The Nation Newspaper

Tag: Economy

  • German economy strengthens

    German economy strengthens

    The German economy showed continued strength at the end of the third quarter, with a gauge of private-sector activity hitting the highest in more than six years.

    The jump in the composite Purchasing Managers’ Index in September coincided with a similar improvement in the measure for France. With the euro area’s two biggest economies maintaining momentum, that’s keeping the region on track for its best year since at least 2010.

    Both national numbers beat economists’ expectations, suggesting that the eurozone gauge, forecast to dip slightly, could also surprise on the upside. That report is due 9 a.m. London time.

    For Germany, IHS Markit said the PMI rose to 57.8 from 55.8 in August, with both services and manufacturing strengthening. As with France, the index is far above the key 50 level that divides expansion from contraction.

    Phil Smith, an economist at Markit, said the German report shows the economy is in “rude health, highlighting strong broad-based growth in both business activity and employment.”

    The numbers come days after Bloomberg’s latest euro-area economic survey, which saw the currency region get another upgrade. Gross domestic product is now forecast to rise 2.1 percent this year, up 0.1 percentage point compared with August.

    The European Central Bank also raised its forecasts this month as its policy makers began a debate on how to slow the monthly asset purchases they’ve used to help support the economy in recent years.

  • Seven urgent ways to fix the economy – Tinubu

    Seven urgent ways to fix the economy – Tinubu

    Former Lagos Governor, Asiwaju Bola Tinubu was Principal Guest of Honour/Keynote Speaker at the 2017 Annual Dinner of the King’s College Old Boys’ Association (KCOBA) on Saturday, September 23rd, 2017 at King’s College, Lagos.

    In the speech read on his behalf by one time Lagos Commissioner for Finance in Lagos, Mr  Olawale Edun, Tinubu among others offered ideas that may aid the urgent need for fixing the nation’s economy.

    The seven suggestions by Tinubu are as follows:

     

    Our current national economic model is but an old, crumbling house. Repairing this edifice is the greatest challenge confronting us.

    NATIONAL INDUSTRIAL POLICY

    1. We must press forward with a national industrial policy fostering development of strategic industries that create jobs as well as spur further economic growth. Whether we decide to focus attention on steel, textiles, cars, machinery components, or other items, we must focus on manufacturing things that Nigerians and the rest of the world value and want to buy.
      We must partially reshape the market place to accomplish this. The federal government should institute a policy of tax credits, subsidies and insulate critical sectors from the negative impact of imports.

    NATIONAL INFRASTRUCTURE PLAN

    2. We need a national infrastructure plan. Roads, ports, bridges and railways need enhancing and new ones need to be built, the goal must be a coherently-planned and integrated infrastructural grid. A national economy cannot grow beyond the capacity of the infrastructure that serves it. Good infrastructure yields a prospering economy. Weak infrastructure relegates the economy to the poorhouse. Government must take the lead.

    The focus on infrastructure has important corollary benefit. Federal expenditure for needed infrastructural spending has empirically proven in every place and in every era to boost recessionary economies and provide employment when sorely needed. Deficit spending in our own currency to advance this mission is neither a luxury nor a mistake. It is a fulcrum of and balanced and shared prosperity.

    3. We must overcome the economic, political and bureaucratic bottlenecks preventing us from achieving reliable electrical power.

    This is perhaps the single greatest impediment to economic advancement. The lack of power inflates costs, undercuts productivity, causing havoc to overall economic activity and job creation. Our economic situation is literally and figuratively in the dark.
    The hurdles we face are not technical in nature.

    We must convince those political and economic factors currently impeding our quest for reliable power to step aside that we may obtain this critical ingredient to economic vitality.

    4. Modern economies are based on credit. However, credit for business investment is too costly in Nigeria.

    The long-term economic strength of the nation is dependent on how we deploy now idle men, material and machines into productive endeavor. And this is highly dependent on the interest rate.

    The CBN must cure its affection for high interest rates. Lower rates are required so our industrialists may borrow without fear that excessive costs of borrowing will consign them to irredeemable debt. The normal profit rates in most business sectors cannot support the burden imposed by current interest rates.

    If our industrialists do not invest in more plant, equipment and jobs, the economy will stagnate. The banking system would have achieved its goal of low interest rates at the greater costs of economic growth. This is as misguided as trying to save a branch by chopping down the tree.

    Consumer credit must be more accessible to the average person. The prevailing norm is for a person to purchase high -priced items such as a car in one lump sum. This is oppressive. It defeats the average person and constrains transactions in real estate, vehicles and appliances that could vitalize the economy.

    5. The government-backed home mortgage system must be re-engineered.  Mortgage loan agencies must be better funded, and liberalize their eligibility requirements so that more people qualify. They need to provide longer-term mortgages with manageable interest rates. Government should provide the supporting guarantees to make such financing a reality.

    By sparking the effective demand for housing, the overall economy is enhanced. The construction sector and the industries allied to it will surge.

