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Tag: Gross Domestic Product (GDP)

  • Lagos@50: Eko Club seeks focus on informal sector

    Lagos@50: Eko Club seeks focus on informal sector

    …Plans international colloquium on state’s economy

     

    A foremost indigenous social club in Lagos, Eko Club Friday called for concerted efforts from key players to fully harness the potentials of the informal sector in Lagos State, saying that such would go a long way in growing the Gross Domestic Product (GDP) of the State and drastically reduce unemployment.

    The Club, which is one of the centres designated for the Lagos@50 celebrations, said urgent steps must be taken to properly organise the informal sector, which it described as the real engine to drive growth in any economy.

    President of the Club, Chief Tunde Fanimokun, who stated this during the inaugural annual budget presentation of the Club, said judging by the successes already recorded in the formal sector in the last five decades, major focus should now be on how the informal sector would also be properly organised for the benefit of the people.

    “50 years is worth celebrating in the life of any organization or individual. Lagos State is the oldest State in Nigeria in the sense that since its creation, it has not been divided. Other States created alongside the State have had their parts divided to form other States.

    “Also, Lagos economy is a tiger economy; it is an ideal economy in the sense that it is not a mono cultural one; it is a model that other States can follow; it started from scratch and building up; even while it was doing very well, it was still pursuing oil and now it is an oil producing State. Despite the economic recession in the country, Lagos is doing very well.

    “With all the successes, what we the indigenous people believe now is that we should not rest on our oars. We have done very well and concentrated on the formal sector. The organised private sector are well organised but the informal sector is not yet fully organised and I am talking about the entertainment industry; I am talking about tourism; I am talking about the distributive trade and so on,” Fanimokun said.

    While recalling how five members of Eko Club started the process that culminated in the emergence of Lagos as an oil producing State 25 years ago, Fanimokun said the golden jubilee celebration was also that of the Club, and that in that regard, an international colloquium would be organised on August 9 which coincides with the International Day for the World Indigenous Peoples (WIP) to discuss way forward for the Lagos economy.

    He added that on May 12 which is officially designated as Social Club Day for the Lagos@50 celebrations, members of Eko Club aside the programme of the State, would pay a courtesy visit to the Oba of Lagos, Oba Rilwan Akiolu to formally introduce the new leadership of the Club.

    Besides, Fanimokun commended Governor Akinwunmi Ambode for his sterling performance so far especially in areas such as N25billion Employment Trust Fund (ETF), massive infrastructural development, building of five Old Peoples’ centres, among other laudable projects, but urged that more efforts should be geared towards construction of smaller link bridges to connect communities across the State.

     

  • Nigerian workers, pillars of the nation – Saraki

    Nigerian workers, pillars of the nation – Saraki

    The President of the Senate, Dr Bukola Saraki has described Nigerian workers as the pillars and driving force of the nation in view of their invaluable contributions to national development.
    Saraki made this known in a message signed by his Special Adviser, Media and Publicity, Mr Yusuph Olaniyonu, in Abuja at the weekend to mark this year’s 2017 Workers’ Day celebration.
    He lauded the resilience and commitment of workers in both the formal and informal sector describing their contribution to the nation and the economy as “priceless’’.
    “From the Small and Medium Enterprises (SMEs) that contribute over 47 per cent to our Gross Domestic Product (GDP), to the civil servants who are the driving force behind our government;
    “All the way to the unregistered business owners who work to make a living for themselves and their families, every Nigerian worker in both the formal and informal sectors makes a priceless contribution to the sustainability of our nation.
    “As we mark this year’s Workers’ Day, all Nigerian workers should be proud that their significant contributions keep this nation moving forward as they are the lifeblood of our country, an integral part of the fabric that makes up our society,” he said.
    Saraki said that the Senate would continue to work to establish and enhance all legislations that would guarantee the safety and well-being of Nigerian workers.
    He also emphasised on the need for government across all levels and participants in the private sector to work toward ensuring that workers received their salaries and pensions as and when due.
    “As a result of globalization, the Nigerian workforce is no longer competing with itself. We are now competing with our counterparts from both developing and developed nations.
    “With this in mind, it is necessary that all employers, those in the public and private sectors, work to continuously invest in the development of their employees,’’ he said.
    Saraki said the upper chamber would continue to partner with Nigerian workers to enact legislation that would guarantee that they got their dues at the appropriate time.
    The News Agency of Nigeria (NAN) reports that Workers’ Day is observed May 1 each year to celebrate the achievements of workers.

