- Tyre Dealers, Unity Bank Partner on N1.5bn Market
Tyre and heavy motor spare parts dealers in the popular Azikiwe Street Aba have commenced the construction of N1.5 billion specialised market that would take them out of the already congested commercial city to a new location on the outskirts.
The state government was already bent on relocating most of the market clusters out of the centre of the bustling commercial city to free it from encumbrances in the ongoing efforts at urban renewal.
But the traders under the aegis of Aba Heavy Motor Parts and Tyre Sellers Association (AHMPATSA) said that they would not wait for government to take them by surprise with forceful eviction hence their decision to build their own market at Alaoji.
To give effect to the construction of the market with capacity for 1,200 shops, a memorandum of understanding (MoU) has been signed with AHMPATSA, Unity Bank, the project financiers and Logistics De-Luke Ltd, the contractors.
Speaking at the ceremony, the chairman of board of trustees (BoT) of AHMPATSU, Chief Phillip Ezekwem said that said that the dream for a specialised market for trye and heavy motor spare parts dealers started in 1994 and with the signing of the MoU , “the journey is coming to an end“.
“Our problem is over after signing the paper works as work would commence immediately,” he said, assuring that “we are going to fulfill our own part of the deal.”
The chairman of the developers of the new market, Logistics De-Luke Ltd, Mr. Raymond Aliga noted that the AHMPATSA has become the only market association in the Southeast zone that has acquired land, designed their market and got a developer to build it.
He said that the new market was strategically located within the axis of Abia, Imo, Akwa Ibom, Rivers and Cross River, adding that the market would be ready in nine months. Aliga urged other market associations to emulate AHMPATSA and assured that the modern market would be open to tyre and heavy motor spare parts traders outside Aba, including Lagos and Port Harcourt.
The chairman of Logistics De-Luke urged AHMPATSA to stick to the terms of the MoU and cooperate with the developers and the financiers to realise the project within the contractual time frame.
Senior special assistant to the governor of Abia state on trade and investments, Mr. Jude Udeachara said that Governor Okezie Ikpeazu “is very supportive” of AHMPATSA in its efforts to build a market for its members thereby complying with government’s directive to decongest the commercial city.
He said that government would build a kilometer road into the new market and donate a high capacity generator to ensure constant power supply to the market.
Udeachara said that AHMPATSA has set the pace for other traders in Aba, adding that with this initiative by the tyre and heavy motor spare parts dealers other market clusters would be encouraged to emulate them.
He said that aside from the 1,200 shops the market would have space for banks, spacious parking lot administrative block, restaurant, and security post as well as other amenities.
In his remarks the brand manager of Unity Bank, Mr. Donatus Ubechu said that the bank was encouraged to finance the market project because of the enthusiasm shown by the leadership and members of AHMPATSU as well as the sterling record of the developers, Logistics De-Luke in quality and timely execution of projects.
COVID-19: Demand for Second Passport by High Net Worth Individuals Surges 50 Percent
The number of high net worth individuals looking for a second international passport in order to improve their global access rose by 50 percent year-on-year, according to the latest statement from the deVere Group.
The group said national lockdowns, borders and travel restrictions have helped boost enquiries for second passports, citizenships and overseas residencies this year.
deVere Group, an independent financial advisory firm, that manages over 100,000 clients globally said demand for its residency and citizen service skyrocketed in this highly unusual year.
Most of the enquiries were from high net worth individuals from the U.S., India, South Africa, Russia, the Middle East and East Asia “who are seeking alternative options in Europe and the Commonwealth.”
According to Nigel Green, the Founder and CEO of deVere Group, “Previously, a second passport, citizenship or residency were regarded by many as the ultimate luxury item; a status symbol like yachts, supercars and original artwork.
“While this still remains the case, there’s also been a shift due to the pandemic.
“Now, second citizenship or overseas residency are increasingly becoming not just a ‘nice to have accessory’ but a ‘must have.’
“Whether it be for personal reasons, such as to remain with loved ones overseas or be able to visit them, or for business reasons, a growing number of people are seeking ways to secure their freedom of movement as they have faced travel restrictions which are, typically, based on citizenship.”
He continues: “The pandemic has served as a major catalyst for demand which skyrocketed this year. It has focused minds to secure that second passport or elite residency.
“However, the appeal for is broader than just the global Covid-19 crisis.
“Increasingly people prefer the concept of being a global citizen, rather than being solely tied to the country of their birth.
“They too value the many associated benefits including visa-free travel, world-class education, optimal healthcare, political and economic stability, reduced tax liabilities and wider business and career opportunities.”
However, nations have different criteria for granting citizenship, including time spent in the country, the ability to prove the legal source of funds and zero criminal records.
For instance, Portugal’s residency program requires just two weeks every two years of residency to gain the benefits, including the right to live, work, study and open a business there, as well as travel across the 26 countries of Europe’s Schengen area.
“More and more nations are running citizenship-by-investment programs, in which applicants invest an amount of money in a sponsoring country typically in high-end, new-build real estate developments in exchange for permanent residency, citizenship, or both,” affirms James Minns, deVere’s Head of Residency & Citizenship.
