Consumer potential: Three Nigerian city clusters to compete with Lagos


Nigeria’s retail and wholesale trade industry has the potential to grow by 7.1% per year, and by 2030 could be the largest contributor to the country’s GDP, according to recent report by McKinsey Global Institute. Sales of packaged food and beverages are expected to grow by 6.8% a year, contributing around 85% of the growth in consumer goods.


Nigeria’s major cities can be looked at as broader clusters. Image: MGI
The report, Nigeria’s renewal: Delivering inclusive growth in Africa’s largest economy, estimates that demand for consumer goods could more than triple by 2030. The largest economy in Africa is seeing a rising consumer class, creating a notable opportunity for manufacturers and retailers of fast-moving consumer goods such as food, beverages and personal and health products. Currently consumption is estimated at US$388bn a year but is expected to rise to $1.4tr in 2030, with 35m households earning over $7,500 a year.

“Based on data from other economies on how consumption changes with rising incomes, we see demand in Nigeria poised to accelerate in such categories as fruit juices,” illustrates the report.

“Capturing emerging consumer demand, however, will require smart choices about where, when, and how to enter Nigerian markets. It will also require specific capabilities that international companies especially may need to develop.”

One strategy for consumer facing companies in Nigeria is to adopt a city and regional approach, as opposed to a nationwide approach where distinct differences in culture, demographics and wealth exist. While Lagos, with an estimate of 15m residents, may be the go-to city for companies targeting consumers, McKinsey suggests three regional clusters of cities that together produce sizable populations to rival Lagos.

“Companies playing in all three of these clusters could target 20% more households earning above $7,500 than in Lagos,” notes the research.

A six city cluster around the Niger Delta in the southeast

Port Harcourt, Warri, Benin City, Aba, Enugu and Onitsha make up the six city southeast cluster. Its proximity to oil wells has led the region to be a hub of activity for oil companies and foreign investment.

According to the report, total GDP in this cluster alone is $63bn, which is a close rival to Lagos’s GDP of $68bn, despite having far fewer households. Both Port Harcourt and Aba have considerably higher consumption per capita than Lagos. Port Harcourt, followed by Benin City, Onitsha and Aba have the largest populations within the cluster.

Companies looking to target the luxury segment might want to especially consider Port Harcourt, the capital of Rivers State, which has the highest consumption per capita in the country ($6,843 in 2013). The city has one of the largest consuming middle classes in Nigeria with household incomes between $20,000 and $70,000 a year. It has access to two of the country’s busier ports and is home to the Port Harcourt Airport.

Ibadan, Ogbomosho and Ilorin, just north of Lagos

These three cities are within close proximity to Lagos. Ibadan (the capital of Oyo State) is the second largest city after Lagos, and has a fast-growing consumer market. While Lagos has over four times the number of households as Ibadan, consumption per capita of Ibadan in 2013 was $4,562, rivalling Lagos’s $4,710. Ibadan also has a large emerging consumer class with annual household incomes of between $7,500 and $20,000, and one of the larger consuming middle classes in the country with incomes between $20,000 and $70,000 a year.

According to a recent African Development Bank (AfDB) report, Tracking Africa’s Progress in Figures, Ibadan is one of the top 10 fastest growing cities in Africa.

Northern corridor cluster of Kano, Zaria and Kaduna

This cluster holds potential for consumer businesses looking for sizable populations in northern Nigeria. Kano is the fourth largest city in Nigeria, and Kaduna the seventh biggest.

This year, South African retailer Shoprite launched its first outlet in Kano, while Massmart opened a Game store just before June. Despite the potential security risk posed by Islamic militants in the region, Massmart’s Africa director Mark Turner said at the Reuters Africa Summit in April: “I always want to be bold enough to say, you can’t be in Nigeria without being in Kano.”

More Onitsha Business concerns!

Lalaclala front page please!

Housing industry is not doing bad at all!. A lot of investments are springing up in Onitsha metropolitan area!

More Onitsha exotic Houses/ Real estates!

