Business
Infrastructure Challenges Hinder African Economies – UBA Boss
The outgoing Managing
Director of United Bank of Nigeria (UBA), Mr Phillip Oduoza said that the dearth of infrastructure has hindered most African economies from achieving their full potential.
Oduoza said this at the 4th valedictory lecture in his honour by the Chartered Institute of Bankers of Nigeria (CIBN) held in Lagos last week with the topic, “The Emergence of A Nigerian Pan-African Bank”.
He noted that the challenge had led to the spillover effect on African companies’ profitability.
Oduoza said, “I realised that it was important to explore means of bridging this gap to a comfortable extent to ensure businesses run smoothly, remain profitable and contribute to the economy within which they operate .
“It is, however, pertinent to note that the current state of infrastructure represents an opportunity for a Pan African bank to provide project or infrastructure finance.”
He said that country was not exempted from the challenges which the governments had to reduce especially in terms of policy inconsistency.
“Similarly, to Nigeria, we have encountered frequent changes in policies, which often occur as the government and regulators of operating countries try to grapple with economic challenges.
“Resource commitments by banks to comply with new regulatory policies are not optimised due to frequent reversal of these policies. This makes doing business to be unduly costly,” he also said.
Oduoza said African market remained highly fragmented as tariffs, permits and licenses as well as other regulatory barriers increase transaction costs and limit the movement of goods and services.
The outgoing managing director said that trade within the sub-Sahara Africa represents about 10 to 12 per cent of its total trade, compared to its trade with China alone represented 27 per cent.
According to him, this shows the degree of which trade is limited within the region.
He attributed the development to the high informal nature of the economies of those African countries as well as the lack of appropriate platforms for cross border trade.
Oduoza urged central banks to collaborate to promote the development of cross- border trade platforms in order to encourage the informal sectors to join the banking system.
On deepening financial inclusion and retail banking, Oduoza said Pan-African banks would also benefit significantly from increased financial inclusion on the continent.
He said globally, Sub-Saharan Africa remained the region with the lowest level financial inclusion.
“It is estimated that only 34 per cent of adults in Africa have an account in 2014, up from 24 per cent in 2011.
“I anticipate these figures to improve as the African economy continues to expand,” he said.
He noted that financial inclusion was necessary to ensure economic growth performance that would be inclusive and sustained.
He stressed that mobile technology had the potential to vastly expand financial inclusion across Africa saying that Pan-African banks with a good understanding of the continent could leverage their technology platform to capture the opportunity.
Oduoza said that would invariably mean a growth in retail banking as most of those financially excluded fall within the bracket.
He added, “UBA has effectively been promoting financial inclusion on continent by leveraging on our advanced digital banking platform.
“Working with our payment partners, we are improving the payment systems on the continent with prepaid and debit payment cards.
“ We also make use mobile and internet banking platforms, which have been deployed and adapted for our subsidiaries across Africa.”
Oduoza took over as the Chief Executive Officer and Group Managing Director of UBA on Aug 1, 2010 and will serve his full two terms in office on Aug 1.
He is to be succeeded by Mr Kennedy Uzoka.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter
