THE Federal Government is to review the Bureau of Public Procurement Act to promote local goods and services, Minister of Information and Culture Lai Mohammed said yesterday.
He said the government was determined to diversify the nation’s economy through made-in-Nigeria goods and services.
The minister added that additional 28 offices for issuance of residence permits in Nigeria will soon be opened to attract foreign investors.
Mohammed, who unfolded these plans at the Ninth Town Hall Meeting of the Federal Government in Umuahia, said there was no going back in seeking alternative to dependence on oil.
He said the “Change Begins With Me Campaign”, which was launched by President Muhammadu Buhari on September 8, 2016, was “aimed at achieving a paradigm shift in the way we do things”.
Mohammed said: “Boosting industrial development, especially through the local production of goods and services, is a major plank of this policy. Patronising Made-in-Nigeria goods and services is also key to the success of the policy.
“In this regard, I can boldly say that Abia State is a pacesetter.
“Today, the state supplies high-quality military boots to our military, and that is just one of such impressive ventures by the state. So, while the state is boosting local production of goods and services, the military is patronising Made-in-Nigeria goods. It’s a symbiotic relationship and there is no better way to give teeth to the economic diversification policy.
“A major way of encouraging growth as well as boosting the nation’s economy is by helping the small businesses to blossom. To achieve this, the Federal Government has taken the bull by the horns by working with the states to address the root problems facing the Micro, Small and Medium Enterprises (MSME).
“This is being done through clinics being organised in each state and this will be followed up with a huge MSME Trade Fair in Abuja later in the year, where grant agencies and investors will be invited to provide funds for outstanding businesses. I am happy to announce that the clinic was launched here in Abia State, specifically in Aba, on the 26th and 27th of January, 2017. That’s a befitting tribute to Abia’s trail-blazing efforts at nurturing MSMEs.”
Mohammed said the Federal Executive Council (FEC) has approved plans to review the BPP Act to promote local goods and services.
He added: “Talking about Made-in-Nigeria products, let me use this important national platform to announce that the Federal Executive Council (FEC) has already approved measures to sensitise Nigerians to patronise such products.
“These measures include the approval given to the Bureau of Public Procurement to increase the patronage of Made-in-Nigeria good and services through a review of its Act.”
On the ease of doing business, the minister said the Federal Government has approved the opening of additional 28 offices for issuance of Residence Permits in Nigeria for foreign investors.
Minister of State for mines and Steel Development Alhaji Bawa Bwari said he admired “the spirit of never say die of Ndigbo”, which they transferred to Rangers International football Club with which they projected the zone and the country.
Bwari said it was that kind of spirit Nigerians needed to move the country out of recession, stressing that there are over 44 different minerals deposits across the country.
He noted that almost every council area in the country had mineral deposits in commercial quantity, adding that the Federal Government has been able to take back Ajeokuta Steel Mill, which has been a problem for about 35 years now.
Minister of Labour Dr. Chris Ngige said the Federal Government was emphasising on made in Nigeria products which Abia State is championing.
“All the cloths I have been wearing for the past two years are all made in Aba,” he said.
He said the Federal Government was ready to cooperate with state governments to make them self-sufficient instead of coming to Abuja every end of the month for federal allocation.
Minister of Agriculture Chief Audu Ogbeh said governments in the zone should go back and revive the several farm settlements built by the late Premier of the defunct Eastern Nigeria, Dr. Michael Okpara.
Ogbeh recalled that many years ago people from Malaysia came to Nigeria and took some palm seedlings and “today, they are doing well”.
“Why can’t we go back to those days when we were exporting palm oil, cocoa and cashew nuts among others,” he said.
He said the government would soon relaunch cocoa in the Southeast zone with new improved variety seedlings and cocoa fertiliser, which is unique to the area with the aim of having improved yields.
Tag: diversification
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Diversification: Fed Govt to review BPP Act to promote local goods, says minister
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E-commerce as critical tool for economic diversification
E-commerce has been a strong catalyst for economic development in Nigeria. It has led to the creation of jobs, boosted productivity, hugely reduced the cost of doing business and provided access to new markets. For consumers, it has made more goods available at competitive prices, leading to significant gains in the general standard of living. Deposit Money Banks have played an essential supporting role in the country’s burgeoning e-commerce industry, which has indeed been the toast of both local and foreign investment.
