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Tag: business environment

  • LG Electronics CEO Sets Strategic Direction for Profit-Driven Growth, Prioritizing Speed and Action

    LG Electronics CEO Sets Strategic Direction for Profit-Driven Growth, Prioritizing Speed and Action

    CEO Lyu Jae-cheol Underscores “Flawless Execution” to Build a Winning Competitive Advantage

    LG Electronics (LG) CEO Lyu Jae-cheol held a press briefing with Korean media in Las Vegas on January 7 (local time), outlining the company’s management direction and priorities. He presented a strategy built on three pillars: reinforcing fundamental competitiveness, accelerating the transition to a high-performance portfolio and strengthening a profitability-based growth structure.

     Lyu said LG must respond to a business environment in which industry boundaries, competitive dynamics and technological cycles are changing faster than ever before.

     “The paradigms of industries and competition are shifting at unprecedented speed. Matching the pace of others will not be enough. We must see the competitive ecosystem clearly and move faster and execute better than our peers to remain competitive.”

     Reinforcing Fundamental Competitiveness and Technology Leadership

    LG will reinforce its fundamental competitiveness by raising the baseline of performance across its entire value chain and widening the technology gap with competitors.

     This effort rests on two pillars:

    • Quality, Cost and Delivery (QCD) excellence
    • Technology and R&D leadership that creates sustainable competitive advantage

    To systematically upgrade performance in product quality, cost structure, design and speed, LG has established an Innovation Drive Division reporting directly to the CEO. This organization will function as a company-wide control tower for transformation across development, manufacturing, supply chain and sales. Lyu said he will personally oversee breakthrough targets and progress in each area.

     In R&D, LG will further concentrate resources on “Winning Tech” – technologies selected based on customer value, business potential and technological competitiveness. These technologies will be deepened and scaled to lead markets rather than simply follow trends. In areas expected to become long-term industry growth drivers, LG will expand partnerships with leading global players to strengthen world-class development and commercialization capabilities.

     Accelerating the Transition to a High-Performance Business Portfolio

    LG will accelerate the transition to a high-performance portfolio centered on businesses with stronger growth, profitability and resilience to market cycles.

    Key areas of qualitative growth include:

    • B2B businesses such as vehicle solutions and HVAC
    • Non-hardware businesses including product & service subscriptions and the webOS platform
    • Online businesses led by direct-to-consumer (D2C) channels

     This portfolio shift is already well underway. The share of these businesses in LG’s total revenue increased from about 29 percent in 2021 to 45 percent in the second half of last year, while their share of operating profit rose from 21 percent to about 90 percent over the same period. LG plans to further accelerate this trend through continued investment, business model innovation and tighter execution.

    The vehicle solutions business is expected to deliver its highest annual performance this year, supported by a strong order backlog and growing demand for components for software-defined vehicles (SDVs) and AI-defined vehicles (AIDVs).

     The HVAC business is positioning itself for future growth through cooling solutions for AI data centers (AIDCs), while the smart factory solutions business recorded KRW 500 billion in orders last year, just two years after commercialization.

     In non-hardware businesses, LG’s product subscription model exceeded KRW 2 trillion in annual revenue, and the webOS platform continues to grow at a double-digit rate, with more than 260 million webOS-enabled devices now in use worldwide. LG’s online D2C business is also gaining momentum, with November sales – boosted by Black Friday – rising more than 40 percent year-on-year.

     Strengthening the Profitability-Based Growth Structure Through AX

    LG will use AI transformation (AX) to strengthen its profitability-based growth structure by improving speed, productivity and execution across the organization.

     While digital transformation (DX) optimized individual tasks and processes, AX is designed to integrate them end-to-end, enabling more autonomous, data-driven and faster decision-making. LG has set a goal to increase overall productivity by 30 percent within two to three years, allowing employees to devote more time to higher-value work, innovation and professional expertise.

     AI is already being applied across development, sales, supply chain management, procurement and marketing. LG’s internal chatbot, LGenie – originally built to support routine tasks – is evolving into a company-wide AI agent platform based on EXAONE, LG AI Research’s foundation model, and integrated with external generative AI technologies including Microsoft Azure AI Services, OpenAI’s ChatGPT and Google’s Gemini.

     Increasing Investment for Future Growth

    Despite ongoing global uncertainty, LG plans to increase investment this year to reinforce its long-term competitiveness and accelerate future growth, while maintaining strict discipline in how resources are allocated.

    Total resources devoted to future growth – including capital expenditures, software and IT, patents, and strategic investments such as M&A – are expected to rise by more than 40 percent year-on-year. A portion of this funding will come from cash generated through the IPO of LG Electronics India.

     Investment will be focused on areas where LG can best leverage its existing strengths, including AI Home, smart factory solutions, AI data center cooling and robotics. In parallel, LG will actively pursue strategic partnerships to expand capabilities and unlock new growth opportunities.

