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Nigeria Report

Marcopolis presents Nigeria Report focused on topics such as investments, power and hospitality, featuring interviews with Nigeria's leaders. The sectors under review in this issue are banking, construction, energy, industry, logistics, real estate, tourism and many more. 

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InterviewsSeptember 05, 2016

FROT Group Nigeria: "Be Part of the Solution"

Frank Momoh, President of FROT Group
Frank Momoh, President of FROT Group
Written by Dominika Bzduchova
Published: September 05, 2016

Interview with Frank Momoh, President of FROT Group

The first question relates to the business environment nowadays in Nigeria. You are a private entrepreneur. What is your overview of doing business in Nigeria nowadays? Where is the country heading? What are the main obstacles?

I think with the position we now find ourselves in with having a new government, there is a clearer direction with a new road map for where we want to get to. In terms of business, the policies are more directed and more specific. I think the policies that we have now are creating improved confidence for investors to come into the investment space. For example we now have a better Forex policy so now investors understand just how their money can be utilised and invested and they have a better exit strategy. I think a clearer policy direction is a very good thing for Nigeria and it is a plus for the private sector to be able to bring in foreign investors and FDI into the country.

What about the sectors that you operate in? There are three major sectors that the group is involved in. How is the current situation affecting them?

Fiscal policy affects every sector. One of our subsidiaries is very import based which means we need Forex to do our business and because of the volatility of the foreign exchange compared to the Naira in the last few months, it has been a difficult area for us to operate in. Now as I said, with the new government policy it is looking better.

Tell us about FROT Group. How long have you been in the market? What is the idea behind the group?

FROT Group is the umbrella under which we operate in different sectors. We have 4 different active subsidiaries right now. We have Builders Home Stores which is a bathroom and tiles solution company. We have Building Associates which is a real estate company. We are also really into energy right now so we have FROT Energy Services and we also have FROT Telecoms. We are also involved in media and so we have Enigma Media Production. The idea behind FROT Group is that we wanted to have just one decision making umbrella which would allow for a better allocation of cash resources. Since we put all of our subsidiaries under the group it has been fantastic because 90% of those under the group now understand the vision and they see it clearly.

The need for the foundation arose after we looked at our contributions in terms of corporate social responsibility. We realised that we had done a lot but not in a structured or organised manner.

Everyone is now aligned.

Yes. We share the same vision between all of the subsidiaries. Before, we had conflicting visions for each subsidiary but now the group has come together there is just one vision and that is sustainability: providing sustainable solutions for the customers and for society.

Can you tell us a bit more about each company?

The one that I call the “mother of all of the subsidiaries” is Building Associates, which started in 2004. It is our real estate company. The idea of Building Associates is to provide affordable and good quality housing for the people. We want to be responsible with the society in which we operate. Over the last twelve years we have continuously stamped out our reputation in that real estate space. We are known for making good on our promises of delivery, for providing affordability and for providing good quality. We are specialised in both commercial and residential properties. We build our own properties and sell them. We have excellent relationships with our clients.

What are some of the major projects you are working on right now?

Right now we are working on two major projects. One of them is the proposed Hilton just outside of Delta state. The other one is a retail space that we are working on along the Lekki Express Way in Lagos state. It is going to have about 120 stores.

When is it foreseen to be completed?

We just finished all of the design stages and we are looking at a four year project.

Are you doing everything in house or are you looking for any partnerships? Do you do everything from the design stage to the implementation stage?

We outsource most of our staff so that means we have partnerships in the areas that are very necessary in these projects. We have architects that we partner with, we have builders that we partner with and then our other business is the major supplier of the interiors, so the tiles, bathrooms, decors etc. which is done by Builders Home Stores. We have a supply chain for our business. There is a link between Building Associates and Builders Home Stores.

You mentioned that you have entered the energy sector.

The energy sector that we are interested in is upstream for oil and gas and renewable energy because we feel we are responsible for creating a better world and a cleaner environment. We feel the need to be part of the solution rather than being part of the problem. That is why we are going into energy. We have put into place all of the machinery for us to kick start this. We have already signed partnership deals with specialist companies for renewable energy and we have done all of our registration with all of the necessary authorities and regulatory bodies in this country. So it is now time for us to start up and hit the ground running.

Overall, the group stands for sustainable solutions for our clients’ problems and responsibility for the society and the communities in which we do business.

What is the main idea behind FROT Foundation?

The need for the foundation arose after we looked at our contributions in terms of corporate social responsibility. We realised that we had done a lot but not in a structured or organised manner. Because I feel that we all have a debt that we need to pay to humanity I came up with the idea of having an autonomous body which is the foundation, to cater for the areas that we believe we should cater for. We have created FROT Foundation. We have 5 trustee board members and we have done quite a lot of projects since we started the foundation. We concentrate on four major aspects of life. We concentrate on providing clean water for areas that do not have clean drinking water. We also focus on education, particularly primary education because we feel that it is the foundation for all other stages of education in terms of infrastructure. We are not going to be providing scholarships or teachers, we are going to be providing a conducive environment for learning so that means tables and chairs, a solid roof that doesn’t leak when it rains etc. The third area we work with is sports; sport is a unifying bond in this country, it doesn’t matter where you come from, as long as we are playing everyone is united. The economic advantage that sport brings is unquantifiable. For example, Mikel Obi plays for Chelsea and he takes care of all of his family and indirectly over 100 people. If we support the growth of development in sport it means that the country can be rich in a talent pool where international players or sportsmen and women can come out and help other people to grow. Lastly we work with the arts. I love arts; I am a collector and a connoisseur. I feel a need for us to continue to promote and preserve our heritage and there is a huge gap between the masters, the older ones and the younger ones. Somebody needs to do something about filling those gaps. By the time the older ones have gone we will be empty if we don’t do something about it. No one will be there to continue and to preserve the arts. We decided to sponsor and promote development in young artists who can become international professionals through sponsorship of exhibitions and materials and through constant promotion, mentoring and monitoring.

Lastly, could you tell us about your own personal journey in Nigeria? What advice would you give for the younger entrepreneurs?

The biggest driver I have is to be part of the solution and not part of the problem. I always have the belief that the purpose for my existence is to be part of the solution. When I wake up in the morning, I look in the mirror and I say to myself that you are going out there to face battles and win them for the benefit of humanity, your clients, and your staff and for the community you do business with. That is my drive: to always win battles for others.

 

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