The Nation Newspaper

Author: The Nation

  • I’m committed to non-violence in politics, says Abe

    From Bisi Olaniyi, Port Harcourt

     

    Senator Magnus Abe  has said that he is committed to non-violence in politics.

    Abe, who represented Rivers South in the 8th Assembly, also said truth would always prevail over lies and deceit, no matter the manner in which it was presented.

    Abe spoke at the presentation of an award of excellence, non-violence, human capacity development and apostle of internal democracy in Nigeria to him by All Indian Universities Alumni Association at the Indian High Commission in Lagos, Nigeria.

    The occasion, which was held to commemorate the 150th anniversary of Mahatma Ghandi, likened Ghandi’s principle of non-violence to the Nigerian experience.

    The senator described the occasion as a fitting tribute to the late environmentalist and human rights activist, Ken Saro-Wiwa, who imbibed and practised Ghandi’s principle of non-violence, as it coincided with the 24th anniversary of the death of the renowned environmentalist and eight other Ogoni martyrs.

    He said: “We were honoured by the All Indian Universities Alumni Association for our commitment to the principles of non-violence in politics.

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    “It was quite humbling to see that the world took notice of our determined commitment to non-violence.

    “We have clung to nothing, but the truth and refused to employ violence through what has been the most turbulent period in the political history of Rivers State, a violent circle of elections and reruns, in spite of coordinated acts of violence and murder targeted at us and our supporters.

    “Again, in the internal crisis within the  APC, Rivers State, despite several acts of sponsored violence against us, we fought our battles without arming youths or sponsoring any act of violence against anyone, friend or foe.

    “Ghandi got it right, Martin Luther king got it right, Ken Saro-Wiwa got it right. The truth will always triumph over better-armed lies and deceit. We are getting it right and we will win.”

    Abe, according  to his spokesperson, Parry Benson, also condoled with the people of Rivers State on the death of an ex-Minister of Petroleum Resources, Prof. Tam David-West, a former Commissioner for Education in the old Rivers State.

    He described the death on Monday morning at the University College Hospital (UCH) in Ibadan, Oyo State at 83, as a great loss to the people of Rivers state and Nigeria.

    The senator said: “Prof. Tam David-West was a man of integrity and decorum. One whose love for truth and justice as a leader deserves to be emulated.

    “Indeed, we shall all miss him. His voice was always loud in defense of truth and justice, but he is now forever still. We pray that the good Lord will give his family the strength to bear the loss and grant him eternal rest.”

     

  • Marketers, retailers decry increasing price of cooking gas

    Liquefied petroleum gas (LPG), commonly called cooking gas, is abundant in Nigeria. But it is not easily accessible to consumers as it should be. Also, the price of LPG that should be cheaper in view of the abundant reserves of natural gas it is not. Local price is always determined by happenings overseas and the international market. LPG marketers, under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), and retailers, under the umbrella of the Liquefied Petroleum Gas Retailers (LPGAR), a branch of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), have cried out, saying cooking gas is getting out of reach of consumers. To them, winter and other weather conditions overseas and international price index should not determine the price of a product Nigeria has in abundance, EMEKA UGWUANYI reports.

     

    Members of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) are not happy with the increasing price of liquefied petroleum gas (LPG) also called cooking gas.

    The marketers, reacting to the unwarranted price hike of the product, noted that this is happening despite concerted efforts of the government and stakeholders to deepen the use of LPG in the country.

    NALGAM Executive Secretary, Mr. Bassey Essien, in a document by the group, said at this time of the year in the past, price hikes used to be attributable to winter and increased demand for heating energy and international price index. ‘’We have consistently questioned why a product in abundance in our country should become a victim of issues occurring internationally,’’ he said.

    He said within the last one week, LPG price has soared and markerters did not know the cause. The price hike would dovetail into consumers paying more for the product. The consumers would blame marketers who are also caught up in the price hikes, Essien said.

    Within five days, the price of a 20-metric tonne (MT) of LPG, which  sold for N3.15 million, jumped to N3.5 million, N3.9 million and within a few hours moved to N4.2 million, despite that the product has been in the storage of the terminals when the price was even sub N3.5 million, so why the sudden upsurge? he queried.

    According to him, efforts to know the cause of the price increase from the terminals were futile.

    At one of the terminals, there was a denial of any price increase. The head of LPG Sales at the company said the company had no stock, but when asked to explain the increase to N4.2 million, when the company had no stock, he was evasive. Some marketers, who had paid for LPG when it was N3.45 million and were awaiting loading were being intimidated with refund of their money except they agreed to pay the difference despite having tied down their funds without loading their trucks.

    At another terminal, it was attributed to the interplay of forces of demand and supply; and in this case demand had outstripped supply. Elsewhere, importers have also attributed low supply to delay in accessing foreign exchange from the Central Bank of Nigeria (CBN), which accounted for delayed payments to their business associates thus, the inability to oil the LPG supply cycle.

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    Essien said: “The Association is hereby disassociating itself and members from the antics of the current price hike and therefore, maintaining that the price increase is not the handiwork of marketers but rather that of the terminal owner, importers and the Nigeria Liquefied Natural Gas (NLNG). Marketers are bemoaning the situation as the development has adversely affected business planning.

