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Tag: generate

  • Fed Govt to generate $2.558b from Badagry port

    Fed Govt to generate $2.558b from Badagry port

    •FEC okays project

    The Federal Government yesterday took another step to boost the economy through the maritime sector with the approval of the construction of the Greenfield Port in Badagry, Lagos.

    When the project, approved by the Federal Executive Council (FEC) yesterday is completed, it will pump no less than $2.558 billion into the economy, according to Minister of Transportation Rotimi Amaechi.

    Amaechi, Minister of Information Lai Mohammed and Minister of Works, Power and Hosing Babatunde Fashola briefed reporters on the outcome of the FEC meeting, presided over by President Muhammadu Buhari.

    Ameachi said there will be no government involvement in the project that it would take five years to construct it from the end OBC and FBC concessional agreement.

    “In this period when we are looking for foreign exchange, it is going to bring a total of $2.558 billion into the system and federal and Lagos State government would not contribute financially other than the land given by the  state government,” he said.

    The FEC also approved the Multilateral Competent Authority Agreement to prevent tax evasion and avoidance by multinational companies, among other benefits.

    Alhaji Mohammed said Nigeria has lost over N1 trillion to tax evasions by multilateral companies.

    He said: “In respect of the first memo which is the memo for Multilateral Competent Agreement and the exchange of country by country report, the whole essence is to give the government a better grip on its tax laws and also to prevent tax evasions and avoidance by multinational companies.

    “Where multinational companies operate in more than one country, it is quite easy for them to move profit from one territory to another territory where the tax laws is very favourable to them.

    “And what has happened over the years is that the revenue companies have lost a lot of money. As at the last count over N1 trillion has been lost over a period of time and the revenue companies have found that they were losing more money in terms of tax evasion and avoidance than what they were even receiving as grants from multinational agencies.

    “So this is a law that provides that if a company like MTN or Nestle for instance, is operating in Nigeria, not only must he file returns on his activities in Nigeria, he must also file returns on his activities in every other country that they are doing business so that you can see from there whether there is any attempt to hide figures.

    “Apart from shoring up our finances, I think it is part of the fight against corruption and it also enhances transparency.”

    He said the approval for Greenfield port facilities in Badagry is the first step to approving the establishment of a new sea port in the country.

    The approval, he said, showed that Nigeria is still a very preferred investment destination in Africa despite the challenges it is facing.

    Fashola said the Multinational competence authority agreement is consistent with the macroeconomic policy of government to fund its operation and economy with more tax incomes.

    According to him, it will allow government to see how much taxable revenues are accruable to it especially from companies.

    He said: “It is for transparency and accountability on the private side of the economy because transparency and accountability has been focused perhaps a little more on the public side of our national life.

    “When you look at the profit that is coming from the private sector beaming the ray of transparency and accountability on revenues that should come into the public space and be used for national development only helps to strength the economy in the long run and bring probity across board.”

    Noting that the Badagry port was long overdue, he said the ports in Nigeria are behind in terms of technology in the maritime industry.

    He said: “There are bigger vessels now being built across the world that require larger depths and drafts berth. Now some of our competitors on the continent like Djibouti are building bigger ports, so if we don’t build this port, we risk becoming uncompetitive and we risk a threat to our maritime hub status in the sense that we may become a transshipment port instead of a port of original destination.”

    Stressing that the work on the port started in 2012, he said that all its financing is coming from the private sector.

    “Again that is consistent with what this government stands for in terms of allowing private capital and competence to come into the development of our infrastructure,” he added.

    He said the Badagry port was delayed because of the refusal of the last administration to grant approval for it as the port development was under Federal Government control.

  • How states can generate revenue from export

    Nigeria is in a state of economic downturn with some states unable to pay the salaries of their workers. This is primarily due to the fact that the states had mainly focussed on the allocations of incomes mainly from crude oil sales by the federal government. This resulted in a great concentration risk that have now crystallised into a major chaotic situation in which many of the state governments are now owing several months of salaries and also unable to meet other obligations.

    In response to this problem, the states are now planning to diversify their economies and focus on other sources of generating revenue. However, they seem to be focussing more on taxes and levies from populace who do not even have enough to take care of themselves and their families. The aim of this article therefore is to demonstrate how the Nigerian states can effectively generate foreign exchange revenue directly by exporting farm produce and commodities from their states.