It has helped local tech companies thrive, as well as enabled global tech players from Silicon Valley to Europe looking to capitalize on Nigeria’s large population and its potential as a hub on the African continent, to successfully operate. The contribution of the banking sector to e-commerce has taken several forms. Firstly, as financial institutions, they have provided the technology infrastructure critical to the flow of payments to and from the agents participating in ecommerce. The backbone of ecommerce is payments, and as ecommerce continues to grow, and online transactions soar, users should rely more on the robustness, security and convenience that this financial infrastructure provides. Ecommerce is only able to grow when ease, convenience, and security is ensured.
Due to the efforts of deposit money banks in ensuring safety and trust, the inhibitive fear customers have in conducting online transactions has been significantly allayed, leading to the inclusion of more users and the expansion of the ecommerce ecosystem.
The role of deposit money banks in supporting organization in their efforts to promote e-commerce cannot be overemphasised. Additionally, deposit money banks have supported organisations in leveraging ecommerce technology to engage with their customers. Stemming from their industry experience, banks have assisted businesses in adopting e-commerce in their delivery of goods and services, especially in setting up the infrastructure and payment capabilities for them to successfully engage in e-commerce, thereby enabling such clients receive payments efficiently for the goods and services they offer.
Due to this vital support, customers are conveniently able to pay for services such as electricity and water bills, Internet and cable subscriptions; airline and cinema tickets; even financial services like insurance and payment of taxes from the comfort of their homes. Some of the benefits that businesses have gained from implementation of ecommerce are increased revenue as they are better able to reach more customers, achieve higher customer satisfaction, cost reduction, and overall improvement in efficiency. Deposit money banks have contributed to the growth of ecommerce by gradually pulling customers away from offline branch banking onto online banking, which includes e-payments and mobile transfers.
By encouraging the use of payment technologies, and offering more of their products digitally, banks are discouraging customers from standing in long queues, thereby ensuring their convenience. Apart from the infrastructural role that banks have had to play in the sector, they have also continued to provide their traditional services to players in the sector such as financing support to ecommerce enterprises in the form of working capital, financing for expansion, etc. Some of the higher profile funding support includes Access bank’s assistance to Uber’s expansion drive in Nigeria. Access bank established a financing scheme in conjunction with KIA motors and Hyundai to grow Uber’s footprint by increasing its drivers by as much as fivefold.
First bank also pushed this drive forward by helping drivers acquire used cars at relatively low interest rates. Jumia Nigeria also partnered with First Bank of Nigeria to set up a consumer finance scheme, where customers can purchase items on credit from the online retailer through a First Bank Naira Credit Card. Konga likewise partnered with One Credit, a Nigerian micro-finance bank to launch the “Buy Now Pay Later” scheme, an affordable consumer credit facility that enables customers pay for online purchases in equal monthly installments. GT Bank also recently launched “The SME MarketHub”, an e-commerce portal for Small and Medium Scale Enterprises (SMEs). The portal is designed to enable Nigerian entrepreneurs migrate their businesses online and take advantage of the vast international and local sales opportunities within this space.
Fidelity Bank also recently launched The Fidelity GreenMall, an online marketplace with fully integrated ecommerce capabilities for online payments, delivery logistics, advertising, and business networking opportunities, amongst others. These efforts are also critical in enhancing financial inclusion in the economy.
Besides, deposit money banks have been greatly instrumental in enhancing financial inclusion in the economy. With the use of internet enabled mobile phones and SMS (leveraging the telecoms sector), mobile devices are increasingly being used for financial services in Nigeria, thereby making it possible for customers to conduct financial transactions using these channels. As more bank customers become financially included and access banking products through digital and mobile platforms, they become more amenable to ecommerce, thereby expanding it further. •This article, written on behalf of Bankers Committee of Nigeria, is one of the series, focused on raising awareness around Nigerian banks’ efforts and most importantly, educating the public on opportunities available to them to foster their participation in the country’s diversification efforts.
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CIBN to Buhari: show commitment to diversification
President/Chairman of Council, Chattered Institute of Bankers of Nigeria (CIBN), Prof SegunAjibola has urged the Federal Government and government at all levels to show strong commitment to the diversification of the economy.
He spoke at this year’s annual dinner to commemorate the 80th anniversary of the Nigerian International Chamber of Commerce and Industry, held at the Metropolitan Club, Victoria Island, Lagos.
The theme was: Impact of Prospective Policies on non-oil imports- The Nigerian Experience from 1986 to Date.
Ajibola said government would need to set up a task force that would review the examples of other countries that had been in situation similar to Nigeria’s.
According to him, government should support the small and medium sized enterprises (SMEs) by providing the enabling environment for business to grow and production of goods and services that would compete favourably in the global market.
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‘OPS participation key to diversification’
The participation of the private sector is key to diversifying the economy, the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, has said.
