride in her citizens by saving and investing. Such nations will go through the political pressure of today’s politicians who always want every revenue shared today, leaving tomorrow’s burden on the shoulders of the defenceless generation.

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2016 |53


ECONOMY

ECONOMY

Naira: To Devalue or Not

of barrel of crude oil from as high as $140 to an abysmal $28 has necessitated some economic policies like, ban on sales of dollars to the parallel market operators also known as Bureau De Change (BDC), import restriction on certain 41 items to discourage unnecessary importation of goods that can be produced locally and prioritization of forex needs. We can devalue as much as we want, but our forex earning remains same. If we want to have more earnings in Naira, instead of reducing the value of Naira to have more money, we should focus solely on increasing our forex earning, and starve our quest for forex spending. When a country earns more forex, it in turn has more revenue, and the local currency will appreciate. Depreciation is like a short cut that leads to no where, it will only end up addressing the symptoms while the disease (shortage of currency in this case) will continue to fester. The general assumption is that once we devalue, we will absorb the pressure on Naira and leverage on that, but in the real sense, we have never achieved that assumption.

T

his will easily pass as the most debated economic policy in Nigeria in resent times, especially whenever there is drop in (foreign) earnings. Different opinions springs up as to how the government should treat the Naira, being the victim of our financial recklessness. Everyone is quick to conclude on how the government should run the economy, but just like a football match, the best players are always the spectators on the stand. It takes political will to make strategic decisions that will affect the life of over 170 million Nigerians, and because of the ripple effect of these decisions, it tends to affect all sector of the economy . Policy decisions needs to be well evaluated and simulated before they are implemented by the leader, because of the burden of responsibility. There has been series of debate about whether or not to devalue the Naira, 54| NETWORK | JUNE 2016

mine is just another opinion. I’m a public commentator not an economist, but I have been around for a while to be able to lend one or two words to this debate that doesn’t seems to be ending any time soon. There are those that belongs to the school of thought that devaluation is the way to go, and others like the organized labor who threaten to demand for wage increment should the government dare devalue the Naira. Its is not out of place to find the third group who supports partial devaluation. A simple analogy of devaluation is a situation where Nigeria makes $1 billion naira in a month, and exchange it at the official rate of 199 Naira to a Dollar. This means that the government now have N199 billion Naira to share among the states, with a state like Osun getting like 5 billion. The government can decide to devalue the local currency to the parallel market rate of 400 Naira to a dollar, the government, after exchanging will have double of the initial amount, and Osun state will have 10 billion. While the allocation of Osun state doubled, Nigerians earning is

still $1 billion, we have only pretended to earn more, while in actual fact our earning has not changed, and the purchasing power of the Naira has been reduced by half. That is called “clever by half”. Resent history of devaluation in Nigeria Devaluation is the act of reducing the value of a currency by it monetary authority like the central or principal bank.This is not the first time this issue will heat up the polity, in fact, the Naira had been devaluated several times in the past, and it has failed to make any meaningful in pact on the economy apart from increase in government revenue in local value, which will only weaken the Naira more. Naira was devalued by 71.5 per cent in 1986 by the then government of General Ibrahim Babangida; 23.9 per cent in 1989 by same government; 42.1 per cent in 1992; 74.65 per cent in 1999; 3.18 per cent by Obasanjo in 2001; 7.73 per cent in 2008; January 2013, 13.23 per cent, November 2014, 5.58 per cent, and February 2015, 14.25 per cent. The current shortage of forex as a result of sharp decline in the price

Who Benefits From Devaluation? We have found ourselves on different divides, depending on our political, tribal, emotional affiliation. This situation is quite unfortunate has we have allowed emotions to take better part of us, we have sacrifice deep down analysis and patriotism for sentiment and sensationalization. Need to mention that both argument for and against devaluation are valid and both can suffix, but its strongly depends on determination and political will. This is what has been lacking over the years. It is not uncommon to find state governors clamoring for devaluation as seen recently, the reason is simple - if at $1 to 200 naira, we share 2000 naira, by devaluing to 300 naira a dollar, we will have 3000 naira to share. This scenario has been well explained above with analogy, and its eventual implication mentioned. Another set of people in this class are Nigerians in diaspora who earns forex, with a yearly forex inflow of $25 billion into the country, they might be tempted to see the Naira loose it value for their earning to translate to more Naira, especially when there is direct forex withdrawal (must be converted at the counter) restriction on domiciliary accounts in Nigeria. Economist who want to apply theoretical angle to the issue might also want to argue that since our foreign reserve has been depleted, and decline in forex revenue, we