     

  • GOND to unite Nigerian dancers at forthcoming dance festival – Liadi

    Mr Adedayo Liadi, National President, Dance Guild of Nigeria (GOND), says the association will use its forthcoming Nigerian Dance Festival to unite dancers across all genres of dances in Nigeria.

    Liadi told the News Agency of Nigeria (NAN) on Thursday in Lagos that the objective of the fiesta was to revive Nigerian heritage in dance, educate, entertain and create awareness.

    He said that GOND was partnering with “Dance and Arts Alive’’ in staging the event that would hold from June 7 to June 24.

    “The unveiling and opening ceremony of the festival is fixed for the World Dance Day, April 29, at the National Theatre, Lagos.

    “The event will be organised in Port Harcourt, Abuja and Lagos at dates yet-to-be determined,’’ Liadi told NAN.

    “The first two weeks of the festival will be celebrated in Port Harcourt and Abuja respectively, and the last week will be in Lagos.

    “Our aims and objectives are to revive and showcase our rich cultural dance heritage from diverse ethnic groups, boost tourism through our exchange programmes with international dance institutes.

    “We want to promote the role of dance artistes in nation building and national development, promote dance education and innovative dance competitions, and create a platform for government to reach dance artistes,’’ he said.

    He called on Nigerians to ensure full participation in the festival to move the country forward and boost its Gross Domestic Product (GDP).

    According to him, the programme will include symposiums on dance and health; injury management, first aid therapy and insurance for dancers as well as seminars on the theoretical aspect of dance.

    “We will have lectures on business and investment opportunities for dancers and wealth creation through dance,’’ he said, adding that Malaria was picked as it theme for the health awareness programmed at the vent.

    According to him, the segment will include the staging of a professional dance production on practical ways to reduce and prevent malaria and encourage prompt testing and treatment.

    “The venues for each of the cities will be communicated soon,’’ Liadi said.

  • Ambode tasks FG, States to scale up capital expenditure

    Ambode tasks FG, States to scale up capital expenditure

    As Nigeria gradually makes its way out of economic recession, the House of Representatives on Wednesday commended the Lagos State Government’s role, saying that the success story of the State was not only benefitting residents, but helping to get the nation’s economy back on track.

    Chairman of the House of Representatives Committee on Economic Recession, Hon. Olabode Ayorinde who said this when he led members of the Committee on a courtesy visit to Governor Akinwunmi Ambode  at the Lagos House in Ikeja, said the State currently dictates the pace of the economy in Nigeria.

    While congratulating the Governor on his developmental strides in the last two years, Ayorinde said other States could learn from the template Lagos deployed to tackle the economic recession.

    He said: “We take legislative notice of the serious development that is going on in Lagos State and with your permission, we don’t mind interacting with those that are in charge perhaps there are one or two things that we can recommend to other states in the nation because in togetherness we can only move this nation forward.

    “Talking seriously, the economic power of Lagos State also dictates the pace of the economy in Nigeria. Some of the steps that Lagos is taking now, some other States that have not been able to pay salaries may not be able to take such steps. We are looking at this nationally; for example, if an industry is working in Lagos that is employing about 5000 persons I am sure that the company will not employ only citizens of Lagos State. So, it is to the benefit of Nigeria and if the Gross Domestic Product (GDP) of the country increases, it is not a factor of where it comes from, wherever the economy has been improved, it is national income and Nigeria will be better for it.”

    Earlier, Ayorinde said he was in Lagos with his team to inspect some of the moribund industries in the State, with a view to coming up with appropriate legislations that would help them get back in business.

    Responding, Governor Ambode said his administration intensified its capital expenditure to reflate the State’s economy, noting that 60 percent of its budget last year was ploughed towards infrastructural projects in all parts of the State to tackle recession.

    He said such projects contributed significantly to keep the State’s economy afloat with low income earners engaged, adding that it was important for government at all levels to keep spending on infrastructure.

