Business

An American multinational consumer goods firm, Procter & Gamble, popularly known as P&G, has announced that it is winding down its on-ground presence in Nigeria.

The Chief Financial Officer, Andre Schulten, made this known during his presentation at the Morgan Stanley global consumer & retail conference in New York on Tuesday.

P&G is the manufacturer of common Nigerian household items such as Pampers, Always, Oral B, Ariel, Ambi-pur, SafeGuard, Olay and Gillette.

According to Schulten, P&G will transition into importing its products to Nigeria rather than producing them in the country, adding that it is a result of the country’s challenging business environment as well as the difficulty in creating US dollar value

“The other reality that arises in some of these markets is that it gets increasingly difficult to operate and create US dollar value.

“So when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment.

“So with that in mind, we are announcing a restructuring program with the intent to adjust the operating model and adjust the portfolio to ensure that we maintain the portfolio discipline that has brought us to this point.

“The restructuring program will largely focus on Nigeria and Argentina. We’ve announced that we will turn Nigeria into an import-only market, effectively dissolving our footprint on the ground in Nigeria and reverting to an import-only model,” he said.

Fidelity Bank Plc has become an official signatory of the UN Principles for Responsible Banking (PRB) – a single framework for a sustainable banking industry developed through a collaboration between banks worldwide and the United Nations Environment Programme Finance Initiative (UNEP FI).

The Principles are the leading framework for ensuring that banks’ strategy and practice align with the vision society has set out for its future in the UN Sustainable Development Goals and the Paris Climate Agreement. Banks who have signed the Principles commit to be ambitious in their sustainability strategies, working to mainstream and embed sustainability into the heart of their business, while allowing them to remain at the cutting-edge of sustainable finance.

Under the Principles, signatory banks identify and measure the environmental and social impact resulting from their business activities, set and implement targets where they have the most significant impact, and regularly report publicly on their progress. The Principles provide a framework for banks to systematically understand the risks and seize the opportunities arising from the transition to more sustainable economies.

“As long-time signatories to UNEPFI, signing onto the PRB is the next step to show our commitment to sustainability. Sustainability is central to our corporate strategy as a bank and joining the Principles further affirms our determination to increasing our positive impacts in all aspects of sustainability. The PRB aligns with our sustainability principles and the bank is delighted to join the global community of signatories championing sustainable development around the world”, commented Dr Nneka Onyeali-Ikpe,OON, Managing Director/Chief Executive Officer, Fidelity Bank Plc.

Signatories to the Principles take on a leadership role, demonstrating how banking products, services and relationships can support and accelerate the changes necessary to achieve shared prosperity for both current and future generations, building a positive future for both people and planet.

These banks also join the world’s largest global banking community focused on sustainable finance, sharing best-practice, and working together on practical guidance and pioneering tools of benefit to the entire industry.

This is a journey of unprecedented scale and scope at a time when such ambition is urgently needed to address the major planetary crises of climate change, nature loss, pollution and social issues.

Together, these collective efforts will ensure that profitability goes hand in hand with a sense of purpose.

Leading financial institution, Fidelity Bank Plc, has restated its determination to help businesses run profitably as it recently partnered with the Lagos Chamber of Commerce and Industry (LCCI) to host a conference to discuss solutions to challenges bedeviling the growth of businesses in the country.

Held at the LCCI office at Commerce House, Victoria Island, Lagos, the event featured a panel session comprising several top functionaries across the Nigerian economy.

Panelists at the session, which was themed “Powering Nigerian Businesses for Growth”, include: MD/CEO, KSBC Knowledge Resources Ltd, Mr. Chika Mbonu; CEO, Helf Africa, Mr. Yemi Osinubi, CFA; Principal, Sahel Capital, Ms. Tosin Ojo, CFA; Deputy National President of the Nigeria Cargo Airport Chapter of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Segun Musa; MD/CEO Zevis Pharmaceutical Ltd, Sir Elvis Emecheta; and MD, Super Audio Ind. Nigeria Limited, Mr. Keshab Vaswani.

