The Nation Newspaper

Tag: Gross Domestic Product

  • Local content implementation hits 60.23%

    The rate of compliance to the local content policy has sharply risen to 60.23 percent in the last few months, thus raising the country’s Gross Domestic Product (GDP).

    The Chairman of Flour Mills of Nigeria Plc, John Coumantaros, who stated this recently in Lagos, noted that due to the federal government’s backward integration policy and efforts of key players in the nation’s manufacturing industry, local sourcing of raw materials in Nigeria has increased from 47.2 percent in 2014 to 60.23 percent in 2018.

    “While appreciating successive Federal Governments for increasingly recognizing the role of sectoral backward integration policies, which has provided incentives to looking inwards for inputs; as stakeholders in the private sector, I believe we must take active roles in promoting manufacturing competitiveness in the country,” he said.

    Coumantaros attributed the success achieved in the backward integration compliance to the support of the government towards the real sector.

    Stressing the need to enforce compliance, he expressed that it was important to promote the real sector of the economy as it will stimulate sustainable economic growth which will reflect on the welfare of the populace.

    “The first sector that comes to mind when you review the real sector of any economy is the manufacturing sector given its role in engendering inclusive growth. However, the contribution of the manufacturing sector to gross domestic product (GDP) in Nigeria is low when compared to other emerging economies, a development that has been widely attributed to the country’s crude oil based, mono-product economy. Hence, there is a need to look inwards to explore ways of increasing the sector’s paltry 8.9 percent contribution to GDP,” he stressed.

    Manufacturing, he noted, “Is essentially the main component of all value chains. Manufacturing can be accomplished through the efficient and careful development of value chains that facilitate higher-value-added processing using locally produced inputs and services in production. For manufacturing in Nigeria to truly succeed and play its rightful role in being a significant contributor to GDP, we must look at all aspects of the value chain – from inbound raw material procurement all the way to sales and after-sales service.

    “While appreciating successive federal governments for increasingly recognizing the role of sectoral backward integration policies, which has provided incentives to look inward for inputs; as stakeholders in the private sector, I believe we must take active roles in promoting manufacturing competitiveness in the country. For instance, due to government’s backward integration policy and effort of key players in the Nigerian manufacturing industry, local sourcing of raw materials in Nigeria has increased from 47.2% in 2014 to 60.23% in 2018 according to a survey conducted by MAN.”

     

  • How to avert negative GDP performance in 2019, by expert

    The economy’s negative Gross Domestic Product (GDP) performance this year, forced partly by the just-concluded electioneering activities, can be reversed if robust policy initiatives are taken by the in-coming administration’s Economic Management Team.

    The Managing Director, Cowry Asset Management Limited, an investment banking firm, Mr. Johnson Chukwu, said the economy will suffer a decline in productive activities this year, unless government quickly settles down to business and appoint competent hands to manage the economy.

    Speaking with The Nation, he said a slower GDP growth rate was expected in the first half of the year because of 2019 electioneering activities. “We saw loss of economic activities for almost six days within two weeks.

    “In the month of March, the gubernatorial and State House of Assembly elections also affected economic activities, so you realise that the first three months of this year were greatly dominated by political engagements.

    “Clearly, there were loss of productive hours and loss of productivity in the first half; the second half also will be dominated by political activities; we have seen candidates who lost elections going to courts,” he said.

    The expert added that many sitting governors will be distracted by court activities, as well as the process of dissolving the executive cabinet at the state and federal levels. The process of lobbying, appointing the executive council at the state and federal levels will also dominate the second quarter of the year.

    The expert in investment banking identified the manufacturing and the trade sectors as the most affected by political activities. He noted, for instance, that manufacturers shut down production to allow people to go home and vote.

    Chukwu, who also said lots of traders held back on import of goods, waiting to know the direction of the economy, noted that the trend negatively impacted the nation’s Gross Domestic Product (GDP) performance this year.

