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Tag: Economy

  • ‘N28.7tr budget creates positive outlook for businesses, economy’

    ‘N28.7tr budget creates positive outlook for businesses, economy’

    The signing of N28.7 trillion 2024 Appropriation Bill into law by President Bola Tinubu started the year on a strong footing, with positive prospects for businesses and economy, Chief Executive Officer, FirstBank Group, Dr. Adesola Adeduntan, has said.

     He spoke at the weekend during the Nigeria Economic Outlook 2024 forum, themed ‘Current Realities and Prospects’.

     According to Adeduntan, the N9.9 trillion capital expenditure in the budget makes it more interesting and, by implication, there will be significant spending that is planned to create enough stimulus within the economy.

     Adeduntan noted that the spending plan would allow significant and serious business players  tap into the growth and aspiration of the government.

     He said: “For us as Nigerians, the year has started on a very strong footing with President Tinubu signing the 2024 appropriation bill into law, with a record proposed spending of N28.7 trillion, which is the highest in the history of the country, in nominal terms.

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     “The 2023 is history, but when you look and roll forward, you will understand that if we do not quickly understand the direction of travel, as it relates to government policies and priorities, and how the private sector will use it to grow their businesses, we will miss an opportunity. History tends to be kinder to people who win, than those who can eloquently explain why they failed.”

     The bank chief added ‘looking at the size of the Nigerian economy, and the budget which assumed a growth of 3.76 per cent, the growth is significant and should be tapped by serous business players’’.

     Adeduntan also said FirstBank has supported businesses over different economic cycles, and will continue to do so within the current cycle.

     “We will continue to play that pivotal role to aid customers’ businesses and ensure they take full benefits of their opportunities within the economy. We remain very committed to supporting customers’ businesses and are excited by the opportunity the economy offers,” he added.

    Also speaking, Founder and Chief Consultant, B. Adedipe Associates Limited, Dr. ‘Biodun Adedipe, said the 2024 budget has a positive projects, as seen that a growing part of the budget targeted at capital expenditure.

    He said: “Budget is tilting towards capital expenditure, which is very good. Even the budget increase shored up capital expenditure”.

    He said the global economy is interconnected as what happens in one economy affects the other.

    He said that that $1.2 billion monthly import bill for Nigeria, will continue to affect the naira, calling for expanded manufacturing and production bases for the economy.

    Adedipe said there was need to focus on export and the Nigerian economy is diversified and there are business opportunities in every of the 19 sectors of the economy from agriculture, education, housing, among others.

    He said Nigeria has applied the typical International Monetary Fund (IMF) recipe of eliminating premium by devaluation of the domestic currency, a practice he said, won’t solve the underlying structural problems. “The enduring solution is expansive domestic manufacturing and relentless, deliberate and focused export drive,” Adedipe said.

    Adedipe called for deliberate promotion of export to earn more forex, adding that the economy is likely to grow at about 3.47 per cent and businesses should take advantage of the growth prospects to expand their businesses.

    On his part, Executive Director, Corporate Banking at FirstBank, Tosin Adewuyi, said the bank is taking strategic steps to ensure that Nigeria expands its export base through support for businesses.

    He said the bank has set up dedicated export desk, and is willing to act as trusted business adviser to its customers.

    “Again, it is really about advice and the support and non oil exports has been interesting for us over the last couple of years,” he said.

    Special Adviser to the President on Presidential Enabling Business Environment Council (PEBEC) and Investment, Jumoke Oduwole, spoke on how the government is supporting businesses to grow through the promotion of ease of doing business initiative, among other speakers.

  • Hope rising for commanding heights of economy

    Hope rising for commanding heights of economy

    A cross-section of experts in diverse areas of expertise have expressed optimism on the positive economic outlook in the incoming year, reports IBRAHIM APEKHADE YUSUF.
    For many Nigerians, 2023, had a measure of the sweet and sour, the good, the bad and the ugly as most people suffered from serious economic crunch, especially with the removal of petroleum subsidy, naira redesign and refloating, inflation, amongst other unpalatable choices they are not willing to admit at all. But 2024 promises to be a lot better if key economic indicators are anything to go by, according to financial and economic experts.

    How bank will drive growth in 2024

    One sector that holds a lot of promises in the new year is the banking subsector. In the view of Olumide Sole, a Sub-Saharan Banking Research Analyst at Vetiva Capital Management, core banking will drive growth next year.

    Speaking in a monitored television magazine programme on Arise TV, recently, he observed that the majority of coverage banks such as Zenith, GTCO, and UBA recorded a massive jump in their ends majorly driven by Forex evaluation gains in 2023.

    Speaking on the cost of funds, Sole stated that as interest rate rises, the cost of funds also rises. He said, “As interest rates rise, banks also have to pay more interest rates for their customers’ deposits.”

    He also added that the Standing Deposit Facility which the Central Bank of Nigeria removed the two billion limit which banks can deposit daily.

    He said this now gives banks ample opportunity for more earning potential for their revenue or core banking income to grow better. “Banks can now earn more as they can deposit all excess liquidity via the window.”

    Speaking on stocks, Sole added that Access is now the largest bank as per asset size and it is expected to keep growing. Concerning First Bank of Nigeria, he claimed that the recent creation of more shares will help in the bank’s expansion.

    He spoke on other banks like the FCMB Group which just completed its additional tier one capital issuance which is expected to position the bank to give out more loans and expand the banking operations in general.

    “Fidelity Bank recorded the largest expansion net in the first margin. Fidelity Bank’s acquisition of Union Bank UK will also improve the earnings of the bank while GTCO has one of the highest payout ratios and this is expected to play out even until next year.

    He however stated that the dividend payout for Stanbic was N1.5, the same as last year and this might not be in line with the expectations of the investors. He added that Stanbic Bank launched a fintech subsidiary recently.

    “UBA recorded impressive performance this year, with one of the largest recorded non-interest margins, we expect this to support the banks’ performance into 2024.

    “Zenith Bank has about 40% dividend payout on average, a very impressive one for investors, so expect this to continue to support the banks’ performance in the stock market even to 2024,” he said.

    Inflation to drop, naira to appreciate in 2024

    In what may be a sigh of relief, Bismarck Rewane, chief executive officer (CEO) of Financial Derivatives, has assured that the country’s exchange rate is expected to appreciate as inflation drops in 2024.

    Speaking at the recently held Parthian Partners 2024 economic outlook session in Lagos, Rewane said inflation is likely to “drop in 2024 and could go as low as 17 percent in 2025.”

