The Nation Newspaper

Tag: economic

  • FG urges investors to tap into Nigeria’s economic potential

    FG urges investors to tap into Nigeria’s economic potential

    The Federal Government on Thursday called on investors, both foreign and local, to take advantage of Nigeria’s economic potential to invest in the country.

    The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, made the call at the third edition of the Digital Innovation and Creative Excellence (DICE) gathering in Lagos.

    DICE is a tech ecosystem mixer organised by Beyond Limits, a pan-African organisation at the forefront of driving digital transformation, excellence, and growth in individuals and organisations.

    The News Agency of Nigeria (NAN) reports that the 2025 Edition of DICE had the theme: “Scaling Right: From Market Entry to Market Leadership.”

    Oduwole noted that Nigeria offered a wide range of investment opportunities, including digital trade, mining, solid minerals, manufacturing, agribusiness and clean energy.

    She said that the government was committed to creating an enabling environment for businesses to thrive, including providing support for Small and Medium-scale Enterprises (SMEs) and startups.

    “We are focused on making Nigeria an attractive destination for investors, and we are working tirelessly to remove any bottlenecks that may hinder investment,” the minister said.

    She also highlighted the importance of the African Continental Free Trade Area (AfCFTA) Agreement, which Nigeria signed in 2019.

    Oduwole said the agreement aimed at creating a single market for goods and services across Africa, promoting economic integration and cooperation among member states.

    “Nigeria is well-positioned to benefit from the AfCFTA agreement, and we are working to ensure that our businesses are competitive and ready to take advantage of the opportunities the agreement presents.

    “The government has inaugurated several initiatives aimed at promoting investment and economic growth.

    “These initiatives include the National Investment Promotion Commission (NIPC) and the Nigerian Investment Promotion Council (NIPC).

    “These initiatives are designed to provide support for investors, including providing information on investment opportunities, facilitating business registration and licensing, and offering incentives for investment,’’ she said.

    Oduwole urged investors to take advantage of these initiatives and to explore the many investment opportunities available in Nigeria.

    “We are committed to creating a business-friendly environment that supports investment and economic growth, and we look forward to working with investors to achieve this goal,” the minister stressed.

    In a welcome address, the convener of DICE, Dr Juliet Ehimuan, said that Africa’s technology sector held immense potential for national and continental growth.

    Ehimuan said that, however, the sector faced significant challenges, including high operational costs, infrastructure deficits and fragmented regulations.

    She highlighted the importance of creating an enabling environment for businesses to thrive, citing the need for policymakers to develop supportive regulations and infrastructure that facilitated growth and expansion.

    According to her, the DICE Business Series is designed to bring together stakeholders from across the African technology ecosystem to share knowledge, build partnerships and drive growth.

    The convener said that the conversations and insights shared during the event would be compiled into a report and made available to stakeholders, with the aim of driving innovation and policy development.

    (NAN)

  • As economic hardship gradually eases

    As economic hardship gradually eases

    • By Kenechukwu Aguolu

    Sir: When President Bola Ahmed Tinubu took office on May 29, 2023, he took a different approach to governance. Two major decisions that attracted significant criticism were the removal of the fuel subsidy and the floating of the Naira. These policies were widely seen as anti-people, as they led to significant economic hardship for many Nigerians. However, the government consistently acknowledged the difficulties faced by the populace and assured them that these measures were short-term sacrifices necessary to revive the Nigerian economy, which had been in comatose for years.

    Given the failures of previous administrations, many Nigerians were sceptical about the sincerity and effectiveness of the current government’s economic reforms. Indeed, 2024 proved to be a tough year for many, with rising costs making it harder for citizens to meet their basic needs. Yet, the government showed sensitivity to the challenges, providing palliative measures such as foodstuffs, CNG buses, and conversion kits, as well as increasing the national minimum wage from N18,000 to N70,000 with state governments following suit with varying rates.

    Read Also: CNA advocates development of legislative drafting manual for National Assembly

    Needless to state that the economic reforms implemented by the government are grounded in proven economic theories that promote market efficiency and the optimal use of resources. The government deserves commendation for not backing down despite public outcry. These reforms have freed up resources that the government can now invest in critical sectors, which in turn fosters economic growth and national development and the country’s ability to address security challenges.

    Last year, I projected that Nigeria would experience significant economic improvement in 2025, with the Naira gaining value and the price of PMS (Premium Motor Spirit, or fuel) dropping, leading to a ripple effect on the prices of goods and services. Although it is only March, early signs indicate my projection is becoming a reality. According to the National Bureau of Statistics, headline inflation dropped to 24.48% in January from 34.8% in December 2024. It is important to note that the January inflation rate was calculated using the rebased Consumer Price Index (CPI). Beyond the numbers, the Naira now exchanges for about N1,500 to the US dollar, and PMS sells for under N1,000. More importantly, food prices—the primary driver of Nigeria’s headline inflation—are beginning to drop, bringing hope and excitement to citizens.

    Critics of the economic reforms are gradually being proven wrong, and some have even reversed their stance to support government policies. Therefore, Nigerians should continue to be patient, as things are expected to improve further. The Naira is anticipated to appreciate even more, and inflation to decrease. The government should remain committed to its reforms and continue engaging with Nigerians to ensure they understand government policies and their benefits.

    •Kenechukwu Aguolu    FCA,

    <kenerek1@gmail.com>

  • ‘Economic Stabilisation Bill will raise govt’s revenue’

    ‘Economic Stabilisation Bill will raise govt’s revenue’

    The Economic Stabilization Bill introduced as part of Nigeria’s broader fiscal reforms, will boost government revenue and stabilize the economy, Managing Partner, Ascension Consulting Services, Azeez Alatoye, has said.

    Speaking during the Chartered Institute of Taxation of Nigeria (CITN), forum with theme: “The Economic Stabilization Bill: Analysing the Intricacy of Taxation of Income from Petroleum Operations under the Nigeria Tax Bill, 2024”, he said a key component of the Bill is the adjustment of tax structures for upstream petroleum operations to align with the Petroleum Industry Act (PIA) 2021.