Onitsha Housing Industry is Experiencing Boom!. Here new Shopping Malls rising up every where in the City!

Investors are Falling over themselves to invest in Onitsha because of govt renewed drive to make Onitsha/Anambra State the number '1' Investment destination in Nigeria after many years of inactivity!. The slogan now is...Think Investment! Think Anambra State!

New International Market Coming up!

More investments Coming up!

Business Plazas & Malls!

Onitsha Chamber of Commerce inaugurates 11th president, charts new frontiers in business

The commercial nerve centre of Onitsha, Anambra State was agog recently during the inauguration of the 11th President of the Onitsha Chamber of Commerce, Industry, Mines and Agriculture (ONICCIMA).
At the event, the new ONICCIMA boss, Uche Apakama, a renowned pharmacist and the managing director of Pax Pharmacy Group, promised to unite all chambers in Anambra State to establish a single state trade-fair.
He said that he was seeing a situation where the three chambers would have one-voice to enlighten and unite traders and manufacturers more.
Apakama said that the state should have a unified trade-fair yearly, which would be tagged “Anambra International Fair,’’ which would not just promote trade and commerce but also enrich the culture of the state
He said that the chamber would vigorously pursue an effective and responsive leadership guided by consistent interventions on issues bothering on the business community in Anambra and the entire South-East.
“I would make it imperative that all industrialists, business operators, service providers, market associations and professional bodies in Onitsha and environs realize and appreciate the need to belong to the chamber so as to speak with a strong and unified voice in matters of common interest,” he said.
The new chamber boss said that he would work for the realization of the “the Four- Point Development Agenda of Governor Willie Obiano-led administration in Anambra State”.
He said that the chamber would relate with relevant ministries, agencies, and departments, as well as development partners to create opportunities and assist in driving Obiano’s dynamic developmental plan.
He said that the chamber would strive to play a leading role in the drafting and fashioning of Anambra economic policies by establishing a formidable team of experts that would advise and complement effort of the government.
“ONICCIMA under my watch is determined to establish cordial working relationship with the Anambra State House of Assembly in her onerous task of giving good legislation to the state, just as it will play an active role in preparation of the state budget.
“ONICCIMA is equally poised to facilitate trade in Onitsha and environs, we shall continue to offer service like letters of reference and processing of travel documents such as visas for members seeking such.
“Our chamber in collaboration with NACCIMA will provide opportunities for members in international trade through trade missions in and outside Nigeria and assist in reaching bilateral trade agreement with interested parties.
“We will aggressively advocate for the development of Micro, Small and Medium Scale Enterprises (MSME) in the state and work towards being the focal point for the development of MSME in terms of access to funds, assistance with feasibility studies and business plans,” he said.
Also speaking, the Director-General and Chief Executive of Standards Organisation of Nigeria (SON), Dr Ike Odumodu, challenged Igbo traders not to compromise quality and desist from importing into the country sub-standard products from China and other countries at cheap prices so as to make enormous profit at the detriment of people’s lives and the local consumers.
Odumodu revealed that when he visited China, he asked them why they dump into Nigeria products they cannot use in their own country, and the Chinese told him that it was some Nigerian businessmen who gave them specifications in order to produce products at cheaper rate for them.
He lamented that Nigeria lost leading multi-national companies like Berec, Michelin, and Dunlop, among many others, due to this massive importation of cheap and substandard products into the country.
He also said that this has made Nigeria to lose opportunities to employ their teeming youths in such businesses and local ones, stressing that no nation can survive and grow to become developed economy by concentrating in imports as Nigeria is currently doing.
He then advised Nigerian businessmen to work hard for their products to meet international standard if they want to gain access to the global market.
In his speech, the Anambra State Commissioner for Industry, Trade and Commerce, Mr Ifeatu Onejeme, said that declining oil revenue has made it imperative for the diversification of the economy, which he said Governor Obiano has started.
He said that with the prevailing situation, members of the chambers who are entrepreneurs should see it as an opportunity to join hands with the state government and the governments in the South-East zone for economic revival and emancipation.
Taking full cognizance of the dwindling fortune of oil revenue in the country and the deflationary effects of economic activities, ONICCIMA called on the governors of the South-East to step up moves toward creating enabling environment for the promotion and growth of export business in the zone.
The chamber in a communiqué issued after the annual lecture series tagged: “The Onitsha Perspective,” pleaded with President Muhamadu Buhari not turn off his eyes on the 2nd Niger Bridge project which was awarded to Julius Berger by his predecessor, asking him to as a matter of urgency complete the project.
The chamber also urged the governments of the South-East states to fast-track the growth and development of non-oil export business in the zone, stressing the need for the state governments to quickly revive, empower and strengthen the committees on export in their various states for more effective actions on export business henceforth.
The communique was signed by the President, Mr Uche Akpakama, the Director General, Mr Dominic Ajibo and other top officials of the chamber.
In a chat with notable transporter and the Chairman of GUO Group, Chief Godwin Okeke, he urged traders to think of diversifying their businesses beyond buying and selling in order to catch up with the global developments in business.
He pointed out that businesses such as farming, fast food, confectioneries and exportation are currently paying off than importation because of inflammation in exchange rate, high level of competition among importers and fakery of imported goods.
He regretted that Onitsha was yet to realize its potential in business because of over dependence on buying, selling and importation.
Okeke, however, noted that the security challenge, which hampered and jeopardized the potential and growth of Onitsha over the years, had been resolved by Governor Obiano.
“The major challenge facing Onitsha is lack of steady power; if not, the commercial city has enough potential to catch up with Lagos and other major commercial cities in the world. We appeal to President Muhamadu Buhari to put more effort on power generation and distribution,’’ he said.
Okeke thanked ONICCIMA for organizing the lecture, adding that the lecture was not just thought provoking but also an eye-opener.

