The Nation Newspaper

Tag: Economy

  • Economy: Tale of job losses across sectors

    Economy: Tale of job losses across sectors

    With the year almost drawing to a close, the job crisis which began early in the year has now reached a record high with over a million thrown into the already saturated labour market. Bukola Aroloye in this report examines the worrisome situation

    It used to be that people left one job to another. But as things are now, the cyclical movement in the labour market has stopped for some time. People these days are forced to stay put at their place of employment whether they get paid or not.”

    This is exactly how a concerned human resource manager in one of the top oil and gas companies described the sorry unemployment crisis in the country, which according to him, has grown from just a little wound to a festering sore.

     

    Job loss in numbers

    The number of the unemployed increased to 6,063,500, a significant 9.6 per cent from 5,533,600 recorded in first quarter, resulting in an increase in unemployment rate to 8.2 per cent in second quarter from 7.5 per cent in Q1 according to the NBS.

     

    Oil sector

    The Nation can authoritatively report that following the persistent fall in oil prices, the nation’s oil and gas companies have reduced their direct and indirect jobs by about 120,000.

    Confirming this development, the immediate past National Industrial Relations Officer, Petroleum and Natural Gas Senior Staff Association of Nigeria, Hyginus Onuegbu, said the precarious job crisis has hit the oil and gas sector for real.

    According to Onuegbu, who is also the Rivers State Chairman, Trade Union Congress of Nigeria, the dwindling oil prices had affected the expected revenue of oil companies in the country as revealed by their third quarter reports, with some of them declaring losses.

    Onuegbu said: “The sector and the economy have seen unprecedented number of job losses, some 120,000 direct and indirect jobs have been lost in the Nigerian oil and gas sector, as companies and organisations struggle to keep afloat in the midst of pressures from international crude oil price and Nigeria’s inability to make needed reforms, especially the passage of the Petroleum Industry Bill, diversification of the economy and stoppage of crude oil theft.”

    On the global scene, Onuegbu opined that the fall in oil prices had so far claimed more than 200,000 jobs.

    He stated that Schlumberger SLB had retrenched more than 20,000 oilfield service workers just as Halliburton had fired 18,000 workers with Weatherford International cutting 14,000 jobs. Baker Hughes BHI cut 13,000 jobs and Royal Dutch Shell slashed 7,000 jobs.

    While making reference to global reports of job cuts, he said, “The British Broadcasting Corporation reported on September 9, 2015 that the contraction of Britain’s offshore oil sector had already stripped out 65,000 jobs and that the cuts came as operating expenditure on existing assets was slashed.”

    Onuegbu further observed that USA in March 31, 2015 reported that “planned oil industry layoffs in the United States are approaching 100,000 in the past four months, from December 2014 to March 2015, with more likely to come.”

    According to him, the job losses in the sector are worsened by the existing challenges in the industry that has yet to be addressed by the government and other stakeholders.

    The TUC boss highlighted the challenges as unabated pipeline vandalism, illegal crude oil diversion, insecurity and kidnapping in the Niger Delta, leading to significant increase in the cost of doing business.

    Besides, he said the federal government’s inability or refusal to fund the joint venture budgets and expenditure had stalled ongoing oil and gas projects and operations thereby resulting in huge cash call arrears and the delay in the passage of the PIB.

     

    Manufacturing sector

    The federal government’s drive to create jobs for millions of unemployed Nigerians may have suffered a huge setback following the Central Bank of Nigeria’s recent directive excluding some essential raw materials from the list of items valid for the Nigerian Foreign Exchange markets.

    To business analysts, this move, may have led to layoff of over 40, 000 Nigerians who work in the manufacturing sector.

    It will be recalled that the CBN recently excluded some essential raw materials from the list of items valid for forex.

    According to the CBN, the policy is intended to sustain the stability of the foreign exchange market, “resuscitate local manufacturing” and change the structure of the economy.

    Reacting on the looming danger as a result of the policy, president, Lagos Chamber of Commerce and Industry (LCCI), Alhaji Remi Bello, said most manufacturers might be forced to shut down and move their operations to neighbouring countries for business activities due to their inability to access foreign exchange for raw materials and other critical inputs.

    This, he believes, would lead to massive job loss in the manufacturing sector.

    “There is pressure on manufacturers to lay off their workforce before the end of the year. Most manufacturers affected have been unable to produce lately due to lack of foreign exchange, delays in the processing of Form ‘M’ to import raw materials in order to meet demands and this has adversely led to loss of market share. With this continuing, massive job loss is anticipated in no time from now,” he said.

    According to IndexMundi, a data portal, the domestic palm oil produced totalled 930,000 MT in 2014, while the consumption of palm oil in Nigeria amounts to 2.0 million MT per annum in exclusion of the manufacturing sector.

