Top 7 Products To Export And Become Rich Before End Of 2015!

By Albert Opute

The export business remains one of the most lucrative endeavours anyone can engage in judging by the abundance of many products that can be exported from Nigeria to many countries across the world.

It is also a business that offers lots of room for new entrants to come into it as the industry is still relatively under exploited, making Nigeria to shortchange itself from the billions of dollars that accrue to international trade yearly.

In this week’s SD, Mr. Albert Opute, a Trainer, consultant, and exporter since 2007 reveals his top seven exportable products that can make anyone rich. He also exposes the inner operation of an export business and gives a guide into starting and making a great success as an exporter.
Enjoy the interview:

What are your top 7 exportable products from Nigeria that are very lucrative and selling fast in the international market right now?

1. Gallstones; 2. Cashew nuts; 3. Soybeans; 4. Sesame Seeds; 5. Bitter kola; 6. Ginger; 7. Charcoal.

Why did you choose these 7 products?
Well, from our research we have come to understand that these are the products that really move fast in the export market because of the importance and the uses of the products and from my years of practice, I have never sold or exported any other product outside Nigeria like these ones. They sell like hot cakes and are highly competitive in the marketplace.

Also, the destination of the products, that is, the countries that buy them have over the years continue to ask for it without having alternatives, and because these products have high economic value that each of them can be used for several other things as a component for use in accomplishing other products. You can see why the demand is very high that sometimes we can't even meet orders.

Let us take for instance bitter kola, which is also known as Garcinia Kola. It is a major component used for the cure of malaria worldwide, because of this fact, countries that are battling with malaria, or pharmaceutical companies that produce anti malaria drugs buy it in large quantities to make drugs for cure and prevention of malaria.

Where can they be sourced in Nigeria and how can they be sourced at cheaper rate?
They can be source from the villages around us like Ondo, Jalingo, and Oshogbo. This is one thing we as a nation should be grateful to God for, for the natural endowments and resources He has blessed us with. We have these products in abundance and some nations around the world are looking for it.

The irony of it is that most villages that have these products in abundance and don’t know what to do with it are wasting it, but if you have the information of who needs it and is ready to pay for it, then you have just found yourself a business that can keep making money for your entire generation.

How can one meet the export specification for the products?
It is very easy; some of the products are specified by the Federal Ministry of Agriculture, or the Ministry of Health, but in the case of the gallstones, the Ministry of Health is perfect for giving you the specification. You can visit their office or use a registered lab to get the right specification. However, most time buyers do the test by asking you to send samples of the products.

Quality Control
It is very important when it comes to maintaining a good quality. This implies that exportable product, including bitter kola must be free of foreign matters like stones, dirt, papers, nylon, sands, etc. They must not be among the product you are exporting, because this will not only add unnecessary weight but will contaminate the product, especially while it is used for medicinal and food purposes.

Is it only the Federal Ministry of health that has the right to certify your products for export?
No, they are not the only one but I always advice that you take your products there first because once the Federal Ministry of Health has certified your products, all other agencies are just going to succumb to that. The Federal Ministry of Health  and the Standard Organizations of Nigeria are like the most important agency when it comes to certification of products. Even though there are other agencies, these two must not be overlooked.

Also, I will like you to know that when it comes to food stuff you cannot overlook NAFDAC, but if you are using NACHO at the international airport where you want to send your stuff through cargo, there are agencies approved by the Federal Government to check every item that is exported. At the airport also, your products can be inspected and certified before exporting it.

But if you want to use courier service delivery, you may need to provide some documentation of your company before your products will be inspected and certified for export.

How can a new comer to export get into this business of exporting any of the products?
To get into export business, it’s a must you get a good mentor who can always guide you on what to do at any given time. This is what most of us don’t consider very important when it comes to doing business and doing it right. There is a way to do anything that is worth doing in life, and if you have chosen to do the business of exporting, therefore, you need a mentor or you need a proper training to know the does and don’t of that business.

Where is the hottest export market for these products?
The hottest markets for the 7 products mentioned are China, Germany, India, and Brazil. The four countries are known for buying the products listed above. Though other countries also buy, but major buyers come from the four countries I just mentioned.

Thank God for the Internet and other forums of business networking that we have now where we can make searches and get connected to other people that are ready to do business with us.

For instance, if you belong to an international organization like the chamber of commerce and industry, you might be favoured to have a link to some of these destinations.

How does one sell in foreign market?
Proper pricing, complete and accurate quotation and choice of terms of trade and payment are four critical elements in selling a product or service internationally. Of the four, pricing is the most problematic even for the experienced exporter.