    ‘’If the trend is not halted immediately, the price of a 12.5kg cylinder of cooking gas may soon sell for over N6, 000 and well out of the purchasing power of the average consumer.

    “This brings to question when the issue of product availability will ever be holistically addressed. We cannot deepen the use of LPG if availability of the product is not guaranteed.

    “In the immediate need to reverse the price hike, we are calling on the NLNG to: flood the market with cooking gas since they have the capacity to do so; increase the frequency with which the vessels delver LPG from Bonny to the terminals; importers to free the PPMC Depot in Lagos for the delivery of NLNG product allocation; NLNG should supply LPG to other coastal terminals outside Lagos to reduce the inherent pressure on the terminals in the Southwest; and NLNG should deploy vessels of smaller capacities to access the coastal terminals if product availability must be achieved.”

    On their part, members of Liquefied Petroleum Gas Retailers (LPGAR), a branch of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), in a statement noted that the arbitrary increment in price of LPG and supply shortages is embarrassing especially for a country like Nigeria with abundant gas reserves.

    The Branch Secretary of LPGAR, Comrade Olukayode Aborisade Solomon, said LPGAR branch of NUPENG is highly dissatisfied with sudden upsurge in price of liquefied petroleum gas (LPG) by tank farm (LPG depots) operators and what appears to be a deliberate reduction in supply or rotation of supply amongst the tank farms.

    These, the group said, had led to about 90 per cent increment in gas price within a space of one week. It is likely that this ugly situation will continue if there is no urgent intervention, especially as Christmas and New Year approach.

    “Though the increment began about a month ago but did not significantly reflect in the price sold to end-users because retail outlets had absorbed the difference believing it would soon normalise.

    However, without any sign of imminent supply or pricing crisis, the price in the last one week suddenly skyrocketed, reaching about 90 per cent high. Just a week ago in Lagos and some neighbouring states, 12.5kg of LPG was sold for between N2,600 and N3,000 in retail outlets. It is now sold for between N4,000 and N4500 at retail outlets, owing to sudden hike in the price by tank farm operators.

    “If this situation remains unchecked it is capable of undermining the expected development of LPG sector in the country which has been championed by the government and other stakeholders over the years.

    “Nigerians especially the low income earners who are beginning to adapt to LPG for both domestic and commercial uses are being subjected to exploitations at the time they are already being confronted with economic hardships.

    “The situation is already forcing many users to abandon their cylinders and opt for other sources of cooking energy such as firewood and saw dusk irrespective of the attendant health risks and resultant environmental degradation that results from those alternative energy sources.”

    Solomon said LPG retailers had to contend with end-users who often accuse them of being responsible for the increments. Unknown to most of the end-users, LPG retailers are the worst hit as they have been reduced to the status of mere agents toiling day and night to make LPG available to Nigerians often with little or no profits because of the monopoly of a cartel.

    “Our union over the years has been decrying what it views as manipulation of the sector by a few privileged individuals and business concerns in Nigeria including some multinationals operating in the oil and gas sector.

    “The people behind the business organisations benefiting from this arbitrariness are the same people that have been creating the impression within the government quarters that insufficient retail outlet in Nigeria is the problem militating against the deepening of LPG in the country. This they do to secure approvals and incentives for establishment of retail outlets to the detriment of small and medium size LPG businesses.

     

    They, therefore, neglect the major areas they are expected to concentrate which include LPG production and provision of storage facilities (tank farms).

    “If enough production or importation of LPG is made and enough storage facilities provided, LPG would become affordable and accessible to Nigerians because there are hundreds of thousands of business-minded Nigerians who are willing and ready to penetrate even the remotest villages to stimulate LPG usage and also meeting demands.

    “Our union is calling on the government and the rest of the stakeholders to urgently intervene in order to restore sanity. There is nowhere in the world that government leaves such a vital sector solely in the hands of a few commercial interests especially where there is apparent case of manipulation.”

     

  • Sahara Group lauds UNDP’s programme

    Africa’s huge economic growth potential can be harnessed through robust intra-African trade, collaboration and firm resolve to pursue shared goals, Executive Director, Sahara Group, Temitope Shonubi, has said.

    Shonubi spoke at the United Nations Development Programme (UNDP) “High Level Dialogue” in Accra, with the theme “Africa’s money for African Development, a Future Beyond Aid.

    He said Africa needs to look beyond dependence on foreign aid and embrace the pursuit of economic growth and development as a “single entity with common interests, goals and aspirations”.

    According to Shonubi, “It is Sahara Group’s firm belief that African businesses can be the greatest contributors to Africa’s success. But tackling some of the toughest global challenges cannot be achieved by any one company or sector alone. We, therefore, need to partner, not merely in business, but in building the better, stronger and more economically vibrant Africa that we all desire.”

    He noted that Sahara Group’s experience across the continent had shown that intra-African trade can be enhanced through uniform trade policies, shared infrastructure and technology, ease of movement of persons and goods and transparent regulatory framework for different sectors.

