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Football academies in focus as Super Eagles target AFCON trophy

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EJIRO AWHANA writes about the impact of football academies on the round leather game in Nigeria and the prospects for the Super Eagles in the ongoing African Cup of Nations

The 2019 African Cup of Nations is underway, and the Super Eagles of Nigeria have their sights set on the continental trophy.

This year’s tournament will be the 18th for the Super Eagles, and pundits have tipped Nigeria to go all the way to the finals.

The Eagles have been seeded in Group B with two debutants, Burundi and Madagascar, alongside battle-weary Guinea.

The Super Eagles head coach, Gernot Rohr, has said that he believes in the team and that they will make the nation proud in the competition.

When Rohr released his final 23-man list for the tournament, there were a number of surprises. Aside from captain Mikel Obi, Ahmed Musa and Kenneth Omeruo, the rest of the squad will be making their debut on the continental stage.

One thing to note from the 23-man squad list is the inclusion of first choice goalie, Francis Uzoho, and forward Henry Onyekeru. The duos are products of Aspire Football Academy, one of the world’s leading grooming ground for football talents.

Their inclusion in the Super Eagles team is no surprise as they have proved their worth and the confidence reposed in them. They have been regular starters at their various clubs and this has secured them a place on the national team.

One of Aspire Football Academy’s coordinators in Nigeria, Julia Donishee, described the influence of the academy on both players as the reason for their inclusion in the team.

She said the fundamental training they underwent at the club helped them to get to where they are today.

She added that the club admitted them from scratch and developed them to become remarkable players.

The Country Director, Aspire Football Academy in Nigeria, Col Sam Ahmedu (retd), in a recent interview, said it was a thing of joy for him to see products of the academy do well on the international stage.

A grassroots football coordinator in Lagos, Lekan Aromire, said the selection of Uzoho was not surprising.

He said he knew the goalkeeper in his earlier days and that the confidence reposed on him by Rohr was obviously not misplaced.

Aromire, who recently had one of his rising stars signed onto a second division side in Nepal, said the financial reward spurred him on to do more so other members of his team could reap the reward of all the hard work they had put into their careers.

Football business is good business. In a recent report done by the BBC, the European football market alone is estimated to be £22bn. In the world over, football generates close to £35bn annually. It is undoubtedly a money-spinner and entrepreneurs ready to invest are sure to get huge returns on their investments.

Football academies are the backbone of the European football clubs. The managers of the big leagues are always on the lookout for rising stars and the first places they look to are football academies.

Africana Entrepreneur - Football academies in focus as Super Eagles target AFCON trophy
The Super Eagles players walking across the field. Photo Credit: www.busybuddiesng.com via Google.com

In Nigeria, football academies are on the rise. Many lovers of football are either running or sponsoring them. To some, they do it for the love and development of the round leather game while others do it for profit.

Aromire, who coaches a local football club in Lagos, described his participation in youth sports development as something he had always wanted to do.

He trains young boys in his locality, creating an avenue for them to be groomed and their talents honed.

Describing the financial gratification as appealing, he said, “But I am doing it for the sheer love of it.”

Pepsi Football Academy, Kwara Football Academy and Midas Football Academy are among the academies helping to develop young players in the country.

Over the years, football academies have played in the development of football in Nigeria.

An ex-Super Eagles goalkeeper, Peter Rufai, who is an ardent advocate of grassroots football development, said with more commitment, the efforts of his initiative and that of others would pay off in the coming years.

Staruf, the brainchild of the ex-international, has recorded some degree of success in the short years of its existence.

Rufai, in an interview with PM News, said the club had been able to sponsor several players for trials in European and Asian clubs and many of them had been signed on to various teams.

Nigeria’s FA Chairman, Amaju Pinnick, has wished the country well as they began their 2019 Africa Cup of Nations Campaign in Egypt.

According to him, the team is prepared for the tournament and the nations FA has done what it could to ensure the team is well prepared for the campaign.

But a football pundit, Felix Duru, described the 23-man squad as “green horns,” saying the team’s inexperience might spur them on to justify the trust imposed in them or they could be overwhelmed and perform badly.

A former Super Eagles defender, Sam Sodje, sees the team in a different light.

He said, “Although the players are relatively young and are largely inexperienced in competitions like this, I expect them to do exploit. I am expecting something new from the Eagles in Egypt,” he said in an interview with Goal.com.

Super Eagles centre-back Leon Balogun, has assured Nigerians that the team “is in high spirits and psychologically ready to take on any opponents that come their way.”

In an interview with Goal.com, the defender pointed out that “some people will look at our group and think it will be easy. But there is no such group at tournaments like this one.”