    The official figures states that the shortage in oil palm industry is estimated to be around 1.07 million MT annually.

    This poses a very precarious situation for the manufacturing sector that depends largely on CPO as a major source of raw material. If this shortage is not filled with importation of high quality food grade palm oil, the economy will lose further investment in the manufacturing sector as companies would shut down and subsequently downsize.

    The LCCI president further lamented that for an economy that is largely driven by the private sector, the government should source for alternative means rather than resorting to a total exclusion of certain items from the foreign exchange market.

    He, however, urged the government to prevail on the CBN to review the policy in the interest of the workforce, the private sector and the economy at large.

     

    Printing sector

    President of Chartered Institute of Professional Printers of Nigeria (CIPPON), Alhaji Mohammed Lawal, has said the institute and employers of labour in the printing industry were worried over the negative impact of the harsh economic situation in the country on the industry.

    He said the development had led to job losses in recent times, saying while printing is reputed to be one of the highest employers of labour in Nigeria, printers’ fate is now worsened by lack of patronage by most tiers of government as well as lack of enforcement of laws protecting local printers.

    Lawal told journalists in Lagos that employers of labour in the printing sub-sector need support from all tiers of government in order to encourage investment and grow the business.

    He said the economy of a country cannot be buoyant and stable if employers of labour in the printing industry are not provided with an enabling environment to manage their investment, adding that the inability to enforce the provisions of the law will also make the environment not conducive for investment.

    “Nigeria could be industrialised through printing if government strictly complies with the provisions of the law on patronage to local printers,” he said.

     

    Damning statistics

    The country’s labour market has taken a major hit with worsening unemployment recorded in the second quarter of 2015 just as about 1, 317,700 Nigerians lost their jobs within the period.

    Amidst this development, National Bureau of Statistics (NBS), in its latest labour market report, said economically active population or working age population (persons within ages 15-64) increased to 103.5 million in Q2, 2015 from 102.8 million in Q1.

    According to NBS, the drop in the number of full employment (those working less than 40 hours per week) despite a rise in the labour force can be attributed more to job losses or previously fully employed persons choosing or being forced to work part-time or in underemployment.

    The NBS report also indicated that unemployment and underemployment was higher for women than men in Q2 2015.

    While 9.6 per cent of women in the labour force (those between 15-65 willing, able and actively working or searching for work) were unemployed in Q2 2015, another 21.6 per cent of them in the labour force were underemployed during the period under review.

    The Bureau explained that the economically active population or working age, comprising persons within the age range of 15 to 64, increased to 103.5 million in the second quarter (Q2), up from 102.8 million in the first quarter.

    This was as it disclosed that the labour force population, comprising those within the working age, who are willing, able and actively looking for work, increased to 74.0 million in Q2 from 73.4 million in Q1, indicating an increase in the labour force by 0.81 per cent.

    According to the highlights of the NBS Unemployment and Underemployment Watch for first quarter of this year, there were a total of 17.7 million people between ages 15 and 65 either unemployed or underemployed in the labour force in Q1 2015.

    The report further stated that: “The fact that the number of people that became unemployed (861,110 people) in the first quarter 2015 exceed the number of people that entered the labour force within the same period (504,596 persons) is an indication that some persons previously working in full employment lost their jobs while others previously underemployed and doing temporary, or part time work ended whatever they were doing and accordingly now didn’t have anything to do for at least 20 hours a week during the reference period.”

    However, it noted that unemployment and underemployment was more pronounced in women than their male counterpart in Q1 2015.

    As Nigerians groan under the weight of unemployment it is hoped that the newly constituted Ministry of Labour and Employment headed by Dr. Chris Ngige will do everything humanly possible to mitigate the unemployment crisis.

  • ‘Money laundering, terrorism hurt economy’

    The Director-General,   West African  Institute for Financial and Economic Management (WAIFEM), Prof. Akpan Ekpo, has said money laundering and terrorism damage the political  and socio-economic life of Nigeria.

    He spoke at the 20th anniversary of DataPro, which held in Lagos. According to him, the processes, inter-connectedness and the mechanisms for laundering stolen money are so complex and complicated that  fighting against them requires committed political sagacity.

    “The perpetrators of  money laundering are sometimes those in political power or have access to  political power, thus making efforts at anti- money laundering to  be rudimentary,” he said.

    He added: “It is crucial to build capacity continuously to combat money laundering and its derivatives. It is in this aspect that DataPro and its team have excelled themselves. Men and women responsible for curtailing money laundering must be trained to identify an activity that  looks genuine on the surface, but on further analysis, may have the features of money laundering.”

    The guest speaker and Group Managing Director of Access Bank Plc, Herbert Wigwe, said: “To make any positive impact on the fight against money  laundering and  terrorist financing, there must be global commitment by all  government and  relevant institutions saddled with the responsibility for  pursuit of the  objectives.