Pricing consideration usually includes:

• At what price should the firm sell its product in the foreign market?
• Does the foreign price reflect the product’s quality?
• Is the price competitive?
• Should the firm pursue market penetration or market skimming pricing objectives abroad?
• What type of discount (trade, cash, quantity) and allowances (advertising, trade off) should the firm offer its foreign customers?
• Should prices differ with market segment?
• What should the firm do about product line pricing?
• What pricing options are available if the firm’s costs increase or decrease? Is the demand in the foreign market elastic or inelastic?
• Are the prices going to be viewed by the foreign government as reasonable?
• Do the foreign country dumping laws pose a problem?

 As in the domestic market, the price at which a product or service is sold directly determines a firm’s revenue. It is essential that a firm’s market research include an evaluation of all the variables that may affect the price range for the product or service. If a firm’s price is too high, the product or service will not sell. If the price is too low, export activities may not be sufficiently profitable or may not create a net loss.

The traditional components for determining proper pricing are cost, market demand and competition. These categories are the same for domestic and foreign sales and must be evaluated in view of the firm’s objective in entering the foreign market. An analysis of each component from an export perspective may result in export prices that are different from domestic prices.

How does an exporter put together his quotation and pro forma invoices for a foreign buyer?
Many export transactions, particularly first time export transactions, begin with receipt of an inquiry from abroad, followed by a request for a quotation or a pro forma invoice.

A quotation describes the product, states a price for it, with the time, of shipment, and specifies the terms of sale and terms of payment. Since the foreign buyers may not be familiar with the product, the description of it in an overseas quotation usually must be more detailed than in a domestic quotation.

The description should include the following: Buyers name and address; buyers address number and date of inquiry; listing of reference product and brief description; price of each item; gross and net shipping weight (in metric units where appropriate); total cubic volume and dimensions (in metric units where appropriate) packed for export; trade discount if applicable; delivery points; terms of payment; insurance and shipping costs; validity period for quotation; total charges to be paid by customers; estimated shipping date to factory or port; and estimated date of shipping arrival.

Sellers are often requested to submit a pro forma invoice with or instead of a quotation. Pro forma invoices are not for payment purposes but are essentially quotation in an invoice format. In addition to the foreign list of items, a pro forma invoice should include a statement certifying the country of origin of the goods.

Also, the invoice should be conspicuously marked “pro forma”. These invoices are only models that the buyer uses when applying for imports or arranging for funds. In fact, it is good business practice to include a pro forma invoice with any international quotation, regardless of whether it has been requested.

When final collection invoices are being prepared at the time of shipment, it is advisable to check with reliable sources for special invoicing requirement that may prevail in the country of destination.

It is very important that price quotation state explicitly that they are subject to change without notice. If a specific price is agreed upon or guaranteed by the exporters, the precise period during which the offer remains valid should be specified.

How can one find genuine buyers from these countries?
With the right knowledge you can find buyers easily. No real exporter exposes this part of their business except a fee is exchanged in agreement for it. This is one of the reasons you need a mentor and to be trained..

Your mentor or the training you take will give you information that has been tested and proven, nevertheless if you are with the right association, you will get the right information, don’t try to do it all alone, get connected!

How does one ship out the product and get paid?
I only know of two channels for shipping out these products, you either use the air cargo or ship cargo. But first, your supplier can tell you the best way to supply them because they know the best and convenient shipping method to use. For me I consider this the easiest thing to do.

Also, your best payment process has to be defined by the two parties, and based on trust and relationship, some pay as soon as they received the products, while some will make some deposit and as the products gets to them they pay you your balance, these business thrive more when there is a very good relationship between two parties.

You may want to ask, what if I am just starting out in the business. Now you will see the importance of being trained or having a mentor because sometimes referrer works in this business very well, I can only refer you to someone that I trust and I will also be sure that you can deliver after I have referred you.

For air cargo: if it’s in small quantity you can use courier services like EMS, which is reliable and cheap. If the product is much, like from 1ton to 10tons, you can use agents at the port. I use NAHCO and I have good agents that are very reliable.

What are the challenges in this business and what are the solutions?
Let us look at about eight challenges faced by an average Nigerian exporter or newbie:

An average Nigerian export is confronted with one problem or the other in the course of carrying out the export business.

Mentorship: this is the most serious challenge faced by Nigerian exporters. Export business (not until the recent time ) is not popular as it was left in the hands of few smart investors, therefore most new entrants into the business lack the required knowledge as they only attend one or two days training. But mentorship is required so that he exporter can accumulate experience in the business.

Government Policies Regulatory Policies: another serious challenge being faced by Nigerian exporters is the government policies and regulation which make it difficult to export some Nigerian products. Some of these products may require that the exporter obtains certificate or analysis report before they can be exported.

Export goods, on this category are mainly food items. For instance, it is mandatory that all food items must be NAFDAC certified and a health certificate is obtained. The cost and problems associated with these regulations are streamlined and cost cut down reasonably, export business will be as easy as ABC.