He promised Nigerians that the team would do all it takes to bring the trophy home.

The Nigerian team boasts of only one home-based player; Kastina United goalie, Ikechukwu Ezenwa, who is the team’s second-choice goalkeeper, with the rest of the players plying their trade beyond the shores of the country.

Financial inclusion: Nigerian entrepreneurs tap growing demand for POS services

As the government and other stakeholders are stepping up efforts to deepen financial inclusion in Nigeria, many entrepreneurs are now providing financial services through Point of Sale terminals amid growing demand, RAHEEMAH AROGUNDADE writes

Globally, countries are striving to achieve an inclusive financial sector, as it has been proven that overall access to financial services contributes significantly to economic growth, specifically in the areas of poverty reduction, wealth creation, employment generation and improved standard of living.

It, therefore, becomes imperative for policy makers to create an enabling financial structure that caters for the demand and supply of financial services by the unbanked and underbanked, especially in this part of the world. Those mostly excluded from financial services are the poor and rural dwellers because of lack of access, financial illiteracy or lack of information.

A survey conducted by Enhancing Financial Innovation and Access in Nigeria in 2008 revealed that more than half of the adult population were excluded from financial services.

By 2010, Nigeria’s financial exclusion rate dropped from 53 per cent to 46.3 per cent. Spurred by this development, the Central Bank of Nigeria and major stakeholders in the country initiated the National Financial Inclusion Strategy to reduce the exclusion rate to 20 per cent by 2020.

Africana Entrepreneur - Financial inclusion: Nigerian entrepreneurs tap growing demand for POS services
Nigerian Naira on a table. Photo Credit www.qz.com via Google.com

Progress
To achieve this goal, there is a need for an improvement in the channels through which financial services will be deployed. For instance, deposit bank branches are to increase from 6.8 units per 100,000 adults in 2010 to 7.6 units in 2020. Likewise, microfinance bank branches are to increase from 2.9 units to 5.5 units, Automated Teller Machines to increase from 11.8 units to 203.6 units, POS terminals from 13.3 units to 850 units, and mobile agents from zero to 62 units. In addition, the major structures and measures put in place to achieve this include agent banking, financial literacy, consumer protection and credit enhancement programmes.

The implementation of this strategy has brought about a decline in financial exclusion in Nigeria, thereby improving financial inclusion in the past years. EFInA, in its 2018 survey of the Nigerian financial system, recorded a major boost in financial inclusion within the country when compared to previous years. The survey showed that the number of people who now have access to financial services has increased to 63.6 per cent, while only 36.4 per cent are financially excluded.

The indicators upon which the survey was conducted include banked population, savings, remittances, payments, loans and banking agents.

According to the survey, digital payments increased to 16 per cent. An increase from 5,000 monthly volume in 2011 to 30 million in 2018 became visible in the quantity of card transactions on POS, as reported by the director of Nigeria Inter-Bank Settlement System.

There has also been an increase in the quantity of installed POS terminals, from 10,000 in 2011 to 200,000 in 2018 – an indication that the measures put in place are productive.

Investigations by Africana Entrepreneur revealed a widespread increase in digital payment systems and POS usage through agent banking.

A customer simply identified as Segun said, “I use the POS very well. And I don’t have to go to the bank regularly.”

He explained that he would go directly to the POS terminal from his house, which is just a stone’s throw away.

According to him, the stress people go through in banks, the wait in long queues and the distance of the bank to his house usually discourage him from visiting the bank.

Another customer explained that the cost of transport from her house to the bank was the same cost she would incur as charges for using POS by her doorstep.

Africana Entrepreneur - Financial inclusion: Nigerian entrepreneurs tap growing demand for POS services
A market-woman with POS machine. Photo Credit www.businessnews.com.ng via Google.com

Opportunities
Agent banking is not just restricted to POS terminals. According to the CBN, it involves the delivery of banking services outside traditional bank branches through additional touch points such as existing retail stores and petrol stations or via technology such as PoS devices and mobile phones.

Apart from those who use mobile devices, the POS terminal is perhaps the most common alternative for people to perform basic transactions like withdrawal, deposit, transfer and activation of subscriptions in Nigeria today.

It not only offers ease of access and convenience to people within a locality, it also serves as an avenue for entrepreneurship, which also benefits the agents.

“The POS terminals help people avoid long queues at the bank. Often, people have complained of waiting for hours to use ATMs and when it was their turn, the machine began to say, ‘Unable to dispense cash.’ We also help provide easy access to money anytime people need it. These are the major reasons people prefer to use our terminals rather than the ATMs. This method is more reliable and time-saving. Also, it is another means of earning money,” Ms Abiodun Adetona, a First Bank of Nigeria money agent, told Africana Entrepreneur.

