Business
NIPC Strategises To Boost Investment, Economy
The Nigerian Investment
Promotion Commission (NIPC) says it will deepen the existing investment and inject fresh capital into the economy through its newly inaugurated committees.
The commission’s Executive Secretary, Mrs Uju Baba, disclosed this in Abuja at the inauguration of the technical committees on Doing Business and Competitiveness and Investors After-Care.
Baba, represented by Mr James Ebuatse, Director, Department of National Competitiveness and Policy Advocacy, said the committees would come up with strategies to ensure that recommendations advanced were adopted by government.
She said the committees were composed of heads of Ministries, Departments and Agencies (MDAs) of the Federal Government whose mandates were directly related to regulating the act of doing business in the country.
Baba said the objectives of the committees on Doing Business and Competitiveness were to review the causes for unimpressive ratings of the economy by various global rating agencies which had affected investors’ confidence.
“Others are to take an in-depth review of global reports in the context of the mandate of your various MDAs coupled with the comments from investors and organised private sector.
“Then, recommend improvement on existing policies and legislation that govern the act of doing business in Nigeria,’’ Baba said.
According to her, the committee on investors care is a problem solving organ constituted to appraise complaints from investors operating in the country.
The executive secretary added that it would also proffer interventions by government for the purpose of ameliorating the day to day challenges faced by investors.
Baba lamented that with the abundance of potential possessed by the country, it should attract more fresh capital than it currently did.
“According to the United Nations Conference on Trade and Development (UNCTAD), the economy attracts an annual average of six billion dollars foreign direct investment.
“Whereas the economy agenda demands an annual minimum private capital inflow of about 13 billion dollars,’’ she stressed.
The Chairman of the Committee on Investors After-care, Mr Amos Sekaba, said it would ensure that the six billion dollars foreign direct investment would be doubled.
Sekaba said existing investors would be supported to encourage new investors in the country.
“We will ensure that challenges faced by investors are properly addressed because our economic development plan is hinged on private sector development,’’ he said.
Also, Mr Craig Giesze, Senior Operations Officer, Trade and Competitiveness Global Practice, said countries that had improved significantly in their investment climate had committees such as the ones inaugurated by the NIPC.
Giesze said inauguration of the committees was the right step, adding that it was a process, and changes would not happen overnight.
He lauded the country for its regulation which ensured that a company could be established within 24 hours.
“Right now in Nigeria, a company can be established within 24 hours, which is progress,’’ Giesze said.
Business
E-Commerce Platform Revolutionises Online Businesses, Empowers SMEs
A revolutionary online marketplace launched in December 2023, Naijamart.com, is shaking up the landscape for Nigerian businesses.
The multi-platform ecosystem is designed to empower businesses of all sizes and connect them with a wider audience at zero cost.
It offers diverse range of platforms on catering to specific business needs, and its product platform allows the buying and selling of a vast array of products, from electronics and fashion to home ware and groceries.
Naijamart Motors provides a dedicated space for seamless transactions, including buying, selling, or leasing a car, motorcycle, or any other vehicle, and also provides a dedicated space for seamless transactions.
According to the facilitators, Mr. Olalekan Emmanuel Odusanya and Mr. Moses Omhekono Owolabi, the platform was created to fill a significant void in the e-commerce industry, bridging the gap between vendors and buyers while providing enhanced security.
“Our vision is to create a platform where everyone benefits. We have meticulously designed the platform with an array of innovative tools and features to ensure that every user, regardless of their role, enjoys a seamless and rewarding experience.
“The platform is user-friendly, ensuring that even those with minimal technical skills can easily create and manage their online storefronts, and guarantees triple sales through its comprehensive support system and innovative features designed to maximise visibility and customer engagement.
“This multifaceted platform has also been the bedrock and backbone for many SMEs, providing support to the underserved and less privileged and grants to businesses”, Odusanya said.
Business
Analysts Fear Bank Recapitalisation May Worsen SMEs’ Funding
Analysts have said that the ongoing recapitalisation in the banking sector was pushing the industry towards greater consolidation, with significant implications for lending practices, especially for small and medium enterprises (SMEs).
They also noted that the Central Bank of Nigeria’s directive for banks to increase their capital base was not only reshaping the landscape by encouraging mergers among smaller banks, but also raising concerns about restricted access to credit.
According to the Head of Research at a financial market infrastructure group warehousing, FMDQ, Vincent Nwani, the recapitalisation was likely to lead to a wave of mergers and acquisitions, as smaller banks may find it difficult to meet the stringent capital requirements on their own.
“The recapitalisation will undoubtedly lead to further consolidation in the banking sector.
Smaller banks may struggle to meet the new requirements independently, prompting more mergers and acquisitions. This consolidation is likely to create a more competitive environment but may limit credit access for smaller enterprises,” Nwani explained.
Meanwhile, a Professor of Economics at Babcock University, Olusegun Ajibola, warned that while the recapitalisation might strengthen the overall banking sector, it could also result in tighter lending conditions, particularly for SMEs.
He noted that banks, in their effort to meet the new capital requirements, might prioritise capital accumulation over lending, which could temporarily reduce the availability of credit for SMEs.
“While the recapitalisation will strengthen the banking sector, the immediate effect will be a tightening of lending, particularly to small and medium-sized enterprises.
“Banks are focused on shoring up their capital, which could temporarily crowd out credit availability for SMEs, crucial to our economy,” the former president of the Chartered Institute of Banking of Nigeria noted.
The Tide’s source reports that the Association of Securities Dealing Houses of Nigeria(ASHON) has accused banks of bypassing licensed stockbrokers as receiving agents in the fresh recapitalisation exercise.
The Chairman of ASHON, Sam Onukwue, and its Secretary, Athan Ogbozor, stated that the association was empowering their staff members, including drivers and receptionists, to issue and receive share subscription forms.
Business
FCMB Moves To Empower Nigeria’s Female Tech Entrepreneurs
First City Monument Bank (FCMB) has launched a female friendly programme called “FCMB’s HERccelerate programme”, aimed at promoting startups’ growth, funding, mentorship, and training to help female founders.
FCMB’s Managing Director (MD), Yemisi Edun, who said this during the launch of the programme, said the initiative, which is driven by the Bank’s SheVentures and Hub One innovation hub, is executed in collaboration with 8th Gear Hub and Venture Studio.
The programme, according to the MD, seeks to equip female founders with the necessary skills, knowledge, and networks to secure funding and ensure sustainable growth.
She noted that applications for the programme, which targets women-led startups across various sectors, including Fintech, Agritech, Healthtech, Edtech, and E-commerce, offers them the chance to compete for funding and other strategic benefits and would be closing on September 30, 2024.
The MD said participants will undergo rigorous training, including office hours, site visits to successful local startups, and networking events with seasoned entrepreneurs.
“This robust support structure is designed to provide participants with access to knowledge, resources, investors, markets, and networks.
“The programme will culminate in a showcase event where winners will receive grant funding and gain exposure to potential investors.
“The bank is commited to fostering innovation and supporting women-led businesses, particularly SMEs in the tech sector.
“This initiative reaffirms our dedication to empowering women entrepreneurs to pursue their ambitions and make significant contributions to the tech ecosystem and Nigeria’s economic development.
“We understand the unique challenges faced by female-led tech ventures, from funding constraints to biases that hinder growth. HERccelerate is our platform to drive innovation and open more funding avenues for these businesses.
“We urge women entrepreneurs to take advantage of this opportunity to leave a lasting impact”, She said.
The Tide’s source reports that Nigeria’s tech sector has experienced notable growth in recent years, with women-led startups making significant inroads across various industries.
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