The Nation Newspaper

Tag: Gross Domestic Product (GDP)

  • Diversification: Steel industry to the rescue

    If well harnessed, Nigeria could earn $3 billion in foreign exchange from the steel industry. In this article entitled: “Reviving Nigeria’s steel industry for economic development”, Frederick Owonka, identifies the industry as one of the major pillars of the diversification efforts of the President Muhammadu Buhari administration.

    Thanks to corruption, poor management, sponsored sabotage and fake news/barriers created by competitors/importers afraid of competition, professional litigants, many industrial initiatives have either collapsed or were abandoned. Nigeria’s steel industry is one of the key economic sectors abandoned by the past administrations in the country, and no reasonable government can afford to see such huge investments go into waste.

    Since the Buhari administration was elected into office in 2015, the country has witnessed a rigorous and well-focused commitment to revive the country’s abandoned industrial projects. The steel industry is one of the major pillars of Nigeria’s economic diversification efforts. Undoubtedly, the Buhari administration has demonstrated real commitment to this national endeavour.

    Local production of steel will significantly reduce Nigeria’s importation of steel and save Nigeria a minimum of $3 billion dollars in foreign exchange per year. In a world that has grown furiously competitive, no nation can afford to rely on one export commodity. It is, in fact, no longer safe for Nigeria to depend entirely on oil as the main revenue earner.

    One of the key objectives of privatisation is the desire to achieve efficiency and profitability. Besides, the success or failure of privatisation also depends on the technical experience and competence of the investors taking over public enterprises.

    Premium Steel and Mines Limited, fully owned by Nigerians with 50 years of successful track record in key sectors & major industries of the economy is making impressive progress in terms of achieving Nigeria’s economic diversification initiatives.

    According to the Managing Director and Chief Executive Officer (CEO), Prasantra Mishra, Premium Steel and Mines Ltd, will produce 50 per cent of Nigeria’s steel needs in the first phase of manufacture.

    With its facility at Ovwian, Aladja, Delta State, the company has pledged to meet more than 50 per cent of steel products need during the first phase of production. Premium Steel has been allocated Iron ore mines in Kogi and will commence mining soon. Mr. Mishra, who announced this at the official commissioning of the steel and mining facility, said it was high time “Nigeria, sustainably and inclusively converged with the rest of the world to enhance industrial and Gross Domestic Product (GDP) per capita income.

    Mishra explained: “We are touching the lives of the local communities, particularly through accessible and affordable healthcare, employment, women empowerment, education and sustainable development.

    It is not enough for investors to make profits, but they should also make positive impact on the lives of the communities where they serve. In line with this objective, Mishra noted that his company is committed to Nigeria’s industrial and economic revolution to lay the foundation of efforts to address poverty and inequality by creating job opportunities, and wealth creation.

    The former Delta Steel Company (DSC), which was estimated to produce 1.2 million tons of various steel products per annum, is currently being run by Premium Steel and Mines Ltd.

    Backed by sound experience, these local investors have remarkably transformed the former DSC into modern industrial success story. The company is now retooled with state-of-the-art equipment and “it is ready for competitive production as the wheels spin once again”.

    Ranked as one of Nigeria’s best steel mills to produce the BS 4449 grade steel, Premium Steel has the capacity to produce high capacity and quality products to be used for high-rise buildings, bridges, flyovers, malls due to its tough mechanical and remarkable strength.

    No less important government support is essential to the success of the investors. Mishra praised the Buhari administration’s industrial transformation agenda, describing it as the “prerequisite for economic development and sustained per capita income. He also recognized the dynamic leadership style, guidance and support of the Mines & Steel Development Minister, Dr. Kayode Fayemi, for what he called Fayemi’s ‘strong initiative.’”

    According to the minister’s road map for development, his ministry is capable of contributing $27 billion dollars to the country’s GDP.

    According to the road map, Nigeria’s aspiration was to be Africa’s mining mineral processing centre last year and in 2020; it seeks to make Nigeria compete in the global market for refined metals and minerals from 2018 to 2030 with the ultimate goal of achieving globally competitive mining sector.