Enelamah, who spoke at the ongoing 37th Kano International Trade Fair, enjoined Small & Medium Enterprises (SMEs) to take advantage of robust government policies to grow their businesses and also create jobs.
He said the fair was designed to provide a common platform for the promotion of entrepreneurship and investment in Kano.
Kano Chamber of Commerce, Industry, Mines and Agriculture (KACCIMA) President Alhaji Umar Farouk Rabiu Dansuleka praised some indigenous companies, such as Dangote Group, for sustaining the country’s economic interest over the years by promoting locally-made goods.
He recalled the exceptional performance of the group at the 2013 Kano International Trade Fair where the company sold more than 1000 trucks of cement.
Dansuleka noted the same feat could be repeated this year as Dangote secured over 50 new dealers for its products on the first day of the fair.
“KACCIMA is expecting a lot of products from Dangote at this fair and we have discussed with the management to sell its product at a lower rate.
“At this year’s event are over 15 countries from the West African sub-region, four countries from the EU and Asia,” he said.
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Diversification: Fed Govt explores non-oil resources in Bayelsa
The Federal Government has launched a programme to identify and explore other mineral resources besides crude oil in Bayelsa State as part of its policy of diversifying the economy.
A team from the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) was in the state, yesterday, to assess and evaluate the availability of non-oil minerals and reach agreements for their development.
The RMAFC’ Team on Nationwide Monitoring Exercise on Royalties led by a Director in the commission, Chief Sanyon Omiri, met with the Deputy Governor of the state, Rear Admiral John Jonah (retd) to discuss modalities for the exploration.
Omiri noted that since the beginning of the economic recession, the non-oil sector accounted for 50 percent of the monthly revenue accruing to the federation account.
He said following the implementation of the diversification policy the sector would contribute more in the nearest future.
He lamented that Bayelsa got a paltry sum of N1.2million as its share of 13 per cent derivation from the non-oil sector.
“Bayelsa currently occupies the 36th position on the table of non-oil remittance to the Federation Account, base on June allocations”, he said.
According to him the state could move up to an appreciable position and increase its share of the 13% derivation from non-oil revenue if all leakages were blocked with illegal miners captured into the tax net.
He said that the team would verify and ascertain all the mining companies, number and duration of mining leases issued to each operator, and determine means of increasing revenue generation from mining and solid mineral exploration.
He said: “We are highly endowed with many untapped mineral resources, especially Bayelsa. But with this our exercise, I can assure you that we will put things in the right direction.
“Bayelsa is endowed with good sand, clay and many other resources. With this our verification, many minerals will be determined.”
In his remarks, Jonah who said the government was excited at the ongoing verification described it as a step in the right direction.
He asked the team do a thorough job, noting that if properly conducted, the exercise would provide a viable alternative source of revenue to the state.
He said that every state is endowed with mineral resources, adding that the current economic recession was biting harder because of a long period of overdependence on revenues accruing from the oil sector.
He said there had been a lack of political will to explore and exploit other natural endowments, including agriculture to boost the nation’s economy.
Assuring the team of the government’s support, Jonah urged its members to engage the appropriate government ministries, agencies, departments and other stakeholders in the exercise.
He said: “Yes, it is true that Bayelsa State isn’t doing well in the non-oil sector. So they (RMAFC) are going to carry out an audit of what we have because some of the non-oil mineral resources they have in mind may be here and we may not be aware.
At the federal level, the government is trying to get a consultant to work it out for the entire country.“I’m firmly of the belief that there is no land in Nigeria that has no minerals. It depends on how you maximise the exploitation of it. So, at the end of this exercise, this the team will tell us what we have and how we can get it out from the soil.
“Just like the Federal Government, we also have an interest in taxes. We have a common interest, so we will certainly benefit from the exercise. But the extent of benefit is what I will not be able to define now”.
Also, the Commissioner for Information, Mr Jonathan Obuebite, said if the team carried out their plans, it oils signal the seriousness of the Federal Government on diversification.
He said developing other non-oil sectors would further create employment and reduce the problems of joblessness in the country.
He said: “We are happy because the mission is to come and see the mineral resources we have in Bayelsa that can be explored to increase our revenue and contribute to national revenue.
“If that is done it means that Nigeria is serious now to move out of total dependence on oil. We have the oil, but just like every other nations but, we should have alternative sources of revenue.
“This, I think if properly done will lead to us having if possible 60 percent of resources from other sources to boost our economy and grow the system. Whenever a new mineral is discovered, employment is generated too. It will also address the case of unemployment”.
