The Nation Newspaper

Tag: Economic growth

  • ICAN lauds Dangote on economic growth, job creation

    The Institute of Chartered Accountants of Nigeria (ICAN) has lauded the pioneering roles of  pan-African conglomerate, Dangote Group in shaping the economy for the benefit of Nigerians and other African countries.

    It praised the management of the company for the giant strides it has been undertaking in manufacturing business to make the country self-sufficient in a number of commodities that would have otherwise made the nation spend huge foreign exchange in importing.

    Its President, Razak Jayeola made these remarks when he led the executive members of the body to the Lagos head office of the Group on a courtesy visit.

    He said the company has become a pride of Africa in its trail blazing efforts in manufacturing businesses such as cement and sugar which had hitherto caused the country huge foreign exchange (forex) to import for which the nation is now self-sufficient and even now exporting.

    Jayeola also alluded to 650,000 bpd refinery currently under construction which will also save Nigeria forex which is presently being spent on importation of petroleum products.

    The Institute particularly praised the ingenuity of the management led by Group Managing Director of Dangote Industries Limited (DIL), Mr Olakunle Alake.

    Jayeola said: “It shows from all indication that he has skills laced with strategy with which he has been steering the company to profitability.

    “Dangote Group is a pride of Africa, its contribution to job creation is unquantifiable Nigeria has achieved self-sufficiency in cement and sugar through the efforts of the company, Nigerians can’t thank you enough.”

    He also explained some of the challenges being faced by the Institute and efforts being made by his leadership to turn things around.

    He disclosed that the institute has commenced stakeholders fora to address its challenges.

  • FMITI promotes economic growth, unveils achievement report

    The Federal Ministry of Industry, Trade and Investment (FMITI) has released a detailed document highlighting its  achievements over the past three and a half years under the President Muhammadu Buhari administration.

    The extract compendia, which contains the ministry’s contribution to economic growth, are now available in airports, major hotels, banks, hospitals, and ministries across the country.

    The 44-page extract provides specific insight into reforms, projects, and initiatives implemented under the leadership of Honourable Minister, Okey Enelamah.

    Read also: Abia APC counters moves to reappoint Enelamah minister

    “I am proud of the great work the ministry has achieved in the last few years,” said Enelamah at the launch event.

    “We have consistently delivered on our promise to promote economic growth and generate wealth through policies that attract investment and develop enterprises, and it is essential that we communicate our achievements to Nigerians, even as we continue the work to transform the nation’s economy positively.”

  • FCMB urges SMEs to promote economic growth

    First City Monument Bank (FCMB) has urged small and medium scale enterprises (SMEs) to take the lead in driving the diversification and growth of the Nigerian economy. This, according to the bank, is due to the catalytic role they play in the lives of people and the society.

    The SMEs over the years, have stimulated national and economic development in the areas of production, employment and income generation. This is while making serious contribution to exports as well as facilitating equitable distribution of income, among other significant impacts.

    Towards this end, FCMB has reiterated its commitment to sustain the level of its support to SMEs through increased lending, capacity building, advisory and value-added offerings that would boost their performance.

    The bank gave the assurance during the fifth in its series of free capacity building programmes, tagged ‘’Business Enterprises and Sustainability Training (BEST)’’ organised for existing and start-up SMEs in Lagos. This followed the success of the previous editions of the training last year across the country.

    The initiative, led by FCMB Training Academy, the bank’s Business Banking Group and seasoned facilitators, focused on business and skills development, marketing, finance and accounting for SMEs. It covered various topical areas such as identifying business opportunities, surviving in a harsh business environment, improving productivity, raising capital, optimising sales, cost and revenue management, among others.

    Speaking on the BEST initiative, the Executive Director, Business Development of FCMB, Mrs. Bukola Smith, said the bank recognises the increasing role and impact of SMEs.

    According to her,  the BEST initiative is one of the innovative ways we support the growth of our SME customers because without effective training and exposure, resounding success could be quite difficult to achieve. In FCMB, we are passionate about helping our customers thrive in a sustainable manner.

    “We believe this comprehensive training programme will go a long way to impact positively on the SME operators who have participated in our training. It will propel them to further develop themselves. This will also help them take their respective businesses to the next level and compete favourably within and outside the Nigerian market. We, therefore urge participants to take advantage of the unique opportunities provided by FCMB,’’ she said.

    Also commenting, the Head, Training Academy of FCMB, Sola Oyegbade stated that, “one of our goals for organising this free training for the SMEs was borne out of  our commitment as a Bank to continually seek different avenues and innovative ways we can empower, promote and support start-ups and entrepreneurs. This is to help them grow their businesses and further stimulate real growth in our economy’’.