Giving her keynote address at the event titled, “Promoting Trade and Industry in Nigeria: Government Initiatives and Opportunities for Business Growth”, the Honourable Minister of Industry, Trade, and Investment, Dr Doris Uzoka-Anite, who was represented by the Managing Director, Tafawa Balewa Square Managing Board, Mrs. Lucia Shittu, said:

“As a government, our responsibility is to provide the environment for ease of doing business that allows corporations to thrive similarly in other countries where they have representation. The Presidential Enabling Business Environment Council (PEBEC) was specifically constituted to achieve this with the primary objective of removing critical bottlenecks and bureaucratic constraints to doing business in Nigeria. As part of the ministry’s commitment to achieving this, our vision board is “Reposition Nigeria for business and investment, to attract FDIs by improving the ease of doing business” and I’m proud to announce that as of the last Ease of Doing Business report, one of the agencies supervised by my ministry – the Standards Organisation of Nigeria – is ranked as the most performant with a score of 98.09%. However, we still have a long way to go in strengthening weaker government institutions.

“Some of the upcoming initiatives from the Presidential Council on Industrial Revitalization, among other initiatives, include: upskilling, global-focused certification and licensing of artisans – with a view to export readiness and pipelining for both local businesses and cross-national corporations; creating a robust Agri-market system – one that ensures farmers get the most value for their hard work, provides farmers with more reliable access to credit through instruments like warehouse receipts, reduces the current multi-layered arbitrage system in the markets, introduces standards for warehousing, value addition and exports; standardising and promoting deeper technology and knowledge transfer across all our programmes including the free trade zones.”

Welcoming guests to the event, the MD/CEO, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe,OON, who was represented by the Divisional Head, Product Development, Fidelity Bank Plc and Chairman, Financial Services Group of the LCCI, Mr. Osita Ede, made a case for effective partnerships between the public and private sectors to drive economic growth.

In her words, “In the face of economic uncertainties, it is crucial that we embrace a mindset of resilience, adaptability, and collaboration. Together, we can identify opportunities that will not only sustain our businesses but also drive collective prosperity.

“Fidelity Bank is committed to being a catalyst for positive change, empowering businesses, and driving economic growth. We believe that by working together, in the face of the current economic realities, we can unlock the full potential of our nation’s businesses and create a future that is both sustainable and prosperous”.

Similarly, the President of the LCCI, Asiwaju (Dr) Michael Olawale-Cole championed the cause of business owners at the event, explaining that, “As business owners, we are faced with high operating costs and weak consumer demand due to high inflation and declining purchasing power. To explore growth opportunities, businesses must realise they have foreign exchange exposures and adopt hedging strategies to mitigate the impact of high inflation as well as leverage digital technologies to streamline operations, improve efficiency, reduce costs, and reach new customers.”

Advising the government, Olawale-Cole noted that with a huge debt profile, the government must seek alternative funding sources to improve the country’s infrastructure.

Minister of Innovation, Science and Technology, Uche Nnaji, has said Nigeria loses $10 billion yearly to imported certified welders engaged in various sectors of the economy.  

The minister disclosed this in Abuja, yesterday, at the signing of a Memorandum of Understanding for academic and industry collaborations between National Centre for Technology Management (NACETEM), the Federal University of Technology, Minna (FUTMINNA) and Neuro-Linguistic Programming Limited.  
    
Nnaji, who expressed sadness at the development, called on stakeholders to double efforts towards developing local content in the country and changing the trend.  
  
 He said the newly-commissioned Dangote Refinery employed about 11,000 welders, lamenting that none was Nigerian.  He said although Nigeria has over one million welders, none had international certification, which would enable them to work in the oil and gas sectors of the economy.  
   
“We are lacking in manpower. We are lacking in skillful artisans, not just digital people. Looking at the Dangote Refinery, it employed about 11,000 artisans, welders. But none of those welders came from Nigeria. They were all imported. A job as small as welding, of which we have over one million welders here, none of them has ISO certification. 
   
“And part of our move in this ministry is to partner with the Nigerian Welding Association and set up a hub in the six geopolitical zones, where we would train welders and give them ISO certification, so that they will have that permit to work both within and outside Nigeria. And if we have enough welders in this country, there will be no need to start importing welders. 