    “We need to quickly fast track our electoral process to be in tune with the level of development around us,” he stated

  • Why VAT revenue is poor in Nigeria- Experts

    Unlike most advanced and developing countries, where the bulk of tax receipts are generated from collection of Value-Added Tax (VAT) the reverse is the case in Nigeria, where the tax-to-GDP ratio is poor. In this report, Ibrahim Apekhade Yusuf examines the issues

    With over 35 million taxpayers currently in the nation’s tax net, revenue generation through taxes may have risen significantly. But the irony, however, is that the receipts from collection of Value-Added Tax (VAT) still leaves nothing to cheer about as it contributes a paltry one per cent to the nation’s Gross Domestic Product (GDP).

    What VAT is all about?

    According to the Federal Inland Revenue Service (FIRS), VAT is governed by Value Added Tax Act Cap V1, LFN 2004 (as amended). VAT is a consumption tax paid when goods are purchased and services rendered. It is a multi-stage tax borne by the final consumer. All goods and services (produced within or imported into the country) are taxable except those specifically exempted by the VAT Act. VAT is charged at a rate of 5%.

    A view of the VAT ecosystem

    The National Bureau of Statistics, NBS, had last year released the sectoral report for Value Added Tax for the 2017 fiscal period, stating that the country generated a total of N972.34bn from VAT.

    An analysis of the VAT report showed that the amount was collected from 28 sectoral activities during the period under review.

    A breakdown of the amount showed that the sum of N204.77bn was generated in the first quarter while the second, third and fourth quarters recorded N246.3bn, N250.56bn and N254.1bn, respectively.

    In the report signed by the Statistician General of the Federation and Chief Executive, NBS, Dr. Yemi Kale, the bureau said the manufacturing sector generated the highest amount of VAT revenue at N119bn.

    This was closely followed by the professional services sector with N87bn.

    The report read in part, “Sectoral distribution of VAT data for Q4 reflected that the sum of N254.1bn was generated as VAT in Q4 as against N250.56bn in Q3 and N207.35bn in Q4 2016, representing 1.41 per cent increase quarter-on-quarter and 22.55 per cent increase year-on-year.

    “Out of the total amount generated in Q4 2017, N121.09bn was generated as non-import VAT locally, while N79.44bn was generated as non-import VAT for foreign. The balance of N53.57bn was generated as Nigeria Customs Service import VAT.”

    It is, however, instructive to note that 55 per cent of the revenue generated from VAT receipts was being collected from Lagos State while the balance of 45 per cent is being generated from the remaining 35 states of the federation and the Federal Capital Territory.

    Rivers, Kano and Kaduna account for six per cent, five per cent and one per cent of VAT collection, respectively.

    A peep into Africa

    According to new data from Revenue Statistics in Africa released in Addis Ababa at a meeting of tax and finance officials from 21 African countries hosted by the Department of Economic Affairs of the African Union Commission (AUC), the average tax-to-GDP ratio for the 16 countries covered in this second edition of the report was 19.1% in 2015, an increase of 0.4 percentage points compared to 2014. Every country has experienced an increase in its tax-to-GDP ratio compared to 2000, with an average rise of five percentage points.

    Making a case paradigm shift in VAT administration

    It is the considered view of many that the nation’s tax ecosystem, especially the VAT, needs to be changed to achieve the greater good for all.

    One of those who share the view and very strongly too that there is need to shake things up in the VAT space is Omooba Olumuyiwa Sosanya, a renowned accountant.

    Speaking in an interview with our correspondent, Sosanya, founding president, Association of National Accountants of Nigeria (ANAN), said at the centre of the issue of dwindling VAT receipts is the problem of inefficiency in the administration of the VAT.

    According to him, “The problem is overcentralisation of the administration. VAT is a federal government tax controlled by Federal Inland Revenue Service (FIRS). It is this overcentralisation that leads to inefficiency in the administration.”

    Way forward

    In the view of Sosanya, “We should decentralise it and allow the state to administer the VAT. As of now, all the state administers what we call Personal Income Tax. What is being generated on this compare to what could be generated if the states are allowed to collect the VAT is huge.” Pressed further, he said, “Take Lagos State for instance, the total amount of money that is being generated on VAT is over 55 per cent. The FIRS doesn’t have any avenue of determining the genuine turnover from VAT. The Service is overwhelmed in the administration of VAT. Whereas if you allow the state to administer the VAT which is decentralised, each of the state will have time to update their staff to register the chargeable person.”