She explained that her business was similar to all other forms of POS agencies, adding that the only difference was that the POS terminal was issued directly from her bank.

Another money agent, Ms Olubote Tolulope, noted that the money agents take the stress of going to the bank away from people.

“There is no need to wait on long queues. Here, we cash in and cash out immediately. People avoid going to the banks for a lot of reasons; some because of the tedious documentation process. For others, it could be distance or stress, compared to the convenience of performing those transactions in their neighbourhood.”

Mrs Gloria Oloyede noted that POS was introduced to aid the cashless policy initiative of the Nigerian government.

Describing it as a welcome development, she said, “It helps people reduce the rate at which they hold cash, which makes them prone to attack from robbers.”

According to her, the POS allows people to get what they want at any time, even when there is no cash at hand.

“The major reason people don’t go to banks is the distance and cost of transport. Their preference for POS is because it saves them time.”

For her, being an agent is an addition to her other business, as it helps to prevent people from buying on credit.

“Some people would say, ‘I have to go to the bank so I can pay you.’ With POS, you have your bank with you, which is the ATM; so, buying on credit is being discouraged.”

Africana Entrepreneur - Financial inclusion: Nigerian entrepreneurs tap growing demand for POS services
Denominations of Nigerian Naira. Photo Credit guardian.ng via Google.com

Challenges
Africana Entrepreneur gathered that the major challenge faced by agents is the network.

“When the network is down, most POS (terminals) do not function. Debits will occur in the client’s account, but we won’t be credited. So we can’t cash out money to such customer,” an agent said.

He advised banks to work on reverting money into a customer’s account within 24 hours in cases of false debits, to reduce the complaints and accusations from the clients.

“Due to this bad network, I incurred a loss of N15,000. I did transfer for someone and the POS went blank. The person had left before I received a debit alert in my account. Unfortunately, the customer didn’t give me money. I tried to reach out to him, but till now, he has not responded,” Abiodun said.

Banking through POS agents and other agents has been helpful in reducing financial exclusion in Nigeria. It doesn’t just serve as a way of easing access to basic financial services, it also creates jobs.

“You don’t need money to start. All you need is to open a bank account if you own a business and request for POS, and you will be given. You don’t even need money to get it,” Oloyede explained.

Entrepreneurs must be prudent in managing resources – Daisi

In this interview with RAHEEMAH AROGUNDADE, the Dean, School of Communication and Liberal Studies, Lagos State Polytechnic, Ikorodu, Mr Segun Daisi, talks about the role of entrepreneurs in an economy and shares tips for entrepreneurial success

What does entrepreneurship mean to you?
In my understanding, an entrepreneur is the self-employed individual who manages scarce resources at the risk of either profit or loss.

 

What prospects are in the entrepreneurial sector?
The first visible prospect of entrepreneurship is job creation. We realise that entrepreneurial activities facilitate and extend employment opportunities. Another prospect is that it helps in poverty alleviation. When people start businesses, they createa source of livelihood for themselves and others. Additionally, it will help to reduce the prevalence of criminal activities.

Similarly, entrepreneurship helps in capacity building and utilisation. It makes people develop business management and marketing skills. It also facilitates strategic and critical thinking in businessmen and women. Finally, entrepreneurship contributes to the growth of an economy.

 

What are the major challenges militating against the successful practice of entrepreneurship in Nigeria?
The most notable challenge would be lack of innovative business ideas. Very often, we see people selling the same range of goods within the same neighbourhood. There is no diversification of any sort. Another challenge is the unavailability of venture capital. The amount of money invested in a business should be considered in terms of its potential for profit and loss. Unfortunately, it is usually inadequate or inaccessible. In addition, business personnel have poor or no mentorship. The chances are that if a businessman or woman has a mentor to guide them, the business will be successful, as against running a business with no experience or tutelage. Other challenges include low entrepreneurial capacity, poor infrastructure and production of sub-standard products.

 

In what ways can an entrepreneur be successful in business?
To grow in a business, the entrepreneur must be prudent when it comes to the management of scarce economic resources. Also, the entrepreneur should be adequately groomed to take up any business activity and build his/her capacity. Another feature that could promote growth is the production of top quality products.

It is also important to maintain corporate discipline and integrity when handling a business. A businessman should explore export opportunities for his/her goods and services. This will go a long way in maintaining a consistent brand identity, increasing revenue and customer loyalty and improving the economy. Finally, to be a successful entrepreneur, one has to be diligent and learn to follow due process.

