Entertainment, Agriculture, Tourism May Rescue Nigeria: Experts Speak On Economic Challenges In 2015: Entertainment, Agriculture, Tourism May Rescue Nigeria Despite the forecast that Nigeria will be confronted with economic challenges in 2015, experts have said that agriculture, entertainment, tourism and fashion will cushion the impact of falling oil prices. The experts argue that the listed sectors represent alternative sources of revenue for the Nigerian economy. However, they emphasise that repositioning tourism as a viable alternative to oil would require the enactment of requisite legislation and appointment of professionals to key positions. Also, there is consensus of opinion among technology experts that technology will have more impact on the lifestyle of Nigerians in 2015. According to them, the convergence of mobile phones and computer implies that mobile gadgets are combining several functionalities that one would never have thought possible 20 years ago. Wale Abe, chief executive officer, Financial Market Dealers Association of Nigeria, says Nigeria’s vulnerability to global events will become more evident as economic challenges prevail worldwide, noting that dwindling oil price will be a major challenge for the economy. Putting into consideration the lower capital expenditure in the 2015, Abe said a higher recurrent spending would not see any real developmental spending, with implications for private companies whose products and services are dependent on government spending. He stressed that more focus would be on agriculture and the new contributors to the GDP- entertainment and fashion and core domestic activities. Agric’ll have positive impact on the economy- Adesina The minister of Agriculture and rural development, Dr Akinwumi Adesina has stated that the innovation being put in place in agriculture sector will have positive impact on the economy in 2015 Speaking through his Special Adviser on Media, Dr. Adeleke Oyeleye, Adesina stated the Agricultural Transformation Agenda has impacted every facet of the Agricultural sector in the country. The minister also told LEADERSHIP yesterday that there has been massive growth in seed companies in the country, which ensures quality control. “The massive growth in licensed seed companies in Nigeria is a pointer to the fact that the Agricultural sector holds great promise for the Nigerian economy. This has also seen bank lending to seed companies rise from about N1.895billion in 2012, N4.2billion in 2013 to more than N6billion in 2014,”said Minister of Agriculture, Dr. Akinwunmi Adesina. For her part, head of research at Standard Chartered Bank, Razia Khan, forecasts that Nigeria’s economic growth will slow in 2015 and that the Gross Domestic Product (GDP) year-on-year growth is expected to drop to 4.7 percent. In her outlook on Nigeria for 2015, Khan said lower oil prices, the challenge of managing a more volatile currency, and an increasingly violent insurgency in the country’s north will weaken Nigeria’s growth in 2015. “Elections in Nigeria are typically accompanied by some economic pump-priming, but with elections due in mid-February, it is unlikely that spending ahead of the polls will be able to lift growth substantially. Oil price volatility will reduce the resources available for spending,” said Khan. “Oil contributes only 14.4 per cent to the rebased GDP. But it contributes 96 per cent of Nigeria’s foreign exchange earnings and 70 per cent of consolidated government revenue. Longer term, there is much on which to pin hopes of more robust growth.” Khan further noted that increased shale production had contributed to Nigeria’s structural challenges. She said: “In 2008, the US was still Nigeria’s largest export market, buying 45 per cent of Nigerian oil. In 2015, Nigeria is unlikely to sell any oil to the United States which used to be the country’s largest customer, and will instead seek other markets, where it is unlikely to obtain a premium on the light, sweet crude long preferred by east coast refiners.” Khan added that economic adjustment was inevitable in the medium term, and that lower oil prices should accelerate the pace of reform. “Passage of the long-delayed Petroleum Industry Bill is hoped for post-election in order to unlock new investment in Nigeria’s oil sector. However, this will require a political consensus that may be difficult to obtain,” she said. Nigerian capital market will recover in 2015 The Nigerian stock market is likely to end the year on a negative note. The stock market, which has been in recovery mode since 2012, had a reverse of the trend in 2014. The NSE has so far, in 2014, lost 27.92 per cent to sell down by foreign and institutional investors. From a high of about 41,329.19 points in December 31, 2013, the NSE ASI dropped to 29,789.59 points by December 16, 2014. Also, the market capitalisation dropped by N3.39 trillion – from N13.226 to N9.835 during the period. This resulted from factors affecting market growth, starting with the stoppage of the QE by the US Federal Reserve which had resulted in funds outflow from emerging markets due to improvement in US economic indicators, the liquidity tightening by the Central Bank of Nigeria (CBN) and the unceremonious removal of the CBN governor, resulting in uncertainty and withdrawal of funds by foreign portfolio investors. Lately, the market downtrend has been attributed to the 2015 election, fall in the price of crude oil and the devaluation of the naira. Capital market stakeholders are of the view that the market in 2015 will be on a positive side, considering that the macro-economic factors affecting the market in 2014 would have been allayed. According to a stockbroker with Calyex Securities Ltd, Mr. Tunde Oyediran, the stock market direction tends to be positive with current fears alloyed. “There is empirical evidence that supports the thesis that the year following the devaluation of a country’s currency, it would experience an upswing in its capital market. The banking sector, which has been battered, will lead the recovery. They often give over 8 per cent dividend yield hence they will attract more patronage in the first