    Moreover, to the extent that a man has a house he calls his own, that man is content; his contentment and innate common sense will act as brakes against instability and reckless political conduct.

    6. Also, a workable credit system lessens corruption. The current lump-sum payment requirement tempts people toward misconduct. They see no other way to secure such large sums. Their wages will not suffice. Thus, they either must steal the money, beg for it or forego the purchase. Having an accessible credit system that provides for periodic installment payments places a purchase within the reach of a person’s wages. They no longer have to equate being honest with doing without.

    7. Agriculture remains the backbone of the nation. We must help the common farmer by improving rural output and incomes.  This is best done via ensuring minimum prices for crops strategic to food security. Here, we must revive an old practice and policy that served us well. Though effective, this policy was shunned because it conflicted with the free market totems that we were asked to erect against our own interests.
    We must return to commodity exchange boards which will allow farmers to secure good prices and hedge against loss. An agricultural mortgage loan corporation should be inaugurated to further promote these goals.

  • NECA: economy still prone to recession

    NECA: economy still prone to recession

    •Fault NBS 2.19% growth

    The Nigerian Employers Consultative Association (NECA) has warned that the economy can relapse into recession unless urgent policy decisions are taken.

    It faulted the report by the National Bureau of Statistics (NBS) that Nigeria had exited recession, saying the economy was still in the woods.

    Speaking in Lagos at a briefing, its President, Larry Ettah, said major policy responses must be considered to ensure sustainable growth, as well as effective implementation of the Economic Recovery and Growth Plan (ERGP).

    Dissecting the report, Ettah observed that while it was positive that headline year-on-year inflation had moderated from 18.72 per cent to 16.05 per cent, largely due to base effects (high base occasioned by shock to energy prices in 2016), several components of inflation still remained high.

    He said other components that remained high include clothing and footwear at 15.8 per cent, education 15 per cent, imported foods 14.1 per cent, furnishings and household equipment maintenance 12.3 per cent, transport 11.7 per cent and health 10.3 per cent.

    He noted that the review of the NBS Gross Domestic Product (GDP) data showed that the marginal growth recorded in the second quarter (Q2) 2017 was weak and fragile, stressing that additional measures were required to ensure sustainable economic growth to the extent that the economy does not relapse into recession.

    “We recommend strong implementation of the ERGP to boost local and foreign investors’ confidence in the Nigerian economy and generate additional investments, which appear critical to building a sustainable recovery.

    “We note that against our population growth rate of 3.2 per cent, any GDP growth lower that two per cent makes no significant impact on poverty, unemployment and inequality and is insufficient to ensure business growth and profitability.

    “We urge economic planners to adopt measures to attain the growth targets stated in the ERGP. Already, we fear that the 2.19 per cent growth target in ERGP for 2017 appears unattainable,” Ettah said.

    He pointed out that the NBS report for Q2 confirmed the dire situation in most economic sectors including manufacturing, trade, telecommunications, hospitality, construction, real estate, transport and professional services. Ettah added that it also showed the poor state of the country’s social sector, as shown by the recession in education and health sectors. He stressed that it was clear that policy responses were yet to reverse these negative trends.

    “We are of the opinion that government needs to adopt specific, targeted and effective policies to attract and promote private capital investments in the Nigerian economy, especially infrastructure and industry.

    “So far, it does not appear as if the rhetoric in ERGP to make markets work and leverage private capital as the engine of growth has been matched by appropriate policy responses,” he said.

  • How BUA’s $1b investment’ll stimulate economy, create jobs

    How BUA’s $1b investment’ll stimulate economy, create jobs

    The investment of $1 billion in Obu Cement Plant in Edo State by the BUA Group is seen as a boost to the Federal Government’s  drive for investments to reboot the economy. Asst Editor OKWY IROEGBU-CHIKEZIE writes that the massive investment could change the economic landscape of the state and the country.

    With the investment of $1 billion in its cement plant in Okpella, Edo State, which, arguably, boasts Nigeria’s finest limestone depository, the BUA Group may have set the stage for the transformation of the state’s economy and, by extension Nigeria’s.

    For one, the newly-inaugurated cement plant, which has the capacity to produce three million metric tonnes of cement yearly, is seen as a big boost and a massive intervention to address the domestic deficit in cement products for construction.

    With the plant’s state-of-the-art setup seamlessly structured to facilitate the export drive, the investment is also seen as a significant boost for the nation’s cement self-sufficiency drive.

    BUA Group, according to its Chairman/Chief Executive Officer, Abdul Samad Rabiu, is building the second Obu cement line.

    Rabiu, who spoke at the launch of the facility, noted that the cement plant would reposition Nigeria from a cement importer to an exporter, increase production capacity from three million tonnes to 45 million tonnes by 2018.

    He said the cement sub-sector, which accounts for over 90 per cent of Nigeria’s mining sector, has the potential to shore up the $2 billion it injects into the country as foreign exchange (forex).

    Rabiu, however, said infrastructure, particularly stable power as well as policy consistency, was necessary to achieving a significant growth in the sub-sector. He said that the investment could double the sub-sector’s current 30,000 direct employment and over two million indirect jobs.