    Most of the accountants, engineers, and consultant companies, he stressed, “Are not collecting VAT. And from my own estimation, about 70-75 per cent are outside the VAT and that’s what brought us to this mess. There is no way we should not be collecting over 800 billion naira monthly. And when this is done, I’m not saying the rate of VAT should be increased because a lot of people have been agitating for that. If we do that, what we get is that the revenue for FIRS will be less because the people will now understand their taking. However, if we expand on it, it will bring more chargeable persons and businesses and that will generate up to N800 billion to N1trillion in a month. Some people will argue that the Ghana VAT is about 20 per cent. This is because the total of Ghana VAT is decentralised. Even if you’re a barbing saloon you’re captured, restaurants are captured, all private sector in Ghana is captured, the same thing obtains in South Africa. The rate of VAT is less in Nigeria and look at the population of Ghana and South Africa, they are about 200 million, so we are supposed to generate more.”

    In the view of a tax expert, Bamidele Samson, some of the obstacles hampering the growth of VAT are the problem of inadequate personnel to drive the revenue mobilisation in that space, non-compliance of business owners, lack of transparency, evasion of VAT-able goods and services.

    VAT increase likely soon

    Nigeria is working on modalities to increase VAT on some items which include carbonated drinks and other luxury items in 2019.

    Giving insight on the planned VAT rate, Finance Minister, Hajia Zainab Ahmed, says the increase will help the government in providing infrastructure for its people.

    The minister stated this recently at the inauguration of the Strategic Revenue Growth Initiative in Abuja.

    Writing in her twitter handle, @ZShamsuna, the minister said, “Revenue enhancement has become a critical challenge in terms of the need to mobilise fiscal resources to deliver on our socio-economic development targets as in the ERGP & @NGRPresident has mandated us to generate more revenues, whilst proactively monitoring collections.

    “Given the current fiscal terrain & revenue outturn performance – with the realisation of our budgeted revenue at about 50% as at Q3 2018, we have quite a distance to transverse to achieve the ERGP’s target of a tax to GDP ratio of about 15%.”

    It is, however, not the first time the federal government will raise duties on luxury goods. In December 2016, the government raised duties on luxury goods and beverages imported into the country under the Economic Community of West Africa’s (ECOWAS) Common External Tariff (CET) regime.

  • Trade disputes will reduce global GDP, says IMF

    Escalating trade wars between countries, if unchecked, could reduce global Gross Domestic Product (GDP) by one per cent over the next two years, the Managing Director, International Monetary Fund (IMF), Ms. Christine Lagarde, has said.

    Ms. Lagarde, who stated this at the plenary session at the ongoing 2018 IMF and the World Bank Group (WBG) Annual Meetings in Bali, Indonesia, said there  is the urgent need to de-escalate those trade disputes immediately.

    She said apart from the fiscal and monetary threats to economies, countries were still grappling with inequality, technology and sustainability threats, urging that policies should be put in place to effectively address these threats for collective economic growth.

    The World Bank President, Dr. Jim Yong Kim, who also spoke at the session declared open by the Indonesian President, Joko Widodo, said over the last 25 years, more than one billion people have been lifted out of extreme poverty. He gave the global poverty rate as being around 10 per cent, saying it is the lowest it had ever been in recorded history.

    Kim said although the 10 per cent poverty rate recorded was one of the greatest achievements, the fact remains that some 736 million people are still living in extreme poverty – which is less than one dollar and 90 cents a day.

    He said: “A quarter of the world’s population lives on less than three dollars and 20 cents a day, nearly half of the people on earth live on less than five and a half dollars a day. The pace of poverty reduction is also slowing, which means that we have to accelerate our efforts on the three pillars of our strategy to achieve our goals.”