don’t have the financial capacity to support the naira at present rate. But many at times, we have seen economic events defied bookmakers to unfold contrary to perdition. The way forward: #BuyNaijaToGrowNaira Much has been said about Naira devaluation, and virtually everyone has been able to argue out its own part, as earlier mentioned, both are valid, has we have seen seasoned economists on different sides on this matter, offering different explanation. This most fascinating comment given by an economist was during the colloquium organized by TheCable. Bismarck Rewane, CEO Financial Derivatives urged Nigerians and indeed government to worry less about whether or not to devalue as this should be left to be determined by the market forces, government should worry more on generating forex through mass production and exportation, as this is the only means the dollar can be strengthened. In his words, the current situation has moved “from whether to devalue or not to devalue, to the implications of the absence of an exchange rate policy. In the end, we have two options: do something and have a policy, or do nothing,”. While he doesn’t really subscribed to devaluation, he also doesn’t want to give legitimacy to governments adamancy not to devaluate. Just has expected, only the end can justify the means. The governor of Edo state, Adams Oshiomole, as the keynote speaker, on his part urged Nigerians “to curb the demands for imports and reorder our consumption pattern.” He further stated that foreign reserve was $65 billion in 2007, $42 billion in 2014, and now $28 billion. As this reserve is dwindling, our taste for foreign goods and importation is ever on the increase, even as the reserve can be totally depleted in the next one year if something drastic is not done. We are where we are, and things needs to be done differently, we have to start producing, and not just producing, but also exporting and consuming our local produce. This is the only way the Naira can be eased of the pressure and more jobs will be available. The economy will be buoyant, and investor friendly. Nigerians spend half a billion dollars on education abroad, if half of this is diverted into our economy instead, our GDP will increase, the education sector will flourish and even generate income for government as it is in UK, US and other developed countries.

A situation where the rich and wealthy run abroad for ordinary checkup has to stop, medical is not cheap abroad, especially for foreigners, if a fraction of this amount can be expended on our health sector, no doubt we will compete with other nations like India. The cost of flying plain abroad also contribute to another country’s GDP at the expense of ours. Its high time we get serious, the government needs to strengthen our health institutions to encourage people to treat themselves locally. A situation where FG budget 3 billion naira to upgrade the villa’s health facility in order to ensure that medical trips abroad are reduced to the barest minimum is a welcome development. We need to start patronizing local companies if we want our economy to improve. No matter the quality of the products locally produced, we have to keep patronizing to encourage competition that will ultimately makes the quality be at par with world standard. Chinese products was not long ago termed as a substandard and inferior goods, now it’s the cynosure of every consumer’s eyes, not just in Nigeria, but all over the word. The Chinese leveraged on their population to woo potential investors, now virtually all manufactures and vendors has their production factory in China. Just like China, we have the population, we have the brains, what we lack in leadership, we gain in abundant natural resources, all these just needs to be harnessed. A business class seat on British Airways is over 2 million naira, while Arik is a quarters of it, yet we travel with BA. Manufacturers are folding up everyday due to lack of patronage, yet we want government to provide jobs for our youths. We can not possibly eat our cake and still have it. I will end this by sharing a personal experience. I went to a book store to get a white board for my study room, the store attendant, with confidence presented a locally made one, though not as good looking as the imported one I used when I was in Ghana. I told the gentle man I wanted the imported one, the question he asked made me look silly - “what do you want to use it for”. It was then I realized both will serve the same purpose perfectly well, with a disappointed look, he advised I should always patronize made in Nigeria goods to encourage the local producers. I had to apologize to save my face. BuyNaijaToGrowNaira. Article by Naijazeera Source: http://www.nairaland.com/2964149/nairadevalue-not-devalue. NETWORK | JUNE 2016 |55


E N T E RTA I N M E N T

Nigerian Music as a Global Phenomenon Oliver Enwonwu

Jazzy, IBK Spaceshipboi and Lenell Atta.

