The Nation Newspaper

Tag: Economy

  • We’re working towards private sector-driven economy, says President

    We’re working towards private sector-driven economy, says President

    The Presidential Enabling Business Council, approved by President Muhammadu Buhari, will work in with a private sector-led Enabling Business Environment Secretariat (EBES) to develop action plan for the implementation of reforms in the nation’s business environment.

    Buhari stated this in a message to the opening of the 37th Kano International Trade Fair, saying the Federal Government recognised the fact that the economy required a private sector-driven approach for sustainable growth.

    The President approved the Presidential Enabling Business Council, chaired by Vice President Yemi Osinbajo, to provide strategic direction and political will for reforms and action plans to remove bureaucratic bottlenecks and facilitate procedures for business and property registration, taxation, export and import documentation among others.

    “As a government, we are mindful of the fact that the kind of economic growth that Nigeria requires is one that is driven by the private sector, with the government acting only as an enabler and cheerleader; creating and implementing policy initiatives that would enable you – investors, traders, entrepreneurs, SMEs – to operate at maximum potential and create economic value, for yourselves, and for the people and government of Nigeria,” he emphasised.

    Represented by the Minister of Industry, Trade and Investment Dr. Okechukwu Enelamah, the President maintained that while his administration will attract foreign investment through a number of incentives, it was aware of substantial investible funds within the country, and will encourage such funds to be channelled into investment and enterprise.

    He reiterated that the government would restructure the economy away from dependence on oil and gas revenues to agriculture, oil minerals, manufacturing and Information and Communication Technology.

    Kano State Governor Dr. Abdullahi Umar Ganduje, who was represented by his deputy, Prof. Hafz Abubakar, hailed the Federal Government for working to create a favourable business climate in the country.

  • Widespread discontent with economy, corruption in Nigeria, South Africa, Kenya

    Widespread discontent with economy, corruption in Nigeria, South Africa, Kenya

    In South Africa and Nigeria – sub-Saharan Africa’s two largest economies – economic sentiments have turned sharply negative since 2015, according to a new Pew Research Center report.

     

    The economies of Kenya and Nigeria  are in bad shape according to seven-in-ten South Africans and Nigerians in a report by Pew Research Centre.

    In the East African economic hub of Kenya, the report finds, just over half say the same, while large majorities in all three countries consider the lack of employment opportunities a very big problem.

    Just over a year ago, the United Nations agreed to an ambitious agenda for bettering the lives of people around the world – the Sustainable Development Goals (SDGs). The SDGs call for countries to improve across 17 issue areas, including economic growth, accountable institutions and reduced inequality, among others. While the target for achieving the SDGs is not until the year 2030, the publics in Kenya, Nigeria and South Africa are increasingly concerned about some key development issues. At the same time, they express considerable optimism about the future.

    Still, many believe the political and economic system is stacked against them. Political corruption – seen by many experts as a key stumbling block to a country’s development – is a major public concern. Broad majorities in all three countries name government corruption as a very big problem. Most South Africans, Kenyans and Nigerians believe that government is run for the benefit of only a few groups of people in society. Perhaps most troublingly, only around a third of South Africans and Kenyans say government corruption will be less of a problem in their countries when today’s children grow up. Nigerians are more optimistic that there will be less corruption in the future – 60% expect things to improve.

    In the economic realm, most see rewards and opportunities going primarily to those at the top. Majorities in all three nations say the gap between rich and poor has increased over the past five years. And when asked why so many people lack jobs in their country, the top reason given is that many jobs go only to people with connections.

    Despite these concerns, there is considerable optimism about the future across the three nations surveyed. At least six-in-ten in each country say health care and education – two key issue areas that are highlighted by the SDGs – will be better for the next generation. And even though their views about the current state of the economy are negative, most are upbeat about the short-term economic future: Majorities in Nigeria, South Africa and Kenya believe their countries’ economies will improve in the next 12 months. Moreover, roughly three-in-four Nigerians, Kenyans and South Africans believe that young people today who want to live a good life should stay in their countries rather than move abroad.

