EnterpriseNGR’s Youth of Enterprise (YOE) Internship Programme, an initiative dedicated to tackling Nigeria’s persistent challenge of youth unemployment and underemployment, celebrated the graduation of its third cohort on Thursday, 10th October 2024, marking a significant milestone for over 120 young interns across Nigeria. These young people interned at reputable organizations like Coronation, Custodian, Investment One, Polaris Bank, Saroafrica International Ltd, PwC, Nigeria Exchange Group, Access Bank, among others. With the theme “Digital Dreams: Forging Successful Careers in a Connected World,” the event highlighted the critical role of digital skills and forward-thinking mindsets in the modern workforce. Moderated by SACO, renowned Master of Ceremony and Managing Director of Saco Events Limited, the ceremony featured insightful discussions, reflections on the YOE programme’s impact, and motivational words for the graduates. In her opening remarks, Obi Ibekwe, CEO of EnterpriseNGR, commended the graduates for their dedication throughout the programme and encouraged them to embrace the lessons they have learned. “Your journey through YOE has equipped you with skills and knowledge that are essential in today’s ever-evolving landscape. Now, it’s time to apply them with courage and determination as you build your careers,” Ibekwe said. Delivering the keynote speech on “Thriving in the Digital Age: Skills and Mindsets for the Future,” Pai Gamde, Chief Talent Officer at Coronation Group, urged the interns to adopt a future-oriented approach. “The digital age is about agility, creativity, and continuous learning. As you move forward, embrace challenges and view them as opportunities to innovate and grow,” she advised, emphasizing the importance of adaptability in a rapidly changing world. Joy Abara, Head of Programmes at EnterpriseNGR, echoed this sentiment as she encouraged the graduates to maintain the YOE spirit. “Continue to fly the YOE flag high in your future endeavors. The skills, network, and experiences you have gained here will serve as a foundation for your professional growth,” she remarked. Announcing the top three performing groups and the overall best intern in Cohort III of the YOE Programme, Ms. Abara commended the winners for their outstanding performance noting that each member of the top three teams and the overall best intern would be rewarded with cash gifts and certificates of merit. The graduation ceremony concluded with a vote of thanks from Zahra Yunusa, YOE Administrator, who praised the graduates and wished them continued success as they embark on their next chapters. EnterpriseNGR remains committed to empowering young Nigerians through the YOE Internship Programme, equipping them with the tools needed to succeed in today’s dynamic job market. Organisations and Business Executives who would like to partner with YOE to shape tomorrow’s leaders can contact YOE at yoe@enterprisengr.com. CONNECT WITH YOE ACROSS SOCIAL MEDIA: Follow YOE across our social media platforms below to stay up to date with our community: Instagram: @youthofenterprise X (Twitter): @YOENigeria Facebook: https://www.facebook.com/YouthofEnterprise Click here to read what renowned HR Expert, Yemi Faseun, says about Empowering Nigeria’s Young Talent for Business Growth.
Tag: Finance in Nigeria
Lagos City Branding: Boosting Nigeria’s Economic Growth
To grow the domestic economy, nations, among other things, depend on inflows of investments, talent, and tourists from around the world. However, only a few locations are ranked in the top destination list of investors, tourists, and visitors despite the enormous social and economic asset base that nations possess. Most times, countries’ reputation poorly matches their actual position because of misrepresentation and lack of awareness by the global audience. Most of the countries that make it to the top destination lists have to leverage the power of destination branding to create a unique sense of place. Destination branding starts with the goal of developing a distinctive positive image of a location, leveraging dominant attributes like art, culture, lifestyle, value, history and heritage, natural and built environments, landmarks, and the economy that will appeal to the international audience and make the destination more desirable. Today, cities are branded like commercial products: numerous examples abound, from Paris to New York, Glasgow, and the Maldives to Mauritius. Paris, regarded as the world’s most romantic city and a haven for foodies and fashion lovers, leverages many factors, including fashion, art, sports, cultural movements, and iconic landmarks like the Eiffel Tower, Pont du Gard, near Marseille, Place de la Bourse, Bordeaux, Arc de Triomphe, Chateau de Versailles, and Notre-Dame de Paris to achieve a global destination status. This example illustrates how a city’s identity can be a powerful magnet, drawing people, businesses, and investments. New York leveraged the “Big Apple” moniker for a tourism campaign that transformed the city. In 1977, the city embarked on an advertising drive and embraced a campaign with the iconic logo, “I ♥ NY”. The campaign’s success resurrected the city’s image and breathed new life into a tarnished reputation. Also, the city’s significant infrastructure and vibrant financial sector, and arts and culture play a critical role in its larger-than-life reputation. Glasgow adopted a different city branding approach. The city embarked on a crowd-sourced brand identity — “People Make Glasgow” — inviting voices from around the world to shape its brand. The success of the campaign laid in both the slogan and active social media engagements. The “Great Campaign” refers to a series of marketing initiatives launched by the United Kingdom to promote the country’s strengths and assets on the global stage. These campaigns are aimed at attracting international business, tourism, investment, and talent to the UK. The campaigns highlight various aspects of the UK, such as its culture, education, innovation, creativity, and