Local Charges: exporters are made to pay too high local charges, the bulk of which goes to the hands of individuals and not government agencies due to bad policies and implementation. For instance, there are levies paid by exporters to local associations and at various designated points for trucks carrying containers.

Profit Consciousness: most Nigerian exporters are too much in a hurry to make quick profit in their export business transactions. As a result of this, they run into wrong hands from sourcing to executing export process in their quest to reduce cost and make more profits. The prospective exporter needs to be patient and with time good profit will come if the business is sustained.

What is the minimum startup capital?
Startup capital varies and depends on the products you intend to start first. But for bitter kola export you don`t need much to start as you can start with "TRIAL ORDER", that is, you will have to first send samples to the buyer to confirm that you have the right product that he needs and thereafter grow with time.

A trail order can be seen as small scale way of exporting bitter-kola or other products with very little capital start up without going for TONS ORDER, which may need some huge amount to source.

 Before any prospective exporter starts to source for the bitter kola or other products for export, it is advisable to source for an export order. This involves communicating with a genuine buyer abroad and agreeing on a price and the quantity, packaging method and terms of payment, and delivering method, and such terms as may be relevant.

With N50, 000 you can start successfully and with the right knowledge.

Apart from the N50, 000 capital investment you talked about is there anything that one needs to have or know to do this business successfully?
Yes, it is more than N50, 000 capital investment. If you just want to remain a local exporter or you are too busy to get involved big time, then N50, 000 will just be okay for you to start something, going on a low key, but choosing the right product and the right destinations.  But if you want to do this export business big time you need some level of registrations.

You will have to register with the export commission council and other regulatory bodies that matter. Of course, the Federal Ministry of Health has to give you an approval on all the products you want to export and most importantly, the destination or the buyer has to also give you all the specifications and procedures to follow to reach them. Once all these requirements are met then you are in business.

But note that at the various levels of registrations with the various agencies or bodies you may be required to supply some documentation of your business which means your business must be duly registered with the appropriate bodies or agencies as the case may be. You will also need to register with some chambers of commerce and industry because this is one major platform for international opportunities.

Also, you need to be trained to be able to succeed in this business because this is an industry that thrive by information and information does not come cheap, and from the training you will know what is selling hot in the export market, where to get them cheaper than anywhere else, that is sourcing it locally and how to get it, how to get ready buyers all over the world, how to get your money, and how not to fall for dubious guys out there.

You will also learn how to package the products and how to gain access to some of the agency's that will help you export your product with ease. In fact, with the training you are equipped in such a way that even right from your leaving room you can access this information and start to run and have the ability to manage all the risk involved in the export market business.

The training is so important that you cannot succeed without it; it is like somebody calling himself a doctor without attending a medical training school.  There are rudiments in any business and until you know the rudiments you will just be struggling to start but once you are trained for the job you are like a pro that will get the job done.

Is there any way one can start with little or no capital?
Yes, but you will need to have the right information, you can start by just sourcing the products for existing exporters. For instance, maybe you know a village where these products are available in very large quantity and it is like they don’t even know the use of it and are wasting it, you could contact me or any exporter of the product and show them a sample.

But before you do that, you must have known the market price that will favor you so that you don’t over price or under price your market. So once you contact the exporter, they will buy it off you and from there you can become one of their local suppliers. If you think you have made enough money you too can pay for the training and become the direct exporter and make more money.

How long have you been in the export business and what has been your experience like?
I have been doing export business since 2007 and I have thought well over 500 people how to export all kind Agro products successfully. My experience so far has been awesome. There are times of disappointments when some transactions didn’t come out successful.

There were times government policies kicked against me and you know what happened to that deal? (lost profit).  And there were times everything went fine and smooth, majority were successful.

Advice to anyone who is interested in this business?
Advice to any serious person that wants to start small scale export is to first get the right knowledge. Make sure you know the Ups and downs of the business before investing any money. Take time to do research about the product and buyers before making any move. And finally, get a good mentor who will take you by hand and walk you through the bad and good of the business.

Culled From Successdigestonline.

AMCON’s stake in banks, others worth N100bn – Chike-Obi

The Asset Management Corporation of Nigeria, the bad debt manager created to acquire non-performing loans of banks in the aftermath of the 2009 banking sector crisis, still has shares worth over N100bn in Deposit Money Banks and other companies, its Chief Executive Officer, Mr. Mustafa Chike-Obi, has said.

He listed some of the banks in which the corporation has shares as Access Bank Plc, Diamond Bank Plc, Sterling Bank Plc, Unity Bank Plc and Wema Bank Plc.
AMCON’s intervention in the banking sector in 2009 followed the discovery of huge toxic assets in the banks’ books, a situation that led the bad debt manager to convert some of the NPLs to shareholdings in the affected banks.