    These are among the key findings of a new Pew Research Center survey, conducted in South Africa, Nigeria and Kenya among 3,330 respondents from March 29 to July 9, 2016. Additional key findings in the report include:

    South Africa: South Africans are more dissatisfied with the way things are going in their country in 2016 than they were at any time the question was asked in the past eight years. Whereas South Africans were split on their country’s direction in 2014 (47% satisfied, 49% dissatisfied), 74% now say they are unhappy with the way things are going and only 24% are satisfied. The poor state of the economy may be one driver of the souring mood in South Africa. A large majority (70%) describes the economy as bad, with 45% saying it is very bad.

    Kenya: While Kenyans are generally optimistic about the future, they still say a range of development issues pose serious challenges for their country today. At the top of the list, with at least eight-in-ten Kenyans saying each is a very big problem, are government corruption (91%), economic issues such as a lack of employment opportunities (87%) and poverty (86%), and crime (82%).

    Nigeria: Poverty is the top issue for Nigerians, with 93% saying it is a very big problem in their country. Energy shortages (e.g., blackouts or fuel scarcity), crime, government corruption and a lack of employment opportunities round out the top five concerns, with roughly nine-in-ten citing each as a very big problem. Over the past year, there have been food shortages in northern Nigeria and concerns about this issue have risen since our 2015 poll. Lack of public participation in politics was the only issue tested not viewed as a very big problem by a majority of Nigerians.

    Models for Development: When South Africans, Nigerians and Kenyans are asked about the best example of an economically developed country, they tend to cite the U.S. and China. And when asked what makes the U.S. or China the leading model for development, many respondents note the economic opportunities and growth in the two nations. Beyond this, however, people provide very different rationales for what makes the U.S. or China the best example. Respondents who name the U.S. tend to focus on American governance, citing good leadership and low levels of corruption, as well as education, as reasons why the U.S. is economically successful. People who think China is the best example of an economically developed nation attribute this to Chinese technology, as well as the country’s manufacturing and exports and its work ethic.

    Pew Research Center is a subsidiary of The Pew Charitable Trusts, its primary funder. This report was made possible by The Pew Charitable Trusts, which received support for the survey from the Bill & Melinda Gates Foundation. The findings are for immediate release and available at http://www.pewglobal.org/2016/11/14/in-key-african-nations-widespread-discontent-with-economy-corruption

  • ‘Non-passage of PIB hurting economy’

    ‘Non-passage of PIB hurting economy’

    The delay in the passage of the Petroleum Industry Bill (PIB) is hurting the economy and stunting progress in the extractive sector in particular, experts have said.

    The experts, who spoke with The Nation in separate interviews, lamented that, despite being touted as the best thing that would happen to Nigeria’s oil and gas industry and also the economy, the PIB has remained stagnated at the National Assembly (NASS) since 2007.

    The PIB, introduced in 2007, was expected to produce a dynamic policy framework for massive reforms in the oil & gas industry. The reforms were expected to form the nucleus of Nigeria’s aspiration of becoming one of the most- industrialised nations by 2020.

    For the country to realise this dream, it was envisaged that the major source of revenue to the Federation Account, the oil and gas sector, must be repositioned for greater efficiency, openness, and competition built on corporate governance as obtained in other resource-rich nations.

    Sadly, the PIB, which is the vehicle to achieving these goals, is yet to be passed into law, with experts noting that the industry and the economy would continue to lose with the its non-passage.

    “It is unfortunate that the PIB, which is touted as the best thing that would happen to Nigeria’s oil industry and also boost the economy has been stagnated at the National Assembly,” the Chief Executive Officer, Holistic Security Background Checks Limited, Don Okereke, lamented.

    The security expert attributed the non-passage of the PIB to high-wire politics. “It appears some powerful cabals are opposed to it, he told The Nation, pointing out, however, that the  Senate is reportedly making arrangements to expedite or fast track its passage.