    Kim also said that technology was changing the nature of work adding that technology and automation were replacing scores of tasks and doing away with some jobs. He also said that innovation was changing the scope of existing jobs, creating new occupations and launching career fields that did not exist a few years ago.

    He said if technology is helping raise aspirations and changing the nature of work,” the world has to answer the question of what people will do.?  The key, he pointed out, “is making the right investments in people by ensuring that they accumulate the health, knowledge and skills they need to realise their full potential.”

    On his part, President Widodo warned against trade wars, saying they will make nations poorer. He told the gathering that unilateral economic policies and trade wars do not increase the world’s wealth, but rather make nations and people poorer.

    He said the quest for economic dominance by the big economies would only worsen the world as there would be no winners or losers.

    He said: “While countries are busy fighting, a bigger threat is rising and there is no point of winning in a world of devastation. We should step up our efforts to ensure that the growth is inclusive and the normalisation of policy settings by major economies is well communicated and implemented in a timely manner with minimal adverse spillovers.”

    Widodo said while the global economic outlook was showing some positive signs, there were considerable risks to the outlook, saying it was still unclear whether the positive global growth momentum could be sustained over the longer term.

    He called for the establishment of a global mechanism to help countries cope with natural disasters. He warned that   climate change posed a greater threat, saying addressing it cannot be a one  nation responsibility. No country could be totally safe from the risk of disasters, he said, adding that disasters have caused major human, social, economic and financial impacts in many developed and developing countries of the world.

    “If left unchecked, the economic impact of natural disasters could become a serious impediment to our goal to eradicating poverty, as people lose their jobs and assets. For governments, natural disasters could potentially put pressure on the sustainability of budgets and thus we need to discuss feasible solutions to designing risk financing options, including through the establishment of a funding mechanism for disaster risk and disaster insurance,”

  • UNN relishes more lecture series

    A university lecturer, Mrs. Gwamniru Regina Okafor, has said the economic well-being of a nation is measured by its gross domestic product (GDP). The GDP, she added, is the aggregate value of domestic output of goods and services of a country over a period of time.

    Okafor, a Professor of Economics at the University of Nigeria, Nsukka (UNN) also added that the GDP has widely been accepted as the standard indicator of the relative economic standing of a country in the global economy, saying that a country with a high level of GDP, especially on a per capita basis, was deemed to be economically wealthier and possibly healthier than others with low levels of per capita GDP.

    She maintained that economic activities and performance of all the activities of a country, over a fiscal year, are summarised in the national accounts for the year.

    Prof. Okafor stated these while presenting the 142nd inaugural lecture of the University of Nigeria, Nsukka, entitled “Un-marketed Output of the Household Economy, a Missing Link in the Nigerian System of National Accounts”, at the Enugu campus of the institution.

    Okafor submitted that the standard classification of countries into developed, less developed, developing and under-developed, was based on the GDP criterion.

    She said: “Every country, therefore, should endeavour to capture in its GDP aggregate the value of all goods and services that are deemed to qualify for inclusion in its GDP measurement. Non-inclusion of the value of qualified goods and services would imply an under-statement of a country’s GDP estimate.”

    She noted that due to the overriding importance of GDP in the system of national accounts, its measurement constitutes a very important national economic policy issue, pointing out that in deciding what economic activities to include or to exclude in the GDP accounting measurement, a country should be guided by two important considerations.

    The first consideration, the lecturer continued, was the need to recognise and abide by the  widely accepted international GDP measurement standard and second, the need to recognise all economic activities that contribute to national economic well-being which should therefore be included in the accounting template for GDP measurement.

    The Ekwulobia-born economist however recalled that a pioneer researcher on gender, Boserub, had, in 1970, argued that “the subsistence activities usually omitted in the statistics of production and income are largely household work”.

    She further argued that in a subsistence economy, homestead agriculture and household services constitute the bulk of economic activities and determine the well-being of a typical household, even as she said the contributions of such activities should be included in developing the national accounts, as non-inclusion would imply amount to ignoring the impact of such goods and services on the GDP of a nation.