    Founder of DataPro, Abimbola Adeseyoju, thanked the guests for their contributions during the discussions, adding: “Today, DataPro is entering another phase in its  development; the age  of maturity. We have resolved more than ever to invest in sustainable practices instead of looking for shortcuts and short term gains. We will remain committed to meeting and exceeding the expectations of   our stakeholders.”

  • Modern abattoir: Oyo set to boost health, economy

    Modern abattoir: Oyo set to boost health, economy

    After years of construction and perfecting administrative procedures, the Oyo State Government is set to inaugurate a multi-billion naira abattoir, which is the largest in Nigeria. BISI OLADELE writes that the project, will bring about world-class meat  processing standard and transform the city’s economy.

    Along Ibadan-Oyo Expressway in Akinyele Local Government Area of Oyo State is the sprawling Ibadan Central Abattoir. It holds the key to hygienically produced meat, job opportunities, revenue generation for the government as well as protection of public interest.

    In its resolve to build a model abattoir that meets the standard set by the World Health Organisation (WHO), the government spent N4 billion on the project which sits on a 10-hectare land. Construction of the state-of-the-art abattoir lasted for about one year.

    The abattoir  is, perhaps, the largest in West Africa.

    By the time Governor Abiola Ajimobi inaugurates the project for operation by the end of the year, meat processing will  have stepped up to the standard of the World Health Organisation (WHO). No fewer than 200 traders, including meat retailers and those trading in ancillary products and services, are expected to be  employed. More traders will also access shops at the market complex and the in-built motor park; thereby injecting life into the small community.

    With a police station, clinic, commercial bank and other social services incorporated in the abattoir complex, Ajimobi’s name will go down in the history of Oyo State as a governor whose tenure witnessed massive economic rebound and urban renewal. When fully operational, the abattoir will create an economic cluster and mini-town with potential for growth and development based in meat and allied products from the slaughtering and processing centre.

    The project

    The Ibadan Central Abattoir is a Private-Public-Partnership (PPP) project undertaken by C & E Limited, a local construction company that specialises in PPP ventures. The abattoir project was conceived and initiated in 2009 during the tenure of former governor, Adebayo Alao-Akala. It was conceived as a Build-Operate-Transfer (BOT) project for 30 years.

    His successor, Abiola Ajimobi, continued with the arrangement though with a minor amendment in the shareholding and tenure structure. Currently, the tenure stands at 25 years with the government earning 30 per cent of the abattoir’s total annual revenue.

    The abattoir offers both modern and traditional slaughtering methods, rapid turn-around time and excellent hygienic conditions as against the current informal structure that leaves room for unhygienic slaughtering and meat distribution processes.

    The project has the capacity for 1,000 heads of animals (cow, sheep/goats and pigs) per day and is expandable to 5,000 heads per day with excellent ancillary facilities.

    Manual slaughter slabs

    The abattoir has two manual slaughter slabs with average area of 1500 m2 each and well furnished to accommodate over 200 butchers slaughtering cows, pigs, goats and sheep simultaneously.

    Mechanical slaughter slab

    The abattoir boasts of the mechanical slaughter slab, which is in use in all developed countries. It has the capacity to slaughter 500 cows per day, which is expandable to 2,000 per day.

    Lairage

    The lairage comprises the Veterinary Doctors’ Office, Health Officers’ Office, Modern Laboratory and three concrete-paved holding pens for animals before slaughtering. The holding pens are approximately 12, 000 m2 in size. Arrangement for offices for veterinary doctors and health officers makes the environment conducive to the discharge of their duties. Since animals are brought into the abattoir in large quantity, the doctors and health officers will find it more convenient to offer services in a centralised place; thereby ensuring that all animals pass health test before they are slaughtered and passed on to the public for consumption. Their services will also be enhanced with the provision of the modern laboratory.

    The holding pens offer a comfortable place for the animals to stay for a minimum of 24 hours before they are slaughtered. This enables the animals to be stable after a long journey from the northern part of the country before they are slaughtered. The pen for the cattle is different from the sheep’s and pigs’.

    Security and storage

    The abattoir has two large cold rooms with 24-hour electricity supply and a modern red brick incinerator. It also has three gate houses and a police station for security purposes.

    Administration/hospitality

    Within the large complex is an administrative block, which comprises offices for members of staff of the firm and related workers. The block also houses Butchers Cooperative Building, a commercial bank, a canteen and a clinic to cater for ailing butchers, staff and customers.

    Market and shops 

    There are currently 224 shops for grabs by meat sellers and other traders in the abattoir.

    External services

    IMG_1402The abattoir contains five conveniences, good road network with asphaltic pavement and concrete drains as well as external electrification, including solar-powered street lights.