   
“And what Nigeria is losing in not doing that is over $10 billion every year, because a welder is paid about $150 a day. The same way, if you look at the AKK pipeline that is going on now, most of them came from Pakistan, India, China, not one from Nigeria,” he said.  
   
On his part, Director General of NACETEM, Olusola Odusanya, said the academic programme will help develop technological skills that would earn candidates international recognition. 
   
Also, the Vice Chancellor, FUT Minna, Faruk Kuta, expressed delight at the development, adding that the university is glad to partner with the agency to train middle and high level manpower in the sector.

President Bola Tinubu has approved the sale of more oil and gas fields abandoned by the international oil companies, IOCs.

The President has given the greenlight for conduct of fresh marginal field bid for the gas fields which have been lying fallow for over a decade.

This was disclosed by the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, during a facility tour of Waltersmith Petroman Oil Limited’s modular refinery in Ibigwe, Ohaji-Egbema Local Government Area of Imo State, on Wednesday.

The minister said the bid exercise would commence “soon.”

The new bid round is coming barely three years after about 57 marginal oilfields were put up for sale in 2020 and the process effectively concluded last year, amid many of the awardees still struggling to move to site for development of their assets due largely to funding and regulatory challenges.

The minister, in a statement issued yesterday, by the Nigerian Content Development and Monitoring Board (NCDMB), disclosed that he had obtained presidential approval to conduct a fresh round of bidding, which would take place soon.

He promised that, “marginal fields would (henceforth) be prioritised in terms of their location to those who have modular refineries, so that they will be able to produce.”

The marginal field exercise is exclusively reserved for Nigerian companies as the federal government through the policy offers opportunity to local firms to participate more actively in the country’s oil and gas exploration and production space.

According to the Minister, “The quickest way to fix our energy challenge in the country should be through modular refineries, while we await the total rehabilitation of the big refineries.”

THE United Bank for Africa, UBA, Plc has taken over the assets of Stallion Nigeria Limited and its subsidiaries in Lagos, Port Harcourt and Kano, following an order of a Federal High Court in Lagos, in an alleged N156,026,032,804.84 debt suit.

 The bank’s receiver manager, Romeo Michael and court bailiffs protected by the police on Friday, in the three cities, executed the interim orders made by Justice Akintayo Aluko on October 20, 2023.

 The judge made the order after hearing Temilolu Adamolekun, who appeared with Mohammed Usman, move the motion ex-parte as counsel for the plaintiff/applicants, supported by an affidavit in support deposed to by Mr. Anthony Chilaka, in the suit.

In granting UBA’s prayers, Justice Aluko also restrained the defendants, their directors, shareholders, employees, officers, and agents, from interfering with or frustrating the receiver/manager from exercising all the powers vested in him or performing his duties as receiver of the mortgaged properties.

 The order will last pending the hearing and determination of the motion on notice, which the court adjourned till November 20, to hear.

The affected assets include mortgaged property known as “all that piece or parcel of land together with any building thereon” at Plot 371, Trans Amadi Industrial Layout, Port Harcourt, Rivers State.

 ”Plot 353, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, Plot 370, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, KM17, Lagos Badagry Expressway, Lagos State and No. 54, Challawa Industrial Estate, Kano State, Nigeria.”

Leading Reporters learnt that subscribers who had taken airtime or data loans from MTN may have to back the debt on their accounts as the initial debt cancellation was due to an error in MTN system.

This is even as subscribers, who believed the telecom operator deliberately cancelled their debts, have gone to social media to jubilate and appreciate the telecom company.

For instance, a subscriber named Ada, wrote on her WhatsApp status, saying, “Debt has been paid. MTN debtors Check your account, MTN don clear una gbese.”

Meanwhile, a response from,an official of MTN, revealed that subscribers will still have to pay for their debts, adding that, “Users would still be responsible for paying the ostensibly cleared bills even after MTN fixes the problem that caused the debts to vanish from their accounts.”

He explained that the disappearance of debts in the subscribers’ accounts was a glitch, meaning that the subscribers will still have to pay the supposed cleared debts once MTN rectifies the error.