Lalaclala come & see news!!!

Onitsha importers embrace Access Bank’s FLOW for importation made-easy

Importers in Onitsha, Anambra state have restated their determination to embrace Access Bank’s offer to assist them in solving all the bottlenecks associated with their importation businesses.
They said that anything that will guarantee cheaper, safer and faster delivery of their goods to their warehouses would be generally accepted.
Onitsha-based importer, Chief Maduka Adimora who disclosed this shortly after a one-day seminar organized by Access Bank Plc to introduce its newly innovated Logistics Worldwide Scheme, FLOWS product to the traders, said importers go through hell to deliver their imported goods.
Adimora identified bank and government policies, freight discrepancies, customs clearance and other bottlenecks as some of policies militating against importation in the country.
Earlier, Access Bank management had organized the seminar to sensitize them on the need to embrace the new FLOW product for easier and cheaper importation of their goods, adding that the product was formulated by the bank in partnership with GMT Nigeria Limited, a world-wide logistics providers for fast clearance and delivery of their imported goods.
At the programme which took place at Lumen Hotel and Suites, GRA, Onitsha and attracted over 2,000 traders, mainly importers, exporters and distributors, the Managing Director of Access bank, Herbert Wigwe told the audience that Access Bank has formed partnership with GMT Nigeria Limited to assist the importers make their business easier, safer, faster and cheaper with the new FLOWS product.

