Volume 1

Issue 1, July 2017

HOW...

DO WE INTERPRETE ‘MADE IN NIGERIA’?

LEATHER BUSINESS in Nigeria

SUPPORTING our automobile industry

TAX INCENTIVES a boost to local patronage

PORTRAIT

of a Nigerian company

TENNIS:

Nigeria on the rise again!

Business

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Andersen Tax Debuts in Africa Andersen Tax makes its debut in Africa as the former Partners of WTS ADEBIYI & Associates, a tax firm based in Nigeria, adopt the Andersen name. The firm, which joined as a collaborating firm in May of 2017, has locations in both Lagos and Abuja. This week they become a member firm of Andersen Global and will operate under the name Andersen Tax. “The adoption of the Andersen name is the logical next step in our expansion efforts in this key African market. Nigeria's demographics make it one of the fastest growing economies of any country in the world and it is considered to be the gateway to Middle and Western Africa. Our growth here is part of a larger strategy to increase our footprint in the region,” said Andersen Tax CEO, Mark Vorsatz. “In addition, I have seen the dedication to premier client service that Olaleye and his team have demonstrated since they joined us a few months ago, and they truly embody the values that our organization represents.”

Under the name Andersen Tax, the firm will continue to provide tax and legal services for international, multinational and individual clients in Nigeria, West Africa and globally. Their areas of specialization include Tax Advisory & Regulatory Services, Transfer Pricing, Energy & Infrastructure, Consumer & Industrial Markets, Family Wealth and Private Clients, and Tax Adjudication/Litigation.

Lead Partner of Andersen Tax in Nigeria, Olaleye Adebiyi, added, “I look forward to further strengthening our connection with the Andersen team as our relationship becomes more formal.

As a former Arthur Andersen professional, I appreciate the importance and impact of working with like-minded partners around the globe with whom we share a commitment to stewardship, transparency and providing seamless service internationally.”

Andersen Global is an international association of member firms with over 2,000 professionals and a presence in more than 64 locations worldwide.

7th Floor, Heritage Place 21 Lugard Avenue Ikoyi, Lagos, Nigeria 3rd Floor, Yobe Investment House 1004 Gimbiya Street, Off Ahmadu Bello Road Area 11, Abuja FCT 0700TAXADVISERS

www.andersentax.ng

TABLE OF CONTENTS July 2017

Publisher/Editor Marie-Therese Phido Design Advisers Bolaji Iwayemi Ifeoluwa Sopeju Graphic Designer Martin Ekwe Photography Bobo Iso

Editorial Board Chairman Osten Olorunsola Vice Chairman Catherine Bickersteth Members Gbayode Somuyiwa Jacklyn Awobawikun Usen Udoh Stella Ojekwe Marie-Therese Phido Ifeanyi Uddin Address 20 Udi Street, Wema Terrace, Osborne Estate, Ikoyi, Lagos

From the Editor

5

How Do We Interprete the “Made in Nigeria” Vision and Its Framework?

6

Tax Incentives As a Tool to Boost Local Patronage

9

Supporting Made In Nigeria Vehicles¸

14

Portrait of a Nigerian Company

18

Leather Business in Nigeria

22

Necessity is the Mother of Invention

31

Your Medic Abroad is a Nigerian

34

Nigerian Tennis is on the Rise Again

37

Events

41

5

r o t i d E from the

!

W

elcome to the first edition of BOUNDLESS, a business and general interest magazine. The inspiration for BOUNDLESS was fired by the realization that there were no business magazines in Nigeria. Each edition of BOUNDLESS will focus on thematic trending business issues. Our objective is to ensure that our readers have access to research and expositions on how these issues can be addressed and evaluated.

Our driving force and motto as a magazine, is that businesses are boundless. The only thing holding us back from exceling is our preconceived limitations, which we should free ourselves from. Let’s unlock the bounds holding us back and soar!

In this edition, we look at the theme “Made in Nigeria”. We start by challenging the policy or the variants of the slogan and ask what “Made in Nigeria” really means, especially when the term is juxtaposed in its usage in comparison with other jurisdictions? We are asking this question in order to provide clarity and a proper interpretation of the terminology, the vision and its framework. We then look at tax incentives and how these taxes levied should be utilized to boost local patronage.

Supporting Made in Nigeria Vehicles, is extensively discussed, given the fact that government has incentivized the automobile industry by promoting various incentives to encourage the sector. The question has been, is enough being done to make the industry as productive as those in other climes? Is the level of production

optimal? Where are we in the production curve?

Our cover story features the leather business in Nigeria which has taken on a life of its own. Leather goods manufacturers can now compare their output with the best internationally. The Lagos Leather Fair was an eye opener to many Nigerians. Yours truly has vowed to no longer patronize foreign suppliers for all of her leather requirements. In this edition, we feature three established and internationally promising designers in this industry who have shared their designs and stories with us.

I hope you find this edition beneficial. It is our desire to keep the fire on the issue of “Made in Nigeria” burning until it becomes a norm. Let me have your thoughts and let’s work together to make BOUNDLESS the go to magazine for thematic business issues.

Let’s keep soaring!

Marie-Therese Phido Editor/Publisher mphido osat2012 marie phido marie-therese phido

6

STRATEGY AND OPERATIONS

HOW...

do we interprete the “Made in Nigeria” vision and its framework?

W

hen goods are introduced into the stream of international commerce there are various factors that should be considered, one of which is the appellation indicative of the origin of the goods. Designations such as “Made in Nigeria”, “Made in USA”, Made in Turkey” etc. are to be seen in light of complying with the Rules of Origin set by the World Trade Organisation (WTO) - an intergovernmental organization which regulates international trade. Rules of origin are used to determine the country of origin of a product for purposes of international trade.

These rules exist for one or more of these purposes; quotas, anti-dumping, anti-circumvention, statistics, origin labelling and/ or tariff concessions.

The implementation of these rules has been ceded to the local authorities of each member state for interpretation and application. It is therefore Nigeria’s responsibility to interpret and implement these rules as it applies to Nigerian made products that will be traded internationally. Successful implementation of these rules in Nigeria will no doubt provide the much needed foundation on which the building blocks for delivering on the “Made in Nigeria” vision will be laid.

A few pertinent questions arise when we begin to evaluate how successful the interpretation and implementation of these rules 7

have been in Nigeria.

What really is “Made in Nigeria” and when can we assign that label to a product?

Is there an acceptable definition and common understanding regarding this definition?

Has this definition been well articulated and if yes, has it been communicated to all? Is this definition publicly known and available? What are the differences between “Made in Nigeria” and “Assembled or Built in Nigeria” products? What is the role of the Made-In-Nigeria Products Promotion Organisation (MINPPRO)? Is the drive towards passing a bill aimed at encouraging the purchase of locally made products the way to go? Finding answers to these questions is not so straight forward as presently the answers where available, could be open to many interpretations. There appears to be a lack of clarity regarding the roles, interfaces and interdependencies that exist between the various institutions that should be or are involved in this implementation process. A high-level assessment of the progress made to date reveals that the articulation and communication of definitions, roles and responsibilities still requires greater attention.

While the United States (US) may not be the best example at this time, given President Trump’s increased drive for protectionism as opposed to globalisation, the “Made in USA” label is well protected by the

Federal Trade Commission (FTC). For an item to be labelled as “Made in USA”, it must be made within the United States’ borders from “all or virtually all” American parts, that is with parts also made in the US. FTC’s website provides further clarification by stating that, “all or virtually all” means that “all significant parts and processing that go into the product must be of US origin. That is, the product should contain no or negligible foreign content. “Assembled” or “Built” in America is said to technically not be the same as “Made” in America.

The FTC provides additional requirements for automobiles and textiles, and items made from fur and wool. Clothing and other textiles are permitted to have a “Made in USA” label as long as the item was cut and sewn in the US and the fabric was created in the US, regardless of where the fibre was originated or where the yarn was spun. For cars anything containing 70% US/Canadian parts or more can be rounded up and called 100% US/Canadian.

On the other hand and given that the ultimate aim of this drive is that “Made in Nigeria” products are fit for export where competitive advantage exists, it is perti-

nent that we evaluate what is being done in this regard.

The Nigerian Export Promotion Council (NEPC), on its website, provides detailed information and guidance for would-be exporters. In addition, the NEPC and The Commonwealth Secretariat have jointly set out “A Framework of Export Strategy for the Federal Republic of Nigeria (2005-2010)”.

This document prepared by Theodore Markham is available on the NEPC website.

The categories of institutions that have a part to play were identified as: i. those engaged in direct export promotion as their core function; e.g.

NEPC, Association of Nigerian Exporters (ANE), Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industries, Mining & Agriculture) NACCI8

MA and the city chambers of commerce; ii. those whose core functions impact directly on the performance of the export sector e.g. the Federal Ministry of Commerce, Standards Organisation of Nigeria (SON), Nigeria Agency for Food & Drugs Administration and Control (NAFDAC), Nigerian Customs Service, Nigerian Plant Quarantine Service, etc. iii. Institutions that engage in direct export training such as MULTIMIC Export Academy, Institute of Export of Nigeria, Nigeria Institute of Marketing, Overseas Export Training Institute, etc.

There is however no further information regarding the progress which has been made towards the finalisation and implementation of this framework which is referred to as an initial stage of a national consensus

building process on how to prosecute the non-oil national export development and promotion effort. One might therefore not be wrong to conclude that the inability to convincingly assert that the nation continues to make steady progress towards the realisation of its objective is due to the need for point responsibility, clarity regarding the roles and responsibilities of each institution involved in the process, definition of timelines and key milestones and continued focus on set objectives.

Presently, globalisation is

turers that venture outside the US are dis-incentivised and/or penalised. The trend is the same in the European Union and Australia as discussions now centre on re-evaluating free trade in a bid to assess the overall impact and promote the re-balancing of economies.

With examples drawn from countries with well-developed industries, one can only begin to understand the import for a nation like Nigeria with pre-dominantly infant industries. Survival and ultimate growth of the nation’s infant industries

Survival and ultimate growth of the nation’s infant industries is largely dependent on the ability to adopt a protectionism approach in the short to medium term. being confronted by protectionism and economic fragmentation as world leaders are beginning to question; individually and jointly, the benefits which globalisation has accrued for their nations. Examples are rife in the United States (US), European Union (EU) and Australia. Top on President Trump’s agenda is the drive for local manufacturers to be incentivised while manufac-

is largely dependent on the ability to adopt a protectionism approach in the short to medium term. While it has also been proven that trade protectionism is disadvantageous in the long run, we must encourage all to “Buy Nigeria to Grow the Naira”, “Promote Local Content”, and other such targeted initiatives aimed at ensuring that “Made in Nigeria” products are not just utilised 9

locally but meet set quality standards that enable export.

Given the unfolding global economic landscape, understanding what?, when?, how? and who? to promote “Made In Nigeria” products will deliver a critical path to promoting sustainable and steady growth for Nigerian industries and the much-needed alternative to non-oil earnings for the economy. This should definitely be considered within the context that if the backlash against globalisation results in continuous anti-free international trade and investment measures, there will be a clear and present danger most especially for a nation such as ours. There is therefore no better time than now to re-validate our overall objective and strategically focus on the realisation of the “Made in Nigeria” vision.

Ebunoluwa Bolodeoku is a Strategy and Operations expert. ebolodeoku@gmail.com

TAX AND REGULATION

TAX INCENTIVES A Tool To Boost Local Patronage

N

igeria as a developing nation continually attempts to open itself for business with the rest of the world in a bid to increase its potential and outlook. Through the second half of the twentieth century and leading up to the twenty first century, the country has constantly looked outwards “world powers� and other developed countries for knowhow, finance and technology necessary for developing and attaining beneficial use of the abundant natural resources it is endowed with. For this purpose, the country has established and refined various fiscal measures to attract investors, promote production and stimulate growth.

As economists suggest, the performance of an economy can be measured over

time in terms of the right mix of its consumption, investment, government expenditure and net exports.

These parameters are driven, not only by foreign direct investments (FDI) but also substantially by the performance of locally produced goods and services. Hence, an economy is gradually developed by the increased value it creates and retains.

While FDI may result in immediate response to dearth within certain capital intensive industries, in the long term, these calls do not lead to sustainable development, as foreign investors often carry out activities which are disproportionate to the reason for their involvement in the first place. This includes, repatriation of capital and capital increase, employment of foreign personnel and minimal transfer of technol-

10

ogy. In a way, FDI is designed to enable an economy remain constantly dependent on the prospect they offer.

It is therefore imperative that initiatives that provide long term value to the economy are explored and promoted. One of these key initiates is the promotion of local production and patronage of locally-made goods.

Based on analysis and commentaries by experts, increased patronage of Nigerian made goods and promotion of local industries is a sustainable measure which if implemented, will provide the much needed stability in the Naira and per capita income of the populace.

Although, clamor for patronage of local goods have been made over the years, it has been given little credence in terms of continuity. Past governments have

introduced similar initiatives including the Indigenization Policy of 1972 which was effected through the Nigerian Enterprises Promotion Act, measures by the Obasanjo led government in 1978 requiring patronage of made in Nigeria goods. The Indigenization Policy required at least 40% ownership by Nigerian citizens and associations in foreign owned companies. Although the legislation is no longer in force, it brought about the establishment of some indigenous companies which exist to date including the famous UAC of Nigeria PLC which became 100% Nigerian owned by 1994. The survival of the company is a testament to the sustainability of locally owned companies and gives a glimpse of what we can expect when local industries are promoted.

The “Buy Nigeria to grow Nigeria” mantra, albeit an age-long vision of the Nigerian government, has been given renewed stimulus by the current administration. In June 2016, the Senate passed the Public Procurement Act (amendment) bill 2016 into law.

Similar to the defunct Nigerian Enterprises Promotion Act, the amendment seeks to steer government expenditure towards Nigerian made goods, except in situations where the local equivalent is not available.

While the above measures are considered laudable, government needs to consider a different approach to achieving its objectives.

Perhaps a more self-driven measure which naturally creates the desire to consume Made in Nigeria goods rather than a coercive measure which achieves performance driven by fear for non-compliance. While the latter can be truncated by change in policy 11

direction by another government as we have seen in the past, the former ensures a culture where Nigerians are proud consumers of “homemade” products. Hence, government can introduce incentives that promote considerable local participation and one way to achieve this will be to develop fiscal incentives that are beneficial to the Nigerian owned companies. An example from China, was the promotion of an “export culture”: geographic targeting, sectorial targeting, a liberal foreign investment regime, liberal provision of financing and tax incentives, which include: • Longer tax holiday from corporate

income tax • Extra tax benefits from tax profits

reinvested in export oriented or tech

nologically advanced projects; and • Further reduced land-use fees, priori

ty in obtaining utilities, transportation

and communication facilities.

While examining the effectiveness of tax incentives that have been introduced in Nigeria over the years, it has been observed that most of Nigeria’s tax incentives have been packaged to attract investors who display a willingness to invest huge capital sums. Some of these incentives include increased investment deductions, exemption of certain profits, suspension of tax for certain

production and reduce import dependency, a fiscal Hence, government can introduce approach that incentivizes the local industry has the poincentives that promote considerable tential of encouraging local local participation and one way to businesses. Granting local achieve this will be to develop fiscal manufacturers benefits in the form of tax incentives will incentives that are beneficial to the encourage local businesses Nigerian owned companies. to expand capacity which will consequently result in periods, grant of tax credits, somewhat disturbed at the the employment of Nigerians amongst others. various activities employed and increased investment in The issue with some by new and existing invesresearch and development of these incentives is that tors to maximize benefits de- for better quality products the long lasting effects are rivable from tax incentives and cutting edge technology. usually not well-thoughtand the supposed benefit to Furthermore, local manufacout which eventually lead the economy.Government is turers performing at imto abuse and discrimination. now displaying an attitude proved capacity, will result For example, the Companies that connotes a shift from in increased request for local Income Tax Act includes a the traditional approach services, potentially growing provision which exempts of granting incentives to the service industry. companies with over 25% companies. This change in For local industries to foreign equity participation approach is evident in the perform at a level that is from paying minimum tax. proposed petroleum induscomparable to other deWhen closely examined, try reform bill where the veloped nations, a massive this incentive discriminates government has proposed increase in the spending against indigenous compaan outright replacement of power of local industries is nies and somewhat puts for- investment based model for to be encouraged. Tax inceneign companies at an undue granting incentives in the oil tive schemes strategically advantage. and gas industry with a pro- developed to give increasing A tax incentive program duction based model. Also, tax relief to companies as should be pursued only if it the proposed review of the investments increases, will ultimately leads to econom- entire pioneer relief scheme go a long way to encourage ic growth and expansion of by the National Assembly companies to expand further the overall tax base. While are further indicators of the and spend more. While the government has experienced mood of the Nigerian govcurrent tax laws provides reasonable success in attract- ernment towards granting some form of investment ing investors and growing fiscal incentives to compaallowance to companies who the nation’s tax base,the nies, most especially those invest in capital items, this effectiveness of tax incenthat are foreign owned. has seemingly not encourtives should be carefully Amongst the various aged local companies to take weighed. In the last 3 years, approaches explored by the on capital intensive projects government has become government to grow local as these incentive packages 12

costs and does not achieve the much needed advantage.

are oftentimes viewed as unattractive and unattainable.

The ability of government to meet its economic goals through tax incentives is dependent on the parameter on which such incentives are based.

Government can develop tax incentives in any one of the following ways or a combination of all three in increasing local patronage:

Investment-based incentives: This tax incentive approach is common in Nigeria’s legislation. Here, tax reliefs are tied to volume of investments undertaken by companies. Investment allowance, rural investment allowance, petroleum investment allowance, investment tax allowances and investment tax credits are all types of investment-based incentives. The challenge with investment-based incentives is that they usually envisage huge capital investment

Supply-based incentives: Under this approach, the level of tax relief available to a company is dependent on the volume of supply made.Supply-based incentives have the potential to create a win-win situation for both government and investors, due to the fact that which local industries may the incentive is based on not have and may not be how well a company is able able to compete with their to encourage the consumpforeign counterparts. They tion of its products. This also do not guarantee a win- way, investors are motivatwin situation for investors ed to provide high quality i.e. an investor may invest goods which are capable huge capital outlay in order of competing with foreign to benefit from an incentive equivalents and government but may not be able to reis able to tax the increased coup its investments. revenue from more supplies.

While there have been studProduction-based inies linking tax incentives centives:Under this apto increased foreign direct proach, tax incentives are investments, it may be diffitied to production levels cult to establish a direct link achieved by companies.The between tax incentives and outcome of incentives of this supply since patronage of nature is that they are aimed goods are significantly deat improving the volume of cided by customer behavior Made in Nigeria goods in which are outside the govthe market but lack emphasis ernment’s control. on actual patronage of these If government succeeds products. So while a produc- in getting the needed invester or manufacturer of locally ments and is able to boost made goods may embrace a production to a level that loproduction-based incentive, cally made goods are availhe or she is not guaranteed able for purchase, customers to make sales where there still need to patronize these is no increased patronage. companies by purchasing Again, the investor ramps up the products. Hence, a stra13

tegic tax incentive initiative tied to the level of patronage achieved will provide sufficient encouragement for Nigerian manufacturers to invest further in promotions, advertisements and other pre-sales activities necessary to get the needed patronage for locally made goods.

One criticism of successive Nigerian governments have been the low patronage of local goods and services by government ministries, parastatals and the leadership. An enactment mandating that locally made goods and services receive significant patronage from ministries and other government establishments, will further augment the patronage of Nigerian-made goods and services.

Nigeria is a country known to consume more than it produces with heavy reliance on imports to satisfy its consumption needs.

Consequently, the country has consistently maintained a negative balance of trade

in recent times. Increased patronage of locally made goods and services will determine the country’s ability to rectify this trade deficit position.

While we agree that the right structures and infrastructures are needed before local businesses can thrive, a well-planned and executed tax incentive package will go a long way to give the necessary impetus to local manufacturers and service providers.One thing to consider is that the benefits from a tax incentive program as envisaged may not be immediate, however the possibility of achieving a broader tax base and GDP can have a long lasting effect on the economy. Furthermore a successful incentive program will improve homegrown expertise and encourage local capacity building which will halt the rapid growth of unemployment plaguing the economy.

Patronage of Made-in-Nigeria goods should be 14

encouraged across all the industries of the economy, even the very capital intensive ones. Imagine a Nigeria with several other UACs and Dangotes across various industries. The potential for the growth of Made-in-Nigeria products are enormous with a huge market.

It is therefore high time our government starts looking inwards and implementing targeted policies in place to bring about the needed change.

Yomi Olugbenro is a Partner at Deloitte Nigeria and Head of Tax for Deloitte West Africa. yomi.olugbenro@deloitte. com.ng

Supporting

Vehicles ʻMADE IN NIGERIAʼ

E

verywhere in the world, the automotive industry is a key part of the economy. Industry statistics indicate that the design, manufacture and sale of automobiles have the capacity to boost the economy, address unemployment, increase exportation and drive growth of other sectors like glass, plastic, petrochemicals and others.

Analysts are of the opinion that if the global automotive sector were a country, it would be the sixth largest world economy, accounting for a global turnover of almost €2 trillion, boasting of investment in excess of €84 billion in research, development and

production and more than 50 million jobs in the shortest period.

With the National Automotive Industry Development Plan (NAIDP) launched in 2013 by the government of Nigeria, expectations were that the country would join the rest of the world to emerge as a vehicle manufacturing country.

“The thrust of the national automotive policy is to ensure the survival, growth of the Nigerian automotive industry using local, human and material resources. This is with a view to enhancing the industry’s contribution to the national economy, especially in the areas of transportation of people and goods.”

15

Basically, the benefits of the initiative is to boost manufacturing activities in Nigeria, develop the industry as a key contributor to the Gross Domestic Product(GDP), create jobs, conserve scarce forex, develop local skills and competency for production and after sales, accelerate technological development and technology acquisition, establish integrated industry and promote standardization and rationalization of the Nigerian automotive industry as well as increase private sector participation in the establishment of the automobile industry.

To make the plan feasible, government had lowered import duty to between zero

to 10 per cent for the importation of knocked down parts and incentives that will encourage people to assemble vehicles locally, 70 per cent import duty and levy for fully built vehicles.

Already, comatose plants such as VON in Lagos, ANAMCO in Enugu, PAN in Kaduna, Leyland in Ibadan and over 41 automakers – including Innoson, Ford, Nissan, Toyota, Hyundai, Kia have started building vehicles from completely knocked down parts (CKD) and semi-knocked down parts (SKD).

However, stakeholders

weakened the naira against major currencies combined to shrink the market to an all time low in 2016, as most of the plants could no longer continue full operations.

The sector had estimated 30,000 total installed capacity yearly if the plants were functioning at optimum capacity, but the Chairman of the Auto and Allied sector group of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Oseme Oigiagbe, regretted that three years after the introduction of the new auto policy, significant achievements have not been recorded.

finance groups led by Rand bank –would have sparked up consumer demand and eased vehicle acquisition opportunities”, but it is yet to take off.

He also blamed the slow implementation of the policy on poor infrastructure, high interest rates, as well as poor regulation.

In his estimation, “until the auto industry is made a priority of government and a SPV (Special Purpose Vehicle) is set up to drive its development agenda, the value chain potentials may remain elusive.

PWC Nigeria was

say rising inflation, lack of financing scheme, increase in tariff for both fully built (new) and Tokunbo vehicles and the disparity that

To Oigiabge, the policy has been more of ‘motion without movement’, adding, “Vehicle finance scheme programme with consortium

optimistic that Nigeria has the advantage to become Africa’s biggest automotive hub considering the country’s population and increas-

16

ing middle-class with an average monthly income range of N75,000-100,000 but only South Africa can be said to be a top destination for vehicle manufacturing in Africa.

The sector in South Africa has the capacity of churning out over 600,000 vehicles every year. The country is also one of the largest bases used by global automakers to reach markets in Africa, Europe, South America, Australia, North America, and the Middle East.

In a short time (19992015), South Africa’s determination to overhaul its auto sector, already yielded GDP of 7.5 per cent, total employment of 320,000 (manufactures, components, dealer network), total auto value chain impact on employment of approximate 700,000 jobs, an investment of $750 million in 2015 alone and exports (vehicles and components) of $11b in 2015 alone.

Organisations such as

RT Briscoe, Leventis, UAC, SCOA and others started the development of the automotive sector in Nigeria in the 60s through the menial establishment of automobile assembly plants using completely knocked down (CKD) or semi

Peugeot Automobile Nigeria ltd (PAN), Kaduna; Volkswagen Nigeria ltd(VWON), Lagos; Anambra Motor Manufacturing Company (ANAMCO), Enugu; Styer Nigeria ltd, Bauchi; National Truck Manufacturer (NTM), Kano, and Leyland Nigeria ltd, Ibadan, were products

The sector in South Africa has the capacity of churning out over 600,000 vehicles every year. The country is also one of the largest bases used by global automakers to reach markets in Africa, Europe, South America, Australia, North America, and the Middle East. knocked down (SKD) parts.

In the 1970s the Federal Government entered the business when it sealed a pact with a number of automotive plants in Europe to set up assembly plants that would build passenger cars, trucks and light commercial vehicles, using completely knocked down parts.

17

of the agreement. But the companies were privatized in 2007.

Before privatization, the firms had the capacity to churn out 108,000 cars, 56,000 commercial vehicles, 10,000 tractors, 1,000,000 motorcycles and I,000,000 bicycles yearly.

But the assembly plants

could not survive the harsh economic environment, orchestrated by many factors, which led to their to collapse.

Component builders, including Dunlop and Michellin also left, though they had established Rubber plantations across the country to source raw materials locally. While the plantations are still in existence, they only produce raw materials to service factories outside the country.

Under the new policy, the National Automotive Design and Development Council (NADDC) expects the sector to generate 70,000 direct jobs, as well as employ about 210,000 indirectly, but experts believe that

it is currently not feasible as the sector cannot present evidence of local content.

Should Nigerians support a vibrant local auto industry, experts expect the sector to boost manufacturing activities in the country, contribute to the GDP and create jobs, conserve scarce forex (foreign exchange), develop local skills and competency for production and after sales, accelerate technological development and technology acquisition, establish integrated Automotive Industry (provision of clusters), standardize and rationalize the Nigerian automotive industry, increase private sector participation in the establishment of the auto industry and create 18

a conducive operational environment through the introduction of appropriate fiscal policies and monetary incentives.

With the emergence of the General Motors’ Senior Creative Designer, Jelani Aliyu, as the new Director General of NADDC, most Nigerians anticipate the full operation of the local assemblage of vehicles and the eventual emergence of Nigeria as a vehicle manufacturing country.

By Kingsley Uyojo.

Kingsley operates in Nigeria as a business journalist. He is interested in data journalism and has a passion for cars. uyojokingsley@yahoo.com

Portrait

PEOPLE/ORGANIZATIONS

of a

I

NIGERIAN COMPANY

began my career in a Nigerian company.

What mental image does that give you about the nature of the organisation? What are your immediate expectations about the quality of the leadership, the environment, the brand management of the firm and its perception in the market? How about your expectations of the quality of the firm’s work and its people, their attitude to customer service and client engagement? Without giving you much information about any specific company, based on your personal experiences or beliefs, you painted an image in your mind of a company and people you have never met based on the descriptor: Nigerian. My guess is that your thoughts of the said company were not complimentary.

Made in Nigeria is having a moment right now, experiencing a renaissance on the product shelves in store and online like we have

not seen in at least a decade.

These are exciting times for national pride and patriotism as a consumer with appealing Nigerian products from packaged food to high fashion and beyond. It is also a good time to think about the Nigerian company, what it has been and what it could be in future.

There is a good reason for your decision to form that perspective about the unknown company in my opener based on the fact that it is, to use the term “Made in Nigeria”. Organisations tend to be heavily influenced by the culture within which they are domiciled. If you have ever worked in the Nigerian arm of an international company that encourages all employees to address each other by their first name up and down the hierarchy, you understand this. Many of those companies find a way around it to bake in the culture of seniority in many Nigerian tribes where an elder must never be addressed 19

by first name.

And so you hear all sorts of nicknames born not out of endearment but necessity: “Aunty J” though of no relation, “Mr. T” who is not a wrestler, “Sir Richard” who was never knighted by the Queen; and all sorts of acronyms – YA, LB, DOA and so on. Both the addresserw and addressed know what is being done, the first name basis policy has been Nigerianised. At its worst the attitude of respecting elders can lead to a situation where leaders are not questioned or challenged in the face of mediocre or wrong decisions. This particular attribute is what is called power distance; the degree to which junior members of a society accept that power belongs to the higher-ups and they should not be challenged. It is one of the dimensions of national culture in Geert Hofstede’s famous cultural dimensions theory in organisational behaviour.

National cultures affect

20

organisational culture. This is very obvious if you have spent any amount of time working across cultures or with people from various

culture on the internal organizational culture must be deliberately filtered and managed to avoid it becoming a negative influence. Ex-

fluenced by the culture of its environment. While choosing to address ourselves on a first-name basis may be irrelevant, the successful

cultures in the same organisation. The impact is well documented in literature about organisational behaviour and leadership. The impact may be good or bad depending on how well the national culture fits with the specific objectives of the company in question. Experts who study such issues have found national culture to have major influence on the culture, practices and performance of organisations including their communication, leadership styles and staff motivation.

However if you are intent on building a good firm that achieves its aims, the impacts of environmental

cellence, a critical requirement for every organisation is arguably culture-neutral.

It is hardly imaginable, for example, that any specific culture is more inclined to provide excellent customer service where client facing employees learn to smile, treat the customer with respect and take a solutions-driven approach when clients complain. The leader must incorporate this into the vision, and the organisation must deliberately build it into its recruitment, training and appraisal processes among others. In other words, the leader can make a difference in how the organisation turns out and is in-

made-in-Nigeria companies of today must imbibe certain attitudes as part of the DNA of their organisations.

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1. A Compelling Vision: This is the main tool we can use in defining who we are in a way that is not constrained by our environment, current realities or cultural limitations. The vision should be bold and ambitious, suited for the future and able to galvanise the hearts and minds of all the organisation’s stakeholders. In the book Built to Last, the authors call this the Big Hairy Audacious Goal (BHAG). It may seem intangible but it is critical

to guide how employees see themselves and eventually how the world will perceive the organisation. The vision must be deliberate in ensuring made in Nigeria does not become an excuse for mediocrity.

and they can take a lot of resources to overturn.

gerian founder’s last name, which fortuitously was English. While there are bad 4. Quality Leaderexamples, there have been ship: The leader must seek many successful Nigerian knowledge and exposure to companies with some used break off any limiting culas case studies by prestigious tural dispositions that will Ivy League business schools. slow down the organisation.

I would argue that the 2. World Class StanLeadership is one of those goal must be for this wave dards: It may be made in of Nigerian renaissance to areas where knowledge Nigeria but it must be world truly is power and the lack translate into Nigerian comclass, both the company and of it spells disaster. Also the panies with staying power its products. Leaders must leader should seek to devel- able to compete favourably strive to define a vision that with their international peers op the leadership skills of will be inspiring and chart a everybody in the organisafirst on local soil, and across path that can earn global re- tion to lessen the burden and the globe. We can achieve spect without the need for a improve the organisation’s that dream of turning the sympathy discount for being momentum towards achiev- description“Nigerian compaing its goals. ny”into a powerful acknowla Nigerian company which is trying its best. It can be edgment of world class 5. Keeping Promises: small and world class. World expertise and professional The company must work class does not imply big, it delivery, if leaders will hard to achieve one hundred buckle up and do the heavy implies done very well. percent integrity in what it lifting required. You may be promises to deliver. Products building locally, but build it 3. Excellent Customand services must be flawer Service: Every external for the world! interaction with the organlessly executed in a bid to isation should leave the develop the organisation’s outsider pleasantly surprised. reputation of reliability and Especially with the poor dependability. There really is expectation everyone seems no better advertisement than to have of a Nigerian coma promise kept. pany; ensuring that frontline The Nigerian company I staff are friendly, helpful and started my career with had smiling can be an immediate these things and more and differentiator for Nigerian the industry gave it full recompanies. Invest in hiring spect enabling it to compete and training the front desk favourably with internationperson, she is your ambassa- al companies in its sector.

By Dotun Adegbite. Dotun holds the CFA Charter, an dor and the first touchpoint Many people were shocked MBA and an Engineering the outside world will have to realise after interacting Bachelor’s degree. with the organisation. First with the firm that it had dotunadegbite@gmail.com impressions truly do matter taken its name from the Ni22

BUSINESS

COVER STORY

Leat h er Business IN NIGERIA

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t is without doubt that the Nigerian leather business can now be compared to globally produced leather goods that will showcase the government’s desire to promote “Made in Nigeria” in a very visible manner. My objective for writing this article, providing a synopsis of the Nigerian leather sector and sharing the stories of three incredible Nigerian designers and their brands: Morin O, Mona Matthews

and 1702, who have taken their art and craftsmanship to couture standards is to join my voice in putting a light on what we have in Nigeria. Everybody needs to know that you do not need to use foreign goods, that are many times substandard in the quality of raw materials used.

The leather goods made in Nigeria are pure leather and handmade. Getting a similar quality abroad is usually prohibitive. One of 25

the many challenges of our leatherpreneurs is that Nigerians do not want to pay for goods made in Nigeria despite the superiority in quality. Let us support locally produced goods and let our products speak for us international. The benefits financially and socially are immense, we must take advantage and pressure government to provide the enabling framework to make the leather business in Nigeria work.

THE NIGERIAN LEATHER SECTOR

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he global market for finished leather goods is estimated to exceed USD 1 trillion. The market is fueled by three main drivers: new products, new fashion trends and the creation and introduction of new applications for leather. The Nigerian leather sector contributes significantly to the global leather market. This fact is virtually unknown regionally, locally and globally. The country being one of Africa’s largest livestock sectors, is known internationally to produce very good quality leather, keenly sought after by internally renowned brands.

According to Comtrade in 2010, Nigeria’s exported leather valued in excess of USD 3 billion, represented 2.9% of global trade at that time. Leather is said to be the second major earner of foreign exchange after Oil. Current records are not readily available, but it is clear from the 2010 numbers that the industry, if properly managed has huge potentials for the country.

The sector provides employment to over 800,000 people in Lagos, Aba, Kano and Kaduna, which are known to be the hubs of leather production in Nigeria. Leather business is job rich as can be seen from the quality of products and the profile of the personalities now making their mark in the industry. Should we consider other indirect employees of the industry, e.g. transportation and other sectors, the number will exceed 2.5 million people. I am sure this comes as a surprise to many people.

Notwithstanding the fact that we now have finished leather goods producers comparable to global standards, Nigeria remains and is seen mainly as a tanning and commodity crust leather producer. The major players in the industry struggle to achieve the standards required to succeed inter26

nationally. Only a small percentage have achieved global standards. The practitioners need to put in place proper research and development, quality standards, price, innovation, logistics, branding and communication

Leather Value Chain Structure

Notwithstanding the fact that we now have ďŹ nished leather goods producers comparable to global standards, Nigeria remains and is seen mainly as a tanning and commodity crust leather producer. Leather business is job rich as can be seen from the quality of products and the proďŹ le of the personalities now making their mark in the industry. in order to entrench best practice and be able to compete with Italy and Spain, known to be global leaders in the leather business.

Government needs to ensure that policies are enacted or implemented to support the industry. Though government has put some policies in place, such as trade policies under the African Growth and Opportunity Act (AGOA), where Nigeria enjoys duty free for leather goods exported to the US. This Act has not significantly impacted the industry just as the Export Expansion Grant (EEG) Scheme has had no bearing.

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An enabled business environment needs to be ensured, which will include policy, regulation and inspection. Market access constraints relating to productivity, capacity utilization, infrastructure, transaction cost, power, chemicals, productive workforce, also have to be set up for the sector to thrive.

On the following pages, we see how our designers have been able to navigate the sector.

Source: GEMS1, the DFID-funded programme supporting the Nigerian Meat and Leather Industry implemented by GRM International Limited

What made you decide on bags and not shoes or clothes?

I decided on leather bags and other leather accessories because of my fascination for the medium of leather- it’s pliability, strength, colour options that can be effected with it and the fact that it can be used to design classic bags. It is a medium for my expression of art. I started with bags because I’m comfortable expressing my creativity in handbags, however I’m working on expressing it further with other platforms.

Maureen Obaweya to the exhale of ideas and designs that are eclectic.

What does the Concept Made In Nigeria mean to you?

It means designed, conceptualized and Made in Nigeria using Nigerian manpower as well as at least 70% Nigerian content.

Are you getting enough support from government in its quest to drive made in Nigeria Products?

This Present Government has been intentional in their initiatives to drive the Made in Nigeria program especialWhat ly for export but a lot more is your design in- needs to be done. More supspiration? port needs to be deployed by getting first hand information My Inspiration and addressing specific needs comes from especially for the few compaa Plethora of my nies that have distinguished experiences and themselves in this area. travels, capHow can Government make turing people the concept Made In Nigeria and places, work for your industry? colours, By bringing out policies architecture, that will create an enabling interpreenvironment for the Leather tation of sounds, in- Industry to thrive. By enhaling all abling and enhancing existing this leads tanneries and making them to 28

However we have employed creative ways and private initiatives to give exposure to our artisans. We have in place specialized training from experts in Nigeria and planned collaboration with the leather research Institute. Plans are also underway for trainings for them outside the country or better still inviting trainers to come and transfer required skills. We are also upgrading our machinery for better and faster production processes.

Are there prospects for Morin. O becoming a sought after item globally and have you attracted global attention?

There are immense prospects for Morin.O becoming also supply the local indus- a sought after item globally judging from the interests, try. We need policies for skill enhancement initiatives requests, and orders placed and the exposure we have and collaborations with received especially during other governments. And of course, addressing the pow- our several participation at the Magic Fair in Las Veer sector challenges. gas, an initiative sponsored by the Nigerian Export ProHow do you tackle your motion Council. We were manpower needs in terms of attracting skilled work- featured in an article in the ers? What kind of training Huffington Post that likened our brand to a growing do you have for them?

Phillip Lim. We were also It’s an ongoing task approached last year by a even though challenging showroom in California that in this country as the work wanted to stock and proethic, mindset and skill mote our brand which led set for the industry is low.

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to our bags being featured in international publications featuring international actresses and models.

How would you describe yourself?

Maureen (Morin) Obaweya is a passionate, creatively driven Designer and Serial Entrepreneur.

Passionate about God, people, and her country Nigeria. A Pharmacist by training, a lover of art from a very young age. A Wife to a supporting husband and mother of two loving teenagers.

What role does your family play and how do you relax?

My husband plays a supportive role. I’m not sure I would have come this far without his support in many ways, My children share their ideas, and sacrifice for my not being around sometimes. Their admiration and support is invaluable. I relax a lot in solitude watching movies and reading inspirational books and I love meditation.

What made you decide to leave your law profession and go into the business of making shoes?

It wasn’t really a conscious decision to leave the law profession. It was more of a decision to start making shoes, which started because I could not find the kind of shoes that I wanted in my size. In addition to this I was also at a point where I wanted to do something new and different from what I had been doing. I was advised to pray about it and when I did, shoemaking came up.

A lady making male shoes, how did your male customers accept you?

My male customers respect my knowledge taste and integrity which I bring into my discussions with them. Remember, law used to be dominated by men so it wasn’t really an issue relating with men. As long as I am knowledgeable about what I do, they are fine with it.

The government is pushing “Buy Made in Nigeria and Save the Naira,” what does this concept mean to

Monalisa Abimbola Azeh

Mona Matthews?

Buy Made in Nigeria and save the naira is a very welcome development for Mona Matthews for many reasons.

First, people associate Mona Matthews with quality already, so the push from all quarters to buy Nigerian made products is giving the brand more visibility.

Secondly, even Nigerians who live abroad are really responding and ordering shoes and bags from us and are so proud to let others know that they were made by Mona Matthews in Nigeria.

Thirdly, the entire industry along the value chain will get a boost. More players supplying all the much needed components, more people learning the craft and generally making things work 30

better.

You make a selection of shoes, male, female and children, how has it been received nationwide?

It’s really amazing. We have customers in all the geopolitical zones. We have delivered shoes to Gombe, Yenogoa, Ado Ekiti, Abuja etc. Nigerians just want good quality.

Are you exporting to other countries? If yes, how have you found it? If not, what are your constraints?

I tried to when I first started, but apart from not having the capacity for huge volumes at that time, I realized that my target market were Nigerians and 17 million of them are living

sible to find these days. So you each have to build your own team and grow together.

Where do you see Mona Matthews in the next 5 years?

Making more beautiful shoes than we did 5 years ago.

right under my nose in Lagos. But with the internet I don’t have to carry the shoes about now, like I said Nigerians in diaspora are buying from us.

How do you source for raw materials, locally or outside the country?

I buy all my components here locally except for some of my embellishments. But

we have some we also make here.

Many people complain about sourcing skilled workers locally. Does this affect the business of making shoes?

Oh yes it does. When people say they want to start designing shoes, my comment is, ready-made shoemakers are virtually impos31

What makes Monalisa Abimbola Azeh, apart from shoes, what are your other passions?

I love meeting people, learning about them and from them. I love traveling and the opportunities that traveling provides to discover new things, experience new culture, cuisine and styles. I love good quality drama and live music performances. I love the stage. I love reading too.

Efe Johnson Tell me about your background.

My name is Efe Johnson. I am the Creative Director behind the brands 1702 london and 1702 Lagos. 1702 is a luxury bespoke leather accessories production company. I didn’t come from a background related to leather in any way. I studied Computer Science and Mathematics with a first class from the St. Mary’s Univesity in the UK and Masters in Computer Network & Securities from the same institution.

Why did you decide to go into the leather business?

I chose to go into leather crafting because of my passion for making things . My footwear production company started as a result of my passion for shoes. I can see a very good pair of shoe from afar . I developed this passion and turned it into a brand. We evolved into making bags and other smaller leather accessories thereafter.

How large is your leather making factory in Nigeria and what are your range of products?

At the moment we have 8 full time artesians and 6 contract craftsmen. We are located in Jakande, on Alpha Beach Road .

How are you developing talent to ensure you have a ready pool of workers?

We take classes every week to help build people in the business and upcoming craft men/women . At the moment we are currently running an apprenticeship course (free) for young school leavers for 1 year to help build their vocational skills before going to the universities of their choice.

You have been in this business for a number of years, 32

how has the industry evolved?

I have been in the business for 8 years and I have seen handmade products grow from mass production to being bespoke tailored to one’s need. From people saying “I’d rather buy from international top brands’ to now saying, “I’d rather buy our local brands.”

The government is talking about “Made in Nigeria” What does it mean to you?

Do you see it working?

The government’s interest in Made in Nigeria is one of the best decisions that will help grow the country.

Leather is a very interesting piece for the growth of the economy. We are beginning to see a high turn around in the exportation of local leather goods. To me personally it has opened the eyes of Nigerians to see how much our quality and precision can be. I see the initiative going beyond words. We just concluded our first leather fair where 50 artesians

showcased fantastic leather products. In attendance were senior government officials who were shocked at the quality of the products locally made on display.

What support systems do you want to see to ensure that the concept works and is not just a slogan?

We need to have support from some banks to empower youths and support

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from government institutions (though that is rare).

We would like to see more people and organizatiosn rising up to support the leather industry. More exhibitions should be sponsored by corporate bodies to encourage craftmen /women. I believe personally we will grow beyond our imagination and I believe also that leather is the new oil.

Where do you see this industry going and how much income do you project the country can make from the industry?

Like I said before, with the new focus of leather in Nigeria, Leather is the new OIL. We are estimating hitting close to $1billion if we keep up the focus and provide incentives to the industry. As a leatherpreneur I will proudly say there is money in the leather industry .

How do you relax and decompress and how does

your family life fit into your business life?

I hardly relax. I find my relaxation in my creativity .

When I am stressed, I simply research for inspiration and go straight to prototyping. Mixing family life and business is not really easy but we try to blend everything as best as we can . To get quality and as one of the top accessory brands in the country, we put in almost 16 hours a day in creating bespoke pieces .

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By Marie-Therese Phido, Sales & Marketing Strategist and Business Coach. mphido@elevato.com.ng

TECHNOLOGY & INNOVATION

NECESSITY IS THE MOTHER OF INVENTION

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n a bid to solve problems and address human needs, mankind has continued to generate and develop new ideas into useful products or services or methods whether for commercial purposes or not.

Problem solving is a response to challenges, which leads to innovation. Great innovators are often those who see opportunities where challenges abound and think solutions or new ways of doing things where others get drained and frustrated.

To many people, Nigeria connotes one word “Wahala”! It is unusual to get into conversations about Nigeria without hearing such phrases like “ Naija dey tough shaa”; Nigeria is so stressful and challenging!

Yet in the midst of all these, are people breaking barriers to overcome the obstacles. The ingenuity of Nigerians can be seen in the speed with which they churn out animated cartoons and videos to mimic and create fun out of even grievous situations in the country. I have always said that if Nigerians can be provided with the enabling environment, they can turn their ingenuity to more positive breakthrough innovations and

commercially viable opportunities. Does it mean we are not innovating? Of course not!

Among many feats achieved, the greatest progress ever recorded by Nigeria in developing its own innovation and content is in the entertainment industry. This includes Music, Movies and Comedy, which by the way has been tailored with strong local content that resonates with our everyday life. Over 2 decades ago, who would have thought our film industry will burgeon into an international brand, Nollywood to become the third largest film industry globally.

Nollywood in over 2 decades, has transformed from the production of analogue low

Despite many criticisms that continue to trail films produced by Nollywood, most watchers agree there has been significant improvement in storyline, content and delivery, which is largely attributed to increased government and private sector support and funding.

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quality films like “Living In Bondage” to the production of digital block buster award winning movies by African standards such as “October 1”; “76”, “Wedding Party” (among several others) which broke Box Office record to gross in N400m within one month of launch.

Despite many criticisms that continue to trail films produced by Nollywood, most watchers agree there has been significant improvement in storyline, content and delivery, which is largely attributed to increased government and private sector support and funding. The coming of Nollywood, significantly reduced the import and consumption of foreign movies in Nigeria and currently in Cinemas nationwide, Nollywood films are said to constitute about 40% of movies watched and contributes about 1.3% to GDP.

stroke that changed the cause of events!

Dateline was June 23, 2015 in the heat of the foreign exchange scarcity and amidst the escalating demand for same. CBN had just released a list of hitherto imported 41 Items not valid for forex with the two prong objective of reducing the demand pressure for foreign exchange in the official winThe same can be said of the dow, while targeting to boost the patronage for “Made in music industry, to the exNigeria” products and local tent that Naija music now dominates functions, parties production. The response and events across Africa and was a huge backlash. For a nation whose constituents globally.

Beyond the entertainment had developed a huge taste for foreign products and beindustry, the incursion of “Made in Nigeria” or “Made came accustomed to imported products; that was considIn Naija” concept into our ered far left. The challenge national consciousness was presented opportunities for catalyzed by the economic recession which culminated people to think creatively on ways and means to develop after the significant fall in and produce local alternaoil prices in 2015. It was tives or redesign existing clear that for the economy products to meet the demand to make head way, we must gap. In one of my blogs on stop our penchant for “EvFacebook I had written that erything Foreign” and learn to consume “Naija” As they the ban on the 41 items can either represent a source of say; It was an opportuniinnovation or source of frusty many interpreted as a tration for different people “Blessing In Disguise” because Nigerians were forced depending on how they perceive and interpret the chalto look inwards as foreign exchange scarcity bit harder. lenge. I was not surprised to see positive responses by Even if people were to do otherwise, a policy action by ever enterprising Nigerians.