    The Vice-Chancellor of the University of Nigeria, Nsukka, Prof. Chukwuma Ozumba re-affirmed the commitment of the institution to continue to invest in research and the overall development of human resources.

    Ozumba, who was represented by the Deputy Vice-Chancellor (Academics) of the university, Prof. James Ogbonna, expressed satisfaction that the various academic programmes introduced by the management had led to high rating of the University of Nigeria globally.

    The V-C praised the rich content of the lecture, adding that Prof. Gwamniru Okafor has distinguished herself as an erudite scholar and a good ambassador of the university, having emerged as the first to deliver an inaugural lecture from the Department of Accountancy since its incorporation as a degree-awarding programme in 1960.

    The university’s 5th inaugural lecturer in 1977, Prof. John Umeh, the Rector of the Institute of Management and Technology (IMT) Prof. Austin Nweze, former Provost, College of Medicine, UNN, Prof. Ernest Onwasigwe and  husband of the lecturer, Prof. Francis Okafor were among the dignitaries present at the occasion.

    Also in attendance were the Acting Deputy Vice-Chancellor UNEC, Prof. Justy Nnabuko, the traditional ruler of Ekwulobia and members of the community, the chairman of the Medical Advisory Committee, University of Nigeria Teaching Hospital (UNTH), Ituku-Ozalla, Enugu State, Dr. Obinna Onodugo and HIS brother Dr. Vincent Onodugo, children and grandchildren of the lecturer led by Nkechi Okafor and the Chief Public Relations Officer of the University of Nigeria,Enugu-Campus, UNEC, Mr. Goddy Onah.

  • Experts renew call for tax laws, processes’ review

    Tax practitioners have renewed the call for a review of the nation’s tax laws and their processes, saying it is the only way to drive increased revenue and the Gross Domestic Product (GDP).

    Given Nigeria’s declining revenue base, the experts, who gathered at the maiden edition of GTL Trustees Limited’s Annual Thought Leadership Roundtable Series, in Lagos, during the week, stressed the need for the government to create a robust framework for taxing the informal sector and high net worth individuals.

    They noted that the failure to tackle the myriads of problems besetting tax administration amid global outlook of low oil price would continue to limit the nation’s revenue base and create some level of inequity in the system.

    PricewaterhouseCoopers (PwC), a leading professional services firm, has put the tax-to-GDP contribution at an abysmal six per cent.

    The PwC added that this figure was far less impressive compared with what obtains in other countries, using the same socio-economic parameters where tax-to-GDP could be as high as 15 to 25 per cent.

    “While Ghana and Egypt tax contribute 16 per cent, Morocco and South Africa tax to GDP ratio is put at 22 and 27 per cent, respectively,” PwC said.

    The experts, therefore,  suggested that tax reforms should be carried out urgently to effect relevant and necessary changes in the tax system and address both contentious and contemporary issues.

    a Partner and West Africa Tax leader with Deloitte Nigeria, Yomi Olugbenro specifically regretted that some aspects of the nation’s tax system were posing a threat to investment inflow.

    The government, he noted, must adopt an approach that would help provide a workable tax system and boost the revenue earning capacity.

    According to him, rather than compelling a larger percentage to be more tax compliant, the government should deal with trust deficit.

    Trust deficit, he said, arises when citizens believe that the government will act in their best interest, and it then  becomes harder for government to secure public support for reforms.

    Olugbenro added that taxes paid by the citizenry are meant to support the government to provide social services and development projects hence, when that contract is not being fulfilled, the government finds it difficult to secure citizens’ support

    Oasis Group Limited, Managing Director, Adewale Adegbite, urged government at all levels to accelerate technology adoption in tax administration to boost compliance and improve efficiency.

     

     

     

     

  • Africa’s GDP rising, despite debt increase, says report

    Despite fears over increased debt, several African countries have reported a rise in their Gross Domestic Product (GDP), the latest report by the Institute of Chartered Accountants in England and Wales (ICAEW) has said.

    In its “Economic Insight: Africa Q2 2018”,  launched on Tuesday, the accountancy body provided GDP growth forecasts for various regions, including West Africa at 3.6 per cent, East Africa, which is set to grow by 6.1 per cent, Southern Africa by 2.3 per cent, Central and Franc Zone at 4.5 per cent.