     

    Building a working structure

    One area where a state government can leverage on its natural resources and the entrepreneurship of its people is in the area of building effective and working export platform. This will involve a public private partnership arrangement that involves the state government, a private organisation and the farmers in the state. In this arrangement, the state government forms a trading company in which it will own the majority shares. This company will buy the agricultural commodities from the farmers, prepares them for export, negotiates the export contract, ship the goods to the final destination and presents document to the importer’s bank for payment. The farmers form themselves into small groups of cooperatives registered with the state, cultivate the commodities needed for export, deliver them to the designated collection centre and sell them to the trading company. The state government provides lands for the farmers, trains the farmers in good agricultural practices, provides seedlings and gives them to farmers, agree a buying price with the farmers through the trading company and issue a payment guarantee that assures the farmers of payment within about 120 to 180 days after delivery to the designated collection centre.

     

    The dynamics

    I will briefly outline the step-by-step processes and decisions that will lead to creation of a viable export value chain. First, the state government must determine the commodity to be exported based on employment generation, profitability, export market demand and potential to produce locally in the state. Then, the state government will partner with farmers and consultants to train the farmers and monitor the practices on the farm. Thirdly, the state government partners with a private organisation to form a trading company. Then, the state government facilitates the aggregation of intending and existing farmers into cooperatives. After this, the state government engages a consultant to train the farmers in global good agricultural practices (Global GAP). Besides, the state government will need to provide seedlings for the farmers and all other farm inputs. Also, the state government company will thereafter issue a purchase order to the farmers stating that payment will be made within 120 days after delivery to the designated collection centre and the state government will also issue request for the issuance of a payment guarantee from a commercial bank in favour of the farmers.

    On the part of the trading company, it will look for buyers, negotiate and sign the export contract. The trading company receives reviews and accepts the terms of the letter of credit. The farmer cultivates the crop and delivers the harvested commodities to the designated collection centre. The trading company prepares the goods for export, do all the pre export documentations and deliver the goods to the shipping line. After, the trading company ships the goods and deliver this shipping document to the local bank. The local bank sends the documents to the importer’s bank abroad for payment based on the terms of the letter of credit. The importer’s bank effects payment within the period stipulated in the letter of credit. The local bank receives payment and credit the account of the trading company.

    The state government sells the foreign exchange to the local bank to get Naira. The state government pays all the cooperatives that supply the commodities based on the agreed price in the purchase order. The state government pays the private organisation in line with the shares it holds in the trading company and then, the state government can then utilise the balance to fund her budget. Meanwhile, some of the roles apportioned to the state government in this dynamic can be done through the trading company set up by the government.

    For questions on this thought, you can reach me via email to bayemibo@3timpex.com.

  • ‘Lagos hospitality sector can generate $3b yearly’

    The hospitality industry in Lagos State can generate over $3 billion yearly if the government addresses the security and infrastructure challenges facing the sector, the Managing Director/Chief Executive Officer, International Maximum Resources & Chemical Industries Limited, Prince Madugba Raphael, has said.

    He said a feasibility study by a firm commissioned by his company showed that tourism/hospitality business in Nigeria, especially in Lagos, is very lucrative, adding that Lagos alone is capable of earning over $3 billion yearly, if the government can fix the energy sector.

    Madugba said unlike other sectors, the hospitality industry is the most adversely affected by the crisis in the energy sector. “It (energy crisis) affects us more than any other sector. In the banking sector, their generators will be on from probably 7 o’clock till 10 o’clock and they power down.

    “The ATMs (automated teller machines) operate with solar. But the hospitality business is 24/7 run on electricity. You don’t power down. Even if it is one guest you have, he expects you to put on the generator for him and he is right, because you have already told him that you have 24-hour electricity supply. So, it’s affecting the industry in every area; it affects profit margin because of the cost implication,” he said.

    He said because of the crippling effects of high cost of operations due to lack of electricity, hotel owners have been forced to adjust. “Sooner or later most of us, who claim that we will give you light 24/7, will have to adjust because it’s difficult to survive in a situation where you buy diesel at N180 per litre,” he said, noting that 50 litres, which probably cost N6, 000 before now go for as high as N9, 000.