    “These kinds of investments in important sectors of the economy are not only necessary, they are critical.

    “In order to reverse our import dependency and diversify the economy, large corporations have to engage in game-changing investment in sectors such as agriculture, mining, and infrastructure, while government at all levels ensures an enabling environment for the investments to thrive,” Rabiu said.

    He said the vision of the company was to provide Nigerians with the best quality cement, using the best technology and best hands at the most affordable price. According to him, the choice of Okpella, in Estako East Local Government Area of the state, as the site for the plant, is strategic.

    “This community has the best limestone in the whole of the country,” Rabiu said, adding that the location is very good, being in the mid-west and it is very close to the cement market in the north, with excellent road networks in the south-west and to the east. “So, this place is at a strategic location to adequately distribute cement all over Nigeria,” he added.

    Rabiu also stated that the completion of the second line in the first quarter of 2018, being handled by SINOMA CBMI of China, is expected to take the company’s production capacity to six million metric tonnes per annum.

    He expressed confidence that SINOMA, with their track record and vast expertise in deploying cement plants across the world, would deliver a world-class second line for the Obu Cement Plant. “It will also meet our stringent environmental, safety, quality and technical requirements for our plants and products,” he said.

    The Obu Cement Plant utilises 9,000 tonnes of limestone and clay daily for its large-scale operations, while it produces 32.5, 42.5 and 52.5 grade cement. And the plant is engineered to be the most-environmentally- friendly cement plant in Africa with the most advanced dust emission control systems.

    “Our technology has the latest filtration with capacity of less than 10 milligram per normal cubic meter. We use natural gas, which is a very clean energy for both our kiln as well as the power plant, in addition to having a very green environment,” Rabiu said.

    At the inauguration of the plant and the ground-breaking of the second line, the Vice President, Prof. Yemi Osinbajo, pledged that the Federal Government would remove all human inhibitions to encourage investors.

    Commending BUA management for the achievement, he said the project, which is a wholly Nigerian enterprise, planned and executed by a Nigerian team, is a big boost to the economy, with the opportunities it will provide for skilled and unskilled youths of the state and the country at large.

    The Vice President noted that the plant’s output would guarantee self sufficiency of cement production for the nation, especially when BUA Group is using modern and efficient facilities with local materials. He said the company’s achievement had demonstrated that the Nigerian economic growth plan must be private sector driven.

    Osinbajo assured the private sector that the Federal Government would endeavour to make policies that would remove bottlenecks. “We will continue to create the enabling business environment and will directly assist the private sector to grow, which will in turn grow the Nigerian economy,” he said.

    According to him, the only feasible means to achieve a robust and far-reaching socio-economic development is to enable active involvement of private sector players and investors. Government resources, he said, cannot independently bridge the infrastructural and technological gap without the involvement of private sector resources.

    Osinbajo noted that advanced economies attained significance by the contributions of major entrepreneurs such as the Chairman of BUA Group. He emphasised that it was imperative to build a symbiotic relationship with committed serial entrepreneurs and investors to drive economic growth and development.

    His words: “Nation building is never judged by the number of new projects or fresh ideas that we begin; we are judged by what we complete and sustain. This country will only grow on the talent and resourcefulness of people like yourself who are ready to put their resources out and invest anywhere in the country, employ the local people in that community and add real value to the lives of Nigerians.”

    Edo State Governor Godwin Obaseki commended the management of the company for taking the bold steps in 2015 to initiate the process of establishing the plant. He expressed happiness that the management had made success of the company, including completely turning around the acquired moribund Edo cement factory.

    Obaseki said the vision and mission of the company were in line with the state government’s economic reform agenda, adding that “the State Government is ready to make Edo an industrial haven with friendly tax policies.

    He reassured the group of ensuring the operating environment was comfortable with the promotion of responsible and attractive tax regime. The state, he said, has reformed her land management process in a fashion that makes acquisition of land, security of approvals and building permit feasible without social harassments or uncontrolled communal land administration.

    Obaseki said: “We want to use this opportunity to invite other investors to emulate the BUA Group, come to Edo State and take advantage of the great potential in the state. Edo State is rich in limestone and other solid minerals, besides its status as an oil producing state. Government is resolute about economic diversification especially into areas where we have competitive and comparative advantage.”

    The governor also informed that his administration has created the enabling business environment for potential investors to invest in an industrial park, located in Ologbo, in Ikpoba Okha Local Government Area of Edo State, where the gas transmission line and proximity to power is expected to boost economic activities and create investments in the state.

    “We are currently designing an export processing zone with the initiative of investing in the Gelegele Port to boost production and agriculture, which is the major thrust of both the Federal and Edo State Governments’ economic diversification programme,” Obaseki added.

     

    How the BUA journey began

    The acquisition of a two million tonnes floating cement terminal labelled BUA Cement 1 in 2008 marked the company’s entry into the Nigerian integrated cement manufacturing. It was the first time the industry experienced a technology driven bulk-bagging of cement on a vessel.