    As part of the agreement reached by the government and the firm, all other abattoirs in the 11 local government areas in Ibadan are to move to the central abattoir to ensure slaughtering of animals in a hygienic manner. The idea is to guarantee standardisation of the meat being processed in the city for the health of consumers.

    Other smaller informal abattoirs in the city have already been declared illegal by the government; with the expectation that butchers will move to the central abattoir to begin operation before the end of the year.

    Representatives of government and the firm have held series of meeting with the butchers’ association in a bid to educate them on the importance and gains of the central abattoir to their businesses and the health of members of the public. The association, in a December 10, 2014 letter to Ajimobi, also expressed their preparedness to move to the new abattoir.

    Government has also written to all other abattoirs in the city to move to the modern abattoir for further activities.

    When the government finally enforces the order by December, activities in the central abattoir will be in full swing, bringing fulfilment to all stakeholders, including residents in the community.

    It is estimated that the project will generate about 2,000 jobs with coordinated revenue to the government and protection of the health of the public.

    Much more than the government and members of the public, veterinary doctors practising in the state are very excited at the project.

    Speaking about the abattoir, the Chairman of the Oyo State branch of the Association of Veterinary Doctors, Dr Musbau Ibrahim, said the association would be the happiest to witness its inauguration.

    According to him, the association had been in the forefront of agitation for a modern abattoir, given the dangers inherent in informal abattoirs which he described as unfit.

    Dr Ibrahim said a modern abattoir is central to the health of the public, given the fact that Nigerians consume much meat.

    He explained that the new project will ensure that all necessary ante-mortem and post-mortem tests are conducted on all the animals before they are passed onto the public for consumption.

    He added that the central abattoir would also ensure the welfare of animals; from where they are purchased to where they are slaughtered.

    “The animals are properly checked to ensure wholesome meat is delivered to the populace, thereby reducing diseases such as tuberculosis, brucellosis and anthrax that could be contracted from eating meat,” he said.

    The veterinarian also expressed hope that meat can be exported from the abattoir if properly managed, adding that it will also help the disease reporting system in the country.

    He added: “We have met with butchers to educate them on the need to run a proper abattoir.”

    He said the association was willing to partner with the government on the project for the health of the public.

  • How Buhari can rekindle economy

    How Buhari can rekindle economy

    The best way to revamp Nigeria’s dwindling fortunes is to tinker with the current policies, Dr Akinola Adebosin, an economic consultant with the Nigerian Indigenous Economic Development Alliance (NIEDA) has said.

    In the view of Adebosin, a number of policy initiatives of the federal government are partly responsible for the parlous state of the economy.

    Citing the issue of the forex restriction, through the Central Bank of Nigeria hopes to stabilise the forex market, Adebosin said the policy has had adverse effect on the economy.

    “As Nigeria seeks to regain her status as a sub-regional economic power bloc, the current visionary leadership that has taken over the mantle of the country should be made to realise the insidious impact the new policy is having on the economy,” he said.

    Continuing, he said: “The policy itself appears to be a mismatch. For instance, instead of those who bring their US dollars to their ordinary domiciliary accounts who can sell their US dollars at transfer market (Currently its 237.00naira/usd), exporters are forced to sell their inflows with official market which is 199.00Naira/USD.”

    Exporters, he stressed, “should be the one who can sell their inflows in the free market. This is the standard practice in most economies that have blossomed. The basic reason is that their inflows are for the products that they sold based on genuine transactions.  The source of others inflows are unknown. If they want to keep record and block money laundering the CBN must make it difficult to use inflows without eligible transactions. Again, there is the issue that genuine exporters are making their transaction while adhering to the letter of the law.”

    The CBN, he insisted, “Should realise that in the event problems are faced in terms of quality, genuine exporters are covered by government appointed inspection agencies that issue reports attesting that the goods have been inspected and passed as exportable quality. The main function of export companies is to export local commodities to global destinations. The current policy is forcing exporters to look for import avenues in order to utilise their inflows so as to reduce their losses.”

    “From all indications, it is clear that this policy is undermining genuine exporters and severely bruised their business while it encourages illegal exportation and money laundering. The policy has further promoted undeclared exports from Nigeria. Undesired elements are bringing in their funds in cash into the country and selling them at the parallel market rate. In doing so, they gain the upper hand in terms of difference in currency rates  and proceed in exporting their goods without the required procedures. This proves cost effective for them, and leaves the country facing huge losses in terms of revenue that can be generated from legal exports.”