Chike-Obi told our correspondent in an exclusive interview on Tuesday that AMCON would sell its shares in the banks “as soon as it is practicable.”
“We hold shares in banks as an intervention and we will get rid of them as soon as practicable,” he said.
The CEO, however, stated that some things had to be in place before AMCON could decide to sell the shares.

“There are things that have to be in place. You have to check the market; you have to check if the bank is in solid footing, you have to check many things to ensure they are in place before you start selling your shares,” he added.
Aside from these, Chike-Obi said the need to meet some mature obligations was another factor that might compel the agency to sell its shares in the banks and other companies.

AMCON had last year sold its 20 per cent stake in Union Bank to Atlas Mara, a financial investment institution managed by a former Managing Director of Barclays Bank, Mr. Bob Diamond. The corporation also sold its shares in Ecobank Transnational Incorporated to a bank in the Middle East.
Justifying the sale of the shares, the AMCON boss said the shares in the two banks were relatively smaller compared to its stake in Wema Bank and Unity Bank.

He said, “In those banks (Union Bank and Ecobank), we had a much smaller percentage compared to what we have in Wema Bank and Unity Bank. It was easier for the shares to be sold because of the ownership.
“I believe we are in majority in Unity Bank at this point and we are near majority in Wema Bank as well; so, it is a different cup all together. And we will sell them as soon as practicable.”

Highlighting other reasons the bad debt manager might chose to sell its stake in other banks, Chike-Obi explained, “We are holding shares worth at least N100bn in total in banks and other companies. We are holding them because we believe in the long-term viability of the capital market.

“Last year, we needed to sell shares (including that of Union Bank and ETI) in order to redeem our bonds.”

On the possibility of another AMCON intervention in the banks following the reported rise in their NPLs, he said that might be difficult because all the principal parties, including the Presidency, Ministry of Finance, the Central Bank of Nigeria and AMCON must agree before it could happen.

He, however, noted that the rise in the NPLs had yet to reach an alarming state that would call for another intervention.
“Well, I don’t think that the rise in the NPLs is dramatic; it is a marginal rise and it is manageable. I don’t think Nigerians need to be concerned about the NPLs at this point. It is good to be ahead of it rather than behind it,” he explained.

On the divestment of AMCON from Keystone Bank, the last of the three nationalised banks, Chike-Obi said the decision would be reached after its board meeting and a briefing session with the new President, Muhammadu Buhari.

AMCON had last year divested its 100 per cent stake in Enterprise Bank and Mainstreet Bank, two of the three nationalised financial institutions.
On the picketing of AMCON’s Abuja office by workers of an oil firm, Seawolf, on Monday, he said the agency was not owing the protesting workers and as such, would not pay them anything.

Chike-Obi said, “We are only trying to get out money from Seawolf just like the way the workers are trying to do. AMCON has not taken over the management of the company. We don’t have any business with the workers. The workers were even employed by an agency called OMS.

“AMCON went to take over Seawolf’s assets, which it bought with depositors’ money. Our intention is to hold on to those assets until we are able to get the money. So, picketing AMCON’s office is a subtle blackmail. It won’t work with us. We have talked to them; we have explained the situation to them.”

[Punch]

Abuja’s power supply dips to 120MW from multiple system failure

Field reports gathered on Thursday in Abuja disclosed that multiple system collapses of transmission facilities of the Transmission Company of Nigeria (TCN) has cut available electricity supply to the federal capital city to about 120 megawatts (MW).

The development which has lasted for more than 24 hours as at the time of filing this report, showed that even the city’s environs are not left out of the extended blackouts that have come with the dip.
An official of the Abuja Electricity Distribution Company (AEDC) which provides public electricity services to Abuja, Kogi, parts of Niger and Nasarawa States, who was contacted, provided THISDAY with consecutive updates on the system collapses from Wednesday afternoon when it was first reported by 2p.m.
Reports from these updates explained that the first system collapse happened around 14.00hours, and thus cut supply to AEDC to about 30MW.

AEDC is statutorily allocated 11.5 per cent of the total daily generated power in the system, at the moment, it has about 247MW allocated to it from about 3681MW that is generated now, it however cannot take more than 120MW due to the collapse.
“We have had a system black out since 14.00hours and restoration has yet to begin. We are still not furnished with information from the TCN on the cause. We will brief you as information is received,” one of the text responses from the informed senior official of AEDC read.

The official also stated later at dusk after it was reportedly observed that restoration work might have started on the system that: “This is to advise that the process of restoration has begun. 30MW has been allocated since 1605hours.”
The situation however did not improve at about 22.00hours (10p.m) on Wednesday when inquiries revealed that the collapse might have affected certain sensitive power installations in the city, thus leaving it with lengthen blackout.

But in a swift clarification of the situation, the Head of Media, AEDC, Mallam Ahmed Shekarau, in a text message said that the TCN was yet to update the electricity distribution company on the multiple incidences that had deprived electricity consumers of power supply for that long.