business opportunities. The campaign has been very successful to highlight Great Britain and Northern Ireland as an exciting destination. The Maldives became one of the world’s leading tourist destinations because the Island country recognized the importance of the tourism sector. In 2011, the Island launched a tagline “Maldives…Always Natural” to reflect its eco-friendly environment. In 2020, the Island rebranded to “Maldives…the Sunny Side of Life.” The campaigns carried the message of an Island with tropical paradise and hospitality. The country used them to showcase different aspects of destination experience, marine life, water sports, wellness and leisure, and high-end luxury private Island resorts. Like many other countries, Mauritius purposefully developed its tourism sector and embarked on local and international campaigns and fairs. Tourism now plays a key role in the country’s foreign direct investment, growth, and development. Destination branding is the hallmark of the investment attraction strategy of the tourism sector to promote the growth and development of the domestic economy. The travel and tourism sector is one of the largest economic sectors, contributing $7.7 trillion to the global economy in 2022; the sector’s contribution was projected to reach $9.5 trillion in 2023 and $15.5 trillion by 2033, representing 11.6 percent of the global economy.[1] The sector is responsible for one in 11 jobs globally, with a total employment of over 295 million as of 2022, and overseas visitors spent a total of $1.1 trillion. At the country level, the contribution of the travel and tourism sector is likewise outstanding. Based on the latest statistics from the World Bank, as of 2019, the number of arrivals in France was 217.9 million, 165.5 million in the US, 40.9 million in the UK, 22.3 million in the United Arab Emirates, 19.1 million in Singapore, and 14.8 in South Africa.[2] The impact of destination branding transcends the travel and tourism sector; successful destination branding benefits trade and investments, businesses, and other economic activities. It facilitates the competitiveness of a location, promoting higher perceived value for goods and services that favours businesses — some visitors and tourists do not shy away from paying a premium for products and services at the destination city. Cities in the Economist Intelligent Unit’s top ten most expensive cities list in 2023, including Singapore, New York, Hong Kong, Paris[3] equally have the highest number of tourists by arrivals. The opposite is also true; Tehran, Ahmedabad, Lagos, Chennai, and Buenos Aires, in the bottom ten positions of the list, are among the least visited cities. Famous cities attract other benefits, including preferred locations for businesses and headquarters of global corporations, high concentration of flow of goods and services by air, land, and sea transports, talent attraction, major global events, and global influence, among others. With many resources and opportunities to leverage, Lagos has the potential to tip the scale for Nigeria’s economic development, riding on destination branding and actively showcasing national strengths on the global stage. According to the World Population Review, Lagos with a population close to 17 million, is the largest city in Nigeria, 3rd and 14th largest in Africa and the world, respectively. The state has rapidly evolved into a pivotal economic and cultural hub in West Africa. Multinational companies span sectors such as banking, insurance, telecommunications, oil and gas, and professional services (accounting, consulting, and legal), and the dynamic business environment with a community of expatriates, establishing Lagos as Nigeria’s economic epicenter and commercial nerve centre. Some of the notable attractions in the city include one of the largest and busiest seaports in Africa,… Continue reading Lagos City Branding: Boosting Nigeria’s Economic Growth
Sustainable Finance: Enhancing Participation Today
A profound transformation is sweeping through the world of investments as investors, once solely focused on financial returns, are now seeking something more, exploring opportunities that promise competitive financial returns and carry the banner of sustainability. Industry leaders are fast recognising that a balanced approach to wealth accumulation, one that considers not just profits but also the well-being of our planet and society — going beyond the dollars and cents to the broader repercussions of our actions — is the way forward. This realization is wildfire igniting the growth of sustainable finance, a field that integrates Environmental, Social, and Governance (ESG) criteria into the heart of investment decision-making. Sustainable finance scrutinizes investment impact on the environment, society, and the ethical governance of the entities invested in. This holistic approach is leading to a significant realignment of business models as capital holders strive to meet evolving customer expectations, adapt to shifting economic landscapes, and adhere to the ever-evolving sustainability standards. This wave is about channeling financial resources into projects that promote environmental well-being and directly support the transition to a zero-carbon economy. The entire financial industry has a critical role to play! It requires financial operators to play offense and respond to sustainability market demands and be ahead of the green supply curve, operating within the global standards and frameworks of the United Nations Principles for Responsible Investment (PRI), United Nations Sustainable Development Goals (SDGs), United Nations Global Compact (UNGC), United Nations Environment Programme Finance Initiative (UNEPFI) Principles for Responsible Banking, Equator Principles, UNEPFI Principles for Sustainable Insurance, and Green Bond Principles, among others. ESG integration is the flagship strategy, reflecting a holistic viewpoint of investors that are not just dipping their toes in the water; they are refining their strategy, moving beyond basic screening