    The report, commissioned by ICAEW and produced by partner and forecaster Oxford Economics, provided a snapshot of the region’s economic performance. The regions include: East Africa, Southern Africa, Central and West Africa and Franc Zone.

    According to the report accessed by The Nation, East Africa’s GDP growth was as a result of Ethiopia, whose real GDP growth of 8.1 per cent, was forecast to result from continued public investment.

    The same kind of capital spending in Egypt, made possible by compliance with reforms proposed by the International Monetary Fund (IMF), will boost growth to 5.0 per cent, making it the key driver behind the 3.9 per cent growth in North Africa’s GDP this year.

    In Central and West Africa, growth was forecast to increase substantially to 3.6 per cent, up from 2.3 per cent in 2017. The standout economy in those regions will be Ghana, where real GDP growth of 7.2 per cent in 2018 was forecast to come partly from increased public investment and the resulting boost to the construction and manufacturing sectors.

    Regional Director, ICAEW Middle East, Africa and South Asia, Michael Armstrong, said: “In spite of debt fears, most African regions have reported positive economic growth – mainly spearheaded by public investment and hydrocarbon resources. However, governments need to sustain this positive momentum while balancing their public debt.”

    The picture in the Franc Zone was slightly more positive than in 2017, with regional GDP growth forecast at 4.5 per cent. Most of the regions’ growth, however, will be provided by the two economies that are not oil dependent.

  • FG pledges commitment to ease of doing business in Nigeria

    Dr Jumoke Oduwole, the Senior Special Assistant to the President on Industry, Trade and Investment‎, says the Federal Government is committed to ensuring Ease of Doing Business in Nigeria.

    Oduwole said this on Tuesday, during a stakeholders sensitization workshop held in Kano.

    The presidential aide, who is also the Coordinator of the Enabling Business Environment Secretariat, said government was taking measures to reduce the duration of doing business.

    She said that the secretariat had made tremendous progress in that regard.

    According to her, the main focus of the Federal Government is on Small and Medium Scale businesses, as they are the major drivers of the Gross Domestic Product (GDP).

    ‎Oduwole said that the secretariat had been able to achieve many things within a short period.

    “We have been able to achieve some things on starting a business, things such as uploading of forms and just simplifying the process.

    “We are basically trying to ensure that Nigeria is a progressively easier place to do business and ‎we are also trying to save on cost and time and amount of documentation.

    “When it is easier to start a business, easier to access credit and easier to pay your taxes, then we know that the reforms are working,’’ Oduwole said.

    ‎She said that the Federal Government had extended Ease of Doing Business from the two pilot states of Lagos and Kano to FCT, Kaduna, Gombe, Ogun and Abia states respectively.

    Earlier, Kano State Governor, Abdullahi Ganduje, said that the state government had keyed into the Federal Government’s initiatives on Ease of Doing Business.

    He said that the Kano ‎Land Bureau had digitized its records and introduced the systematic Land Title Registration (SLTR), and had reduced the time line for a search to one day.

    The governor, who was represented by the Commissioner for Commerce, Mr Ahmad Rabiu, ‎added that registration of Deed of Assignment had also been automated at the Land Registry.

    “We introduced all these in order to ease process of doing business in Kano and Nigeria in general’’ he said.

     

     

  • Nigeria’s economy records 0.83% growth in 2017 – NBS

    Nigeria’s economy records 0.83% growth in 2017 – NBS

    The National Bureau of Statistics, NBS says the country’s economy recorded a real annual growth rate of 0.83 per cent in 2017.

    The NBS stated this in a “Nigerian Gross Domestic Product Report for Fourth Quarter 2017 and Full Year Report” posted on the bureau’s website.

    The bureau stated that the 2017 growth rate of 0.83 per cent was higher than the -1.58 per cent recorded in 2016, about 2.42 per cent difference.

    Meanwhile, the report stated that the nation’s Gross Domestic Product (GDP) grew by 1.92 per cent (year-on-year) in real terms in the fourth quarter of 2017.