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‘Standardisation key to economic diversification’
•Urges SONCAP managers on professionalism
The Secretary to the Government of the Federation, Mr Babachir Lawal, has reiterated the central role of standards and quality assurance in the nation’s efforts to diversify its economy from oil to other areas such as agriculture and solid minerals for local consumption and export.
Speaking in Abuja during a visit of the Director-General of the Standards Organisation of Nigeria (SON), Mr. Osita Aboloma, to the SGF in his office, Lawal said SON’s mandate to promote standardisation and quality assurance activities in Nigeria are key to the nation’s diversification efforts, particularly with regard to the international acceptance of the country’s produce and other export commodities and products.
Lawal said standards remain a key benchmark for facilitating trade and investment activities among nations. He enjoined the SON DG to work closer with all relevant ministries and agencies of government as well as stakeholders in the organised private sector to reverse the trend of rejection of Nigeria’s produce export.
The SGF also reiterated the full backing of the Federal Government for the fight against the influx and circulation of substandard products in markets being championed by the SON.
He called for the support of the citizenry in the government’s fight against corruption in all facets of the nation’s life.
In his response, the SON Director-General expressed appreciation to President Muhammadu Buhari through the SGF for the confidence reposed in him to take the SON to the next level by his appointment.
He promised to deploy all available resources to reposition the organisation towards delivering on its core mandate.
Aboloma assured the SGF of his preparedness to intensify the collaboration and synergy with other stakeholders in driving the success of the economic diversification efforts, as well the fight against the circulation of substandard products through diligent prosecution of offenders.
Also, Aboloma has urged the Independent Accredited Firms (IAFs), managers of SON off shore Conformity Assessment Program (SONCAP) to live up to expectations of Nigerians in the inspection of goods coming into the country.
The SON chief who gave the charge at a meeting with the program managers in Abuja, said part of the mandate given to the managers, is to ensure that only tested and certified products are allowed into the country, saying anything less will not be accepted by SON and Nigerians.
He said, “The Independent Accredited Firms made up of INTERTEK, SGS, COTECNA and CCIC were told that the diversification of the Nigerian economy has brought a lot to bear on the SON in the development of the non-oil sector, particularly in the area of agriculture and industry.
“You have to do all within the mandate given to you by SON to ensure that Nigerian businesses are protected from the menace of substandard products from overseas. The issue of quality should be taken seriously, Quality increases income and affect the lives of the people including health.”
Aboloma said the interest of Nigerians should be first above every other interest, saying the change begins with me mantra of the federal government should be effective in us all.”
The Director General noted that change and improvement are synonymous, adding that for any system to change, it must not be rigid, there must be room for constructive criticism for the system to move forward.
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NEPAD stresses diversification through agric
For Nigeria to effectively diversify its economy, emphasis must be placed on agriculture, the National Coordinator/Chief Executive Officer, New Partnership for Africa’s Development, Mrs. Gloria Akobundu, has said.
According to her, NEPAD under her leadership would adopt this strategy to ensure food security and reduce the restiveness in various parts of Nigeria.
She stated this at her maiden briefing in Abuja, noting that the organisation had identified four major areas upon which it would launch a new approach to achieve its objectives.
Mrs Akobundu said: “These areas include economic diversification with emphasis on agriculture and food security; rethinking and realigning our engagements with development partners and other parts of the world in line with the reality of dwindling oil revenue and receipts.”
She also spoke about the plan to rebrand and relaunch NEPAD Nigeria “for greater meaning and efficacy in the lives of our people”.
The NEPAD chief observed that the agency’s vision, as encompassing as it appears to be, might not have envisioned all the realities.
These, she said, “have come as a result of our growing population, new habits, problems, such as Boko Haram insurgency and the Niger Delta armed struggle, all of which have left various fallout that have left us with an army of Internally Displaced Persons, the maimed, homeless and the likes.
“All of these are what we seek to address in our new approach so that the vision of NEPAD will make meaning to the grassroots, to the trader or artisan in Monday Market of Maiduguri, Alaba Market of Lagos and even in Ochanja Market of Onitsha.”
She explained that NEPAD’s vision was to establish a veritable framework for the development of Nigerians in various sectors and areas of national life, ranging from trade and investment to the development of infrastructure across the country.
“It is not part of my mandate here to question what we have achieved in the years gone by since this partnership was set up in the early 2000. What will occupy me in the months and years ahead will certainly be what we can do to leverage our common efforts to make NEPAD better,” Mrs Akobundu added.