“We wish to advice of another system collapse since 22:00hours. No information is available about the cause and restoration is yet to commence,” Shekarau explained in a response he sent via text.

The development had also continued into the early morning of Thursday when AEDC again alerted of a continuous collapse that cut supply to its franchise distribution zones.
Shekarau in this regard stated: “TCN told us that they are working on it but the National Control Centre advised that we cannot take more than 120MW because of the collapse.”

“So, until they are able to fix it, we will continue to ramp up gradually for now,” he added.
Abuja Disco charges its residential electricity customers (R2) between N14 and N15 per kilowatt hour (kwh) in the regulator’s approved tariff for it. The lengthy hour of supply cut would have in addition to affecting its customers, also impacted on its revenue especially from metered customers.

Efforts however to ascertain the cause of the collapses from TCN officials yielded no result as its Director of Networks, Musa Gumel did not pick his calls or respond to text message sent to his phone.

But in a related development, the Nigerian Electricity Consumers Advocacy Network (NECAN) which was initiated by the Nigerian Electricity Regulatory Commission (NERC) has alleged that the commission has withdrawn its support to the network.
NECAN was initiated by NERC to stimulate the interests of consumers in developments within the power sector. The idea according to NERC for NECAN was to help consumers gain some good ground in arguments for accountable service delivery in the sector,

Chairman of NECAN’s Steering Committee, Chief Tomi Akingbogun, in a press briefing said NERC had refused to live by its pledge to support the steering committee in its work.

He explained that NECAN was given the mandate to set up office, recruit staff and set up reliable advocacy network and contacts with all the six geographical zones of the country according to the Terms of Reference (ToR) submitted to NERC for the development of a framework for engaging consumer advocacy groups in the Nigerian Electricity Supply Industry (NESI) but that NERC seems uninterested in the network anymore.

“By May 25, we updated NERC with our activities so far and requested for part of the starting funds especially to secure the office space and equip it and employ staff.
“NERC has not replied the letter, but on follow up, we were shocked by the verbal response from the chairman, Dr. Amadi that NERC has decided not to support NECAN financially,” Akingbogun alleged.

[ThisDay]

FG proposes fresh rules on cabotage fund disbursement

 The federal government has proposed fresh rules that will guide disbursement of the much awaited Cabotage Vessel Finance Fund (CVFF), Permanent Secretary in the Federal Ministry of Transport (FMOT), Mallam Mohammed Bashar has said.

Though Bashar did not disclosed the reason for the proposed changes in the guidelines governing the disbursement of CVFF, THISDAY checks revealed that this might be in line with the directive by the new government in power.

CVFF was initiated by the federal government  as a way of implementing the provisions of the Coastal and Inland Shipping (Cabotage) Act 2003.
According to its provisions, the objective of the Cabotage Act is primarily to reserve the commercial transportation of goods and services within Nigerian coastal and inland waters to vessels flying the Nigerian flag and owned by persons of Nigerian citizenship.

Since CVFF was established,  billions of naira have  accrued into the account as the government  continue to prevaricate on the exact date for its disbursement to qualified ship owners.

No fewer than  nine persons were selected by the government during the administration of Dr. Goodluck Jonathan following their selection by the primary lending institutions (PLIs).
The PLIs, which comprise selected commercial banks are those saddled with the responsibility of guaranteeing the loans to the beneficiaries through the Nigerian Maritime Administration and Safety Agency (NIMASA).

These measures were put in place to forestall any form of abuse in the disbursement of the CVFF as it was the case in the Ship Acquisition and Ship Building Fund (SASBF) which was diverted by many beneficiaries.

Successive Minister of Transport and Director Generals of NIMASA have repeatedly promised to disburse CVFF to no avail, fueling speculations  that the funds might have been diverted into private pockets.

However, Bashar has dropped the hint of the government’s  intention to make fresh changes in the guidelines guiding the disbursement of the CVFF.   at a forum organised by the Captain Dada Olabinjo led faction of Nigerian Ship Owners Association (NISA).

The permanent secretary expressed regret that the government has not been able to disburse the CVFF, saying the ministry will soon come up with fresh guidelines on the disbursement of the fund.

“We shall soon invite stakeholders like you to a forum where these guidelines on CVFF would be unfolded. This will enable you and other members of the public to make inputs where necessary. We want you to take a look at them. Study them and see how you can take advantage of the enormous opportunities in our Cabotage trade by accessing the funds and make progress as a serious maritime nation”, he said.

According to the provisions of the Cabotage Act, encouraging indigenous shipping lines to participate in coastal and inland trade, administering CVFF, enlightening and sensitizing would-be investors in the Cabotage trade through seminars, conferences, and workshops remain some of the key functions of the Act.

