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Tag: NACCIMA

  • NACCIMA decries epileptic power supply

    NACCIMA decries epileptic power supply

    The Association of Chamber of Commerce Industry, Mines and Agriculture (NACCIMA) has decried poor electricity supply in the country, especially to the manufacturing sector.

    NACCIMA President Mr. Bassey Edem said the positive outlook of the energy sector early in the year could not be sustained, as power generation has continued to drop in the last three months.

    He spoke to The Nation in Lagos on challenges facing the Organised Private Sector (OPS), which has resulted in lack of capacity utilisation. He condemned the vandalisation of pipelines, which has hampered the supply of gas to the power plants.

    Edem advised the government to improve alternative and renewable energy sources for power generation to overcome the challenges. He said: “It is about time the government considered decentralising power transmission.

    “It is also important for investors in the power sector to ensure that consumers get value for money, while efforts are intensified on the distribution of pre-paid meters. The recent signing of power purchase agreement by the Federal Government and 14 solar energy firms is a welcome development.”

    The NACCIMA president urged the government to ensure strict adherence to the timeline in the agreement, so that within the shortest possible period there would be an improvement in power supply in the country, while they continue to work towards achieving the 30, 000 Megawatt (MW) target to meet the needs of every sector of the conomy.

    Bassey also called on the government to put in place measures that will address the immediate negative impacts of the new Foreign Exchange policy. He also asked that commitments and outstanding Letters of Credit (LCs) by importers with naira cash backings, that were billed at the new exchange rate to the importer, be retained at the rate with which the form ‘Ms’ were issued.

    He said in the alternative, the Central Bank of Nigeria (CBN) should introduce a form of palliative measure to reduce the resultant loss incurred by importers.

    According to him, the quest to attract Foreign Direct Investment (FDI) can only materialise  when foreigners see the prosperity of indigenous companies. He said the unhealthy business environment has led to the relocation of many companies, especially the multinationals, who have gone to other African countries to set up their businesses.

    Bassey criticised some of the economic policies of the government, especially with Diaspora remittances, which he said may be difficult to recover by those who sent them as a result of the not so clear and inconsistent Forex policy.

    On Economic Partnership Agreement (EPA), the NACCIMA boss argued that although it is a good concept, local manufacturers have not developed to a level that can accommodate the agreememnt. He said: “Overseas countries are not aware of the challenges of power and the crisis of poor infrastructure provision in all its ramifications. Putting all that into consideration, we cannot support EPA now as the ratification will make us uncompetitive”.

    The NACCIMA boss also berated the Federal Government over the non inclusion of members of the private sector in the economic team. He wondered how the peculiar challenges facing the private sector can be adequately addressed when they are neglected in such an important group.

  • NACCIMA seeks lower interest rate for investors

    NACCIMA seeks lower interest rate for investors

    To diversify the economy into the non-oil sector, there is need for  the government to ensure lower interest for investors, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has said.

    Its President, Bassey Edem, said the  interest rate charged investors by banks to investors were too high to stimulate the much-needed growth to lift the economy out of the woods.

    He spoke on the sideline of the review of the state of the economy and perspective on some trending socio-economic issues in Lagos.

    He described the economic situation as harsh, adding that rising inflation has reduced the real income and the purchasing power of the average Nigerian.

    He noted that inflation rate had risen from 9.55 per cent to 16.45 per cent since the beginning of the year, the highest point since 2005.

    He said the Gross Domestic Product (GDP) growth rate in the first quarter of the year was minus 0.36 per cent compared with the growth rate in the fourth quarter of last year, which it said, was 2.11per cent while the GDP growth rate in the first quarter of last year was 3.96per cent.

    Again, the same time, external reserves, decreased from $28.02 billion as at last February to $26.35 billion.

    Monetary Policy Rate (MPR), according to him, has been increased to 14 per cent from 11 per cent by last February.

    Edem added that the interest rate maintained a double digit figure, with the prime lending rate at 16.13 per cent and maximum lending rate of 26.73 per cent.

    The NACCIMA chief said the real sector is suffering from rising costs of production in a state of near economic stagnation while facing the prospects of being the base by which the government hoped to obtain tax revenue to finance the economy.

    “We note that the private sector, and by proxy, the majority of the populace which still exhibits confidence in the present administration are waiting anxiously to see the “Change” and dividends of democracy promised”.