    It acquired majority stake in the publicly listed Cement Company of Northern Nigeria PLC (CCNN), as well as in Edo Cement Company Limited in the same year before investing in the construction of a Greenfield three million tonnes plant in Obu.

    On the acquisition of CCNN, Rabiu said: “BUA’s investment in the cement line in Sokoto is the single largest private sector led investment in the North-Western part of Nigeria.

    “This is particularly important because Sokoto cement was the largest employer of labour in Sokoto State after the State Government, and the 60-year-old company founded by the Sardauna of Sokoto needed that investment to keep those jobs.”

    The effectiveness and efficiency of the plant in its first year of operation, which was over 90 per cent in an industry where efficiency averaged 60 per cent, led BUA to commence the construction of a second cement plant line of three million tonnes.

  • Plateau restarts its economy

    Plateau restarts its economy

    The Plateau State economy, which was comatose for decades, is bouncing back to life, thanks to the revival of its firms, reports YUSUFU AMINU IDEGU

    Once, Jos, the Plateau State capital, was the place to be. Few could resist its scenic ambience and clement weather. Back in time, when the colonialists were around, the Plateau tin mining industry helped to sustain the Nigerian economy. But at independence in 1960 the colonialists withdrew, and the tin industry shrank. Local mining hands lost their jobs.

    Upon its creation in 1975 Plateau State turned to agriculture but much of its land had been devastated by mining activities. Only such firms as NASCO Group and UAC prevented an economic disaster in Plateau. A boost came through the establishment of Jos International Breweries Plc (makers of Rock beer), Highland Bottling Company, Bark Farms, and Plateau Hotels, among others. The Jos Modern Market raised the commercial profile of the state. But over time, inconsistent government policies killed the new firms. In the case of the modern market, fire was its undoing. Even NASCO has weakened to the point of irrelevance. The famous Hill State owed its workers 27 months’ salary.

    The state economy was in ruins, with only the government being the major employer of labour, giving Plateau the status of civil service state.

    One major consequence of the slide was the large army of idle youths who became ready tools in the hands of unscrupulous politicians. In 2001 those youths played a major part in the violence which threw the once peaceful state into a theatre of war.

    Things are changing, thanks to Governor Simon Lalong who took office two years ago. Lalong came with a promise and determination to turn the state’s ailing economy around. The government set up an economic team of experienced entrepreneurs chaired by Mr Ezekiel Gomos, a former Secretary to the state government and managing director of Jos Business School. The economic team’s brief was simple: revive the state’s economy.

    Their effort is yielding fruit. Several firms are coming back to life.

    Gomos said, “The state-owned investment company that used to drive the state’s economy in the past was the first to be revived so that it can play a leading role in this economic revival. I am talking of Plateau Investment and Property Company (PIPC). This company itself was neglected by past administrations and that made previous attempts to revive the state economy difficult. But when we realised the important role of PIPC, we decided to start from there. So we had to properly reposition PIPC to be able to perform its statutory role as expected of it. One of the things we did in terms of properties that we are very proud of is the Gwarimpa Housing Estate in Abuja. PIPC acquired the properties from government in the year 2000. It was acquired by PIPC as a way of property investment. At a point the houses were allowed to deteriorate by those who managed it in the past, the houses got so bad that nobody wanted to live in them. Out of the ten houses, previous governments sold two and allowed the remaining eight to deteriorate. By the time we came two years ago, there were suggestions that we sell them, but even if you wanted to sell them you had to renovate them first. So the technical board embarked on the renovation and today they are all occupied by tenants, and we have not sold them.

    “When we came in we were able to track some of PIPC’s investments and we’ve been able to recover them. When you recover an investment of about N150 million, which was believed to have been lost, definitely it is an achievement one can be proud of.

    Speaking further, Gomos said, “To those who may not know, PIPC has capital market section, we introduced stock broking in 1994 when a lot of people in this state did not know anything about buying and selling of shares. But the section also collapsed in 2009 during the period of global economic depression. You know Nigeria was not spared in that global economic shakeup, same factors that affected capital markets in the entire country also affected that of PIPC. The good thing is that PIPC securities never lost their license unlike many brokers firm in the country, all we are doing now is to see how we can wake up businesses again, especially now that the country is gradually recovering from the recess.

    “But as it is now, this is the right time to buy shares as the global market economy improves gradually.

    “The economic team has put up several ailing state companies and made them active again so that they can help provide jobs for our teeming youths. But it is not easy to revive an ailing industry, it is easier to start a new one, but if you must start an old one, you need to take necessary steps. It takes longer to revive old companies especially the one that has debts on it, aging plants, unpaid workers’ salaries, etc.

    “However, Highland Bottling Company is already producing, they have employed more than 100 workers, they are planning to expand very soon. This administration has invested N20 million to bring the company back to life.