    He said: “As a leading energy conglomerate on the continent, Sahara Group has continued to champion calls for increased trading activities on the continent, especially in the energy sector. Sahara Group has at different fora canvassed more collaboration and businesss involving African entrepreneurs, oil and gas businesses, traders and financial institutions, among others.  Sahara is one of the first African companies to regularly carry out full cycle crude and product transaction using only African resources.”

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    The event was chaired by Ghana’s President, Nana Akufo-Addo, who reiterated widely-held expectations that the African Continental Free Trade Agreement (AfCFTA) will facilitate a new wave of economic prosperity if implemented successfully.

    Akufo-Addo also noted the need for African economies to become independent of aid, adding that upholding human rights, the rule of law and democratic accountability are key ingredients for sustainable development.

    AfCFTA commits countries to remove tariffs on goods, progressively liberalise trade in services, and address non-tariff barriers. As of the end of 2018, Intra-African trade made up only 15 per cent of the total trading activities by the continent. Successful implementation of the agreement is projected to create one African market of over a billion consumers with a total GDP of over $3 trillion. This will make Africa the largest free trade area in the world.

    UNDP’s Director for Regional Bureau for Africa, Ahunna Eziakonwa, said the ‘dialogue’ will be positioned as an ongoing platform to inspire a global audience to recognise the opportunities for Africa’s future prosperity.

    The platform also seeks to increase thought leadership about Africa’s development towards self-sustaining futures, provide intellectual and analytical insights for the new AfCFTA, as it advances towards African Union’s Agenda 2063 and global goals in Agenda 2030, raise visibility and create momentum supporting Africa’s vision for future prosperity and foster new partnerships and create alliances for Africa’s transformation agenda.

     

  • How lack of co-ordination is affecting Nigeria’s share of international trade

    At the just-concluded Lagos International Trade Fair, manufacturers and other stakeholders said Nigeria’s involvement in international trade has tilted heavily in favour of imports. OLUWAKEMI DAUDA reports that they urged President Muhammadu Buhari to promote co-ordination among regulators and stakeholders to address the factors militating against the diversification agenda of the government.

     

    Nigeria’s involvement in international trade became a major focus at the just- concluded 10-day Lagos International Trade Fair, which held at the Tafawa Balewa Square (TBS), Onikan.

    Lagos Chamber of Commerce and Industry (LCCI) President, Mr. Babatunde Ruwase, who spoke at the event with the theme: “Connecting businesses, creating value”, underscored the importance of robust business interactions to generate wealth and create value for the advancement of the economy and the welfare of the citizens.

    “The force of globalisation has reinforced the need to connect businesses. UNCTAD research has shown that business linkages represent one of the best ways for SMEs to enhance their competitiveness and acquire a series of critical   missing   assets,   such   as   access   to   international   markets, finance, technology, management skills and specialised knowledge.

    “A good tempo of trade and commercial activities is a critical driver of economic growth as no economy can expand to   create opportunities for its population.”

    Stakeholders, who spoke with The Nation on the sidelines of the well- attended event, said the economy has tilted in favour of imports. On the export side, the stakeholders lamented that over 90 per cent of trade relies on crude oil for a country hitherto known as a major exporter of agricultural produce, such as cocoa, palm-oil, groundnuts and grains.

    A manufacturer and exporter, Chief Abiodun Oladunjoye, said this is apart from the fact that the country boasts of large quantities of solid minerals in the 36 states that can be exported.

    “There are two angles to international trade – import and export – and despite popular view, the country has been very active on the international trading scene. But the results have been largely disappointing because of our level of involvement in terms of goods and services we have for sale.

    “Apart from oil, it is sad to state that the country lacks the necessary co-ordination between the regulators and stakeholders that lead to the sale of made in Nigeria goods and services, which could be either produce, raw materials, spare parts, semi-finished or finished goods or consulting services from the country into foreign markets that can result in the in-flow of foreign currency – called export proceeds to boost the economy and create employment.

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    “The problem affecting the economy is on the export side and this has been the challenge since the fall of the commodity board in 1986. Efforts by the previous administrations to correct the sorry situation have remained a mirage. Successive administrations have set up many laudable agencies like the National Food and Drug Administration Commission (NAFDAC), Standards Organisation of Nigeria, (SON), Nigeria Export Promotion Council (NEPC), Bank of Industry (BoI), Raw Materials Research & Development Council (RMRDC), and the Nigeria Export-Import Bank (NEXIM) to boost non-oil exports.

    “But it is sad and very disheartening that almost 32 years after, there are no signs of co-ordination and collaboration between appointed regulators and stakeholders,” he said

    Many committees, he noted, had been set up at state and federal levels to come up with the recommendations and proffer solutions to the challenges militating against the country in international trade. According to him, most the recommendations, however, were being locked up in cabinets in the various ministries and parastatals.

    But a senior Nigeria Export Promotion Council (NEPC) official, who craved anonymity, berated stakeholders, staying that despite the laudable incentives for exporters and efforts by the government at various levels, the country’s share of international trade “is seriously below the government’s expectation because since the advent of President Buhari’s administration, the business environment  is no longer tough because government’s policies are more focused on export than imports and that is what led to border closure, which some stakeholders have been criticising unnecessarily.