     

  • ‘Optimising value chain key to economic growth’

    THE Permanent Secretary, Ministry of Defence, who also chairs the Defence Industries Corporation of Nigeria (DICON), Mrs. Naratu Batagarawa, has said the local content policy will always be first when DICON signs a Memorandum of Understanding (MoU) with its foreign partners.

    The Chairman spoke while addressing the board’s 102nd meeting at DICON Headquarters in Kaduna.

    She said besides assembling finished products, the corporation should emphasise local content and discourage pseudo economic growth because the nation needed a solid productive base to collaborate with defence-related industries.

    Mrs. Batagarawa hailed the Director General, Maj Gen Bamidele Ogunkale’s efforts in repositioning DICON, adding that the ministry was keen on DICON’s production activities.

    She added that local production should be encouraged, stressing what we produce locally must not be part of the MoU with foreign defence-related industries.

    “Our focus to establish Military Industrial Complex (MIC) aimed at taking care of all ordnance requirements of the Nigerian armed forces in accordance with President Muhammed Buhari’s directive is sacrosanct. This cannot be done without placing special emphasis on indigenous technology, she said.”

    The chairman also stressed no foreign or local defence-related industries could penetrate the Nigerian market without passing through DICON, noting that the market ought to be DICON’s unique selling proposition cum bargaining power.

    Speaking on some projects with direct impact on production, the chairman hailed the world-class laboratory upgraded at DICON R&D Centre; the 50-bedroom hostel for the proposed DICON Institute of Technology; and the DG Guest House, saying these projects would turn the fortunes of DICON around.

    Maj Gen Ogunkale, in his report on the corporation’s progress, said DICON went into full production of 7.62 x 39mm ammunition last year and supplied the Army about five million rounds.

    He said the corporation supplied Nigeria Immigration Service ballistic vests and other ordnance requirements, noting that his leadership also focused on welfare, by building houses for workers, while renovating old accommodation.

    Maj Gen Ogunkale said the 50-bedroom accommodation for the DICON Institute of Technology was aimed at meeting one of the conditions for accreditation by the Nigeria Board of Technical Education (NBTE).

    He listed testing laboratories at DICON Research and Development Centre as one of the achievements under his leadership, saying the DG Guest House was remodelled to international standard to boost its image before foreign and local partners as well as generating revenue.

    “The welfare of DICON staff is directly proportional to their industrial output, hence I have placed keen interest on staff welfare, which has been deliberately structured in my pledge enunciated as soon as I assumed office and I have been guided by it.”

  • Nigeria needs 180,00Mw to drive economic growth

    ABOUT 180,000 megawatts (Mw) of electricity is needed over the next 10 years to drive real and sustainable economic growth, power sector’s stakeholders said at the weekend.

    They spoke against the backdrop of the attainment of 4,438Mw of electricity last week, which they said was inadequate to power a typical industrial plant in China.

    The stakeholders, comprising the Manufacturers Association of Nigeria’s (MAN’s) immediate past President, Dr Francis Jacobs and the Association of Nigerian Electricity Distributors (ANED) Executive Director, Research and Planning, Mr Sunday Oduntan, spoke in separate interviews in Lagos at the weekend.

    Jacobs said the 4,438 Mw generated last week was too low to guarantee stable supply of power to Nigerian households, not to talk of meeting the needs of industries.

    He said workers’capacity utilisation has been very low, due to the power sector crises and its attendant outages.

    Jacobs said: “The issue of poor electricity supply in Nigeria is critical. An economy, with over 180 million people and huge manufacturing and other business activities only produces around 4000Mw of electricity. By the rule of the thumb, the country should be generating at least 180,000Mw. According to World Bank report of 2013, Nigeria’s electricity per capita was abysmally at 142 kilowatts, which when compared with the world figure of 3,104 kilowatts for the same year, is pretty too small.

    “To the manufacturing sector, the challenge of electricity supply is hydra-headed and the most singular core challenge inhibiting the projected growth of the sector. This challenge finds maximum expression in inadequate supply of electricity and exorbitant and punitive tariff.’’

    Oduntan said the bane of the power sector is poor generation, which is primarily caused by inability of the power firms to access enough gas for operation.

    He said the firms needed to access enough gas for generation, if the industry will achieve energy sufficiency. He added that both generation and distribution are problems that appeared to have defied solutions in the sector.

    He said a country such as South Africa generates electricity that can take care of the needs of its population.