    He explained that in Nigeria, taxation of income from petroleum operations is governed primarily by Petroleum Profits Tax Act (PPTA); Deep Offshore Inland Basin (PSC); and Petroleum Industry Act (PIA).

    “While the PPTA historically imposed a single tax (Petroleum Profits Tax) on profits derived from upstream petroleum activities, the PIA introduced a dual tax structure, Hydrocarbon Tax plus Companies Income Tax,” he said.

    He said the provisions governing the ascertainment of chargeable profits and chargeable tax under the Hydrocarbon Tax are found in Sections 260 to 275 of the PIA.

    “It is important to note that you cannot arrive at chargeable tax without first determining chargeable profits, as the latter forms the taxable base. Therefore, we would first arrive at chargeable profits before applying the chargeable tax rate,” he said.

    According to Alatoye, under the PIA, capital allowances are deductions granted to companies for capital expenditures incurred in upstream petroleum operations.

    Read Also: Hong Wai Onn’s contributions to palm oil industry

    These allowances are designed to account for the depreciation of assets over time. Key points include, capital expenditures on qualifying plant, pipelines (including Floating Production Storage and Offloading units), buildings, and drilling activities (both tangible and intangible) are eligible for capital allowances.

    Ensuring that both tangible and intangible drilling costs are to be capitalized and amortized over a period of five years, with a one per cent retention value in the fifth year.

    Also, the PIA retains the rule for amortizing pre- production costs, allowing them to be written off over a specified period of five years once production commences.

    He said that expenditures on additional exploration and appraisal wells (beyond the first two appraisal wells) are to be amortized over five years.

    “The PIA replaces previous incentives like the Investment Tax Credit (ITC) and Investment Tax Allowance (ITA) with a Production Allowance to encourage crude oil production. Key details include: Production allowances are granted per field for crude oil production by a company in each year of production. The allowance is the lower of 20 per cent of the fiscal oil price or $2.50 per barrel for any volume,” he said.

    For New Projects or Leases Granted After the Commencement of the Act, onshore areas, the lower of 20 per cent of the fiscal oil price or $8 per barrel, up to a cumulative maximum production of 50 million barrels from the commencement of production. Thereafter, the allowance is the lower of 20 per cent of the fiscal oil price or $4 per barrel.

    “The lower of 20 per cent of the fiscal oil price or $8 per barrel, up to a cumulative maximum production of 100 million barrels from the commencement of production. Thereafter, the allowance is the lower of 20 per cent of the fiscal oil price or $4 per barrel,” Alatoye said.

    He added that the allowances applicable to crude oil also apply to condensates and natural gas liquids. However, no production allowance is granted for natural gas production.

    Also, section 265 of the PIA outlines the determination of assessable profits for companies engaged in upstream petroleum operations. Key points include the assessable profit is derived by deducting allowable expenses from the gross income of the company; in computing the assessable profit for any accounting period, a company is allowed to deduct losses incurred in prior years from its adjusted profit, in determining the chargeable profit, the total deductible costs shall not exceed the Cost Price Ratio limit of 65 per cent of gross revenues determined at the measurement points.

    Any excess costs that exceed the CPR limit upon termination of upstream petroleum operations related to crude oil shall not be deductible for the purpose of calculating the Hydrocarbon Tax. Unutilized costs can be carried forward to future periods, provided that the actual costs to be deducted do not exceed the actual costs incurred.

    Also, under Nigeria’s Petroleum Industry Act (PIA), the framework for consolidating costs and revenues for Hydrocarbon Tax (HT) purposes is delinenated based on the nature of a company’s upstream petroleum operations and the terrains in which they operate.

    “For companies engaged in upstream petroleum operations related to crude oil within a single terrain (e.g., onshore or shallow water), costs and revenues are consolidated across all assets within that terrain,” Alatoye said.

  • Path to sustainable economic stability

    Path to sustainable economic stability

    • By Isah Aliyu Chiroma

    Sir: As we navigate the complex and evolving economic landscape, the Central Bank of Nigeria’s commitment to improving communication, fostering dialogue, and collaborating on critical issues shaping monetary policy is more crucial than ever. The 2025 Monetary Policy Forum, themed “Managing the Disinflation Process,” provides a timely platform for rigorous intellectual discourse and evidence-based insights to enhance policy effectiveness.

    The past year has presented significant challenges, including persistent inflationary pressures exacerbated by global and domestic shocks. Despite these headwinds, the CBN’s commitment to price and monetary stability has yielded measurable progress. Relative stability in the foreign exchange market, narrowing exchange rate disparities, and rising external reserves of over US$40 billion as of December 2024 are all testament to this progress.

    However, recent data from the National Bureau of Statistics indicates that inflationary pressures persist, with headline inflation standing at 34.80 percent as of December 2024. Domestic structural challenges, exchange rate pass-through effects, and energy price adjustments continue to exert pressure on prices and economic activity.

    To address these challenges, the CBN has implemented bold policy measures, including raising the Monetary Policy Rate (MPR) by a cumulative 875 basis points to 27.50 percent, increasing the Cash Reserve Ratio (CRR) of Other Depository Corporations (ODCs) by 1750 basis points to 50.00 percent, and adjusting the asymmetric corridor around the MPR.

    These measures have contributed to a decline in inflationary pressures, with counterfactual estimates suggesting that without these interventions, inflation could have reached 42.81 percent by December 2024. The CBN’s commitment to ensuring price stability while minimizing adverse effects on growth and livelihoods is evident in these reforms.

    Read Also: Tinubu approves N80 billion for Alau Dam reconstruction

    Beyond monetary policy, CBN has undertaken critical reforms to strengthen the financial system and ensure macro-economic stability. These reforms include unifying multiple exchange rate windows, which aims to reduce the complexity and uncertainty associated with multiple exchange rates, promoting a more stable and predictable foreign exchange market.

    Clearing the backlog of foreign exchange commitments to address the legacy issues that have contributed to the country’s foreign exchange challenges, promoting a more efficient and transparent market and lifting restrictions on 41 items previously banned from access to the official FX market also aim to promote trade and economic growth by providing businesses with greater access to foreign exchange.