One notion stood out as the Central Bank of Nigepeople scampered to identify ria (CBN), was the master viable opportunity options; 36

Aba made products which had hitherto attracted negative brand perception became an attraction as demand increased leading to an improvement in designs and quality to the extent that we now have the “Made In Aba” clothes, shoes and sandals being promoted and purchased by senior government officials. that at a time of economic down turn one can never get it wrong with investing in two basic needs which are Food and Clothing. The cost of quality imported clothes had tripled in price leaving many Nigerians to resort to locally produced clothes.

The good thing was that local designers and tailors got quite innovative with designs. As African Fashion brand gained stronger awareness, African prints took the center stage and the ingenuity of Nigerian designers and tailors were reflected in the exotic and trendy Ankara designs with lace combos that can compete with foreign ones at Red Carpet events.

Aba made products which had hitherto attracted negative brand perception became an attraction as demand increased leading to an improvement in designs

and quality to the extent that we now have the “Made In Aba” clothes, shoes and sandals being promoted and purchased by senior government officials. Despite the primitive production process adopted by the Shoe makers, evidence has shown there has been an improvement as more demand for the products have increased the source of funding that can be utilized for further innovation in the design and production processes.

What lessons can we deduce from these? That innovation follows through a cycle that is rooted in societal pain points and gaping needs that create opportunity for development and commercialization of new ideas into products, services and methods. All these point to the fact that with the right enabling environment and a 37

structured eco-system that comprises Innovators, Investors/Financiers, Researchers & Developers and Government support, Nigeria can leapfrog from an agrarian economy to an industrial and, finally, innovative economy.

By Genevieve Mbama. Genevieve is an Innovative Strategist, Finance & Assurance expert, Writer, Blogger and Economic Inclusion Advocate passionate about Youth Entrepreneurship and Development through Voice, Empowerment & Accountability (VEA) of Constituents. genevieve@gmail.com

HEALTH & FITNESS

YOUR MEDIC ABROAD IS A NIGERIAN!

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hile on a family vacation in New York, my then 4 year old daughter Odinaka developed a mild fever. My husband against my advice insisted that we take Odinaka to the Emergency Room (E.R). We arrived at the E.R of one of Manhattan’s biggest hospitals. After the usual hospital routine and checks, a Nurse Practitioner (NP) told us to take the child home, administer Tylenol, give her lots of fluid and allow her to rest. We were asked to observe her and if the fever lingered on after 24 hours, we should bring her back. “When do we get to

see a pediatrician?’’, my husband asked “you don’t need to see one yet’’ was the very firm but polite answer. ‘’The NP has assessed your child and has made her decision’’.

I being a medic understood perfectly, but my husband didn’t. We tried convincing the NP to let us see a pediatrician for all it was worth.

While this back and forth was going on, a door opened and I heard a familiar voice. “Clara, you haven’t changed a bit. What brings you here?” Emblazoned on her clinical coat, was the inscription: Chinyere UliAttending Child Physician.

Dr. Chinyere Uli was my classmate in medical school 38

in Nigeria. We lost contact after graduating from medical school several years ago.

The world is indeed a small place. Dr. Uli several years ago had joined the horde of medical personnel leaving our shores for better or exciting opportunities outside.

Over the years Nigeria has become a destination for poaching professionals especially medicals. We train highly intelligent, hardworking and motivated doctors.

Unfortunately they leave our shores for greener pastures.

Every year thousands of Nigerians leave for medical treatment to UAE, India, USA and Europe only to get there and to their chagrin

be attended to by “Home grown” Nigerian doctors or nurses. Dr. Osagie Ehanire, Nigeria’s Minister of State for Health stated recently that Nigeria spends over a billion dollars annually on medical treatment abroad.

You can imagine the difference this humongous amount of money would make if it was committed to the local healthcare space in Nigeria.

Recently a recruitment agency from the UAE arrived Lagos Nigeria. Their mission was to recruit medical/dental officers below the age of 35 years who had experience working in public hospitals. They interviewed and negotiated wages or remuneration with the best and the brightest from our government owned hospitals. At the end of the exercise, about forty doctors were UAE bound! What we have now is a case of exporting a commodity only to be in scarcity of same. Nigeria falls way below the W.H.O recommended doctor–patient ratio. Worse hit are the rural areas.

Many would argue that

the reason medical tourism is thriving is due to the otiose state of our health facilities especially those owned by government at the various strata. Let me not talk of the body language of our top government officials including our dear President which speaks volumes about their aversion for receiving medical attention in the country.

Even when Specialists from countries like India and Israel set up practice in Nigeria

in different fields of medicine, patronage is abysmal.

In 2014 a hospital in Abuja presented their efforts at improving the modalities of the management of renal stones known in medical parlance as nephrolithiasis with the launch of hospital equipment aimed at delivering minimally invasive procedures to the large number of patients that have this condition in Nigeria. The management of the hospital was to lament

Recently a recruitment agency from the UAE arrived Lagos Nigeria. Their mission was to recruit medical/dental officers below the age of 35years who had experience working in public hospitals.

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the low patronage of their facility due to the difficulty in raising awareness about the sophisticated and modern services they could offer.

They were hamstrung by a nebulous clause in the Medical Code barring health practices from advertising.

Many are of the opinion that the impact of this restriction affects negatively the ability of health facilities to remain viable and competitive in the market. Perhaps the time has come for repeal or a significant review of this code.

This is an era where differentiation in brands is crucial, and the medical industry should not lag behind.

Another argument for those who subscribe to medical tourism is the skill set of homegrown medical personnel. In a recent newspaper article by Dr. Reuben Abati, titled, the first class galore, he lamented the rash of first class degrees awarded by Nigerian universities. He was wondering how that was

plausible in a country with an education system that is far behind the rest of the world. That argument aside, Nigerian doctors have been known to excel. They are forced to work under impossible conditions (poor facilities and poor working environment) and yet, achieve the unthinkable.

A Nigerian medical team was able to contain and stop the spread of the dreaded Ebola virus. We remember Dr. Ameyo Adadevoh, whose intelligent clinical judgment and quick response picked out the index Ebola case. Dr Oluyinka Olutoye, a Nigerian doctor in the United States of America, took out a baby from the womb of a pregnant woman, operated on it and returned it back to her womb. The first of its kind. Your guess is as good as mine why these kinds of feats can only be performed outside our shores Whether at home or abroad, Made in Nigeria 40

sells, as far as the medical profession is concerned. We look forward to a time when the policy makers and our government will create an ambient environment for a semblance of perfection and excellence in medical practice, healthcare delivery and indeed other spheres of life.

So the next time you get on that plane to seek medical attention in that fancy health facility abroad, don’t be surprised to find a Nigerian seated behind the desk in the consulting room.

Dr Clara Onuigbo is a Medical Practitioner. chiloby@yahoo.com

Gabriel Inyang

Marylove Edward

Nduka Odizor

NIGERIA TENNIS ON THE RISE AGAIN

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hen the Nigeria boys’ team surprisingly failed to pick one of the two tickets reserved for West and Central Africa to the African Junior Championship billed for September in Casablanca, Morocco, Nigeria’s best performer at the team event, Gabriel Inyang knew he was not going to be able to show his skills to the rest of the continent when most of his peers were dazzling in the North African nation.

It was the first time that the tournament would be holding on its own and Nige-

ria was specifically given the hosting right by the International Tennis Federation ( ITF) due to the constant progress it had been making at the junior level despite the fact that as many as five other nations were in line for the same privilege.

Inyang had waited for the opportunity to show his skills to the continent having gone on a month-long training tour to the United States towards the end of last year just to make sure that all expectations were met as Nigeria is the unrivalled superpower of the region – a claim that is attested to by 41

the country’s winning of the last six editions of the regional championships.

Gabriel Inyang played two junior tournaments in Florida and beat all his opponents to be crowned champion. But, on April 27, 2016 when the boys from Ghana and Benin Republic were being decorated with gold and silver medals at the end of an exciting tournament, the 11-year-old was wearing a dejected look.