    Also, the Director, Health of Mother Earth Foundation (HOMEF), Mr. Nnimmo Bassey, said: “When a suitable PIB is passed into law, it will provide a good playing field for all stakeholders in the sector.”

    Bassey, a renowned international environmentalist, told The Nation that if Nigeria valued its people and the environment above money, it ought to show this in the formulation and enforcement of environmental laws.

    He said this bridge could be crossed by having uniform provisions for the environment and host communities in the extractive sector.

    According to him, this will eliminate parochial considerations and arguments that stymie progress in the sector, thus, allowing an unacceptable regime to persist.

    Bassey noted that the reasons the initial PIB could not be passed after eight years of negotiations and debates were still at play, adding that the unfortunate fact was that some of the contentious aspects of the Bill ought not to be seen as such.

    “The current approach has been to break the PIB into four bills and have them passed into law in bits. The troubling aspect of that approach is that the concerns of communities and the environment may be pushed to the back burners, while financial management issues take the front seat,” Bassey argued.

    Noting that the PIB is a good first step in reforming the industry, he said the delay in passing it into law was unacceptable. He attributed the delay to several factors among which are toxic politics and pressure from the International Oil Companies (IOCs) which, he said, had stated hat they would not accept laws that curb their excessive profits.

    Bassey also identified the pressure points as wrong perception by some legislators that provision of funds for communities meant more money to the oil-bearing states.

    “Actually, the PIB makes the offer of money to communities on one hand and takes it away on the other. It criminalises communities when it says that if oil facilities are tampered with then the communities, local govt areas and states would pay,” he said.

    He argued that communities were not the policemen of oil facilities.

    “The PIB speaks the old language of subsisting laws that free IOCs of responsibility where facilities are interfered with by third parties. That has made the claim of sabotage the favourite refrain of the oil companies even before incidents are investigated.

    ‘’The PIB fell into the same anti-people trap,” he said.

  • ‘Unco-ordinated action responsible for slow global economy’

    The International Labour Organisation (ILO) has blamed lack of coordinated action for the slow growth of the global economy.

    Its Director-General, Guy Ryder, in a statement, lamented that the global economy was yet to recover eight years after the global financial crisis, fueling anxiety that there was a high risk that it would remain stuck in a slow growth trap.

    The ILO chief said there are over 70 million women and me who are unemployed but who would have had a job if pre-crisis growth had resumed. With the latest downward revisions in growth prospects, the jobs gap could rise to over 80 million by 2020.

    His words: “Global real wage growth dropped sharply during the crisis, recovered in 2010, but has since decelerated. If China, where wage growth was faster than elsewhere is not included, wage growth fell to below the one per cent per annum recorded in the crisis years. Increasing decent work opportunities and improving wages are key to breaking out of the slow growth trap and rekindling a virtuous circle of increased investment, rising productivity and sustainable enterprise and wage and consumption growth.

    “It is estimated that 156 million employed youth, or 38 per cent of working youth in emerging and developing countries are living in extreme or moderate poverty. The potential of the generation that must work to achieve the 2030 Agenda’s sustainable development goal is being wasted.”

    Ryder stressed that investing in gender equality at work and in enabling women and men to balance work and family respo  nsibilities is a top priority in structural reform of the labour market and increasing the productive potential of the world’s workforce.

    The DG noted that the the body and the World Bank’s shared objective is to increase the number of countries that can provide universal social protection, supporting countries to design and implement universal and sustainable social protection systems.

    “Universal social protection refers to the integrated set of policies designed to ensure income security and support to all people across the life cycle – paying particular attention to the poor and the vulnerable,” Ryder said.

     

  • Fed Govt. eyes automotive industry to boost economy

    The Federal Government at the weekend said the automotive industry has the potential to grow and develop the nation’s economy.

    Minister of State for Industry, Trade and Investment, Aisha Abubakar stated this during the opening ceremony of the 18th Abuja Motor Fair held in Transcorp Hilton.

    She stated that the government was currently holding high level discussions with global equipment manufacturers to develop the Nigerian automotive sector as part of plans to diversify the economy.