    Introducing new minimum capital requirements for banks to strengthen the banking sector, promoting financial stability and resilience, the launch of the WIFI initiative under the National Financial Inclusion Strategy aims to promote financial inclusion, providing underserved populations with greater access to financial services.

    The Nigeria Foreign Exchange Code, launched recently, marks a decisive step forward for integrity, fairness, transparency, and efficiency in the foreign exchange market. The CBN’s commitment to creating an enabling environment for inclusive economic development is evident in these reforms.

    However, achieving macroeconomic stability requires sustained vigilance and a proactive monetary policy stance. The 2025 Monetary Policy Forum provides an opportunity to generate actionable insights and refine strategies for the road ahead.

     With foreign exchange liquidity improving, the naira gradually aligning with market fundamentals, and a more predictable environment for domestic production, exports, and essential imports, we are confident that those policies are setting Nigeria on the path to sustainable economic stability.

    Collaboration is key to driving meaningful change. Policymakers, the private sector, and civil society must work together to achieve Nigeria’s economic goals. The 2025 Monetary Policy Forum provides a platform for such engagement, with all subject-matter experts, policymakers, scholars, and market economists to this critical discussion.

    The Honorable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently outlined a roadmap towards ensuring Nigeria’s macroeconomic stability and growth at the 30th Nigeria Economic Summit. The minister stressed the necessity of immediate and comprehensive economic reforms, including fiscal reforms, efficient government spending, and targeted interventions to alleviate fuel price pressures.

    As we navigate the path ahead, we are optimistic that with bold, coordinated policy measures and a commitment to collaboration, Nigeria can achieve sustainable economic stability and prosperity for all. Collaboration, transparency, and a commitment to inclusive economic development will be crucial in achieving our economic goals.

    •Isah Aliyu Chiroma,

    <aliyuisahchiroma29@gmail.com>

  • ‘Ease of doing business: punish economic crimes’

    ‘Ease of doing business: punish economic crimes’

    A former Presidential Candidate of SDP, 2023 election, Prince Adewole Adebayo, has said that economic crimes must be punishable to achieve reform for Ease of Doing Business, (EoDB) as economic crimes do not allow businesses to reach their full potential.

    Speaking as a keynote speaker at the J9C 13th anniversary lecture with the theme: “Business and Policy Strategy: Examining the Role of Reforms in Enhancing the EoDB in Nigeria”.

    He explained that the ease of doing business is government and policymakers’ attempt to make businesses succeed. To make businesses succeed, he said civil servants should never be in business or have interest in business. Importantly, he said the first reform to do for EoDB is that the rule must not be set by the players.

    He said a reform must be a fundamental change in the way any activity or programme or policy or anything is being done.

    He said: “When we are talking of economic reform, what we were having as a consensus is that, it must affect the policies that affect the economic growth of a country.

    “It must bring efficiencies, and it must lead to stability. And when you do all of that, you will know when something is just a government programme, because many programmes have been passed off as reforms.

    “When the government comes to power, whether you voted for them or not, they are saying we are taking these measures on your behalf. “Therefore, whether you authorise them to do it or not, you are entitled to comment on it, to review it, and to suggest better ways to get it done, or whether it should be done at all.

    Read Also: ‘Tax reforms, game changer for Nigeria, economy’

    “The first thing a government needs to do is call “Fiscal Reform,” because a government that cannot pay its way is not a government.

    “And to do fiscal reform, you must be able to handle the revenue that the government is collecting. And anyone who has listened to government since Balewa up to now, he will tell you that no government has been able to say that we are able to collect an account for the revenue of this country.

    “When I was running for President, my first speech center around the question of whether we’re collecting our oil revenue. Because I can make some speeches, I said that showed that at a time, 80 per cent of the of the crude oil revenue was being stolen. The only answer I got from the government, especially through the Navy, was that I was exaggerating the number, that it wasn’t up to 80 per cent but we all agreed that substantial revenue was being stolen.

    “And why is important was that there was a time when Shehu Shagari under Yakubu Gowon government, was Minister of Finance, and he has visited the oil wells and oil fields, and he saw fuel stations where they were loading ships.

    “And he asked them casually that how will you know if what we are loading is what they paid for, they said we use the weight of the ship and the level of the ballast to measure, so he came back and wrote a report and noted that his Predecessor, Chief Obafemi Awolowo, had mandated that all the filling stations should be metered.

    “And Shagari insisted that, with immediate effect, all the flow stations must be metered, but Shagari died, I spent some time with him before he died in Sokoto, but he died, and many of the oils Wells have not been metered.”So he shows to you that there was a fundamental need for reform in the way we even measure, whether we collect our revenue or not from crude oil is not being done. And I don’t think, despite many of the reforms being discussed about that, that has been done at all.

    “The implication of that is that if you cannot account for the revenue which you are collecting, then where do you start to build government?”

    Earlier in his opening address, Chairman of Coleman Wires and Cables, Dr. Solomon Onafowkan, said the theme was a testament to creating value-addition to professionalism, excellence in entrepreneurship which are the virtues expected from various callings in promoting rapid economic development in Nigeria. He said investment is not sentimental as first primary consideration for investment decision globally, is to go to where return is guaranteed but not taken for granted.

  • Tinubunomics: Nigeria’s economic momentum in 2025 will set new record – IMPI

    Tinubunomics: Nigeria’s economic momentum in 2025 will set new record – IMPI

    The Independent Media and Policy Initiative (IMPI) has said that there are enough evidence to show that the economic policies of the President Bola Tinubu administration will set new records in 2025.

    In a policy statement signed by its chairman, Dr Niyi Akinsiju, IMPI explained that it came to that conclusion after a fundamental analysis of the emerging pattern of the economy since the introduction of the Tinubu reforms 19 months ago.

    According to the policy think tank, the optimistic outlook transcends the oil and non-oil sectors inspite of initial hitches.

