Connect with us

Business

Insecurity Threatens Lagos’ Tech Growth, $136bn GDP

Published

on

lagos
  • Insecurity Threatens Lagos’ Tech Growth, $136bn GDP

Experts have said that the growth of the Information and Communications Technology in Lagos State is being threatened by the rise in insecurity in the state.

They said on Friday that the insecurity challenges, such as the Ikorodu killings and kidnapping, were also a threat to its Gross Domestic Product of $136bn.

In April 2017, Governor Akinwumi Ambode of Lagos State had described the country’s commercial nerve as the world’s fastest growing mega city, “with a GDP of $136bn.”

Ambode said that the GDP could improve if the state government invested in the ICT, saying, “That is why we are connecting major parks in the state to the Wi-Fi.”

However, a major shareholder in one of the four main telecommunications companies in the country said that the GDP could take a slide downwards if the government failed to improve on security.

“Should vandals continue to destroy our equipment and terrorise Yaba and environs where tech hubs are located, then there is no doubt that this will threaten the growth of Lagos’ GDP of $136bn,” the source said on the condition of anonymity.

While pleading with the state governor to intervene urgently, a technology expert, Akintunde Akinleye, said, “It has been more than 40 days since some six pupils were kidnapped at a school in Epe, on the North side of the Lekki lagoon in Lagos, raising questions about the ability of the state government to address the insecurity challenges.”

He said, “The parents of the abducted pupils have reportedly paid N10m ransom to the kidnappers but they have yet to get their children back.

“Security operatives in Lagos seem to be clueless about the whereabouts of the abducted pupils.

“Insecurity is increasing in Lagos at a worrying rate; apart from kidnapping, which is becoming frequent, cult killing is also becoming rampant in some parts of the state.

“While peace does not necessarily drive growth and development, insecurity disrupts it. The Lagos State Governor, Akinwunmi Ambode’s goal of making Lagos Africa’s third largest economy is under threat.”

According to him, Lagos has been able to diversify its economy and largely reduce its dependence on oil allocations from the Federal Government.

“The state generates revenue from a variety of sources, including transport, manufacturing, construction and wholesale and retail. To continue growing its economy, Lagos faces challenges such as rapid population growth, urbanisation, as well increasing demands for infrastructure,” Akinleye said.

He also said that the challenges could not be addressed only by widening the tax net, but also by making the state a perfect investment destination.

“Although Lagos has huge potential, much will not be achieved if the current security challenges are allowed to fester further.

“Insecurity makes investors nervous. Therefore, a safer Lagos with its numerous potential will remain an investment destination that can achieve the governor’s dream of a top three African economy by 2020,” he said.

He said, “At this level, Lagos sits comfortably as one of the top ten economies in Africa by GDP. Should Nigerian states start fending for themselves, only Lagos and a few others would be able to survive.

“Lagos generated more than $940m internally in 2016, exceeding the combined Internal Generated Revenue of 30 states in Nigeria.”

He added, “The city-state remains a major economic focal point in Nigeria, generating around 10 per cent of the country’s GDP.

“It continues to grow its revenue as investment flows rise with expanding opportunities in several sectors. Economic growth in the Nigerian port city seems to be boundless but whatever brightness the future holds can only illuminate as far as the dark forces of insecurity recently rampaging Lagos would allow.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Company News

Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

Published

on

Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

Continue Reading

Business

Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

Published

on

Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

Continue Reading

Business

Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

Published

on

Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending