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Foreign Investors Interested in Nigeria’s Retail Market

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  • Foreign Investors Interested in Nigeria’s Retail Market

Broll Nigeria, a real estate services firm, has published a report which indicates the interest of foreign investors in Nigeria’s retail market remains strong despite the uncertainties that wane investors confidence in the market.

The firm, in a report analyzing the retail sub-sector in the fourth quarter of 2018, said international brands’ interest in the country has not decreased even with the low purchasing power of consumers.

The report stated that 2018, relatively low to 2017 and 2016 in terms of sales, was a challenging year for the retail market, adding that many Landlords in the market had been increasingly open to tenant-friendly leasing options in an attempt to drive occupancy levels, while tenants have had to re-strategize their businesses to stay afloat and continue operating within malls.

“These brands were mostly interested in franchise agreements with experienced local operators,” the report stated.

According to the report, as the year progressed, the frequency of enquiries for formal retail space increased, notably in the fashion and accessories, as well as food and beverages, with enquiries hovering around 30 to 60 square metres from both local and international retailers. Food and beverage record the highest level of concluded transactions in 2018.

The report said, “2018 saw the introduction of a number of international brands such as Pinkberry, Krispy Kreme and Pizza Hut. Outside of food and beverage, in other segments such as beauty, fashion and accessories, very few international brands entered the market.

“Leisure retail gained significant traction in 2018 with the consolidation and relative success of brands such as Rufus and Bee, Upbeat and the various Filmhouse cinema additions in the market. Landlords have become more sensitive to the fact that food and beverage offerings are not a strong enough influence to increase footfall and dwell time at malls thus a more diverse tenant mix with child-friendly offerings for example have been perused.”

Also, Broll Nigeria report noted that in 2018, retailers implemented creative means of running their businesses within other outlets and not just in malls; “This ranged from aggressive marketing to consolidate brand loyalty as well as exploring cost effective means of operations, for example locally-sourced goods as opposed to 100 per cent importation of goods. Tenants that were successful in adopting cost effective strategies as well as brand distinction in the market were able to retain occupancy within malls and expand their footprint despite stagnant purchasing power and crawling consumer confidence.”

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

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Shut Down Depots Selling Petrol Above Approved Price – Marketers

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Shut Down Depots Selling Petrol Above Approved Price – Marketers

The Federal Government should close down depots that are selling petrol above the approved price, oil marketers said on Thursday.

National President, Independent Petroleum Marketers Association of Nigeria, Sanusi Fari, said the sale of petrol above government approved price by depot owners would soon lead to a hike in the commodity’s pump price.

Fari told journalists in Abuja that the government through its agencies such as the Department of State Services and the Department of Petroleum Resources should curb the development to avoid crisis in the downstream oil sector.

He said some private depot owners were selling at N165 per litre to independent marketers, way above the government stipulated price of N148 per litre.

Fari said, “Our challenge is the inconsistency in the pricing of petrol. Up till a week ago, government was still insisting that the February price for petrol remained unchanged.

“And most of the private depot owners are selling above the government stipulated price. As at today ( February 25, 2021) private depot owners are selling at N165 per litre to independent marketers.”

He added, “In the last six years, only NNPC imports refined products into this country and these tank farms buy their products from NNPC under a controlled price.

“This has affected our businesses seriously because government is insisting that we sell at the rate of N165, which is not going to work.”

The IPMAN president said filling station owners buy the product at N165 per litre from the private depots and incur other expenses such as transportation, rent, etc.

“So government cannot expect us to sell less than what we buy,” he said.

Fari added, “This is why we are calling on government and agencies that are saddled with the responsibility to control petrol pricing to urgently clamp down on depots that are selling above the stipulated price.”

The Nigerian National Petroleum Corporation, the country’s sole importer of patrol, recently stated that it never hiked the cost of petrol to depots.

It also enjoined the depot owners to sell the product at the approved rate and called on the DPR to enforce the stipulated price across the depots.

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