Against the backdrop of sustained rumors about the introduction of the Naira re-denomination by the current government, economy analysts and corporate chieftains have painted a discomforting picture of what the policy may entrench on the economy if carried out.

In the past month, there have been many insinuations from several quarters that the Central Bank of Nigeria, CBN, is planning to onboard the measure as part of its overall monetary policy package from the new team at the apex bank.

Re-denomination is often used to describe a process in which a country adjusts its currency by changing the nominal value which changes the actual purchasing power of the currency.

Though the CBN had denied the rumor many sources hinted that the apex bank has already consulted officially for the policy roll out and may have slated January next year for commencement.

Some experts who spoke to Saturday Vanguard also believe that it is either the apex bank is flying a kite to sample public opinion or they are actually about to announce the policy because ‘‘there is not smoke without fire’’.

Giving insight into the policy measure some of them, however, told Vanguard that it can improve price stability by making transactions more manageable and reducing the likelihood of hyperinflation.

But they also said it’s essential to caution that Naira re-denomination alone won’t directly impact inflation rates positively.

Some also noted that the talks about redenomination may be part of the struggle by the current administration to gain the acceptance of the people, but also explained that the success or otherwise of re-denomination as an economy booster depends on its implementation and the complementary measures taken to address underlying economic issues, particularly in the areas of price stability, foreign investment, and engagement with key stakeholders.

There could be elements of truth with persistence of the rumor – Adonri

In his own comments, David Adonri, Financial Analyst and Executive Vice Chairman, at Highcap Securities Limited, said: “The re-denomination of the Naira was first muted by Charles Soludo’s Central Bank of Nigeria, CBN, leadership but CBN did not implement the plan. It has resurfaced again after Godwin Emefiele shelved it. When rumours persist for long, there could be elements of truth in them.

“However, since CBN has dispelled the rumor, we shall take their word for it but remain alert.

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“On the surface, such a policy will match the foreign exchange rate with new value of the re-denominated Naira.

“However, the reality may not be the case. It is not likely to enhance price stability because Nigeria’s inflation is scarcity derived amidst severe shortage of hard currencies. The huge supply gap will make the program unsustainable.

“Under present economic conditions, re-denomination will be an exercise in futility. It could further weaken the Naira and reduce the purchasing power of consumers as producers will lash on the opportunity to increase prices.”

It would amount to further macroeconomic instability — Olayinka

Reacting to the alleged plan by the CBN to redenominate the Naira, Tajudeen Olayinka, CEO, Wyoming Capital and Partners said: “Since CBN has continually denied the plan to embark on such a program, I also don’t find the rumor credible.

“However, should they eventually decide to embark on that journey now, I will advise they delay such a decision till a more auspicious time.

“And the reasons are simple: You cannot embark on currency redenomination when you are still grappling with the difficulty of stabilizing the macroeconomic environment. Doing so means that you will have to repeat the program multiple times in a short period, as the effort would amount to further macroeconomic instability in the short term.

“The essence of currency redenomination is to strengthen the new lower denominations as the medium of exchange, store of value and unit of account, by improving on pricing mechanism in the economy, where rounding up of asset prices could be possibly avoided to stabilize the general price level.

“Doing it at the wrong time, when the economy is in a prolonged state of disequilibrium could be counter-productive, as instability may soon return.

“With the current poor state of Nigeria’s foreign reserves and multiple emergency foreign borrowings coming up to create dollar liquidity, it could send a wrong signal to foreign investors that Nigeria is in an emergency situation, and that proper forecast of future exchange rate might be difficult.
“As mentioned earlier, currency redenomination is good for an economy that is currently enjoying a semblance of macroeconomic stability, so that its timely adoption could promote further stability. Doing it at a wrong time will not be helpful to effective exchange rate post-redenomination.

“The government should continue to run its ongoing adjustment program, with the appropriate policy framework, to a point of restoring external equilibrium, before embarking on currency redenomination, in order to have a stable effective exchange rate, post-redenomination.

“Good and careful planning of currency redenomination program, with timely implementation, could herald a new beginning for macroeconomic stability, especially, a new era of a very low or near absence of inflation, due to improved pricing mechanism in the economy.”