    Read Also: Twist in the Ajaokuta Steel tale

  • No registered member of ALTON was sanctioned by NCC – Chairman

    No registered member of ALTON was sanctioned by NCC – Chairman

    Mr Gbenga Adebayo, the Chairman, Association of Telecommunications of Nigeria ( ALTON ) says no current registered member of the  association is sanctioned by Nigerian Communications Commission ( NCC ) implicated in call masking.

    NCC on Tuesday imposed a range of sanctions on licenses of operators implicated in call masking.

    Masked calling is a technique used in e-commerce to protect and cover buyers’ and sellers’ personal phone numbers as private.

    Adebayo told our reporter on Wednesday in Abuja that his members were responsible corporate citizens who operate according to the laws.

    “We are delighted that in the report issued by NCC, there is no current registered member of our association that was involved.

    “And what it also goes to show is that our members are responsible corporate people who operate according to the laws.

    “They work according to the terms of their licenses, so the assurance we will continue to give is that as responsible association we will continue to comply with the rules of operations,’’ he said.

    Adebayo said ALTON as a responsible corporate organisation and with the  amount of investment by its members in the country suggested they had to take rules and regulations guiding their operations seriously.

    The ALTON Chairman also assured subscribers that operators would continue to provide best services.

    “As an industry that provides infrastructure for many other sub sector of the economy, we will continue to do our best to contribute to national economic  development

    “I am delighted about the report by the Bureau of Statistics on the new Gross Domestic Product ( GDP ) that the number of sectors playing critical roles in the  development of the economy were supported by the telecom sector,’’ Adebayo said.

    The big players in the telecom sector such as MTN, Airtel, Globacom, Nine Mobile, are registered members of  ALTON.

    NCC barred over 750,000 numbers assigned to several Private Network Links (PNL) and Local Exchange Operator (LEO) licensees, which number ranges were found to have been utilised for the practice of call masking.

    It listed the licensees whose numbers have been barred to include Vezeti Communications Services Ltd., Voix Networks Ltd.,  Mobitel Ltd., Peace Global Satellite Communications Ltd.

    Others are ABG Communications Ltd.  Vodacom Business Africa (Nigeria) Ltd.,  Swift Telephone Networks Ltd. QVODA Telecoms Ltd., Wireless Telecoms Ltd. Emcatel Networks Ltd.

    NAN

  • South Africa to raise VAT for first time in 25 years

    South Africa to raise VAT for first time in 25 years

    South Africa will increase value added tax ( VAT ) for the first time in over two decades, the Treasury said on Wednesday.

    The Finance Minister, Malusi Gigaba, said while presenting the budget plan before parliament that VAT would increase to 15 per cent from 14 per cent effective April 1.

    VAT had remained unchanged since 1993.

    “This is a tough, but hopeful budget,” Gigaba said.

    “We decided that increasing VAT was unavoidable if we are to maintain the integrity of our public finances.”

    A VAT hike ran the risk of adding a heavy financial burden on the poor, but Gigaba said poor households would be cushioned through a zero-rating of basic food items such as maize meal and beans.

    The Treasury said the budget deficit was seen narrowing to 3.5 per cent of gross domestic product ( GDP ) by 2020 from 4.3 per cent in the 2017/18 fiscal year.

    Expert said the increase was President Cyril Ramaphosa’s government aim to cut the budget deficit and stabilise debt after years of slow economic growth.

    Ramaphosa took over as leader of South Africa last week after Jacob Zuma stepped down on orders of the ruling African National Congress, bringing to an end nine years of corruption scandals and economic mismanagement.

    Zuma has denied all wrongdoing.

    The rand extended gains to 0.81 per cent against the dollar, government bonds firmed, while retail shares on the stock exchange due to the new three years budget outlay.

    Reuters/NAN

  • Senate receives revised MTEF/FSP bill

    Senate receives revised MTEF/FSP bill

    The Federal Government has presented a revised 2018 to 2020 Medium Term Expenditure Framework and Fiscal Strategy Paper (FSP) to the Senate for consideration.

    The government specifically adjusted the Gross Domestic Product (GDP) growth rate from 4.5 per cent to 3.5 per cent.