    But the official agreed that there is the need for the government to address the barriers to exports as part of measures to develop sustainable routes to foreign markets

    “If we listen to the noise surrounding the border closure, it shows that our people are  more attracted to imports while the government is trying to put in place the support structures for export. Lack of effective linkage between the stakeholders and government agencies, poor manpower in the non-oil sectors and dearth of information to support youths across the country are the problems confronting the export business.”

    The official stressed the need for greater cooperation and coordination between the regulators and the various stakeholders, including  the public and private sectors amid civil society organisations and nongovernmental organisations among others so that the country can take its rightful share of the trade.

    A service provider and commodity trader, Mr Adewale Adetona, said the problem with Nigeria is that too much attention was focused in the past on developing structures to support importation at the detriment of exportation, which is not allowing the country to take its share of international trade because of some trade barriers.

    The barriers, according to him, include administrative procedures, quantitative restrictions, price controls, licensing requirements, product labelling requirements and privacy requirements.

     

    Trade barriers take two forms

    • Tariff barriers—Tariff barriers are taxes imposed by the government on imports or exports of goods. These taxes can be used to increase the cost of imported products, make input available to domestic producers at more competitive prices and raise revenues for governments.
    • Non-tariff barriers—Non-tariff barriers can affect goods and services. Sometimes referred to as “red tape”, these barriers include quotas, boycotts, licences, standards and heavy regulations, local content requirements, restrictions on foreign investment, domestic government purchasing policies, exchange controls and subsidies.

    For these barriers to be removed, Adetona said: “There must be a robust co-ordination between the regulators and stakeholders.’’

    He berated a situation where government ministries, departments and agencies (MDAs) were working at cross-purposes with too much emphasis on revenue generation as an indicator of success. The worst of this situation is that even with its closest neighbours, Nigeria manages to perform poorly in trade. Within the ECOWAS sub-region, Nigeria, as the largest economy, continues to struggle against Cote d’Ivoire and Benin Republic. Sadly, most of the revenue targets focus on imports and with little or no attention on exports to our neighbouring countries.

    Other stakeholders, who spoke with The Nation, said countries, such as Ghana and Republic of Benin, are cashing in on Nigeria’s free import economy to push and smuggle  prohibited and dangerous goods into the country.

    ‘’To address this situation, one of them, Mr Friday Solomon, said the  administration must revisit some of the past agreements on the free movement of goods and services in the sub-region and come up with a policy that will promote the country’s share in international trade.”

     

    ‘If we listen to the noise surrounding the border closure, it shows that our people are  more attracted to imports while the government is trying to put in place the support structures for export. Lack of effective linkage between the stakeholders and government agencies, poor manpower in the non-oil sectors and dearth of information to support youths across the country are the problems confronting the export business’

  • Group honours Shell for youth development

    The Anglo-Dutch oil giant – The Shell Petroleum Development Company of Nigeria Limited (SPDC) has been honoured for providing opportunities to talented secondary school pupils in the Niger Delta to participate in the United Nation’s Model Conferences in the United States.

    Founder and Country Director of Future Trust Initiatives, Dr. Maureen Egbuche, announced the award at the Second African Future Trust Model United Nations Conference in Port Harcourt.

    “It is truly long overdue for society at large to appreciate all Shell’s strategies at securing the future for our younger generations,” Egbuche said.

    According to her, “Shell’s Environmental Conservation Clubs and the Sustainable Development Club laid the foundation for students’ participants in the United Nations Model Conference, USA, a simulation of real life UN sessions by student delegations from around the world.”

    Namibian High Commissioner to Nigeria, Mr. Humphrey Geiseb, presented the award to SPDC’s General Manager, External Relations, Igo Weli.

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    Weli said: “We are glad that our programmes have enabled young people from Nigeria to showcase their talents to the world. Here, in Nigeria, Shell has been at the forefront of commitment to Nigeria’s economic and social development for over 61 years and we continue to show belief in the Nigerian project, supporting the development of the Nigerian people.”

    For six decades, Shell Companies in Nigeria have continued to deliver a suite of youth development programmes in education, sports and entrepreneurial and skill acquisition, he said.

    Apart from scholarship for secondary, graduate and post graduate studies in Nigeria and overseas, Shell Companies support schools by donating ICT centres, libraries, laboratories and school buildings among others, he added.

    They are also leaders in sponsoring and promoting sports. For 20 years, they have promoted and sponsored the NNPC/Shell Cup, a championship that has helped to identify and develop young talented footballers in secondary schools, some of whom have played in the Nigerian national teams, Weli said.

     

  • Ending incessant output shortfalls

    The power sector seems to be passing through one of its worst moments as some generating plants were shut due to gas shortage. The development is having grave consequences on the sector as it cannot boost output to remove the strain on the economy, writes AKINOLA AJIBADE.

     

    Recently, 10 of the 27 power generation plants in the industry were shut due to lack of gas supply. The plants were unable to add a single megawatt (mw) of electricity to the grid since they were built due to lack of access to gas.

    On September 11, the plants were declared unfit for generating electricity because they could not access gas for operation.

    Out of the 10 plants, six were built by the Federal Government under the National Integrated Power Project (NIPP) scheme, which is managed by the Niger Delta Power Holding Company of Nigeria (NDPHC), while four were owned by the government.