    “Every contract or construction that you see in the nooks and crannies of Lagos, there is a bricklayer that is employed; there is a driver that is driving lorry load of sand; there is that food seller that is given the workers some food and a minimum of N5,000 in every household has a multiplier effect on the economy.

    “So, that is the sure way that we have done this and we have not kept that development in one area, we have replicated it in all the senatorial zones so that those living in Badagry can earn income in Badagry and actually improve on the economy. This is what we think should be replicated by other States in the country and even at the national level. You need to spend your way out of recession and that is why it appears there is nothing like recession in the city of Lagos,” Governor Ambode said.

    The Governor also said that his administration invested massively on security and reviving a 24/7 economy for the State through the Light Up Lagos project, saying that such was important for the economy to thrive.

    Besides, Governor Ambode called for convergence between fiscal and monetary policies to tackle recession, while also urging lawmakers to come up with legislations that would take people out of poverty.

    “I want to enjoin our legislative house that we need to fast-track some of our legislations that are really people-driven and also back us in terms of the executive decisions that will take us out of recession,” he said.

     

     

  • FEC approves revised National Tax Policy to check low taxation

    FEC approves revised National Tax Policy to check low taxation

    The Federal Executive Council on Wednesday in Abuja approved a revised National Tax Policy to address low taxation in the country.

    The Minister of Finance, Mrs Kemi Adeosun made this known at a joint press briefing with the Minister of Information and Culture and Minister of State for Aviation Hadi Sirika after the Federal Executive Council meeting.

    The meeting was chaired by Acting President Yemi Osinbajo.

    Nigeria’s tax contribution to the Gross Domestic Product (GDP) is said to be the lowest in the world with about six per cent.

    Its Value added Tax is also said to be the lowest in the world at five per cent.

    The minister, however, said under the new tax policy, consumers of luxury goods would pay a higher Value Added Tax (VAT).

    According to her, the new VAT per centage for the luxury items is still subject to approval of the National Assembly.

    She expressed the hope that the new revised tax policy, which was recommended by the ministry’s National Policy Tax Review Committee in August 2016, would entrench an efficient tax system.

    This according to her, will also address the low level of tax contribution to the Gross Domestic Product (GDP).

    “What the committee has shown is that we should look at actually increasing VAT on some luxury items.

    “ VAT of five percent, we have lowest VAT and whilst we don’t think VAT should be increased on basic items, if you are going to drink champagne you drink Champagne in the UK and VAT is 20 per cent why should it be five per cent in Nigeria.

    “So, they have made recommendations that we should pull out some luxury items and increase VAT on those items immediately.

    “And I think that is a very valid and sensible suggestion which we are going to talk to the National Assembly to see how we can implement it.

    “But as far as basic goods are concerned, I believe it is only fair that when you consume luxury goods you should pay a little bit more.

    “The National Assembly will decide the percentage,’’ she said.

    She said the approved tax policy would be jointly implemented by the federal, state and local governments, adding that other agencies of government like the Federal Inland Revenue Service (FIRS), the media, Civil Society Organisations and others would be involved in the implementation.

    According to the minister, the main thrust of the tax policy is to establish fundamental principles to guide and orderly develop the Nigerian tax system toward meeting its objectives.

    It also recognises the primacy of the taxpayers and clearly states their rights and duties.

    It equally reinforces the role of the ministry of finance in the formulation, coordination and implementation of tax policy on an ongoing basis.

    The policy is expected to guide the operation and review of the tax system and provide the basis for future tax legislation and administration.

     

  • Nigeria’s economy will grow in 2017 – Expert

    Prof Uche Uwaleke, an economic expert says he is optimistic that Nigeria’s economy will be ‘out of the woods’ this year.

    Uwaleke, the Head of Banking and Finance, Nasarawa State University, said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Tuesday.

    He stated that the growth would be possible, especially if the 2017 expansionary budget was approved in due time and implemented accordingly.

    Uwaleke shares the same optimism with the International Monetary Fund (IMF) regarding a possible growth by 0.8% in the country’s Gross Domestic Product (GDP) this year.

    According to him, the growth will be largely powered by the crude oil price, which is recovering and trading currently in excess of 50 dollars per barrel well above the 2017 budget reference price.

    “I have confidence in the ability of OPEC member countries to sustain this tempo by keeping to the agreed production cut.