    “Now the JIB is the biggest of them all, we have completed the plant audit, this involved checking each of the equipment and ensuring its working condition, whether the equipment is outdated or useful, and whether any investor will want to continue with those plants. So for any investor to take over the company all these investigations have to be done. The investor expects the results of these investigations for him to compare with what is on the ground.

    “The main market itself is not a profit-driven investment; it was owned 100% by the state government and managed by an agency known as Jos Main Market Authority, which reported to the state Ministry for Commerce and Industry. When the market was burnt, the market authority also ran out of business. Now the present government does not have the cash to rebuild the market, which has been estimated to take up to N5 billion to rebuild. That is why government opted for private public partnership (PPP). Government advertised and has gotten one experienced consultant who has done similar project in various countries in Africa.

    “When all the ailing industries are fully revived, the state will no longer be called a civil service state, it will be called an industrialised state. Massive training of youths in entrepreneurship has commenced in the state because a lot of businesses are going to be generated by the industries and we need to get our youths ready to be the businessmen. They will be made to start with small-scale businesses and gradually grow to large-scale businesses. We believe that industrialisation is not just about industries, it is also about entrepreneurs.”

    The popular Hill Station Hotel has also been revived.

    Gomos said, “We have spent about N250 million to renovate it, much of that money went into settling debts, the famous hotel has been abandoned for over a decade, they have several months of unpaid salaries, to the level that the labour union dragged the hotel management to court over unpaid salaries. The court virtually closed down the hotel because the court ordered the auctioning of all properties of the hotel to settle unpaid staff salaries. As at then, the Plateau State government had only about 20% shares of the hotel. But the last administration bought additional shares and now the state holds about 75% of the hotel. So the hotel is more or less that of Plateau State government. The intercom of that hotel has not been working since the last seven years, and you can imagine what anyone lodging there will face without intercoms services. There were no TVs. But with the N250 million invested in the hotel by the present administration, the hotel has been turned around. It has about 170 rooms; we have renovated over 100 rooms, we have renovated the entire structure of the hotel and it is now looking new. The new GM is another experienced guy who has worked in Transcorp. Everything about the hotel has been changed including the service staff; now they look corporate and neat with their name tags. The staff were owed 27 months’ salary before we came, we have reduced that significantly. As result, tourists are back to the hotel as usual.

    “As chairman of the state economic team, I know that several investors have indicated interest in Plateau Hotel, Solomon Lar Amusement Park, Jos Wild Life Park, Jos Rock Hotel on which we are about sign a MoU. A German investor wants to take it for 30 years.

    “There is a lot of investment in the agricultural sector but the role PIPC plays there is to re-acquire the Bark Farm for agricultural purposes. A foreign company has asked for 1000 hectares of the land for processing of agricultural products.”

    Some believe the state governor has already started an economic revolution in the Plateau.

  • Laying the foundations for future economy

    SIR: If any past government of Nigeria, at the least in the past 20 years have started the structural shift of the country’s strategic economic fundamentals as the Buhari-led government have started recently, Nigeria would have currently been taken its pride of place among the emerging and middle income economies in the MINT (Mexico, Indonesia, Nigeria And Turkey) for which she was earlier and optimistically grouped. The avoidable spread of poverty and misery that is ravaging the country currently, would not have found Nigerians hapless victims they are today, to needless destitution.

    The making of contemporary emerging economies rest on three strategic pillars: Agricultural modernization, infrastructure, especially transportation (road, rail, air and power) and industrialization.

    These three strategic pillars of modern economy did not receive any appreciable and consistent attention in the past 29 years account for the massive structural disconnect that has hampered any meaningful and sustainable economic progress.

    Some major and key milestones include the recent finalization of the contract to build the Mambilla power plant, which would add about 4,000 megawatts to the current epileptic national grid. The consequence of the project when completed would be a strategic game-changer to Nigeria’s economic fortunes. Artisans, middle scale industrialists, business start-ups, of whom about 30% of their capital go into sourcing their own power, would be considerably relieved as they become more competitive, with obvious reduction in their cost of production.

    The transport arteries, especially the inauguration of railway lines that the President Buhari has embarked currently would trigger connectivity that is at the heart of contemporary emerging economies whose effect would be to create an integrated domestic market, enhancing supply and demand chains with powerful incentives for handsome rewards for productive activities. Already, the Abuja-Kaduna railway line launched and put to use, since July 2016 is making modest economic impacts along its routes. Young men and women who could have been susceptible to anti social vices of crimes and prostitution and even terrorism are engaged in informal modest economic activities in the more than 10 stations along the railway routes. New communities along the rail transport corridors will emerge, thereby lifting the pressure on the existing human settlements.

    In giving the nod to the flag-off of the construction of Lagos-Ibadan-Kano railway line, Port Harcourt-Maiduguri, President Buhari has demonstrated a profound grasp and insight of key element that would build inclusive and sustainable economy of the future. Road and air transport network should also receive such commendable commitment and the implication of a modern transport infrastructure to unleash the momentum of the economic development cannot be overemphasized but would be clearly self-evident very soon.

