The Nation Newspaper

Author: The Nation

FCT tax reforms targets N300b annual revenue

The Federal Capital Territory (FCT) is taking steps towards boosting its revenue streams.

Currently, the FCT’s Internally Generated Revenue (IGR) is around N200 billion per year. With the implementation of these new initiatives, the FCT-IRS expects to increase IGR to over N300 billion per year.

To this end, the FCT Minister Nysome Wike has approved a comprehensive tax reform agenda aimed at enhancing revenue generation.

The key initiatives, such as the implementation of Section 85 of the Property and Environment Tax Assessment (PETA), Section 31 of the FCT-IRS Act, and the introduction of capital gains tax, have the potential to increase the FCT’s revenue by more than 50 to 60 per cent.

Last week, the FCT Minister approved the draft of the property tax regulation and the implementation of Capital Gains Tax (CGT)

This disclosure was made by the Executive Chairman of the FCT-IRS, Haruna Abdullahi in Abuja where he also revealed that the FCT can survive on its IGR.

Speaking to the impending property tax regulation, Haruna Abdullahi said “a draft proposal for FCT property tax regulation was formally submitted to the Honorable Minister.

“Empowered by the FCT IRS Act, the Minister holds the authority to formulate property tax regulations and following extensive deliberations and suggestions, the Minister approved the initiative, marking the commencement of an inter-agency collaboration.

“This collaboration aims to ensure a thorough review of the draft by engaging various stakeholders. Once finalized, the regulation will be signed, gazetted, and promptly implemented, promising a substantial positive impact on the FCT’s Internally Generated Revenue (IGR).

Simultaneously, another committee was inaugurated to spearhead the implementation of the capital gains tax law.

Abdullahi revealed that evidence of capital gains tax payment will be required before property title transfers can take place.

He lamented that voluntary compliance has resulted in minimal payment of CGT. “However, with the Minister’s approval and a robust interagency collaboration, plans are underway to fully enforce the capital gains tax” Haruna Abdullahi said.

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The FCT-IRS boss anticipates that an FCT with both property tax and fully implemented capital gains tax, ther will be a considerable boost in revenue.

Abdullahi said that the main focus of these initiatives is to ensure compliance with tax regulations, particularly in relation to property title transfers.

The implementation of these new regulations and tax laws is expected to significantly increase revenue generation for the Federal Capital Territory.

These are two of the three major initiatives that the FCT Internal Revenue Service (FCT-IRS) is implementing to boost the FCT’s Internally Generated Revenue (IGR).

The other initiative is the implementation of Section 85 of the Personal Income Tax Act (PITA) and Section 31 of the FCT-IRS Act, which will allow the FCT-IRS to collect taxes on personal income from individuals and businesses with operations in the FCT.

The FCT-IRS is also working on harmonizing its tax administration system with the area councils to ensure that there is a seamless tax collection process across the FCT.

Haruna Abdullahi added that the FCT-IRS is working on expanding its reach to all area councils in the FCT. It currently has 16 offices and plans to open 20 more by the end of next year.

The FCT-IRS boss is confident that these initiatives will help the FCT to generate more revenue and improve its services to residents.

Speaking to the impact these new tax initiatives will have on the bottom line of the FCT’s revenue, Abdullahi insisted that the implementation of the new property tax regulation and capital gains tax law “are expected to have a significant impact on the bottom line of the FCT’s IGR”.

This additional revenue will be used to fund critical infrastructure projects and social programs in the FCT.

November 13, 2023
Africa has innate potential to become major world’s economic bloc, says Oando

Africa has the vast resources and other potential to become a major world’s economic bloc but there is need for urgent collaborative efforts by governments and private sector stakeholders to unlock the full potential of the continent.

At the Intra-Africa Trade Fair 2023 in Cairo, Egypt, the need for Africa to unite, prioritise its growth and remove self-imposed barriers to realise its industrialisation ambitions was a major theme of the discource.

Speaking on realising Africa’s growth agenda through the energy transition, Executive Director, Oando Plc and Chief Operating Officer, Oando Energy Resources, Dr. Ainojie Irune called on governments to grow impatient about developing the continent.

In a session with the theme: African Energy Transition and African Industrialisation, Irune said Africa is truly blessed across the entire value chain and has everything needed to ensure that the energy transition for Africa serves its people.