  • LCCI Urges for Balanced Approach in Minimum Wage Negotiations

    LCCI Urges for Balanced Approach in Minimum Wage Negotiations

    The Lagos Chamber of Commerce & Industry (LCCI) calls on all parties involved in the ongoing negotiations regarding the new national minimum wage to consider a balanced approach that reflects economic realities, affordability, and sustainability. The LCCI emphasizes the importance of setting a wage that avoids potential job losses, increased poverty levels, and inflationary pressures.

    Dr. Chinyere Almona, FCA, Director-General of the LCCI, stated, “We urge labour unions to be more flexible and reconsider the government’s offerings. It is crucial to understand how private businesses can afford to pay the set wage without facing operational shutdowns or cutting jobs. Beyond the new minimum wage, our primary concern is fostering a more productive economy with robust infrastructural support.”

    To support this goal, the LCCI recommends several measures for the government to consider:

    • Implement special non-cash interventions that reduce production costs for businesses.
    • Remove import duties on food imports and critical raw materials and significantly reduce the import duty exchange rate on agricultural inputs and other imports with a multiplier effect on prices.
    • Aggressively meter power supply and invest in the sector to boost power supply through enhanced contractual discipline and guaranteed gas supply.
    • Build infrastructure to support local production of essential medicines and upgrade public health facilities.

    Dr. Almona added, “With the government’s commitment to these support systems, low-income earners will spend less on essential expenditures, leading to a better living standard. Labour unions should focus on improving labour productivity supported by infrastructure rather than high wages with weak productivity. The government must invest more in providing the infrastructure required for a productive workforce and a conducive business environment.”

    The LCCI acknowledges the significant increase proposed by the federal government to improve workers’ livelihoods across Nigeria. However, it is essential to consider the fiscal constraints and economic challenges faced by various state governments. Some governors, under the Nigerian Governors’ Forum, have expressed their inability to meet the initially proposed higher minimum wage due to budgetary limitations and the potential risk to essential public services.

    “We urge all parties to agree on a wage that is within the financial capacity of both federal and state governments to maintain economic stability and prevent potential layoffs or cuts in essential services. It is imperative to adopt a wage that supports long-term economic sustainability,” said Dr. Almona. “Over-extending financial commitments could increase borrowing and debt, adversely affecting the nation’s economy. A realistic and achievable wage agreement will ensure workers nationwide benefit without significant delays or discrepancies.”

    Furthermore, the LCCI calls on the government to demonstrate seriousness in reducing the cost of governance and commit to investing in infrastructure that supports productivity and revenue generation. With increased transparency in government spending, future negotiations will become easier as all parties will be aware of the financial realities. The LCCI also advocates for the national minimum wage to be reviewed every five years and for the government to enhance personnel allowances beyond the minimum wage based on basic salaries.

    Dr. Almona concluded, “We call on labour unions to consider the broader business community’s interests in their demands and to be more flexible in negotiations. We urge all parties to work towards a new national minimum wage that promotes a fair deal for all concerned and serves the overall interest of society.”

  • MAN Hails Federal Government’s Suspension Of The Expatriate Employment Levy (EEL)

    MAN Hails Federal Government’s Suspension Of The Expatriate Employment Levy (EEL)

    The Manufacturers Association of Nigeria (MAN), has commended the Federal Government of Nigeria for its decision to halt the implementation of the Expatriate Employment Levy.

    Segun Ajayi-Kadir, mni, Director General/Chief Executive Officer of the Manufacturers Association of Nigeria (MAN) said: “MAN had earlier made a representation to Mr President and copied to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Industry, Trade and Investment, Dr Doris Uzoka-Anite and Interior, Hon. Bunmi Tunji-Ojo, to discontinue the enforcement of the levy and followed up with the aforementioned Ministers. Ajayi-Kadir also added that MAN deeply appreciates the swift intervention of the Minister of Finance and Coordinating Minister of the Economy. 


    We acknowledge the important role of the Minister of Industry, Trade and Investment. We equally recognize the support of the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform,Taiwo Oyedele. Quite importantly, we commend the Minister of Interior for doing the needful in the interest of domestic and foreign private sector investors in Nigeria. There is no doubt that the anxiety that enveloped the business community following the introduction of the levy has abated. 


    Also, the international business community, particularly those with whom we have signed trade agreements, would be reassured of our commitment to creating a congenial business environment. 

  • NGX to continue its drive towards attracting capital around sustainability

    NGX to continue its drive towards attracting capital around sustainability

    Nigerian Exchange Limited (NGX) has said it will continue its drive towards attracting capital around sustainability and will continue to partner with market stakeholders.

    Its Chief Executive Officer, Temi Popoola, stated this during a Physical closing gong ceremony for Guinness Nigeria.

    Popoola while commending the growth of Guinness Nigeria in the last few years, said that the NGX has very big ambitions on sustainability and will continue its drive towards attracting capital around sustainability.