quarter,” Oyediran said. Speaking on market direction in 2015, the chief operating officer, Investdata Ltd, Mr. Ambrose Omodion, said it looked very dicey as factors militating against the market now was likely remain in the new year with the matter of the oil price slide. He noted that, with the lack of positive economic numbers in the heat of political uncertainty – as the general elections draw nearer and the celebrations are around the corner, “the market has continued to give in to sells pressure as many players exit the market to hold cash even at the wrong time.” According to him, “The recent austerity is just a sign of what should be expected in 2015 as the nation’s major export product has lost value in price, which is likely to keep our reserve down even after the election, but all hope is not lost as foreign investors are sitting on the fence now, waiting for the outcome of the election to jump back into the market as devaluation (of the naira) has made our market more attractive to them because with small dollar they will continue to control the market transactions.” He advised investors to invest in companies that depend less on imported material, and those that had done backward integration. For sectors to watch out for in 2015, he said that investors should look at the financial sector, targeting companies with less off-shore borrowing, hospitality industry, building industry, construction, healthcare and consumers goods. He noted that Seven Up, Mobil, CCNN, Transcorp, Forte Oil, Stanbic IBTC, ETI, Zenith, GTBank, Fidson, Nigerian Breweries, and Dangote Sugar would post strong earnings in 2015, going by their earnings. On his part, the general secretary of Shareholders’ Association of Nigeria, Mr. Adeleke Adebayo, said that the stock market would stabilise in the second quarter 2015. “There are three issues affecting the market: the election, which at the end of first quarter 2015 would have been resolved; another is the falling price of the crude oil in the international market which, by March 2015, would have stabilised with the budget of 2015 which will be presented based on the bench mark price of oil. Lastly, with the expectation of end year results of companies, if turned positive, would boost market performance in 2015.” He stated that these three factors would bring stability to the market in 2015. On the business sector, the director-general of Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf said, “We should face up to the reality of a weak currency and begin appropriate adjustments in both public and private sectors. This is the time to be more focused on substituting imports with local alternatives in production or service value chains across sectors. This would enhance competitiveness and sustainability of enterprises. This should happen in production, services and consumption.” He, however, warned that 2015 was not a time “for government or its agencies to impose new burdens on the private sector in the form of taxes, fees and charges.” Technology will have more impact on lifestyle of Nigerians in 2015 There is consensus of opinion among technology experts that technology will influence the work and lifestyle of many Nigerians in 2015. According to experts, the convergence of mobile phones and computer implies that mobile gadgets are combining several functionalities that you would never have thought would be a reality 20 years ago. Almost, all the smartphones and tablet computers being manufactured, besides having voice telephony, are data, emails and Internet-enabled. Today’s smartphones, tablets and Phablets do much more than what the desktop does for you in the office. In fact, the high-end smartphones, tablets and wearable devices contain so many lifestyle functionalities like reading the heartbeat, checking how many kilometres you have walked or run, monitoring pregnancy and the like. LEADERSHIP spoke to some key players in the Nigerian information and communications technology (ICT) industry on the types of IT gadgets they use, and how and it has made life easy for them. Sikiru Shehu, registrar/chief executive, Computer Professionals Registration Council of Nigeria (CPN) I am currently using a Samsung S5 tablet phone, an Android mobile operating system. I gave my wife my Samsung S4 when I bought the S5. The S5 is like a mobile office to me. This particular phone is very useful because I use it to do so many things. The other phone I use is the Blackberry mobile device. It makes life easy for me. I check my emails, send emails, book air flights and it allows me to reply important emails, which makes life easy for me. Whenever I go for conferences, seminars and workshops and I need to prepare reports, I use my laptop and iPad. Whether I am in the car, in the office or in the gathering of like minds, I use my iPad or laptop. I currently use the latest HP laptop which somebody gave top me as a gift. Before I got it, I had been using made-in-Nigeria laptop brands from Zinox and Omatek which are very useful and durable. As a believer in local content, I will always go for the latest models of laptops once the Nigerian computer makers bring into them into the market. Engr. Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON) I have a liking for all mobile phones. My experience shows that they are all the same. If you check all the latest mobile devices in the market, you can see that they have basically the same functionalities; the difference is that they come in different packaging and operating systems. I have the touch screens, be it iPhone, Android and Blackberry. Depending on where I am, I use any of them. I don’t have a special preference for anyone because I am inquisitive to know what makes the phones special in terms of functionalities, battery life and quality of service, so I purchase them. I use a tablet when I am on the road. As for the laptop, I use an Apple Mac for my work in the office. Umar Abdulhamid, director, Corporate Communications, NIMC I use HTC MI8. I chose it because of its functionalities. It gives me better graphics. As a communicator, I do a lot of photography and writing. I have to communicate with my superiors