    According to her, the automotive sector, occupies a critical catalytic role in Nigeria’s Economic Revolution.

    She said: “It is instructive to note that the present government has placed high premium on the automotive industry in Nigeria which has a potential to contribute immensely to the growth and development of the country’s economy.

    “The government is supporting the industry because of its strategic and catalytic role in economic development. Therefore in our present economic challenges, government is in high discussion with global Original Equipment Manufacturers (OEMs) in ensuring that the Nigerian automotive sector is developed.

    “This will not only facilitate the mass movement of people, agricultural products, mining, railway equipment, military hardware but will also create jobs and employment for our teeming youth.”

    Represented by the Deputy Director, Engineering Division  at the ministry, Mr. Ibikunle Adams, the minister emphasised that the ministry would strengthen partnership with the private sector to leverage and catalyse resources for development and growth.

    She added that government was also fine tuning its procurement policy to support preferential purchase of local vehicles.

    “On the part of Nigeria’s automotive industry, government is not only looking at the supply side issues but also the demand side is giving prominence. The ministry is giving all the necessary support to ensure that Nigeria Automotive Design and Development Council (NADDC) come up with vehicle purchasing scheme that will enable Nigerians buy made in Nigeria vehicles.

    In his address, Minister of Science and Technology, Dr. Ogbonnaya Onu, stated that the government would promote the production of automobile in Nigeria.

    The minister who was represented by Director of Planning and Policy at the National Science and Engineering Infrastructure, (NASENI), Onyechi Nonyem, added that the ministry would partner with critical stakeholders in the road transport sector to ensure development and growth of the sector.

    “Agencies under Ministry, like the National Agency for Science and Engineering Infrastructure (NASENI), are in the forefront of promoting the production of automobiles and automobile parts for road transport use,” he stated.

    The Managing Director, BKG Exhibitions and Chairman of the Organizing Committee, Ifeanyichukwu Agwu, stated that automotive sector had the capacity to reduce over 30 per cent of Nigeria’s job deficits and create up to two thousand industries.

  • PDP to FG: Declare emergency on economy

    PDP to FG: Declare emergency on economy

    The Peoples Democratic Party (PDP) has advised the All Progressives Congress (APC) led Federal Government to declare “emergency” on the economy.

    The PDP National Publicity Secretary, Prince Dayo Adeyeye, made the call in a statement in Abuja on Tuesday.

    Adeyeye also advised government to invite competent hands to manage and revive the country’s economy.

    He, however, said that PDP had been vindicated of its positions following the acceptance of responsibility regarding the economic misfortune caused by the APC.

    He said Gov. Rochas Okorocha of Imo, who spoke with newsmen after APC governors meeting with President Muhammadu Buhari on Monday accepted the responsibility.

    Adeyeye quoted Okorocha as saying “We must take responsibility and we must never shift the responsibility to anybody. We are responsible for everything happening in Nigeria.

    “The good, the bad, the ugly but we are promising Nigerians that we shall fix it”.

    The PDP spokesman said that the declaration came after several months of bulk-passing to previous PDP administration.

    He called on the APC to also accept other responsibilities as well correct the impression that previous PDP administration achieved nothing in the economy, infrastructure and policies in 16 years.

    “For the umpteenth time, let us reiterate that the PDP’s achievements cannot be wished away.

    “We therefore appreciate the APC’s acceptance.

    “We urge them to accept all other responsibilities for all the wrongs they have plunged the country into and equally apologise for their serial lies.’’(NAN)

  • Oke promises to revamp economy

    The governorship candidate of the Alliance for Democracy (AD), Chief Olusola Oke, has vowed to turn around the state’s fortunes if he assumes office as governor next year.

    Oke spoke at the inauguration of his campaign team in Akure, the state capital.

    He assured the people that he had put in place a programme to revamp the economy and make the people the cornerstone of his administration.

    A statement by the Chairman, Media and Publicity of the Olusola Oke /Ganny Dauda Campaign Organisation, Bisi Kolawole, described the AD as a movement resolute to form the next government after its victory on November 26.