 

How well do you think entrepreneurs thrive in the midst of Nigeria’s harsh economy?
Entrepreneurs have thriven but not so well in Nigeria due to certain business-specific challenges, some of which have been mentioned above. However, the roles recently played by the Bank of Industry and some non-governmental organisations and religious organisations have been beneficial, though not entirely significant.

 

In what ways has the unstable economy affected entrepreneurial growth?
The unstable Nigerian economy has sadly affected the entrepreneurial growth in the country in many ways. First, the unstable economy has brought about high inflation, increased interest rate and high foreign exchange rate. It has also succeeded in rendering our electricity supply erratic, resulting in high cost of alternative energy. In addition, the unstable economy has made it difficult to access loans. Indirectly, it has led to poor infrastructure. One other effect of the unstable economy is the promotion of weak political will on entrepreneurship.

 

Can entrepreneurial activities help to boost Nigeria’s economy?
Entrepreneurial activities can, to a large extent, boost economic growth.

Tax reliefs every Nigerian entrepreneur must know

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EJIRO AWHANA examines some of the tax reliefs entrepreneurs in Nigeria can avail themselves of in order to cushion the effects of the many challenges their businesses face

Having knowledge of the tax reliefs or incentives available in the country is one thing, applying them when filing tax returns is another.

Some tax incentives will only be applicable under certain circumstances, and knowing those circumstances will help you in making certain decisions when starting up or running your business.

Here is a list of the some of the tax incentives applicable to businesses in Nigeria:

Small business rate: A company with a turnover of N1m or lower will be charged 20 per cent as taxes. This rate will only be applicable to companies engaged in manufacturing, agricultural production, mining of solid minerals and fully export-based trade.

Pioneer companies: Tax holiday is granted to companies with pioneer status. Importance is placed upon the newness and relevance of the products by the company. The tax holiday period is subject to a maximum duration of five years. In this case, there is a total exemption from taxes of the company’s profit during this period.

Solid minerals mining: A company going into the mining of solid minerals will be exempted from taxes for the first three years of its operation.

Spare parts fabrication: Companies that engage wholly in the fabrication of spare parts, tools and equipment for local consumption or export will be allowed a 25 per cent investment tax credit on its qualifying capital expenditure. This means that for such companies, 25 percent of its capital expenditure will be deducted from whatever tax they are to pay.

Locally manufactured plant: Companies that purchase locally produced plant, machinery or equipment for use in their businesses will be allowed a 15 per cent tax credit on such fixed assets. This implies that there will be a 15 per cent deduction on its taxes.

Export free zone exempt profit: Companies that are 100 per cent export-oriented will be exempted from taxes for the first three years. This will apply to companies in or outside an export free trade zone.

Hotels income exempt tax: 25 per cent of foreign exchange derived from tourists by a hotel will be exempted from tax. This exemption will only apply if such derived income is put in a reserved fund and will be utilised within five years for the building or expansion of new hotels, conference centre and new facilities for the purpose of tourism development.

Investment tax relief: Companies that are located in areas devoid of essential infrastructure like electricity, water, tarred roads and telephone that incur expenditure on the provision of these facilities shall be allowed an investment tax relief on the amount of the expenditure. These allowances are broken down as follows:

Lack of telephone – five per cent

Lack of motorable or tarred road -15 per cent

Lack of water – 30 per cent

Lack of electricity – 50 per cent

No facilities at all – 100 per cent

It should be noted that for these tax relief to be applicable, the company must be located at least 20 kilometres away from any infrastructural facility. The relief is claimable for only three years.

Investment allowance: 10 per cent of funds spent in acquiring plants and machinery used for agricultural production and manufacturing by agricultural and manufacturing companies. The investment allowance tax will be applicable only in the first year of purchase.

Replacement of obsolete plant: When a company incurs expenditure for the replacement of an old or obsolete plant and machinery, there will be a 15 per cent investment tax credit for that company. In this case, whatever funds spent in acquiring the plant or machinery, there will be a general 15 per cent tax deduction for that company.

Deductible capital allowance: Full capital allowance is granted to agricultural and manufacturing companies. This is in respect of assets used in agricultural and manufacturing production. For other companies, capital allowance is restricted to two-third of its assessable profits.

Research and development: Any fund spent on research and development, including that paid to the National Science and Technology Fund, is an allowed deduction in arriving at a company’s taxes. In addition, any reserve made out of the profits for research and development is also an allowable deduction of up to 10 per cent of the total deductable profits of a company. There is also a 20 per cent investment tax credit on qualifying expenditure for companies engaged in research and development for commercialisation.