  • ‘Nigeria needs to take urgent steps to avoid being a depressed economy’

    ‘Nigeria needs to take urgent steps to avoid being a depressed economy’

    Mazi Okechukwu Unegbu is Chairman/Chief Executive, Maxifund Investment Plc and former President of the Chartered Institute of Bankers of Nigeria (CIBN). In this interview with Ibrahim Apekhade Yusuf he speaks on a wide range of economic issues. Excerpts:

    Investors’ Protection Fund was meant to assist investors in the capital market to get over their losses. But there are claims that many investors, especially retail investors have been shortchanged by the managers of the fund. How would you react to this?

    I think it’s a wrong conception. The Investors’ Protection Fund as the name implies means that it will protect investors who have lost soothing in the market through the activities of some stockbrokers in the market.

    Of course, you know that the Chairman of that body, Gamaliel Onosode, just died, God bless his soul. It does mean that the stockbrokers are doing their job well by not cheating investors. If you keep paying that money out every day, what you’re saying is that this stock broking community are all doing things wrong. But because nobody is accessing it , it is not a fund that should be dashed out. It is a fund that should protect you and me should we fall victim of lapses by stockbroking firm or any other type of devastation of investment fund.

    But because of the zero-tolerance both by the Security and Exchange Commission and the Nigeria Stock Exchange and other stakeholders, self-regulating organisations such as the Chartered Institute of Stockbrokers and the Association of Stockbroking Houses, coming together and now saying we cannot tolerate a situation where people are being robbed of their funds, that’s why you cannot just dash it out.

    But for the very few that has happen, all those who were involved had been compensated by the Fund. That Fund is earning income so it is for the interest of those who are there and should any stockbroking firm I believe is exiting the market, those who are exiting now may even  apply to access that Fund because if they didn’t have any infraction they committed against any investors. So, it’s not a Fund that is a Father Christmas kind of thing. Certainly not.

    But the complaint by retail investors is that they’re being shortchanged and the NSE hasn’t really made public names of those who have benefitted from the Fund.

    I know quite a few that have benefitted but I can’t remember their names now, particularly for those stockbroking firms that have been out of the market. In fact, if you know any of them that say they are involved and you bring them to us, I personally will follow up and ensure that they are compensated at the end.

    Investor apathy in the capital market has remained. Do you think the situation can change anytime soon?

    I addressed the same issue you raised now few days ago at a live programme on TV. I did say that yes in the second quarter of 2015, the Gross Domestic Product was 2.57%, whereas at the first quarter, it was 4.2%, which means there is a decline. Remember, it was 7% before and later 6.5% and now 2.57%, which means we’re in a recession. But the CBNN governor said it may be in 2016. He was just been modest as far as I’m concerned. In actual fact, we’re in a recession. Economic recession means economic suffering. Nigeria currently is facing economic doldrums. What we have to do is to avoid a situation where Nigeria becomes a very highly depressed economy.

    Thankfully, the government itself is determined to fight corruption, which is good. Fighting insecurity, also good, but it is yet to come out with an economic blueprint and it is difficult for you and me or for any economist to forecast the issue of recession. It is like saying that somebody is going to die in the next minute. It is not possible. But you also know that it is also even a problem when the IMF is calling for Nigeria to even devalue its currency. That is even a crazy idea altogether.

    For me, I don’t like them (IMF) because as far as I’m concerned, they do not the right thing to help an economy. How can you call for a devaluation in a country that is facing depression, whose currency has already being devalued for about 8 %, a country that has only one product that is internationally traded.

    The idea of devaluation is for you to have more export, so import would be very expensive. But the question is what export do we have apart from oil? So it is an issue.

    You do not have to get into that mess up the place. That is what is happening. The Emir of Kano, Lamido Sanusi called for devaluation of the naira. And I don’t agree with him. I don’t think we should devalue. There is no justification for that whatsoever.

    We have to start now to work on how best to diversify the economy because the economy has been in a mess for the past 20 years. Curiously, nobody was looking at it because we were getting oil money and nobody talked about diversifying. So we’re going to do a lot of work and I believe we can make it so long as we have sincerity of purpose.

    The issue of forex restriction has been hotly debated as one policy that has more negatives than positives. Do you share such sentiments?

    I completely agree. Forex restriction for certain goods is okay. But what they should do is if you allow your currency freedom, what do you have to back it up? For some goods, ryes, we support that but for some others, particularly those that help us increase capacity utilization in the industry, for those areas you don’t restrict them so much so that you ca be able to have something to do. Last week, the lawmakers declared a state of emergency in the labour market because certain restrictions have been targeted at some companies. You don’t need to do that. All those things we can produce here, yes, you can restrict their importation but those ones we cannot produce, particularly industrial raw materials, industrial spare parts and all that, you don’t need to restrict forex to them. You must be able to allow them access to money sufficient for them to produce. But as for making it an open thing, it is not the right thing for the economy.

    The policy was meant to fix the battered foreign reserves. However, some items in the lists have no business being there because they are raw materials.