    Of course, the factory floors will have little to process and even the transport networks would be marginally useful if agriculture is not modernized and significantly improved. The agricultural sector is the chief support infrastructure to industrialization. President Buhari has demonstrated an uncommon resolve to revive and modernize the agricultural sector and the results so far, are too glaring for anyone to see. He hit the nail at the point at the recent commissioning of a multi-billion naira of the Singaporean invested agro-industrial conglomerate, Olam integrated poultry and feeds mill in Kaduna State. President restated his administration’s “belief that agriculture offers the most viable and all-encompassing option in an attempt to diversify our national economy and it is in this direction that we must feed ourselves from what we grow and grow what we eat before we can comfortably turn our attention to many key problems of our daily lives”.

    Should President Buhari and his team stay focused on these key priority areas of rebuilding the economy through agricultural modernization, industrialization and infrastructure construction, Nigeria in the next few years would have established the enabling framework for continuous growth, as its peers in the MINT, following in the footsteps of their BRICS-(Brazil, Russia, India, China and South Africa) counterparts.

    Once Nigeria is transformed to an opportunity and not liability to every Nigerian, the most toxic pressures on the national unity and stability of the country consisting of separatist agitations, religious fanaticism, horrific crimes like kidnappings and ritual killings would be considerably ameliorated. For this to happen, President Buhari must stay focused and even engage more robustly on the current economic trajectory.

     

    • Charles Onunaiju,

    Utako, Abuja

  • CBN sees further growth in economy

    CBN sees further growth in economy

    As the country exits recession, the Central Bank of Nigeria (CBN), said the economy will continue to improve in the days and years ahead.

    Speaking at the CBN’s 24th seminar for finance correspondents and editors in Awka, Anambra State yesterday, the CBN Governor, Mr Godwin Emefiele said he is “hugely optimistic that improved outcomes will be recorded in our work towards taming inflation, bringing down interest rates and guaranteeing exchange rate stability.”

    To achieve this, the CBN, he said is “consistently devising ingenious approaches to solve our peculiar challenges and will continue to learn from the experiences of other countries, particularly developing nations.”

    Emefiele however lamented that “the major challenge has been structurally-induced inflation, which has presented a dilemma to policy makers on whether to align the rates with socially desired or policy consistent outcomes.”

    To address these challenges, the CBN he said “has embarked on massive monetary stimulus through direct interventions in sectors that hold immense benefits for the broader economy.”

    Such interventions have been in agriculture, micro, medium and small scale enterprises (MSMEs), power sector, aviation and youth entrepreneurship, among others.

    These measures he said were necessitated by the liquidity (and credit) crunch that followed the global financial crises.

    The CBN, Emefiele said “has consistently sought to formulate interest and exchange rate policies that are conducive to the development of domestic private industrial activities, while taking due cognizance of other macroeconomic variables.”

    Speaking on foreign exchange (forex) and interest rate developments in the country, Emefiele said the apex bank recently introduced flexbile forex regime, with forex restrictions placed on the importation of 41 items.

    “This became inevitable in order to curtail fast depleting foreign reserves, occasioned by the significant demand for imports in Nigeria,” he said.

    The CBN, he added, “has consistently supported the economy with robust supply of foreign exchange to deposit money banks (DMBs) particularly to meet demands for invisibles such as school fees, medical tourism and personal travelling allowance. This has led to stability in the naira exchange rate against the US Dollar.”

    Emefiele warned that fundamentals of the domestic environment needed to be promoted to support domestic production and invariably curtail imports.

    To this end, the CBN he said “has consistently sought to formulate interest and exchange rate policies that are conducive to the development of domestic private industrial activities, while taking due cognizance of other macroeconomic variables.”

    The CBN he assured will continue to explore further avenues to ensure that interest rates are supportive of domestic production needs.

    While the “Bank will continually fine tune measures to ensure and guarantee a stable exchange rate regime. With on-going recovery in economic performance.”

  • Economy heading in right direction, says Oyegun

    Economy heading in right direction, says Oyegun

    All Progressives Congress (APC) National Chairman Chief John Odigie-Oyegun said at the weekend that the party has stabilised, assuring that it was heading in the right direction.

    He said the state of the nation was now strong, with the weak economy being diversified by the Buhari administration through aggressive focus on agriculture, development of solid minerals, the creative industry and other viable sectors.

    Addressing the second plenary of the Catholic Bishop Conference of Nigeria holding in Jalingo, the Taraba State capital, Oyegun said the vision of the APC was to steer the country to a part of peace, progress and restoration of hope for a better tomorrow for the people.

    He said the APC was committed to working hard to achieve this vision by building and consolidating on the successes so far achieved while striving for accelerated growth

    Oyegun said: “Today, President Buhari administration is transforming the nation’s economy from being oil-dependent and consumer-based to a multi-sector and production-based economy.

    “The economy is currently being directed on the part of inclusive growth in which the weaker elements of the society are not left behind but supported through social safety nets. The political space is liberal and individuals and groups are able to freely express opinion without repression.  National peace and security challenges are being tackled assiduously and the future of the country is bright.”

