By Ayo Alonge
CHAIRMAN of Cornfield Group, Babatope Agbeyo, is undoubtedly one of Nigeria’s foremost business moguls with chains of companies in Nigeria and around the world.
In this interview, Agbeyo laments unstable government polices, capital flight, outrageous foreign exchange rates among others which are problems plaguing the Nigerian business environment. He however, proposes ways out of the recession and for revamping the Nigerian economy.
.By Ayo Alonge [email protected]
Chairman
In this interview, Agbeyo laments unstable government polices, capital flight, outrageous foreign exchange rates among others which are problems plaguing the Nigerian business environment. He however, proposes ways out of the recession and for revamping the Nigerian economy.
As a company, what challenges do you face in the midst of the ongoing economic recession?
The major challenge we face is lack of foreign exchange because our business is conducted in dollars. We are comfortable doing business in Nigeria and even outside Nigeria though.
The recession has really affected a lot of Nigerian firms and foreign firms in Nigeria. Is there a likelihood of you relocating Cornfield Group or closing shop someday?
No! We won’t ever leave Nigeria but rather bring money from abroad into Nigeria. We have about two or three of our products that can sell anywhere in the world and certified for the global market as well as our patent. We want a situation where you enter any store abroad and you pick a made in Nigeria product and the dollar you are paying is coming to a bank in Nigeria. Nigeria should be concerned about developing human capital.
Your company has a big business venture in the US. Now that Donald Trump has emerged president, don’t you also nurse the fear that his administration may not favour Nigerian businesses?
America has a boundary. The problem is that people don’t look inwards to examine their own potential. There is nothing Trump can do to a Nigerian businessman there, unless you are an illegal immigrant over there.
As the Chairman of Cornfield Group, with your wealth of experience from traveling across the world on business missions, how would you compare the Nigerian business climate to what is obtainable in the rest of developing or developed countries?
I am a patriotic Nigerian. Our problem is that we don’t have a stable policy making mechanism. Other governments make policies that enable investors do their business very well and there is none that can cheat the government, because there is a system to guard against that. The economy of Nigeria is not that conducive and so businesses here are a bit hard to run. We have a volatile policy making mechanism and successive governments keep changing policies especially taxation policy. Every country has its own peculiar problem that businessmen can tell you about but there are hydra-headed problems inherent in the Nigerian system.
Are you not bothered that sometimes, investors like you don’t usually get returns on your investment, particularly when the system has some hydra-headed problems, like you have rightly put it?
It depends on the type of business you go into and your starting point. For every business, there is a challenge. If you are able to sail through it all, then you are a real investor. The moment you start nursing fear as a businessman, you may not make it. When you go abroad, you see some companies that have been existing even for over 300 years. What keeps them thriving is the quality of their services.
One of the major things that you may want to talk about is the foreign exchange rate and how it has affected you. What’s your take on this?
It is affecting us and that is why we are going global. Our dream is to be able to sell finished products.
Is it always possible for Nigeria to manufacture finished products without importing anything at all?
That depends on the policy makers in this country. They don’t look at areas where we have comparative advantage. Industrializing Nigeria is a gradual thing and we can get out of the recession gradually. It is easy for China to produce Apple Computer products in China and export them to America because they have the manpower.
What are we not getting right in this regard?
What we are not getting right is planning.
Some would say that made in Nigeria products are quite substandard and hence most people don’t patronize them. How much of confidence can we have in made in Nigeria products?
Where is Apple computer and iPhone made? The original maker is the person that does the brainwork. If Cornfield is exporting calculators and Mathematical sets to China and the revenue is coming back to Nigeria, which country is making it? We should always look at the word ‘destination’.
So, in what areas has the Standard Organization of Nigeria been lagging behind on enforcement of quality?
The thinking of most investors is myopic. If my thinking is about making a product that can sell in Nigeria alone, then I am not a good investor. SON is doing its own job according to Nigerian standards, which is quite different from the standards of others across the world. We are always in a hurry to produce here without planning. What we get in return is garbage in, garbage out. If your product is good, you don’t need to be afraid of SON.
The Federal Government intends to borrow $30 billion all in a bid to get out of the recession. Do you think this is a step in the right direction?
As an investor, at times, I borrow from banks. It depends on how you use what you borrow. If borrowing at a lower interest rate is the way out, I don’t see anything bad in it. I hope they won’t borrow and use the money to finance the budget, but when you borrow to establish industries, then it works.
Most of our industries have been taken over by foreigners. Is this a plus or a minus for our economy?
That is not a bad thing. They are coming with their money.
But they later repatriate their profits to their home countries…
That is where our leaders are not patriotic. See MTN, DSTV and Shoprite. How many Nigerian companies are flourishing abroad? That is a big minus for our leaders and us. I heard MTN repatriated about $13 billion to South Africa and our lawmakers are merely debating it in the House. These people make the money here and move it out, but if there is a policy that kicks against that, then it would be fine. The Corporate Affairs Commission (CAC) isn’t also performing its duties because they are to quiz foreigners before registering them.
Are you saying that you don’t have expatriates in Cornfield Group?
We have partners. I am talking about giving jobs to competent Nigerians who can do it and even better. Taking money out is called capital flight.
Should you be appointed the Special Adviser to the President on Economic Planning, what would you do to revamp the economy?
Thank God he will never appoint me because I am an entrepreneur who knows little about the economy. Advising the president would be very tough but if I were him, one thing I would look at is the operations of foreign companies in Nigeria. Local content matters in the area of growing your economy.
Is there likelihood you’ll contest election any time in the future?
God forbid! I have told people that anytime you see my poster trying to contest in an election, take me to a psychiatric hospital.
How do you unwind?
I relax and I love to be with my family and my staff here in the office. That is how I catch my fun because I don’t drink and I don’t smoke.