He stressed the need for governments to collaborate between regions and establish the required policies internally and externally to drive; not just trade, but the development of industries that would create the wealth the continent need to embark on the energy transition.

According to him, Africa is the final frontier and it has a responsibility to design what it desires.

“Africa is home to 39 per cent of the world’s renewable energy potential, yet is impoverished. A continent that is unable to feed its people, educate its people, must think, first, about survival, just like the rest of the world. So, we must get impatient about developing our continent together,” Irune said.

He pointed out the challenges of intra-Africa trade and preferred solutions to foster regional cooperation, noting that regional cooperation in Africa is important and must be given the required attention.

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“We talk about collaboration, yet as we speak today, we haven’t dealt with the issue of intra-Africa travel for tourism, nor business. To challenge the current tide against us, we have to look within, starting from our governance and policies. If we come together and throw our weight behind our agenda as a continent, we would become a powerful bloc to be reckoned with across the world. We need to build a consciousness that recognises the fact that everything we require to develop Africa is already within,” Irune said.

He pointed out that intra-African trade currently accounts for only 15 per cent of the continent’s total trade, compared to 58 per cent in Asia and 67 per cent in Europe, noting that as the new continental market emerges with opportunities, those opportunities will not be to the benefit of Africans if African markets are not connected to create economies of scale.

It is now generally agreed that the African Continental Free Trade Agreement (AFCFTA) presents Africa with an efficient shock absorber to the volatile global economy. Intra-African trade, in turn, provides the continent with an opportunity to accelerate its individual and collective efforts as governments, policy-makers, development institutions, corporate organisations and SMEs towards the realisation of the goals of the AfCFTA.

The AfCFTA is expected to boost intra-African trade by 52.3 per cent by 2025, increase Africa’s income by up to $450 billion by 2035, according to the IMF, and lift 30 million Africans out of extreme poverty.

November 13, 2023
Consumers, operators differ on Discos’ performance

Nigerians have scored the electricity distribution companies (Discos) low in overall performance delivery, although operators and stakeholders agreed there have been improvements in many areas.

The Federal Government unbundled the power sector and consequently licensed Discos in 2013.

Consumers sampled by The Nation, expressed disappointment with the Discos in areas of meter acquisition, crazy billing (for unmetered customers), poor response to repairs of electrical faults, indirect transferring of purchase, maintenance or replacement of electrical equipment and gadgets like transformers, cables, among others to consumers.

For Jacob Oshowale, a resident on Cameroon Street, Mushin, Lagos State, under the Eko Electricity Distribution Company (EKEDC), the inability of the Disco to replace his faulty meter after over nine months has remained a pain to him. This, he told The Nation, has been further compounded with the slamming of a N152,164 on him by EKEDC to make up for “all the past units that were not correctly paid for because the meter had not been working properly as the meter had been developing the fault gradually.”

The story is not different for communities in Akute, Ogun State, under the Ikeja Electric (IE) jurisdiction. At several times, communities in this axis, especially those in the Temidire Estate CDA, have had to contribute money for repair faulty cables and fuse replacement in their community. And in instances where such contributions were not forthcoming, the communities were left in darkness for weeks.

A resident of One Love and Progress Community Development Association (CDA) and Orile Onjuwon CDA, both in Mosa Onjuwon, Ilogbo, Ota, Ogun State, Babatunde Ogundare, told The Nation that his community has resorted to self-help having been neglected by the Ibadan Electricity Distribution Company (IBEDC) for several years. He explained that the community on its own purchased two transformers at over N3.3 million and has spent over N2 million buying cables, yet, the communities are still in darkness because the transformers are yet to be energised.

“We have two transformers, which cost us over N3.3million- one cost N1.9m and the other cost us N1.4 million. For cables and some poles we have spent over N2 million. Sadly, we have not been able to energize it due some financial constraints to purchase some items. The fact is that IBEDC have been very unfair to us. We are aware that it is their responsibility to provide these items, but they didn’t. We provided it ourself and yet they are still unable to come energise it for us. Now in future, they will cite one law or regulation and lay claim to these items we bought with our own sweat,” he said.

