Features
How Nigeria can prosper from its oil and gas riches
While researching this piece, we came across a 2010 article on Business Insider which spoke about how the focus on Brazil, Russia, India and China (The BRIC’S) might be old news and, in fact, the next decade was going to be about the likes of Mexico, Australia, Vietnam, Indonesia, Nigeria and South Africa.
As a financial services organisation positioning itself to be the leading Pan-African banking group on the continent, predictions like this are fascinating to review. While hindsight is a perfect science, looking at the expectations around Nigeria and South Africa – and then reviewing how their economies actually evolved over the last decade – is interesting.
South Africa has walked an unusual path. At points in time, it has been grouped with the “BRICs” cluster but never really enjoyed the same size economy as its more illustrious peers and in many ways has failed to capitalise on its potential and failed to address structural economic issues, inequality and growing unemployment.
Nigeria on the other hand is a well of untapped potential. With a population of approximately 202 million people, data out of the World Bank suggests that it accounts for more than half of the West African population, is Africa’s largest oil exporter, and has the largest gas resources on the continent.
Before a recession hit in 2016, the Gross Domestic Product (GDP) was growing at a healthy 6.3% per annum and inflation was in the single digits. The COVID-19 shocks of 2020 saw the oil price battered and this hit the Nigerian economy particularly hard.
Oil accounts for 80% of Nigerian exports, a third of banking sector credit, and half of government revenue. When the oil price collapsed, the impact was immediate for Nigeria and its population.
Fast-forward to 2021 and the recovery of the oil price at over $70 per barrel, the investment case for Nigeria brightens significantly. While people often talk about the size of the youth population in Africa, this potential is often missed. According to the United Nations (UN) 43% of the Nigerian population is under the age of 14 and 62% are below the age of 25.
This youthful population is driving a technology revolution which is catching attention of some heavy-hitters across the globe. In the last 12 months, US heavyweight Stripe invested $200m acquiring Lagos-based start-up Paystack while Flutterwave, a Nigerian fintech player closed a funding round for $170million, valuing the company at over $1billion.
The world is sitting up and taking notice of the potential in the country.
These developments are impressive and point to an economy which is diversifying – by the reality is that if Nigeria is going to deliver economic growth over the next decade, much of its fortunes are going to be tied to two key factors:
· The oil and gas sector
· A stable electricity supply
As the world has emerged from the COVID-19 lockdowns, the economic recovery in developed markets has surprised to the upside and demand for oil has been buoyant which has gone some way to repairing government finances. Government has realised the strategic importance of the sector and has continued to invest in the image of the sector and driving a corporate governance agenda to attract foreign investors.
One of the key concerns for investors in Nigeria will be the growth rate relative to inflationary pressures. According to Absa research, real Gross Domestics Product (GDP) is expected to rise by 2.1% in 2021 and 2.6% in 2022. At the same time, inflation is expected to be 16.9% for 2021 and 12.4% in 2022. Households are under significant pressure with a rising cost of living and higher electricity costs being a very real concern.
The second part of the equation is the access to stable electricity supply, which is a prerequisite for attracting foreign investment. Nigeria has embarked on the “Nigeria Electrification Project” which focuses on connecting households and small to medium-sized entities to the grid. A 5-year project valued at $765million dollars launched in 2018 and has secured World Bank funding to the value of $365million.
To match its current population growth, Nigeria is required to create over 5 million jobs per year as entrants enter the job market. This is a pool of untapped potential but it requires a deepening and broadening of its economic activities. With COVID-19 constraining government finances, much of this is going to rest on progressive economic policy.
Data suggests that COVID-19 push nearly 7 million Nigerians into poverty and nearly 40% of the population are now living below the poverty line. The positive performance of the oil price coupled with some exciting developments in the fintech sector could be catalysts for further inbound foreign investment.
As an intermediary facilitating economic activity, Absa looks forward to walking a journey with businesses involved in the Nigeria growth story and engaging with entrepreneurs that are keen to tap into this potential.
Camillo Atampugre, is the director, Resources and Energy, Absa Securities United Kingdom
Community
Abiodun declares state of emergency on flooded Isheri community
…assures residents of permanent solution after comprehensive assessment
Ogun State Governor, Prince Dapo Abiodun, on Monday declared state of emergency on the flooded Isheri community, in Ifo Local Government Area of the State, as he assured residents of the area quick intervention to save the situation.