Leveraging
Entrepreneurs should not leave the job of filing their companies’ taxes in the hands of certified accountants alone. There is a need for entrepreneurs to understand the basics of filing taxes. This knowledge will help the entrepreneur make better and informed decisions in the daily running of their businesses.

For instance, the knowledge of the investment tax relief will help a business owner to determine where to locate a company. For example, if you are to buy a property for your business in a town that lacks basic infrastructural amenities, it will be advisable to acquire a property at least 20 kilometers away from ‘civilisation’. Since the business owner will still be providing these amenities, it is advisable to situate the business in a location where he or she will be able to enjoy the tax relief.

Another instance is the hotels income exempt from tax. As an hotelier that enjoys the patronage of tourists, understanding this tax exemption will help in creating strategies that will boost the volume of foreign currencies used in the hotel. Knowing full well that a good percentage of that money is tax free if utilised in a certain way, the hotelier will make informed decisions in running and expanding the business.

Since the primary goal of every business is to make profit, understanding and taking advantage of these tax incentives will help businesses a great deal.

Econet, Yara unveil new initiative for African agri-food entrepreneurs

A pan-African telecommunications, media and technology group, Econet, and global crop nutrition leader, Yara International ASA, have launched ‘Generation Africa’ to inspire young African entrepreneurs to join the agri-food sector for its viable business opportunities.

Econet said on Thursday that the partnership initiative would reach thousands of young people through its ‘GoGettaz’ competition, which would award $100,000 prize to two exceptional agri-food businesss.

Africana Entrepreneur gathered that it would also support 12 budding young entrepreneurs to prosper their ventures.

The President and Chief Executive Officer, Yara, Svein Tore Holsether, said, “Africa’s agri-food sector presents a $1tn business opportunity by 2030, especially when connected with the current technology revolution. Across Africa’s agri-food chain, innovations can be found in how we grow, harvest, process, store, transport, package, sell and consume food. Together with the pioneers of Africa’s next generation, we want to seize these opportunities.

“Generation Africa will help youth entrepreneurs launch, grow and mature agri-food businesses that will drive job creation, inclusive growth, and better food supply.”

Africa, with about 600 million hectares of arable land, imports food for $35bn a year – a figure that is estimated to rise to $100bn by 2025, while over 60 per cent of young people across Africa are unemployed, according to a statement.

It said innovative entrepreneurship could retain more value on the continent, helping to counter-balance rural-urban migration, professionalise farming, generate employment and provide affordable, healthy food to Africa’s growing population.

“Africa is full of entrepreneurs. We have more entrepreneurs than any other continent. But where the average age of an entrepreneur is 19, the average age of a farmer is 60! The time is now for Africa’s entrepreneurs to grow their businesses and embrace the incredible opportunities that agri-food businesses offer. If we do not, someone else will.” Econet’s founder and Group Chairman, Strive Masiyiwa, said.

The GoGettaz competition is open to African agri-food entrepreneurs from 18 to 35 years.

Masiyiwa added, “Never has there been a more powerful moment in history – nor a more digitally-capable generation – to leapfrog Africa’s agri-food sector from a net importer of food to feeding the planet.”

Selling a brand is not as difficult as many think – Samuel Abu

The Chief Executive Officer of A. Sam Productions, Mr Samuel Abu, speaks with INNOCENT ENETA about his nearly two decades’ experience in printing and graphic design business

When did you start A. Sam Productions?
I started out in the year 2000, so I can say confidently that I have spent 19 years in the industry and I am still learning every day.

In the industry, I do command a certain degree of commendation because of the way I handle my jobs. That is why most of my clients/customers always come back anytime they need the services of a brand manager or designer.

As a printer and brand manager, how have you been able to adapt to technological changes?
I am always keen on technology development around me because I studied science in secondary school right from my secondary school days up till tertiary education level – I studied Building Technology at Auchi Polytechnic, Edo State. My curiosity has made me stand out among those I started with in the industry.

Changes in technology have been a welcome development, especially in my profession. I am always on the lookout for innovations and new methodologies in my field of endeavour in order to sustain my competitive edge.

What are the major challenges facing operators in the industry?
The design industry is one that has far too many charlatans posing to be professionals; we need more enlightened people to educate them on how to achieve great brands and sell them to their would-be prospects.

This is one industry I know of where people get in because they need something to do and most of them rush out before long after realising that they can’t cope with the difficulties they see. One of the major challenges is lack of adequate power supply. Power is critical to the growth of any economy; without reliable power supply, it will be difficult for entrepreneur to run their businesses.

One of the major challenges the printing and graphic industry faces is sourcing for materials locally to work with as most of what we use in Nigeria are still being imported and we are at the mercy of the importers, considering the current exchange rate of the dollar to naira.