Re-denomination can aid price stability, but … — Adebija

For Gbenga Adebija, Chief Executive Officer, Business in Nigeria/ Former Director-General of the Nigeria-German Chamber of Commerce, the talks about redenomination may be part of the struggle by the current administration to gain the acceptance of the people.

He also explained that the success or otherwise of re-denomination as an economy booster depends on its implementation and the complementary measures taken to address underlying economic issues, particularly in the areas of price stability, foreign investment, and engagement with key stakeholders.

He stated: “The Tinubu administration is evidently working to establish trust and credibility with the public. Therefore, it is crucial to grant them the benefit of the doubt on this matter until proven otherwise’’.

However, he gave further insight on what should happen in the event of embarking on such policy.

He stated: “Re-denomination, in isolation, does not impact the exchange rate because it doesn’t alter the actual value of the currency relative to other currencies.

“Consequently, the exchange rate of the (Naira) re-denominated currency with others should remain relatively stable.

‘‘Re-denomination can, however, contribute to price stability by simplifying price calculations and accounting which are usually impacted by high inflation rates.

“Re-denomination, by itself, does not influence the true value of the currency or the economic fundamentals of the country. It primarily alters the way prices are expressed and how people interact with the currency.

“Often, it serves as a prelude to broader economic and monetary reforms, such as addressing inflation or introducing a new, more stable currency.

‘‘Therefore, the success of Naira re-denomination as an economy booster depends on its implementation and the complementary measures taken by the Government and Central Bank to address underlying economic issues, particularly in the areas of price stability, foreign investment, and engagement with key stakeholders.”

Enabling environment should come before re-denomination — Azeez

Also speaking to Saturday Vanguard on the Naira re-denomination kite, Olowu Babs Azeez, National Treasurer of the Association of Mobile Money and Banks Agents of Nigeria (AMMBAN), noted that since CBN has not said it would embark on the policy it is not necessary to appraise the policy.

However, Azeez who is also the Chief Executive Officer of Obat Global Investment Limited, stated: “If such should happen, the government should first do the needful by providing enabling environment for business to thrive which would encourage foreign investors, promote small scale businesses and sizeable numbers of entrepreneur.

“This has to do with good roads, adequate electricity supply, business-friendly government policy, tax reduction, avoid unnecessary levels on business establishment, reduce export duty and import duty on raw materials but increase import duty on products that can be manufactured or produced in Nigeria in other to promote local production.

“I believe with this, the economy has lot to benefit and it will strengthen our currency.”

Focus should be on comprehensive economic reforms – Oyelaja

Abiodun Oyelaja, Chief Executive Officer Motion Yield Nigeria Ltd, said Naira re-denomination does not affect the exchange rate.
He explained thus, “The term “redenomination” is often used to describe a process in which a country adjusts its currency by changing the nominal value of its currency without changing its real value or the actual purchasing power of the currency.

“This is different from devaluation or revaluation, which involves changing the real exchange rate of a currency.

“Redenomination alone doesn’t directly affect the exchange rate. It’s mostly a psychological change, as the real value of the currency remains the same.

“Exchange rates are determined by various economic factors, including supply and demand, interest rates, and the overall health of the economy. It can however improve price stability by making transactions more manageable and reducing the likelihood of hyperinflation.

“However, it’s essential to caution that redenomination

The 36 states and the Federal Capital Territory generated N1.925 trillion as Internally Generated Revenue in 2022.

The National Bureau of Statistics disclosed this in its Internally Generated Revenue State Level report on Monday.

The states generated the revenue from Pay As You Earn tax, PAYE, Direct Assessment, Road Taxes, Stamp duties, Capital gain tax, Withholding taxes, other taxes and Local Government Areas revenue.

The figure represented 1.57 per cent higher than the N1.895 trillion recorded in 2021.

The leading states in total IGR during the year were Lagos, Rivers, and the FCT, with N651 billion, N172 billion, and N124 billion, respectively.

Conversely, the lowest three performing states during the year were Kebbi, Taraba and Yobe, with N9,146 billion, N10,238 billion and N10,456 billion, respectively.