to embrace more advanced approaches like thematic and impact investing. Most investors prefer active ESG integration. They are looking for companies and securities that actively incorporate ESG principles and are willing to engage with investee companies to ensure the positive impacts are real. A survey report in December 2020 by NAVEX Global revealed some fascinating insights. It disclosed that 88% of publicly traded companies had already embraced ESG initiatives; roughly two-thirds of privately owned companies were treading a similar path. Furthermore, in October 2023, Capital Group reported that 90% of investment professionals are weaving ESG considerations into their investment approaches. This is not a passing fad; the proportion of investors consider ESG as core of their investment philosophy is at 33% in Europe, Middle East and Africa (EMEA), 25% in Asia-Pacific, and 9% in North America. And, indeed, the numbers are compelling. In Q3 of 2023, global ESG fund assets had ballooned to approximately $2.7 trillion. The winds of change are blowing, but not every region is experiencing them equally. Europe was at the forefront of this movement, with ESG fund assets commanding an impressive 84% share, followed by the United States with an 11% share. Nigeria’s sustainable finance market is relatively small, but there are significant potential opportunities for tapping into the global sustainability-themed market. While the benefits are widespread, the costs of not taking action could be as high as $450 billion by 2050, according to the Africa Development Bank report. Some growth has been recorded on the back of the government and corporate sector’s efforts. As of 2022, five corporate green bonds valued at ₦32.83 billion and two sovereign green bonds valued at ₦25.69 billion were listed on Nigeria’s exchanges. Total investment in sustainability-focused mutual funds amounted to ₦2.4 billion. Based on the African Development Bank’s estimate, for 2020-2030, Nigeria requires $247.3 billion for its climate finance needs, averaging $22.5 billion annually. With Nigeria’s Climate Change Act and the National Council on Climate Change (NCCC) launched, some vital legal frameworks and structures for building nation-wide sustainable practices are in place, but like many other slow-to-decarbonise economies, there are potential challenges to attracting global sustainability-themed funds. One of the significant hurdles is the heavy reliance on fossil fuels for foreign exchange earnings. A staggering 80% of the government’s revenues come from oil exports. With financial institutions, an additional challenge emerges from the “disproportionate importance on the “Governance” aspect in investors’ decision-making processes, over the “Environmental” and “Social” dimensions of ESG investing.” Hence, “in spite of progress in governance, advancement in the environmental aspect is on the back burner.” A scarcity of expertise in sustainable finance practices presents another hurdle for banks and financial institutions in meeting vital requirements in ESG impact investing and reporting. Limited access to finance in Nigeria constitutes a different set of challenges. While opportunities for sustainable investments exist, such ventures often require substantial financial commitments over medium to long terms. The prevailing short-term financing options in the financing system underscores the need for alternative medium- to long-term funding options, especially for sustainable infrastructure development projects. The prospects of embracing sustainable finance offer compelling advantages for Nigeria. Improved risk management and long-term good financial performance are potential benefits. It also provides a wide range of non-financial benefits. Embracing sustainable finance paves the way for more innovative financial products, such as green bonds and sustainability-linked loans, particularly for financing critical national development projects. Sustainable reporting enhances transparency and accountability, building the reputation of financial institutions as responsible entities. Global investors and lenders increasingly support organizations committed to sustainability. Aligning with the Sustainable Development Goals (SDGs) allows Nigerian financial services players to demonstrate commitment to a sustainable future, impacting economic development and environmental and social well-being locally and globally. Nigeria stands at the crossroads of sustainable finance. This path must now align with global trends to prepare for a future that is economically, socially, and environmentally sustainable. To pave the transition pathways for the country and accelerate progress, below is how stakeholders can drive participation. 1. Develop and implement a national sustainable finance plan: In line with its commitment to global carbon reductions, the federal government has enacted the Climate Change Act and set up the National Council on Climate Change (NCCC).… Continue reading Sustainable Finance: Enhancing Participation Today
Facilitating Listings in Nigeria’s Capital Markets: The Quick-win Solutions
Listing provides companies with a tradeoff between liability, high-interest rate, capital repayment, and equity ownership. It is also one of the top contributors to the performance of capital markets. The fastest-growing markets between 2021 and 2022, including Nasdaq-US, Shanghai Stock Exchange, Euronext, and Tel-Aviv Stock Exchange, are also among the largest hosts of listed companies. As of March 2022, each maintained a high record of 3,767, 2074, and 1,997 and 548 listed companies, respectively. Based on the latest statistics, the market capitalization of listed domestic companies as a percent of GDP in the US is 193 percent, 83 percent in China, and 63 percent in Israel. This performance is even more impressive among the fast-growing emerging economies like Hong Kong, 1,777 percent; South Africa, 311 percent; and Singapore, 189 percent. In Nigeria, market capitalization as a percent of GDP is 37.5 percent. Growth in the number of listed