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Nigerian Businesses Must Prepare for Greater Challenges Ahead

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Nigerian Businesses

Nigerian businesses need to prepare and brace themselves for a highly challenging period ahead as the coronavirus pandemic disrupts day-to-day life and commerce.

This follows the federal and state governments’ recent announcements of a set of bold measures to halt the spread of the coronavirus in Nigeria, including travel bans, school closures and limits to the size of public gatherings.

“While these actions are necessary and commendable, they are steering businesses into uncharted territory,” says Dr. Demola Sogunle, Chief Executive, Stanbic IBTC Bank PLC. “The operating environment, already difficult following years of lacklustre growth, will become even more challenging in the weeks ahead.”

As this health and economic crisis unfold, large organisations will have to contend with the challenge of managing complex operations across multiple entities and geographies – each with its own set of measures in place to tackle the pandemic.

“There is now a pressing need for effective risk mitigation and business continuity measures, and these must include partner firms, suppliers and other stakeholders,” says Dr. Sogunle.

In numerous industries, supply chains and cash flows are being severely disrupted, particularly for those businesses involved in cross-border trade. This makes planning more crucial than ever.

With this in mind, organisations should consider the early loading and planning of payments, as well as intensive cash-flow management and liquidity planning. Those businesses that have lending facilities in place should assess whether these can cope with changed or disrupted cash flows.

Also, businesses involved in cross-border trade can consider measures that reduce the impact on cash flows. Letters of credit, for instance, have a lesser impact on cash flows than upfront deposits. And the disruption of physical trade flows might require an alignment of the associated cash flows.

Meanwhile, the health and safety of employees, clients, and other stakeholders need to be top of mind. Companies should consider separating teams and allowing employees to work remotely, where possible, although the persistence of load-shedding does complicate remote work.

As more employees work from home, connectivity will be key. To enable this, teams could be provided with larger data bundles and afforded remote and secure access to internal systems. And with employees working in new environments, communication will be crucial to ensure that staff are well-informed and reassured, as well as productive.

Comprehensive policies and protocols applicable to both staff and clients are essential. Naturally, hygiene within the workplace and externally is of paramount importance – access to hand sanitizers, for instance, could prevent the spread of the virus.

“It is extremely important that companies remain calm and keep working effectively. Stanbic IBTC recognises that it has a responsibility to do everything it can to help clients keep their businesses and their lives on track.

“As we have come to grips with this new reality that is facing us, we have all made the necessary plans in our different environments and prioritised our requirements so that we can continue to work, interact, and contribute to the society in which we live.

“We do acknowledge that our business customers are facing challenges in dealing with the disruption to their businesses. We also understand that in any business or personal financial cycle there can be challenges in meeting financial obligations.

“These challenges may be heightened especially in times of economic downturns and crises. Customers who are in financial distress should contact the bank as soon as possible. The sooner the bank is informed, the sooner both parties can find a workable solution to address or resolve issues of financial distress.

“It is not in Stanbic IBTC Bank PLC’s interest to see a business fail, or a home lost. It is in both parties’ interest to find a workable solution. We do urge customers to contact the bank should they experience difficulties. We do not doubt that the impact of the Corona-19 virus has been extremely disruptive,” Dr. Sogunle says.

Stanbic IBTC Relationship Managers are in contact with our customers and are there to provide all the support necessary. Our customers all have individual needs and requirements and we will provide all the assistance necessary on a case by case basis.

“We are encouraging clients to make use of digital channels when transacting and engaging with the bank, where possible, and to contact the bank if a financial strain is foreseen. By planning, working together and remaining vigilant, we can limit the strain on Nigeria’s businesses in the weeks and months ahead,” Dr. Sogunle added.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Deep Blue Project: Mobereola Seeks Air Force Support

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By Adedapo Adesanya

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Mr Dayo Mobereola, is seeking enhanced cooperation between the agency and the Nigerian Air Force (NAF) with the aim of strengthening tactical air support within the Deep Blue project.

During a courtesy visit last week, Mr Mobereola told the Chief of Air Staff, Air Marshall S. K. Aneke at the NAF Headquarters in Abuja, that the Air Force was a strategic partner in enhancing maritime security in Nigeria and sustaining the momentum of the Deep Blue Project’s success.

According to the DG, “We are here to seek the Air Force’s support, given the importance of tactical air surveillance to the Deep Blue Project. Nigeria is the only African country with a record of zero piracy within the last 4 years. The Deep Blue Project platforms have been used to achieve zero piracy and sea robberies in the Gulf of Guinea, and we need your collaboration to sustain this momentum”.

He further emphasised that international trade depends on security, which is why vessels prefer to go to or transit through countries where they are secured. “With the traffic we have now, we need to show more security might through collaboration to strengthen our trade viability because of the risks attached to our route. We need these collaborations to sustain what we have achieved so far with the Deep Blue Project”.

The NIMASA DG expressed hope that the collaboration with the Nigeria Air Force will reduce response time.

On his part, the Chief of Air Staff, Air Marshall S.K. Aneke, noted that the Air Force desires to be “a very supportive and collaborative partner with NIMASA and is ready to match the Agency step by step and side by side to achieve the desired results.”

He noted that “collaboration between NIMASA and the Nigerian Air Force under the Deep Blue Project can be strengthened through a joint strategic framework, integrated command structures, and a standing steering committee to ensure shared objectives and accountability.

