Rullion's Blog

Nigerians can be pardoned for doubting talk about the GDP growth. They don’t see the 7 percent GDP on the streets. That is because, as FBN Capital notes in its 2014 economic outlook, “strong non-oil sector growth depends heavily on the informal, unbanked economy, and so would not always be visible”. The economy has performed robustly since 2002. This growth has come from reforms between 2003 and 2007 in the non-oil sector and favourable weather conditions for agriculture (Nigeria’s agricultural output is mainly rain-fed). The informal nature of the economy and shallow level of financial intermediation is reflected in the solid minerals sector, one of the five sectors that grew by double digits in the third quarter of 2013. The sector also got the largest chunk of credit from banks (21 percent) as at March 2013. Building and construction, and real estate also grew by double digits. Globally, between 2002 and 2012, Nigeria was the 13th fastest growing economy; the 5th fa...

Traditional marketing textbooks from the 1960s through the present have always taught the four P's of marketing : product, place, price, and promotion. We were taught to really dig into each P to really understand our product offering and plan an effective marketing strategy. That model remains timeless yet is more focused on a mass marketing perspective. In the 1990s, we were given the four C's: consumer, cost, communication, and convenience. The four C's are a consumer-focused concept that moves us from a mass marketing perspective to a niche marketing one, which is more relevant in today's increasingly digital and personalized marketing landscape.  Now, newer models are incorporating social media and its impact on traditional customer interaction, and there's a debate whether the old models are still relevant. The marketing mix is different for every industry, but traditional marketing still works in our continuously digital world. Smart marketers ...

The Ogun State Government has asked members of the public and prospective investors interested in acquiring landed property in the state to always approach the Bureau of Lands and Survey to make necessary inquiries on the status of such land before parting with money. The Director-General, Bureau of Lands and Survey, Mr. Adewale Oshinowo, stated this in Sagamu while inspecting Areke community, where it was discovered that plots of land earlier allotted to the ECG Group of Companies had been encroached upon by speculators. Oshinowo, who was represented by the Director of Lands Management, Mr. Bola Orekoya, said the Bureau possessed a Geographic Information System, which could chart and bring out clear maps on land in any part of the state and generate relevant information on the status of such land. He said when buyers approach the Bureau, the GIS would be used to ascertain the status of the land they want to purchase and save them from the agony of losing their hard...

If all works as planned, the low density residential neighbourhood of Government Reserved Area (GRA) in the heart of Lagos, Ikeja, will soon witness a boost of its housing units as a developer, has concluded plans to deliver 25 units of exotic estate this year. Christened as Orchid Court estate, Briscoe, a subsidiary of R.T Briscoe Nigeria Plc, and a leading real estate developer, has designed the project in seven different house style including four units of five bedroom detached house, three units of five bedroom semi-detached, six units of four bedroom triplex terrace Types one and two, six units of three bedroom duplex, three bedroom of penthouse apartment and type G consists of apartments, six units of spacious three bedroom apartments and maid room of190 square metres. Each of the house types is with special unique view and serene spatial arrangement. This is complemented with recreation facilities that include beautiful landscaped outdoor, children’s play area, swim...

IT all began as a mutual transaction between consenting adults based on trust; a self-acclaimed property developer on one hand and unsuspecting people looking for a place to lay their heads in a crowded city like Lagos, on the other.  But alas, it was not to be, as once again, another black-hearted scoundrel has struck and over 100 people are at present, looking back and asking themselves why they trusted the smooth talking ‘property developer’ too well to part with their hard-earned money.  Thus yet again, another group of Lagosians have been conned and their search for a decent accommodation has ended in tears.  But if this hapless group thought the Police in Itire Division would come to their aid, they have so far been mistaken, and rather than watch their money disappear into the con artist’s pockets as a result of the unwillingness of the police to do their duty, the dupes decided to write a petition to the Inspector General of Police, Mohammed Abuba...

According to the International Labour Organisation (ILO), Africa’s working-age population is estimated to have reached over 490 million in 2012, representing a quantum leap of 259% since 2000 at an annual compound growth rate of 2.8%. Therefore, employment of the continent’s teeming labour population is key to economic development within the region and indeed, globally. Sub-Saharan Africa’s absorption of its working-age population in employment compares favourably to other regions as contained in the ILO’s 2013 global employment trends report.Subsequently, total estimated number of jobs created in the Nigerian economy for the first quarter of 2013improved by 12% over the previous quarter. This development, in line with the latest job creation report released by the National Bureau of Statistics (NBS), indicate that 174, 326 new jobs were added to the nation’s economy.  Overall, conducting quarterly labour force surveys is a positive trend for Nigeria considering ...

The federal government yesterday announced that the nation's cement industry had attracted an additional investment worth $8 billion,  based on the  successful implementation of the  Backward Integration Policy. The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, who disclosed this during a meeting with the Indian business community in Lagos, stated that the federal government was targeting an increased production capacity in the sector, from about 28.5 million metric tonnes in last year to about 38 metric tonnes in 2014.   Aganga, said: “We have had a major success in the cement sector. For the first time ever in the history of Nigeria, we exported cement in 2013. We had capacity of 28.5 million metric tonnes last year. Our current demand is between 18 to 20 million. However, this year, it should be about 39 million metric tonnes, and we should have one of the largest, if not the largest cement factory in the world in Nigeria.