    His words: “This poverty in the midst of plenty and the glaring ineptitude of those in power is unacceptable.

    “We want to change this, we want to bring in a new order, we want to bring in a new vision, we want to make our people happy and bring joy into the lives of all and sundry in Ondo State.

    “We will revamp our economy, we will make our traditional rulers happy, make our people the cornerstone of our programme and empower our youths to benefit from the abundant recourses that abound in Ondo State.’’

    The AD candidate said his campaign would begin at Ondo East Local Government today to meet with the people and intimate them on his programmes to take the state back on track.

  • Economy: Perspective from the diaspora

    The Nigerian economy has been in a state of decline for a long time. It has been dependent on oil and the price we get for oil is not within Nigeria’s control. The problems we are experiencing today have been in incubation and are merely being made manifest at this time. It is tough, as most Nigerians struggle to live day to day. But Nigerians must take comfort in the knowledge that the fortunes of Nigeria can be turned around in a relatively short time. The reason is that Nigeria has a special appeal; Nigeria’s demographics make Nigeria a market that cannot be ignored. We have a government that is capable. We have a President that has made a stand against corruption; a President that stands for transparency. What the President stands for is what we need to build the business community. Generating more business opportunity within Nigeria will lift the economic fortunes of the country. That can be done and there are strategies for achieving that objective.

    The details of the investment strategy remain to be seen. The government seems to have the right objectives. The Minister of Finance has stated in recent public speeches that the government was committed to diversifying the economy to reduce the dependence on oil, investing in infrastructure and improving the business environment. The business environment is key. The next step for the government is to set out how these steps are to be achieved.

    The structure of the Nigerian government is what we have and whether it is appropriate or not, we must address the economic problems we have today. The Minister of Finance comes across as capable and as one who understands the issues. She should be asked to provide a blueprint for achieving the government’s declared objectives. In particular, she must specify where the money will come from to investing in infrastructure? What is the plan for building the business environment? Such detail will give the Nigerian public hope that things will get better. The situation can get better. As an example of how the situation can change, there is the case of a Chinese investor who came to Nigeria in December 2012 to establish a ceramics factory. It started operations in 2013 and in just about three years, the company has built a N30 million turnover business that employs 2,000 Nigerians, buys 95% of their raw materials from Nigeria and has become the largest ceramics tiles producer in Nigeria and probably in Africa. President Buhari should put his ministers to task. He should ask what made that investor come to Nigeria? What has been the experience of the investor in Nigeria? What challenges are they having? If that investor is happy, their recommendation will attract 20 more investors. If however the investor is unhappy and wishes to leave Nigeria then we will lose more investors. Another example id the announcement made in April that a USD 1 billion pharmaceutical park was to be established in Nigeria. That investor is now concerned about investing in Nigeria.

    The issues are lack of transparency, lack of respect for contracts, lack of predictability in our systems. If we fix these issues and start to create transparent and predictable procedures whereby investors can make their plans in the knowledge that their agreements with be honoured, the business will grow. The government’s fight against corruption should be commended. Corruption lies at the heart of Nigeria’s problems today and fixing it holds the key to our redemption.

    Nigeria’s problem is complex. The root of the problem is corruption. Unfortunately it is endemic. Corruption is serious and goes beyond government officials putting cash belonging to the public. Corruption robs us of our dignity and sets limits on what we can achieve. There two aspects to fighting corruption – a backward looking and forward looking aspect to the fight. The backward aspect involves catching those who have been corrupt, punishing them in order to deter others from being corrupt. The forward looking aspect is about creating systems that allow Nigerians to operate without corruption and allows wealth to be generated in Nigeria. It is the forward looking part of the fight that needs more focus. For instance, the President should look at the systems around him and ask whether they are transparent – is there a way for an individual to get the attention of the President without having to know the right people? Is there a procedure specified to be followed which will indeed yield the required results? The fight against corruption requires us to provide transparent and predictable systems in and around government. Within our communities and networks, we should come up with solutions which we should then pass on to the government.