A seemingly frustrated Ogundare is convinced that while the Nigerian Electricity Regulatory Commission (NERC), may be shouting itself to the rooftops, educating electricity consumers on their rights and obligations of the Discos as contained in the regulation document from the Commission as enshrined in the Electric Power Sector Reform Act (EPSRA), 2005, which places the responsibility of buying, replacing or repairing electricity transformers, poles and related equipment on the 11 DisCos, sadly, as regulator of the industry, NERC, he said, has only been barking but not biting.

His submission on NERC is based on a letter sent by his community to the Commission, appealing to it to intervene in the situation between his community and IBEDC over a year ago which he said has not been responded to by the NERC; neither has the IBEDC taken an step to discharging their responsibility towards the community.

“By law, all the DisCos have the responsibility of repairing or replacing damaged electrical equipment used on their networks; but this is not the case as we have seen so far. Unfortunately, the regulator, NERC, has not been seen to be imposing heavy sanctions for the DisCos dereliction of duty in this regard. NERC is appearing to be a toothless bulldog,” Ogundare submitted.

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But Ogundare’s position on NERC may be contested. For instance, as a safeguard for customers against exploitation due to the lack of meters, the Commission said it has continued to issue monthly energy caps for all feeders in each DisCo. “This sets the maximum amount of energy that may be billed to an unmetered customer for the respective month based on gross energy received by the DisCo and consumption by metered customers,” NERC said.

And while the consumers are lamenting over their predicament, on the contrary, the Discos, are however of the opinion that they have performed well in the circumstance. And going by figures reeled out by the NERC, Discos may be smiling to the banks.

The NERC report indicates that in the first half of 2023, the 11 Discos have amassed N514. 95 billion in revenue, representing the highest collection recorded in the period in the past nine years. A breakdown of the NERC data revealed that the DisCos earned N267.86 billion as electricity bills in the second quarter of this year, indicating an 8.4 percent increase from N247.09 collected in the first quarter.

The National Bureau of Statistics (NBS) Electricity Report Q1 2023 which reviewed the performance of the 11 DisCos noted that electricity supply was 5,852 (Gwh) in Q1 2023 from 5,611 (Gwh) in the previous quarter. However, on a year-on-year basis, electricity supply declined by 1.74 pervcent compared to 5,956 (Gwh) reported in Q1 2022.

Stakeholders in the industry relate the recent increase in DisCos revenue to factors such as better metering technology monitoring, stricter regulatory oversight, higher tariffs, more investments in infrastructure, a larger customer base, and improved collection efficiency.

For instance, NERC record indicate that in the first half of the year, metering of consumers across the Discos stood at 178,864, representing a 2.04 percent increase compared to the 175,281 meters installed in the first quarter of the year.During the second quarter, NERC revealed that 168,397 meters were installed under the Meter Assets Provider (MAP) framework while 9,302 meters were installed under the National Mass Metering Program (NMMP) framework.

In the aspect of Aggregate Technical, Commercial and Collection (ATC&C), Discos recorded a Loss of 38.41 percent comprising – technical and commercial loss (18.47 percent) and collection loss (24.46 percent).in the second quarter of this year.

The NERC submitted that the decline in ATC&C loss in this period is a function of the 6.79 percentage point improvement in collection efficiency between the first and second quarter of the year.

ATC&C provides a consolidated report of how much revenue a DisCo is able to collect relative to how much it should have collected based on the volume of energy it received and sold to customers. It is the indicator that evaluates the actual energy and revenue loss in electricity distribution systems.

The Chief Executive Officer of Ikeja Electric, Mrs. Folake Soetan, takes pride in the AT&C loss of the IE. “This year, we celebrated a remarkable reduction in our Aggregate Technical Commercial & Collection losses; from 44 percent in 2015 to an impressive rate marginally below 20 percent, through our collective efforts in operational efficiency and sustainable energy practices,” she said.

For her, top on the list of IE’s feat in the last decade of operation is the firm’s global certifications. “In 2019, we became the first distribution company to attain all three categories of certifications: ISO 9001:2015 (Quality Management System), ISO 45001:2018 (Occupational Health and Safety Management System), and ISO 14001:2015 (Environmental Management System),” she said, adding that the firm successfully deployed 830,292 meters to its customers, and by extension, giving them control over their energy consumption and fostering a sense of empowerment.