The MPC increased the already controversial Cash Reserve Ratio on public sector deposits from 50 to 75 per cent The decision by Nigeria’s Monetary Policy Committee, MPC, to increase the already controversial Cash Reserve Ratio, CRR, on public sector deposits from 50 to 75 per cent would in the short term, have a shocking effect on the nation’s money markets, Bismarck Rewane, a finance analyst and Managing Director, Financial Derivatives Company, has said. “The impact of this decision on money markets will be a shock effect in the short run and a re-turn to equilibrium rates within six weeks”, Mr Rewane said in a report analysing the MPC’s decision. He said the first time the MPC increased the CRR (the percentage of funds banks have to keep with the Central Bank) on public sector deposits in August 2013, an estimate of N1trn or 6.84 per cent of Money Supply (M2) was debited. “At that time, the impact was a spike in interbank rates of approximately 800 basis points (bps...

It is no longer news that real estate business is a lucrative business not only in Nigeria but anywhere in the world. Every year, Billions are made from this business. Intermediary: This is perhaps the most common form to enter into a real estate business. An intermediary is the one who links a buyer to a seller or a seller to a buyer of real estate properties. They act like middlemen and they are generally known as real estate brokers or real estate agents. A broker earns a brokerage commission for every successful deals. You need to be a licensed broker in order to taste the real wealth of this business. The licensing norms for real estate brokers are different in different countries. However, many people who venture into this line of the business don’t have their licenses in Nigeria.  To be very successful in this business, you must have good contacts and network.

Housing is one of the most basic of human needs. Provision of houses through the creation of mortgages is taken for granted in developed countries; however, it remains a major challenge in developing countries, especially in sub-Saharan Africa. All governments in Nigeria since independence highlighted housing as a major priority. Unfortunately for over 53 years of its independence, Nigeria is yet to develop a vibrant mortgage market. Samson Nyam, a civil engineer by profession, who currently serves as the urban habitat specialist at Habitat for Humanity’s Africa and Middle East area office, in this write-up, examined urban housing challenges in Nigeria. Nigeria, the most populous African country, is facing considerable housing challenges and is in need of sustainable housing solutions that have the potential to be scaled up to impact the almost 15 million inadequately housed people who live there. To a large degree, many of the problems the poor face when moving to...

The Ogun State Housing Corporation has said that it is planning to deliver low and middle income housing estates across the state. In a statement, the corporation said its flagship scheme, Plainfields Estate, was already being developed as a community housing prototype that would provide the citizens an opportunity to buy into its plan over the next few years. According to the statement, the estate will, upon completion, have a variety of apartment units. The statement read in part, “The corporation will deliver houses and serviced plots across the three senatorial districts, but will avoid a blanket approach. “This means that these projects will be tailor-made to suit the needs of the locality and the market. Everyone who has recognisable means of livelihood in the formal and informal sectors is qualified to buy. “However, the corporation is keen to help those who need mortgages and who are first time buyers.  Because our objective is to encourage home owne...

I spent last week in Indonesia, working on a series for BBC Radio about four of the world’s most populous non-BRIC emerging economies. The BRIC countries—Brazil, Russia, India and China—are already closely watched. The group I’m studying for this project—let’s call them the MINT economies—deserve no less attention. Mexico, Indonesia, Nigeria and Turkey all have very favorable demographics for at least the next 20 years, and their economic prospects are interesting. Policymakers and thinkers in the MINT countries have often asked me why I left them out of that first classification. Indonesians made the point with particular force. Over the years I’ve become accustomed to being told that the BRIC countries should have been the BRIICs all along, or maybe even the BIICs. Wasn’t Indonesia’s economic potential more compelling than Russia’s? Despite the size of its relatively young population (a tremendous asset), I thought it unlikely that Indonesia would do enough on the econom...

Close watchers of Nigeria’s real estate market say 2014  will be an interesting year in which investment  will grow a lot more than  was seen in 2013. They posit that the market presents an interesting outlook for investment in the commercial sector in the new year. They add however that in the course of the year, there will be some shocks, which they explain would be coming from political activities and macro-economic indices.

Embattled National Chairman of the Peoples Democratic Party (PDP), Alhaji Bamanga Tukur, has resigned,  THE PUNCH learnt. A senior member of the divided National Working Committee of the party, who spoke with our correspondent in Abuja on Wednesday, said President Goodluck Jonathan will inform the meeting of the National Caucus of the party tonight in Abuja about the development. With the resignation, Tukur has escaped being suspended from the party by the members of the NWC if he had refused to resign. Tukur was to be suspended by about eight members of the NWC, while the National Executive Committee of the party would ratify his suspension on Thursday. Meanwhile, the wife of the President, Mrs. Patience Jonathan is said to be scheming to install Tukur’s successor. The First Lady is said to be rooting for the appointment of the Minister of Transport, Sen. Idris Umar. However, the governors are resisting the move.