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14,000 May Lose Job on Exit of Oriental Hotel Owners from Nigeria

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By Modupe Gbadeyanka

There are strong indications that the number of job loss in Nigeria under the present administration of President Muhammadu Buhari may further increase anytime soon.

This is because owners of the popular Oriental Hotel in Lagos, Western Metal Products Company Limited (WEMPCO) Group, are planning to leave the country after over four decades doing business in the Africa’s largest economy.

Few days ago, there were reports that WEMPCO was offering to sell its flagship hospitality business, Oriental Hotel for $250 million (about N90 billion).

In a report posted a moment ago, Business Day said WEMPCO wants to sell the company because of some issues, including unfavourable business environment, corporate governance, debts and others.

It was reported that the group has fallen on hard times and is considering an exit from Nigeria along with its steel plant, which has 700,000 tonnes-capacity and employs about 14,000 people, mostly Nigerians.

“When deep, long-term guys like these are exiting, then it is a very worrying sign. People like these are not supposed to exit,” an economic analyst, who asked not to be quoted, said.

Founded by Lewis Tung and his brother Robert Tung, WEMPCO Group has been in Nigeria for over 40 years with established manufacturing companies that produce roofing sheets, galvanised pipes, wire nails, plywood, ceramic tiles and sanitary ware. It is also actively involved in agricultural and hospitality sectors through which it currently employs over 13,000 workers across its 11 subsidiaries.

The Tungs were among the four Chinese families that came to Nigeria in the 60s.
“If they leave there will be only one left,” an industry expert said on the condition of anonymity.

Chaired by Lewis Tung, a Chinese-born, US-trained entrepreneur, WEMPCO has made some of the biggest foreign direct investments in Nigeria in recent years.

Top directors in the steel and hospitality sectors who are familiar with the situation, however, told BusinessDay that the reasons for the group’s ordeal are poor corporate governance, over-dependence on government policy, inability to consider Nigerian realities before making key decisions, and harsh business environment.

They say there is poor corporate governance at the Luxury Oriental Hotel as directors’ children interfere in the financial operations of the business.

More so, the group relied so much on government policy and Olusegun Aganga, the then minister of industry, trade and investment, for its survival. This has turned out to be part of its Achilles Heel.

In 2015, BusinessDay exclusively reported that the then outgoing government of Goodluck Jonathan, under the supervision of Aganga, classified WEMPCO, Midland and Kam Wire as upstream manufacturers of cold-rolled steel. They were to produce for the downstream segment which would use the cold-rolled steel for further production.

These companies were granted import waivers that would allow them to import any shortfall (the demand gap) to complement what they would produce locally to meet the demands of the downstream segment.

Downstream manufacturers wishing to import the cold rolled steel coils were mandated to pay 20 percent import duty.

At some point, WEMPCO and co raised prices of cold-rolled steel, forcing some of the manufacturers in the downstream segment to set up cold-rolled plants.
“WEMPCO had invested heavily in this segment. So when the manufacturers who were supposed to buy from them set up cold-rolled lines, it became a problem for the likes of WEMPCO. As this was happening, a new government of Muhammadu Buhari came and cancelled the waivers,” a reliable source in the steel sector said.

Sources added that WEMPCO calibrated a production line in its N236 billion rolling mill in Lagos to produce a thick cold-rolled of 0.2mm, which is more expensive than the 0.8mm or 0.4 mm seen in the West African market.

“It became difficult for them to be competitive in a market where low-quality products are rife,” another industry source said.

However, some analysts say the company’s problem shows Nigeria’s weak business environment.

Babatunde Paul Ruwase, president, Lagos Chamber of Commerce and Industry (LCCI), recently said businesses are generally burdened with the challenges of infrastructural deficiencies and macroeconomic blows, as most investors are saddled with huge cost of providing electricity, poor access to good roads, insecurity and other industry-specific issues amid poor access to affordable credit, high exchange rates and multiple taxation.

Ken Udoh, a Lagos-based public affairs analyst, said the sale of the hotel by its owners could be as a result of a tough operating environment and the increase in the cost of doing business in the country.

“This further confirms our fears about the economy and the decrepit infrastructure in the country,” Udoh said.

Ademola Feranmi, an economist, said the service industry is really struggling currently. The shrinking consumer wallet has reduced the patronage and the profitability of these companies while the cost of operation keeps rising.

“Most hotels now have large halls to host social events on weekends and corporates to boost their revenue,” he said.

The Manufacturers CEOs Confidence Index (MCCI) report released on Tuesday by the Manufacturers Association of Nigeria (MAN) shows that confidence of business owners in Nigeria’s manufacturing sector stands at 51.3 percent in the first quarter of 2019 as 200 CEOs interviewed said access to dollars, credit, electricity and fair taxes were major drawbacks.

The sale of Oriental Hotel is coming after Four Points by Sheraton was acquired in 2018 by Actis, an investment firm, and Westmont Hospitality Group. The 231-room hotel is targeted towards business travellers and small conventions. It was owned by Starwood Hotels & Resorts, which is a subsidiary of Marriott International.

An imminent exit of WEMPCO Steel, commissioned in 2013 by President Jonathan, could mean loss of 14,000 jobs after Procter&Gamble shut down its $300 million diaper plant, with Kimberly Clark also exiting.

The CBN in 2015, as part of its initiative to resuscitate local industries and improve employment generation, released a list of items not eligible for foreign exchange in the government-created Importers & Exporters window. Among the 41 items on the list are cold-rolled steel sheets, galvanised steel sheets, and roofing sheets.

