Tag: GDP

  • Cultural diplomacy will solve Nigeria’s challenges – Runsewe

    Cultural diplomacy will solve Nigeria’s challenges – Runsewe

    The Director General, Nation Council for Arts and Culture, Olusegun Runsewe, said on Wednesday that Nigeria must use cultural diplomacy to address social and economic challenges facing the country.

    Runsewe told journalists in Kaduna that the spate of hate speeches and ethno-religious crisis would be tackled if effective use of culture was made to bring Nigerians together.

    The DG who was in Kaduna for the 47th meeting of the Executive Council on Culture, said Nigeria must learn from history and deploy culture effectively to cement bonds of friendship and interaction among the different tribes in the country.

    “We going to adopt cultural diplomacy to solve most, if not all of the challenges we are facing.

    “We are learning from history and the best option is cultural diplomacy which is what we are going to adopt this time; if we have respect for our individual cultures from different region,there won’t be hate speech.

    “So, we are inculcating and reawakening the consciousness of our people that we can use our culture to solve a lot of problem in our society.”

    The DG also said the country needed to exploit its cultural potentials to boost its Gross domestic Product (GDP).

    “We need to prepare ourselves for the rainy day; 17 countries in Africa gather their GDP from culture and tourism, so why not Nigeria, we have the resources, manpower that can take care of all these things.

    “Creative industry alone can change the narrative of this country. In this industry, no one is a waste, everybody useful, because you have to have one thing or two to contribute.

    “This is the sector that will save this country from the challenges we have.”

    Runsenwe disclosed that the council meeting was preparatory to the National Festival of Art and Culture (NAFEST), to be held in Kaduna from Oct. 14-21.

    “We have 17 directors from different states of the federation and we have toured facilities to be used for the festival.

    “It is a good strategy that we have gone round to check all the places, I believe Kaduna state is ready for the business of hosting NIFEST, I believe it’s good to go.”

  • PwC: Nigeria’s real GDP ’ll recover fully by 2019

    PwC: Nigeria’s real GDP ’ll recover fully by 2019

    Nigeria’s real Gross Domestic Product (GDP)will attain full recovery in two years, with growth moving closer to its long-term trend of 6.7 per cent, PricewaterhouseCoopers (PwC Nigeria Limited) has projected.

    The firm in its routine economic alert titled: “Nigeria’s Q2’17 GDP: From Recession to Recovery” released at the weekend, said latest GDP figures released by the National Bureau of Statistics (NBS) indicate that Nigeria’s economy has exited recession.

    PwC in the report by its  Partner & Chief Economist Dr. Andrew S Nevin and Economist Adedayo Akinbiyi said in Q2 2017, Nigeria’s economy returned to positive growth as real GDP grew 0.5 per cent year-on-year(y/y) after successive declines for five quarters.

    The report noted that this recovery was supported by a strong rebound in the oil sector (8.8 per cent of GDP), which expanded by 1.6 per cent y/y (–15.6 per cent y/y in Q1 2017).

    The firm also said the non-oil sector on the other hand was boosted by a strengthening of the broader manufacturing sector, reflecting impact of improved foreign exchange liquidity.

    “We note that the Q1 2017 real GDP growth was revised down to -0.9 per cent y/y (previous: -0.5 per cent y/y); a revision necessitated by lower than estimated oil production figures for March 2017, which dragged oil output lower,” PwC said.

    The report also provided an analysed key insights from the latest GDP figures as it affects selected sectors and also made projections for the future.

    It said, for instance, that agriculture decelerated on grain scarcity, expanding at a slower pace for the fifth consecutive quarter, recording a growth of 3.0 per cent y/y in Q2 2017 (Q1’1 7 : 3.4 per cent and Q2 2016: 4.5 per cent).

    According to PwC, “This trend has been driven mainly by weaker output in the livestock and fishing sub-sectors, resulting from the scarcity of grains.

    “In addition, we suspect the second quarter resurgence in insecurity in the North East might have negatively impacted crop production activities.

    “This explains the trend in food inflation, which spiked to a seven-year high of 20.3 per cent y/y in July 2017.”