The Eko Electricity Distribution Company (EKEDC) takes delight in its “technological integration” which it described as the bedrock of its performance in the past decade. “In the last ten years, we have deployed Supervisory Control and Data Acquisition/ Distribution Management System (SCADA/DMS) that allows for remote access and control of our infrastructure, the first of its kind in the distribution side of the power sector in Nigeria, we have moved our metering process to an automated system, and we have metered our feeders and transformers for efficient monitoring and accurate billing to reduce billing disputes. We have also attained global certification to help to manage the information assets entrusted to us,” EKEDC’s General Manager, Corporate Communications, Babatunde Lasaki, said in a signed statement.

As another 10 years cycle begins, hopefully if it is not cut short by the tenure discrepancy surrounding the Discos licences, the question among consumers is “when will the Discos be alive to their responsibilities”?

November 13, 2023
Aviation agencies overlapping functions stifling sector’s investment

Overlapping functions contained in the Establishing Acts of aviation agencies with undefined scope of mandate is causing obstacles on the way of potential investors : state governments, concessionaires, airlines , fuel suppliers , aviation catering and other players who wish to commit funds into many projects in the industry.

This development, The Nation learnt , has thrown many prospective investors into confusion on which of the agencies they should forward their request for permits/ approval to either in the construction of airports, aircraft repair and maintenance centre and other businesses in the aviation sector.

Experts familiar with the development say many state governments, which have constructed airports in their domain , are now turn between the Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA), in the pursuit of airport approvals, certification as well as calibration of navigation facilities in these aerodromes before commercial flight operations could begin in the facilities.

Navigating this hurdle, an industry player said, is putting off many investors, who want to make foray into aviation and allied services.

Besides airport construction, investigations by The Nation also reveal that Aviation Catering Companies and Aviation Fuel Suppliers are struggling to wriggle out of the hurdles of which of the agencies have mandate for approvals / permits before they commit funds into any project.

Some indigenous carriers , which had indicated interest in setting up Aircraft Maintenance Repair and Overhaul (MRO), facilities at some airports across the country are still trapped in the web of securing land / approval from both the FAAN and NCAA, a development industry watchers describe as a disincentive to the industry’s growth.

Industry experts say lack of coordination among the agencies, if not properly managed could rob the sector of the much needed investment.

To reverse this trend, the Ministry of Aviation and Aerospace Development, it was learnt, is shopping for an Industry Road map that will streamline the duties of the apex regulator – NCAA and other service providers : FAAN, NAMA and others to eliminate lacunas that will push back the needed investment.

Speaking in an interview on the matter, Minister of Aviation and Aerospace Development, Mr Festus Keyamo said partnership with the private sector is what the industry needs to attain its full potential.

He said “ | “There is no doubt that growth and development in the aviation sector should be private sector driven to attract foreign direct investment. We have a responsibility to ensure that deployment of policies, programmes and project are well articulated to achieve this objective.”

Investigations reveal that Keyamo, has set up a committee for the agencies to work together to drive investment into the sector.

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Only last week, the Director General of NCAA, Captain Musa Nuhu disclosed that approvals for construction of airports, and the operational modalities of Aviation Catering Companies ought to routed through the apec regulator and not the airport authority.

A situation in which service providers do not carry the regulator along on safety / operational matters will not stimulate growth for the sector.

Nuhu had also observed that the NCAA was not carried along by FAAN and NAMA when they are embarking on critical safety / operations related project requiring its endorsement.

A source close the Ministry of Aviation and Aerospace Development , confided in The Nation that a proposal to eliminate bottlenecks militating against investment into the sector is underway.

The proposal, the source hinted will be unveiled this week after Keyamo concludes the input gathering meetings with officials of the ministry, operators, aviation agencies , stakeholders and potential investors who are demanding a blueprint for engagement.

Part of the blueprint, which will put together by a consortium of international aviation consultants will provide a compass for investment portfolios in airport infrastructure, aircraft leasing, options for airport revenue generation and management and other areas.

November 13, 2023
China, Nigeria business gross over $1.6b in 2023
- By Okwy lroegbu-Chikezie
A two-time Minister, Mrs Onikepo Nike Akande has called for stronger cooperation between Nigeria and China in order to improve the countries’ $1.6 billion trades and ensure mutual growth and development.

Akande was the special guest of honour at the ‘China -Africa (NIGERIA) Production Capacity Cooperation Symposium’ organised by the Institute of Directors ( IoD).

She said though Nigeria and China have a robust diplomatic relationship and trade relationship, there is a big gap between Nigeria and China when we consider industrialisation and industrial capacity.