    “It’s difficult to do business in Nigeria. The environment is not friendly. If you want to begin any business, you must have nine lives to survive; it all depends on your determination, the zeal and energy you put into it.  In the course of that you will lose money, because there are a lot of people that will come to extort you. But if you don’t give up you will get to the Promised Land,” Madugba said.

  • Firm to generate 50 megawatts

    A foremost international solar energy company, Asteven Solar Nigeria, has promised to create 500,000 direct jobs by accelerating access to affordable power solutions to Small and Medium Scale Enterprises (SMEs) through specially designed channels.

    The company has concluded arrangements to generate 50 megawatts of electricity through solar energy in the next two years.

    The Managing Director, Dr Sunny Akpoyibo, said this in an interview on the sidelines of the Nigeria Energy Forum 2016.

    He explained that portable solar systems of various capacities would supply power needs to existing SMEs and also spur new ones in the fields of technology, agriculture, education, health and business owners.

    Akpoyibo observed that Nigeria could bridge its energy gap by strategically leveraging on renewable energy, especially from solar that is in abundant supply.

    He added that the company had signed a Memorandum of Understanding (MoU) with Green Energy Finance International Limited to implement a model that guarantees affordable flexibility to make low-income earning Nigerians acquire the power system.

  • ‘Basic registry to generate 10m jobs’

    A consultant to the National Population Commission, Dr Anthony Uwa, has said the implementation of Basic Registry and Information System in Nigeria (BRISIN) will generate over 10 million jobs and enhance economic development.

    He told reporters in Abuja that BRISIN, also known as the National Integrated Data and Information Infrastructure (NIDII), would enhance economic development if effectively implemented.

    According to him, BRISIN is the panacea for the nation’s socio-economic and environmental crisis.

    Uwa said BRISIN would give the managers of economic policies a clear vision and knowledge of how to get things done.

    He explained that the programme would create over 10 million jobs in a few years when fully implemented.

    “BRISIN is a job creator and when embraced by any nation, it would enable it to create a lot of jobs because all aspects of its sectors will be monitored by the programme.

    “BRISIN is an infrastructure a country can build from the local, state and federal governments that will give it opportunities of knowing her economy as well if it is well planned,’’ he said.

    He added that with data and information, ministries, agencies and departments would benefit from the project.

    He said past administrations failed in their various policies because they did not have BRISIN that would have guided them to plan and execute their policies.

    He listed lack of publicity, funding, and delay by the Federal Capital Territory (FCT), which is the pilot state, to provide facilities for the start of the programme, as challenges facing BRISIN.

  • Egbin to generate 2670Mw by 2019

    Egbin to generate 2670Mw by 2019

    Sahara Energy Group and its technical partner, Korea Electric Power Company of Nigeria (KEPCO), have promised to increase Egbin Power Plc’s capacity by 1350 megawatts (MW)  to bring its cumulative installed output capacity to 2670MW by 2019. The plant currently  has an installed capacity of 1320MW.

    Sahara Chairman Kola Adesina made the pledge last weekend when President Goodluck Jonathan commissioned the rehabilitated sixth steam turbine of the plant with 220MW capacity.

    Kola said: “We have commenced an ambitious plan to double the capacity of Egbin within the next four years, with the addition of 1,350MW Combined Cycle plant of which we have commissioned the Front End Engineering Design Study (FEED). All these have been possible because of your Excellency’s commitment to the power sector reforms and dogged determination to give our citizens a new lease of life through the provision of reliable power supply.”

    He said besides repairing unit 6, the company has also carried out the overhauling and retooling of Unit 4, which lost 20MW out of its 220MW capacity. Egbin is the largest power plant in West Africa comprising 6 x 220MW units of turbines with a total capacity of 1,320 MW. The Egbin Power Plant is critical to the nation as it accounts on a daily basis for about 20 per cent of the power generated in the country, he added.

    Adesina said: “Mr. President, the Unit that you are here to commission is an example of the benefits that privatisation of the power sector is bringing to our nation Nigeria.  The unit broke down in 2006 and for seven years could not be rehabilitated due to sundry challenges. On handover of the Egbin Power Plant to its new owners, KEPCO and Sahara Power Group in November 2013, we immediately made its rehabilitation a priority culminating in completion of the repair works.