Others are maintaining a registry of vessels for cabotage trade as well as  registering ships owned by indigenous shipping lines to participate in the nation`s Cabotage trade.
It is expected that as soon as the cabinet of Buhari is in place, clamour for the disbursement of the fund by stakeholders in the maritime industry would take the centre stage as the new Minister of Transport settles down to perform his statutory roles and responsibilities.

Thisday

NCAA approves NAHCO’s new charges

 The Nigerian Civil Aviation Authority (NCAA) has given approval to the recent cargo tariff increase being implemented by the Nigerian Aviation Handling Company Plc (nahco aviance), the company said.
NAHCO and clearing agents under the aegis of the Association of Nigeria Licenced Customs Agents (ANLCA) and the National Association of Government Approved Freight Forwarders (NAGAFF) had agreed to a 20 per cent tariff increment in May. The increment had since taken effect.

According to the company, although the official approval by the NCAA was just now being made public, it is a sign of endorsement of the processes embarked upon by the ground handling company in reviewing its tariffs.

In a letter addressed to the MD/CEO of nahco aviance, dated June 2, 2015, and signed by the NCAA’s Director – General, Capt. Muhtar Usman, the NCAA said, “In line with powers conferred on the Authority by Part 18.7.3.1 of the Nigerian Civil Aviation Regulations (Nig. CARs) 2012, approval is hereby given to your company to increase the Import Handling Charge from N38.00/kg to N46.00/kg and the Courier Handling Charge from N45.00/kg to N54.00/kg as agreed with the stakeholders.”

While commending NAHCO for embarking on wide consultation with all stakeholders before embarking on the tariff increase, NCAA stated further that it “wishes to advise that Nahco Aviance should continue to ensure adequate consultations with the stakeholders in line with the laid down guidelines and regulations guiding review or introduction of any charge.”
It further asked that NCAA be invited as an observer to future consultations on such a subject – matter.

In a meeting at the head office of NAHCO in Lagos, on May 15, 2015, the negotiating team of ANCLA led by the Vice – Chairman, Honourable Bola Ashiru – Balogun, with the Treasurer, Afolabi Azeez and the Financial Secretary, Obanla Alex said that they reached the agreement with NAHCO in the interest of the overall development of the industry and in realization of the fact that both sides were in this tough economic situation together.

The MD/CEO, nahco aviance, Mr. Norbert Bielderman said at the meeting that what happened was in the best spirit of give and take. He thanked everyone involved in the negotiations for their maturity while particularly thanking the ANCLA representatives for their professionalism.

He said, “I would like to thank you all for the professionalism you brought into these negotiations. You guys have been very professional. I appreciate that.”
Bielderman urged the Association leaders to always feel free to approach NAHCO whenever issues that concern both parties arise.

[ThisDay]

Ambode lays foundation for N450m NBCC Plaza

Lagos State Governor, Mr. Akinwunmi Ambode has laid the foundation stone of the multi-million Naira Nigeria British Chamber of Commerce (NBCC) Plaza in Lekki Phase 1, Lagos.

The four-storey edifice, which will gulp over N450 million, will serve as offices, training and conference centre and will promote trade relations between Nigeria and Britain, according to President of the Chamber,  Adeyemi Adefulu.

Ambode who was represented by the Deputy Governor, Dr. Idiat Oluranti Adebule, said Lagos State would continue to provide enabling environment to attract foreign direct investment through policy framework and infrastructural development. ”I congratulate NBCC for this laudable project which will go a long way to help trade and investment. This demonstrates NBCC’s continuous commitment to enhance trade and bi-lateral relations between Nigeria and the United Kingdom (UK),” Ambode said.

Adefulu said the Chamber was founded about 40 years ago to promote business relations between Nigeria and Britain. He noted that Britain accommodates almost three million Nigerians and is regarded as the second home of Nigerians.

”This is a relationship that should yield abundant results. Our exports should be going into the UK everyday but in London supermarkets you find yams, plantains, pepper and so many things from other countries but not from Nigeria. Part of the problem is that there are no cold rooms in our airports to keep perishables like fish, vegetables which are delivered to the airport in the morning, left in the sun and by the time it gets to the UK at night everything is spoilt for a journey that takes just six hours,” Adefulu lamented.

According to him NBCC are partners in progress with Lagos State because Lagos has huge potentials for trade and investment, which is why the plaza is located in Lagos.
The Plaza, which is expected to be completed in 50 weeks, will house events centre, shopping centre, two training suites, meeting rooms, office and will host foreign trade delegations from the UK and other countries.

[ThisDay]

Elumelu calls for more investment in energy projects

The Chairman, Heirs Holdings, Mr. Tony Elumelu, has restated his commitment to the African Energy Leaders Group as it strives to encourage initiatives that will address energy challenges in Africa.
Elumelu, who spoke in Abidjan, Cote d’Ivoire at the meeting of the AELG, also called on African economic and political leaders to increase investments and intensify efforts aimed at ending “energy poverty” on the continent.