companies in Nigeria’s capital markets raises a big concern for the economy. Over a decade, between 2010 and 2022, the number of listed companies dropped from 217 to 157. There has been slow growth in new investors’ participation, particularly individual retail investors, which has been under six percent of the adult population, grossly below the proportion of household retail investors holding shares in the US and European Union: 35.6% and 19%, respectively. Globally, the effectiveness of the corporate sector is linked to the number of listed companies, which by statutory requirements, adopt the best-in-class standards in corporate governance, management practice, corporate social responsibility, and the business’s day-to-day operations. With more listed companies, a nation can maintain a robust, healthy, and supportive corporate sector. This comes with increased economic benefits, including contribution to GDP, employment, tax revenue, and, in many instances, forex inflow. Therefore, increased listing is one of the ways to stimulate economic growth. It can also be used for the activation of a sector’s growth, as in the case of bank consolidation and recapitalisation in Nigeria, which led to an avalanche of banks successfully approaching the Nigerian Stock Exchange via IPOs (initial public offerings) and secondary issuances. As in banking, this approach will be foolproof for insurance, pension, oil and gas, real estate, mortgage, telecommunication, and Fintech sectors. Listed companies also typically have increased international visibility and attract global investors. Besides access to liquidity and a large investor base, non-financial benefits like exposure to expert analyst coverage impact corporate brands and revenue. Going by basic economic theory, one effective way to drive sustainable growth and promote listings in the capital markets is through policies that address key fundamental macroeconomic issues such as exchange rate, inflation, interest rate, etc. Improved macroeconomic indices provide a friendly economic environment for the growth of existing companies and the establishment of new ones. When companies have a growth history in the operating country or region, a “consideration to list can be taken as a business strategy”. The success footprint in the growth market serves as leverage to promote valuation and access liquidity for business expansion. Once a market (country) has become part of the company’s growth strategy, the decision to list has been simplified. Still, on the benefits of an improved macroeconomic environment, it is worth noting that increased market participation is driven by the market’s attractiveness, which is a function of the country’s macroeconomic conditions and the overall health of the economy. Addressing the most significant macroeconomic issues to facilitate improved capital markets’ growth in Nigeria might, however, require sustained efforts over the long term because of inherent structural problems. In the immediate, therefore, the starting point would be to promote the growth of the capital markets by exploring quick-win solutions. To this end, recommended policy options include the following: 1. Accelerate issuers’ participation a. Facilitate the establishment of small-medium-sized companies: create adequate SME funds that target financing feasible business ideas. Access to seed funding would be conditioned on the scalability of the business to move from a small to a medium-sized company within a definite time. The growth trajectory of the select companies will be closely monitored and supervised. At the growth stage, the companies would be required to raise additional funding from the capital market for business expansion. b. Encourage and incentivise PPP initiatives: establish partnership arrangements between governments and the private sector for laudable projects requiring significant funding through capital markets. Such partnerships should target large organisations/establishments with record performance and credibility. c. Privatise/commercialise public assets: Privatise government assets for efficient service delivery. The expansion strategy by new investors must require significant investments, and part of the investments will come from the capital markets. d. Reactivate sector growth through recapitalisation: industry regulators should encourage growth by mandating companies to recapitalise. This policy approach can be applied in the insurance, pension, oil and gas, real estate, mortgage, telecommunication, and fintech sectors. As part of the funding strategy, companies are likely to approach capital markets for funding. e. Support the efforts of capital market stakeholders to create a regulatory framework for SMEs’ capital raising exercises: this effort will spur additional listings from other private companies that need finance to grow and remain in business. f. Simplifying listing requirements: simplifying and streamlining listing requirements can make it easier for companies to go public. This will require improved efficiency and might entail lessening the regulatory burden, minimizing administrative costs, improving the transparency of the process, and reducing the time it takes to complete listings. g. Create tax and other incentives: offering tax incentives, such as reduced tax rates, to companies that list on the capital markets can be an effective way to encourage listing. 2. Expand the investor base to enhance market liquidity a. Support sustainable projects: with increasing interest among investors, particularly international investors, to invest in projects with ESG (Environmental, Social, and Governance) mandates, both private and public sectors should embark on sustainable projects that can be funded via capital markets. b. Encourage capital inflow: governments should institute policies that will motivate local and foreign investors. These should include an optimal FX regime, ease of capital/profit repatriation and significant tax… Continue reading Facilitating Listings in Nigeria’s Capital Markets: The Quick-win Solutions