    The economist’s views on inflation and the trading performance of the naira — Nigeria’s local currency — comes after Olayemi Cardoso, the nation’s central bank governor, took a similar position recently.

    According to Rewane, “Once inflation begins to decline, the exchange rate naturally appreciates because the exchange rate pass-through starts slowing down.”

    The economist, however, said inflation would climb further in early 2024 as a result of market changes and ongoing currency volatility on the black market.

    “Base effects are expected to kick in by mid-year, with inflation moderating to an average of 23.6 percent in 2024 from an average of 24.4 percent in 2023. The decline in inflation will naturally lead to exchange rate appreciation,” he said.

    Speaking on economic trends in 2023, Rewane said the naira fell by 26 percent to N1,050/$ in 2023.

    “There were higher energy prices with diesel price up by 34.01 percent to N1,050 per liter (year-on-year), fuel price up by 233 percent to N630 per liter (year-on-year), while money supply growth went up 36 percent (year-on-year) to N67.18trn in September,” he said.

    Meanwhile, Rewane stressed that investment in Nigeria is a substantial contributor to the country’s gross domestic product (GDP).

    Speaking on the interrelated structure of the global economy, the CEO said Nigeria has a number of international issues that could influence the trajectory of the economy in 2024.

    This, he said, encompasses geopolitical events, trade dynamics, rising market trends, and artificial intelligence.

    Nigeria to face higher debt burden in 2024, says IMF

    According to the International Monetary Fund (IMF), Nigeria will face a higher percentage of debt to gross domestic product (GDP) burden in the coming year.

    IMF gave the projection in its October 2023 report on ‘Africa: Special Issue: In Pursuit of Stronger Growth and Resilience.’

    It indicated that Nigeria’s government debt would rise by 4.3 per cent of its GDP in 2024 from 38.8 per cent in 2023.

    The IMF report also projected that Nigeria’s real GDP would slightly grow from 2.9 per cent this year to 3.1 per cent in 2024.

    Nigeria’s real GDP, an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, is expected to reach $489.80 billion by the end of 2023 and to peak around $504.99 billion in 2024.

    Arising from the debt burden Nigeria and other low-income countries are carrying, the G-24, a group made up of 38 members plus China, had said not only were there high and increasing public debt levels with many developing countries but also that the countries carried unsustainable debt burdens.

    There is hope the economy will rebound despite the growing debt and inflationary spike, according to the IMF.

    The institution had projected growth in Nigeria’s real GDP to 3.1 per cent in 2024 and four per cent in sub-Saharan Africa; however, urging the region to take some precautionary measures.

    “To ensure that the coming rebound is more than just a transitory glimpse of sunshine, it is important for authorities to guard against a premature relaxation of stabilisation policies while also focusing on reforms to both claw back lost ground from the four-year crisis and also to create new space to address the region’s pressing development needs,” IMF said.

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    Economy set for modest improvement in 2024

    According to the forecast by BMI, a Fitch Solutions company, Nigeria’s real GDP growth will increase modestly to 2.9% in 2024, up from 2.4% in 2023.

    “We forecast that Nigeria’s real GDP growth will increase modestly to 2.9% in 2024, up from 2.4% in 2023. The most recent data released by Nigeria’s National Bureau of Statistics shows that the economy expanded by a modest 2.5% y-o-y in Q323, unchanged from Q223.”

    Expatiating, BMI further noted that Nigeria’s revenue-to-GDP will remain one of the lowest globally at 4.5% in 2024. “We anticipate that roughly 60% of the government’s federally retained revenue will be absorbed by debt servicing. Meanwhile, given that inflation will remain elevated through 2024, the government will be under pressure to increase the already-bloated public wage bill, exerting a further strain on the country’s budget position. As a result, the government’s fiscal space to ramp up productive spending – including investing in infrastructure projects – will continue to be severely restricted through 2024.”

    Interestingly, the Fitch subsidiary anticipates that the Central Bank of Nigeria will maintain a relatively high benchmark interest rate, which it expects to end 2024 at 17.75%, thus keeping borrowing costs elevated.

    “Given macroeconomic headwinds, low confidence and tight credit conditions, businesses are unlikely to commit to expansion plans over the coming months.”

    The BMI is particularly upbeat about the possibility of the country making a lot of gains from the production at Dangote Refinery.

    “Given that Nigeria will produce 1.62mn b/d of crude in 2024, there will still be a significant surplus available for export. Furthermore, long-standing contracts with international buyers and the need to maintain relationships with key trading partners – including the US, EU, and India – will mean that large volumes of crude will continue to be sold on the international market, preventing a downturn in overall exports. All told, we forecast that growth in exports of goods and services will soften from 19.3% in 2023 to 6.7% in 2024.

    “Real GDP, % chg 2.4 2.9 Economic growth in Nigeria will improve modestly in 2024, primarily due to the operational start of the Dangote refinery. That said, Nigeria will continue to   underperform by both Sub-Saharan Africa and emerging market standards as a result of high inflation, tight financial conditions, and fiscal constraints.”

    Echoing similar sentiments, Enebi Opaoluwa, Senior Research and Policy Analyst at Budgit, while expressing optimism over the projections by the Minister of Finance Wale Edun on the positive outcomes of some of the government policies in the coming days, said that a lot would give.

    Opaoluwa who was a guest at a public forum in Lagos, said the government from all indications has shown that it can be taken very seriously, and as such needs to maintain the tempo of activities that should translate to the much anticipated gains it wants to see in the major commanding heights of the economy.

    Regardless of what is done, Opaoluwa would rather the government ensures that it reins in the monster of the rising exchange rate. The exchange rate is a very crucial factor and one of the key parameters in assessing the health of any economy, he stressed.

    Hope rising for economy

    While commenting on the state of the economy in the last few months, Peter Sunday Adebola, Managing Director, Edgefield Capital Management Limited, an investment-driven firm, said the government is tackling the problem besetting the country headlong despite the challenges it is confronting.

    According to him, the current economic managers have shown the propensity to turn things around in the system judging by the raft of policy pronouncements they have made in recent times.

    Citing the revamped Port Harcourt Refinery, he said, “If Port Harcourt Refinery I and II is working, then that means we would import less fuel and if we do that it is going to enhance our foreign exchange earnings capacity. Then again, another thing is the Dangote Refinery has also come on stream too. It has received some crude oil for prospecting.”

    Refining capacity, he reiterated, “Will increase the pressure on our reserves and increase in food production if people can go back to their farms. Then we are going to see the kind of hope that this administration is promising us.”

    Adebola, who lamented the absence of the middle class in the country as a result of the growing economic crunch, said, “It’s either you’re poor or you’re rich.”