“Providing access to electricity for schools, hospitals, businesses and industries is the single most impactful intervention that can be made to transform the continent,” he was quoted as saying in a statement by Heirs Holdings.

He added that the provision of access to electricity had tremendous implications for job creation, health, food security, education, technological advancement and overall economic development.
Inaugurated during the 2015 World Economic Forum in Davos, Switzerland, the AELG brings together political and business leaders at the highest level to drive the reforms and investment needed to end energy poverty and to ensure sustainable fuel supplies on the continent.

To ensure that the AELG achieved its objectives, Elumelu, who is a founding partner and Co-chair of the group, announced a financial commitment to the group at the meeting.

He was quoted as saying, “I am making a pledge to provide $150,000 over the next three years to support the operations of the AELG secretariat. I want to call on the governments of the member states of the ECOWAS region, and AELG members and partners to also step up with significant multi-year commitments to sustain the organisation.”

Following Elumelu’s lead, pop star, Akon, who also attended the event to promote his Lighting Africa Initiative, pledged $200,000 to support the work of the AELG secretariat.

Other founding partners of the AELG are Ivoirian President, Allasane Ouattara; Ghanaian President, John Mahama; President, African Development Bank, Donald Kaberuka; President and Chief Executive Officer, Dangote Group, Alhaji Aliko Dangote; President ECOWAS Commission, Kadre Ouedraogo; and President UEMOA, Cheikhe Hadjibou Soumare.

Providing access for all Africans to reliable, affordable energy services and efficient
appliances by 2030 is a key goal of AELG.

Elumelu had been an advocate of the development of the power sector on the continent for year. In 2013, he had committed to investing $2.5bn in the power sector in Africa through President Obama’s Power Africa Initiative

NSE moves 390.53m shares worth N4.86bn

Investors on the Nigerian Stock Exchange (NSE) on Friday staked N4.86 billion on 390.53 million shares in 4,291 deals.

The News Agency of Nigeria (NAN) reports that the volume of shares traded increased by 81 per cent from the 215.82 million shares valued at N7.51 billion traded in 3,713 deals on Thursday.

The banking sub-sector remained the toast of investors with Zenith Bank emerging the most traded, exchanging 112.98 million shares worth N2.19 billion.

It was trailed by Access Bank with 48.85 million shares valued at N300.03 million, while Africa Prudential sold 35.53 million shares worth N95.09 million.

UBA accounted for 28.72 million shares valued at N148.58 million, while Transcorp traded 26.54 million shares worth N72.15 million.

However, the market indicators, for the fourth consecutive day, dropped further by 0.61 per cent following price huge loss by some blue chip companies.

The All-Share Index lost 202.60 points or 0.61 per cent to close at 33,257.90 against 33,460.50 achieved on Thursday.

Similarly, the market capitalisation, which opened at N11.421 trillion, dipped N68 billion to close at N11.353 trillion.

Guinness topped the price losers’ chart, dropping N9.23 to close at N165 per share.
Presco trailed with a loss of N2.50 to close at N32, while Mobil Oil declined by N1.99 to close at N148 per share.

Nigerian Breweries lost N1.98 to close at N148.02, while International Breweries lost 73k to close at N18.52 per share.

Conversely, CCNN led the price gainers’ table, growing by 55k to close at N11.64 per share.

Forte Oil grew by 18k to close at N179.98, while Flour Mills gained 15k to close at N34.70 per share.

FCMB rose by 8k to close at N3.08, while Stanbic IBTC also garnered 8k to close at N27.60 per share. (NAN)

Lagos Government is intimidating us – Ladipo Market traders

The Association of Japanese Spare Parts Dealers in Ladipo Market in Mushin Local Government Area has decried the recent demolition of their shops by the council in the early hours of Tuesday, describing it as an act of intimidation and lack of respect for their fundamental human rights.

The association made this known during an inspection tour by the President of Ohaneze Ndigbo, Lagos State chapter, Mr. Fabin Onwuhalu. Speaking during the inspection, Onwuhalu said the recent demolition of shops at Ladipo Market was clear of intimidation by the state government and its agents against the traders because the government wants to use such opportunity to extort money from the traders.

He also explained that the demolition of those shops are uncalled for because the people are doing businesses which he said boost the automobile industry and transport sector, thereby contributing immensely to economic growth.

While stating that this was their only source of livelihood of the people, the Ohanaeze chief said destroying it would amount to denying them their sources of income.

According to him, “This is exercise by the state government is a complete denial of the fundamental human rights of the traders. Let me say here that every Nigerian irrespective of tribe has the right to do business in any part of the country, therefore I see no reason why this demolition exercise should be embarked upon just to endanger other people’s businesses and source of livelihood.

“This action exemplifies that we are not practicing constitutional democracy in this country and we lack love and respect for one another. I want to say here that this is a reflection of corruption at the highest order.”