    I have nothing against the policy, but the CBN must be cautious not to drive manufacturers to the parallel market. I expect the regulator to be one step ahead of the stakeholders.

    The CBN should always consider the unintended consequences of its actions and must set a band which the naira must not exceed.

    In your opinion, what quick wins can the government achieve within the shortest possible time?

    For me, one of the quickest things the government can do is to see how they can improve on employment. Even if it means getting all these young boys and girls out into the streets for some of them to be removing dirt from the gutter and putting it back and pay them the minimum wage, that’s okay. That can be done because all the money we’re wasting can be ploughed into that.

    It’s so unfortunate that most of the governors are not thinking, they’re just waiting for the money from Abuja, they’re not thinking. The moment you start doing that then you know you’re going to get more taxes coming in and you’re going to get most of us all working and once we’re working, things will start going on.

    So, first and foremost, get these young boys working, diversify the economy by pushing all of them into agriculture. It can be done. In fact, in the blueprint I designed when I wanted to run for office as the governor of Imo State, there we didn’t put anything about waiting for Abuja allocation. We had a marshal plan on how we are going to raise money in the system and we submitted it to our government that look you don’t need to start going to Abuja all the time.

    There are few things you can do to get the economy back on track. Nobody is doing it, we’re all just politicking without thinking of economising, trying to make sure that the economy moves.

    That is why I’m happy with Tunde Fowler is doing in Abuja. There are certain things that he has started doing that are in the right direction. The moment you and I are captured in the tax net, the economy can start moving.

    Also we have no data. We have the Bank Verification Number (BVN), drivers’ license, the National ID and all that. If you have all these data all over the place, you’re creating problems. I believe that if you have registered with the National ID, and all other things get into it, you find that you’re even making money and clearly identifying people knowing that once they punch your name anywhere, every detail about you will come up. And these are what some of these young boys who studied computer science or software engineers can do for Nigeria. But unfortunately, nobody is thinking about that.

    The question I have asked a few times is why do you have to quadruplicate data for one person? It doesn’t make sense to me. That makes it easy for what you cal identity theft to thrive. That is why most people are against the BVN.

    The government must get the country working again. The local government areas are idle, they’re not doing nothing just because the state government decides to emasculate them. I think they should be made to work. Once the councils and villages start working, most of us would be persuaded to go back to the rural areas. But sadly, nobody is thinking about that because they’re all waiting for the money from Abuja.

  • Why we must diversify the economy

    SIR: The need for diversification of the nation’s economy has never been more imperative than now, especially with the dwindling oil prices in the international market. Unless urgent steps are taken to diversify the nation’s economy, there is a great economic danger ahead of us.

    Just about few months ago, many state governments were unable to pay workers salaries and meet other recurrent expenditure due to a sharp fall in oil revenue. A situation where states had to borrow to pay salaries is the worst case scenario of how bad an economy can be.

    As a way of preventing the re-occurrence of the embarrassing situation above, I propose the following ways through which the country’s economy can be diversified.

    Agriculture if given the needed attention is capable of creating about 70 per cent of jobs for the unemployed youth. Agriculture being a sector that requires a large labour force can help create employment for the large unemployed able-bodied men and women in the country.

    Government partnership with private investors in agriculture which stands at about N1.23 billion now can grow four-fold to N4.9 billion between this year and 2019 if President Muhammadu Buhari’s policies do not threaten the investments already in the sector. Many foreign and local investors will invest more in this sector of the economy if the policies are right.

    The entertainment sector is also a very viable sector for diversification of our mono-economy. The Nollywood for instance employs a large chunk of unemployed Nigerians and also generates significant revenue for the government. Therefore, to fully utilize the potentials of this sector, there is need for government support through creation of the necessary enabling environment for the industry and players in the industry to thrive. The government must make and enforce laws to eradicate or reduce high level of piracy in this sector. This will help maximize the benefits in this sector to the country vis-à-vis our Gross Domestic Product (GDP).

    The manufacturing sector is another very important sector that can rake in a lot of revenue for the government and provide jobs for the teeming unemployed youths in the country. Instead of depending on oil whose price is not determined by the country but the international market, it will be better we look inward into the manufacturing sector to fully maximize the benefits of that sector of our economy. There are however several challenges confronting this important sector of the economy ranging from multiple charges by government agencies to sourcing for foreign exchange.

    Granting tax holidays and waivers to infant industries and provision of good roads network, electricity, healthcare facilities etc will help boost this sector and grow the nation’s economy.

    According to the United Nations World Tourism Organization (UNWTO), “tourism is one of the fastest growing economic sectors in the world.” In 2013, International Tourism generated $1.4 trillion in export earnings. The total tourism receipt in Africa for the year is estimated at $34 billion. A World Bank report shows that Africa’s tourism could create 3.8 million jobs. In 2012, tourism contributed three per cent to Nigeria’s GDPand 2.8 per cent of total employment.