    We must be careful not to neutralise the strength and attraction of Nigeria which is in its size. Whatever problems we have in Nigeria today will remain even if Nigeria is split into smaller units. The problem with Nigeria remains – the absence of transparent and predictable systems.

    It is an indictment of Nigerian society if our young people who should be full of hope are willing to abandon the country flee across North Africa and then to Europe on open boats. This is the reason that Nigerians must hold the government to account. If the government is failing, the people of Nigeria should take responsibility for that as well. Ask the government for answers in a supportive way.

    The government must focus on encouraging more investment into Nigeria. It must find ways to attract more foreign investors, it must not lose one foreign investor already in Nigeria and encourage Nigerians in diaspora to invest in Nigeria. The government must create the environment for such investments to thrive.

     

    • Uwaifo is a Solicitor specialising in supporting investors in Africa.
  • IMF: Nigeria’s economy overtakes South Africa’s, Egypt’s

    IMF: Nigeria’s economy overtakes South Africa’s, Egypt’s

    A new report from the International Monetary Fund (IMF) has projected Nigeria as Africa’s biggest economy, in spite of its current challenges.

    Nigeria is placed ahead of South Africa and Egypt which are second and third respectively.

    In August, Nigeria was reported to have lost its position as Africa’s biggest economy to South Africa, following the recalculation of the country’s Gross Domestic Product (GDP).

    But the IMF’s World Economic Outlook for October, puts Nigeria’s GDP at 415.08 billion dollars, from 493.83 billion dollars in 2015, while South Africa’s GDP was put at 280.36 billion dollars, from 314.73 billion dollars in 2015.

    According to the report, Egypt’s 2016 data is not available, but its 2015 size remained at 330.159 dollars while that of Algeria, one of the largest economies on the continent, is put at 168.318 billion dollars.

    The United States, China and Japan maintain their spots as the largest economies in the world, ahead of Germany, United Kingdom and France.

    According to a review in September, the current economic recession will outlast 2016, with a Gross Domestic Product (GDP) contraction of 1.7 per cent.

    The IMF had predicted that Nigeria’s economy would grow away from a recession in 2017.

    The country last witnessed a recession, for less than a year, in 1991, and experienced a prolonged one that started in 1982 and lasted until 1984.

  • Season of import ban threatens non-oil economy

    Season of import ban threatens non-oil economy

    Barely three months after the European Union (EU) extended its ban on dried beans import from Nigeria by three years, the United States (US) suspended Nigeria’s cocoa. The restrictions have dealt severe blows to Nigeria’s push to boost non-oil export and facilitate economic diversification. Experts, however, blame this on the country’s failure to put in place functional laboratories to certify the products before export. Assistant Editor CHIKODI OKEREOCHA reports.

    Nigeria’s push to stimulate non-oil export and facilitate economic diversification has come under serious threat.

    Reason: Lack of functional laboratories for testing and certifying products before export has ushered a season of import ban on Nigeria’s agro-allied products by the United States (US) and the European Union (EU).

    While the authorities and operators in the non-oil export business were still ruing the EU’s extension of the ban on importation of dried beans from Nigeria by three years, the US added to Nigeria’s woes when it recently banned the importation of Nigeria’s cocoa into its market.

    The EU had in June, last year banned the importation of Nigeria’s dried beans because they contained high level of pesticides which are unhealthy. This came after the Republic of Ireland rejected and returned five containers of beans exported from Nigeria to the country. The products were said to have been received with heaps of weevils. Apparently embarrassed by the development, the relevant government agencies said they were working to get the EU lift the ban. But as it turned out, the European body was not impressed by measures taken by Nigeria to resolve the issue.

    Accordingly, the EU extended the ban by another three years, citing the continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria. “The continued presence of dichlorvos (pesticide) in dried beans imported from Nigeria and maximum residue levels of pesticides shows that compliance with food law requirement as regards pesticide residual cannot be achieved in the short term. The duration of the importation prohibition should therefore be extended for an additional period of three years to allow Nigeria implement the appropriate risk-management measure and provide required guarantees,” the EU said.