He further expressed the desire of the Ohanaeze Ndigbo as a concerned group for the Igbo tribe to support their brothers whose shops were demolished and property worth millions were damaged, promising that the group would ensure that justice is achieved in their situation.

He also commended them for their conduct after the unfortunate incident took place.
Continuing, he added that: “We are going to follow due process of the law in seeking for justice and compensation for the damages suffered by our brothers. Presently, the case is in court and we are hopeful that justice will be taken. We can only embark on peaceful demonstration, because we do not allow violence protest. We believe that at the right time, the perpetrators of this inhuman act would be sanctioned and arraigned before our disciplinary committee and they would be tried. At the moment the issue is an allegation.”

[ThisDay]

Investors see growing risks in naira devaluation delay

International investors, dismayed by Nigeria’s decision to delay a naira devaluation they see as long overdue, will hold back from its stock and bond markets, raising risks of a deeper crisis in Africa’s biggest economy.

The afterglow from March, when an incumbent president handed over power after what was seen as Nigeria’s freest ever election, is dissipating as President Muhammadu Buhari shows little sign of following up on promises of economic reform, Reuters reported.

Markets have moved sharply in the past week in particular after the Central Bank of Nigeria (CBN) announced curbs on dollar funding for investors, as well as for importers of goods ranging from toothpicks to private jets.

The move, meant to conserve foreign exchange, has dashed widely-held expectations of a naira devaluation – the central reform that investors had been banking on.
Since then 10-year bond yields have jumped 1 percentage point to almost 15 per cent, stocks have fallen and the naira’s value is plunging in the parallel market, down about 7 percent from early-June levels.

A devaluation to restore the economy to competitiveness is a matter of time, fund managers still believe. In the meantime, they are unlikely to bring back cash they pulled out before the election.
“It will take a combination of weaker currency and higher interest rates to get us back to Nigeria,” Reuters quoted a bond fund manager at Standard Life Investments, Kieran Curtis, to have said.

“When we compare Nigeria to other oil exporters it hasn’t had enough of a currency adjustment.”
With oil exports providing 70 per cent of budget revenues, Nigeria can certainly use a cheaper currency. Most had reckoned on a 10-15 percent devaluation at least and some such as Curtis estimate a 20-25 percent move is probably needed.

The naira fell 20 percent in the year to February. In real terms, currencies of oil-exporting peers Russia and Colombia are five and 17 per cent respectively below long-term averages. African oil producer Angola also recently devalued its kwanza, which is down 15 per cent to the dollar this year.
And the price for supporting the naira is high – the central bank has spent at least $3.4 billion since fixing the exchange rate in February and reserves have fallen below $30 billion for the first time since 2005.

Devaluation expectations continue to mount. Non-deliverable forwards (NDF), derivatives used to hedge against future exchange rate moves, reflect expectations of currency weakening: six-month NDFs price the naira at N225 per dollar, while a week ago the forward price was around N215.
“To me, (central bank measures) are doing more harm than good: you are putting off the inevitable and the reaction you are seeing on rates markets and the NDF shows that,” a fund manager at Aberdeen Asset Management, Kevin Daly said.

“Effectively the bond market is starting to price in a much wider move on the currency.”
Curbing access to dollars may briefly stabilise reserves and constrict imports but pent-up demand for hard currency will eventually weaken the exchange rate and drains central bank coffers.
It may also stoke inflation if importers are forced to pay more for dollars. The naira trades at  N230 per dollar in the black market, some 14 percent below the official rate.

With oil revenues down and borrowing costs rising, the 2015 budget is already 3.2 per cent smaller than last year’s. By early May, the government had already exhausted half its borrowing allowance for the year.

Ten-year yields at almost 15 percent, N250 basis points above post-election lows, will raise borrowing costs for the government and the private sector.

“Ultimately (devaluation) will become more of a fiscal necessity than an external necessity. The longer they will take to do the adjustment, the bigger the adjustment would have to be,” portfolio manager at Investec’s African Fixed Income Fund, Antoon de Klerk said.

And crucially for investment flows, Nigeria’s place in the GBI-EM local currency debt index looks increasingly precarious.

JPMorgan warned in June it could eject Nigeria from its benchmark index by year-end unless it restores liquidity to currency markets in a way that allowed foreign investors to transact with minimal hurdles.

Nigeria has a 1.8 percent share in the $220 billion index, suggesting $4 billion in inflows, Morgan Stanley estimates, a major offset to its current account deficit.
“Were Nigeria to be removed from the index as a result of the dry-up in liquidity as forewarned by the index provider, upside risks to our naira forecast of 200-205 (per dollar) over the next 12 months could crystallise immediately, especially if one considers that its (annual) current account deficit could be up to … $10 billion,” Morgan Stanley said.

[ThisDay]