    It said: “Historically, the oil sector has faced persistent challenges, including declining production caused by crude oil theft, pipeline vandalism, and reduced investments. However, 2024 efforts yielded notable improvements in output. For instance, the local refining of petroleum and the complete deregulation of the downstream sector of the oil industry have led to price competition on Premium Motor Spirit (PMS) or petrol and made smuggling of petroleum products across the country’s borders unattractive.

    “The approval of five oil asset sales and two Final Investment Decisions (FIDs) in 2024 also elicited positive feelings from foreign investors willing to do business in Nigeria’s energy sector. In 2025, oil sector analysts project that production will likely average 1.7 million barrels per day (bpd) and close the year at 1.78 million bpd. This excludes condensates that do not fall within the purview of OPEC’s basket of crude.

    “This optimistic outlook is underpinned by measures to address oil theft, including the implementation of the Advance Cargo Declaration regime by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This initiative ensures that all exported crude oil and gas cargoes are uniquely identified, verifying the legitimacy of export documentation and reducing the theft of resources.

    “Additionally, the NNPC plans to replace ageing crude oil pipelines, some of which have been in use for over four decades to support output and operational efficiency further.

    “To enhance crude oil production, President Tinubu signed three executive orders (EOs) in February 2024 aimed at improving the investment climate and positioning Nigeria as the preferred investment destination for the petroleum sector in Africa. One of the EOs legally mandates that the contracting cycle be compressed to a maximum of six months in alignment with global industry standards. This significantly reduces delays that historically took up to two years or more, thus improving Nigeria’s competitiveness.

    “The executive order also mandates the Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Content Development and Monitoring Board (NCDMB) to implement a single-level approval process for requalification, technical, commercial, and final stages and ensures that approval is issued within 15 days. 

    “This is expected to eliminate redundant multi-stage approvals and ensure that regulatory approvals are obtained more efficiently, fostering timely project execution, and reducing compliance costs.

    “The plan to hold a fresh oil licensing round in 2025 is focused primarily on handing out oil blocks that remained undeveloped. This is another fillip in the effort to hike crude oil production and raise crude reserves and production. Aggregating policies and implementation templates and other federal government’s efforts in the sector, the federal government will accomplish its target to increase crude oil production to 2.06 barrels per day as proposed in the federal budget 2025.”

    Read Also: Our economic problems date back to colonial times

    The group admitted that the naira lost a chunk of its value especially in 2024 when it depreciated by 40.9 % before appreciating in December but also pointed at the domino effect in ensuring a trade surplus for the country reflecting a strong contribution of the non oil sector for the first time in recent years. 

    “CBN data for October 2024 highlighted a positive trade performance driven by more substantial export earnings than imports. This reflects a third consecutive quarter of trade surplus in 2024. The trade surplus expanded to US$2.21 billion, up from US$2.07 billion in September. This improvement was fueled by a 3.51 per cent rise in total exports, which increased to US$5.02 billion from US$4.85 billion the previous month.

    “Export growth was attributed to higher values in crude oil and non-oil products. Though crude oil and gas exports continued to dominate Nigeria’s export landscape, accounting for 87.74 per cent of total exports, the non-oil exports recorded impressive growth, increasing by 19.23 per cent to US$0.62 billion from US$0.52 billion in September. 

    “Higher export receipts for key agricultural commodities such as cocoa, beans, urea, sesame seeds, cocoa products, aluminium, and copper primarily drove this growth. Brazil emerged as the top destination for Nigeria’s non-oil exports, followed by the Netherlands, Malaysia, Japan, and Germany.

    “To highlight Nigeria’s growing export competitiveness in the global market, the Nigeria Customs Service (NCS) declared that it recorded an impressive total Cost, Insurance, and Freight (CIF) value, rising to N136.65 trillion in exports in 2024 from N42.77 trillion in 2023. This translates to an extraordinary 219.5 per cent increase. The volume of exports surged significantly from 3.70 billion kilograms in 2023 to 12.35 billion kilograms in 2024.

    “The trade surplus, as recorded, reflects the impact of the depreciated naira on international trade. The depreciation of the naira in the official market boosted export values, energising export activities while making imports more expensive. This has contributed to an improved trade balance,” IMPi added. 

    This according to the policy group also helped enhance inflows into the federation account and paved way for increased disbursements to all the tiers of government especially in Q3 2024.

    It said: “The third quarter of 2024 recorded more money flowing into Nigeria’s federation account, which grew to N6.86 trillion. A CBN economic report showed a 7.48 per cent increase from the previous quarter. The extra money came mainly from increased Company Income Tax (CIT) and Value-Added Tax (VAT). We note with interest that most of the money came from non-oil sources, which brought in N5.56 trillion, while oil revenue made up the rest.

    “The increase in revenue was due largely to higher receipts from corporate tax and VAT, which accounted for 81 per cent of the inflow into the federation account. This implies a relatively healthy business and operational environment for corporate Nigeria.

    “Oil revenue dropped by 24.72 per cent to N1.30 trillion compared to the previous quarter. From the total N6.87 trillion collected, the government shared N3.92 trillion among the three tiers of government, indicative of continued revenue growth and more revenue available to be shared since the withdrawal of fuel subsidies and liberalisation of the foreign exchange market.

    “A significant 63.7 per cent increase was recorded in International Money Transfer Operators (IMTO) inflows for the first nine months of 2024. Inflows rose from $2.33 billion during the same period in 2023 to $3.82 billion in 2024. This growth has been variously attributed to a series of targeted reforms introduced under Mr Olayemi Cardoso, Governor of the Central Bank of Nigeria, who assumed office in September 2023.”

    IMPI added that the ongoing rebasing of Nigeria’s Gross Domestic Product (GDP) will further show the resilience of the economy as well as a more diversified and dynamic economic landscape under President Tinubu.

