Business
Investment into Nigeria’s retail sector hits N205.4bN
ABUJA – Nigeria has attracted investment of about N205.4bn ($1.3bn) into the retail sector within the last two years, The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, has said.
He spoke during the inauguration of the Retail Council of Nigeria, orgainsed by BusinessDay Media , in Abuja, on Monday.
The minister, who noted that the retail sector was a major driver of economic growth, job creation and wealth generation globally, stressed that Nigeria had great opportunities for existing and new investors to take advantage of.
He said, “Indeed today, we are starting a journey to strengthen and deepen one of the most important segments of the Nigerian economy. The retail sector is the glue that binds economic activity together, by connecting the final consumers, to products from the producers. The impact of retail in Nigeria cannot be over- emphasized because anywhere in the world, it s a major driver of the economy.
“Globally retail trade accounts for 27 per cent of the world’s GDP, which means we have about $19 trillion of retail sales each year. Retail also employs 17 percent of the global workforce, which is about 800 million people. In the United States alone, one in every 10 people work in the retail sector. If retail is the sector to grow, then Nigeria is the market to be. There is simply no better retail market right now than the Nigerian market.
He added, “Nigeria is a retailer’s delight. With a population of 167 million people (the 7thlargest in the world), consumer spending well in excess of $100 billion a year, and a fast growing middle class, this is definitely the most promising market on the continent. In addition, over 80 million Nigerians live in metropolitan areas, creating huge opportunities for formal retail to thrive. Over the last two years alone, the Nigerian retail market has attracted over US$1.3 billion in investments into the formal retail space. The pace of developments within Nigerian retail has really been breath-taking.”
Aganga said that the inauguration of the RCN would accelerate the growth and development of the nation’s retail sector, adding that the Ministry of Industry, Trade and Investment would work together with all the stakeholders to grow and strengthen the sector.
He said, “Today’s launch of the Retail Council of Nigeria is consistent with our mandate on facilitating domestic and international trade and will accelerate our national agenda to develop the retail sector. This inauguration could not have come at a more opportune time, given the fact that, for the first time ever, my Ministry recently developed strategies for Domestic, African, and International Trade; and I am pleased to inform you that having a modern retail sector is central to our domestic trade strategy.
“Our domestic trade strategy promotes large trade aggregators and hubs, such as formal shopping malls; sizeable wholesalers; and a modernized retail sector in general. We therefore need to work together, both the public and private sector, to fully develop Nigeria’s retail sector as part of this strategy”.
As part of efforts to develop and strengthen retail sector, Aganga assured that the Federal Government would address the challenges facing the sector.
He said, “Some key challenges faced by the retail sector are already on this government’s radar; including. In order to promote domestic sourcing of goods, the Federal government is intensifying execution of key sectorial initiatives to improve your access to made in Nigeria products –through the Nigeria Industrial Revolution plan (NIRP) for manufactured goods; and the Nigeria Enterprise Development Programme (NEDEP) for specific MSME products. These programmes are designed to increase production, enhance product standards, and increase information available to retailers on sourcing options and strategies”.
Speaking during the event, the Chairman, Board of Trustees, RCN,Chief Olusegun Obasanjo, said there was need for the government and the private sector to collaborate in order to fast-track the development and growth of the retail sector in Nigeria.
He said,| “Retail sector is much larger than supermarkets or malls . It encompases other aspects of economic activities responsible for creating direct and indirect employment. In order to develop and grow the retail sector in Nigeria,, there is the need for collaboration between stakeholders and the government for the overall growth of the organised retail sector and the nation’s economy.”
The Office of the Auditor-General of the Federation has uncovered financial irregularities amounting to ₦514 billion in the 2021 operations of the Nigerian National Petroleum Company Limited (NNPC Ltd).
The revelations were contained in a comprehensive audit report highlighting non-compliance and internal control weaknesses within Ministries, Departments, and Agencies (MDAs) during the 2021 financial year.
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Breakdown of Infractions
The audit detailed four major financial discrepancies within NNPCL:
“Irregular Deductions: A total of ₦343.64 billion was deducted from domestic crude oil sales at source without proper documentation.
“Sinking Fund Deposits: ₦83.66 billion, categorized as miscellaneous income, was retained in a sinking fund account.
“Unauthorised Refinery Deductions: ₦82.95 billion was deducted from federation revenue purportedly for refinery rehabilitation.
“Unsubstantiated Payments: ₦3.75 billion was flagged for transactions related to petrol sales that lacked proper verification.
The Auditor-General’s report stated that these financial activities violated the 1999 Constitution and the Financial Regulations Act of 2009, underscoring significant lapses in compliance with statutory guidelines.
According to the report, NNPCL generated ₦484.73 billion from domestic crude oil sales in March and May 2021.
However, ₦343.64 billion was deducted for various purposes, including “Value Shortfall,” “Strategic Stock Holding Cost,” and “Pipeline Maintenance.”
The deductions were made unilaterally by NNPCL without adequate documentation or justification.
Additionally, the report flagged ₦50 billion of the net payable amount for May 2021 as unaccounted for, creating a significant gap in the federation’s revenue.
“Audit observed from the review of NNPC SAP payment record for March and May 2021 payments that the sum of ₦484.73bn was the gross amount generated for the sale of domestic crude for the months of March and May 2021.