    For Nigeria struggling to boost non-oil export and diversify her economy severely battered by crashing oil prices, the extension of the ban was a hit below the belt. However, while Nigeria, which lost its Africa’s largest economy position to South Africa, was still rattled by the extension of the ban, the US added to her woes by banning the importation of Nigeria’s cocoa into its market. The US authorities are said to have taken the action because Nigeria’s cocoa did not satisfy the standard required for exportation into the US. Expectedly, this did not go down well with Nigeria.

    Minister of Labour and Employment Senator Chris Ngige, echoed the country’s frustration over the ban. At the recent concluding session of the Labour and Trade Ministerial Roundtable of the Africa Growth and Opportunity Act (AGOA) at the State Department, Washington D.C, US, he said he was saddened by the development. He, therefore, made a case to the US authorities to reconsider the decision to suspend the exportation of the cash crop from Nigeria to the US.

    Ngige also asked for technical assistance for the production of cocoa that would satisfy the standard required for exportation into the US and European markets.

    But it was not so much the US ban on Nigeria’s cocoa that saddened the minister. Rather, it was the international emphasis on Ghana and Côte d’Ivoire in agriculture throughout the talks with delegates from West African countries. This was why at the AGOA roundtable, Ngige wondered if the cocoa being produced in Nigeria was not the same crop that was exported and exploited to develop the defunct Western Region.

    It was also the same cocoa, according to the minister, that was used by the late Chief Michael Okpara to build vast plantations in the Arochukwu axis of the defunct Eastern Nigeria.

    Sources said the minister was worried by the international attention on Ghana and Côte d’Ivoire because Nigeria had, before the ban, set for herself the target to beat both countries in terms of cocoa exports. Even the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, at a recent meeting with officials of Cocoa Research Institute of Nigeria (CRIN) in Abuja, gleefully announced that the ministry had already developed new cocoa breeds capable of beating the two nations.

    At the meeting, Ogbeh wondered why Nigeria still lagged behind Ghana and Côte d’Ivoire, despite her enormous potential to grow cocoa in 23 states. He emphasised: “Nigeria needs to surpass Ghana and Ivory Coast. Ivory Coast is targeting two million tons now. Ghana is a bit lower than a million. We are battling at 250, 000 tons and Cocoa can grow in at least 23 states.” He gave CRIN the matching order for an intensive implementation plan to ensure that the government achieved the target.

    Where Nigeria got it wrong

    Experts said a vibrant non-oil sector was fundamental to economic diversification, rapid revenue base expansion, sustainable growth and employment generation. They, however, argued that Nigeria put the wrong foot forward when it moved to leverage on the sector to grow the economy without first putting in place functional laboratories for testing and certifying products before export.

    “The government is not serious,” the Founder, Centre for Cocoa Development Initiative, a Non-governmental Organisation (NGO), Mr. Robo Adhuze, fumed, noting for instance, that lack of seriousness by the Federal Produce Inspection Service (FPIS), the agency responsible for checking and certifying agro-allied products leaving the country, was robbing Nigeria of the benefits of a vibrant non-oil export-based economy.

    As Adhuze pointed out, “Quality standards have moved from physical standards to biological standards, but FPIS appears not be up to speed with this reality.” He recalled, for instance, that for about five years, Ghana suffered the same fate as Nigeria’s when over 2, 000 metric tonnes of her cocoa beans were rejected by Japan. Japan’s Chocolate and Cocoa Association of Japan appealed to Ghanaian authorities to take immediate steps to reverse the excessive agro-chemical residues found in cocoa beans exported to the Asian country.

    Adhuze said Ghana, a country famous for its very high quality cocoa beans, rose to the challenge by putting in place appropriate and adequate measures to guarantee the quality of her cocoa products for export. He expressed disappointment that while Ghana’s standards regulatory authorities took steps to reverse the excessive agro-chemical residues found in their cocoa beans, Nigeria was unable to do so. The result, he said, was the harvest of import ban now threatening the non-oil sector, especially in agro-allied products.