    The Federal Government’s objective of establishing the NIPP was to improve electricity generation and distribution.

    The plants, which were shut down are Sapele, Alaoji, Olorunsogo, Omotosho, Ihovbor and Gbarain power stations, inciuding Afam 1V &V, Ibom IPP, AES and ASCO IPP.

    Of note is the development has culminated in the reduction of electricity generated to 2,866 megawatts (mw) from 3,141mw as indicated in the report of the Nigerian Electricity System Operator (NESO).

    Prior to this period, the sector had suffered a similar setback as six of its gas-fired generation plants were shut down in June 2018. The issue, which was second of such incidents in June last year, was attributed to operational hitches, mainly shortage of gas.

    The Transmission Company of Nigeria (TCN) listed the plants as Omotosho, Ihovbor, Azura, Geregu, Olorunsogo and Egbin.

    Like others in the past, the six plants produced lesser volumes of electricity daily during the period.

    It is interesting to note that Egbin Power Plant had earlier suffered similar fate. Reputed to be largest plant in Nigeria as it contributes about 1,300 megawatts of electricity to the national grid, the plant for some time was not having enough gas for production.

    Record shows that the management of Egbin Plc, had at some point in time, struggled for gas, a development which led to shutting down some of its six turbines.

    The hydro power stations were not left out in the search for materials for production. Though the plants provide 30 per cent of electricity in the sector, they are not without their own problems, chief of which was shortage of water.

    They are Kainji, Shiroro and Jebba. Though the problems facing hydro power stations are not in the same degree like that of thermal plants, nevertheless, the plants sometimes struggle to produce optimally.

     

    Stakeholders’ views

    Expectedly, the issue of dormant turbines, which once characterised the sector, has ignited reactions among stakeholders who argued that the challenges facing the sector were systemic and regulatory in nature. According to them, the sector must look inward to solve its infrastructural problems if the industry must record growth.

    The Director of Energy Information, Centre for Energy Studies in Nigeria, Prof. Wunmi Iledare, said generating plants could become dormant once they are not getting enough gas. He observed that problems such as inactivity of the turbines and attendant poor outputs were common in recent times, adding that the problems revolve round three factors.

    The sector, Iledare said, would continue to witness cases of dead plants, until the three issues were addressed.

    Iledare said: “Three things, perhaps, come to mind when we are talking about the issue of turbines that were shut down by their owners, which may be government or the private investors, who bought the assets of the defunct Power Holding Company of Nigeria (PHCN) during privatisation.

    “The first is the issue of accessing gas to power the turbines, the second is the issue of evacuation of electricity when it is needed, while the third one is about the price of the product – electricity.

    According to him, the gas pricing regime, which was implemented years ago, by the Federal Government, favours few operators in the value chain.

    The International Oil Companies (IOCs), IIedare said, produced gas mainly for the Nigerian Liquefied Natural Gas Limited (NLNG), adding that the IOCs made a lot of money from gas exports and paid little in return for domestic users of gas, which are power generation companies.

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    He said once a fair gas pricing regime is in place, all parties involved in the production, sales and use of gas for production would benefit.

    He said when this happens, power firms would not have problems accessing gas. The power distribution firms would be able to supply electricity and shortage of gas, which affects production, would no longer arise.

    Another stakeholder, who did not want to be mentioned, attributed the issue to what he described as operational defaults. He said the issue was caused by shortage of gas, a feedstock used in generating electricity through thermal plants, adding that the problems in the power sector are interwoven in view of the fact that a problem in one unit of energy production could have a spillover effect on the entire industry.

    He said: “Basically, there are so many challenges facing the nation’s power sector. It is either the sector is not unable to access enough gas for production or the Transmission Company of Nigeria (TCN) does not have the capacity to sustain the energy given it by the generation companies, among other issues.

    “Cases abound where TCN does not have the capacity to wheel huge volume of electricity. Often times, the development leads to high frequency and the next thing to do is to shut out the plants.”

     

    Way out

    Iledare, a former country’s president, Association of International Energy Economist (AIEEl), urged TCN to expand its facility to transmit more electricity. He said when TCN enlarged capacity, it would be able to wheel more electricity to the distribution companies  DisCos.

    “The issue is simple. TCN should expand its wheeling capacity. The distribution and generation companies should also try and improve their infrastructure. Once the three key operators in the energy value chain have up-to-date facilities at their disposal, they would operate without impediments and the better for the sector.”

    Other industry stakeholders confirmed that the sector could only rid itself of problems, such as shutting down of the generating plants or poor production once TCN is well positioned to take as much electricity as possible for transmission to the DisCos.

  • ‘Locally manufactured pencils’ll save Nigeria over $2.4b yearly’

    By Emeka Ugwuanyi

     

    An entrepreneur, Mr. Muideen Ibrahim, has said locally-produced pencils will save the country over $2.4 billion (N734.4 billion), if supported by the Federal Government.

    Ibrahim, the chief executive officer, BAMIB Resources and Investment Company Limited, stated this in Lagos.

    He said it was important for the government to discourage importation of goods that could be produced in the  country.