    “Recognising the importance of commerce and industry to your transformation programme, Egbin unit 6 output is to be made available under an innovative bilateral commercial arrangement to Eko and Ikeja Electricity Distribution Companies to help improve power availability in Lagos and its industrial outskirts. We are indeed leading a new dawn in job creation within Lagos and its environs; and fostering gains in the gross domestic product of the economy and reduction in crime rates.

    “In addition, supporting the ideals of a cleaner and greener state, with reduced use of generators leading to healthier environment and improved quality of  life and also achieve the noble objectives and unravel the bottlenecks in the power supply value chain, we seek government’s help in terms of gas availability and expansion of the transmission network. In the light of paucity of funds faced by the government, the hands of the private sector need to be strengthened by allowing significant investment in both the transmission and gas infrastructure. With appropriate models and investment recovery mechanism, this holistic public, private partnership (PPP) approach will engender a faster, cheaper and more productive result in rapidly growing value chain.”

    Adesina stated that by what the new management of Egbin has done; over 1 million homes in Lagos will enjoy additional six hours per day of stable power supply. Over 6,000 direct jobs, over 10,000 indirect employment, will be created in terms of support and maintenance services, engineering, procurement, supplies to power sector, including support for the Small and Medium scale industries.

    “The new owners and managers have worked closely together to resolve some of the age-long legal, technical, commercial, regulatory and funding issues besetting the sector. We crave for more enduring mutual cooperation among all the market participants. Whilst the central goal for us is to meet the needs of our customers, we enjoin our ombudsman Nigerian Electricity Regulatory Commission (NERC), to kindly regulate with empathy. Life and living can be more exciting when we work together,” he added.

  • ‘Three councils to generate cash for Taraba’

    ‘Three councils to generate cash for Taraba’

    Three local councils have been identified as inexhaustible sources of revenue or what is popularly referred to in business as cash cows. One of the councils is Ibi in the southern part of the state known for the famous Nwonyo  Fishing Festival.

    Another revenue source is Sardauna Council in the central area of the state where the equally renowned Mambila Plateau is located.

    The third is Yorro on the northern tip of the state, where you find rocks so neatly arranged that you might think some ancient hands placed them there. Yorro rocks remind visitors of those in Plateau State.

    Who identified these cash cows? It was Darius Dickson Ishaku, who is running for governorship of the state on the platform of the Peoples Democratic Party (PDP).

    Some have said his campaigns have been issue-based and innovative, from house to house. He has toured the entire state canvassing support and eliciting votes. During the campaign tours, he had firsthand information on the nature of the state, popularly called Nature’s Gift.

    Ishaku said he believed those three councils could generate enough revenue to drive the state. So why not develop the tourist havens?

    Ibi council

      The attraction here is the Nwonyo Lake, which has produced the biggest fish in Nigeria. The fishing festival is a tourism product that has put the country in world reckoning. The lake has been the identity and heritage of southern Taraba people for 101 years now. A tributary of River Benue flows into it, covering a distance of about 10km. Most of the aquatic creatures from the main river course take asylum at Nwonyo due to its cool and serene habitat and the fact that the lake is a reserve. The main business of the festival is the fishing expedition.

    But there is also the search for turtles and crocodiles. Boat regatta, horse race, traditional wrestling, masquerades and cultural dances are other exhilarating attractions that herald the day. The atmosphere is generally that of a carnival. The catcher of the biggest fish is usually rewarded with a car prize. The biggest catch ever at Nwonyo has been the Nile Porch fish, known in Hausa as Giwa Ruwa by Hudu Yakubu which weighed 280kg.

    The state, however, has not been spinning the kind of currency it desires to derive from the fishing festival and other tourists attractions. And the socio-economic lifestyle of more than half of the natives in Ibi  and its environs contrasts sharply with the nature’s benevolence. Ishaku said he will rebrand it to yield economic benefits. The candidate is not happy that Taraba is richly blessed with natural endowments, but its people are wallowing in misery.