    Nigeria has what it takes to succeed if it makes intentional efforts to prepare the tourism sector to generate more earnings and create more jobs. The tourism industry at present generates annual revenue of about N80 billion. The Nigerian Tourism Development Corporation (NTDC) needs to do more to develop the tourism sector.

    The less we depend on oil, the better for us as a nation. A situation where about 90 per cent of the country’s revenue comes from the oil portends great danger for the economy. The diversification option offers a way out.

     

    • Umoru Abdulkadir Ileonikhena

    Iju-Ishaga, Lagos.

  • ‘How to save economy’

    Devaluation of the naira cannot save the economy, the President Chartered Institute of Commerce of Nigeria, Dr. Adewale Olusoji has said.

    Only a focus on the manufacturing and textiles sectors can do the magic, he said.

    Olusoji said it was important for the government to consider the development of the non-oil sector.

    Speaking in Abuja, he said aside from the  agric sector that seems to have attracted slight attention, other sectors such as mining, commerce should also be given support.

    The president, who emphasised on the significance of reliable power, said consistent power failure has been a major obstacle to developing the economy, especially the manufacturing sector.

    However, he urged the manufacturers to take advantage of alternative power source rather than completely depend on the primary power source.

    “Manufacturing sector and industries cannot survive not to talk of growing when power remains an issue. A whole lots of businesses die within their first year,” he added.

    Olusoji pledged the support of the institute in terms of capacity building to complement Federal Government’s efforts at resuscitating the economy.

  • Buhari: PDP govt ruined economy for personal gain

    Buhari: PDP govt ruined economy for personal gain

    Opposition accuses President of ‘demarketing’ Nigeria

    President Muhammadu Buhari yesterday knocked the immediate past President Goodluck Jonathan-led Peoples Democratic Party (PDP) administration for wrecking the economy for “personal gain”.

    He repudiated the party’s claim that he is “demarketing” Nigeria with his public speeches on corruption by former public officials, saying he won’t lie to cover up the truth.

    “Nigerians will hear only the truth on the economy and the state of the nation from President Muhammadu Buhari”, the Presidency said last night.

    It alleged that the Jonathan-led PDP government lied to Nigerians on the state of the economy which was found to be in dire straits contrary to that government’s claims.

    “President Buhari will remain true to the virtues of honesty, integrity, sincerity, incorruptibility and plain-speaking which endeared him to Nigerians and made them prefer his leadership to that of a lying and deceptive PDP administration.

    “The President will not, in the guise of ‘marketing’ the country, refrain from telling Nigerians and the world, the emerging truths about the abject state in which years of plundering by a PDP leadership has left the Nigerian treasury and economy.

    “President Buhari will not in the name of ‘marketing’ or ‘attracting’ investors, follow in the footsteps of the ousted PDP Administration and its discredited officials who shamelessly lied to Nigerians and the world about the buoyancy and vibrancy of an economy they had bled dry for personal gain, when it was very obvious to the discerning, that the Nigerian economy was headed for serious trouble,” Presidential Spokesman Femi Adesina, said in a statement.

    The Presidency condemned PDP spokesman Olisa Metuh’s statement that the President has been “demarketing Nigeria “with his public stance on corruption.

    “We restate for the umpteenth time to Mr. Metuh and his ilk that their attempts to distract President Buhari from the job he has been elected to do will fail,” the Presidency said, adding: “It is  most unfortunate that instead of showing some remorsefulness for the harm done to the nation by his party, and giving genuine support for President Buhari’s efforts to salvage and revamp the national economy, Mr. Metuh persisted in a vain attempt to remain relevant on the national stage by unjustly denigrating the President who continued to strive with all his might to alleviate and reverse the harm done to the nation by PDP misrule and corruption.”

    Mr. Metuh’s antics, the statement said, were futile.

    “President Buhari cannot be distracted by a broken record. If the PDP spokesman ever has serious matters to bring to our attention, we will be prepared to listen,” it stated

    In his party’s statement Metuh claimed that recent statements on the state of the economy credited to President Buhari were capable of harming Nigeria’s image.

    PDP observed that instead of making efforts to harness resources and grow the economy, Buhari has continued to scare away investors.

    According to the opposition, the President has continued to apply himself perhaps unwittingly, to demarketing the nation through negative labelling of Nigerians and unwarranted unhealthy portrayal of the economy.

    The party added that the President’s “unwary statements” have become very serious clogs in the wheel of progress, eroding the confidence of both domestic and international investors in Nigeria’s socio-economic system.