    With the right policy mix, he is optimistic that things would turn around for good. “We will see the appearance of the middle class and that is good for us as a country. If you look at our market capitalisation, it is now N40trillion. If you divide that by the exchange rate now, it means we are still hovering around $40b as we speak, which is small. So, we need an expanded market. If the environment is conducive enough we don’t need to be going on a roadshow overseas for foreign direct investment. No.

    “A country of over 200million people doesn’t have any business being poor. That is why you see all these Indians trooping here while our folks are ‘japing’ in. We have got raw materials which can be used to transform the nation in all sectors. FDI will come naturally if there is adequate infrastructure.

    “With a vibrant capital market, it would afford companies the opportunity to raise funds. Right now, the market is vibrant and we expect that by next year, it will be vibrant as well. There are lots of activities both in the primary and secondary markets. Likewise, if this happens, prosperity is going to come into the economy.”

    He would also want the government to replicate what it is doing in other sectors in the food sector by tackling insecurity headlong.

    Jamiu Mohammed Equity Trader at Apt Securities & Trust Limited is also on the same page with Adebola.

    “We believe the market should continue to be in the green. We always advise our investors to look at the sound fundamentals of the companies they want to invest in to avoid any untoward outcomes because what pushed our market to this level is the fundamentality of the market.”

  • How N28.78tr budget can impact economy, by experts

    How N28.78tr budget can impact economy, by experts

    • ‘Why we raised capital component’

    Finance and economy experts have called for effective implementation of the N28.78 trillion 2024 budget approved by the National Assembly at the weekend in order to boost the economy and relieve the populace of expected challenges from major economic reforms.

    The National Assembly has assured that it would work with the Executive to ensure successful implementation of the budget.

    The National Assembly at the weekend approved N28.78 trillion as budget for the 2024 fiscal year. Both the Senate and the House of Representatives increased the budget estimates by N1.2 trillion from the N27.5 trillion presented by President Bola Tinubu.

    The National Assembly increased the exchange rate from N750 to N800 per dollar while the 1.78mbpd oil production, $77.96 oil benchmark price and GDP growth rate of 3.88 per cent were approved as proposed by the President.

    The breakdown include N1.74 trillion for statutory transfer; N8.77 trillion for recurrent expenditure; N9.99 trillion for capital expenditure; and N8.27 trillion for debt servicing.

    Experts were unanimous that the weekend passage of the budget was timely and commendable as the budget remains a key decision-making tool for operators in the economy.

    They were unanimous that while the overall policy direction and headline details of the budget were realistic, the overall success of the budget depends on the implementation and prioritisation of key projects and initiatives with immediate impact on the citizenry.

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    Experts who spoke to The Nation included Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe; Group Executive Director, Investment Banking, Cordros Capital Group, Mr. Femi Ademola; President, Association of Capital Market Academics, Professor Uche Uwaleke; Managing Director, HighCap Securities, Mr David Adonri and Lead Director, Centre for Social Justice, Eze Onyekpere.

    Amolegbe said the budget was realistic, although there is still more room for the country to be more aggressive with spending, particularly on infrastructure, which is needed at this time to drive local production and employment.

    “The focus should be on budget performance and implementation, so funding the components that will have immediate impact on ameliorating the negative impact of recent policy reforms on the citizenry should be prioritized. We must also be focused on achieving the benchmark set on the revenue side of the budget in other to reduce the debt component as much as possible,” Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS) said.

    He said government should consider alternative funding options including disposal and privatisation of government assets that are better managed by the private sector.

    According to him, alternative funding options that focus on optimising existing and emerging assets and opportunities will have a dual impact on the economy by providing government with much-needed resources to fund its growth agenda while also directly benefiting the citizenry in terms of multiplier effects of improved management and operations.

    Ademola said the quick passage of the 2024 budget was “very impressive”.

    According to him, the improvement in the budget passage process might be a signal that the country now has improved budgetary process or that the contents of this budget were quite very clear and agreeable by all the parties so there was no need for any political brinkmanship.

    “While the speed of passage is impressive, we hope that the implementation of the budget would also be that impressive by the time we measure the progress on periodic basis.

    “One notable thing with the budget is that despite the increase in debt servicing and statutory transfers, the budget deficit was proposed to reduce by N4.6 trillion. This is brought about by expected increase from revenue, especially oil revenue that has been at the lowest levels in the past years. While exchange rate and oil price add significantly to this positive, projected increase in production is the most important contributor to the increase. Non-oil revenue is also projected to increase by more than 40 per cent. It would be interesting to see these materialise as proposed,” Ademola said.

    Adonri said the passage of the budget was commendable as policy makers in both the private and public sectors need the budget to anchor major decisions.

    “It is now left for the executive to implement it efficiently,” Adonri said, noting that the real impact of the budget will be decided by the effectiveness of the implementation and monitoring processes.

    Uwaleke said the adjustments to the initial budget estimates by the executive arm of the government were in order in line with the statutory responsibilities of the National Assembly.

    He however noted that the increase by N1.2 trillion was largely on account of the upward adjustment in the exchange rate from N750 to N800 per dollar, pointing out that a sustainable basis for any increase ought to have been an increase in the forecast for non-oil revenues.

    “Increasing the size of the budget on the basis of a hike in the exchange rate benchmark has adverse implications for inflation and interest rates environment in 2024 as it automatically renders unrealistic the inflation rate projection of 21.4 per cent for 2024,” Uwaleke said.

    Onyekpere said while the budget details were largely achievable, the real underlining impact of the budget will be in implementation.

    According to him, the projections may not tell the whole story which will emerge from the actual expenditure during budget implementation.

    Onyekpere said projection of 1.78mbpd oil production is optimistic for now, although the position may change in early 2024 as Nigeria gears up to raise its OPEC quota.

    He said Nigeria has what it takes to achieve the target, adding that he had expected between 2.1mbpd oil production to 2.5mbpd oil production.

    House of Representatives Speaker Tajudeen Abbas said the N28.78 trillion 2024 Appropriation Bill, when signed into law by the President, will define his administration as people-centric.

    Abbas, who addressed reporters after his visit to Tinubu in Lagos, urged Nigerians to expect a notable difference in budget implementation this year.

    “We expect the budget to deliver because there’s no sector that we did not crosscheck, scrutinise, and make enquiries on what is required to make the desired impact to the economy and to the people. 

    “I assure you that by the time the 2024 appropriation is signed into law and we start implementing it, Nigerians will see the difference.