The governor added that a comprehensive assessment that would lead to permanent solution to the menace of flooding in the affected area would be conducted very soon.
Prince Abiodun, who stated this while fielding questions from newsmen after inspecting the flooded community, said that his administration is working with the federal government to deal with the situation as an emergency case.
He noted that the time has come to find a lasting solution to the perennial flooding to make the area morw conducive for living.
According to him, the state government will see to the elevation of some roads in the area as parts of the solutions to the problem.
The govenor said: “We will prioritize the works here because I am touched with what I have seen. I will ensure that we immediately begin to see signs of relief as we are stepping this up. The Minister of State for Environment is already aware. The Vice President is already aware and also the president. It will be dealt with as an emergency and we are taking it as such.
“As an emergency, I will like to take it up myself. Please continue to bear with us as we are going to conduct a comprehensive assessment of what we need to do to make this place conducive for living.
“Whatever that assessment comes up with is what we are going to implement. So, we are going to first start with ensuring that we have the required road infrastructure at the appropriate levels.
“So if you now built in such a way that we need to relocate you, we have to do that. Whatever it is that we must do to ensure that place does not persistently experience flood, we will do it. But let us wait for the result of the studies to come back and then we will begin to take that decision as and when the situation arises.”
Addressing residents of Riverview Estate, Governor Abiodun said he has requested for an area survey of the entire estate to identify critical areas that needed immediately intervention.
He assured that the intervention would come through the construction of an elevated road with adequate drainages to mitigate their suffering.
“I want to assure you today, knowing fully well that we are a promise keeping administration, we do not say what we do not mean, my heart goes out to you, it is very unfortunate, I am giving my commitment today, the commissioner for works will come and see what needs to be done.
“We have also engage the Minister of State for the Environment, who fortunately, is from Ogun State and I have already brought this to his attention.
“Before the end of the week, I will also table it before the Vice President and the President as well so that we ensure that this problem gets all the desired attention and consequently gets the desired solution so we can bring this to an end,” he said.
The governor also disclosed that he and the Minister of Water Resources would visit the community in few days time.
“We will also discuss the issue of the Ogun-Osun River Basin Authority and try and interrogate the activities there and understand how their activities affect this community and other communities with respect to the opening and closing of the dam,” he said.
The governor described the environment around the Kara cattle market as an eyesore and not befitting the dreams of a “new Ogun State”.
He said that the market was not conducive for human living and not in tandem with the Sustainable Development Goals and waste disposal.
He, however, acknowledged the area as one of the biggest commercial operation that provide services to a large number of people, even as he assured that government would go into a satisfactory agreement with the market men and women after which a comprehensive beautification of the area would take place.
The Chairman, Riverview Estate, Abayomi Akande, in his remarks, intimated the governor of the suffering residents of the area are going through as a result of the flooding.
He said that there is a need for a panel of inquiry into the operations of Oyan Dam to stop incessant release of water to cause havoc in the State
He applauded the governor for sending miscreants packing from the road, saying residents of the axis have suffered robbery attacks and other criminalities for quite awhile.
Akande urged the state government to think of converting the area into a Government Residential Area (GRA) through Public Private Partnership arrangement to fast track its development.
Features
MediaTek, Airtel Nigeria intensify collaborative efforts to bolster mobile connectivity in Nigeria
Lagos, Nigeria – October 12, 2023 – MediaTek, a global leader in semiconductor industry together with Airtel Nigeria, a leading telecommunications service provider, briefed the local media on Thursday on their collaborative efforts, to drive technological advancements and improve mobile connectivity across the nation.
The collaboration introduces MediaTek’s T750-powered Customer Premises Equipment (CPE), a groundbreaking technology that enhances internet connectivity. This advancement allows users to access high-speed 5G networks from the comfort of their homes, opening doors to remote work, gaming, online education, and entertainment streaming like never before.
Speaking during the session, Rami Osman, Director for Corporate Sales and Marketing at MediaTek, Middle East Africa, highlighted MediaTek’s commitment towards expanding its footprint across the Smartphone and Smart Device ecosystem in the Middle East & Africa (MEA) region.
“MediaTek is at the forefront of the global semiconductor industry, and we are proud to lead the way in key sectors like Smartphones, 5G Fixed Wireless Access, Wi-Fi, TV, and AI-IoT. In Nigeria, our collaboration with Airtel Nigeria, revolves around three core areas of focus. In connectivity, we are enhancing high-speed internet access with our advanced chipsets.”