  • Towards economic diversification

    Towards economic diversification

    The world’s seventh-largest economic sector, the marine and blue economy, is valued at over $1.5 trillion annually and it is expected to double by 2030. Sustainable ocean economy is estimated to generate almost 50 million jobs in Africa. Nigeria, with its vast coastline of over 850 kilometers and rich marine biodiversity, stands on the verge of a transformative opportunity to diversify its economy and reduce dependency on oil exports, EKAETE BASSEY writes

    The blue economy encapsulates activities like fishing, aquaculture, maritime transport, renewable energy, and coastal tourism. Globally, these sectors supply protein to over two billion people and contribute 15 per cent of global animal protein. Nigeria, with abundant fish stocks and aquaculture potential, is well-positioned to leverage this resource for food security and economic growth. 

    President Bola Ahmed Tinubu’s establishment of the Federal Ministry of Marine and Blue Economy marks a strategic shift. This new ministry is tasked with unlocking Nigeria’s marine wealth while ensuring environmental sustainability. Minister Adegboyega Oyetola has emphasised the importance of designing a comprehensive national policy to guide the sector’s development, highlighting its capacity to create jobs, improve livelihoods, and enhance Nigeria’s global standing. 

    To fully harness the potential of its blue economy, Nigeria must prioritise several key areas. Sustainable fisheries and aquaculture are crucial, as implementing policies to regulate fishing practices, prevent illegal fishing, and enhance aquaculture systems can boost food security, provide livelihoods, and reduce poverty in coastal communities. Equally important is the development and modernisation of port infrastructure to streamline the movement of goods and services, as efficient maritime logistics will strengthen Nigeria’s position in global trade. Investing in renewable energy projects such as offshore wind, tidal, and wave energy offers sustainable alternatives to complement the national grid, reducing reliance on fossil fuels and promoting energy sustainability. 

    Additionally, marine biotechnology and innovation hold great potential for advancements in pharmaceuticals and biofuels, with successful examples seen in countries like Canada and Norway. Nigeria’s coastal regions also offer untapped opportunities for eco-friendly tourism projects, which, if developed, could attract international visitors and generate significant revenue. Lastly, establishing a robust legal and regulatory framework is essential. Harmonising existing legislation with global standards and incorporating the United Nations’ Sustainable Development Goal (SDG) 14 will ensure sustainable growth in the sector. By focusing on these pillars, Nigeria can fully exploit its marine resources for economic diversification and sustainable development. 

    Challenges to Address 

    Despite its potential, Nigeria’s blue economy faces significant obstacles, including inadequate infrastructure, maritime insecurity, and limited awareness among stakeholders. Challenges like piracy, oil theft, and pollution threaten the sustainability of marine resources. Addressing these requires collaboration between government agencies, private sector stakeholders, and international partners. 

    If properly implemented, Nigeria’s blue economy could become a cornerstone of its economic diversification strategy. The sector promises opportunities in offshore energy, aquaculture, coastal tourism, and maritime trade. By adopting sustainable practices and fostering innovation, Nigeria can position itself as a regional leader in marine and blue economy activities, contributing to global efforts in climate change mitigation and sustainable development. 

    The establishment of Nigeria’s Federal Ministry of Marine and Blue Economy signals a bold step forward. However, realising the full potential of this sector demands deliberate policies, investments in infrastructure, and a commitment to preserving marine ecosystems. With these steps, Nigeria can not only boost its economy but also redefine its role on the global stage. 

    Key Developments in Nigeria’s Maritime and Transportation Sectors 

    The Nigeria Customs Service (NCS) in its eNewletter for December 2024, released a few days into the new year, outlined strategic measures to achieve its ambitious 2025 revenue target of over N6.5 trillion. Building on its 2024 success, where it exceeded its N5.07 trillion target by November, the agency aims to leverage modern technology, stakeholder collaboration, and intensified trade facilitation efforts. 

    Capacity Building

    Under Comptroller General Adewale Adeniyi’s leadership, the NCS prioritised workforce development. Training programmes, such as the recent World Customs Organisation (WCO) Geo-Portal Tool workshop, have enhanced officers’ ability to combat smuggling and improve border security. Over 1,400 senior officers were promoted in 2024, reflecting a commitment to professional growth and operational efficiency. 

    Tech-Driven Solutions

    The NCS is integrating innovative systems, including geospatial tools and the B’Odogwu customs trading platform, to enhance revenue collection and trade compliance. These tools are expected to streamline processes, reduce fraud, and ensure accurate duty payments. 

    Read Also: NERC completes transfer of regulatory oversight to four states

    Collaboration and Anti-Smuggling Efforts

    Strong partnerships with stakeholders, security agencies, and international organisations like the WCO have bolstered anti-smuggling operations. In 2024, the NCS recorded significant seizures, including arms, drugs, and wildlife products. Improved intelligence sharing and joint operations with agencies like the NDLEA have also strengthened enforcement. 

    Focus on Trade Facilitation

    The NCS is committed to creating a trade-friendly environment by offering swift cargo clearance for compliant traders and addressing operational bottlenecks. Reforms such as the Advanced Ruling System and the Authorised Economic Operator Programme aim to attract investment and increase revenue. 

    By combining innovation, capacity building, and collaboration, the NCS is well-positioned to meet its 2025 revenue target while supporting Nigeria’s economic growth.

    As stated by the Comptroller General of the NCS, Bashir Wale Adeniyi at the 2024 Comptroller-General of Customs Conference in November, in Abuja, the exceptional performance projected to exceed the service’s target by 10 per cent validates their partnership-driven approach to revenue collection and trade facilitation.

    According to him, the achievement is not merely about numbers, “it demonstrates how enhanced stakeholder collaboration, improved processes, and modernized systems can deliver tangible results for the nation’s economy.”

    Port Regulatory Framework: Closing Decades-Old Gaps

    The National Assembly is poised to pass the Nigeria Shipping and Port Economic Regulatory Agency Bill, heralded as a transformative step for commercial regulation in the maritime sector. The Bill, awaiting Senate concurrence and Presidential assent, seeks to address regulatory gaps left by the 2007 port concession agreements, which privatised operations like cargo handling without adequate oversight mechanisms. Currently, the Nigerian Shippers Council (NSC) serves as an industry ombudsman under a 2014 Federal Executive Council Gazette issued during former President Goodluck Jonathan’s tenure. This legislation is expected to enhance accountability and foster a more competitive and transparent port industry. 