    “This is a budget that is going to define the Tinubu administration’s commitment to the people of this country,” Abbas said.

    Also, Chairman, House of Representatives Committee on Appropriation, Abubakar Kabir Bichi, explained that the increase in budget size to N28.78 trillion was necessitated by the promise by Government Owned Enterprises (GOEs) to increase their revenue generation in the 2024 fiscal year.

    He said revenue-generating agencies had pledged to generate a substantial revenue increase this year to prop up the budget.

    “We had a meeting with the GOEs. We believe that their submissions are not enough. They have agreed to increase their revenue. That is how we were able to get that N1.2 trillion which we applied to capital,” Bichi said.

    He said the budget increase in the Appropriation Bill was allocated to the capital component rather than recurrent expenditure.

    “I believe this budget is brilliant and Nigerians will see a lot of impacts. This is the first time the capital (component) is bigger than recurrent,” Bichi said

    According to him, citizens made contributions in to the Bill at a one-day town hall meeting organised by the House, while the National Assembly’s Joint Committee on Appropriation worked closely with the Executive to arrive at the budget.

    During budget defence, Bichi had urged the Comptroller General of the Nigeria Customs Service (NCS), Adewale Adeniyi, to increase the agency’s revenue target for this year to N6 trillion from its proposed N5.79 trillion, saying the government would need more money to finance several projects.

    The appropriation committee chairman also urged the Nigerian Upstream and Downstream Petroleum Regulatory Commission (NUPRC) to increase its revenue target to N6 trillion from the proposed N5.6 trillion.

  • Nigeria’s economy will witness boom in 2024, Presidency assures

    Nigeria’s economy will witness boom in 2024, Presidency assures

    The presidency has assured Nigerians that the country’s economy will witness major turn around in 2024 with efforts being made by President Bola Tinubu to change the narratives.

    The senior special assistant to the president on media and publicity,  Temitope Ajayi said that the federal government was working round the clock to revamp the economy and invariably address the current hardship Nigerians are facing.

    The presidential aide spoke in Ikere-Ekiti, headquarters of Ikere Council  Area of Ekiti State  during a Get-Together Party organized in his honour by Annunciation School Old Boys Association (ASOBA) 1995 set.

    Ajayi explained that the President Tinubu was committed to fulfilling his renewed hope agenda for the country, adding that Nigerians will soon witness the positive impacts of the current programmes and policies of his administration.

    Ajayi who acknowledged the economic challenges confronting the citizens, he expressed optimism that the president and his team are assiduously working to change the narratives in the new year for the betterment of Nigerians.

    He pleaded with Nigerians to have trust in President Tinubu’s efforts towards re-engineering the nation’s economic, social and infrastructural structures in order to birth a new Nigeria that would work for all irrespective of social and economic status. 

    He said: “Nigerians should look forward to a great year in 2024. The president is going to speak to Nigerians on January 1st in a national broadcast where he is to once again highlights some of the reforms he has taken and what he is doing to make sure Nigerians feel the impact of his government.

    “Of course, things are a bit tight but the president is working round the clock to make sure that Nigerians feel a new sense of life starting from next year; it is going to be a year of prosperity, a year of abundance, a year for economic breakthrough, a year of a lot of social engineering, where Nigerians will see high impact economic projects that will transform our lives, that will give us a good quality of life in roads and other critical infrastructures that this economy needs to take off and really boom.

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    “Those are things the president is focusing on and he will remain focus on them in 2024 and throughout his tenure.”

    He commended members of the old students association for honoring him with the event, adding it would further encourage him to be committed to duty and never let their formal school down in discharge of his responsibilities at the presidency.

    “I feel so good and elated to be part of this event organized for me and I can say that there is nothing that can be more greater and satisfying for your colleagues to honor you.”

    The chairman of the 1995 Set, Oladayo Orolu commended President Tinubu for appointing their colleague as one of his media aides, expressing optimism that Ajayi would in no small measure assist the president in achieving his agenda for the country.

  • State of the economy: Issue of the year

    State of the economy: Issue of the year

    If there’s any issue in Nigeria today that everyone is preoccupied with, it is the state of the economy. Almost everybody has same answer to the question as to how the economy is performing. It doesn’t matter whether the question is thrown at intellectuals, or the layman on the street. The defining factor that propels responses to the question is the prevailing living standard. It matters very little whether the economy, as it stands right now, was inherited from previous governments. The economy is ‘bad’ is the common response you get from everywhere.

    The question is why the economy is so concerning to everyone? The answer is simple. It’s about the food we eat and the cost; it’s also about the work we do and its sustenance. It’s equally about the wares we buy and sell on the street corner shops. Every other thing revolves around it, including paying the rent, children’s school fees and being able to pay the fare that takes one to work.

    The economy essentially revolves around the individual and corporate activities that churn out returns, or resources that put food on our tables, pays the health bills, provides stipends and support members of the nucleus and extended family who are in need.

    The economy refers to the scope of activities undertaken by corporate organisations in the formal sector, and others in the Small and Medium Enterprises, the Micro, Small and Medium Enterprises, as well as individuals in the informal or unregulated sector engaging in the production and exchange of goods and services nationally. The outcome of the cumulative inputs of the various human commercial efforts, contribute to what is known as the Gross Domestic Product (GDP). If the GDP goes up, the economy is growing; if it goes down, the economy is contracting.

    Today, the mantle of the nation’s leadership has fallen on Asiwaju Bola Ahmed Tinubu. He assumed the presidency six months ago. This followed Muhammadu Buhari‘s eight years in the saddle. What the regime left behind in the economic space in the words of many notable and informed Nigerians “was a disaster.”

    Senator Adams Oshiomhole, former Edo State Governor and erstwhile chairman of the All Progressives Congress (APC), said this of the economy: “The government inherited a terrible economic situation. It inherited an economy where our total national revenue was barely enough to service our debt burden – spending 96 per cent to service debts, meaning that for every N100 Nigeria earns, 96kobo will be required to service debts, with only N4kobo left to pay all the salaries. Nothing can be worse.”

    He, however, added that Tinubu came determined, saying the government will have to do business ‘unusual’ to arrest the drift and stabilise the economy.

    Following closely on Oshionmhole’s assessment, Anambra State Governor and one time Governor of the Central Bank of Nigeria (CBN), Professor Chukwuma Soludo, said Tinubu inherited an economy that could be compared to a “dead horse, but standing.” He commended the President for taking some decisions, including the removal of petrol subsidy, and urged the citizenry to support the government in achieving its plans.

    The opinion of the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, was not any different. It dovetailed with what Soludo and Oshiomhole had said. He said the Tinubu administration met a very bad economy with inflation at 24 per cent.