    Minister of State for Budget and National Planning, Zainab Ahmed made the disclosure at an interactive session with the Senate Joint Committee on Finance, Appropriations and National Planning in Abuja on Tuesday.

    She, however, explained that other key parameters and assumptions like oil benchmark, daily oil production estimates and exchange rate were retained.

    The minister allayed fears that the adjustments would affect the 2018 budget proposal of N8.61 trillion.

    She added that the adjustments had already been reflected in the 2018 budget estimates submitted by President Muhammadu Buhari to a joint session of the National Assembly on Nov.m7.

    Zainab listed some of the adjustments made on the 2018 to 2020 MTEF submitted by the Executive to the National Assembly in October to include: “N710 billion to be generated from the restructuring of government’s equity in all the Joint Venture oil assets.

    “N320 billion additional revenues from revision of terms to improve government take in the Production Sharing Contracts; additional N60 billion from Excise Duties on cigarettes and alcohol, among others.

    “The key assumptions on the macro framework is as defined in our MTEF and the only difference in the key assumptions is that we have adjusted the GDP growth from 4.5 per cent.

    “And this is as a result of a meeting we had with you while discussing the last MTEF down to 3.5 per cent.

    “But all the other assumptions at 2.3 million barrels per day, oil price of $45 per barrel, exchange rate of N305/$1 are the same.

    “The fiscal deficit is now N2.05 trillion, down by over N940billion, also pushing the debt/GDP ratio downwards from 2.61 per cent to 1.77 per cent,” she said.

    Read Also: Experts express mixed feelings on 2018 budget

    The minister said the adjustments were the fallout of the recommendations of a committee chaired by Finance Minister Kemi Adeosun, which identified additional revenue sources of about N1trillion to cut the 2018 budget deficit.

    She added:”When the FEC approved the MTEF/FSP, it constituted a Committee, chaired by the Minister of Finance, which was tasked with identifying additional sources of about N1 trillion revenues to cut the 2018 budget deficit and New borrowings.

    “The outcome of the work of the committee necessitated a revision of the Medium Term Fiscal Framework (MTFF), which also formed the basis of the 2018 budget proposal.

    “This briefing note and accompanying submissions relate to the revised MTEF/FSP and MTFF, which are in alignment with the 2018 Executive Budget proposal, and were part of the documents that accompanied the 2018 Budget laid before NASS”.

    Lawmakers who spoke at the session, insisted that the non-oil revenue were unrealistic.

    Specifically, they cited the FGN Independent Revenue projection of N807billion for 2017, where only N155.14billion (representing 74 per cent failure) was achieved as of September this year.

    The Chairman, Senate Committee on Finance, Sen. John Enoh and a member of the joint committee, Sen. Ibrahim Danbaba (APC-Sokoto), wondered why the same projection was used in 2018.

    “Why don’t we have anything on interest rate as part of the MTEF document? That will be the best way to talk about aligning the monetary and the fiscal.

    “Why are we putting more than N800 billion as independent revenue when the president admitted in his address to the National Assembly that it had suffered about 74 per cent variance?

    “And yet in 2018, we are still putting more than N800 billion for independent revenue. Are we just balancing the figures?

    “How do you expect to get the revenue from the beginning even what you are projecting you know that you can’t make it?” Enoh queried.

    In his contribution, Adamu Aliero (APC, Kebbi), said: “I find it difficult to understand why the budget for 2017 should be truncated by 31st December when less than 20 per cent of the capital budget has been released.

    “By withholding capital releases, you are more or less contracting the economy.”

    The development comes as the Senate had revealed that it would approve the 2018 to 2020 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) this week.

    To this end, the debate on general principles of the N8.61 trillion 2018 Appropriation Bill, earlier scheduled for Wednesday and Thursday this week, has been shifted to Nov. 28 and Nov. 29.

    MTEF/FSP provides the parameters upon which the budget is prepared.

    According to the Fiscal Responsibility Act, the fiscal documents must be approved before the budget is considered.

  • Nigeria’s GDP grows by 1.40 % in Q3 – NBS

    Nigeria’s GDP grows by 1.40 % in Q3 – NBS

    The National Bureau of Statistics ( NBS ) says the nation’s Gross Domestic Product ( GDP ) grew by 1.40 per cent year-on-year in real terms in the 3rd quarter.