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LCCI: diversification without sustainability’ll not work
For the ongoing economic diversification effort to yield the desired results, there is the need for sustainability, Trade Promotion Board Vice President/Chairman, Lagos Chamber of Commerce and Industry, Mr. Sola Oyetayo, has said.
He said while the oil and gas sector could be said to be sufficiently diversified, the nation had failed to sustain its diversification in terms of maintaining the refineries and the value chain in the sector.
Oyetayo recalled earlier Nigeria was not importing refined products, as it had sufficient products. He, however, regretted that because of lack of maintenance and sustainability, Nigeria had become one of the highest importers of refined petroleum products.
He said with what happened in the oil and gas sector, the government should sustain the growth in the agric sector. His words: “We should aim for sustained growth with a clear cut sustainability road map. This cannot be possible except through the implementation of the right policies.”
On the Lagos International Trade Fair, Oyetayo called on the government to speed up the handing over of the Trade Fair complex to the Chamber like the Kaduna Trade Fair complex, which the government had transferred to the Chamber.
He regretted that the complex had been embroiled in controversy since it was concessioned, wondering the reason behind the deal. He said fair grounds were purpose –built and that a megacity, such as Lagos, should have a befitting fair and exhibition ground.
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‘Substandard products threaten economic diversification’
Diversification of the economy may be mirage if substandard products still flood the market, Standards Organisation of Nigeria (SON) Director-General, Dr Paul Angya has said.
Angya said substandard products were overwhelming the country, adding that they are a threat to the economy.
He said: “This is a very challenging time in our history and we must lay emphasis on standard. Which area can we say is immune from the incidence of substandard good? Substandard products have overrun the economy. They have wreaked havoc the nation’s economy.
“If we do not sanitise the country of substandard goods, all efforts for diversification of the nation’s economy will fail. Until we clean up the country of substandard products, our economy has not started. We, as a nation, have not started.
“We are in another type of war. These substandard products are seriously attacking our economy; until we address the upsurge, we would make no headway.”
Angya said the agency is collaborating with the Nigeria Customs Service (NCS) to fight the menace of substandard goods import.
“SON and NCS have concluded arrangements to fight importation of substandard products into the country,” he said, adding that there was need for the establishment of a system that could support SON to raise the alarm on non-conformity and substandard products in the ports and borders.
He said the nation has declared war on substandard products, emphasising that SON would need the support of an institution such as NCS in fighting the war.
He said: “Our mandate and what we do is very important for people living quality and fulfilled life. People can only live a quality life if there is quality goods. Our job affects people’s lives. That is why we need collaboration from the Customs because they are the first point of call of importation.”
Angya said the organisation had shut down the Electronic Professional Clearance Certificate (EPCC) platform, so that people bringing goods into Nigeria conformed to SONCAP regime.
“For us to succeed, we need the cooperation of Customs as the landlords of the ports. They are first point of contact, when products land. So, we need their support; we need their manpower and their expertise. Customs have been assisting us in the past; but, we are asking them to give us more. The problem is there. It has not gone away. We need additional support from them to be able to curb the influx of substandard products in the country,” he said.
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Editors advocate economic diversification
The Nigerian Guild of Editors (NGE) has urged the government to diversify the economy.
In a communique at the end of the 12th All Nigerian Editors’ Conference in Port Harcourt, Rivers State capital, it said there was a problem with the economy following the over-reliance on oil and gas revenue.
With the theme: ‘’Economic Diversification: Agriculture as Option for a Prosperous Nigeria’’, the conference was chaired by former Ogun State Governor Chief Olusegun Osoba.
The communiqué was signed by NGE President Mrs Funke Egbemode and General Secretary Victoria Ibanga.
NGE said agriculture remained the most viable option to revive the economy, create employment and usher in prosperity.
It noted that agriculture suffered neglect due to negative mindset, reliance on outdated methods and underfunding.
NGE urged the government to strengthen policies protecting farmers against influx of foreign agricultural products and encourage production for food sufficiency and processing of raw materials for export.
The media, it said, should play a role in redirecting the consciousness of Nigerians, especially youths, in embracing modern, technology-driven agriculture.
“Skills needed for agricultural production and processing should be stressed above mere certification for the sake of it. The government should recapitalise and make more functional the Bank of Agriculture and other institutions relevant to the agricultural programmes of the country.
“Formation of more Farmers’ Co-operative societies should be encouraged while those in existence should be strengthened to improve productivity.
‘’States should collaborate in agricultural production and processing, using areas they have comparative advantage,” NGE said.
The Guild lamented decline in the quality of journalism practice and non-adherence to the ethic of the profession.
It urged editors to make efforts to redress the situation.