Shoprite Planned Exit Triggers Experts Reaction
Experts have expressed their concerns over the decision of Shoprite Holding Limited to exit the Nigerian Market, Africa’s largest economy, at a period that unemployment is projected to hit 39.4 million.
On Monday, Africa’s largest retail company, Shoprite, announced it would commence a former process of exiting the Nigerian market or sell a major stake to willing investors that it claimed have started approaching its organisation for a possible partnership.
Experts, who spoke with our correspondents, said the decision would worsen Nigeria’s present economic position, especially with Osinbajo-led committee predicting that unemployment could hit 39.4 million in 2020.
Dr. Musa Yusuf, the Director-General, Lagos Chamber of Commerce and Industry, said the Shoprite move would impact investors’ interest in Nigeria. Yusuf is likely making reference to a series of other factors hurting Nigeria’s economic outlook in recent months.
Barely a month ago, OPay, one of Nigeria’s promising startups started by a Chinese company, announced it will be shutting down some of its business units in Nigeria due to harsh business environment and other COVID-19 related issues. That was a company that raised about $270 million about a year ago.
The series of uncertainties hurting businesses amid unclear economic path have left many investors and businesses seeking exit plan. Even at that, several of the foreign-owned businesses and investments are stuck in the country with their owners unable to access foreign exchange to repatriate their funds.
A recent report showed the Central Bank of Nigeria has over $5 billion forex backlog, yet the nation’s external reserves is hovering around $36 billion since plunging from $45 billion in June 2019.
Prof. Uche Uwalaka, a professor of Capital Market at Nasarawa State University in Keffi, said, “The exit of Shoprite, or any other foreign business for that matter, ordinarily should be a cause for concern especially for a country like Nigeria that is in dire need of foreign direct investment.”
“The importance of Foreign Direct investment, especially in the area of job creation cannot be overemphasised.”
Speaking on the matter, Samed Olukoya, CEO/Founder Investors King Ltd, explained that “Shoprite just upped Nigeria’s economic uncertainties barely a month after OPay and other foreign-owned companies commenced their process of shutting down or have already shut down part or most of their operations in Nigeria.
He added that “at this rate, it would be hard to increase capital importation or boost the nation’s Foreign Direct Investment with negative economic outlook and weak investment sentiment.”
Ndubuisi Ekekwe Moves to Deepen Capabilities Through Free Weekly Business Lessons
In a bid to deepen business and individual capabilities across the African continent, Prof. Ndubuisi Ekekwe, Founder of Fasmicro and the Lead faculty, Tekedia Institute, on Sunday said he will commence free business lessons to enhance accumulation of capabilities.
In a message forwarded to all members of the platform, Tekedia.com, Prof. Ekekwe, explained that when businesses accumulate capabilities, they move upstream and create new competitive tentacles which eventually form the foundation of their growth.
“More so, because of the capabilities, they protect their market shares through strategic moats against competitors and new entrants,” he stated.
Prof. Ekekwe plans to send out two business lessons per week to engage Tekedia’s growing community on the mechanics of business systems. “Each piece would be prepared to pass across a business lesson.”
Prof. Ndubuisi Ekekwe writes regularly in the Harvard Business Review and has spoken at global events — explaining and teaching the mechanics of business systems and nation-building.
To start receiving his free business lessons sign up here.
FG Introduces NEXIT Portal for Npower Batch A and B Beneficiaries
The Federal Government has introduced a new online portal for exited Npower beneficiaries of batch A and B.
According to the Minister for Humanitarian Affairs, Sadiya Farouq, the portal was launched in collaboration with the Central Bank of Nigeria (CBN) to enable exited Npower beneficiaries apply for available federal government empowerment options.
This was disclosed in a statement issued by Nneka Anibeze, the media aide to the minister, on Friday.
The ministry said the NEXIT portal will be used to determine the suitability of exited beneficiaries for various CBN-affiliated programmes.
She explained that selection will be based on the conditions and criteria set by the apex bank.
Ms Farouq, therefore, urged interested exited Npower beneficiaries to log on to the NEXIT portal and provide the required additional information for possible placements into central bank’s intervention options.
“The Minister expressed her deep appreciation to the CBN Governor Mr Godwin Emefiele CON for his support adding that the Ministry of Humanitarian Affairs remained committed to the vision of Mr President to lift 100 million Nigerians out of poverty in the next 10 years.
“Minister Umar Farouq pledged the Ministry’s willingness to collaborate with relevant agencies of government and other stakeholders towards the realization of that vision and congratulated the exited beneficiaries while wishing them well in their future endeavours.
“The Federal Government of Nigeria is very proud of the milestones you have achieved during your period of service to the nation. As we prepare to exit into prospective endeavours.”
Ellah Lakes Partner Ondo State Government to Develop Oil Palm, Cassava in the State
The management of Ellah Lakes Plc said it has partnered with Ondo State Government to develop and manage 5000 hectares of land for the purpose of cultivating oil palm and cassava in Ondo State, Nigeria.
The company stated in a statement signed by Kenechi Ezezika, Company Secretary, Ellah Lakes Plc.
Speaking on the development, the Chief Executive Officer, Chuka Mordi said: “This is a significant landmark for the Company in the development of our landbank, & we are very excited to be working with ODSG.
“I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank & diversifying our portfolio and production base. I am also glad to say that the intercropping programme in Edo State is progressing steadily & we have achieved our first milestone of 100Hectares of Cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State”.
The Special Adviser on Development & Investment to the Ondo State Governor/ Chief Executive Officer of Ondo State Development and Investment Promotion Agency (ONDIPA), Mr. Akinboye Oyewumi, who also spoke on the development said: “We are pleased with this collaboration with Ellah Lakes Plc., and we look forward to a mutually beneficial, valuable and fruitful venture.”
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