    “We have discussed with Guinness the work they are doing around sustainability and the NGX has very big ambitions on sustainability. We want to make sure that we are one of the leading exchanges in attracting capital around sustainability. We believe it is the right thing to do”, he said.

    Also speaking, the Chief Executive Officer, Guinness Nigeria, John Musunga, said, Guinness Nigeria is proud of being part of the exchange adding that the company’s brand portfolio is down to its strategy of playing across the entire alcohol beverage sector.

    Musunga stated that the company will continue to innovate and continuously grow its margins so that its shareholders can have value for the business they invested in.

    “We do not intend to change or deviate from our strategy. Our results have been stellar and the business is still growing well, up by 9 per cent. We will continuously grow our margins so that our shareholders can have value for the business they invested in. Our outlook is bright especially as the government is taking very bold moves in areas required for business.

    They will be very painful but we know that it will be in the short term and have the conviction that this will favour the business environment and businesses will thrive and deliver shareholders’ return and value”, Musunga said.

    For his part, the Doyen of the Nigerian capital market, Mr Rasheed Yusuf, said that the stockbroking community will continue to support the company and urged the company to continue sustaining its leadership of the market and raise more capital from the market.

  • SLB Opens New Regional Office in Lagos

    SLB Opens New Regional Office in Lagos

    Global technology company, SLB (formerly known as Schlumberger), officially opened its new West Africa regional office in Lagos, Nigeria. In October 2022, the company launched a new identity focusing on energy innovation and decarbonization to address today’s world’s energy needs and forge the road ahead for the energy transition. The new West Africa office reflects this new identity and will optimize employee experience and create a sustainable business environment for all stakeholders.

    Its modern design embodies the company’s bold sustainability roadmap through daylight harvesting, interactive and collaborative hotspots for employees, disability access and other exciting features that bring forward the company’s evolved identity and culture.

    Delivering his speech at the opening in Lagos, Sopiribo Ideriah, managing director for SLB in West Africa countries, said,” As a technology leader, our unmatched market breadth, differentiated performance, and unique portfolio of products and service, has always positioned us for growth and advancement in the energy industry. All of this is owed to our people, who are the backbone of our organization. I want to thank all SLB staff – past and present – for their commitment and passion in delivering high quality services to our customers.”

    The ceremony coincided with the celebration of the 70th Anniversary of SLB’s presence in Nigeria. “For seven decades, SLB has worked in Nigeria as a local company.  In 1952, SLB logged Nigeria’s first commercial oil well in Oloibiri, Bayelsa State, and has since logged several other historic wells in the country.  Our ability to continuously drive technology innovation has led to the development of new oilfield technologies that enhance our customers’ operational performance, while maintaining the highest standards in HSE, ultimately delivering value to all our stakeholders. Investing in local socio-economic projects and developing local talent through our borderless career culture, we have significantly contributed to the capacity development of Nigeria and are confident that we will continue to do business in ways that benefit our people, society, and the country.” Ideriah added.

    Also speaking at the event, Wallace Pescarini, president of the Offshore Atlantic Basin at SLB, said “I would like to take this opportunity to express my gratitude to our various stakeholders for their support over the years, including our clients, suppliers, contractors, and other business partners. We are thrilled to live our purpose of creating amazing technology to unlock access to energy for the benefit of all and could not have achieved this without your trust. As we look to the future and its evolving energy landscape, we remain committed to creating value for our customers and key stakeholders in Nigeria.”

    Following the opening of its regional head office, SLB hosted key stakeholders at a dinner ceremony where the company’s historic past and innovative present were recognized and celebrated.

  • Nestlé Nigeria Announces Q1 2022 Financial Results

    Nestlé Nigeria Announces Q1 2022 Financial Results

    Nestlé Nigeria PLC has announced its financial results for the first quarter of 2022, ending 31 March 2022. The company recorded a revenue of N 110.2 billion against N 87.3 billion during the same period in the previous year, a top-line growth of 26.3%. Profit after tax for the period stood at N 18.0 billion according to the unaudited financial statements of the Company.

    The financial results were reviewed and approved by the Board of Nestlé Nigeria PLC during its meeting held on April 29, 2022.

    Commenting on the results, the Managing Director and CEO of Nestlé Nigeria PLC, Mr. Wassim Elhusseini said, “On behalf of the management and staff of Nestlé Nigeria PLC,
    I am delighted to present this impressive performance of our company in the first quarter of 2022.

    I commend the efforts of the entire team at Nestlé Nigeria PLC, for continuing to thrive under the current difficult business environment.

    We know that the global economic situation and supply chain disruptions will continue to put more pressure on the already challenging business environment. However, we remain optimistic that we can continue to improve our business by empowering our people and ensuring continued supply of essential nutritious food and beverages to consumers.

    We will continue to focus on these two important areas while caring for our communities and business partners, and all collaborators across our value chains to sustain this growth throughout the year.”