    Similarly, manufacturing expanded at a slower pacefor the second consecutive quarter. Real growth increased by 0.6 per cent y/y in Q2 2017, relative to -3.3 per cent y/y a year earlier.

    Relative to Q1 2017, however, growth slowed from 1.3 per cent y/y, a reflection of the performance of sector heavy weights, food, beverage and tobacco and cement, which accounted for 54.0 per cent of manufacturing GDP.

    “Whilst the broader sector appears to have benefitted from the improved availability of forex, we suspect the price increases implemented across most consumer companies in the course of the year might have impacted volumes.

    “Nonetheless, quarterly data (Q2 2017:1.0 per cent q/q vs Q1 2017: -5.0 per cent q/q) suggests the consumer recovery remains underway, albeit fragile,” the firm said.

    PwC said its 2017 GDP forecast remained unchanged at 0.7 per cent y/y. “To attain this growth forecast, we estimate that real GDP will expand by 1.8 per cent y/y in Q3 2017 and 1.1 per cent y/y in Q4 2017,” it stated.

    The firm said “This is plausible, given our expectation of a strong harvest season and sustained FX liquidity, which should support a broad-based economic recovery.”

    It, however, added that risks to its forecast include a decline in oil price and production, and policy disruptions, which could hamper investment flows to the economy.

     

  • Solid minerals sector can contribute 3% to GDP, says PwC

    I am quite optimistic that if the right steps are taken and the momentum is sustained, the solid minerals sector in Nigeria can contribute up to three per cent of the Gross Domestic Product (GDP) by 2025 as predicted in the current roadmap, up from a contribution of just about 0.5 per cent, the Advisory Partner and Mining Leader at PricewaterhouseCoopers (PwC) Nigeria, Cyril Azobu has said.

    Azobu said: “My vision for the sector is one that is profitable to all stakeholders and in which the Nigerian people are able to enjoy the maximum benefits possible ffrom these natural endowments.”

    He spoke against the backdrop of the upcoming Nigeria Mining Week  taking place in Abuja from October16-19, in which there is partnership between PwC, the Miners Association of Nigeria (MAN) and event organisers Spintelligent.

    The strategic mining investment platform will link investors, project developers, financiers, technology providers and government to share best practices and demonstrate the latest strategies to evolve the sector successfully.

    According to Azobu, several important developments in the mining sector in the last year bode well for the industry’s future.

    “Perhaps the most significant is the approval in August 2016 of a new roadmap for the sector by the government. This very important policy document has really set the tone for the development of the sector. Following from this, we have seen the constitution of the Mining Implementation and Strategy team whose duty is to co-ordinate the implementation of the roadmap and programme manage its execution.”

    “Furthermore, the Federal Government also approved N30billion Mining Intervention Fund. A significant proportion of the fund has gone into data gathering and a part of it is to go into capacity building for artisanal miners. We are also seeing the Federal Government making efforts to take advantage of some strategic minerals such as Steel and Bitumen but all of these are still in the early stages.”

  • Recession exit, a sign of growth – LCCI

    Recession exit, a sign of growth – LCCI

    Mr Muda Yusuf, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), says the country’s exit from recession is a signal that the country is growing.

    Yusuf said in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos that the development would change the perception of foreign investors on the Nigerian economy.

    The director-general called for policies that would truly align the country for sustainability of the growth.

    The News Agency of Nigeria (NAN) reports that the National Bureau of Statistics (NBS) in its report said that the nation’s Gross Domestic Product (GDP) grew by 0.55 per cent in the second quarter of 2017.

    It said the growth was an indication of country coming out of recession after five consecutive quarters of contraction since first quarter 2016.

    Yusuf however noted that the growth in the GDP could not on its own lead to direct impact on citizens.

    He said that this was due to the impact that still inflation had on goods and services coupled with the fact that salaries had not been increased.

    Yusuf therefore called for policy that would make people to feel the positive impact of the growth beyond the technical growth of moving out of recession.

    “It is very good that we have a situation where we are out of recession. It is one thing to be out of recession and another thing for both the investors and citizens to feel the impact.

    “We need to look beyond getting out of recession and take into consideration other important factors that could impact on the private sector performance and on the welfare on the people.

