- Directors Call for Inclusive ERGP Implementation
The Statistician-General of the Federation and Chief Executive, National Bureau of Statistics, Yemi Kale, and his counterparts in the Institute of Directors, Nigeria, have urged Nigerians to be optimistic in the Federal Government’s Economic Recovery and Growth Plan, saying that the economy has begun to show signs of recovery.
Speaking at a forum of IoD members in Lagos, they, however, said that the implementation of the ERGP should be engaging and involve investors from the private sector.
According to them, more efforts are required to diversify the economy in line with the ERGP 2017 – 2020.
Kale stated that the immediate cause of Nigeria’s recession was traceable to the fall in oil price in mid-2014 and the low fiscal buffers that forced a depletion of the foreign reserves.
“Year-to-date, the Nigerian economy is still growing at a negative rate of -0.18 per cent despite being out of recession; this is due to the dysfunctional economic structure of the country,” he said.
The NBS boss explained that the economy witnessed strong growth in gross fixed capital formation component at 7.64 per cent in the third quarter year-on-year, “thereby sustaining the trend since Q4 2015, while investment share of the Gross Domestic Product stood at 14.09 per cent in Q3 2016.”
“However, the share of investment to GDP, year-to-date of 15.8 per cent, has also been higher than Q1-Q3 2015 put at 15.1 per cent,” he added.
Kale said that though the country was technically out of recession, Nigeria was not yet on the path of economic recovery.
“Therefore, the oil sector and its dysfunctional impact on the economy is a reoccurring decimal in the Nigerian recession trajectory,” he added.
He said that the economy was hinged on three pillars, with the oil sector contributing eight per cent.
Kale added, “The second is the import/consumption driven non-oil sector contributing 52 per cent; while the third pillar, the investment-driven non-oil sector contributes 40 per cent to the GDP.
“However, the hugely consumption nature of the economy makes it extremely vulnerable, based on its exposure to external factors beyond the control of those who manage the economy.”
The President and Chairman of COuncil, IoD, Ahmed Mohammed, said the forum was to enable directors share experiences, brainstorm on the economic challenges, and come up with recommendations for inclusive economic growth plan for the nation.
“We are also constantly in search of knowledge to grow the economy and build capacity of its members,” he added.
At the 2017 Fellows’ evening and investiture of the IoD, Mohammed said that the country recognised that growth in emerging economies of Africa, Nigeria inclusive, was being hampered by poor infrastructure, such as erratic power supply, inadequate and poor state of transport networks, telecommunication deficits, inadequate water supply and waste disposal problems, as well as shortfalls in health and education facilities, among others.
He stated, “Infrastructural development of any country is critical to the economic and social advancement of that country. And it has long become common knowledge globally that governments alone cannot bear the financial burden of providing adequate infrastructure considering the huge capital requirements and the competing demand of this inadequate capital.
“Consequently, integration of private sector investors into the conception, planning, implementation and maintenance of infrastructure has become imperative in Nigeria as it is elsewhere.
“It is against this background that the Federal Government of Nigeria and other state governments have introduced the concepts of PPP in capital development.”
Lafarge Africa Board Proposes N30.60bn Dividend, Lower Than Previous Year
Lafarge Africa’s Board of Directors has recommended a dividend payout of N30.60 billion for the year ended December 2023, a reduction from the previous year’s dividend.
The proposed dividend translates to N1.90 per unit of shares and awaits approval from shareholders at the upcoming Annual General Meeting (AGM) of the company.
In a corporate announcement filed with the Nigerian Exchange Limited, Lafarge Africa disclosed that the proposed dividend is payable from the Pioneer Reserve to shareholders registered as of March 28, 2024.
Despite the lower dividend proposal, Lafarge Africa recorded an increase in revenue to N405 billion, marking an 8.6% rise from the previous year’s N373 billion.
However, the company’s post-tax profit experienced a 4.7% decline, amounting to N51.14 billion, attributed mainly to the devaluation of the naira.
Lolu Alade-Akinyemi, the Chief Executive Officer of Lafarge Africa, expressed confidence in the company’s performance despite economic challenges.
He highlighted the growth in revenue and an improved operating margin, despite pressures from inflation and currency devaluation.
Looking forward, Lafarge Africa remains optimistic about the construction sector’s growth in Nigeria, despite prevailing economic challenges.
The company aims to leverage its market opportunities while maintaining a focus on sustainability and stakeholder value.
South African Billionaire Christo Wiese Predicts Return of Major Players to Nigeria Despite Recent Exodus
South African billionaire Christo Wiese remains optimistic about Nigeria’s economic prospects, predicting the eventual return of major players despite a recent exodus from the West African nation.
In an interview with Bloomberg TV, Wiese explained that it is impossible to ignore Nigeria’s large and growing population, “how do you ignore an economy like this?”
Wiese, the former chairman of Shoprite Holdings Ltd., acknowledges the challenges faced by businesses in Nigeria, where recent currency woes and policy missteps have contributed to an exodus of international companies.
Procter & Gamble Co. and Shoprite are among the global conglomerates that have announced their departure from Africa’s most populous nation.
However, Wiese sees the recent exits as temporary setbacks rather than a long-term trend. He believes that the allure of Nigeria’s vast consumer market and its economic potential will eventually draw major players back.
Despite the current uncertainty, Wiese remains confident in Nigeria’s future, emphasizing the need for governments to adopt correct policies and for investors to exercise patience.
While acknowledging Nigeria’s single-commodity economy vulnerabilities, Wiese highlights the resilience of the nation’s economy and its potential for growth and development.
He suggests that foreign investors, including South African ones, are adopting a wait-and-see approach, anticipating a time when the economy stabilizes and favorable policies are in place.
Seplat Energy Names Udoma Udo Udoma as Independent Non-Executive Chairman, Bello Rabiu as Senior Independent Non-Executive Director
Seplat Energy, a prominent Nigerian energy company listed on the Nigerian Exchange Limited and the London Stock Exchange, has made significant changes to its board leadership.
In a recent announcement, the company revealed that Udoma Udo Udoma has been appointed as the new Independent Non-Executive Chairman, succeeding Basil Omiyi, who is set to retire on March 31, 2024.
Udoma Udo Udoma, a distinguished lawyer and seasoned board administrator, brings a wealth of experience to Seplat Energy.
He holds degrees from St. Catherine’s College, Oxford, and has had a remarkable career spanning various sectors, including petroleum, energy, and natural resources.
Udoma has served on numerous large-sized company boards, including UAC Nigeria Plc and Union Bank Plc, and held key public sector appointments, such as Chairman of the Corporate Affairs Commission and Minister of Budget & National Planning.
In addition to Udoma’s appointment, Seplat Energy announced the selection of Bello Rabiu as the new Senior Independent Non-Executive Director, effective April 1, 2024.
Rabiu, a seasoned professional with extensive experience in the petroleum industry, holds multiple degrees and has served in various capacities at the Nigerian National Petroleum Corporation (NNPC).
The appointments come as part of Seplat Energy’s commitment to upholding strong corporate governance practices and ensuring a smooth transition of leadership.
Both Udoma Udo Udoma and Bello Rabiu are expected to play pivotal roles in guiding Seplat Energy as it continues to expand its operations and consolidate its position as a leading energy company in Nigeria and beyond.
In a statement, Basil Omiyi, the outgoing Chairman of Seplat Energy, expressed confidence in the newly appointed leaders, emphasizing their capabilities to steer the company towards further growth and success.
The appointments underscore Seplat Energy’s dedication to fostering excellence and innovation in the energy sector while meeting the evolving needs of its stakeholders and contributing to Nigeria’s energy transition efforts.
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