Akande noted that the key to economic development, employment generation and poverty alleviation is industrialisation and asked the Chinese Government to help address the trade imbalance.

She said: “China is way ahead of Nigeria and Nigeria has been an export destination for Chinese businesses. As a nation that is trying to take the right steps to move from consumption to production, we have quite a lot to learn from China on this journey”.

According to her, China should help and support Nigeria in its quests for industrilisation by deliberately putting in place measures that will aid the Nigerian government and people to improve their production capacity.

She advocated that manufacturers in China should consider moving their factories to produce in Nigeria and provide jobs for our teeming population and improve our economy.I must however confess that this symposium can be an eye opener to many opportunities that Nigeria as a country can avail itself as we commence this journey of rebirth and development.

Responding, Chinese Consul General Yan Yuging said in today’s world, unprecedented changes are taking place. and faced with a complex and ever-changing international landscape, China and Nigeria stand together, seeking mutual development, and continuously writing new chapters of practical cooperation.

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He said: “ in August, the 15th BRICS Summit was held in South Africa. China has launched the “Initiative on Supporting Africa’s Industrialization” “Plan for China Supporting Africa’s Agricultural Modernization “ and “ Plan for China-Africa Cooperation on Talent Development “ , focusing on areas urgently needed for African modernization”.

“ In October, the third Belt and Road Forum for International Cooperation was held in Beijing. China signed a series of cooperation documents with more than 150 countries and over 30 international organizations. A large number of infrastructure projects and projects benefiting the people will be implemented gradually. Due to the principles guiding China’s Africa policy, including sincerity, real results, amity, and good faith, and the high-quality Belt and Road Initiative (BRI), China-Nigeria relations are steadily advancing, with deepening cooperation in trade, investment, and contracted projects”.

He maintained that as a significant trade partner to Nigeria according to Chinese customs data, the bilateral trade volume between China and Nigeria reached $23.9 billion in 2022, with China’s exports to Nigeria amounting to $22.3 billion and imports from Nigeria totaling $1.6 billion.

He said: “ In the first three quarters of 2023, bilateral trade stood at $17.25 billion, with exports to Nigeria being $15.67 billion and imports from Nigeria at $1.58 billion, marking a 22.5 percent increase in imports from Nigeria compared to the same period last year Nigeria has become China’s second- largest trade partner in Africa, and China is Nigeria’s largest global source of imports.
November 13, 2023
AU, others renew compact for inclusive agricultural growth

Experts from Africa Union (AU) have urged governments in Nigeria and the rest of the continent to empower farmers in research, development and adoption of machinery, precision tools and expert advice to boost production and increase trade opportunities for home grown products

They implored member countries to support agri-food research and innovation projects that will help farmers and food processors imbibe practices and solutions that will strengthen the sector to be more competitive in global markets.

They said other priorities were the need for governments to support and finance agriculture with a climate smart approach; strengthen infrastructure for farmers; enhance the efficiency of value chains and digitalisation for agricultural transformation. These were a few of the highpoints of Africa Day for Food and Nutrition Security (ADFNS),held in Zambia.

The event was jointly organised by the African Union Commission (AUC), the African Union Development Agency (AUDA-NEPAD) and the Government of the Republic of Zambia (GRZ).

The meeting served as a rallying point to underscore how the Comprehensive Africa Agriculture Development Programme (CAADP agenda),and increased intra-African trade in agricultural products and services can accelerate the achievement of food and nutritional security through safer and healthier diets across Africa.

In a communique issued at the end of the forum, participants stressed the need to adopt and harness technological advancements to revolutionise farming practices, increase productivity, and bolster the continent’s competitive edge in global markets.

The forum stressed the need for cross-pollination of perspectives and best practices that, in turn, widened the scope for innovative approaches to accelerate the implementation of strategies within the context of the African Continental Free Trade Area Agreement, to eliminate hunger among the 250 million Africans.

“Through unified dedication and joint actions, we will propel Africa towards a future marked by resilience, progress, and shared prosperity.”

Representing the African Union Commission (AUC),during the forum were the AU Commissioner for Agriculture, Rural Development, Blue Economyand Sustainable Environment ,Her Excellency Amb. Josefa Sacko, and the AU Commissioner for Health, Humanitarian Affairs and Social Development H.E. Minata Samaté Cessouma.