    Maritime Training: Shifting Focus to Quality and Global Recognition

    Since its inception in 2008, the National Seafarers Development Programme (NSDP), managed by NIMASA, has trained nearly 3,000 youths, investing billions of naira. However, Nigeria still lags behind countries like the Philippines, India, and the UK in exporting maritime manpower. The NIMASA Director-General, Dayo Mobereola, has emphasised a renewed commitment to quality over quantity, partnering with institutions in countries recognizing the Certificate of Competency (CoC). Addressing CoC deficiencies and reducing the financial strain on trainees who often travel abroad for certification will be a priority in 2025 to enhance Nigeria’s competitiveness in the global maritime labor market. 

    Cargo Movement by Rail: Reviving Multimodal Transportation

    Container movement from ports in Lagos and Port Harcourt to inland destinations remains largely road-dependent, significantly raising logistics costs. Transporting a container to northern Nigeria by road costs an average of N1.2 million compared to approximately M600,000 by rail. The Nigeria Railway Corporation (NRC) has only achieved limited rail haulage between Lagos and Ibadan, leaving onward journeys to road transport. The new NRC Managing Director is expected to revive the Memorandum of Understanding with the Nigerian Shippers Council, paving the way for full rail haulage and realizing the benefits of multimodal transportation to enhance port efficiency. 

    Freight Forwarding: Tackling Salary Indebtedness at CRFFN

    The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) has faced operational challenges due to salary arrears, which the Federal Government recently alleviated through a bailout fund covering August to December 2024. However, addressing lingering financial instability remains critical to sustaining operations and boosting morale among staff. 

    NIWA: Enhancing Safety on Inland Waterways

    The National Inland Waterways Authority (NIWA) is ramping up efforts to reduce marine accidents and improve safety on Nigeria’s inland waterways. Through public awareness campaigns and stricter enforcement of safety regulations, NIWA aims to protect lives and property while promoting the use of waterways as a viable mode of transport. 

    As these initiatives take shape, 2025 is set to be a pivotal year for Nigeria’s maritime and transportation industries, with reforms and infrastructure improvements poised to drive efficiency, safety, and global competitiveness.

  • Economic crunch forces customers to adopt maintenance culture

    Economic crunch forces customers to adopt maintenance culture

    If you are one of those who do not appreciate and maintain your possessions, a visit to the market and shops will cause you to change your attitude.

    Of a truth the prices of virtually everything has skyrocketed. The hyper inflation cuts across every sector of the economy however for imported luxury goods like leather shoes, bags etcetera, the story is an entirely different thing because of the foreign exchange.

    Every challenge has a down side and good side. The challenging situation in most parts of the world now and Nigeria, though very painful, equally has good lessons it is teaching us.

    Prices of virtually everything have increased by over 300percent. I do not know how many of you have ventured into purchasing imported leather goods. For the benefit of this write-up, let’s restrict it to just leather bags.

    Also, we shall be as practical as possible in this write-up. There are many people even despite the harsh economy who can afford very expensive leather bags, nevertheless we shall not talk of designer bags like GUCCI, Louis Vuitton, Michael Knorr’s etcetera. We are talking about your every day brands like Gilda, BGU, carried by the fashionable middle class and average Nigerians.

    Before the year 2015, these bags were selling for between N10,000-N13,000 in the open markets like Balogun, Lagos. By the end of that year and early 2016, the price had gone up to N17,000. However, as at last week, the price in the open market was between N150,000-N250,000. For a set of Italian leather shoe/bag, the price is now between N250,000-N350,000. The price, just like other imported items, responds to the rate of foreign exchange.

    A fashionable average lady will need more than 10 bags in different colours to complement her outfit. A survey of key fashion markets, like the Gbajumo Shopping Plaza, Balogun Market, reveals a slump in the demand of these bags. A further research reveals that most ladies are now taking out time to maintain their old bags instead of buying new ones. Building a maintenance culture is one good side of recession.

    When genuine leather is properly taken care of, it comes out almost as good as new.

    All products made from natural leathers, like bags, will age with time. Just like our own skin, it will need moisturizing and caring if they are to be kept in tip-top condition throughout the years. Even with excellent care, they will still age. There’s no avoiding this; a well looked after and aged bag is just beautiful as a new one, if not even more so.

    This ageing effect is called the bags ‘Patina’.

    All leather loses moisture and oils over time and with handling. As a hide dries out, it’s more likely that the fibres that make up the surface of the skin will break rather than stretch. Every animal hide is unique and some will have less natural oils than others. The more we handle a product made from leather, the quicker it will lose its natural flexibility due to its oils and moisture being transferred to our hands, etc.

    To keep any leather bag in tip top condition, then we need to ensure the leather fibres stay supple and to accomplish this they will require natural oils or regular moisturizing. It’s always best to regularly use a leather care product to replace those oils and keep the leather supple.  It’s either you get from shops or you use homemade ones.

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    Scratches cannot be prevented, so if you don’t like the antique effect that scratches will give to your bag then it’s advised that you keep it away from sharp or metallic objects and generally give it careful consideration when handling and placing it down on the ground, etc.

    Another way to protect your bag is to apply a boot polish, vaseline or saddle soap. This will coat the leather with a protective finish that will make it more durable. Please note that applying any form of polish, even a clear or natural colour, will almost always change the colour of your leather. So test a small area of leather first (such as the tag/key-ring we supply with your bag) and then check if you are happy with the final colour before applying to the remainder of the bag.

    If there’re small dirt marks on the finished side of the leather then usually a little warm water, mild facial soap and a little elbow grease or olive oil will do the trick of getting rid of them. Properly allow to air dry before applying oil.

    The key to removing dirt and other such marks is not to use too much pressure, it’s much better to lightly rub a mark 100 times with low pressure than 10 times with a lot of pressure. The high pressure maybe likely to remove the finish and damage the leather.

    Leather bags should not be allowed to get wet but if they do, they should be wiped with a dry cloth and allowed to dry naturally.