    The manufacturer called for government support to indigenous pencil firms to prevent its importation.

    “There are a lot of multiplier effects we shall give the country, some of which are backward integration of our major raw materials and basic components and massive employment opportunities and contribution to the gross domestic product (GDP). It will also aid strategic investments in other sectors and boost foreign direct investments, among others,” he said.

    Ibrahim said there was need for the government to increase the tariffs on imported pencils or ban its importation to encourage indigenous pencil manufacturers. He said this had worked in the rice sector and other allied products.

    He said as a result of this, a lot of people went into rice production and the country was better for it.

    Read Also: Pencil production begins in Nigeria

     

    Ibrahim urged the government to do something urgently for the pencil manufacturers as local manufacturers were suffering and dying.  He urged the government to enforce the Executive Order 3 and Executive Order 5 to the letter for effective patronage of local products.

    He said: “Unfortunately, the government is still paying lip service to these very good and apt Executive Orders. There must be a committee that will drive these orders and make them work.

    “Not only that, the government must walk the talk on ease of doing business. This is one of the ways to help local manufacturers. Aside from that, there must be aggressive promotions on patriotism.

    “I wonder what is happening to the National Orientation Agency. That agency used to be very vibrant. Call the manufacturers to a roundtable and the government must implement their decisions.  The bane of our challenge in this country is implementation of policies.”

    He said BAMIB’s production capacity is in excess of 450 million pencils yearly. He said there was room for expansion, adding that it was a function of demand and supply.

    He said the company had not broken even and could not even meet its obligations promptly because of many challenges that were militating against it. He however noted that the challenges were surmountable, if the government intervened to ensure sustainability.

    “The challenges confronting us are so numerous, some of which are unhealthy rivalry and stiff competition from low quality pencils from some foreign countries.They use price mechanism to push us out of the market and we cannot sell below our cost price due to the fact that we are operating in a harsh environment and thereby making our production cost high. Multiple taxation and are ports congestion are another big challenge. There are so many agencies at the various ports, technology can be deployed in the ports for efficiency and effectiveness.

  • Nigerians hail Senate over proposed five-year ban on textiles

     

    NIGERIANS have commended the leadership of the Senate over its proposed five-year ban on textile products.
    The Nigerians, who included jobless youths, said the Presidency should support the Senate to create jobs to reduce the large number of unemployed youths.

    A member of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Lagos State, Mr. Yinka Adegbola, praised the Senate, saying that the ban would take the industry out of the woods.

    He said the ban was in line with the Federal Government’s efforts to revive the moribund textile sector.
    “We appreciate the laudable efforts of the Senate that will assist in improving and not mortgaging our economy.

    With the proposed five- year ban, the economy will grow under a robust circumstance. We will no longer depend on China and India for things that can be locally produced.

    “We need to protect our industries because there are various stages of development – when we crawl, fall, stand, walk, and within this period, we scrutinise ourselves for changes.

    A textile worker, Mr Alaba Arogundade, said the ban would end the unnecessary competition that killed local textile manufacturers.

    “ The ban will allow our factories to produce excellently. No matter the initial odds against them, the more they produce and are in the market, the greater their chances of improvement,” he said.

    Few days ago, the Senate appealed to the Federal Government to ban textiles to encourage local production.
    This followed the debate on a motion sponsored by Senator Kabir Barkiya (APC-Katsina Central) during plenary on “Urgent need to revamp the nation’s comatose textile industry”.

    The upper chamber appealed to the Federal Government to provide the infrastructural facilities, especially power supply to local textile manufacturing firms to revamp the industry. It stressed the need the government’s stronger motivation to encourage local textile manufacturing companies, by providing them with soft loans and easy access to credit facilities through the Bank of Industry (BoI).

     

    Read Also: Benin Enterprise Park: Obaseki seals $200m investment for textile industry

    Debating the motion, Barkiya noted that the industry played a significant role in the manufacturing sector with a record of over 140 firms in the 1960s and 1970s.

    “The textile industry recorded an annual growth of 67 per cent and as at 1991, employed above 25 per cent of the workers in the manufacturing sector.

    He said: “The textile industry was then the highest employer of labour apart from the civil service.”
    He noted that the industry had witnessed massive decline in the last two decades with many textile companies, such as Kaduna Textile, Kano Textile and Aba Textile, closing shops and throwing their workers into the job market.

    The lawmaker further said government policies like increased taxation, high cost of production, trade liberalisation resulting in massive importation of textile materials had negatively affected the production of local textile materials.

    Barkiya said the resuscitation of the industry would provide more revenue and assist the government to diversify the economy.

    Contributing, Senator Robert Boroffice (APC-Ondo North), said the importation of textile materials was as a result of the comatose level of the industry.

    “The closure of our borders is an eye opener. China closed its borders for 40 years for its industrialisation and development.

    “I believe that the closure of our borders should be extended to allow us put our house in order,” he added.
    Boroffice, who is the Deputy Senate Leader, said the extension of the closure of the borders would serve as an opportunity to resuscitate the textile industry among others that had been affected by smuggling.