There are many who would want to expand their businesses but don’t have what it takes to acquire some good and useful machines made to aid the work of a graphic artist. For instance, the average laptop/desktop computer a graphic artist is supposed to work with has to come with graphic cards. Imagine an artist using Corel draw to design a 100-page magazine when he is supposed to use publishing software like InDesign? These computers don’t come cheap; a new i7 laptop with Nvidia cards costs as much as N320,000 to start with. How many young entrepreneurs can afford that to start with? Printing machines, finishing machines and packaging machines are also required.

I have also observed that many graphic design graduates from our higher institutions are not well groomed. How would a graphic design graduate not know what a brand manual is?

Africana Entrepreneur - Selling a brand is not as difficult as many think – Samuel Abu
Mr Samuel Abu. Photo Credit Facebook.com

How do you attract the right clients?
The world we live in today is more of a network of people and many people have a strong desire for excellence. When people saw the first complimentary card I did for myself, they liked it and wanted to have the same concept done for them.

As I was taught by one of my marketing mentors, you start from the known to the unknown – that is to say, you start your business presentations from your friends, family members, relations and close associates; they are the ones that will sell your ingenuity to others. And the trust that they repose in you has a way of rubbing off on others.

What is unique about your brand?
Every brand has its own uniqueness; I love branding, creating, customising and trademarking.

To sell a brand is not as difficult as many see it today.

First, you must have passion for what you do or do what you intend venturing into.

Secondly, you brand should be 100 per cent your idea of paradise; so, the brand plays a major part in bringing about prosperity for you and the business.

Always have in mind your core values, aims and objectives, coupled with integrity.

How do you cope with competition?
From one of the marketing training programmes I attended, I learnt that it is very important for every business to have a unique selling proposition – that uniqueness in service or product synonymous to you and you only; something that makes you stand out from the crowd. My unique selling proposition is my creativity and promptness of delivery.

Are you planning to scale up your business?
Yes, we are constantly looking for expansion opportunities and we are in the process right now as we speak to move to a bigger space to accommodate more work and activities.

Where do you see the Nigerian graphic design and printing industry in the next five years?
I see greater possibilities and more professionals emerging and really coming up with out-of-this-world ideas that will revolutionise the industry. I believe we will have smaller machines that can do what the enormous ones are doing but faster and with less supervision and technicalities.

What is your advice to other entrepreneurs who want to invest in the industry?
They should always be ready to acquire innovative means to surpass competitors and be always in the know about what is obtainable in the industry. They must be ready to educate themselves primarily through the Internet, print exhibitions, publications and seminars.

‘Only 10% of Nigerian family businesses have robust succession plan’

A new survey has revealed that 77 per cent of family businesses in Nigeria plan to pass on management to the next generation but only 10 per cent have a robust, documented succession plan.

PwC, in its 2018 Family Business Survey, said family businesses should seek to maximise the competitive advantage that comes from their strong values-led culture.

The Family Business Survey is a global market survey among key decision makers in family businesses within a number of PwC’s key territories. The goal of the survey is to get an understanding of what family businesses are thinking on the key issues of the day.

This year’s report with the theme ‘Building a lasting competitive advantage through your values and purpose in a digital age’ saw family business leaders globally reporting robust health, with levels of growth at their highest level since 2007.

Regionally, businesses in the Middle East and Africa were the most optimistic, with 28 per cent expecting aggressive growth. They are followed by those in Asia Pacific (24 per cent), Eastern Europe (17 per cent), North America (16 per cent), Central/South America (12 per cent) and Western Europe (11 per cent).

According to the report, growth among Nigerian family businesses over the last 12 months is lower than the global average with only 53 per cent reporting growth in the last 12 months against 69 per cent globally.

However, 87 per cent expected to grow over the next two years, with 40 per cent saying growth would be quick and aggressive against 16 per cent globally.

The top three challenges cited by Nigerian family businesses as militating the personal and business goals were economic environment (70 per cent), corruption (67 per cent) and regulation (57 per cent).

The report said, “Corruption, which PwC estimates could cost up to 37 per cent of Nigeria’s GDP by 2030 if unchecked, is associated with lower investment, higher prices as well as barriers of entry for businesses.

Africana Entrepreneur - Only 10% of Nigerian family businesses have robust succession plan'
Photo Credit: medium.com via Adaeze Ezenwa

“Most strikingly, the 2018 edition of the survey demonstrates a link between putting values at the heart of strategic planning and strong growth prospects. While 67 per cent of Nigerian family businesses have a clear sense of agreed values and purpose as a company, less than half (43 per cent) of respondents have those values articulated in written form.”