    According to the report, the economy maintained its positive growth since it emerged from recession in the second quarter of 2017.

    Read Also: Economy grows 1.92% in Q4 2017, says NBS

    It stated that the growth was compared to a contraction of -1.73 per cent recorded in the fourth quarter and a growth of 1.40 per cent recorded in the third quarter of 2017.

    In the quarter under review, aggregate GDP stood at about N31.2 million in nominal terms higher, compared to N29.16 million in the fourth quarter of 2016, resulting in a nominal GDP growth of 6.99 per cent.

    The report stated that the growth was lower relative to what was recorded in the fourth quarter of 2016 which was 12.49 per cent.

    Nominally, the report stated that 2017 recorded an annual growth rate of 12.05 per cent higher by 4.25 per cent compared to 2016 annual growth of 7.80 per cent.

    The report stated that GDP growth in the fourth quarter was driven by growth in crop production, crude production and natural gas, metal ores, construction, transportation and storage, trade, electricity and gas production.

    It stated that crop production grew by 4.58 per cent in the period under review, compared to 3.19 per cent in the third quarter of 2017 and 4.36 per cent in the fourth quarter of 2016.

    The report stated that crude production grew 8.38 per cent in the fourth quarter of 2017, compared to 25.89 per cent in the third quarter of 2017 and a contraction of -17.70 per cent in the fourth quarter of 2016.

    It further stated that metal Ore grew to 31.86 per cent in the fourth quarter of 2017, compared to 10.70 per cent in the third quarter of 2017 and 7.03 per cent in the fourth quarter of 2016.

    In addition, the report stated that construction grew by 4.14 per cent in the fourth quarter of 2017 compared to a contraction of -0.46 per cent in the third quarter of 2017.

    This, it stated, recorded another contraction of -6.03 per cent in the fourth quarter of 2016, representing the strongest growth in construction since the second quarter of 2015.

    It stated that transportation and storage grew by 16.57 per cent in the fourth quarter of 2017, compared to -6.25 per cent in the third quarter of 2017 and -5.32 per cent in the fourth quarter of 2016.

    NAN

  • DGN plans Africa creative summit for members

    DGN plans Africa creative summit for members

    With a wide consideration of Nollywood as the potential new oil well of the Nigerian economy, the Directors Guild of Nigeria (DGN) is on the path of a pragmatic economic revamp that will not only make its members some of the best in Africa, but also make Nollywood a proudly Nigerian product with the desired Gross Domestic Product (GDP) earnings.

    The Fred Amata-led administration, intends to achieve this feat through a capacity-building summit, believing that it is only by empowering its members that enviable creative content can evolve.

    After an initial summit meant to hold at the Hotel Presidential, Port Harcourt, Rivers State on November 24 and 25, 2016 could not take place, there was just an ample opportunity to make it bigger, as notable film producer, Don Pedro-Obaseki is throwing his weight behind the initiative.

    According to Brainz, a consultant on the project, representing Brainz & Lloyds International, a Dublin-based TV and Film Consortium, there is the need to engender cooperation between foreign technical experts and the Nigerian creative professionals.

    She said: “We will focus on developing economic and technical creative side of entertainment relationships within industry. We will also be addressing this constraint by having workshops to refocus on the technicalities of film, television, audiovisual, music, radio, entertainment law and creative investment.”

    The summit is expected to attract corporate investors, relevant government agencies, captains of industry, Studio owners and other influencers in the creative sector of the economy.

    President of DGN, Fred Amata, noted that the summit will hold in three cities of Lagos, Kaduna and Asaba in April of this year, adding that the initiative has already received the endorsement of the Kaduna State government.

    This was just as Mr. Obaseki is optimistic that content of Nollywood films, which will invariably drive box office sales, will improve after the three-day summit.

    With some Nigerian films now beating Hollywood movies to box office earnings, DGN feels it is just time to conquer whatever technical deficiencies that are left and evolve a more auditable structure for Nollywood to grow as a subsistence and export product.