Other speakers included the outgoing Chair of the CAADP Development Partners Coordination Group, Mr Stanlake Samkange.

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Assistant Director-General and Regional Representative for Africa, FAO Dr. Abebe Haile;AUC Special Envoy on Food Systems, H.E. Dr Ibrahim Assane Mayaki, as well asDirector, Agriculture, Food Security and Environmental Sustainability, AUDA-NEPAD, Ms.Estherine Lisinge-Fotabong,on behalf of the Chief Executive, AUDA-NEPAD, Ms. Nardos Bekele Thomas.

In her welcome address, the AU Commissioner for Agriculture, Rural Development, Blue Economy and Sustainable Environment, Her Excellency Amb. Josefa Sacko emphasized the imperative of getting the post-Malabo agenda right to sustain the progress recorded in the last two decades.

She noted the need to build a resilient African food system to mitigate the multiple shocks associated with climate change, crisis and conflicts. She emphasized the interdependence of increasedintra-African trade and improved food and nutritional security in actualizing thevision of Agenda 2063.

She concluded by expressing the African Union’s desire and readiness to work hand-in-hand with stakeholders and partners in eliminating hunger and all forms of malnutrition on the continent.

AUC Special Envoy on Food Systems, His Excellency Dr Ibrahim Assane Mayaki, emphasized the importance of the CAADP as a means for reducing poverty but also pointed out that Africa must adapt to climate change, globalization, technology change, population growth and other accelerators of

food insecurity if Africa’s food systems are to be resilient. In that respect, Dr Mayaki noted that Africa must orient its policies to focus more on smallholder farmers.

Assistant Director-General and Regional Representative for Africa at FAO, Dr. Abebe Haile,highlighted the urgency to meet Malabo commitments and Sustainable Development Goals, citinggrave statistics revealing widespread malnutrition affecting millions in Africa. He celebrated achievements on the adoption of a model law by the Pan African Parliament, emphasized the importance of diversified, nutrition-sensitive agriculture, and called for robust partnerships and collaboration to ensure better production, nutrition, and environmental sustainability.

November 13, 2023
Fed Govt opens up opportunities for underserved communities

The Federal Government has reiterated a collective renewed commitment in investments to advance economic opportunities and employability for youth from low-income and underserved communities .

Minister of Innovation, Science, and Technology, Chief Uche Nnaji, said that part of the government’s initiative was to establish one innovation hub in each of the 774 local government areas of the country to equip Nigerians with the skills and confidence to improve their employment and entrepreneurship opportunities and make a positive impact in their lives and their communities .

Chief Uche Nnaji, who announced this in Lagos during the National Board for Technology Incubation (NBTI)’s South-West Zone Techno Expo said :”We have 36 incubators in 36 states of the federation and we are still looking forward to opening more incubators.”

Nnaji, who spoke through his Special Adviser, Prof Nnanyelugo Ike-Muonso indicated that there was a Presidential Standing Committee on innovation and invention and many others put in place to help the small business owners to grow their businesses.

He continued: “ Many of these initiatives are tailored through the technology incubation Programme so that everyone that is doing legitimate business will get the necessary funding they require. I stand here today to convey the government’s promise of continued support, increased investment, and the creation of a conducive ecosystem for research and development. Together, we will elevate Nigeria’s R&D outputs, unlock new opportunities, and position our nation as a hub of innovation and technological excellence.”

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He said Nigeria possesses immense potential, a wealth of talent, and a deep reservoir of creativity. “ It is our collective responsibility to harness and nurture these assets. Through strategic initiatives, collaborative partnerships, and a dedicated focus on innovation, we are committed to making Nigeria a global leader in research and development. The mandate of the federal ministry of innovation, science and technology have seven heads so that we can measure how effective the ministry’s function are achieved following the transformation agenda of Mr. President. “Our mission is clear: to foster an environment where creativity flourishes, where groundbreaking ideas become reality, and where the fruits of research benefit not only our economy but also society at large. We are unwavering in our dedication to providing the necessary resources and support to our researchers, scientists, and innovators.’

Lagos Governor, Babajide Sanwo-Olu said the state was committed to investing in innovation and research and development.

The governor, who spoke through the Commissioner for Commerce, Cooperatives, Trade & Investment, Mrs Folashade Ambrose-Medem said the government has created the enabling environment to support SMEs and all start-ups to develop technology solutions to tackle challenges in the economy.