The Country Senior Partner, PwC Nigeria, Uyi Akpata, said, “The message is clear: adopting an active stance towards company values generates practices that pay off in real terms. A commitment to a clearly defined set of values can act as an ‘inner compass’ and provide a competitive edge for a family business as it navigates the challenges of technological and competitive disruption.

“What this survey clearly indicates, however, is that family business values are not simply the same as family values. Business values should be clearly defined and articulated, but also strongly embedded in the business culture and the day-to-day decision-making regularly reviewed.”

PwC found that Nigerian family businesses had a slightly lower level of perceived concern about the threat from digital disruption (23 per cent) or cyber security vulnerability (33 per cent), compared with global average of 30 per cent and 40 per cent respectively.

Women average 30 per cent of board members in Nigerian family businesses, according to the survey.

A Partner and Head Private Wealth Services, PwC Nigeria, Esiri Agbeyi, said, “A key take away from our findings is that there is an opportunity for family business owners that are committed to and adhere to a deep sense of social responsibility and sustainability to invest their resources in a manner that is consistent with their values.

“Also, the next generation is key to a family business’ lasting legacy and not involving them in plans to pass on the business risks disengagement. It’s crucial to have a written and documented plan for the continuity of the business to improve transparency and trust. The next generation need time to build a collective sense of purpose and be supported in developing their own framework for success.

“Our conversations with family businesses show that often they recognise the need to start the process, but those conversations can be difficult. Timing is crucial and so is communication to all stakeholders.”

Fashion startups on the rise as Nigerian graduates pick up skills

Many graduates in Nigeria are not only making a living as fashion entrepreneurs, they are also striving to make a difference in the fashion world, EMMANUEL MONYEI writes

The number of graduates who have abandoned their academic certificates to pick up entrepreneurial skills in the art of fashion designing is growing in Nigeria.

The founders of Damsco, Novice Couture and Christal Wears are just three out of many graduates who have found outlets for their passions for fashion.

Damsco, which deals in men’s clothing, was established by Damilola Otufodunrin, who graduated from the University of Lagos. He also runs Damsco Consult, which keeps people abreast of developments in the world of fashion.

“I’ve never seen myself as a 9-5 person,” Otufodunrin told Africana Entrepreneur while talking about how he created a niche for himself as a fashion entrepreneur.

He started his entrepreneurship journey in his university days because “I have always had the drive to be in control of my life.”

When he was in his third year in the university, he launched a dry cleaning business and was also creating fashion illustrations for designers.

Otufodunrin established Damsco in June 2013.

The graduate of History and Strategic Studies told Africana Entrepreneur that his fashion brand had continued to grow over the years.

“Your delivery would determine the feedback and reviews you get from customers,” he said.

He added, “My advice to other young designers is that they should live life per time; let people see how your growth progresses, be deliberate about putting in your best, and money would eventually come if you put in your best.”

Africana Entrepreneur - Fashion startups on the rise as Nigerian graduates pick up skills
Photo Credit: saharareporters.tv

Ogochukwu Chukwunomso, who studied Accounting at the Obafemi Awolowo University, is another fashion designer striving to make a mark in the industry.

The Chief Executive Officer of Novice Couture, a fashion startup that makes unisex wears, “believes strongly in entrepreneurship.”

According to him, determination and love for fashion trends are essential for anyone who wants to go into the fashion industry.

“Everyone has different concepts and your concept is what makes you unique. The competition is stiff but your customers will be your customers,” Chukwunomso said.

Specialisation seems to be the name of the game in the fashion world.

The Chief Executive Officer/Creative Director of Christal Wears, Christiana Talabi, is into ready-to-wear designs and designing bespoke oufits for women.

“I have always been a fashion lover…but I never dreamt of ever becoming a fashion designer. I studied Linguistics and I had interest in broadcasting. Although my mum was a fashion designer, she lost interest in it long time ago.

She had a sewing machine in the house for decoration. I can never forget how restless I was in my hostel during my final year in school. I just had designs in my head; I tried to ignore them but I couldn’t. It all began with sketches as I felt I could sketch my designs and have tailors make them for me,” she said in a recent interview with Sunday PUNCH.

Find outlet for your passion – Gbenga Sesan

The Executive Director of Paradigm Initiative, Mr Gbenga Sesan, has urged Nigerian youths to find outlets for their passions.

Sesan spoke recently at the Surulere Economic and Job Summit organised by the Executive Director of Mind the Gap, Tayo Olosunde, in Surulere, Lagos State.

The summit focused on how to stimulate local productivity for national development.