    He urged the government to continue its fight against insecurity and corruption, adding that it should also stimulate the  economy.

    He said NACCIMA would continue to partner the government in actualising its economic plan for the country to ensure economic transformation and social development of the nation.

    “In the last six months, the outlook of the economy has been bleak. The rate of inflation has almost doubled, electricity generation has reduced by almost 50 per cent and the price of petroleum products has also doubled.

    “Again, foreign exchange earnings have continued to drop significantly due to reduction in output caused primarily by the vandalism of infrastructure and low crude oil prices in the global market,” he noted.

    Edem, who acknowledged the Federal Government for addressing these issues, said these  have not translated into measurable positive indicators, adding that it has rather led to recession has become worrisome to private sector operators.

  • Private sector holds the key to economic growth, says NACCIMA

    Private sector holds the key to economic growth, says NACCIMA

    The National President of the Nigerian Association of Chambers of Commerce, Industry and Agriculture (NACCIMA), Chief Bassey Edem, believes Nigeria has a lot to learn from China if it wants to get out of economic quagmire. He spoke at a summit on Africa-China Relations organised by Africa Today. Excerpts from his paper:

    The topic of this paper “The Private Sector is the engine of Economic Growth – the Chinese Experience and need for replication in Nigeria”, is not only appropriate but also important at this time that the Federal Government had just signed various Memorandum of Understandings (MOU) with the Chinese Government, as part of its effort to rejuvenate the Nigeria’s economy through Infrastructural Development and other important economic activities.

    The Private Sector has been recognised as a key engine of economic development all over the world, and has even taken a new dimension in Nigeria with the zeal the current administration is putting into the rejuvenation of the Nigerian Economy.

    Private sector in Nigeria comprises of a heterogeneous mix of large-sized multinational corporations and large numbers of Micro, Small and Medium-scale Enterprises (MSMEs). With this in view, the broad based and rapid economic growth, largely due to private sector development can have a dramatic positive impact on economic transformation and poverty reduction.

    However, Nigeria is yet to attain the place of economic prosperity that it should be, considering the enormous resources the Nigerian Private Sector possesses. This is why the choice of China as a point of reference at this event is perfect, considering China’s role as one of the world leading economies and by some indicators, the largest economy if measured in purchasing power parity. Also, China is currently the world largest consumer of energy, which proves that the China’s private sector led economy is a growing one especially in Manufacturing.

     

    The Chinese economy

     as a case study for Nigeria

     

    Nigeria as a country has a lot of things to learn from China considering the similarities in some economic factors in both countries which include population and GDP. As China is the most populated country and the second largest economy in the world, so is Nigeria the most populous country and the largest economy in Africa. It is a known fact that the existence of an efficient human capital development is vital to the economic growth and development of any nation, Nigeria being the largest Africa nation can emulate China in the area of effective human capital development which would boost productivity and efficiency. There is also a similar trend in the growth rate of the private sector of post-reform China and that of Nigeria at present. Available statistics show that in 2010, there were over 17million MSMEs employing about 30million people and by 2013, this had grown to over 37million MSMEs employing over 59milion people, indicating an annual growth rate of 29%. This provides the unique opportunity to emulate private sector policies that contribute to economic growth like those of China.

     

    Positioning the Nigeria’s

    private sector for economic growth

     

    Prior to 1986, the economy of Nigeria was largely dominated by the public sector. However, in 1986, the Structural Adjustment Programme (SAP) was introduced, which radically shifted emphasis to the private sector as the catalyst for economic development. Following this, several other programmes and policies were introduced to support the private sector activities in the country. These include:-

    • The 2004-2005 financial policy of recapitalization which set the minimum paid up capital for Commercial Banks at N25 billion (about $208 million);
    • The establishment of Small and Medium Industries Equity Investment Scheme (SMIEIS) in which Banks contributed 10 per cent of their profit after tax;
    • The Setting up of Microcredit Fund requiring Banks and individual state government to contribute 5% each to the Fund; and
    • Vision 20-2020 which aims at making Nigeria the 20th largest economy by the year 2020.

    Nevertheless, most factors affecting private sector investment in Nigeria have not shown a significant improvement over the years. Financial liberalization did not improve the level of savings, which is a possible source of increased investment while the share of Domestic Credit to the Private Sector still remained very low, averaging 14.6 percent as at 2014. This could be as a result of political instability, corruption, inadequate infrastructure and poor macroeconomic management. However, the current administration is reinvigorating  its determination to turn around the country’s economy through diversification of the economy and cooperation with developed countries which includes China.

