- Retail Consumption Hits $388b Yearly
The Founder, Centre for Value Leadership (CVL), Prof. Pat Utomi, has disclosed that Nigeria’s current retail consumption is estimated at $388 billion annually and could rise to $1.4 trillion by 2030.
Speaking during the fourth CVL Economic Growth Sector Celebration Series, he noted that “retail trade growth in Nigeria is fuelled by increase in the size of the Nigerian population. More than 80 million of Nigeria’s 170 million citizens live in or close to urban areas, increasing disposable incomes of the growing middle class population and the drive by the government to modernise retailing.”
With the theme: “Unlocking the potentials of Retail Trade Industry in Nigeria,” he further stated that bringing the goods needed by families and the men and women of the modern era to their awareness and easy reach at affordable prices is part of the miracle of the modern retail trade. That magic has progressively shifted from analogue to digital.
The Consultant, Franchise Business Development Services, Chigozie Nwizu, listed some importance of franchise to retail to include: reducing risks of failure, access to propriety, products or services; bulk buying advantages; industry know how; shared marketing, advertising and launch campaign costs.
The Managing Director, Proshare Nigeria, Femi Awoyemi, who spoke on “Financing Retail Trade in Nigeria”, noted that everyone must accept the limitations of our financial markets and help them create new appreciation for the retail trade ecosystem. This posits that all growth will be reflected in the commerce that takes place; work with companies, that is, manufacturers to design effective credit schemes that ameliorate the limitation of owner capital.
Also, the Executive Director, World Trade Centre Lagos, John Adeleke, who spoke on the ‘significance of the rebirth of Nigeria’s formal retail sector’ said the federal government and its agencies must support the emergence of the formal retail sector with a better harmonised policy and regulatory regimen.
Similarly, the Group Managing Director, Artee Group, Haresh Keswani, who discussed ‘Retail Revolution – An opportunity’, said retailing is the major mass employment driver for Nigeria with the lowest barrier to employment for youths.
He noted that one shopping plaza employs around 8,000 people directly or indirectly; and retail revolution has the capability to make Nigeria self-sufficient with an effective and efficient workforce and can propel Nigeria towards an export oriented economy.
On his part, the President, Retail Council of Nigeria, Asiwaju Solomon Onafowokan, said government should review restrictions on banned products that are not manufactured in Nigeria, and urged it to encourage Local Direct Investment in order to get the benefits of Foreign Direct Investment.
Some of the companies that were honoured included: Ikeja City Mall, Jumia, Spar, Shoprite, Ebeano, Chellarams, GT Bank, Adiba, National Agency for Food, Drug Administration and Control (NAFDAC), Persianas Group, Ministry of Industry, Trade and Investment, and Lagos State Government.
Portland Paints, Chemical and Allied Products Plc Agreed to Merge
Portland Paints and Products Nigeria Plc and Chemical and Allied Products Plc have agreed to merge, according to the latest statement from both companies.
In a statement released through the Nigerian Stock Exchange, the Board of Directors of CAP said we are “pleased to inform you that following discussions and negotiations, the Boards of CAP and Portland Paints have reached an agreement to undertake a merger between both entities (the “Merger” or the “Proposed Merger”).
Accordingly, we “hereby present to you the terms and benefits of the Proposed Merger for your consideration and seek your support and approval to effect the Proposed Merger.
“The Proposed Merger presents a compelling opportunity to create significant value for shareholders of CAP and achieve the company’s strategic growth objectives as a larger company with a broader product portfolio, more corporate owned brands and diversified revenues.
“The resultant entity is also expected to benefit from enhanced distribution capabilities in addition to economies of scale and operational efficiencies.”
Tony Elumelu Acquires Shell, Total, ENI Stakes in OML 17
Tony Elumelu owned Heir Holdings Limited and its related company Transnational Corporation of Nigeria Plc on Friday announced it has completed the purchase of 45 percent stake in Oil Mining Lease (OML 17) through TNOG Oil and Gas Limited.
The acquisition includes all assets of Shell Petroleum Development Company of Nigeria Limited (30 Percent), Total E&P Nigeria Ltd (10 percent) and ENI (five percent) — in the lease.
It was further stated that TNOG Oil and Gas Limited will also have the sole right to operate OML 17.
The field presently has a production capacity of 27,000 barrels per day. Also, there are estimated 2P reserves (proven and probable) of 1.2 billion barrels and an additional one billion barrels in possible reserves — all of oil equivalent.
A consortium of global and regional banks and investors provided a financing component of $1.1 billion for the largest oil and gas financing in Africa in over a decade.
In a statement released on Friday, Shell said the completion was after all the necessary approvals have were received from authorities.
“A total of $453m was paid at completion with the balance to be paid over an agreed period. SPDC will retain its interest in the Port Harcourt Industrial and Residential Areas, which fall within the lease area,” the SPDC said.
Speaking after the completion of the deal, Elumelu said “We have a very clear vision: creating Africa’s first integrated energy multinational, a global quality business, uniquely focused on Africa and Africa’s energy needs. The acquisition of such a high-quality asset, with significant potential for further growth, is a strong statement of our confidence in Nigeria, the Nigerian oil and gas sector and a tribute to the extremely high-quality management team that we have assembled.
“As a Nigerian, and more particularly an indigene of the Niger Delta region, I understand well our responsibilities that come with stewardship of the asset, our engagement with communities and the strategic importance of the oil and gas sector in Nigeria. We see significant benefits from integrating our production, with our ability to power Nigeria, through Transcorp, and deliver value across the energy value chain.
“I would like to thank Shell, Total and ENI, for the professionalism of the process, the Federal Government of Nigeria, the Ministry of Petroleum Resources, and the NNPC for the confidence they have placed in us.”
Tony Elumelu is the Chairman of Heirs Holdings Limited, Transcorp and United Bank for Africa Plc.
Exporters Say CBN Pre-export Requirements is Frustrating Export of Goods
Exporters have said the recently introduced pre-export requirements by the Central Bank of Nigeria is creating unnecessary bottlenecks for exporters and the movement of goods out of the country.
Exporters, who spoke under the aegis of the Network of Practicing Non-oil Exporters of Nigeria (NPNEN), said the electronic Nigeria Export Proceed Form now required by financial institutions from exporters had come with so many challenges.
Ahmed Rabiu, the President, NPNEN, explained that the new policy had several requirements that often led to delays and loss of income on the part of exporters.
He said, “We acknowledge the CBN’s desire to ensure that all exports out of Nigeria are documented in order to ensure that the proceeds of such exports are repatriated.
“However, the reality on the field shows that the process is causing undue delays and consequently, encouraging corruption.”
According to them, in the new pre-export requirements, the Central Bank of Nigeria wants an export transaction to be initiated through eNXP processing on the trade monitoring system.
After which exporters are expected to have a pre-shipment inspection agent, the Nigeria Customs Service and other designated government agencies carry out their pre-export inspections.
The exporters said the pre-shipment inspection agent was expected to issue a clean Certificate of Inspection while Customs would issue the Single Good Declaration. All these they said takes time and delay goods from leaving the country on time.
Pointing to a recent report, they said about N868 billion worth of goods bound for export were stuck at the ports due to the new policy.
Speaking further Rabiu said, “For example, for the PIA to issue the CCI, the exporter is required to upload a certificate of origin as one of the supporting documents for the eNXP.
“The PIA is also required to upload the CCI to the TRMS(M) and until this is done, the Customs service will not issue the Single Good Declaration.”
He added, “After issuing the SGD, the customs is further required to upload it into the TRMS before the goods are allowed to be gated into the port and loaded on the vessel by the shipping line.”
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