    The expert also pointed out that Nigeria’s lack of seriousness is underscored by the fact that despite exporting cocoa for over 100 years, the country has no defined cocoa policy to identify the basic links in the cocoa value chain.

    According to him, there was the need for a policy on cocoa farming with appropriate institutional framework to boost its production through proper identification of all the actors who have stake in the industry, from farmers to processors, marketers and exporters among others.

    Adhuze further said the lack of a clear-cut policy direction was responsible for why a N100 billion Cocoa Sector Development Fund remained a proposal more than two years after the Federal Government announced the initiative aimed at supporting cocoa farmers and processors. He said the government’s inability to walk the talk by translating the proposal into reality constituted a serious setback to Nigeria’s plan to reposition itself to extract immense value from the cocoa industry.

    He also said apart from stalling Nigeria’s hope of reclaiming her position as a global powerhouse in cocoa production and export, the fund’s failure to get off the ground was frustrating efforts at riding on the crest of a vibrant cocoa industry to create jobs.

    In October 2014, the Federal Government through the former Minister of Agriculture and Rural Development, now President, African Development Bank (AfDB), Dr. Akinwunmi Adesina, launched a N100 billion Cocoa Sector Development Fund. He also announced the government’s resolve to establish the Cocoa Development Corporation of Nigeria.

    The minister said the fund was aimed at supporting cocoa farmers by expanding cocoa plantation across the country; supporting the cocoa corporation of Nigeria and cocoa drying and access to micro finance for cocoa production.

    He also said the Cocoa Corporation of Nigeria, which would be private sector driven and public sector financed, would position Nigeria among more robust global economies and improve quality of lives of cocoa processors.

    “The corporation will be independent to grow and win back at least 20 per cent of the global cocoa market by 2020,” Adesina said. However, more than two years down the line, Adhuze lamented that the fund and the corporation remained mere proposals.

    National quality infrastructure to the rescue

    The Standards Organisation of Nigeria (SON) has come out with strategies to stimulate export of agric products by ensuring that they meet international standards and are not rejected by the importing country.

    Its former Acting Director-General, Dr Paul Angya, recently said the agency was developing standards for select priority produce from farm to storage, cutting across soil composition, soil preparation, kind of pesticides to use, seed improvement, harvesting, packaging labelling and storage.

    He said as part of the strategy, SON had developed codes of practice to guide the producers and farmers of the selected products that are of high priority from Nigeria so that Nigeria could deliver safe and affordable agro-allied products to the international community.

    While adding that SON has strengthened capacity for lab testing and certification of agric produce meant for exportation, as it is key that the products do not have issues,  Angya said these products were tested only in the countries of export.

    He said this meant Nigeria does not have control over the results, “because we don’t have much of the facilities for testing in Nigeria. The facilities are what we call quality infrastructure. The testing laboratories are one of the major components of the National Quality Infrastructure (NQI).”

    According to him, there are only two of such laboratories in Nigeria, with SON and National Agency for Food, Drug Administration and Control (NAFDAC) having one each for testing food products. He, however, said SON was developing a large lab complex in Ogba, Lagos, which is over 85 per cent completed.

    He said when completed, Nigeria should be able to test all standards and parametres for food products, so that the facilities would become available and much of the products coming to Nigeria will have access to this testing.

    Association of Systems Management Consultants National President, Mazi Coleman Obasi, expressed optimism that the NQI project being funded by the EU and implemented by the United Nations Industrial Development (UNIDO), with the support of Ministry of Industry, Trade and Investment, would sought out issues around quality that cause the rejection of Nigeria’s export products.

    Obasi, a certified quality management practitioner, said the association was working closely with UNIDO and other relevant government agencies on the NQI project to boost the competitiveness of locally  products at the international market place and ensure the global acceptance of products and services from Nigeria.