    “This is because the GDP numbers on its own will not bring about this kind of impact.”

    Yusuf said that the government also needed to address investment environment issues such as power, transportation, cost of funds, foreign exchange management, tax and trade policies.

    Yusuf added that those policies needed to be truly aligned and be reviewed to ensure the sustainability of the recovery the nation was now experiencing.

    He said that there was also an urgent need to address the situation of high cost of goods and services since there had not been increase in incomes to cushion the effect on the citizens.

    “For individuals, we need to look at what will improve the citizens’ welfare because the GDP on its own can not bring about the improvement and may not directly impact on the people.

    “It is important that the government looks at policies that can directly impact on the welfare of citizens, especially on the cost of food, health care, transportation and education.

    “So, beyond the technical exist from recession, we have to look at policies such the foreign exchange policy, interest rate policy, trade policy, investment policy and tax policy.

    “We need to get all these right to ensure we sustain the current exit,” the LCCI boss said.

  • Nigeria needs N20tr investment to drive growth, says report

    Nigeria requires at least an investment of 20 per cent of the Gross Domestic Product (GDP) per annum, far above the investment level of 12.6 per cent of GDP this year, to drive growth. This translates to an investment of $55 billion, or N20 trillion, reflecting that the country would have to nearly double its current investment level.

    These findings are contained in an economic paper recently released by PwC Nigeria, titled: Boosting Investments: Nigeria’s Path to Growth, which estimated the size of investment needed to drive growth. It was authored by PwC’s Partner & Chief Economist Dr. Andrew S Nevin, and its Senior Manager & Economist, Adedayo Akinbiyi.

    To reach its conclusions, the paper conducted an extensive review of economic literature, and analysed a panel data of 13 emerging economies between 1991 and 2016. The analysis revealed that investment is the most fundamental driver of growth.

    According to PwC, growth in Nigeria has been relatively strong at an average of 5.6 per cent per annum over the past decade. It however, said that this has been fuelled by the oil boom and population expansion, rather than investments.

    Nigeria is projected to be third largest populated country in the world by 2050, with 399 million people. But PwC projected that Nigeria could emerge the 14th largest economy in the world by 2050, with GDP in Market Exchange Rate (MER) terms at $3.3 trillion.

    “To deliver sustainable growth with per capita gains, Nigeria will need to aggressively boost domestic and foreign investments over the next decade,” the report, which was made available to The Nation, said.

    The report observed that at moment, Nigeria’s investment rate ranks below peers. For instance, between 2007 and 2016, Nigeria’s investment share of GDP declined from 18.7 per cent to 12.6 per cent, reaching the lowest level in the past two decades.

    “In comparison to peers, Nigeria’s investment rate lags the average of 23.3 per cent recorded for sub Saharan African countries, and 28.9 per cent for the BRICS (Brazil, Russia, India, China, and South Africa),” PwC said.

    PwC Nigeria, which delivers quality in assurance, advisory and tax services, added that academic literature suggested a strong nexus exists between the level of investment and economic growth, citing China and India as examples of economies that have successfully attained investment-led growth.

    The firm noted that the foreign exchange regime remained key to stimulating investment and restoring growth. It stated, for instance, that if Nigeria’s N2.2 trillion capital budget for 2017 is channeled towards investments, it would only meet 11 per cent of the estimated funding to bring investment as a share of GDP to 20 per cent.

    The report said: “In Nigeria’s Economic Recovery and Growth Plan (ERGP), which aims to attain important infrastructure targets within the next three years, the government acknowledges its limits and emphasises the need for private investment to drive infrastructure development.

    Our report, which examined the ERGP, identified two critical factors for unlocking private investment namely, improving the business environment, and having a sustainable foreign exchange regime.

    “We note that the country has made some progress towards improving the business environment through several reforms, including a 60-day action plan implemented over the past six months.

    “However, more needs to be done, in particular, with respect to paying taxes, getting access to electricity and other infrastructure, which are critical to bolster investment.”

    While also noting that foreign exchange liquidity has improved in recent times as the Central Bank of Nigeria (CBN) allowed for more flexibility in the foreign exchange market, PwC however, argued that the existence of multiple exchange rates with significant variances posed a risk to investment.