    Sardauna council

    In Sardauna, the ‘great’ Mambilla Plateau and other beautiful mountains are the essence, as far as tourism is concerned. And that was the reason why the candidate began his campaign at the Mambilla Plateau, a breathtaking 1,840 meters above sea level.

    He said the plateau is one of the greatest tourist destinations in Africa, with the best climate in Nigeria. Being the most accessible high altitude, offering the largest and most impressive eco-system sights, Ishaku said he will build a world-class holiday resort in the area where world presidents shall be going to enjoy their holidays.

    One favourable factor for this the temperate weather which does not exceed 25°C  all year round.

    Ishaku said, “The plateau will become an ideal place for hosting ECOWAS Summits. I believe participants who would come across West Africa would love to visit some of the exciting historic sites on the mountains and the plateau.

    Besides the captivating mountains, the fields look beautiful, with evergreen lengthy belts of tea plantation and gallery forests that inhabit beautiful birds, chimpanzees and little mammals that tourists love to watch.

    To achieve this, Ishaku said he has to complete the Mambilla Hydroelectric power dam which is to generate 3050 megawatts electricity. The people of Mambilla Plateau had confronted the candidate with seven demands. But the former minister of Niger Delta Affairs told them that the hydroelectric dam shall be their life wire when completed.

    “The venue (Mambilla Plateau) for this rally is deliberate because of President Goodluck Jonathan’s efforts to complete the Mambilla Dam project.

    “The Mambilla Hydroelectric Dam project had been on the drawing board since 1960. It was when Jonathan came on board that the project came to fruition. It can employ many youths in Sardauna and other parts of the state.

    “After voting for Jonathan on February 14, you must vote me on February 28, because I was the one the president sent to work on the dam project when he appointed me as minister of state for Power,” he told a curious mammoth crowd at the Mansur Stadium in Gembu, headquarters of Sardauna local government area.

     Yorro (Northern Taraba)

    Yorro is another council area in the north of Taraba identified by Ishaku as a tourist haven. But it is usually difficult getting to Yorro, because of bad roads. The absence of road alone can scare a tourist, especially a new comer. Here, the sun can rise piercingly and ferociously sharp above 45°C. The dust and searing heat can also put a visitor to flight. But while in Yorro, you will marvel at what nature has offered the state. The blazing heat becomes dissipated in the shadows of hills and inselbergs. Some of the hills are a heap of stones or boulders. You will think a human being arranged them. In some areas a boulder is perfectly placed on another, as though it would fall, but it has been there for thousands of years, according to the natives. Like in Gembu, you can see the rock with giant footprints of an unnamed ancient warrior. Another rock looks like a woman and her daughter, without any application of art work.

    The vegetation is beautiful too, a mix grill of Guinea Savannah shrubs and desert tree species. These plants have the abilities to adapt to both dry/hot and wet/humid seasons using both physical and behavioral mechanisms to endure, resist and or retain water. Saguaro, Joshua tree and Palmyra palm trees are good examples.

    One major setback for these tourist havens is woeful roads.

    Ishaku said he would build those roads if elected.

    “Roads and other infrastructural facilities must be built in these tourist areas to speed up massive development,” he said. The candidate said he believed that when this is done, the people would be more united and bridged closer to their cultures. The tourism, which he referred to as an “effervescent industry,” shall create wealth for the people.

    Ishaku, who was ferried via local boats when crossing from Lau to Karimlamido, made a covenant with the electorate. “Do you want roads? Do you want development?” When the crowd answered in the affirmative, he solicited: “Give me your votes and I will build beautiful roads for you; I will complete the Mambilla Hydroelectric Power Dam; I will rebrand tourism in Taraba.”

    Good news! President Goodluck Jonathan, during his presidential campaign in Jalingo, said he has released $1 billion of the $1.5 billion contract sum, through counterpart funding for the Mambilla dam project.

    “The contractors are already on the site. The Mambilla dam is the best in West Africa. We shall develop it with top grade infrastructure for all African presidents to be going there to holiday. I believe this would generate revenue for the state,” Jonathan said.

    Acting Governor Abubakar Sani Danladi also assured the people that Ishaku is an architect while his running mate, Haruna Manu, is an engineer. “These technocrats will design and reconstruct a beautiful Taraba for us,” Danladi said.

    The people will decide on February 28, whether they want Ishaku to ‘beautifully’ transform Taraba, or not.