    The NBS stated this in a GDP Report for Third Quarter 2017 released in Abuja on Monday.

    The bureau stated that the figure showed the second consecutive positive growth since the emergence of the economy from recession in second quarter.

    It stated that the growth was 3.74 per cent points higher than the rate recorded in the corresponding quarter of 2016, which was – 2.34 per cent.

    It stated that it was also higher by 0.68 per cent points from the rate recorded in the preceding quarter, which was revised to 0.72 per cent from 0.55 per cent.

    The second quarter was revised following revisions by NNPC to oil output and hence led to revisions to Oil GDP.

    Quarter on quarter, the bureau stated that the real GDP growth was 8.97 per cent.

    According to the report, the broad classification into the oil and non-oil sectors will give a clearer depiction of the Nigerian economy.

    In the period under review, the report stated that oil production was estimated at 2.03 million barrels per day (mbpd) on average.

    It stated it was 0.15 million barrels higher than the revised daily average production recorded in the second quarter of 2017 (revised from 1.84 mbpd to 1.87 mbpd).

    It further noted that oil production during the quarter was higher by 0.42 million barrels per day relative to the corresponding quarter in 2016, which recorded an output of 1.61 mbpd.

    Meanwhile, the report stated that the non-oil sector grew by –0.76 per cent in real terms during the reference quarter.

    It stated that the figure was lower by -0.79 per cent point compared to the rate recorded same quarter, 2016 and -1.20 per cent point lower than in the second quarter.

    The non-oil sector, the report stated was driven in the quarter under review mainly by Agriculture (Crop), other services and Electricity, gas, steam and air conditioning supply.

    In real terms, the report stated that the sector contributed 89.96 per cent to the nation’s GDP.

    It, however, stated that the figure was lower than the share recorded in the third quarter of 2016 (91.91 per cent) and in the second quarter of 2017, which was 90.96 per cent.

    NAN

  • Bayelsa Deputy Gov. expresses confidence in Nigerian engineers

    Bayelsa Deputy Gov. expresses confidence in Nigerian engineers

    The Deputy Governor of Bayelsa, Rear Admiral John Jonah (rtd), has expressed confidence in the capacity of Nigerian engineers to build refineries in the country.

    Jonah said this when he received a delegation of the Nigerian Society of Chemical Engineers ( NSChE ), who paid him a courtesy visit at Government House, Yenagoa.

    He said that building refineries and producing equipment and components in the country would go a long way to boost the local content and manpower base.

    He emphasised the need to discourage reliance on foreign equipment and materials for the country’s industrial needs and services.

    According to him, allowing Nigerian engineers to handle refineries and other industrial requirements will increase the country’s Gross Domestic Product ( GDP ) and stimulate the economy.

    He said he was delighted by the association’s determination to ensure the commencement of manufacturing in-country.

    Jonah also challenged the association to champion the advocacy for safe environment, stressing that Nigerian waters especially, were not safe due to massive pollution.

    “We can get things right when we start thinking inwards, and start producing things for ourselves.

    “I agree with you that Nigeria, today, has the capacity to provide local refineries. If you produce equipment locally, the amount that you spend increases your GDP.

    “If you procure outside the country, you are adding to the GDP of other countries.

    “There are several advantages in producing things locally. That’s the only way we can develop ourselves; that is the only way we can create opportunities for the young ones,’’ Jonah said.

    Earlier in his remarks, Prof. Sunday Adefila, the National President of the society, had said that the courtesy visit was part of the activities of the Annual General Meeting/Conference scheduled for Friday and Saturday in Port Harcourt.

    He said that The meeting would be hosted by the Rivers/Bayelsa branches of the body.

    He explained that chemical engineers were essentially process engineers at the centre of the construction of refineries and related facilities, using indices of environment, economic, energy and improved quality as major planks of consideration for such ventures.

    Adefila, who described Bayelsa as the seat of Nigeria’s local content, given the large oil and gas deposits in the state’s environment, said “NSChE can, and is able to do Nigerian refineries.