    “In our view, a market-determined exchange rate, where all rates are harmonised, is fundamental to boosting domestic and foreign investments,” the report emphasised.

    In 2016, the economy slowed markedly, falling into a recession for the first time since 1991. Real GDP contracted 1.5%y/y, a reflection of the two-and-a-half year decline in export earnings, and fall in government’s revenues, which impacted consumer spending and investments.

    Perhaps, the most evident impact of the sharp decline in the oil price was in the currency market, with the NGN/USD depreciating 35.4 per cent in the official market and 47 .3 per cent in the parallel market during the year.

    Aside the depreciation of the currency, the illiquidity in the foreign exchange market impacted the business and investment environment, with Foreign Direct Investment (FDI) declining to an 11-year low, and a collapse in investment as a share of GDP to 12.6 per cent – the lowest level in the past two decades.

  • Ministry targets $27b contribution to GDP by 2025

    The Ministry of Mines and Steel Development will contribute 27 billion dollars (about N9.7trillion) to the Gross Domestic Product (GDP) by 2025, it was learnt yesterday.

    The ministry stated this in its Road Map in Abuja, adding that the contribution would be achieved in three phases.

    It said the phase one was to stabilise the sector and rebuild the country’s market confidence between 2016 and 2018.

    According to roadmap, the second phase will focus on establishing Nigeria as a competitive African mining and mineral processing centre from 2016 to 2020.

    The ministry said the third phase would will enable Nigeria compete in the global market for refined metals and minerals from 2018 to 2030 in addition to selected ore exportation.

  • Recession: Economist warns against laxity in implementation of policies

    Recession: Economist warns against laxity in implementation of policies

    An Economist, Prof. Chika Aliyu, has warned stakeholders and players in the economy against laxity in implementing the economic plans and policies to get the country out of recession.

    Aliyu, a researcher in Development Economics at Usman Dan Fodio University, Sokoto,  gave the advice in an interview with the News Agency of Nigeria (NAN) in Abuja on Monday.

    He said stakeholders should be focused in implementing the Economy Recovery and Growth Plan.

    “If there is strong determination, real implementation of the outlined strategies and more economic measures; the country will be out of the recession soon.

    “The time frame fixed can be maintained but if there is any laxity and lukewarm attitude from all stakeholders and players, then the period is likely to go beyond already projected time frame.

    “Our Monetary Policy Committee has to come up with policies to re-strategise the economy.’’
    Aliyu said that the Federal Government should do more to diversify the economy, especially in agriculture and other key sectors.

    “We are in rainy season; people should go into farming, government should inject money and empower people to farm.

    “The more people go into agriculture, the rate of growth of Gross Domestic Product (GDP) will definitely rise and the economy will be out of recession,’’ he said.

    The don, however, said that the recently released GDP report for the first quarter of 2017 had a lot of implication on the economy.

    The National Bureau of Statistics said the nation’s GDP contracted by -0.52 per cent (year-on-year) in real terms in the first quarter.

    The bureau stated that it represented the fifth consecutive quarter of contraction since first quarter of 2016.

    “This has a lot of implication on the economy;  if the recession is on short term, the economy will be picking and correcting itself.

    “It will be picking up and correct itself at least, first quarter, second and up to third quarter, we will be out of recession,’’ he said.

    Aliyu said that what the economy showed now was that more needed to be done because contraction in the GDP indicated that domestic productivity was going down.
    “ The economy is in need of more of diversification; we should turn away from oil and concentrate more on the productivity sector.

    “People should be doing well in other sectors like agriculture, mining, tourism, recreation activities and any area that is productive.

    “If the GDP is improving; economy is recovering very well and speedily, it will stabilise in the near future.
    “It will stabilise in future but if it is reversing and going back; this is not good for the economy.

    “It signals that more needs to be done and the areas already projected for the recession to end may spill over and go beyond the time limit already projected,’’ he said.