    He painted the picture of what the administration met on ground thus: “Per capital income has fallen steadily, inflation is at 24 per cent, unemployment is high, and youth unemployment is even unacceptably high. These are the key metrics that we have met. We met a bad economy, but the promise of Mr. President is to make it better.”

    Many, including key government officials may be overwhelmed at the depth to which the economy has sunk. The state of it, as has been variously painted by those who should know, may have come as a surprise to many, but I dare say, not the President.

    His words “don’t pity me,” at the state banquet on the day of his inauguration, spoke volumes, and underscored what he knew awaited him as he took office. One can therefore assess Tinubu’s style of governance and response to issues, so far as flowing from his knowledge and understanding of what is at stake and how hard and fast he must move to prevent a further slide of the economy, and give it the needed push so as to steady it on the desired path, or trajectory for growth.

    Tinubu’s bold declarations “don’t pity me. I asked for the job, I campaigned for the job, I’ll live up to expectation,” remain the hope that Nigerians are holding on to in the face of the present economic predicament.

    The depth and extent of the measures he has taken so far to revive the economy, though harsh and painful, underscore the sorry state of affairs at this point in time.

    The removal of fuel subsidy and abolition of exchange rate control are two major policies that heralded the entry of this administration. These have been variously applauded as needful to raise funds for the government and at the same time curb corruption. On the flip side, they have created the greatest headache for the government given the resultant pain and hardship for the citizenry.

    The breakeven point

    The economy stands at a crossroads, caught between the weight of inherited challenges and the optimism of a new administration. As the year draws to a close, two prominent economists have offered contrasting perspectives on the current state and potential future of the nation’s economic landscape.

    Professor Uche Uwaleke of Nasarawa State University paints a stark picture, describing it as struggling under the burden of sluggish growth, high inflation and a crippling public debt. He highlights the devastating impact of inflation, which has eroded purchasing power and pushed millions into poverty.

    On the other hand, Gbolade Idakolo, Managing Director/CEO, SD&D Capital Management Limited, acknowledges the difficulties, but nevertheless emphasises the potential for improvement under Tinubu’s leadership.

    He points to the bold policy decisions taken by the new administration, encompassing the fuel subsidy removal and foreign exchange adjustments, saying they are necessary steps towards long-term stability, even if they have caused short-term hardships.

    Both economists agree, nonetheless, that overcoming these challenges require decisive action. Uwaleke advocates swift implementation of the recommendations from the Presidential Committee on Fiscal Policy and Tax Reforms, aimed at reducing the fiscal deficit and achieving financial consolidation, while Idakolo urges government to aggressively pursue its “Renewed Hope” policy and in addition, aggressively implement the 2024 budget.

    However, the path forward is not without its obstacles. They say there’s need to address sector-specific challenges, such as those faced in agriculture, manufacturing and aviation. Idakolo cites the closure of major companies as a stark reminder of the impact that the current economic climate is having on businesses.

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    Another cause for concern highlighted by Uwaleke is the high inflation rate, which peaked at 27.3 per cent in October 2023. This has significantly eroded the purchasing power of Nigerians and increased the poverty rate.

    The inflationary pressures can be attributed to various factors, including the abuse and failure to comply with, or apply corporate governance principles at the CBN on the usage of ways and means in the past.

    This practice, which involves the government borrowing from the CBN to underwrite its expenditure per time, has increased money supply and contributed to rising inflation. Addressing this issue requires comprehensive fiscal and monetary measures, including reducing government spending and ensuring a more disciplined approach to managing public funds.

    In addition to inflation, Uwaleke highlights the forex crisis as a major concern. The scarcity of foreign exchange has negatively impacted businesses, especially those relying on imports. The shortage of dollars has made it challenging for companies to engage in international trade and attract foreign investment.

    Resolving the forex crisis requires an improvement in forex inflows, which can be achieved through diversification of the economy, boosting exports and attracting foreign direct investment. The government should also explore policies that promote local production, import substitution, and encourage investors to repatriate their funds.

    The shameful narration that Nigeria’s oil was being stolen to the tune of over 400,000 barrels daily, is an economic crime that should be investigated and perpetrators consigned to jail for a long time.

    Uwaleke stresses the importance for macroeconomic stability and fiscal consolidation, saying the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms is a step in the right direction. This committee should focus on reducing the fiscal deficit and ensure efficient use of public resources.

    However, achieving fiscal consolidation requires more than just committee recommendations. It demands a broader commitment to cut the cost of governance and eliminate wasteful expenditure. This can be done through stricter budgetary control, transparency in public procurement processes, and a focus on delivering value for money in government projects and programmes.

    Shifting the focus to Idakolo’s assessment of the economy in 2023 provides additional perspective on the challenges faced during the transition year from the Buhari to the Tinubu administration. He acknowledges that the performance of the economy in 2023 was below 50 per cent which was expected, given the transitional nature of the period. Politicking took the better part of the year, and regrettably, is still continuing.

    Sectors like manufacturing, agriculture, aviation and oil and gas, faced significant challenges, leading to negative impact on the overall economy. The issues of food inflation and scarcity of Naira further exacerbated losses experienced by the country.

    Idakolo emphasises the need for the administration to tackle these challenges head-on and implement their Renewed Hope policy. This policy, if properly executed and accompanied by the aggressive implementation of the 2024 budget, will have the potential to bring about improvements.

    However, it is crucial for the government to closely monitor and evaluate the impact of these policies on the economy to ensure their effectiveness in achieving the desired goals.

    Going forward, it is crucial to recognise that the economy is multifaceted and interconnected. Addressing the challenges requires a comprehensive and integrated approach. This includes efforts to enhance the ease of doing business, promote entrepreneurship and innovation, and investment in critical infrastructure. It also necessitates a focus on human capital development and improving the quality of education and healthcare services.

    Moreover, fostering a conducive investment climate by reducing bureaucratic bottlenecks, ensuring policy stability, and fighting corruption will attract both domestic and foreign investors. These investments drive economic growth, create employment opportunities and contribute to sustainable development.

  • Expert makes case for improved economy

    Expert makes case for improved economy

    The President of Virtues International, Dr. Alexander Faranpojo has appealed to President Bola Tinubu to keep up with his promise to expand the economy, lift barriers to investment, create jobs, unify the exchange rate, and unleash Nigeria’s full potential.

    Faranpojo spoke in Lagos, recently at the maiden edition of the Entrepreneurial and Brand Recognition Summit, EBRS, organised by Laneetheplug.