Obi of Onitsha tells Buhari to fulfill his campaign promises

ONITSHA – The Obi of Onitsha, Obi Nnaemeka Alfred Nnaemeka Achebe at the weekend urged President Muhammed Buhari to fulfill his campaign promises in line with the All Progressives Congress, APC manifestoes.
He said President Buhari had made a good start by systematically identifying the rots in the system such as endemic corruption in high places, the NNPC conundrum, inefficiency in governance and impunity in public life.
Achebe who spoke at his 14th Ofala festival in Onitsha, Anambra state, also commended immediate past President of the country, Dr. Goodluck Jonathan for displaying uncommon statesmanship by conceding defeat without recourse to the law courts.
He also urged Buhari to give urgent attention reflating the economy and ultimately creating new employment opportunities and improving the well being of the ordinary citizens, adding that the president should to run an all inclusive government for all Nigerians by all Nigerians, irrespective of the voting pattern in the election.
According to him, ” The purpose of democracy, after all, is plurality, particularly as it exists in our country. It is also our duty as electorate to pray for and give Mr. President all the necessary support to govern us aright”.
The monarch also stated that it was unhealthy by any standards that the investments and fixed asset of Ndigbo were mostly outside the Igbo land which he said in turn was yearning for investments and development.
“I therefore urged our people to diversify and balance their investments and enterprises everywhere else. That makes sound sense as has been manifested by other great industrial nations, such as USA, Japan, Germany and lately China” he stated.
In his remark, the Anambra state governor Chief Willie Obiano commended the people Onitsha for the displaying of their rich cultural heritage and holding strongly, saying that Onitsha was one of the town with the richest culture and tradition in the country.
He said that his administration will continue to partner with the traditional institutions in settling disputes that emanates among the people, stressing that Igbo culture will not go into extinction.
The Ofala festival was graced by Senator Stella Oduah representing Anambra North Zone; Vice-Chancellor of Nnamdi Azikiwe University, UNIZIK, Prof. Joseph Ahaneku; representative of former Ghanian President, John Kuffor; Speaker of Anambra state House of Assembly, Hon. Rita Maduagwu; traditional ruler of Ndikelionwu, Prof Chukwuemeka Ike; Prof Elochukwu Amaucheazi, among others.

Onitsha is just beautiful!.... This is why Tourism industry is booming!

I can see a new hotel in the last picture!

Investors are like printing Houses here in the City of Industries!

More Onitsha Industries!

Anambra stops work at on-going Onitsha motor-park project

ONITSHA—The move by some unidentified persons to erect a motor park at the Housing Estate, Fegge, Onitsha, Anambra State end of Enugu/Onitsha expressway was yesterday put to a stop by Anambra state government which issued a ‘stop work’ order.
Handing down the ‘stop work’ order with immediate effect, shortly after his impromptu visit to the project site, the Chief of Staff to Governor Willie Obiano, Prof. Joseph Asika who was sent to the site by the governor described the project as an illegal motor park, adding that flowers should be planted within the site as the only thing suitable for that environment.
Asika who also ordered the dismantling of a box culvert under construction on the side drainage, wondered why a sane person could commence construction of a motor park without approval from either the federal or state Ministry of Lands, insisting that the site is meant for flower pots to help beautify the environment.
The Chief of staff who stormed the project site at about 2.30 pm yesterday to see things for himself, based on complaints from the President-General of the Housing Estate, Chief Ikechukwu Odimegwu Omus and public outcry from Mr. Ekene Ikebudu and other residents, posited that such projects if allowed to be constructed would make the area unsafe for the residents. He also took photographs of the site to ensure that work did not continue after he had Handing down the ‘stop work’ order with immediate effect, shortly after his impromptu visit to the project site, the Chief of Staff to Governor Willie Obiano, Prof. Joseph Asika who was sent to the site by the governor described the project as an illegal motor park, adding that flowers should be planted within the site as the only thing suitable for that environment.
Asika who also ordered the dismantling of a box culvert under construction on the side drainage, wondered why a sane person could commence construction of a motor park without approval from either the federal or state Ministry of Lands, insisting that the site is meant for flower pots to help beautify the environment...... Not Business as Usual in Onitsha!

A delegation of Irish investors who propose to partner with Anambra State in Affordable Housing Scheme, durable road construction and waste to energy project revisit Anambra to concretize their investment proposal with Anambra State Government.

After an investment meeting with ANSIPPA team, the group of Irish investors made some technical visits to various dump sites located in Nkwelle Ezunaka, Nkpor, Nnewi and Onitsha, to have a feel of the dumps sites in Anambra for waste to energy project.