    “The attendant improvement in oil revenue will translate to more funds for state governments to pay workers’ salaries and boost aggregate demand.

    “An increase in oil export proceeds will equally impact positively on exchange rate and buoy activities in the real sectors of the economy, especially agriculture and manufacturing.

    “Already, the Purchasing Managers Index, an indicator of manufacturing activity, is reported to cross 50 points threshold in December 2016, after witnessing a decline in the previous eleven months.’’

    Uwaleke said that the favourable agric policies of the government including CBN’s intervention, especially in Rice production through its Borrower Anchor programme, were already impacting positively on the sector.

    He said the contribution of banks to GDP would increase on the back of rising oil price, particularly for many of them with significant exposure to the oil industry.

    The university don said that the capital market was also expected to contribute more to national output in 2017.

    This, he noted was due to the fact that some companies such as MTN, Medview Airline and Jaiz Bank had already announced their intention to list on the Nigerian Stock Exchange this year.

    “Overall, there is a strong possibility that the economy will be out of the woods this year, especially if the 2017 expansionary budget is approved on time and well implemented.’’

  • Lagos health insurance scheme commences in 2017 – Ambode

    Lagos health insurance scheme commences in 2017 – Ambode

    • Welcomes Partnership With Insurance Firms To Grow State’s GDP

    The Governor of Lagos State, Mr. Akinwunmi Ambode on Monday said the much awaited Health Insurance Scheme of the State would commence in early 2017, expressing readiness to partner with key players in the sector to use insurance to grow the Gross Domestic Product (GDP) of Lagos.

    Speaking at the commissioning of the new WAPIC Insurance Corporate Head Office, located on Awolowo Road, Ikoyi, the Governor said there was no question about the strategic importance of insurance to any economy, saying that his administration was open to policies and initiatives that would make the sector to thrive in the State.

    “The insurance business is here to stay and I want to also say that I give our government’s commitment to allow this sector to grow. I will like to partner and also learn how we can grow the GDP of Lagos through your industry. On our part, we know very clearly that early next year, we are going to start our Health Insurance Scheme and I just think that the drivers are the majority of the people who are seated here and it is important that we partner together and also learn together,” Governor Ambode said.

    While challenging the key drivers of the insurance sector to come up with draft bill that would accelerate insurance business in Lagos, Governor Ambode said he was open to initiatives that would make the sector grow and contribute positively to the growth of the State.

    He said there was great need for insurance for individuals and the legal regulatory framework to be explored and expanded with the view to ensure the growth of the sector, adding that it was important for government not to be left alone to handle all issues affecting or that should affect the sector.

    He pledged the commitment of the State Government to continually identify and support organizations such as WAPIC Insurance to accelerate the efforts at creating the new Lagos of positive dreams, assuring that as a government, his administration would explore ways to create an enabling environment for businesses to thrive.

    According to the Governor, “We are committed to introducing new incentives for businesses in Lagos to enable them grow and also support our society and take more of our youths off the street. The ease of doing business is of concern to us and as a result, we are working to improve the indices of doing business in Lagos, while we continue in our commitment to carry out judicial and security sector reforms.”

    Besides, Governor Ambode congratulated the board and management of WAPIC Insurance for adding a beautiful edifice to the State, which he said had brought total change to the landscape of the entire Awolowo Road in Ikoyi.

    He said the company had distinguished itself as one of the insurance companies that have pro-actively partnered with the State Government with insightful recommendation on key issues of governance and welfare of the people particularly in the areas of safety, security of lives and property through insurance such as relating to building collapse, fire accident, amongst others.

    Earlier in his welcome speech, Chairman of WAPIC Insurance, Mr. Aigboje Aig-Imoukhuede said from his trips across Africa, there has never been any public functionary like Governor Ambode who understands the importance of the insurance sector, saying that the knowledge came out of the deep understanding of economics and the fact that insurance is the most important economic sector of the world according to modern day reality.

    He said insurance makes the world livable and cheaper, adding that the commissioning of the new building not only signpost the transformation of WAPIC Insurance, but also the transformation of insurance sector in Nigeria to take its rightful place.