    ‘’South Africa with 67 million people generates 48,000Mw and they are now working to increase the generation to 79,000 Mw. In Nigeria, 5,150 Mw was the peak we generated since 1980. Let us be sincere with ourselves, to generate power is expensive. To do 1,000Mw, you will need about $1.2billion,” he said.

    The Federal Government had advanced N750billion loan to the sector last year. The fund was earmarked by the government for the payment of gas owed by the operators, basically the power generation companies.

    Also, the TCN had after December simulation, added several transformers to transmission. However, more work is needed on the distribution capacities for the sector to fully stabilise. The TCN has continued to upgrade critical transmission infrastructure nationwide with the commissioning of over 40 power transformers and lines in the last two years, building of seven brand new sub-stations, diligently pursuing its Transmission Rehabilitation and Expansion Programme, which is encapsulated in its 20-year transmission expansion plan.

  • Presidential aide: economic growth shows Buhari’s policies working

    SPECIAL Adviser on Economic Matters to the President Dr. Adeyemi Dipeolu yesterday said Nigeria’s Gross Domestic Product (GDP) growth rate as released by the National Bureau of Statistics (NBS) is a clear indication of the effectiveness of the President Muhammadu Buhari’s economic policies.

    A statement by Senior Special Assistant to the Vice President on Media & Publicity, Laolu Akande quoted Dipeolu as saying that the  GDP figures recorded a marked improvement in the 4th quarter of 2018.

    In the statement released in response to the new GDP figures, Dipeolu said: “The latest figures released by the National Bureau of Statistics, 2.38 per cent for Quarter 4, 2018 show an appreciable improvement in the growth performance of the economy.  The figures are encouraging in several respects.

    “Notably, the growth recorded in the fourth quarter of 2018 (Q4 2018) was higher than both the growth of 1.81% in Q3 2018 and in the corresponding fourth quarter of 2017.  Indeed, quarter-on-quarter growth from Q3 2018 to Q4 2018 was 5.31%, which signals a great potential for a higher annual growth rate.

    “In annual terms, the growth rate more than doubled in 2018 rising to 1.93% as compared to 0.82% in 2017, again reflecting the strong momentum of growth.

    “Also notable is the fact that growth in Q4 2018 and indeed for the whole year owed a great deal to the performance of the non-oil sector.  The non-oil sector grew at 2.7% in Q4 2018 as compared to 1.14% in the oil sector.  The non-oil sector also grew by 2% in the whole year 2018, which was considerably better than its growth in the whole of 2017, which was 0.47%.  The share of the non-oil sector in GDP was 92.94% while the oil sector contributed 7.06%.

    “With the maintenance of this trend, the economic diversification objectives of the Economic Recovery and Growth Plan are well on their way to being met.

    “The NBS figures also show that 39 out of 46 economic activities recorded growth in Q4 2018 which shows that growth across sectors is becoming more mutually reinforcing.

    “This growth is consistent with the policies and principles of the Economic Recovery and Growth Plan relating to macroeconomic stability and economic diversification.  When better economic fundamentals like lower inflation rates, increased foreign reserves, a more stable exchange rate and increased capital inflows  are taken together with increased investments in the real sector, infrastructure, the social sector and business environment, it portends well for economic performance in 2019 and beyond.

    “Indeed, the economy remains well on course to grow by 3% in 2019 as estimated in the Medium Term Expenditure Framework.”

  • Govt, stockbrokers to join hands for economic growth

    The Federal Government and stockbrokers have reiterated their commitment to work towards the development of the economy.

    At an interactive session in Lagos, key members of the government’s Economic Management Team and capital market operators agreed on the importance of the capital market in national economic growth and development.

    Representative of the Vice President and Minister of Industry, Trade and Investment, Dr Okechukwu Enelamah said the government was willing to partner the market operators to achieve growth.

    Outlining the government’s plans and achievements, Enelamah said the government has been making efforts to ensure sustainable economic growth.

    According to him, programmes, such as Ease of Doing Business in Nigeria, industrial policy and competitiveness, special economic zones, targeted sector policy reforms and trade agreements, among others, are aimed at providing enabling environment for sustained economic development.

    He urged stockbrokers to continue to make input to government policies as well as specific requirements for the market, assuring that government will always consider such input.

    Nigeria Investment Promotion Commission (NIPC) Chief Executive Officer, Ms Yewande Sadiku outlined efforts being made by the Commission to attract investors across the globe into Nigeria through an array of incentives.

    She advised stockbrokers to visit the NIPC website regularly and make input on how to attract investors.

    The interactive session generated discussions on how taxation is impacting negatively on stockbrokers’operations and the way forward.