  • Stakeholders seek better mining ecosystem

    Miners, investors, civil servants, top government functionaries and other stakeholders in the solid minerals mining sector converged on Ado-Ekiti, the Ekiti State capital last week during which they sought establishment of mineral and metals development bank and better miners-community ties to curb conflicts and illegal mining. Southwest Bureau Chief BISI OLADELE reports.

     

    For the third time since 2015 when Ekiti State Governor Dr. Kayode Fayemi served as Minister of Mines and Solid Minerals Development, miners, investors, academics, state and federal civil servants, regulators and other stakeholders gathered in Ado-Ekiti, the Ekiti State capital last week for their council meeting.

    For three days, they reviewed the industry’s challenges and prospects and proffered solutions that will feed government policies and help build a healthier relationship between miners and mining communities.

    The stakeholders wore bright faces for coming together in Fayemi’s backyard. The governor, as it showed in their enthusiasm, is the icon of modern-day mining, having initiated several policies and ideas that currently make the industry work better to the benefit of all stakeholders.

    They recalled how the governor, who is serving a second term, laid the foundation for better mining and mineral development by starting the council and holding regular meetings where all stakeholders in the sector lend their voices to the making of a better mining sector.

    The council, which is christened National Council of Mining and Mineral Resources Development, has all participants in the sector as members. They recalled how he initiated and achieved the national mining roadmap, facilitated a $150 million loan to support the sector, how he facilitated automation of the procedure for obtaining mining licenses and how he mobilized human and other resources to boost the sector in becoming a major contributor to the country’s Gross Domestic Product (GDP), among others-all within three years.

    The love and confidence they have in Fayemi also showed in their attendance as states across the six zones were fully represented. So were academics, investors, consultants, miners and researchers.

    The theme of the meeting was “Nigeria Minerals and Metals Sector: Spectrum for Investment Opportunities for Economic Growth and Development.”

    Declaring the meeting open after two days of technical sessions, Fayemi explained that the council was formed with the aim of fostering collaboration and inclusion among stakeholders for better policy formulation and implementation.

    He said: “The National Council on Mining and Mineral Resources Development (NCMMRD) began in 2017 because there was a need for collaboration, inclusion and broad-based consultation of all stakeholders in policy formulation and implementation. It gladdens my heart that the practice is sustained and waxing stronger. I have followed the deliberations of the technical sessions on strategy for sustainable mining and value addition, minerals and metal governance, fostering synergy among the tiers of governments, addressing the challenges of internal mining activities for improved revenue generation, addressing security challenges in the sector and addressing the infrastructure gaps in the minerals and metals sector.

    “The NCMMRD is to support the aspirations and objectives of the mining roadmap, and was designed to be a well-structured platform where stakeholders in the sector can converge periodically and contribute to policy development and agree on other interventions, to effectively guide government in achieving the full implementation of the roadmap.

    “The inclusion of states as critical stakeholders in the council is particularly noteworthy. Although a lot has been done by the ministry to improve relations with states, it is imperative that we continue to build bridges of understanding in federal-state relations to maximise the benefits accruable from mining and mineral resources development.”

    Read Also: Push underway for mining sector’s rebound

    The governor highlighted gains of the past years to include the resuscitation of the Mineral Resources and Environmental Management Committees (MIREMCO) in more than 30 states including Ekiti, even as he added that “the Nigerian mining sector enjoys the goodwill of the development partners, and this resulted in the approval of the $150 million mining diversification programme – MinDiver in 2017.”

    Fayemi stressed that mining was already receiving more attention from the current government. “Apart from the increased allocation of resources, special funds are also available for the sector. In addition, the ministry is improving on the geological data on the Nigerian mineral resources – the Nigerian Integrated Mineral Exploration Project (NIMEP) is one such critical work. The SMDF has also become active in mobilising resources for the sector,” he said.

    The governor expressed dissatisfaction that miners were only able to access less than five per cent of the N2.5 billion funds made available for them. He implored them to wake up to the need to access the largesse by working hard to meet the requirements. He noted that accessing it will greatly assist in training for safe mining practices and recovering of abandoned mining sites in the country, among others.

    Fayemi said: “Though the mining sector is not where it used to be, we are also not where we ought to be. For example, Gross Domestic Product (GDP) from mining in Nigeria decreased to N1491129.02 million in the second quarter of this year from N1514641.29 million in the first quarter.”

    The governor challenged stakeholders to work harder to contribute higher quota towards the growth of the sector, as espoused in the roadmap for the five per cent contribution to the National GDP.

    Stressing the need to deepen diversification of the economy, he said: “We need to continue to advocate for diversification of the economy. There are economic opportunities in mining and mineral resources development if properly harnessed. We need to guard against unsafe mining practices and support our artisanal miners to better organise themselves and reduce the incidence where individuals are exploiting the state resources to the detriment of socio-economic development of our country.

    The Minister of Mines and Steel, Olamilekan Adegbite noted that one of the core pillars of President Muhammadu Buhari’s economic policy is the repositioning of mining and agriculture with a view to maximally exploring their potential for diversification of the economy, creating wealth, increasing contribution to the GDP, creating jobs and expanding the range of economic opportunities available to Nigerians.

    To achieve the above, Adegbite said the administration initiated a number of reforms to reposition the minerals and metals sector for sustainable growth and development.