    The APC national chairman acknowledged the support the party received from Nigerians during the 2015 general elections to save the country from the brink of disaster, adding that a lot has been said about the condition in which the President Buhari administration found the country on assumption of office.

    “However, this is not the time to trade blames anymore, but rather to focus on the task of stabilising and pointing the country on a trajectory of sustainable recovery and growth.”

  • NASME seeks opportunities for indigenes in Bayelsa economy

    NASME seeks opportunities for indigenes in Bayelsa economy

    Bayelsa State is poised to play a key role in small and medium business sub-sector. The state has realized that its economy will continue to lag behind without getting its indigenes to tap from the potential of small and medium enterprises.

    Recently, the state’s chapter of the Nigerian Association of Small and Medium Enterprises (NASME) held its second General Meeting in Yenagoa, the state capital.  The meeting came a few weeks after NASME, for the first time in the history of the state, was inaugurated and got an acting Executive Committee in Bayelsa.

    In the maiden general meeting on February 23, 2017, the South-South President of NASME, Dr. E.D. Oko-Jaja, inaugurated the executive committee with a seasoned entrepreneur and politician, Chief Thompson Okorotie emerging as an interim state Chairman of the group.

    The first meeting was attended by almost all the stakeholders in the sub-sector. The Commissioner for Trade, investment and industry, Mr. Kemela Okara and the Director-General, Bayelsa State Micro-Finance and Enterprises Development Agency (BYMEDA, Mr. Jasper Eradiri.

    Others were Bala Hassan, Regional Head, Bank of Industry, south-south; Ayakeme Mass, Rector, Bayelsa State Institute of Entrepreneurship; A.A Ifidi, Head, Corporate Development, Central Bank of Nigeria (CBN), Bayelsa state and Nengi Rufus-Spiff, Managing Director, Izon-ibe Micro Finance bank Ltd.

    Discussions from the maiden stakeholders’ meeting identified challenges militating against the growth of small businesses in the state. The discussants listed lack of capital, lack of managerial skills and the culture of not repaying loans as impediments to business in the state.

    But the stakeholders asked Okorotie and his team to use their acting capacities to reposition the growth and development of small businesses in the state. Therefore, the stakeholders gathered recently for their second general meeting. They evaluated the activities of the Okorotie interim leadership of NASME and gave him kudos.

    Prior to the passage of confidence vote, Okorotie gave an account of the committee’s stewardship. He said the committee engaged sub-sector operators and relevant ministries, departments and agencies to formulate strategies of reducing the impediments facing small businesses in the state.

    Within a short period of time, he said the executive committee met seven times and embarked on concrete actions to tackle the deficiencies.

    He said: “I am pleased to report that the interactions have been very productive. For example, your state chapter has been frequently consulted and involved in all matters concerning MSMEs programs by government agencies.

    “Secondly, a few members of the chapter have benefitted from loans on the Anchor Borrowers platform which is a partnership between the State Government and CBN.

    “We are looking forward to a more robust participation in the next tranche of the programme that is expected to come on stream in October / November, 2017”.

    He said during their interactions, he said they observed that the Ministry of Trade, Investment and Industry; BYMEDA and the Izon-Ibe Micro-Finance were working tirelessly to empower indigenous entrepreneurs to make them drivers of the local economy.

    He said: “We commend H.E. Governor Henry Seriake Dickson and the State Government for establishing and funding the various institutions and implementing a collaborative framework with Federal MDAs for development of the MSME sub-sector in Bayelsa State.

    “Furthermore, as a result of such efforts, we are witnesses to a gradual emergence of local content through the creative and innovative talents of Bayelsans who are producing Made in Bayelsa State products and services.

    “As a result of this realization, the State Executive Committee has decided to organize the first Bayelsa State SME conference. I expect all of us to play greater roles in our membership of NASME because many opportunities abound.

    “I am not pleased about the slow appreciation of the potentials of  the micro, small and medium enterprises development in Bayelsa state. Some entrepreneurs remain lukewarm and feign unawareness of the possibilities of this vital sub-sector”.

    Okorotie also told the stakeholders that they had received various invitations from China, Italy, UK and the Bank of Industry through the National Secretariat for capacity building, exhibition of locally-made goods and participation in International Conferences.

    But he said: “We have not been able to benefit from these available opportunities. So I look forward to a more committed membership while I call on more  Bayelsans to register with NASME so that we can take advantage of the numerous national and international opportunities available to members.

    “Let us develop our managerial capacity to run our companies better and successfully. Let those of us who are beneficiaries of loans regularly service them so that more Bayelsans can benefit”.

    He thanked members of his committee for their hard work and and contributions. The committee members are Chief Lambert S. Otot, Mr. Freedom Prefa, Mr. Franklin Egbegule, Princess Tina Amagbar, Mrs. Phyllis Fafi, Mr. Randy Zimugha and Mrs Maria Enogha

    Others are Dr. Godson Omubo-Dede, Mr. Dan Igrubia, Mr. S.D.W. Ajimmy, Mr. Godgift Abaribote, Bishop Tari Okorotie and Mrs.Faith Samuel.