    At the event organised by the Chartered Institute of Stockbrokers (CIS), stockbrokers urged the government to further take advantage of investment opportunities in the capital market to mobilise funds to execute development projects.

    Besides, they identified communication gap between the government and the market as one of the reasons for the government’s inability to put the market on the front burner of Nigeria’s economic revival strategy, urging the government to place the market on the same pedestal with money market without delay.

    Chartered Institute of Stockbrokers (CIS) President, Mr.Adedapo Adekoje said the government should use the market to fund this year’s  fiscal budget with ease.

    According to him, the government’s investment through savings bond and similar asset classes could not fully finance infrastructural deficit, hence, the urgent need to float revenue bonds in addition to general purpose bonds.

    He reiterated the need to re-constitute the board of the Securities and Exchange Commission (SEC) and accord the Commission a status of independence like the Central Bank of Nigeria (CBN) in line with the global best practices.

    In his presentation on “Strategies to achieve double-digit growth for Nigeria: The capital market option”, Mr. Mike Itegboje noted that developed economies leveraged  the market for growth and development.

    He urged the government to borrow a leaf from countries, such as the United States and China, which  place premium on the use of their  markets for development.

    “The U.S. capital markets are the bedrock of the nation’s economy and the deepest and most liquid in the world. That depth and efficiency is evidenced by the size of the gross domestic product, the strength of the US commercial sector, the level of home ownership, and the vast national infrastructure across the fifty states in comparison to the rest of the world”, Itegboje, a former president of CIS, said.

    SEC Acting Direcctor-General Ms Mary Uduk called for privatisation of moribund government enterprises through the market.

    According to her, such move this would not only ensure revival of the companies, but also deepen the market after listing.

    Uduk said the essence of the Commission’s Ten-Year Development Plan was to make market competitive.

     

  • Budget minister forecasts higher economic growth

    The Minister of Budget and National Planning, Udoma Udo Udoma is optimistic that the economy will continue to maintain its recovery in 2019 as the real GDP growth is expected to increase from 0.8 per cent in 2017 to 2.1 per cent in 2018  and 3.01 per cent in 2019,  with the sustained implementation of the Economic Recovery and Growth Plan (ERGP).

    Udoma, who spoke at the Deloitte Dialogue on Nigeria’’s Economic Outlook for 2019, in Lagos, said the proposed 2019 budget is intended to further reposition the economy on the path of faster, inclusive, diversified and sustainable growth, and continue to lift significant numbers of Nigerians out of poverty.

    He explained that with the improved co-ordination of fiscal and monetary policies, exchange rate stability, improved oil export earnings and capital inflows, as well as continuation of the current prudent management of foreign exchange reserves  by the CBN, inflation is expected to trend downwards to single digit of 9.98 per cent in 2019 from 11.44 per cent as at December 2018.

    “Government is committed to growing the economy, and accordingly the 2019 Budget Proposal has been designed to continue to provide the stimulus and support required to spur growth in the economy.” he said.

    While indicating that the 2019 Budget is another step in the country’s journey to ensure diversified, inclusive, sustainable growth, creating jobs for the teeming population and prosperity of Nigerians, Senator Udoma said government expects more diversified and inclusive growth in 2019 and over the medium term.

    He said though the current real GDP growth performance is still a little sluggish, which is expected as we are just recovering from recession, it, however, indicates a positive momentum, especially with regards to the growth of the non-oil sector.

  • I’ll bring back economic growth, says Atiku

    PEOPLE’S Democratic Party (PDP) presidential candidate Alhaji Atiku Abubakar yesterday promised to bring back the country’s wealth and prosperity, if voted into power in the February 16 presidential election.

    This came as the party’s National Chairman, Uche Secondus, said President Muhammadu Buhari has tried, but he has lost the strength to lead a country of 200 million people.

    Atiku, who addressed a presidential rally in Kaduna in Hausa language, said there was no hunger and poverty among Nigerians when the PDP was in power.

    He alleged that the ruling All Progressive Congress (APC) had failed to fulfill its 2015 campaign promises, urging the electorate to vote the PDP back to power on February 16 to return the nation back to the path of progress.

    The former vice president said the APC and Buhari promised to tackle security but failed, as the challenges continued in most part of the country.

    He, however, said the APC and the President must go, urging the people to vote the PDP from bottom to top.

    “The PDP is responsible for all the development in this country. But they came and deceived people and lied to them and asked them to vote for change. But where is the change?

    “The APC promised to tackle insecurity, but the challenges are still here, ravaging the Northeast, Northwest and the Northcentral. Have they fulfilled the promises? So, why are going to vote for them?

    “When PDP was power, there prosperity, wealth and development.