     

  • Using facility management to boost GDP

    Using facility management to boost GDP

    Unlike what obtains elsewhere, facility management (FM) is still in its embryonic stage in Nigeria. Stakeholders are worried that except urgent steps are taken, this real estate sub-sector may remain in limbo. They, however, predict that fortune may begin to smile on the local FM industry at the forthcoming World Facility Management Day. MUYIWA LUCAS reports

    It is not really be a major cash-cow for global economies for now; but, compared to its contributions to economies in more developed climes, its contribution remains a sore point for operators in the local industry, giving many a source of concern. This is the unpalatable but true situation of facility management (FM) sub-sector of Nigeria’s real estate industry.

    Facility management, experts say, encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology.

    According to the International Facility ManagemenAt Association (IFMA): “FM is the practice of coordinating the physical workplace with the people and work of the organisation. It integrates the principles of business administration, architecture and the behavioral and engineering sciences.”

    While globally, the FM sector contributes at most between five and seven percent to developed economies’ GDP, it is estimated that in Nigeria, it is just a mere 0.01 percent.

    For instance, the British Institute of Facilities Management (BIFM) valued the United Kingdom’s (UK) FM industry at approximately E111 billion, and employed almost 10 per of UK’s working population as at 2015.

    Similarly, BUILDINGS.com, a community of facility managers and building owners responsible for the operation of commercial and public buildings, reports that a survey from BOMA: “Where America Goes to Work: The Contribution of Office Building Operations to the Economy, 2014,” showed that in 2013, the 10.4 billion square feet of office space within the areas covered by BOMA International’s local associations created $82.4 billion in operating expenditures to the benefit of local businesses and workers. It further explained that the study, which covered workspaces for around 46.6 million people, demonstrates that for every dollar spent on operations and maintenance, the national economy gained $2.76, resulting in a contribution to the American GDP of over $227 billion in 2013. The study further showed that the operating costs also supported over 1.8 million direct, indirect, and induced jobs, including nearly 32 per cent directly related to building operations. BOMA’s study submitted that additionally, each dollar spent in the FM process helped American workers realise an additional 87 cents in personal earnings. The study covered a wide variety of buildings, including those occupied by tenants, owned by tenants, and government facilities.

    “While the construction of new office buildings is often noted as providing important economic benefits, once this construction is completed and these new buildings are occupied, the economic benefits of their operations continue for the life of the building,”says Stephen S. Fuller of George Mason University, lead author of the report.

    The Managing Director of Alpha Mead Facilities (AMF), Mr. Femi Akintunde, while lamenting the low contribution of FM industry to the nation’s GDP, explained that for the nation’s GDP  to reap from the sub sector, both the government and the private sector should engage in  massive investment in  infrastructure development. This should include but not limited to roads, bridges, telecommunications, airports, waterways and seaports. He added that investment in social infrastructure such  as health, education, judiciary  and  legal system, among others, remain very germane.

    “The number of  activities and jobs generated  in London’s underground; water treatment , production and distribution, road networks, electricity production and distribution has witnessed  a lot of investment. But it is not like that in Nigeria,” he regretted.

    According to Akintunde, the low contribution of FM  to the nation’s GDP can also be traced to the low level of awareness on the part of many stakeholders, a situation he noted has left real estate management on the fringes. For instance, he said, several numbers of commercial and public buildings are without efficient fire equipment and functional lift system.

    He also blamed the government and owners of commercial real estate assets for  low budget for facility management. “Budget for facility management is very low, but in abroad, there is framework. We are not paying enough to allocation to security issues and asset . There is need to put structure in measuring the level of FM development in the country,” he said.

    The AMF boss also identified lack of regulatory and statutory provision that would compel owners of assets to be alive to their responsibility of improving the quality of  their assets, pointing out that many are without efficient fire equipment, clean toilet and functional elevator, among others.

    “There are certain statutory requirements in advanced countries  that  make you  pay  more attention to the quality of your asset, especially if it is seen as a commercial and public building  where people go in  and out. How many times have we had fire incident in high rise buildings which do not have functioning fire equipment to fight the fire? How many offices and government’s ministries have you gone to and feel comfortable to use their toilets?” he asked rhetorically.

    The Chairperson, BIFM,  Nigeria  Region, Mrs  Wale Odufalu, agreed with Akintunde. She explained that there was a need to drive a culture of compliance through self discipline, healthy competition, knowledge sharing and benchmarking to grow the FM industry in Nigeria.