    He pointed out that a major effort to achieve the lofty objectives was the development of the roadmap for the growth and development of the Nigerian mining industry by his predecessor, Dr. Fayemi. The roadmap, he explained, will unleash the enormous potential in the sector and guide investment decisions of the ministry over the next 25 years.

    “The roadmap was graciously approved by the Federal Executive Council (FEC) on August 31, 2016 for implementation and the benefits are coming almost every day,” he said.

    According to him, the major highlights of the roadmap are to be achieved through stakeholders’ engagement which was the major reason for the failure of many of past policies. For this purpose, Adegbite said the ministry has made stakeholders’ engagement a priority, adding that it has been yielding positive results for the sector.

    Reeling off some of the fruits yielded, Adegbite said the ministry has been addressing poverty in the sector by formalising artisanal miners into co-operative groups for easier management and access to financial support and commodity market. He pointed out that “a total of 1,759 artisanal and small-scale miners’ sites have been identified in Nigeria” while 1,336 artisanal mining operators have also been drawn into forming co-operatives in readiness to access small-scale mining licenses.

    The minister added that through the ministry’s support, some of the miners have scaled up their operations and transformed to small-scale mining firms operating with valid mineral titles. The ministry, through the engagements, has also initiated the establishment of mineral buying centres to help artisanal miners access the market through a formal economic system.

    For this purpose, the minister revealed that the ministry has issued registration certificates to 252 mineral buying centre operators across Nigeria.

    The ministry also established a credit facility, the Nigerian Artisanal and Small-Scale Mining Financing Support Fund, in collaboration with the Bank of Industry where operators can access up to N10 million in business support at a concessionary five per cent interest rate.

    Other achievements include automation of licenses, permits and approvals process and mining cadastre system, facilitation of a $150 million World Bank loan to support implementation of projects and programmes and collaboration with the Ministry of Environment on the issuance of Environmental Impact Assessment (EIA) certificates to mining companies.

    Others include production of the mining environment regulatory compliance handbook, production of operational guidelines for state  MIREMCO, community development projects as well as approval to award a N15 billion contract to five exploration companies to explore priority minerals such as gold, lead, zinc, iron ore and rare earth metals.

    The minister also said engagements have resulted in improved relationship with host mining communities where child labour has been prevented with women being empowered. All these, he said, have promoted safe mining with structured revenue to the government.

    In a 48-point communique issued at the end of the meeting, the council demanded establishment of minerals and metals development bank to provide funds for players and support for infrastructural development of the sector. It further urged the Federal Government to adopt the Build, Operate and Transfer (BOT) model of public-private-partnership for infrastructural development of the sector.

    The council also demanded a review of the mechanism for the effective implementation of community development agreements to eliminate disputes, harmonisation of taxes to address multiple taxation and encouragement of indigenous value-addition from mines to the minerals market, among others.

     

     The NCMMRD is to support the aspirations and objectives of the mining roadmap, and was designed to be a well-structured platform where stakeholders in the sector can converge periodically and contribute to policy development and agree on other interventions, to effectively guide government in achieving the full implementation of the roadmap

     

  • ‘Why tax compliance must be consistent’

    By Ambrose Nnaji  

     

    Nigeria’s tax system is confronted with many problems, which include multiplicity of taxes, bad administration, non-availability of database and policy inconsistency.

    To solve the problem, the Nigerian- Norwegian Chamber of Commerce (NNCC) Chairman, Chijioke Igwe, has canvassed the need to harmonise tax laws to enable stakeholders understand them.

    He spoke at a Breakfast Meeting of the chamber in Lagos.

    Speaking on the theme: “The Nigerian tax compliance challenge: Companies vs. regulatory authorities”, he said the harmonisation became necessary to ensure that firms stayed within the law.

    Igwe said a some of the objectives of the chamber was to quantify the volume of businesses yearly, adding  that there  is a dearth of data on that.

    Read Also: Nigeria among world’s top 20 in tax collection, says Fowler

    NNCC Director-General Sarah Dumbrill noted that there were opportunities in every sector. She, however, stated that Norwegian firms had competence and technology to contribute to the  economy.

    “Norway is a great market and can address a lot of challenges, so, it’s always easy for them to find new opportunities and obviously in Africa. Nigeria is one of the biggest markets in Africa and it’s going to continue growing so it’s important for companies to come and see what’s happening and find a niche.

    ‘’A lot of new sectors are opening in Nigeria from Norwegian companies from Information Communication Technology (ICT), renewables, aquaculture The Norwegian companies are more willing to come to West Africa to do business, find partners, she stated, adding its very important for them to have a clear vision of what the tax regulation is in Nigeria is all about.’’

    She continued: “Business is growing and will still grow between Nigeria and Norway. We are in the oil and gas sector. We are also into aquaculture; aquaculture business has been on for over 200 years and still growing. Nigeria is still quite unknown from the European countries, so it’s a challenge for them to come here, it’s not emerging market but as soon as we conclude on this discussion they will always find businesses and this is the opportunity,” she said.

    She admitted that it was a challenge coming to Nigeria but  that  they were determined to do business here. She observed that opportunities exist in the oil and gas, education, agriculture sectors.