“The sum of ₦343.64bn from the gross amount was unilaterally deducted from the gross domestic crude sales as NNPC Value shortfall, Strategic Stock Holding Cost, Crude Oil and Products Pipeline Losses, as well as the pipelines maintenance and management costs.
“The details of each of the cost components deducted were not provided for audit review. Hence, the reasons for the deductions could not be justified by the management.”
On the unremitted ₦50 billion from May 2021, the report noted: “In the month of May, the net payable that could have been remitted ought to have been ₦127.075bn, but only the sum of ₦77.075bn was remitted, leaving an unremitted balance of N50bn to the Federation Account, which has remained unaccounted for.”
The report attributed these anomalies to weaknesses in NNPCL’s internal control systems, warning of the risks they pose to public funds.
It read, “The above anomalies could be attributed to weaknesses in the internal control system at NNPC, now NNPC Ltd. This is a potential loss of Federation revenue, diversion of public funds, or misapplication or misappropriation of funds.”
The success of the maiden edition of the Lagos Shopping Festival (LSF), Africa’s first 72-hour non-stop commerce and entertainment event has been credited to the Governor of Lagos State, Babajide Sanwo-Olu.
This is the view of Managing Director/Chief Strategist of Chain Reactions Africa Ltd, Israel Jaiye Opayemi, one of the main organisers of the event.
According to Opayemi, though Chain Reactions Africa conceptualised the event, the festival could be rightly described as the Governor’s baby and owes its success to his leadership. “Firstly, the Lagos Shopping Festival could not have come to fruition if the Governor did not buy into our audacious plan when we first presented the idea to him during the Covid-19 pandemic in 2020. Secondly, it was the Governor’s exemplary leadership of the project as its Chief Marketing Officer which attracted the buy-in of key sponsors like Zenith Bank, Tolaram Group, First Bank Plc, and Guinness Nigeria Plc,” Opayemi revealed.
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While the duo of Zenith Bank and First Bank provided their bank on wheel platforms for buyers at the Lagos Shopping Festival, they also supported the Vendors with special Point of Sale Machines with which to process payments from buyers. The banks were also seen marketing their diverse banking products to guests within the shopping arena.
For Tolaram, it was a time to support the citizens and give back to society. Guests at the Lagos Shopping Festival were freely given some of the products of the group such as PowerOil, Indomie and Kellogg’s packaged into goodie bags and given out to prospective buyers at the shopping arena. The Children’s Arena was however activated by Indomie with the children entertained by Santa Claus within a well-equipped arena manned by the Indomie Brands team and the Lagos State Safety Marshalls. The children were daily treated to free Indomie meals daily and given various gifts to go home with.
On its part, Guinness Nigeria came through as the real life of the Nigerian party by organizing product sampling activation for the teeming guests at the festival using brands such as Singleton, Johnnie Walker, Ciroc, Don Royale and Captain Morgan to deliver pleasant experiences to guests aside from Guinness and Malta Guinness.
While unveiling the identity of the festival last month, Governor Babajide Sanwo-Olu had thanked the management of Zenith Bank Plc, Tolaram Africa Group, Guinness Nigeria Plc and First Bank of Nigeria for supporting the idea of a Lagos Shopping Festival, describing it as a value addition on the state’s tourism calendar and the overall efforts to grow the State’s GDP. The Governor further said, “I must specially acknowledge your pioneering sponsorship role. It is easy for a corporate sponsor to jump on the sponsorship band wagon of an already established festival and fund it. But you are supporting the maiden edition of this Lagos Shopping Festival with us. The competition is watching you now. Do not build this brand with us and yield the space for the competition to take over. I do hope you would all commit long term to this brilliant initiative.”
On his part, Girish Sharma, CEO Guinness Nigeria Plc, expressed enthusiasm for the initiative. “Lagos is the commercial heartbeat of Nigeria and Africa’s entertainment capital, and the Lagos Shopping Festival captures its essence. We see opportunities in this initiative because it is a creative fusion of commerce and entertainment. This partnership reflects our dedication to fostering economic opportunities and support the nation’s vibrant entertainment industry.”
A first-of-its-kind, the festival was a convergence of commerce and entertainment, bringing together buyers and sellers in the MSME ecosystem, and hordes of fun-seekers who were entertained with thrilling performances by A-list entertainers, including Adekunle Gold, Wande Coal, Teni, Young Jonn, BNXN, Ayo Maff, SB Live and EmmaOMG. The list also included some of Nigeria’s most sought after DJs such as DJ Neptune, DJ YK Mule, DJ Baddo while Gbenga Adeyinka the 1st and Larry J dished out rib-cracking comedy performances.
Held from 23rd to 25th Day of December 2024, at the iconic Mobolaji Johnson Arena, Onikan Stadium, Lagos, the Lagos Shopping Festival saw thousands of fans throng the main venue and select Lagos malls during the three-day period to bag the latest bargains from local and top global brands.
The Nigerian Naira experienced mixed movements in the foreign exchange markets on Monday, as it depreciated to N1,665 per dollar in the parallel market, down from N1,660 per dollar recorded over the weekend.
In contrast, the official exchange rate saw the Naira appreciate to N1,534.56 per dollar, improving slightly from N1,535 per dollar last Friday, according to data released by the Central Bank of Nigeria (CBN).
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This reflects a marginal gain of 44 kobo in the official Nigerian Foreign Exchange Market (NFEM).
As a result, the gap between the parallel market rate and the NFEM rate widened to N130.44 per dollar, compared to the N125 per dollar margin recorded over the weekend.
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