    The statement reads: “It is worrisome that in the last six months, the President, instead of making efforts to harness resources and grow the economy, has rather continued to apply himself, perhaps unwittingly, to demarketing the nation and scaring away investors through negative labeling of Nigerians and unwarranted unhealthy portrayal of the nation’s economy.

    “In the last six months, our President has only succeeded in discouraging foreign investors with his continued misrepresentation of our country as a business unfriendly environment, where most of the citizens are basically corrupt, dishonest, and cannot be trusted.

    “Whereas we have restated our total support for the war against corruption, we insist that Mr. President’s unceasing blanket negative labelling of citizens, in a country where millions of honest and hardworking individuals/firms are genuinely contributing daily to the development effort, is indeed a disservice and injurious to the nation and the people.

    “Furthermore, Mr. President’s recent announcement to the world that the nation, with its abundant human and natural resources, is broke and cannot pay cabinet ministers not only sends a discouraging signal to the domestic and international business community, but also exposes the ineptitude of the present administration to meaningfully and sincerely exert itself and work with industrious and innovative investors to create and manage wealth.

    “We ask; how can any reasonable investor still have the confidence to invest in a country where the President himself continues to alert that his country reeks of corrupt people and that the government is broke to the extent it cannot pay cabinet ministers?

    “Is the President not directly advising investors against having confidence in Nigeria and the system, and that they risk not being paid for jobs awarded by government at any level?”

  • ‘Lull in economy ‘ll end second quarter 2016’

    The Managing Director, Nesbet Consulting, a Lagos-based firm of financial and management consultants, Dr. Alaba Olusemore, has projected that current lull in the economy may end by second quarter of next year.

    Olusemore who is a fellow, Chartered Institute of Bankers of Nigeria (CIBN), said Nigerians, may not breathe a sigh of relief until the second quarter of next year when would-be-ministers currently undergoing screening by the National Assembly would have settled down for business after being assigned portfolios.

    According to him, the ministers are not likely to get their arts together and provide policy direction for the economy anytime this year, even after their confirmation and swearing-in, adding that this year only has less than three months to end. “We may not see any major improvement in the economy before the end of this year. The second quarter of 2016 is more to it,” Olusemore projected.

    He however said between now and second quarter of next year, the economy would hopefully start taking shape, adding that there is need for President Muhammadu Buhari to aggressively pursue policies that will end Nigeria’s over-dependence on proceeds from oil.

    “The monolithic nature of the economy is unsustainable. We must immediately begin to initiate and sustain policies directed at economic diversification,” he said, stressing that there has to be a strategic refocusing on the manufacturing and agriculture sectors which have the potential to create jobs.

    He also identified Small and Medium Enterprises (SMEs) as another area with lots of promises of turning around the fortunes of the economy.

    “Government must encourage SMEs to succeed. SME operators should be supported; they must have access to funds and services of consultants and mentors. Consultants should assist them develop bankable business plans and proposals,” he said.

  • Jimoh Ibrahim: world economy to remain comatose

    Jimoh Ibrahim: world economy to remain comatose

    The world economy will continue to experience difficulties for the next 10 years, the Group Managing Director of Energy Group, Jimoh Ibrahim, gave this position yesterday.

    He said there was hardly anything any one could do on the economy at the moment other than to keep things together and avoid the extension of the recovery period.

    Ibrahim explained that the world economy was growing at seven per cent in 2007 and it slides to about three per cent since 2008.

    “By flow of average, the global economy has been osculating in the last seven years recording a growth of three per cent,” he said.

    “Even if the global economy is going to grow at seven per cent next year, it is not possible to enjoy drastic economic boom until we make up for the deficits of the last seven years. If you calculate that and using the probability on the Monte Carlo stimulation exercise, a 10 year bet is imperative if we have good governance and do things right,” Ibrahim added.

    He advised the Federal Government to be in “congruent reality with basic principle and relax the regulations regime if the fight against corruption will ever have any meaning”.

    Many regulations, Ibrahim warned, make government officials feed fat on corruption, cautioning that those who intend to keep business in the country do more public relations to stay on.

    “The cost of such public relations is now unavoidable by the private sector,” he said.

    The Energy Group boss added: “There are signs of recovery but our concern too is in the fact that there are dangerous conflicting signs and that is why it has become not immediately possible for the Federal Reserve Bank and the Bank of England to increase the interest rate.

    “The price of oil will move up soon as we approach the weather situation and geomorphology conditions will assist Nigeria in getting better price for her oil.” Ibrahim advised the President Muhammadu Buhari administration to take advantage of the incoming increase in the price of oil to prioritise government projects and use the pilot approach in delivering its promise to Nigerians.

    He urged the National Assembly to come up with ways and constitutional means of monitoring Federal Allocation to the state by way of revisiting the nation’s fiscal policies.

    Ibrahim called on Nigerians to give Buhari a little more time in the face of the global economic trends.