    He added that members of the society were ready to be worthy stakeholders and were also available to be used for worthwhile partnerships with the state government.

    NAN

  • FG committed to developing creative industry – Lai Mohammed

    FG committed to developing creative industry – Lai Mohammed

    The Federal Government( FG ) says it is irrevocably committed to growing the creative industry in view of its importance to the economy.

    The Minister of Information, Culture and Tourism, Alhaji Lai Mohammed, made the statement while declaring open the African International Film Festival in Lagos on Sunday night.

    He said the government recognised the great potential of the industry to grow the country’s Gross Domestic Product (GDP) and had been supporting the sector to realise its potential.

    Mohammed, who described the creative industry as the next oil, expressed delight that players in the industry had already placed the country on the global map with their great talents.

    He said the government was proud of Nollywood and its achievements, and was taking steps to propel the industry to greater heights.

    “The Nigerian government is proud of Nollywood and we are engaging stakeholders constantly to grow the sector.

    “I will reiterate a few of the initiatives we have pursued to grow the sector.

    “We are pursuing single digit interest loans towards infrastructural development in the sector.

    “We are supporting about 100 community cinemas evenly spread across the country.

    “We are almost closing on a world class pre and post production facility using existing infrastructure.

    “We want to ensure that such world class facility is located in each geo-political zone to boost movie productions and other contents.

    “Finally, in the area of digital television, we are ensuring that set-up boxes are enabled to allow customers in about 30 million homes to access and buy our movies for the development of the sector,” he said.

    Mohammed said the African International Film Festival had contributed to the growth of the sector on the continent by allowing Africans to tell their own stories.

    He said the festival had helped practitioners to showcase their talents and also helped in the area of capacity in the sector.

    Alhaji Lai Mohammed said he and the government identified with the festival in view of its potential to take the movie industry to greater heights.

    Sen. Godswill Akpabio was among prominent personalities present at the opening.

    Also, a galaxy of local and international movie stars as well as technical experts and showbiz personalities witnessed the opening.

    Earlier, the minister, at a programme organised by the Copyright Society of Nigeria ( COSON ) tagged “COSON in the Church,’’ said the government was committed to protecting intellectual property in the creative industry.

    Mohammed said piracy was a threat to the development of the industry and that government was taking steps to end the menace.

    He said that the government had set up a task force to check the activities of people who pirated creative works and the step was yielding results.

    “The task force has made a few arrests including the Kingpin of Piracy in Alabama and he is currently facing prosecution.

    “We will continue to do more and ensure we deal with the problem,’’ he said.

    The minister commended COSON for its efforts at ensuring that artists were paid what was due to them by those who used their works.

    Mohammed said this would ensure that the beneficiaries did not labour in vain but reap from their talents.

    He said the government would continue to support COSON in its cause to uplift the creative industry, and was was doing its best to attract the much needed investments in the sector.

    The President of COSON, Chief Tony Okoroji, said the essence of the programme was to pray for peace in Nigeria and for the country to reach its potential.

    Okoroji said Nigeria had everything to be great, saying that with prayers and doing the right thing, the country would attain greatness.

    According to him, the creative sector is a major part of the country’s life and will continue to support the country in achieving greatness.

    Prayers were offered for the progress of the country at the programme, while gospel artistes took turns to entertain guests.

    NAN

  • ‘Obiano spent N44bn on 101 inherited projects’

    ‘Obiano spent N44bn on 101 inherited projects’

    Mr Mark Okoye, the Anambra Commissioner for Economic Planning and Budget, has said that the Gov. Willie Obiano’s administration had spent N44 billion on projects inherited from his predecessor.

    Okoye made this known in Awka on Friday that Obiano, who assumed office on March 17, 2014 inherited 101 projects from the former Gov. Peter Obi’s administration out of which 51 have been completed.

    He said it was not true to say that the current government in Anambra was not doing anything on capital projects.

    “N44 billion has been spent on inherited projects, there are 101 of them and 51 of them have been completed.

    “Another N30 billion was spent on projects initiated by this administration and are at various stages of completion. It will be unfair to say that we have not done anything on infrastructure.