    “So, let me tell you, if you vote the PDP, we shall bring back prosperity, progress, employment and trades to the people. This is a promise we are making to you.

    “I am begging you to vote the PDP from top to bottom and bottom to top. So join me in chanting ‘Buhari must go, APC must go’. May God bless you.”

    Secondus said that President Buhari has tried, but did no longer have the strength to continue to rule over 200 million  people.

    “It is time to ask President Buhari to go, he has tried. But let him go home and rest. His energy is no more there. We need somebody with a lot of energy that can work for 24 hours.

    “If you vote for APC, the cabal will be in control of government because Buhari is weak; he cannot rule.

    “We want somebody who has capacity to rule this country, and that person is Atiku. Atiku will provide jobs, food, security and others for Nigerians.

    “Nigeria is 200 million people. So, Atiku will not sleep until there is food on your table and security of lives and property all over the country. Atiku will not fail you.”

    The PDP national chairman said the era of election rigging is over, saying that nobody can rig election any longer.

    He warned INEC to resist the temptation of rigging the election.

    On his part, the Director-General of the PDP campaign and Senate President Bukola Saraki said “the APC promised us security, but there is no security anywhere in Nigeria.

    “There is no security in the Northeast, no security in the Northwest, no security in the Northcentral; no security anywhere in Nigeria

    “They promised us economic growth, but Nigeria is now the capital of poverty.

    “Come February, Nigerians should vote for the PDP in all the elections. We want a better Nigeria, not the APC propaganda.

    “Atiku has capacity to deliver and provide jobs. He is the man that understands and can deliver. APC lies have come to an end. Nigerians are tired of propaganda,” Saraki said.

    Former interim PDP National Chairman of PDP Senator Ahmed Makarfi said the crowd has confirmed that Kaduna is a PDP state.

    “We in PDP, we don’t abuse. Whatever road, water supply, big educational institutions, secondary school and health facilities you see in Kaduna State, was built by PDP.

    “During PDP, we have peace in Kaduna, people were doing their farming in peace and we’re making profit. If you vote PDP again, you will get these things back. Vote for PDP from top to bottom, presidential, governorship, National Assembly and state house of assemblies,” the ex-Kaduna State governor said.

    Former Vice President Namadi Sambo urged all the party supporters to ensure that they have their PVCs ready to enable them to vote for candidates of their choice.

    He promised that “Atiku will atikulate you”.

    PDP gubernatorial candidate in Kaduna State Isah Ashiru urged the party’s supporters to keep their PVs ready.

    “Some people are going round saying they have won election but we are waiting for the polling day. We should make sure that we vote, wait for our votes to be counted and defend our votes,” he said.

    Those at the campaign rally include ex-Governors Mukthar Yero of Kaduna, Liyel Imoke of Cross Rivers and Boni Haruna of Adamawa State. Chairman PDP board of trustees, Senator Walid Jibrin, Senator Datti Ahmed and PDP candidates in Kaduna State.

  • ‘ICT key to economic growth’

    The information communication technology (ICT) and telecom industry are the key drivers of modern economic transformation and development, Communications Minister, Dr Adebayo Shittu said yesterday in Lagos.

    The minister who spoke at a forum tagged: Business Roundtable/Stakeholders Engagement  for the Financing   and Sustainability of the National ICT Park at the Abuja Technology Village, said with a youthful population and an import-dependent economy, the only viable alternative to oil is the development of the ICT sector.

    He said: “ICT/Telecom industry is key to the economy. The country has a youthful population and a consumer nation. Thus, the industry holds the key to the nation’s growth. To further unlock the potential in the sector, policies and programmes that have the capacity to boost economy are always pursued with vigour with stakeholders’ collaboration.

    “The role of ICT in the transformation of societies into knowledge-based economy cannot be overemphasised. In line with this, the Federal Government, through the Ministry of Communications designed a programme to establish a National ICT Park with the aim of providing an enabling platform, where ICT knowledge can be acquired through appropriate initiatives, including incubating tech ideas into viable startups, research and development, testing and certifications of ICT solutions and others.”

    According to Shittu, the objective of the meeting was to inform the major stakeholders and the private companies operating in the ICT ecosystem of the Ministry’s plan to establish ICT Park and to solicit their cooperation and support towards its success. It was also designed to respond to any queries which  may arise regarding the execution and operationalisation of the project.

    He said as a result of the collaboration between the Ministry of Communications and Abuja Technology Village (ATV), a 6344sqm of commercial land has been secured for the establishment of a National ICT Park within the free trade zone owned and operated by the Abuja Technology Village (ATV).