    If your bag gets wet, then never force-dry the leather by using heat. Do not place on radiators or use hair dryers, simply leave it in a place that is normal room temperature until it dries naturally.

    If you are going to continuously experience bad weather, then we would suggest that you obtain some leather water-proofing products to help keep your satchel dry.

    Keep your leather bags stored in places that are dry and clean when you are not using them, ideally in the specially designed dust bags that came with your bags to help protect them.

    Keep them out of hot temperatures, especially extreme heat. Heat exposure can cause the pigmented finish to bubble and to peel away.

    Freezing temperatures can really damage your satchel and the natural structure of its fibres, that give it strength, and make them brittle. Cold temperatures can also cause the pigmented coating to crack excessively, so if you don’t like that effect, then it’s prudent not to let it get too cold.

    Try to keep leather out of direct sunlight for long periods, because this can fade your leather.

    If you’re applying a water-proofing product, then it’s strongly recommended that you first apply a care product to help lock in moisture and to keep the fibres of the skin supple before making it waterproof. Only apply the waterproof to areas that will be exposed to moisture. This will result in you still being able to treat the inner of the bag with care products so it can remain supple and wont crease, crack or peel, due to drying out.

    To remove stains from leather, lemon juice mixed with a cream of tartar is excellent.

    To keep leather supple, a mixture of one part white vinegar to two parts linseed oil can be applied with a soft towel. Let it rest for 12 hours and then buff the leather.

    Well looked after aged bag is just beautiful as a new one, if not even more so.

  • At the crossroads of economic turbulence and hope

    At the crossroads of economic turbulence and hope

    • By Usman Abdullahi Koli

    Sir: As 2024 draws to a close, Nigeria finds itself grappling with an unprecedented economic crisis. Inflation is at an all-time high, the cost of living continues to skyrocket, and millions of Nigerians are struggling to make ends meet. Against this backdrop, President Bola Ahmed Tinubu, in his maiden media chat aired on December 23, reaffirmed his commitment to the controversial reforms that have significantly reshaped the nation’s economic landscape. For many Nigerians, his steadfastness in the face of public outcry has been both perplexing and polarizing.

    During the televised chat, President Tinubu made it clear that he has no regrets about the swift removal of the fuel subsidy, a decision he implemented on May 29, 2023, immediately after assuming office. “I made the swift decision to preserve Nigeria’s future and that of generations yet unborn,” he stated. The move, he argued, was necessary to redirect funds toward critical infrastructure and social investments. However, while the rationale may have been rooted in long-term sustainability, its immediate impact on ordinary Nigerians has been devastating.

    The president also defended his administration’s tax reform bills, currently before the National Assembly, insisting they were essential to Nigeria’s economic recovery. Despite significant pushback, particularly from northern leaders who fear the reforms could deepen regional disparities, he maintained that these policies were non-negotiable. “The tax reforms have come to stay,” he declared, further solidifying his reputation as a leader unwilling to waver, even in the face of widespread criticism.

    For the average Nigerian, these reforms have translated into unbearable economic hardship. Inflation rose to an alarming 33.95% in November, up from 22.41% in May 2023. The cost of basic commodities such as food, fuel, and transportation has nearly doubled, pushing millions below the poverty line. The removal of the fuel subsidy, intended to save the government trillions of naira annually, has instead led to an exponential increase in the cost of petrol, which now hovers around N1000 per litre.

    The ripple effects are evident everywhere. Transport fares have tripled, food prices are beyond the reach of many families, and small businesses are folding under the weight of operating costs. According to the National Bureau of Statistics, unemployment rose from 33.3% in Q1 2023 to 40% in Q3 2024, leaving millions without a source of income. For many Nigerians, survival has become a daily struggle, with no immediate relief in sight.

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    While President Tinubu’s reforms are undoubtedly aimed at stabilizing the economy and ensuring fiscal responsibility, their execution has lacked a critical human element. Policy changes of this magnitude require not only technical precision but also empathy and strategic cushioning to mitigate their impact on vulnerable populations.

    The absence of significant palliatives has amplified the suffering of the masses. The promised conditional cash transfers and mass transit buses remain largely theoretical, leaving citizens to bear the brunt of these reforms unaided. There is an urgent need for the government to adopt a more holistic approach that balances fiscal discipline with the immediate needs of its people.

    The government must urgently prioritize measures to ease the economic burden on Nigerians. Initiatives such as targeted subsidies for essential goods, tax relief for low-income earners, and the accelerated implementation of promised palliatives could provide immediate relief. Additionally, robust dialogue with stakeholders, particularly those from regions expressing concerns, is critical to fostering a sense of inclusion and national unity.

    President Tinubu’s vision for a self-reliant Nigeria is commendable, but the path to achieving it cannot come at the expense of the people’s well-being. Economic reforms must be designed not just to stabilize numbers but to improve lives. As the nation stands at a crossroads, the government has an opportunity to recalibrate its approach, demonstrating that it is not only fiscally responsible but also deeply empathetic to the struggles of its citizens.

    As 2025 approaches, the hope is that the lessons of the past year will inspire a more inclusive and compassionate governance style, ensuring that no Nigerian is left behind in the pursuit of progress.

    •Usman Abdullahi Koli,

    mernoukoli@gmail.com.

  • Economic instability and Nigeria’s construction industry

    Economic instability and Nigeria’s construction industry

    • By Rasheed Olayinka Ajirotutu

    In recent years, Nigeria has experienced significant economic instability, which has disrupted various sectors, and the construction industry has not been immune to these challenges.

    As the country grapples with issues such as inflation, fluctuating exchange rates, fiscal deficits, and high unemployment, the construction sector, one of the critical drivers of economic growth, faces unique and multifaceted challenges.

    The construction sector contributes about 3-4 per cent to Nigeria’s Gross Domestic Product (GDP) and is a key player in infrastructure development, housing, transportation, and urbanization.

    It also provides employment to millions of Nigerians, both directly and indirectly. In a country like Nigeria, where rapid urbanisation and a growing population create a demand for infrastructure, the construction industry is fundamental to meeting these needs.