Business Post reports that some Nigerians had before linked ownership of Oriental Hotel to the national leader of the ruling All Progressives Congress (APC), Mr Ahmed Tinubu.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Interocean Hires Robert Dalziel to Drive Middle East Growth

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Robert Dalziel Interocean

By Aduragbemi Omiyale

Mr Robert Dalziel has been picked to be the new Managing Director of Interocean Marine Services, as part of the strategies of the company to drive its growth in the Middle East and Asia Pacific (APAC) region.

A statement disclosed that Mr Dalziel was chosen for the task because of his in-depth understanding of Interocean’s operations and strategic objectives.

It was stated that his leadership would ensure a seamless transition into this new role, reinforcing the company’s commitment to delivering an integrated technology-led, asset support service.

He joined the organisation in December 2024. He had been the chief executive of Rigmar Group, which recently merged with Interocean, a specialist provider of marine services to the global energy industry.

He comes with nearly 30 years of engineering and business development expertise within the energy sector.

His extensive technical knowledge, coupled with a proven track record in commercial strategy, will be pivotal in driving Interocean’s ambitious growth plans across the Middle East and North Africa (MENA) and Asia Pacific (APAC) regions.

“We are thrilled to welcome Robert to the team. His exceptional leadership and proven success in driving business growth will be invaluable as we enhance our market presence, and continue to deliver exceptional service to our clients across the region,” the chief operating officer of Interocean, Mr Alex Clark, commented.

The appointee, while speaking, said, “I am absolutely delighted to be rejoining Interocean during this exciting period of growth.

“After nearly 10 years, it was a fantastic opportunity to be involved in the next evolution of the business. The company’s commitment to innovation and its client-centric approach is inspiring.

“I look forward to working with the talented team to drive continued growth and strengthen our position internationally.”

In line with its international expansion, Interocean is growing its MENA & APAC business, with plans to increase its regional presence in five new regions.

This investment demonstrates the company’s dedication to supporting both current and future projects while strengthening its regional capabilities.

Looking ahead to 2025, the company will continue to deliver a comprehensive range of project solutions that encompasses everything from planning, design, and installation to operational maintenance and decommissioning.

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Tinubu Appoints Aisha Garba to Lead Universal Basic Education Commission

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Universal Basic Education Commission UBEC

By Adedapo Adesanya

President Bola Tinubu has appointed Mrs Aisha Garba, an international development specialist, as the Executive Secretary of the Universal Basic Education Commission (UBEC).

She is a Senior Education Specialist with the World Bank and is expected to bring more than 24 years of experience driving impactful programmes in education for human and economic development, working in Nigeria, Ghana, Somalia, Kenya, the USA, and the United Kingdom.

With over 15 years of hands-on experience at the World Bank, Mrs Garba has consistently led end-to-end design and management of education programmes and reforms, from conceptualisation to completion and impact assessment.

Apart from being actively interested in and involved in human development issues, the development specialist will share her rich network with governments, development partners, and communities, as well as the skills she acquired working in fragile, conflict, and violent settings to deliver sustainable solutions in basic education in Nigeria.

Business Post reports that Nigeria has one of the largest out-of-school children in the world.

Mrs Garba had previously worked on the team that met the Millennium Development Goals (MDGs) targets in Nigeria and consulted for the World Bank, Department for International Development, BOND-UK, Regent Foundation, and Muslim Aid Organization.

She is an alumna of Petra American University in Jordan, where she earned a Bachelor of Arts combined degree in English and Computer Studies in 2000.

She later got a Master’s in International Development at the University of Birmingham in the UK in 2007.

According to President Tinubu, she is tasked to drive the renewed hope and vision of providing and supporting quality education and ensuring that Nigerian children become globally competitive.

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Tinubu Appoints Ogunjumi Acting Accountant General as Madein Retires

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Shamseldeen Babatunde Ogunjimi

By Adedapo Adesanya

President Bola Tinubu has appointed Mr Shamseldeen Babatunde Ogunjimi as the Acting Accountant General of the Federation (AGF).

This was contained in a statement on Tuesday by presidential spokesman, Mr Bayo Onanuga.

“His appointment is effective immediately following the pre-retirement leave of the incumbent AGF, Mrs Oluwatoyin Sakirat Madein,” a part of the statement read.

“In announcing Madein’s successor, President Tinubu ensures a seamless transition in the administration of Nigeria’s treasury and consolidates the implementation of the present administration’s treasury policy reforms,” the statement added.

Mr Onanuga said Mr Ogunjimi brings over 30 years of extensive experience in financial management across the public and private sectors.

He described the appointee as a career civil servant and the most senior director in the Office of the Accountant General of the Federation (OAGF),

“He has held significant positions, including Director of Funds at the OAGF and Director of Finance and Accounts at the Ministry of Foreign Affairs.

“A chartered accountant, certified fraud examiner, chartered stockbroker, and chartered security and investment specialist, Mr Ogunjimi’s academic qualifications include a Bachelor of Science (BSc) in Accountancy and a Master’s in Finance and Accounting,” the statement added.

According to Mr Onanuga, President Tinubu expressed his confidence in his appointment, saying, “The Office of the Accountant General of the Federation is pivotal to our nation’s treasury management operations. Mr Ogunjimi’s wealth of experience and notable competence will ensure the continued effectiveness of this vital institution as we advance our economic reform agenda.”

President Tinubu also commended the outgoing Accountant General of the Federation, Mrs Madein, for her dedication and selfless service to the nation.

After reaching the civil service’s statutory retirement age, Mrs Madein is retiring effective March 7, 2025.

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