Represented on the visit are Dr. Collins Okehie (leader of the Irish delegation), Anthony Duncan (Director for sales, Affordable Building Concept), Brian Connolly (Chairman Westin Corporation, Ireland), Emeka Okoye (Special Adviser, Works), Prince Ifeanyi Anugwu (SA, Investment), Emeka Ezegbu (SA, Finance) and representatives from State Ministry of Lands, Works, Environment and Agric.
Invest Nigeria... Think Anambra

The Massive increase in the population of Onitsha metropolitan area from mere 1 million to now over 4million is a huge challenge to the govt on the areas of waste collection & waste disposal!. To keep this City clean is a Herculean task,but with proper planing, it can be a multi billion business!.Here are some of the equipment supplied by Innoson Ltd Nnewi for the collection & disposal of waste in the City!

More!

Road infrastructure have improved generally in the City,but the inner streets still need a lot of improvement!.More Fly-Over bridges & Underground road crossings should be built at MCC, Ezeiweka rd linking Obodoukwu Street Okpoko, Uga Street, Mgbuka Obosi first gate linking Okpoko,Obosi bye pass should be extended to Odekpe etc. There are about 8 roads in the City that needs to be dualize immediately!

Mehn, I remember my journey coming back to the east with a friend that has never been to the east. As soon as we crossed that Niger bridge and saw tall houses, she was like "Mehn, Igbo people are rich ooo". First thing she said and we're still on the Niger bridge

More Industries in Onitsha!

Onitsha

Surge in insuring AB InBev’s debt ahead of possible acquisition



Credit-default swaps’ rise shows concern over AB InBev’s third bid to acquire competitor SABMiller


LONDON — The cost of insuring Anheuser-Busch InBev’s (AB InBev’s) debt is surging on concern that the Belgian brewer may need to borrow a record amount of debt to buy SABMiller.

Credit-default swaps (CDS) on AB InBev rose to a three-year high of 86 basis points from 66 basis points on September 15, the day before it approached its South African competitor. The contracts exceed those of its smaller rival by a record 23 basis points, compared with five basis points last month.

SABMiller has snubbed three takeover proposals as too low, including a potential offer of £65bn on Wednesday, despite support for the overture from its largest shareholder. The offer would require AB InBev to borrow about $64bn of new debt, analysts at CreditSights wrote on Wednesday. "The CDS market appears to be concerned over AB InBev’s continued efforts to acquire competitor SABMiller with its latest bid of over $100bn," Diana Allmendinger, a director at Fitch Solutions, wrote on Wednesday.

AB InBev had lined up banks, including Bank of America and Banco Santander, to arrange as much as $70bn in financing for the deal, people familiar with the matter said last month. It planned to use bridge loans from banks that it would refinance in the bond market, chief financial officer Felipe Dutra said on Wednesday.

The deal might end up being the fourth biggest acquisition of all time if it goes through.

Onitsha is now littered with Industries both indigenous & multi-nationals!.Most of these industries supply Onitsha & the whole Nigeria with much needed goods & services!.

Wonderful

I'm very much impressed with these developments

investnow2013:
...

is there no such developments in nnewi Or so ?

A CITY OF THUGS YOU MEAN .. THE INSECURITY IN THAT TOWN MAKES IT IMPOSSIBLE TO INVEST MEANINGFULLY.. ONLY CRIMINALS WITH LIKE MINDS CAN SURVIVE IN THAT HELL..THE BEST THING THAT HAPPENED TO THE EAST WAS BAKASSI BOYS .. CREWD AS THEY WERE THEY BROUGHT ORDER TO THE EAST.. ONITSHA IS SO UNSAFE.. THEY ALL ACT LIKE THEY LIVE IN HELL .. SO HOSTILE TO THEIR OWN TALKLESS OF TO STRANGERS .. EVEN COMMUTERS DRIVERS AND PASSENGERS ALIKE FEAR TO BE STUCK THERE BY 7.. BEING A GATEWAY TO THE EAST.. THE INSECURITY HAS TO BE HANDLED ..AND FAST ..