    Urging professionals to adhere to standards and global best practices, Odufalu said that is the only way Nigeria  as a country, and practitioners as a body, can fully benefit from the practice. Property owners, she advised, should also pay attention to maintaining their assets because doing so will guaranty them good and steady returns on their investments.

    And as part of its awareness  cross  Africa, Akintunde said it was the reason his firm held its FM roundtable in Accra, Ghana, as part of the commemoration of 2017  World FM Day with the theme:  “Enabling positive experiences.” He said the forum provided opportunities to highlight how the industry plays an integral role in positive customer, client and employee experience in all sectors.

    The key highlights at the event included media interaction, social media engagement, and award of excellence and recognition for individuals and corporate bodies that has contributed significantly to the development of the profession in countries where the event has held in the past.

    The keynote speaker for the event Archbishop Duncan William, noted a deep quality experience in how to create wealth from building quality real estate assets and sustaining them.

    The forum also featured technical paper presentations from Akintunde; the Managing Director of NTHC Properties Limited, Mr. Jerome Eshun. It offered a viable platform for key stakeholders in the Ghana real estate sector to share ideas, strategise and deliberate on issues affecting the industry and practices in the country.

    FM covers these two main areas: ‘Space and Infrastructure’, that is, the physical built environment with focus on work- space and building- infrastructure (such as planning, design, workplace, construction, lease, occupancy, maintenance, furniture and cleaning) and ‘People and Organisation’ (such as catering, ICT, HR, accounting, marketing, hospitality-that is the people and the organisation and is related to work psychology and occupational physiology.

    The World FM Day is an initiative led by Global FM – a worldwide alliance of member-centered Facilities Management organisations, providing leadership in the advancement of the FM profession through institutions such as the BIFM, IFMA, Facilities Management Association, Australia; and several others around the world.

  • Nigeria to Partner UNWTO, CNN to Promote Tourism

    Nigeria to Partner UNWTO, CNN to Promote Tourism

    The Federal Government has announced a tripartite partnership involving the Federal Ministry of Information and Culture, UN World Tourism Organisation (UNWTO), and global news leader, CNN to promote tourism in Nigeria.

    The Minister of Information and Culture, Alhaji Lai Mohammed, announced the plan at the Annual General Meeting of the Nigerian Association of Tour Operators (NATOP) in Lagos on Tuesday.

    He said the partnership would leverage on Nigeria’s film industry popularly known as Nollywood.

    Mohammed said that talks were at an advanced stage to forge a “very strong and effective partnership to use our comparative advantage in film production, through Nollywood, to promote tourism in Nigeria’.

    “This is a path we have not trodden before, but which we are sure will go a long way in making it possible for us to push tourism from the back-burner to the mainstream of the economy,” he said.

    Mohammed said that more details of the partnership would be provided in the days ahead.

    He appealed to tourism stakeholders to work with the Federal Government to ensure the success of the 2018 UNWTO CAF Meeting to be hosted in Abuja.

    Nigeria won the hosting right of the meeting at the last edition of the meeting in Addis Ababa, Ethiopia, in April.

    ”As many of you are aware, Nigeria recently won the right to host the annual UNWTO CAF Meeting in Abuja in 2018.

    “Yes, this is not the first time Nigeria will be hosting this meeting, but this time we must leverage on the meeting as a platform to promote Nigeria as a preferred tourism destination,” he said.

    The minister urged the private sector to partner with the government to grow the tourism industry and provide the necessary skills, competencies and ingredients for growth and progress.

    “Stakeholders are also invited to package and promote Nigerian destinations, goods and services.

    “This will create direct and indirect employment through tourism, grow the economy, increase the national GDP, position Nigeria as an all-year-round tourism destination and establish a worthwhile, acceptable and recognisable image of the country among tourists.

    “Let us all tour Nigeria, let us all consume more of made in Nigeria, and let us all know more of our heritage. Let us all celebrate Nigeria,” he said.

    Mohammed said as part of efforts to improve Nigeria’s ranking on the Tourism Competitive Index of the World Travel and Tourism Council, the government had set up a Presidential Council on the Ease of Doing Business.