“In the Smartphone domain, we are committed to offering a wider range of premium and flagship devices while supporting the transition from feature phones to smartphones. In the realm of AI-IoT, we are exploring new possibilities and technologies. Thus, this will promote digital inclusion, revolutionize connectivity in Nigeria, and contribute to sustainable development goals,” said Osman.
In addition, he said, “This collaboration aligns seamlessly with our MEA agenda, laying a robust foundation for the future of 5G technology. As we move forward, we are excited to lead in technological progress within this continually evolving region.”
Ismail Olusegun Adeshina, Director, Marketing at Airtel Nigeria, emphasized the importance of the partnership with MediaTek and how it will provide affordable connectivity to Nigerians. He stated, “Our commitment to innovation is evident through our early adoption of 5G technology. We’re proactively investing in this technology to improve connectivity, to tackle coverage and cost challenges, and make 5G devices more accessible across Nigeria”.
MediaTek powers globally recognized brands and remains dedicated to providing state-of-the-art innovations through its latest products and solutions. These offerings span a diverse range, including smartphones, smart devices, automotive technology, satellite connectivity solutions, and next-generation wearables.
MediaTek’s product portfolio includes MediaTek Dimensity for 5G smartphones, MediaTek HelioG series for 4G gaming smartphones, MediaTek Kompanio for arm-based Chromebooks, MediaTek Pentonic for Smart TV technologies, MediaTek Genio for Internet of Things applications, MediaTek Filogic for advanced Wi-Fi 6/6E & Wi-Fi 7 solutions, and MediaTek Dimensity Auto for cutting-edge automotive technologies, among others.
For more information, please visit: https://www.mediatek.com/
The award-winning Bigi Carbonated Soft Drink brand, a product of Rite Foods Limited, is delighted to unveil her highly-anticipated fourth edition of its “Bigi Watch and Win” promo. Designed exclusively for movie enthusiasts in Lagos and Abuja, this exciting promo offers participants the opportunity to watch their favourite movies and win fantastic prizes.
From September 18, 2023, to November 18, 2023, movie goers can enjoy any film of their choice at Silverbird Cinemas and receive a raffle ticket. These tickets can be redeemed for a chance to win incredible prizes, including laptops, Bigi products, printers, perfumes, and more. The grand prize for this edition is a brand-new car.
The first edition of “Bigi Watch and Win” took place in 2021, and later that same year in December, the Bigi brand held another edition. Since then, it has become an annual tradition, demonstrating Rite Foods Limited’s commitment to rewarding brand loyalty among its valued consumers.
Ms. Biola Aransiola, Assistant Brand Manager for Bigi, expressed her excitement about the fourth edition of the promo, saying, “We’ve partnered with Silverbird Cinemas to enhance people’s movie-going experience. Movie lovers can enjoy any of our 13 Bigi Carbonated Soft Drink flavours while watching their favourite films and stand a chance to win amazing prizes.”
Ms. Aransiola also mentioned that her favourite part is witnessing participants’ reactions when they discover the incredible prizes they have won, particularly the grand prize—a brand-new car. She encourages potential participants to check @getbigi on all social media platforms for the terms and conditions.
Through the “Watch & Win” promo, the Bigi brand accentuates Rite Foods Limited’s dedication to supporting the entertainment industry. The brand continues to sponsor movie premieres, as it has in the past with movies such as “The Prophetess,” “Progressive Tailors Club,” and “Aki and Pawpaw.” Additionally, it has been a consistent sponsor of the popular talent discovery platform, Nigerian Idol, for three consecutive seasons (6, 7, & 8), helping aspiring Nigerian singers achieve their dreams of stardom in the music industry.
The “Watch & Win” promo, combined with other effective marketing initiatives, has earned the Bigi brand numerous awards within its market segment. In 2023, Bigi Cola was honored with the “Best Value for Money” award at the BrandXchange Consumers Value Awards. In 2022, it received the “Fastest Growing Cola Brand of the Year” award at the Marketing Edge Brands and Advertising Excellence Awards in Lagos. The Bigi brand also claimed the “Most Outstanding CSD Brand of the Year” award at the 2021 Brandcom Awards, solidifying its position as a market leader in the beverage industry, outperforming its competitors.
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