    While reiterating that the President must keep his promises to the populace, Faranpojo noted that “Nigerians are suffering as inflation continues to surge. I believe in the President’s capacity to take us out of the harsh economic condition facing the country at this time. Therefore, he needs to consciously be in touch with the reality on the ground.”

    “Anything you give attention to increases in size. If you pay attention to problems they will grow. If you pay attention to opportunities they will grow. If you pay attention to what is not working, it will overshadow what is working. When you get the spirit of enterprise right, you can do so much with just the phone in your hands.”

    Also speaking, Executive Director, Financial Services Innovator, FSI, Dr Aituaz Kola-Oladejo listed factors that kill businesses.

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    She said one reason why businesses die is because there is no need for the product they have.

    Others, she said, include lack of mentorship, lack of proper management of personal finance from the company’s finance, running out of cash, and lack of the requisite support structure.

    Earlier, in his opening speech, the Convener, Omotolani Akanni Oyepeju said that the event is a programme to appreciate the spirit of entrepreneurship.

    Oyepeju said: “The entrepreneurs brought together today at this summit understand the value of hard work. And when appreciated, they will feel the need to do better. The objective is to build a community of successful people, where people can learn and do better for themselves.

    “This will reduce fraud and other social ills. This is the first. Going forward we will reach out to more people, providing solutions and helping people grow. This community will grow into an international brand known for providing solutions.”

    Other speakers at the summit were Dr. Bayode Thomas, Idea Consultant/ Strategist; Victor Abiola, Affiliate Binance; Funmilayo Faranpojo, Director, Enternal Virtues Consult, among others.

  • Port community system to support blue economy

    Port community system to support blue economy

    Managing Director of Nigerian Ports Authority (NPA), Mohammed Bello-Koko has said the planned port community system (PCS) by the authority is also geared towards supporting the nation’s economy to harvest more benefits from the blue economy.

    Bello-Koko who said this in London where he is attending the 33rd session of the International Maritime Organisation (IMO) General Assembly, described the initiative as a game changer that will integrate all stakeholders within the maritime sector, promote national economy and support security of vessels, crew members and cargoes within the Nigerian maritime domain.

        He also expressed optimism that Nigeria will achieve the port automation and necessary integration ahead of the IMO 2025 deadline set for member countries

        The NPA MD who is on the entourage of the Minister of Marine and Blue Economy, Adegboyega Oyetola, CON and Permanent Secretary of the Ministry, Dr. Magdalene Ajani, added that the PCS will foster transparency, support ease of doing business and trade facilitation.

        He explained some steps taken by the authority to set the PCS in motion ahead of the 2025 IMO deadline to include development of automation-based processes. In time past, before the introduction of e-sen, (Electronic Ship Entry Notice), it takes about two weeks from the time of application to the time of approval and issuance of the ship entry notice certification.

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        However, since the introduction of electronic processing of ship entry notice, it takes about one hour for a function that used to take up to one or two weeks, depending on the idiosyncrasies of the man on the table and all the table the documents need to pass through.

        He said the system will save cost of doing business and make our ports trade friendly by carrying out a function of two weeks in one hour and enhance faster ship turnaround time

        He added that NPA collaborative efforts with the IMO to achieve a world class port community system is at an advance stage and would soon migrate into implementation in line with global standard.

        Bello-Koko added that while in London, the Minister will lead Nigeria’s delegation into series of bilateral meetings with Ministers of Marine affairs of Greeece, Mexico and Qatar today to set the stage for improved Nigeria’s participation in global maritime trade.

        Meanwhile, sources at the meeting volunteered that Oyetola who is leading the Nigerian delegation long with NPA MD, NIMASA DG Will have bilateral meetings with Ministers of Marine affairs of Greeece, Mexico and Qatar today.

  • Culture as a tool for revamping the economy

    Culture as a tool for revamping the economy

    • By Segun Runsewe  

    There has been no time in the socio-economic evolution of Nigeria that the naira has been under such a severe pressure than it is today. With the exchange rate of one US dollar to less than one naira in the 70s, the exchange rate of the naira to the dollar today has risen beyond N1,000 to one US dollar. This phenomenal fall in the value of our currency beginning, from the Structural Adjustment Programme (SAP) regime, till today, has continued to negatively impact on all spheres of our national life, challenge our cultural values and call for a comprehensive value re-orientation.

    As a free market economy, the value of our nation’s currency would ultimately be determined by the market forces of demand and supply. This has implication on our level of consumption of foreign goods and services and by extension, our values. In those days when the naira commanded remarkable economic power at the global market, our values were right; our attitudes were positive and our personal dispositions were supportive of our developmental aspirations. We were a nation committed to agriculture as the mainstay of our economy while aggressively embarking on solid mineral exploration to drive a diversified economy. We were a people imbued with positive sense of purpose and productive hard work was our national work ethics and our unique selling point. We were proudly Nigerians in our attitude to work, in our consumption, our dress culture and in all that we did. We witnessed relative economic stability, social harmony and development because we believed in and espoused the tenets of our culture.

    Today, the story is different. We have thrown our cherished cultural values overboard. In place of hard work, we have embraced laziness, idleness and the get-rich-quick syndrome. We are no longer proud of our rich cultural values and their diverse manifestations. For example, we have relegated the Nigerian fabrics which projected our cultural identity in the yesteryears and sustained a booming garment industry, for foreign dresses like the French suits, Holladian fabrics and Senegalese attires. It is now fashionable for our educational institutions even at the elementary level to import school uniforms to educate our children away from our culture, both in content and in form. Our educational curriculum has become largely alien and non-reflective of our socio-cultural background.

    It is unfortunate that today, we export Nigerian hide and skin to Italy and Spain only to import Italian and Spanish shoes made with Nigerian raw materials. Aba made shoes has lost domestic patronage except when exported to Dubai and imported into Nigeria with the brand “made in Italy”. China has made alarming in-road into the Nigerian traditional fabric industry and imported Chinese tie and dye originally rooted in Osogbo culture is now in vogue in Nigeria. The story is endless.

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    There can be no sustainable economic development when the values and orientation of the citizenry are at variance with the culture on which the society is founded and where the general pattern of consumption is conspicuously alien and brazenly extravagant. For us to attain economic growth and the stability of the naira therefore, we must return to our cherished cultural values and harness our cultural resources to engender national development. Examples abound of nations who utilised their cultural strength to enhance the developmental process. It took men and women of vision, courage and commitment to conceive, pursue and realize the American vision rooted in the firm belief in America as a virgin continent magnificently endowed by nature. With a strong culture of patriotism and commitment to the growth of America, the USA rose from the ashes of a people with diverse ethnic nationalities, ravaged by a civil war and racial segregation to become the world’s foremost super-power. Those who crafted the American dream upon which the continent was born were not angels from above. They were Americans who believed in the vision of a great continent and patriotically committed themselves to ensuring that the vision became a workable reality. Today, when America sneezes, the rest of the world catches cold.