“Establishing a joint maritime domain awareness fusion cell will enable real-time intelligence sharing, synchronised surveillance, and faster response to maritime threats and ensure sustained operational effectiveness across Nigeria’s territorial waters and exclusive economic zone,” he said, according to a statement.

The Air Force Chief added that the Air Force can also support NIMASA outside the Deep Blue Project operations by providing its own ISR platforms, tactical air support, and rapid airborne deployment for interdictions and search and rescue missions.

While thanking the NIMASA DG for the basic trainings the Agency has provided the aircraft pilots under the Deep Blue Project, Air Marshall Aneke also highlighted areas of operational challenges needing NIMASA’s attention to include bridging the communication gap between NAF operators and NIMASA, higher level and in-depth maintenance trainings, readily available fueling of aircrafts to avoid delays on missions, and provision of flying kits among others.

He therefore pledged the Air Force’s collaboration and assured that the request by NIMASA has been noted and that things will begin to move at thrice its speed going forward.

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Nigeria’s Democracy Suffocating Under Tinubu—Atiku

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By Modupe Gbadeyanka

Former Vice President, Mr Atiku Abubakar, has lambasted the administration of President Bola Tinubu for the turnout at the FCT Area Council elections held last Saturday.

In a statement signed by his Media Office, the Adamawa-born politician claimed that the health of Nigeria’s democracy under the current administration was under threat.

According to him, “When citizens lose faith that their votes matter, democracy begins to die. What we are witnessing is not mere voter apathy. It is a direct consequence of an administration that governs with a chokehold on pluralism. Democracy in Nigeria is being suffocated slowly, steadily, and dangerously.”

He warned that the steady erosion of participatory governance, if left unchecked, could inflict irreversible damage on the democratic fabric painstakingly built over decades.

“A democracy without vibrant opposition, without free political competition, and without public confidence is democracy in name only. If this chokehold is not released, history will record this era as the period when our hard-won freedoms were traded for fear and conformity,” he stressed.

Mr Atiku said the turnout for the poll was below 20 per cent, with the Abuja Municipal Area Council (AMAC) recording 7.8 per cent.

He noted that such civic participation in the nation’s capital, the symbolic heartbeat of the federation, is not accidental, as it is the predictable outcome of a political environment poisoned by intolerance, intimidation, and the systematic weakening of opposition voices.

The presidential candidate of the People’s Democratic Party (PDP) in the 2023 general elections stated that the ruling All Progressives Congress (APC) under Mr Tinubu has pursued a deliberate policy of shrinking democratic space, harassing dissenters, coercing defectors, and fostering a climate where alternative political viewpoints are treated as threats rather than contributions to national development.

He called on opposition parties and democratic forces across the country to urgently close ranks and forge a united front, declaring, “This is no longer about party lines; it is about preserving the Republic. The time to stand together to rescue and rebuild Nigeria is now.”

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Nigeria Eyes Full Entry into Council of Palm Oil Producing Countries

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By Adedapo Adesanya

Nigeria is set to validate a technical committee report geared towards transitioning the country from observer status to full membership of the Council of Palm Oil Producing Countries (CPOPC) in April.

Mr Abubakar Kyari, Minister of Agriculture and Food Security, said this when the council’s mission visited him over the weekend in Abuja, noting that the ministry had constituted a technical committee to consider how the country would seamlessly transit from observer country to membership in CPOPC based on its strategic importance in palm oil production.

“We are conscious of the fact that the palm oil value chain is very strategic for us and identified it as an export crop that can drive foreign exchange for the country and ensure good health in terms of consumption.

“We are conscious of the fact that we need the support of CPOPC countries to provide the country with a new variety of seeds that are climate-smart and resistant so that they can be produced by farmers in the country,” he said.

Mr Alphonsus Inyang, President, National Palm Produce Association of Nigeria (NPPAN), said being a member of CPOPC Nigeria would target over 10 million tonnes of oil palm between 2026 and 2050.

“We are also targeting 2.5 million hectares from among Nigeria households who are out to produce one hectare each, geared towards a N20 trillion annual economy within this period from among Nigeria households.

“We are working side by side with the big players who will be developing plantations,” he said.

The Secretary-General of CPOPC, Ms Izzana Salleh, said the council’s mission to Nigeria was to see how the country could transit from observer status to full membership, among others

She said that the status of the country as an observer nation since 2024 would expire by November.

Ms Salleh assured the country of the council’s readiness to support its vision to strengthen domestic production, enhance food security and build a competitive and sustainable palm oil supply chain.

The official emphasised that being a member of the council would strategically position Nigeria for a greater future regarding oil palm production.

According to her, the visit is to strengthen the council’s engagement with Nigeria, including potential membership in CPOPC.

She said: “The council’s mission to Nigeria aims to advance both Nigeria’s national ambitions and Africa’s collective voice in global agricultural discussions.

“CPOPC was established to promote cooperation among producing nations, empower smallholders, advance sustainability, and ensure fair, science-based global dialogue on vegetable oils.

She emphasised that being a member of the council would strategically position the country for greater future prospects regarding oil palm production and the value chain, as well as export.

“We are ready to support Nigeria’s vision to strengthen domestic production, enhance food security, and build a competitive and sustainable palm oil supply chain,” she said.

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