and colleagues whether they in or out of office. The phone’s voice quality is superb. The usability is very friendly. The only shortfall is that the battery life is very low which I assume may be due to many apps that are connected online on the phone. Apart from this, HTC MI8 functionalities are second to none. I use it to check emails and do browsing. I also like Apple iPad because of its large screen and quality. Shina Badaru, Founder, Technology Times I will refer to myself as a conservative when it comes to gadget usage. Though I grew up in the days of the desktop, I witnessed the digital revolution in Nigeria. I am more into Apple MacBook Pro. I like it because it is flexible, fantastic with graphics and has longer processing power. It is less vulnerable to malwares and viruses compared to other competing operating systems (OS) in the market. For mobile phones, I use Windows Lumia 630. I use mobile phones just like everybody to check my emails on-the-go. I also use Maxtel, a made-in-Nigerian mobile phone which I value very highly. I have been using it for over six months now. The Maxtel phone is very rugged and reliable and has fantastic battery power. Technology gadgets today are now intertwined with humankind. They have become lifestyle tools that you see people attach a lot of importance to them. Just like your car, technology gadgets have become utility tools, instead of status symbols it was many ago. Today, we rely on them for virtually everything, ranging from checking time, weather reports, news, emails, voice telephony, etc. Tourism: Duke, Usman, Adediran Urge Repositioning as Alternative Source of Revenue The impact of falling oil prices has led experts point in the direction of the tourism sector as an alternative source of revenue generation. Some experts who spoke to LEADERSHIP said repositioning tourism as a viable alternative to oil would require the enactment of requisite legislation and appointment of professionals to key positions. Some of the experts that bared their minds on the state of the tourism sector include the minister of Tourism, Culture and National Orientation, High Chief Edem Duke; director-general, National Commission for Museums and Monuments (NCMM), Mallam Abdallah Yusuf Usman; president, International Council of African Museums (AFRICOM), Mr Nath Mayo Adediran; president, Hospitality & Tourism Management Association of Nigeria (HATMAN), Mallam Aliyu Badaki Ajayi; organiser, Abuja Bantaba and Akwaaba African Travel Market, Mr Ikechi Uko and National President of Institute for Tourism Professionals (ITP), Chief Abiodun Odunsanwo. They submitted that there was the need to revisit the Tourism Master Plan which was inaugurated six years ago, noting that 54 years after Nigeria attained independence in 1960, the classification of hotels and tourist sites had remained undone. Speaking with LEADERSHIP, the minister of Tourism, Culture and National Orientation, High Chief Edem Duke, argued that the classification of hotels and tourist sites was the mutual responsibility of Nigerians since the assets were located within the states. “Classification of hotels and tourist sites requires a collective responsibility of each and every one of us. Very many of these assets are located within the State and it’s important for us to collaborate with the State in certifying these Resorts as well as in identifying the quality standard,” said Duke. He was optimistic that professionals at the Hospitality and Tourism Stakeholders’ Forum, organised by the National Institute for Hospitality and Tourism (NIHOTOUR), would reach a consensus on the classification which is likely to commence in 2015 as a major part of their mandate. Disclosing the intent of the federal government on listing national monuments, Duke added, “The federal government has identified 100 monuments around the country and we are already trying to engage with the private sector to see how we can invest in their restoration because if we don’t have these monuments, definitely, a lot of our history will go away in years to come.” The minister gave the assurance that transformation was underway in the sector in terms of human capital development, infrastructural development and the restoration of national heritage, and insisted that they would be form a major initiative in the transformation agenda. For his part, the director-general, National Commission for Museums and Monuments (NCMM), Mallam Abdallah Yusuf Usman, noted that the federal government, through NCMM, had identified more tourist sites, historical sites and monuments for protection. He stressed that a number of museums had been opened while exhibitions were carried out abroad, which helped in laundering the image of the country. “The way forward for the industry in 2015 is to sustain the game by coming up with imaginative programmes that will capture the attention of policy makers, political leaders and the general public, intensify action and improve on capacity building as well as strengthening the institutions, the administrative and legal frameworks and getting quality staff who can push the initiatives forward,” said Usman. He enumerated poor perception of the importance of museums and monuments by the public and low budgetary allocation as major setbacks to the sector. On the repatriation of Nigerian artefacts taken away by colonial masters, he added, “As I keep saying, the issue of repatriation is both legal and political. We are exploring these two avenues and we are engaging the countries that kept the artefacts in their museums and through the process, we have succeeded in repatriating quite a large number this year. We have in our custody over 100 of such artefacts that have come in from Europe and United States within the last three to four years.” He said that the NCMM had contributed in growing the economy by providing, developing and managing tourist destinations such as museums, heritage sites and monuments, adding that the reason for developing the sites was to attract more investments and help in growing the economy. Original link Read More goo.gl/zZrgYD (y) ✍comment ☏share
Posted on: Tue, 30 Dec 2014 02:02:05 +0000