    China presents another example of a people who believed in themselves and looked inward to collectively reinvent their nation. From the dark trenches of the global depression of the 1930s through the Sino-Japanese war of 1937 to the Great Leap forward and the famine 1957, China has emerged the second largest economy in the world, with firm belief in their history, culture and heritage.

    India, like Nigeria, was a British colony. Unlike Nigeria however, India has used the scientific and technological expertise of Western education to develop its nation, holding jealously on to the Indian cultural heritage. They dress Indian, eat Indian, talk Indian and live Indian.

    In view of the proven capacity of the cultural sector to contribute significantly to the Gross Domestic Products, most nations of the world are developing strategies to integrate and mainstream cultural products to the process of economic development. Nigeria is unarguably the most culturally diverse nations in Africa, rich in various cultural products. It offers a unique opportunity for artistry, craftsmanship and entrepreneurial skills that can be developed, showcased and marketed to derive a robust cultural industry. A rich cultural industry in Nigeria will no doubt speed up our diversification drive, engender rapid socio-economic growth and development and lead to a strong and stable Nigerian currency at the international market.

    It is in the light of the foregoing that the National Council for Arts and Culture (NCAC) is vigorously pursuing cultural programmes that will open up the industry; unbundle, harness and develop latent skills talents and capacities that would lead to the emergence of a vibrant cultural economy for Nigeria. In the last six years, the NCAC has executed skills acquisition programme through the platform of the National Festival of Arts and Culture (NAFEST) and the International Arts and Crafts (INAC) Expo. In these and several other programmes, over 10,000 Nigerians, especially women, youths and the physically challenged, have been trained and given start-up grants. We have successfully ingrained skill acquisition in metal production, hair weaving, wood carving, local fabric making, soap and bead making among others, into our flagship programmes.

    To open our cultural industry to the international market, we have continued to run INAC with the theme “Networking Nigerian Crafts to the World” while targeting members of the Diplomatic Community as our primary audience. This effort is deliberate because foreign trade enquiries start from the embassies in the host countries. For us to have an in-road into the global cultural market, we must cultivate the attention and partnership of members of the diplomatic community while honing our skills and enhancing our design, finishing, packaging and presentation to meet global market standard. It is through product improvement that we can raise the value of our arts and crafts industry to become truly attractive and earn the confidence of the international consumers necessary for a robust cultural economy that can create employment and wealth for our nation. Accordingly, we have introduced the concept of comparative advantage in our efforts to tap into the cultural uniqueness of the respective states through the 37 wonders of Nigeria. This programme is anchored on the economic policy of one state, one product.

    In the efforts to expand the frontiers of our cultural industry, we cannot afford to be in competition but in active collaboration and complimentary. The 37 wonders of Nigeria was launched by the governor of Lagos State, Babajide Sanwo-Olu during the National Festival of Arts and Culture in Lagos last year with the emphasis on one state, one product. The cultural wonders of Nigeria is a brand identity and marketing concept premised on peculiar tangible manifestations and intangible expressions unique to the 36 states of the federation and the Federal Capital territory (FCT). Each of these constitutes the wonders of natural endowments or amazing evidence of human creative interactions. Together, they have evolved to become iconic emblems of Nigeria tourism destinations and technological processing.  

    For example, the Zanna Cap of Borno, the Akwa-Ocha dazzling white traditional woven fabric of Delta State, the queen India head of Benin, Edo State, the Ikogosi Water Spring of Ekiti, the Nok Culture of Kaduna State, the Dye Pits of Kano, the Itoguntoro traditional weaving heritage of Kogi State, the Dada pottery of Kwara State, the brass works of Niger State, to mention but a few have all assumed unique cultural brands that can be enriched, repackaged and aggressively promoted as aspects of Nigerian cultural brands at the international market place. In addition to the above, Nigeria is one of the richest countries of the world in terms of cultural festivals. Our fascinating cultural festivals and dance include Ohafia war dance in Abia State, Ekwobi dance in Cross River State, the Nwa Umu-Agbogho of Ebonyi State, the Odo Masquerade festival of Enugu State, the Eyo Masquerade of Lagos State, Argungu Fishing festival of Kebbi State, the Osun Osogbo festival of Osun State, Igwe festival of Edo State, the boat regatta of Rivers and Bayelsa States and so on. These festivals can be repackaged into a cluster and a national festival calendar evolved to ensure that tourists in search of leisure and festival entertainment can experience several of these festivals in a particular cluster during one visit.

    It is my hope that if our cultural resources are carefully harnessed and productively channelled, it will open up our cultural economy, engender rapid socio-economic growth and lead to the emergence of a strong and stable currency that will command the required purchasing power at the international market.

    •Runsewe is the Director General, National Council for Arts and Culture (NCAC).

  • Economy: Flaws in belt-tightening narratives

    Economy: Flaws in belt-tightening narratives

    • By Andrew A. Erakhrumen

    It will be a hasty generalisation to conclude that Nigeria does not have people (among politicians) with genuine positive intentions for the country but they are in the minority, powerless and suppressed. The subsisting tragic experience is that those in criminal entrepreneurship are increasingly forcing their way to power! All we are hearing of, and seeing, are shameful ludicrousness giving good reasons to people in other countries to scoff at Nigeria that has tolerated, and is now used to, mediocrity and inferior materials! Many Nigerians appear to not know, and/or unable to discern, what high quality humans and products look like. Have they ever known any?  There has been so much cascading, intense deliberate (collective) normalisation, and rewarding, of inferior and mediocre performances! Nigerians should, by now, have freed themselves from the once-valid but now-expired lamentation that their beloved country was always taking a step forward and two backwards; today, Nigeria has successfully ‘upgraded’ to taking almost ALL its steps backwards! It has been hijacked by, and for, a few! Nigerians have been so much taken for granted that they are talked down to, as slaves, anytime!

     Recently, a Nigerian senator in the current 10th National Assembly – as typical of many of his colleagues – in a self-centred manner, on a national television station, tried to glibly justify the attempted, and/or actual, purchase of sports utility vehicles at N160million each for the 469 members of the assembly. This kind of scandalous appropriation is not new concerning the executive and legislative arms of Nigerian governments, at least, since May 29, 1999. Here, we are not talking about their tear-inducing “legitimate” entitlements/privileges! Additional annoyance to sanity is the shameless recklessness with which these unbothered public office holders explain these broad daylight robberies away in the midst of festering gnawing poverty in the land!