    Governor Ambode also received a donation of N20million on behalf of the Lagos State Security Trust Fund (LSSTF) from WAPIC Insurance.
  • MTN debacle: FG warned against discouraging investments

    MTN debacle: FG warned against discouraging investments

    As the battle against MTN’s alleged illegal repatriation of money outside Nigeria without obtaining the regulatory mandate of a Certificate of Capital Importation (CCI) rages on, financial and economic experts have cautioned the government against discouraging foreign investments with poor relation management.

    Speaking on a popular TVC Business morning show, monitored by The Nation, a Financial Management Consultant, Mr. Bisi Ogunwale, said the furour generated by the regulatory discrepancies between the MTN believed to have employed over half a million Nigerians and injected about 3.5 per cent of the country’s Gross Domestic Product (GDP) may portend a negative picture to willing investors in the Nigerian economy.

    Ogunwale said the accusations against the Telco were not solidified as the withdrawal by MTN didn’t appear to contravene the Nigerian Investment Promotion Council act and CBN’s regulation.

    He said the government should rather check the efficiency of the regulatory measures of the CBN and necessary parties to avoid repelling foreign direct investors (FDIs).

    Ogunwale said: “Just when we thought we were getting out of undue interference from our government in the way businesses are run, the upper chamber of the national assembly on the 27th of September did this. First, the issue here for me is what exactly is the Senate out to achieve and why are they doing what they are doing? I’ve looked at everything they brought forward and the issue that MTN did not get CCI before repatriating money. What funds are we talking about, MTN’s claims they were repatriating funds that were meant to be profit or dividends being paid on importation of capitals they have done. I don’t see anything wrong in what they have done. For me I think it is just a witch hunt.”

    Also, an economist of the Lagos Business School, Opeyemi Agbaje, who also spoke on the programme described the issue as a procedural argument that should be probed though appropriate quarters.

    He said backlash on MTN by the Nigerian government in about a year on has invariably depleted the company’s turnover both in Nigeria and in South Africa, adding that for a mutually beneficial relationship as this, professional and diplomatic methods should be deployed to manage the situation.

    He said: “I believe it is purely a procedural argument. It doesn’t appear MTN actually imported capital into Nigeria and it seems it is all about MTN remitting its profit out of Nigeria from the portion of the profit due to its parent company in South Africa. That on the basis of common sense and regulations will not be an illegal activity.

    “My suspicion is that if it becomes a purely procedural argument, it may be much ado about nothing because the reality is that maybe four   banks involved appear to be very strong and credible.

    “MTN came into Nigeria in 2000 and has directly on indirectly employed half a million. It has contributed about 3.5per cent of Nigeria’s GDP.”

    However, Ogunwale said “as a government, what they should be looking at is how the entire saga being created around MTN help business and investment in the country. I do not think we are speaking the right words to the investment world if we are treating MTN the way we treat them currently. It does not look as we are serious to attract foreign investment.”

  • Economic stimulus: FG plans lower taxes for SMMES

    Economic stimulus: FG plans lower taxes for SMMES

    The Federal Government is set to reduce the income tax rates payable by Small, Micro and Medium Enterprises (SMMEs) in the country to encourage more start-ups in Small, Micro and Medium Enterprises.

    The planned tax reduction will boost the profitability of the existing ones, generate new jobs and make higher contribution to the Gross Domestic Product (GDP).

    A statement from the federal ministry of finance Signed by Salisu Na’Inna Dambatta Director (Information), “the new incentives for SMMEs are part of the recommendations presented to the Minister of Finance, Mrs. Kemi Adeosun, by the 12-member Committee she established, chaired by Professor Abiola Sanni, to review the current National Tax Policy (NTP) in Abuja, Thursday.”

    The Committee he said “noted that lowering the taxes payable by Small, Micro and Medium Enterprises would encourage compliance, promote the growth of SMMEs and expand the manufacturing base of the nation through their activities.”

    Another recommendation suggested for implementation relates to the abolition of minimum tax, which results in loss making companies been required to pay tax.

    The Minister assured that a team would be set up by the Ministry to implement the recommendations of the Committee through administrative measures without delay, while those that require legislations would be forwarded to the Federal Executive Council for consideration.

    According to the finance minister, “we need to deal with legislations that need to be changed. Nigeria cannot afford to be running with antiquated tax laws,” she emphasised.