    Okorotie appealed to the stakeholders to either orally confirm them and make them substantive executive members or set up a committee in the next weeks to conduct an election to fill the vacant positions on the committee.

    Impressed with their performance, the stakeholders in unanimous voice votes gave the committee a permanent status. The chairman unveiled future plans of his committee and express optimism that the plans would reinvigorate small businesses in the state.

    First, he said the committee would meet with Governor Dickson to brief him and appeal for assistance to ensure growth of NASME, in the interest of local economy.

    He said the committee would develop media partners by visiting all media houses in the state to create awareness of NASME and its benefits.

    Okorotie noted that the state would organize the the first state conference and exhibition on NASMEs bring indigenous business people, the banks and government officials together with a view to achieving a coordinated development of MSMEs in Bayelsa state.

    He further said the state would participate in the Federal Government SME clinic scheduled for the South-South zone from 28th-30th September, 2017 in Port Harcourt, Rivers State.

    In an interview, the Secretary NASME, said the committee would work to ensure that Bayelsans occupy the top ladder of the state’s economy.

    “It is crucial because except you are in control of your environment, you will not benefit from what nature itself has provided. Now the blueprint of NASME is to work properly with the state government, the Federal MDAs that are directly involved in small and medium businesses.

    “Our ambition is to ensure that NASME members benefit from the various opportunities such as the invitation from China for which NASME wasn’t ready.

    “With that invitation, Nigerian goods particularly Bayelsa goods would have been taken to China to open International marketing opportunities”, he said.

  • ‘Apapa infrastructure regeneration ‘ll boost economy’

    ‘Apapa infrastructure regeneration ‘ll boost economy’

    TheFederal Government’s efforts to redevelop infrastructure in Apapa, Lagos State, coupled with private sector involvement to reconstruct a section of the road within the corridor, will boost the economy.

    Minister of Power, Works and Housing Mr Babatunde Fashola, made the submission last week while inspecting some projects in Lagos State.

    “There is need for total regeneration of roads and other infrastructure in Apapa, which houses the nation’s major ports, to boost the nation’s economy. We are battling to restore Liverpool Road and the bridge, this road must not collapse; it would shut down the country,” Fashola said.

    He noted that if Liverpool Road, which leads to the Tin Can Island Port, and the Nigeria Ports Authority, and Funsho Williams Road are lost and not kept in proper shape, it would be tantamount to having shut down the nation.

    His ministry, he said, is working on making all roads in Apapa and its environs motorable because of the importance of the axis to the national economy, adding that the roads have been inadequately maintained for about 40 years.

    Fashola, who was on an inspection of the Apapa-Wharf Road reconstruction, said President Muhammadu Buhari was happy with the financiers of the two-kilometre road project: AG Dangote Construction Company, Flour Mills of Nigeria Limited and the Nigerian Ports Authority. “President Buhari appreciates the gesture,’’ he said.

    An engineer with the Federal Ministry of Power, Works and Housing supervising the road project, Mrs. Korede Keisha, explained that the work would have advanced beyond the present state but for the contractors’ inability to relocate some gas pipes found underneath the road, which were too expensive to move.  Keisha revealed that this development made the contractors to shift the road to about one metre away from the gas pipe.

    A former Lagos State Commissioner for Transportation and consultant to AG Dangote Construction Company Limited on traffic management, Mr. Kayode Opeifa, explained that a collaboration on the traffic management plan was helping the firm to surmount gridlock and free the site for construction. He, however, lamented the activities of unorganised port operators, accusing them of causing congestion on the road with their trucks.

    The inspection tour, which began from the National Stadium, Surulere, spanned through Alaka to the Apongbon Bridge, and outer Marina.

    On the Alaka Bridge, Fashola instructed his team of engineers, led by Director, Federal Highways, Southwest, Mr Emmanuel Adeoye, to expedite action on the replacement of vandalised manhole covers. They are also to reconstruct some drainage and unblock drainage channels connecting a major canal in front of the National Theatre, Iganmu to solve flood problem, which is said to be a major cause of the persistent road degeneration in the area.

    He appealed to Reynolds Construction Company (RCC) Project Manager, Mr Vaknin Harel, whose firm is handling the rehabilitation of Funsho Williams Road up to Ijora Bridge, to hasten work.

    Fashola urged RCC to endeavour to finish the reconstruction work before the next rainy season, considering the fact that the entire stretch of the road sits on swampy land. He also mandated the contractor to replace vandalised bridge railings on the axis with concrete.

    Harel explained that RCC was patching potholes caused by flooding, as well as filling the road with more durable materials to asphalt stage, to make it last longer.

    Inspecting the street lights both under and above the Ijora and Funsho Williams Avenue bridges, the Minister directed his engineers to liaise with the state Rural Electrification, to replace all the lights. “If there are new solar technologies, adopt them. It is a total regeneration of this Apapa area that we want,’’ he said.