“Find a place to express your passion. One of the places that will keep you going is passion. Money will not be a deciding factor,” Sesan said, while speaking on ‘Creating local solutions to global human capital challenges (from Ajegunle with skills – story of PIN).’

He described his story as one of being deliberate despite coming from a humble background in Ondo State.

He urged the audience to hold their government representatives accountable.

Sesan said, “As a young Nigerian, you are on your own. You have only one responsibility, which is to yourselves. The politicians don’t really care about us. Ask them questions and don’t queue for photos. Will that picture get you a job or make the roads?”

He said Lagos had always been a home of opportunities and in being deliberate about his story, he chose a path that would help him practise what he loved.

He, therefore, encouraging young people to be persistent and passionate in the place of work.

NEEDED URGENTLY: Agricultural entrepreneurs!

Whenever low oil prices hit the Nigerian economy, people recall the option of agriculture and begin scrambling to obtain land and plant something like the days of the gold rush in California or the diamond boom in South Africa.

Many success stories have been told but with an absence of many locally funded surveys, we may never know the rate of entry into and exit out of Nigeria’s agricultural sector.

What available data tell us though is that Nigeria remains a food-deficit country. That is the view expressed by the Food and Agriculture Organisation.

The overwhelming feel-good factor sprayed into the atmosphere when a rush is sparked leaves one feeling like new ideas will flow in to aerate the sector and bring in innovations. In truth, there are some new business ventures like the Farmcrowdy concept that allows five to nine people run a farm without having their hands in the soil; the use of drones to spray pesticides; and the introduction of biotechnology crops that may just reduce the need to deplete our soil value further.

Farmcrowdy and other similar new businesses have introduced new investments into agriculture; drones take away jobs from a sector that is the highest employer of labour in the country; biotechnology and genetically modified, BT or GM – which ever suits your tongue – gives the seed supplier monopoly of your seedlings, reduces the use of chemicals on your farm and ultimately damages the natural make-up of that crop. It is a controversial topic among the learned and unlearned.

All told, these innovations have not reached a critical mass – the tipping point of ‘change or ‘transformation’ – to make a dent on Nigeria’s food security profile.

According to the FAO, Nigeria makes an annual loss of $10bn from declining production in cocoa, oil palm and cotton; 12.9 million Nigerians are malnourished and 13 million are hungry, according to 2016 estimates.

Agricultural Production and Yield 2010 – 2015

 

Production performance

 Average growth rate (%) 

 

2009

2010

2015    

2011- 2013

2014 – 2015

2010 – 2015

Beans

 

 

           

Area harvested

2.3

2.9

3.6

8.0

0.6

8.1

Output

2.4

3.4

2.3

50.6

-23.0

24.6

Yield

1.0

1.2

0.6

35.0

-22.7

12.5

Maize

 

 

           

Area harvested

3.4

4.1

6.8

12.4

8.4

13.0

Output

7.4

7.7

10.6

3.5

12.2

6.5

Yield

2.2

1.9

1.6

-7.5

3.4

-5.2

Millet

 

 

           

Area harvested

3.8

4.4

1.6

-25.5

3.5

-9.0

Output

4.9

5.2

1.5

-34.6

30.0

-6.5

Yield

1.3

1.2

0.9

5.3

26.0

9.8

Rice & Paddy

 

 

           

Area harvested

1.8

2.4

3.1

7.3

3.2

10.1

Output

3.5

4.5

6.3

3.2

14.3

10.7

Yield

1.9

1.8

2.0

-3.1

10.6

1.2

*The Areas Harvested is in thousand hectares and the output and yield are in million metric tonnes. **The data above shows that increased hectare and improved harvest barely ever lead to increased yield.

The agency of government responsible for closing this gap is the Nigeria Stored Products Research Institute. Forgetting the enormity of the challenge facing it, the NSPRI told or permitted the National Assembly to add N1.35bn into its 2018 budget for building solar streetlights, buying vehicles and carrying out other activities that had nothing to do with reducing losses incurred by farmers before they get the opportunity to make a dime from their harvest.

It is important for Nigerian ministers to avail themselves of data that genuinely reflect the performance of any sector. They need to avoid speaking in ignorance.

The Minister of State for Agriculture, Heineken Lokpobiri, recently told a visiting official from the International Fund for Agricultural Development that all of West Africa depended on Nigeria to survive.

For many years, the country has not been able to produce enough food for its population and a lot of farm produce still go to waste.

With the FAO working with the International Labour Organisation to boost the involvement of youths in agriculture, more innovators should be driven to think of building processing plants that target post-harvest loss reduction. We need a critical mass of agricultural entrepreneurs in that space.