I

n a recent interview, front line Nigerian/German musician Adegoke Odukoya, better known as Adé Bantu was asked to compare the German music industry to the Nigerian music industry. He refuted the idea of a music industry in Nigeria, preferring to label it a dynamic scene. To the ardent music follower, his response was hardly surprising. Indeed, Nigeria does not have the structures for the distribution and dissemination of music. However, this scene has gained immense visibility as one of the most vigorous on the African continent with globally recognized artistes like Tuface Idibia, P-Square, D-Banj, who have collaborated with various international brands including Akon, R Kelly, Rick Ross and Snoop Dogg, winning some awards in the process, as well as Tiwa Savage, Flavour, Olamide, Wizkid, Rekado Banks and Yemi Alade, all exponents of today’s popular and commercially driven music, a rhythmic sound derived mainly from the high life beats invented in the 1960s to fuel a spirit of nationalism as African countries gained independence. This Afro-centric consciousness of the local markets in Nigeria and the larger African continent is arguably the major reason for the success of this eclectic fusion of music. Today, so many other genres exist in Nigeria including hip-hop, Afro beat and R&B, which all benefit greatly from radical technological advancements like free streaming over the Internet. The result is a bustling local scene, creating jobs from record label owners like Chocolate City to video makers like Kemi Adetiba, Clarence Peters and Bolaji Kekere-Ekun, as well as producers like Cobhams Asuquo, Don

56| NETWORK | JUNE 2016

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Among the biggest names is Asa, who along with artistes like Age Beeka and German-born Lucia Egbuna, better known as Nneka, is widely credited as the progenitor of neo- soul in Nigeria. Her music is laden with socially conscious lyrics and metaphors, incorporates R&B, Afromusic, jazz that betray influences by major acts like Fela Kuti, Aretha Franklin, Marvin Gaye and Lagbaja. Her first album, which features hit singles Eye Adaba and Jailer was released to critical acclaim and in 2008, won the prestigious French Constant in Award. Artistes following in Asa’s stead include Ego, who once featured as a back-up singer for the masked Afro-jazz musician, Lagbaja, before settling for a more self-fulfilling solo musical career and Bez. Born Emmanuel Bezhiwa Idakula, Bez styles his sound as ‘’alternative soul’’. In 2011, his debut album Super Sun was released with the video for hit single Stupid Song premiering on the BET network. Other emergent names are Kenny Sawyer, Kaycee, Stella Bulero, Jessica Bongos-Ikwue, Bemyoda, Lindsey Abudei and Grandsun. Reality music shows and competitions continue to fuel the glut of talents on the Nigerian music scene. Many of them are sponsored by major corporates including dance competitions by Malta Guinness and The Voice by MTN and have brought to the limelight names like Djinne (first West African Idol winner in 2007), Timi Dakolo (his runner-up), Omawunmi (runnerup in MTN Project Fame, 2007), Praiz (former P-Square back-up singer), Waje and Kween. Many of these organizations continue to support the careers of more established musicians by signing them on as brand ambassadors while aiming to raise awareness for their products and services. Investors can also follow this trend in supporting these incredible talents, who have all not only inscribed their names in gold, but also continue as keepers of our rich cultural heritage.

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NETWORK | JUNE 2016 |57


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S P O RT S

S P O RT S

Nigerians in the British Football Leagues

Victor Anichebe Victor Anichebe made his first team debut in the Premier League as a substitute for Everton in an FA Cup 4th round tie against Chelsea. On May 7, 2006, he scored his first Premier League goal against West Bromwich Albion, a club he would later sign for on September 2, 2013. Described by many pundits as a powerful striker, in 2013 he scored a career high 8 goals in a single season. On May 18 2016, it was announced that Anichebe would leave the club.

them, a factor contributing to his growing reputation as a fearsome striker. Recently there has been speculation linking him to some of Europe’s top clubs, with Atletico Madrid as his most likely destination.

Victor Moses The Nigerian national football team has made great strides in recent times, being the present champions of Africa. The feat is perhaps hinged on the fact that many Nigerian players ply their trade in some of the best football leagues in the world, including the English Premiership, following in the footsteps of some ex-Nigerian internationals like the phenomenal ‘Jay Jay’ Okocha, Kanu Nwankwo, Joseph Yobo, Efan Ekoku and Celestine Babayaro. Below are some of today’s biggest stars in the Premier League Mikel John Obi Chelsea’s John Mikel Obi is the most established and longest-serving Nigerian player in the Premier League. He is one of the last remaining Chelsea greats from Jose Mourinho’s first stint as manager, and has remained at the club while several players and managers have come and gone. He joined Chelsea in 2006 as an attacking midfielder. However, under Mourinho he was transformed into a defensive one, and since then has been playing in that role. His main responsibilities are to keep the opposition at bay and play short and simple passes. Though this might sound relatively simple, his role is held in high regard among 60| NETWORK | JUNE 2016

managers, with Mourinho often asserting that by not keeping the ball at his feet for long, Mikel was speeding up Chelsea’s attacking game and dictating the tempo of the game.