    Nigeria has long struggled with issues such as fluctuating oil prices, political instability, inadequate fiscal policies, and high levels of public debt. The Nigerian economy is highly dependent on oil exports, and fluctuations in global oil prices have a direct impact on government revenue and national economic performance.

    Additionally, inflation rates in Nigeria have been volatile, and the local currency, the Naira, has faced significant depreciation against the US dollar, making imports more expensive.

    These economic conditions, combined with poor infrastructure, inconsistent government policies, and insecurity in some regions, have created an unstable business environment, particularly for the construction industry.

    One of the most significant effects of economic instability on the construction industry in Nigeria is the impact of inflation on construction costs. Inflation in Nigeria has remained persistently high in recent years, driven by a combination of factors including rising food prices, energy costs, and global supply chain disruptions.

    For construction firms, inflation directly impacts the prices of construction materials such as cement, steel, and building aggregates, which are typically imported or subject to price fluctuations in the global market.

    As the cost of materials rises, construction companies are often forced to adjust their budgets or risk project delays. In some cases, contractors may face the challenge of absorbing the additional costs, which can lead to reduced profitability or even financial losses.

    Cost overruns are a common feature of many construction projects, and economic instability exacerbates this problem, making it more difficult for firms to stay within budget.

    This not only affects the financial stability of construction companies but also leads to delays in project completion, which can have a cascading effect on the broader economy.

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    Another major challenge posed by economic instability is the volatility of the Nigerian Naira against major currencies, particularly the US dollar. Many construction projects in Nigeria require the importation of raw materials, equipment, and technology from overseas. Fluctuations in the exchange rate make it difficult for construction companies to predict the cost of these imports and manage their budgets effectively.

    When the Naira depreciates against the dollar, the cost of imported construction materials rises, leading to further inflationary pressures and budgetary constraints.

    Furthermore, financing for large construction projects in Nigeria is often secured through loans, foreign investments, or public-private partnerships (PPPs). The instability of the Naira affects the terms of these loans, increasing the debt burden for construction firms.

    For foreign investors, the uncertain exchange rate environment makes Nigeria a less attractive investment destination, leading to a reduction in the flow of foreign direct investment into the construction sector.

    This further limits the availability of funding for construction projects, making it more difficult to initiate new projects or complete ongoing ones.

    In an environment of economic instability, construction projects often face delays or are outright stalled due to various challenges. Delayed payments from government clients, difficulties in sourcing materials, and labour shortages are common issues that arise when the economy is unstable.

    For public infrastructure projects, the government’s fiscal constraints can result in the suspension of funding or delays in the release of funds, causing projects to stall indefinitely.

    Private developers are not immune to these challenges either. High inflation, combined with difficulties in securing loans, can delay the completion of real estate developments and residential housing projects.

    Many property developers have been forced to halt projects or scale back plans as they struggle to cope with the rising cost of materials and a lack of financial liquidity. These delays not only increase costs but also affect the overall pace of infrastructure development in the country.

    Economic instability also has a significant impact on the labour market within the construction industry. The construction sector is a major source of employment in Nigeria, particularly for unskilled and semi-skilled workers. However, the instability of the economy leads to job insecurity for construction workers. As construction projects are delayed or cancelled, workers are left without consistent employment, contributing to rising unemployment rates in the country. Skilled labour, such as engineers, architects, and project managers, also faces challenges as construction firms struggle to retain talent amid financial constraints. With reduced budgets and fewer projects, some construction firms may choose to downsize or freeze hiring, further exacerbating the unemployment situation.

    Nigeria’s construction industry is critical to the country’s infrastructure development. Roads, bridges, railways, and housing are necessary to support urbanization and foster economic growth. However, economic instability has hindered the completion of major infrastructure projects across the country.

    Urbanisation in Nigeria is occurring at an unprecedented rate, with millions moving to cities in search of better opportunities. As urban populations swell, the demand for infrastructure and housing increases. However, the economic instability that Nigeria faces makes it difficult for both the public and private sectors to meet these demands.

    Government policies play a crucial role in shaping the construction industry, and in Nigeria, the impact of economic instability is compounded by regulatory challenges.

    For example, inconsistent policy implementation, delays in securing permits, and bureaucratic inefficiencies often plague construction projects in Nigeria.

    In times of economic instability, government policy shifts can create uncertainty for construction firms. Changes in tax rates, tariffs, or building regulations can significantly affect the cost of doing business.

    Additionally, the lack of effective infrastructure planning and investment from the government has left the construction industry grappling with unreliable utility services, such as water and electricity, which are essential for construction work.

    While the Nigerian government has launched initiatives to promote infrastructure development, including the National Infrastructure Master Plan, the execution of these plans is often slow and affected by fiscal constraints.

    Without a stable regulatory and policy environment, the construction sector remains vulnerable to both domestic and global economic shocks.

    The construction industry in Nigeria plays a pivotal role in the country’s economic development, but it is highly susceptible to the challenges posed by economic instability.

    Inflation, exchange rate volatility, delays in project financing, labour issues, and inconsistent government policies have all disrupted the sector, making it harder for construction companies to operate efficiently.

    To mitigate the negative impacts of economic instability, the Nigerian government and industry stakeholders must work together to create a more stable and predictable environment for the construction sector.

    This could include introducing measures to stabilize inflation, improve access to financing, address regulatory inefficiencies, and foster greater collaboration between the public and private sectors.

    Moreover, the construction industry needs to adopt innovative technologies and project management practices that can help mitigate the impact of cost overruns, improve efficiency, and reduce project delays.

    By strengthening the resilience of the construction sector, Nigeria can ensure that it continues to play its essential role in the country’s development, even in the face of economic uncertainty.

    In conclusion, while economic instability poses significant challenges to the construction industry in Nigeria, it also presents an opportunity for the sector to innovate, adapt, and transform.

    With the right policies and strategic interventions, Nigeria’s construction industry can overcome these challenges and continue to contribute to the nation’s growth and development.

    •Ajirotutu is a lean construction expert.