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Lagos nic epresentationdecember2016

This Presentation x-rays the Nigerian 2016 Economic Recession from an Engineers prespective and profers plausible solutions

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Lagos nic epresentationdecember2016

  1. 1. NICE: Lagos Chapter Engineers in a Recession Economy: Challenges and Remedies Presented by Engr. Emeka B. Ibeh, MNSE MNICE M.ASCE December 2016 Nigerian Institution of Civil Engineers Lagos Chapter
  2. 2. NICE: Lagos Chapter INTRODUCTION Genesis of the Nigerian Recession. Impact on the Engineering Ecosystem Remedial Measures Conclusion Strategy for 2017 OUTLINE
  3. 3. NICE: Lagos Chapter Introduction The International Monetary Fund (IMF) and the Central Bank of Nigeria (CBN) have officially declared that Nigeria is in Economic Recession and may not regain stability anytime soon. The reality of this recession affects all strata of the Nations productive workforce including Engineering personnel. It is our intention to X-Ray the issues fueling the recession problem and recommend viable solutions.
  4. 4. NICE: Lagos Chapter Problem Definition • RECESSION: a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. • ECONOMY: The state of a country or region in terms of the production and consumption of goods and services and the supply of Money. REMEDIES: Solutions to an undesirable situation. ENGINEERS: Those who develop economic and safe solutions to practical problems by applying math, science and ingenuity.
  5. 5. NICE: Lagos Chapter Genesis of the Nigerian Economic Recession • Inability of the Productive Sector to access FOREX • Over-dependence on Oil(poor diversification) • High inflation rate • Poor Economic planing and Policy conflicts • High Interest Rates • High level of Unemployment
  6. 6. NICE: Lagos Chapter Genesis of the Nigerian Economic Recession • Poor Economic Planning and policy conflicts collude with high interest rates to erode investor confidence leading to a winding down of the productive sector and the resultant scarcity of foreign exchange presently gripping the Nigerian Economy. • A stagnating productive sector fuels the country’s unemployment problem as company’s seek measures to cut overhead costs.
  7. 7. NICE: Lagos Chapter Impact on the Engineering Ecosystem • Increased unemployment for both practicing and graduate Engineers. • Credit Crunch: Banks are unwilling/Unable for fund Large long term Engineering Projects. • Reduced Interest in study of Engineering in Higher Institutions: due to perceived scarce employment opportunities
  8. 8. NICE: Lagos Chapter Impact on the Engineering Ecosystem: Retrenchment Reduce fixed costs, Narrow product offerings Reduce staffing Trim expenditure such as Training, Marketing and RandD Companies seem to be applying a retrenchment approach to business strategy which aim to:
  9. 9. NICE: Lagos Chapter Impact on the Engineering Ecosystem: Resilient Sectors Building Engineering firms, Project Management firms, Costing Engineering (QS) firms. In the case of Multidisciplinary firms, the likelihood is that the spread of activity across many construction sectors provide better resilience to the current recession when compared with specialist firms; these are:
  10. 10. NICE: Lagos Chapter Remedial Measures • Effective Business Strategy • Attraction of FDI’S • Effective Spending • Reduction in Tax rates • Enhanced Access To Credit • Economic Stabilization Emergency Bill (ESEB) • Engineering Innovation
  11. 11. NICE: Lagos Chapter Remedial Measures: Effective Business Strategy • Retrenchment(Most Common) Cutting operating costs Divestment of non-core assets, closure of plants, reduction in employment • Investment Expenditure in advantageous innovation Market diversification • Ambidextrous A combination of Retrenchment and Investment Strategy
  12. 12. NICE: Lagos Chapter Remedial Measures:Attraction of FDI’S • Brownfield FDI’S: Investment (in Dollars) into existing public assets. • Greenfield FDI’S : Investment in form of PPP into new public infrastructure. • Diaspora FDI’S: Investment in infrastructural development by Nigerian In Diaspora. • All FDI sources require government to create the enabling environment to nurture and maintain investor confidence.
  13. 13. NICE: Lagos Chapter Remedial Measures: Attraction of FDI’S “The MELES WAY” • Meles Zenawi(prime minister 1995 to 2012) structured Ethiopian Economy effectively to achieve a GDP above 10%; some benefits include: • Revenue yield from coffee rose from 10% to 70% of international value • Attracted FDI from Nigeria via Dangote Cement using electricity guarantee of N15/kwh resulting in 60% drop in Ethiopian Cement Cost.
  14. 14. NICE: Lagos Chapter Remedial Measures: ESEB • Proposed Bill to accelerate recession recovery Shall seek to create a coherent investment climate Structured to favour the public procurement act Economic Stabilization Emergency Bill
  15. 15. NICE: Lagos Chapter Remedial Measures: Engineering Innovation • Government must actively pursue skill acquisition by its citizenry at all levels • The Engineering community should make greater effort to enshrine the innovation culture amongst its membership. • Engineering graduates should be equipped with marketable skills to arrest the increasing rate of unemployment amongst this cadre of Engineering Community • Agricultural Skills acquisition should be made free as a matter of policy
  16. 16. NICE: Lagos Chapter Conclusion • For Nigeria to resolve the present economic recession Government must create a coherent investment environment to attract FDI’S as successfully applied by developing countries such as Ethiopia • The Engineering Community must give Engineering innovation its pride of place as an indispensable catalyst to economic diversification and progress • Engineering Companies must adopt the most effective business strategy to ensure survival during this economic recession.
  17. 17. NICE: Lagos Chapter
  18. 18. NICE: Lagos Chapter 1. Agriculture is the way to go for Engineers in 2017 and integrated (Zero Waste) method is best. 2. Engineers interested in forming must build in the potential end users directly into the business model as reliance on middle men is the best recipe for failure 3. Engineer must learn to come together into effective partnerships. 4. Agriculture should be left to Agricultural Engineers while Civil Engineers should remain in their profession as the opportunities Within it a limitless. 5.The Qualities of Engineering Graduates from the countries higher institution has to be improves to make them relevant to their chosen profession. Strategy for 2017: Audience Comments
  19. 19. NICE: Lagos Chapter 6. Engineer should acquire soft skills like marketing, Sales seek effective means of advertising their acquired skills. 7. NSE, NICE should fashion out effective engineering Skills acquisition programs. 8. Infrastructural development is indispensable to The country’s drive to come out of economic Recession as only functional infrastructure can Drive economic growth. 9. Civil Engineers must pursue continuous professional Development (CPD) to remain both locally and Internationally competent. 10.The country is in economic recession partly because The Local Engineers are not effective in infrastructure delivery. Strategy for 2017: Audience Comments
  20. 20. NICE: Lagos Chapter References 1. The Lagos Chamber of Commerce and Industry. 2016. “Steering The Nigerian Economy out of Recession”. 2. Construction Industry Council, UK. 2009. “The Impact of the Recession on Construction Professional Services”. 3. Glynn Lowth, Malcolm Prowle, Michael Zhang. 2010.“The impact of economic recession on business strategy planning in UK companies” 4. The Royal Academy of Engineering. 2015. “Engineering for a successful nation”. 5. http://www.werbos.com/E/How_to_Avoid_Depression.pdf. “How to Avoid A Second, Deeper Recession: An Engineering Approach”. 6. Wikipedia online encyclopedia. 2016. “http://en.wikipedia.org” 7. Google Definition. 2016. “http://www.google.com.ng” 8. http://educacinfo.com/economic-recession-nigeria. 2016. Economic Recession in Nigeria: Causes and Solutions

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This Presentation x-rays the Nigerian 2016 Economic Recession from an Engineers prespective and profers plausible solutions

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