    The new Tax Policy has also recommended the enactment of a number of legislation amendments including the  law to tax treatment, the taxation of Real Estate Investment Trusts (REITs).

    “In other climes a REIT is seen as transparent or flow through entity that is not different and separate from its unit holders/investors. The income of the REIT is treated as the income of the unit holders or investors and therefore taxed at that level,” the report clarified rather than the current provisions, which amount to double taxation.

    Earlier in his remarks, the Chairman of the Committee, Professor Abiola Sanni said that the report contained some innovations in terms of suggestions, including 20 implementation strategies, explaining that some of the strategies required legislations while others could hit the ground running.

    “We believe that at the end of the day if the recommendations contained in this report are implemented, Nigeria will witness a transformation of the economy as a whole,” he pointed out.

  • Senate summons Adeosun, Emefiele over dwindling economy

    Senate summons Adeosun, Emefiele over dwindling economy

    The Senate Wednesday resolved to invite the Minister of Finance, Mrs. Kemi Adeosun and Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, to brief it on the state of the country’s economy.

    The invitation followed the adoption of a motion on “urgent need to address present economic state of the nation”

    Senator Bassey Albert Akpan (Akwa Ibom North East) who sponsored the motion said that the motion is informed by the National Bureau of Statistics release last week bordering on the nation’s economic scorecard for the first quarter of the year 2016 for Gross Domestic Product (GDP), inflation and unemployment.

    He observed that the report depicted that the country’s economy plunged into recession with a decline of 0.3 per cent year-on-year in real term which is a drastic drop from 2.11 per cent in quarter four 2015 IN GDP.

    He also observed that from the report, unemployment rate rose to 21.1 per cent in quarter one 2016 from 10.4 per cent in Q4 2015.

    According to him, unemployment also increased to 19.1 per cent from 18.7 per cent in the same period while the rate inflation rose from 9.6 per cent in January 2016 to 13.8 per cent in April 2016 with attendant increase in prices of basic food commodities and services in the country.

    Senator Akpan said that he is worried that the declining GDP and unemployment besides the current high inflation rate clearly shows that the economic policies of the country “are not achieving desired impact and requires an urgent review to avoid further plunge in our economy.”

    The lawmaker said that he is further worried that the current economic contractions is the first major drastic slump since June, 2004, which according to the CBN is a 12-year-low when the World Bank’s position is a 21-year-low.

    He recalled that the CBN, had in March, 2016 deployed a contracting monetary policy increasing bench mark interest rate from 11% and cash reserve ratio from 20% to 22.5%.

    “The question is why contracting monetary policy instead of expansionary monetary policy of boosting economic activities at such a critical time as this,” he asked.

    Senator Akpan noted that he is deeply concerned that the continued complacency of the current state of the economy if allowed unchecked will set the tone for a full blown economic recession by the end of June 2016 as already confirmed by the CBN in its Monetary Policy Committee meeting on Tuesday.

    The Akwa Ibom lawmaker said that he is disturbed that the current economic situation in the country coupled with lack of required foreign exchange to boost import of raw materials for domestic industries will worsen the unemployment and poverty situation in the country.

    He noted that considering the decline in oil production in the Niger Delta by 800,000 b/d vis a vis the benchmark production for 2016 budget of 2.2mb/d, owing to the vandalisation of oil pipe lines, in addition to the inability of non oil revenue collecting agencies to meet to meet revenue targets owing to the economic crunch.

    Senator Akpan concluded that he is convinced that with the current economic slump, “meeting the key budgetary revenue projection of the 2016 budget is practically impossible and the need to have a rethink to avoid deepening budget deficit or poor budget implementation.”

    He added that “whether we like it or not, no matter what we call it, the Naira was devalued Tuesday.”

    The single prayer that the Senate should invite the Minister of Finance, Mrs. Kemi Adeosun and the CBN Governor, Mr. Godwin Emefiele to brief the Senate on the monetary/fiscal policies adopted to salvage the economic situation was unanimously adopted.

    Senate President, Abubakar Bukola Saraki, who briefly presided over the plenary, ruled out any debate.

    Saraki said that since Adeosun and Emefiele would appear before the Senate in plenary, there was no need to pre-empt them.

    Senator Biodun Olujimi (Ekiti South) who seconded the motion said that it is obvious that the country has no economic blue print to drive its economy.