To protect the state ‘s competitiveness, he said the government was developing the capacity of the entrepreneurial ecosystems and inspiring the younger generation to embrace innovation.

November 13, 2023
‘Why Trade Fair’s buildings were demolished’

The Lagos State Government has clamped down on illegal buildings at the International Trade Fair complex, Ojo.

This was the effect of the special enforcement exercise led by the Commissioner for Physical Planning and Urban Development, Dr. Oluyinka Olumide, alongside the Permanent Secretary, Ministry of Physical Planning and Urban Development, Oluwole Sotire an Engineer, the General Manager, Lagos State Physical Planning Permit Authority, Kehinde Osinaike and others from the State Building Control Agency.

The Commissioner, who supervised the sealing and partial removal of block works of some unapproved buildings, some of which were commercial premises warehouses and stores, said that the International Trade Fair was notorious for all forms of illegal buildings.

Also touched by the enforcement exercise on the trade fair complex were structures under construction, amongst which were those erected on drainage alignments.

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The commissioner decried the penchant for erecting buildings without approval, especially at the trade fair complex, where developers had been unyielding despite years of serving notices and stop- work orders.

He stated that the trade fair complex being within the federal government land did not exempt developers from obtaining Planning Permits from the Lagos State Government as the Supreme Court judgement of 2003 had explicitly placed the responsibility for Planning on State Governments.

He emphasised that the enforcement exercise would continue in the area until one hundred percent compliance was achieved.

He urged all property owners and developers within the trade fair complex to approach the Lagos State Physical Planning Permit Authority, Amuwo District Office, to file in their applications and regularise their buildings.

November 13, 2023
‘Forex, power supply frustrating local manufacturing’
- By Precious Shopade
The government needs to implement immediate and long-term policies to stabilise the foreign exchange (forex) market and ensure stable electricity supply in order to alleviate the challenges facing the local micro and small manufacturing industry.

Chief Executive Officer, Sepsotech Construction Services, Mr Segun Shopade, said the two main challenges facing the local manufacturing have been the high rate and fluctuation in the forex market and inadequate electricity supply.

According to him, local manufacturing companies are facing rising costs of production because of the increasingly high costs associated with forex and electricity supply, which affect both the volume and demand for production as well as manufacturer’s profit margin.

He explained that in order to remain in business and encourage customers, who are already hard-pressed by the economic challenges, local manufacturers are often left with no option but to absorb the rising production costs, as they cannot pass the costs fully to customers.

“The biggest challenge right now is the rising dollar, we can’t do anything with the way dollar is rising, we can’t just inflate the price of our goods anyhow because of our clients, so it’s giving us a lot of headache as we don’t see much gain as we used to.

“The forex situation is affecting my company like other local manufacturing companies because of the inflation in prices of all materials, we don’t really make anything in Nigeria, everything is coming from abroad, so we rely on Dollar to work. So, those are the things affecting us,” Shopade said.

He added that inadequate electricity supply has also exposed manufacturers to high and unstable costs, urging the government to focus on providing stable energy supply to boost economic productivity.

“Electricity is also a major aspect. Like us now in Sepsotech, we use millions of naira to buy diesel every quarter. So, the government should focus on that. They should really help us in terms of price control, if we go to market to buy material today, by tomorrow the material has gone up and you can’t keep changing costs given to customers arbitrarily. And you know that when things go up in this country, they hardly come down. So, I think the government should help us focus on these areas,” Shopade said.

He called on the order to provide capacity development programmes for micro and small local manufacturers, technicians and others to build the local manufacturing capacities and make the country less dependent on imports.

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According to him, with adequate technical and financial supports, the micro and small manufacturing sectors, especially in the areas of specialised services like engineering, Nigerian firms can fill up the import gap and provide the country with self-sufficiency in many areas.

“They need to help us build ourselves so we can be doing so many things in this nation, rather than importing everything from abroad,” Shopade said.

He pointed out that his firm, Sepsotech is a full-service construction company that specialises in a wide range of projects for residential and commercial users, with key expertise in production of bakery and kitchen equipment and other iron and metal fabrications.

According to him, clients have shown preference for Sepsotech because of its expertise and high quality materials.