Victor Moses Born in Lagos in 1990, Moses began his professional career with Crystal Palace at the age of 16, completing a £2.5million transfer to premier league side Wigan Athletic in 2010. He signed for Chelsea in August of 2012. When Moses chose to represent Nigeria at international level, many considered it as a coup for the African country, since he was one of the most sought after wingers in the English Premier League (EPL) at the time. His progress, however, has stalled in recent years with Chelsea forced to loan him out to premiership sides like Liverpool, Stoke City and West Ham United in search of first team football. Hopefully, the tricky winger will re-enact his fine form in the English game that has made him such a household name.

Mikel Obi is also rated very highly for his professionalism towards fellow players and managers.

Victor Moses

Iheanacho finished the 2015/16 season with 8 Premier League goals and the best goals per minute ratio-, an average of a goal every 93.9 minutes. He enjoys a reputation as Manchester City’s third highest goal scorer with a record of 14 goals and 5 assists from 35 appearances in all competitions, even though he only started 11 of them.

Victor Anichebe

He is well-known for his patience and calm, even when omitted from starting lineups. In Mourinho’s second spell as Chelsea manager, Obi only played occasionally, but still supported his beleaguered manager through trying phases.

Kelechi Iheanacho Peter Odemwingie Thirty-four year old Peter Odemwingie plays as a forward for Premier League club Stoke City. He grew up in Russia and Nigeria, where he began his career with Bendel Insurance.

Odion Ighalo Odion Ighalo is a 26-year-old striker who presently plays for Watford. He arrived in England in 2014 from Udinese, on a season-long loan deal. He has 14 Premier League goals and 2 assists next to his name, together with 6 man-of-the-match performances. Ighalo averages a goal every two hours, which is remarkable for a team like Watford, known for a largely defensive game. A natural born finisher, Ighalo also likes to take on players and dribble past

Peter Odemwingie

Odion Ighalo

Kelechi Iheanacho Kelechi Iheanacho is part of a fine crop of exciting, young players, widely regarded as the future of Nigerian football. Presently, the 20-year old plays for Manchester City as a forward. Iheanacho scored his first competitive goal for his club on September 12, 2015, against Crystal Palace. His first hat trick was scored against Aston Villa on January 13, 2016, in the fourth round of the FA Cup.

Alex Iwobi

Odemwingie first appeared on the English football scene in August 2010 for West Bromwich Albion. He was an instant hit for the Baggies, netting 30 goals and snapping up 3 Premier League player of the month awards. A brief 6-month stint at Cardiff City would follow, before he joined Stoke Cityin January 2014 in a player-exchange with Kenwyne Jones. Odemwingie only managed 8 apearances in an injury-prone season. In March 2016, he joined Championship side Bristol City on loan. He has played 7 times for the Robins, scoring twice against Bolton Wanderers and Rotherham United.

Alex Iwobi Alex Iwobi signed a new long-term contract with Arsenal in October 2015 and made his Premier League debut in a 3–0 win against Swansea City at the Liberty Stadium, as a stoppage time substitute for Mesut Özil. The 20-year-old Nigerian plays as a winger and striker for Arsenal. After scoring two goals in his first Premier League start in wins against Everton and Watford, Iwobi enjoyed considerable playing time, particularly with injury to key players. However, as the squad regains full fitness, his chances of making the first team seem most unlikely and a possible loan to Reading or some other Championship club has been mooted. It is hopeful that with consistent quality performances, he will soon find his way back into the first team. Other Nigerians enjoying fine spells in England include Arsenal’s Chuba Akpom, Tottenham Hotspurs’ Dele Alli, Sone Aluko for Hull City, Cardiff City’s Samuel Amoebi and his brother, Shola Amoebi who was recently transferred to Fleetwood Town F.C. NETWORK | JUNE 2016 |61


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