    Did any of the assembly members belonging to the “different” political parties reject the vehicle? No! Why? As we have been saying, they are the same people! These insensitive people want us to believe that the economy is distressed but for them, it is all about grabbing everything from the public coffers. The simple meaning of their shamelessness is: while they are relaxing their belts, poor Nigerians should tighten theirs!

    As this piece is being written, there are reports that the federal government has begun to automatically deduct 40% from federal universities’ internally generated funds when these institutions’ academic departments are finding it difficult to buy ordinary printing papers! Is Nigeria not unique? It is where most lecturers/researchers in public universities improve on their cognitive wherewithal, conduct researches and publish their outcomes, using their poor salaries! Soon, (if it is not already happening), professors will have to bring chairs/tables, from wherever, to their decrepit offices in a manner similar to certain occurrences during academic programmes’ accreditation exercises when humans and equipments are “borrowed” for display!

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    If the last statement sounds unbelievable, hear this preposterousness: we know of public universities where lecturers have to either pay for, or personally do, the cleaning of their offices that are really not offices! The foregoing should be expected from a captured state! Surely, we are not unaware of some self-inflicted funding challenges in these institutions leading to gradually normalised anomalies. It still seems that Nigerians – especially in Nigeria – do not appreciate the problem they are in with the kind of leadership cadre they have knowingly or unknowingly allowed to hold them to ransom all these years! The followers may be part of the problem but, as we always say, leadership is the problem! This crisis is confronted with plausible solutions when a society is able to get it right recruiting quality leadership. The unfortunate reality is that the strategies for enslaving many Nigerians have not changed. The propaganda has also not significantly changed – year in, year out. In collaboration with some myopic followers who blindly and slavishly defend the indefensible, Nigerians are scammed by these misleaders. They insult the collective intelligence of the discerning with ridiculous visuals and narratives. Honestly, we do not, and will not, hate those fellows because they are in bondage! They need help! We will not be tired of referring to senselessness, in the past, with the hope that this will help in waking Nigerians up, going forward.

    For instance, we were insulted by Harlequin characters with annoying theatrics such as the Central Bank of Nigeria/Rice Farmers Association of Nigeria paddy pyramids, in Abuja, in January, 2022! There are others! This is just an example! Yes, a country should make serious efforts toward being self-sufficient in locally-produced food for its inhabitants and possibly for export. This is a way to go.

    Nonetheless, what is being questioned here is the rationale behind the showmanship of erecting a pyramid of rice paddy that was not intended for bringing down the price of the final commodity in the market! Or how much is a 50kg bag of “local” rice in the market today? So, for eight years, Nigerians were just being fooled around by unserious people in government! We must quickly add, here, that this ‘skill’ of such theatrical presentations is not unique to the immediate past central administration! It has always been with their predecessors – at all levels! It was inherited and must be bequeathed to their successors! This might be – in politicians’ understanding – that these theatrical presentations are what members of the public like seeing! Nigerians that are not inflicted by collective amnesia will, definitely, not wait for long to hear same repackaged old stories!

    We have asked severally: when will ordinary Nigerians stop being taken for a ride? Can we safely say that: unfortunately, for these politicians, the public is increasingly and smartly being aware of these tricks? We may not be able to give straight answers to the last two questions, for now!

    By the way, did Nigerians keep a close watch on the blindingly obvious barefaced display of brigandage and criminalities in the recent off-season 2023 gubernatorial elections in Bayelsa, Imo and Kogi states?  It is clear that 2027 general elections may be worse and Nigerians will be the losers.

    •Erakhrumen teaches at the Department of Forest Resources and Wildlife Management, University of Benin

  • IoD’s conference on economy coming

    IoD’s conference on economy coming

    The Institute of Directors (IoD) is set to hold a conference that will attract industry leaders critically tailored to appeal to young directors, entrepreneurs, and millennials, offering them mentorship. It will also be a platform for networking opportunities and a platform for expanding their knowledge in corporate governance.

     Chairman, National Organising Committee, Fatumata Coker at a Media Conference said the event will be a hybrid event that will host influential stakeholders that will ensure that discussions and recommendations at the conference will contribute significantly to shaping policy outcomes for the nation’s economic advancement.

     IoD, President, Tijjani Borodo, said the primary objective of the assembly is to provide information to the corporate world and the wider public on preparations for the 2023 Annual Directors’ Conference.

     He said: “As the thought leader in the advocacy for the entrenchment of good corporate governance in Nigeria, CIoD has consistently upheld its commitment to entrenching global best practices in the governance of companies and institutions in Nigeria and championing ethical leadership”.

     He stated that the Annual Directors’ Conference (ADC) stands out as a pivotal avenue and flagship event that form the core of the Institute’s advocacy engagement series, uniting stakeholders from private, public, and not-for-profit sectors to deliberate on crucial and contemporary issues concerning leadership, ethics, the economy, and business, among others.

     He said the conference is themed “Driving Nigeria’s Economic Transformation & Diversification: The Role of Corporate Governance”.

     The IoD president stressed that the role of corporate governance in driving Nigeria’s economic transformation cannot be over emphasised. According to him the various sectors within the economy are influenced by corporate governance, which is a catalyst for change and progress.

     In his words: ” Corporate governance, he said , plays a pivotal role in steering the economy towards sustainability and efficient practices, facilitating the adaptation of ethical principles and transformation.

     “It also ensures the identification and retention of top talents to fuel economic Growth which stimulates good corporate governance unlocks the potentials of sectors like agriculture, solid minerals, and the blue economy to diversify Nigeria economic landscape.

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     He urged policy makers on economic evolution, guiding and shaping the future of the nation by fostering accountability, sustainability, and growth across multiple Industries.

     The IoD chief  expressed his confidence that the presentations and discussions during Conference will serve as a platform for stakeholders across various sectors of the Nigerian economy to foster a deeper commitment to corporate governance best practices.

     He said: “We anticipate a positive ripple effect across all sectors, nurturing a better appreciation of the roles played by corporate governance in driving Nigeria’s economic diversification and transformation”.

     Embedded within this central theme  he explained are four subthemes meticulously selected to focus on key sectors, identifying their potential contribution to Nigeria economic transformation. These key areas he said  are the energy sector, Digital Space, Human capital, Agriculture and non-oil mineral sectors of the economy.