“When it comes to work, we don’t compromise materials we are using for our clients. We don’t really focus on profit, rather we focus on clients’ satisfaction. We make them see the value of the money they spent on what they got from us.

“At Sepsotech Construction Services, we believe in the power of teamwork and collaboration. Our dedicated professionals work together to ensure that every project is completed to the highest standards. We value trust, security, efficiency, confidentiality, professionalism, and integrity in all our customer interactions,” Shopade said.

He noted that his company understands that the foundation of any successful construction project lies in the reliability and durability of the equipment and materials used.

He added that by prioritising top-notch materials, Sepsotech ensures that clients can trust the longevity and performance of their projects, whether residential construction or commercial building.
November 13, 2023
2023 Trade Fair: economic constraints blamed for low turnout

The current economic challenges impacted on exhibitors and visitors at the just-concluded 37th edition of the Lagos International Trade Fair (LITR).

The Lagos Chamber of Commerce and Industry (LCCI), organisers of the annual LITR, acknowledged these difficulties faced by businesses of all sizes and sectors as observed in this year’s Fair theme.

President, Lagos Chamber of Commerce and Industry (LCCI), Dr. Michael Olawale-Cole, addressing this year’s trade fair theme “Navigating Economic Challenges: Forging a Path to Prosperity”, highlighted the resolve of the Nigerian business community to overcome the numerous obstacles to its existence, survival, and expansion.

As part of its 135th anniversary celebrations, the organisers declared on Thursday, November 9, announced free access to the fairground for all visitors till the close of the fair on Sunday, November 12th, 2023.

This, the organisers noted was aimed at ameliorating the harsh economic reality on many visitors and Nigerians, as they were urged to maximize the opportunity to shop for their household items and Christmas needs with massive discounts.

Albeit, the effort of the organisers barely resonated with the exhibitors and visitors.

Some vendors and visitors who spoke with The Nation blamed the harsh economic reality for the low customers turnout and purchasing power respectively.

A hand-woven garments vendor from Ekiti state, Tijani Mojisola expressed frustration over the poor sales which she attributed to the current state of the economy.

The Aso-Oke exhibitor rued over her participation in this year’s fair as she claimed to have sold barely one bundle of her product since the exhibition commenced.

“I have been going to trade fairs in the country but this one is different.

“The market is not booming and I pray we don’t end up blaming ourselves for coming. No market and I want to believe it is due to this period we are in this country that is why there is no markets”, she stated.

“I’ve been here since the first day and have not even sold off one bundle.”

A representative of an e-commerce platform, said “the current state of the economy has caused low sales and financial difficulties for many small enterprises. The discovery we also made is that the fair has more vendors than buyers.”

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The Chief Executive Officer of Maikis Honey, Kingsley Nwaogu also bemoaned the state of the economy, attributing it to the skeletal sales despite the fact that the fair was saturated with quality products.

“The experience has been cool. Though the economic situation of the country affected sales because the people don’t have enough money to spend as they’re managing what they have. The experience is cool but not as I expected”, he stated.

“The challenge so far has been the pocket, it’s not full enough for people to purchase what they need because there are quality goods in the Trade Fair but the problem still remains the economic challenges that we’re facing.”

Similarly bemoaning the sparse buyers turnout was Akingbade Olaide, a representative of Dekoolar Nigeria Ltd., a manufacturing company.

“The experience has been okay. The challenge is that we don’t have traffic like we used to. People have not been coming like the previous years probably due to what’s happening in the nation.

“The fact is that the economic situation has affected sales. But I believe when everything normalises, things will go back to the way they used to be and sales will be better”, she stated.

Others, however, were more circumspect in their praise of the fair, speculating that sales would have been substantially higher in the absence of the present “biting” economic reality.

“I’m sure if the economic situation was better, sales would have been better. But, I mean, thank God”, said Kenneth Okenwa, a Brand Communication Executive.

Reacting, a salesperson who claimed anonymity said although the economy may have affected the fair, people are still making an effort to buy, and she expected higher sales over the weekend.

“The economic situation has affected sales so much. Also, we can say maybe because this is the weekday that’s why we are not having any rush but Saturday and Sunday feels better and we hope to improve sales.”

As for visitors, some were unable to shop at all and others, as much as they had desired due to their dire financial circumstances brought on by the harsh economic climate and ‘unfair’ prices at the fairground.

November 13, 2023