“These programmes, which high-net-worth individuals regard as invaluable insurance, are typically based on property investments that start from 250,000 EUR.”
Nigel Green concludes: “These highly unusual times have fuelled the surge in demand for second passports.
“The pandemic has brought into sharp focus what really matters to people: family, freedom and security.”
Online Shopping Skyrockets Amidst COVID-19 Pandemic
Lagos, Tuesday 30 November 2020 – As we experience the first-ever Black Friday promotional phenomenon under lockdown, the dominance of online shopping platforms has become crystal clear.
To keep track of this development Nielsen Global Connect has conducted extensive research that includes an overarching view of the massive increase in online FMCG shopping and just how rapidly it evolved over the first six months of lockdown.
Nielsen Connect, Global Intelligence Unit, Executive Director Ailsa Wingfield comments; “Amidst the COVID-19 pandemic, online FMCG shopping usage has advanced by up to five years in just six short months. As a result, there has been a rapid increase in online shopping and usage with new users, frequency and preference having skyrocketed.
Preference of online as the most-used channel has also more than doubled.
Evidence of this results from the Nielsen New Shopper Normal Study which was conducted in May 2020 allowing for powerful insight into the effect of the COVID-19 lockdown on consumers, during an unprecedented time in our history.
The Nielsen study found that in terms of new Nigerian FMCG online shoppers, 29% had never shopped online. Sixty-seven per cent recently shopped online during the past week and 12% shopped most often online during the past week versus only 7% pre COVID-19. In terms of Frequency, 23% said they shopped online multiple times a week and 44% shopped once a week.
The best of both worlds
Nielsen’s consumer and retail measurement evidence therefore clearly shows a massive and ongoing move to online, but it must be pointed out that this is not in isolation when considering the overall shopping journey. In Nigeria, two-thirds of consumers (67%) say they are now using both online and offline channels with fewer exclusive brick & mortar shoppers at 33%.
Wingfield elaborates; “Overall, consumers are shopping and buying in a mixed reality. In many instances, online shopping options are a new addition to their existing store repertoire but most consumers indicate that they will maintain a combination of online and offline – which will lead to the rise of more omnichannel shopping journeys and experiences.”
Interestingly, this adoption is even more pronounced for ‘Constrained Consumers’ – those who have been impacted by job/income loss. These consumers are less likely to be exclusive Brick & Mortar shoppers as Omni shopping is even more important to help them make better and more frugal choices.
Wingfield adds; “The challenge for retailers is that consumers want equivalent experiences regardless of the environment in which they shop. These are categorised by a seamless experience where the retailer’s online, and bricks and mortar offerings, are connected and offer a similar and familiar shopping experience.”
Still more work to be done
In terms of the remaining obstacles for retailers to overcome and where online needs to work harder, the biggest concern for Nigerian shoppers is delivery which has emerged as the most important factor to get right. 42% of Nigerian consumers stated they wanted same/next-day delivery while 21% said they don’t want to wait when there are no slots available.
When it comes to Price & Promo perceptions, 57% of respondents said online prices had increased, while 22% perceived less online promotion and 17% said online was more expensive. That said, online price perceptions are currently more favourable than offline (brick and mortar) perceptions. They may also improve even further, following the heavy push by retailers of online-only Black Friday and year end seasonal promotions.
Looking to the future
Looking at how consumers’ newfound relationship with online shopping will evolve, Wingfield comments; “We saw that ‘necessity catalysts’ such as safety and precaution considerations and the availability of products initially drew consumers online, but there are still several obstacles to overcome. To sustain online FMCG traction, retailers and brands will need to focus on how they can solve consumers’ changing needs by differentiating their offerings in the Omni shopping journey.”
She goes on to suggest; “They will need to solve for overall satisfaction and experiences in the areas of time, convenience, availability and value based on consumers’ altered circumstances to truly differentiate themselves.”
Rising Operating Costs, Exchange Rates, Service Charge Increased Airfares by 100%
Price of air tickets rose by 100 percent across several routes as rising operating costs, high foreign exchange and surged in service charge forced airline operators to raise airfares.
Airlines attributed the increase to a series of price adjustments and the introduction of new fees by the Federal Airport Authority of Nigeria (FAAN). According to them, airline firms were given special concessions, which will continue to push price up and could hit an average of N100,000 for even the Lagos/Abuja route.
Speaking on the situation, Captain Ado Sanusi, the Managing Director of Aero Contractors, said airline companies could not access forex at the official rate while the FAAN had upped its fees.
He said “We were buying dollars at N360 and it went to N380 but you can’t get it for less than N480.
“We are paying VAT at 7.5 per cent. We are paying 15 per cent duty on our spare parts. The boarding passes, we pay 15 per cent duty on it.
“The passenger service charge has increased by FAAN. So, don’t look at one component but look at the total reason for the increase.
“Yes, there is an increase in demand but it is caused by the lack of aircraft and this lack of aircraft is caused by unavailability of spare parts which is also caused by dollar scarcity.”
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