However, less than five minutes later he was soon beaming with smiles as ITF Referee, Amine Ben Makhlouf announced that one of

the objectives of the tournament was that it was not for only those who qualified but those who showed huge potential, and Inyang was one of those who would benefit from this opportunity.

as a whole after the vacuum created since the glorious days of Nigerian tennis when the likes of Nduka Odizor, Sadiq Abdullahi, David Imonitie were competing at levels that couldn’t be com-

today.

However, there is renewed optimism among tennis stakeholders that Nigeria is about to return to the international stage with support coming by way of some of

Another player that is being tipped to fly Nigeria’s flag high in the game in the next few years is Moses Michael who, in January 2017, moved to the United States where he is matching his tennis and academic skills. He is also enjoying sponsorship by an individual.

Amine is an ITF Development Officer and also the Director of the High Performance Centre in Casablanca.

In fact, it was the Moroccan who noticed the skills of Barakak Oyinlomo Quadri in 2015 and subsequently recommended the youngster for Scholarship at the High Performance Centre. Today, the 13-year-old Quadri is one of the best junior players in Africa with her unprecedented three-straight ITF and the Confederation of African Tennis (/CAT) junior circuits title wins in Benin and Togo in 2016, which was the reference point of her phenomenal rise.

To say Quadri’s game has been elevated so much that none of her peers at home can take a set off her is an understatement.

This development has given a new lease of life and renewed vigour to Nigerian players and Nigerian tennis

pared to what is obtainable in today’s Association of Tennis Players (ATP).

Odizor, unarguably is Nigeria’s best player in the game, reaching a career high of number 52 world ranking in 1984 as well as reaching the fourth round of the Wimbledon Open in the same year.

But Odizor’s talent only materialized with the support he got from Dr. Robert Wren a University of Houston professor, who met him on a trip to Lagos in 1974 and encouraged him to move to Texas, USA. He spearheaded the sponsorship of the ‘Duke’ which helped the player become a superstar.

Talents like Odizor litter the nook and cranny of the country but the fortune that smiled on the previous ball boy at the Lagos Lawn tennis Club has been hard to come by for most of the talented prospects in Nigeria 42

the country’s players.

Toward the At the tailend of 2016, Sylvester Emmanuel, 18, bagged a scholarship worth $45,000 to the Pereriba Tennis Academy, Barcelona, Spain from Rainoil, a Nigerian Oil and Gas company. Emmanuel is the highest ranked Nigerian player by the ITF and playing his first tournament barely four months into his two-year scholarship. He showed flashes of brilliance serving a tournament-high of 24 aces in a single match at the Dayak Championship Nigeria F2 Futures.

Another player that is being tipped to fly Nigeria’s flag high in the game in the next few years is Moses Michael, who in January 2017, moved to the United States where he is matching his tennis and academic skills.

He is also enjoying sponsorship by an individual.

Also in late 2016, Ma-

Also, in late 2016, Marylove Edward, one of the country’s precocious tennis talent got a corporate sponsorship that will see the 12-year-old compete at various circuits and futures in the next few years before graduating to become one of the top 500 players in the world which would see her featuring at WTA events before she clocks 17.

rylove Edward, one of the country’s precocious tennis talent got a corporate sponsorship that will see the 12-year-old compete at various circuits and futures in the next few years before graduating to become one of the top 500 players in the world which would see her featuring at WTA events before she clocks 17.

The off-court commitment of Nigeria is also indicating that success awaits the country in the game in the coming years.

ITF Head of Operations for Africa and Middle East, Iain Smith submitted that Nigeria stands a good chance to make great impact in the sport with the overall commitment that the game is currently enjoying.

Smith was the instructor at a three-day ITF/CAT Workshop and Refresher Course for White Badge officials in West and Central Africa in April in Abuja. He admitted that the world tennis governing body acknowledges Nigeria’s steady progress in the last few years.

The South African goldbadge referee Smith added that the world governing body is impressed with Nigeria’s growing commitment to tennis.

The ITF is aware of the commitment to tennis development in Nigeria. Gradu-

ally, Nigeria is getting more international tournaments in addition to the Lagos Governor’s Cup which has the highest prize-money in Africa for ITF Futures men and women. This is good for Nigeria and the game and “we are very impressed,” he said, urging the country not to hold back in the drive to reach very high standards.

In spite of the harsh economy, the sponsors of the ITF Futures in the country’s capital, Abuja pressed on with three Pro Circuit tournaments from May 1st to May 20th gulping $75,000 plus hospitality, and this has given a fresh breath of optimism to tennis in the country. The constant increase of ITF Futures for two years has heightened the wave of optimism for Nigerian tennis.

Edmond Ajoge, who started the Futures in Abuja with the Tombim Open in 2015, said the competition is borne out of a desire to provide opportunities for Nigerian Players to collect vital ATP points, and to attract some of the best up-andcoming players in the world to play in Nigeria. “It is our desire to organize at least 5 to 10 of these events every year in Nigeria and hopefully, one day, catch up with the over 40 tournaments organised by Egypt each year,” To 44

Ajoge, an ardent tennis fan, the Futures is the first step of a project that will bring out the best of what Nigeria has got to offer in terms of talent for tennis as well as the promotion of tennis on an international scale.

He added,“The organizers of the competition are well aware of the difficulties faced by Nigerian players.

Most Nigerian players do not have sponsors and can hardly travel out of Nigeria to compete. This is one of the reasons why there are few Nigerian players with ATP points. We hope that this competition will provide that opportunity, and that by the end of it, some of our players will pick up points that will help their career.”

Part of the dream is already being materialized as a number of local players now have ITF ranking points by playing at the tournament which has been complemented with the Dayak Championship and GSL Open.

By Lookmon Ologunro, a sports writer in Lagos

Events

by Iroyin Koko

KPMG hosts experts at the KPMG Cybersecurity Conference 2017

O

n the 4th of May 2017, KPMG held a Pan African Cyber Security Conference at the Eko Hotel Convention Centre, with the theme: “Security and Resilience in a Digital World� as an effort to help organizations and individuals build a more resilient cyber ecosystem, and tackle cyber risks.

Issues discussed at the conference were aimed at cyber security and resilience as it affects financial institutions, government, private bodies and individuals.

45

T

he event had presentations, panel discussions and demonstration sessions, attracting a variety of top level participants across various sectors including: financial services institutions, energy, telecommunications, manufacturing and other stakeholders with interests in the cyber security space.

Andela launches new Nigeria HQ

O

n Friday May 5th, 2017. Andela launched her new Nigerian HQ, moving their headquarters from the historic Yaba to a new 5-floor building along Ikorodu road, nicknamed the ‘Epic Tower’ after Andela’s core values of: Excellence, Passion, Integrity and Collaboration. (Andela still has one location in have ‘The Amity Campus’).

After hitting the mark of 500 employees in March (this year), Andela knew it was time to get extra space and support to accommodate its rapid growth.

46

Hence, the move to a bigger office space.

Present at the grand opening were business and tech leaders. These included the former ICT minister, Omobola Johnson; Main One CEO, Funke Opeke and representatives from the U.S. Consulate among others.

A

ndela’s new HQ enables her to better support the Lagos ecosystem and serve as a cohabitation Hub for technology and entrepreneurs.

The

Africa Fashion Week was held on 1-4 June, 2017.

The objective of the fashion week was to provide designers who want to launch themselves internationally, a platform to achieve their goals. It also provided a social enterprise for local fashion brands by giving them a conduit to achieve worldwide visibility and distribution networks.

47

The

Lagos Leather Fair powered by Femi Handbags, a brand

of My World of Bags, a design and leather manufacturing company, was held on 3-4 June, 2017.

It

was the ďŹ rst leather fair organized in Nigeria on an international scale. Through exhibi-

tions, master classes, a panel discussion and a runway show, Nigerian leather products were showcased. Femi Olayebi, of Femi Handbags said, “the objective of the fair was to provide a solution-based platform that will seek to understand the needs of the leather industry, connect the dots, form business linkages, collaborations and ultimately begin to change the narrative.

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Some of the leather goods on display

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