  • E-commerce market to generate $10b yearly

    The e-commerce market, which is enjoying robust growth on the back of increased internet access and improved mobile connectivity, is expected to generate $10 billion yearly, Minister Communication Technology Mrs Omobola Johnson has said.

    An FBN Capital report released at the weekend, quoted the Minister as saying that the figure is based on industry reports of 300,000 online orders  placed daily.

    It said the Nigerian Communications Commission (NCC) figure put active internet subscription in the third quarter of last year at 73.9 million, representing an internet penetration of 43 per cent in the same quarter.

    It added that the Central Bank of Nigeria’s (CBN’s) cashless policy has also played a role in facilitating growth in electronic commerce by emphasising the use of e-payment systems.

    It said while electronic transactions remain dominated by the use of Automated Teller Machines (ATMs), there has been very strong growth in online purchases through leading industry players such as Konga, Jumia, Wakanow and Quickteller.

    “However, online retail shops still have challenges with payment methods as customers prefer to pay for products when delivered (cash on delivery). This is, particularly, due to concerns over fraudulent activities. Jumia disclosed that 60 per cent of its orders come from Lagos with mobile phones and fashion products dominating purchases,” it said.

    The investment and research firm said the rise in processed orders by online retailers as well as the need for efficient delivery of products has led to an awakening of Nigeria’s postal and courier industry. Online retailers are partnering with courier operators to meet customer demands.

    “On a macro note, strong growth in e-commerce could increase visibility while reducing cost for SMEs, as well as generate jobs. It also bodes well for fiscal revenue collection through an expansion of the tax net,” it added.

    Nigeria has over 63 million internet data subscribers; 11 million Facebook users and fourth fastest growing number of users worldwide. On Twitter, the country has 1.6 million profiles while 1.03 million business profiles and an unconfirmed number of professionals are hooked to LinkedIn.

     

  • ‘Maritime sector can generate N7tr revenue’

    ‘Maritime sector can generate N7tr revenue’

    Maritime lawyer and former President, Nigerian Bar Association (NBA) Mr Olisa Agbakoba has said the maritime sector, if properly managed  could generate N7 trillion revenue yearly.

    He berated successive adminstrations in the country for focusing on oil. He urged any political party that  wins the February elections to  harness  the wealth  in the sector to create jobs and sustain the economy.

    Addressing reporters in his office yesterday, he said the maritime sector can boost the economy if its potentials are adequately harnessed by the government.

    He said the country has limitless business opportunities in the maritime sector consisting a vast coastline of over 800 kilometres, an exclusive economic zone of well over 200 nautical miles, navigable inland waterways of 3,000 kilometres, six major seaports, 11 oil terminals, over 170 private jetties and six major inland container depots that could be used to develop the country besides its oil revenue.

  • World Bank to generate 7,000 jobs in Bayelsa

    World Bank has concluded arrangements to employ 7,000 youths in Bayelsa State, through its State Employment and Expenditure for Results (SEEFOR) project.

    World Bank’s Task Team Leader (TTL) for SEEFOR, Mr. Jens Kristensen, said in Yenagoa at the weekend that the initiative would generate the jobs in 2018.

    He spoke during the team’s visit to facilitate the effective implementation of the project in the state.

    Kristensen said SEEFOR would engage about 1,200 youths next year in social work, such as refuse evacuation, road management and maintenance.

    He said others would be trained in trading activities to make them self-reliant.

    Kristensen said: “The youths will be made self-relevant to enable them employ others. With the progress so far made, the state will have no excuse in the implementation.

    “A keen interest should be placed on the key component of the project, which is employment generation.

    “We urge our technical committees to work hard to improve the lives of youths in Bayelsa State.”

    Commissioner for Budget and Economic Planning, Mr. Ambrose Alfred, said SEEFOR was in line with the restoration agenda of Governor Dickson.

    Ambrose, whose ministry oversees the initiative, said government had shown commitment for the project by releasing its counterpart funding.

    According to him, government paid N150 million counterpart fund last year to demonstrate its desire to eradicate unemployment and improve standard of living.

    “We enjoin youths to take advantage of the opportunities that the SEEFOR will offer”, the commissioner said.