    “You cannot keep the over 48, 000 civil servants both at the state and local government levels hungry because you want to build infrastructure alone,” he said.

    The commissioner said Obiano deserved second term because “he had done noble’’ by ensuring that the economy of Anambra remained viable and did not go into recession.

    He said there had been steady increase in the Gross Domestic Product ( GDP ) of Anambra since the inception of Obiano administration which he attributed to the economic policy direction of the governor.

    Okoye said that it was not true that the government had spent over N400 billion cumulatively in the budget proposal from 2014 till date.

    He said the total expenditure for the period was about N270 billion as budget implementation for any fiscal year had not exceeded 65 per cent.

    “There has been steady growth in our state economy.

    “In 2013, our GDP was N2.8 trillion, in 2014 when this administration came in, it was about N3.2 trillion; it rose to about N3.7 trillion in 2015 and to N3.8 trillion in 2016; it means Anambra did not go into recession.

    “This is possible because of the economic policy implemented by the Willie Obiano’s administration through his developmental agenda.

    “A budget is essentially a proposal which is sent to the legislature for approval and if accepted it subjected to implementation.

    “Implementation is driven by revenue which is sourced internally and externally, and in these years, maximum budget implementation was 65 per cent and if you discount 35 per cent from that figure you will see that the total expenditure is between N260 billion and N270 billion.

    “Half of that expenditure goes into recurrent expenditure like payment of salaries, gratuities and pensions. About 120, 000 school children between primary one and primary three are being fed daily by the government.

    “We are not where we want to be yet, but we are on the right path,” he said.

    Okoye said the ongoing Anambra International Trade Fair was a good testimony of the productive capacity of Anambra as it was featuring largely locally made goods.

    “You can see the effect of what we are doing in the trade fair where most of the products on exhibition are locally made, they are harvested, processed and package in Anambra State and it was not like that four years ago.

    “You will agree with me that if re-elected, Gov. Obiano will transform the fortunes of Anambra beyond imagination in the next four years.

    “Our people will be happy because they would have seen that state economy had been fully diversified from oil,” he said.

    NAN

  • Africa’s rapid urbanisation can drive industrialisation – UN

    Africa’s rapid urbanisation can drive industrialisation – UN

    A UN report on Thursday made concrete recommendations on how the right African policy framework could harness the continent’s rapid urban transition to drive industrial development.

    ‘The 2017 Economic Report on Africa’ was launched by the UN Economic Commission for Africa (ECA) Sub-Regional Office for Eastern Africa in Kigali.

    Ms Giovanie Biha, the Deputy Executive Secretary, at the launch said: “African urbanisation has not been driven by improving agricultural productivity or increased industrial output, as has been the case elsewhere.

    “On the contrary, it has been dominated by the expansion of the informal sector – often services.

    “To foster enhanced growth and poverty eradication, African countries should put in place industrial policies that will generate the skilled jobs and productivity gains needed for the structural transformation of their economies.”

    She pointed out that by 2035, half of the continent’s population would be urban, compared to just one third in 1990.

    “Industrialisation and Urbanisation for Africa’s Transformation also provides an opportunity to discuss the challenges of industrialisation and structural transformation on the continent and for Eastern Africa, in particular,” she said.

    In most of the 14 countries covered by the Sub-Regional Office, the share of the manufacturing sector has been stagnant or declining over the past 10 years while the services sector has expanded rapidly.

    In spite of a weak structural transformation process, the long-term growth outlook remains promising in Eastern Africa, the report said.

    According to the ECA report, the gross domestic product ( GDP ) growth rate in 2017 is estimated to remain at the 2016 level of 5.6 per cent – down from the exceptional performance of the past five years.

    Ethiopia’s average annual growth rate is 9.5 per cent and Rwanda’s 7.2 per cent between 2012 and 2016, remaining well above the African continent average of 3.1 per cent in 2017.

    Andrew Mold, Acting Director of the ECA sub-regional office, highlighted some growth catalysts, such as massive investments in infrastructure or service sectors.

    According to him, increased investments have started to stretch budgets and weaken structural constraints, such as exchange rate volatility.

    NAN