    With the various MOUs signed during the recent state visit of President Mohammadu Buhari to China, the Government of Nigeria needs to:-

    • Improve on the ease of doing business in Nigeria through the provision of basic infrastructures and ensuring discipline in the activation of the different economic policies that are being introduced.
    • Make conscious effort to ensure easy access to finance by the Private sector particularly the MSMEs while protecting their various investments;
    • Partner with the private sector in its agenda to diversify the country’s economy which is expected to lead to business expansion, growth and increased employment.

    The Private sector operators also need to ensure that they:-

    1. Build synergy among themselves which would lead to the establishment of larger corporations and improved business activities in the country;
    2. Take advantage of the technology transfer that are readily available within Nigeria and with countries such as China to boost their efficiency and productivity.

    iii.       Make conscious effort to produce products that meet international standards

    1. Move away from entering into partnerships for product distribution but enter more into joint ventures that will ensure transfer of technology and productivity.

    CONCLUSION

     

    The Private sector is the backbone of national development of any country, and the Nigeria’s private sector have the capacity to turn around the economy of this country if the potentials are well harnessed and the business environment is conducive.

    Effort should be made by all stakeholders in the economic activity of Nigeria to support the current administration in their effort to revitalize the Nigeria economy so that the Sustainable Development Goals (SDG) can be achieved.

    It is in this wise that turning to China, where very significant feats have been achieved, will be more beneficial to us in Nigeria.

     

  • NACCIMA seeks review of N50 stamp duty levy

    NACCIMA seeks review of N50 stamp duty levy

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has called on the Federal Government to review the recently introduced N50 stamp duty.

    The association said the introduction of charges on all banking transfers has become a cause for concern among private sector operators, as it has added to their overhead cost in spite of different challenges they faced.

    NACCIMA President, Chief Bassey E.O. Edem, argued that though the charge is constitutional and understandable in this period that government is making efforts to shore up its revenue, government should mitigate the effects of the charge by increasing its domestic spending.

    Chief Edem, who spoke with The Nation in Lagos, on the prevailing economic situation in the country, stated that several policies introduced by the Central Bank of Nigeria (CBN) to stimulate the economy fall below the expectations of the business community.

    He said: “While we appreciate the review of the foreign exchange policies by the CBN to allow for behind-the-counter forex transaction, it is however, important to note that the margin between the official rate and parallel market is too wide to support international trade considering the long list of prohibited items.

    “Also, having put in place measures to eliminate round tripping, it is now expedient for the apex bank to review the list of prohibited items to allow importers of raw materials that are not readily available in the country to have access to foreign exchange thereby preventing further collapse due to high cost of production.”

    Edem called on CBN to develop a strategy that would encourage manufacturing industries that have the capacity to manufacture exportable products and raw materials, so as to enhance the nation’s foreign exchange earnings and further reduce the dependence on crude oil earnings.

    On interest rate, the NACCIMA chief stressed that the interest rate, which hovers between 17 per cent and 28 per cent is a major challenge to the business community, in spite of the reduction of Monetary Policy Rate (MPR) from 13 per cent to 11 per cent.

    According to him, this has also reflected in the credit to the private sector, which currently stands at N18.719 trillion, translating to only five per cent as against the benchmark of 25 per cent.

  • NACCIMA faults CBN’s policies

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has  faulted the policies of the Central Bank of Nigeria (CBN) the apex bank said were designed to stimulate the economy and salvage the naira.

    Its President, Dr Bassey E. O. Edem, who spoke with reporters during a press briefing on the state of the economy in Lagos yesterday, lamented that inflation rate has continued to increase steadily and peaked at 9.55 per cent last month as against 8.0 per cent for the same period last year.

    He said if the increase in the elctricity tariff is the elixir needed to attract investmment, it should be.

    He however said  estimated billing should be stopped by the electricity distribution firms because it is exploitative.

    He said: “The exchange rate, hovered between N197 – N199 to the dollar as at February 4 this year as against N165 – N170 obtained in the same period of 2015 in the official market. In the parallel market, it hovered between N300 – N330 to the dollar within the same period as against N180 – N190 in the corresponding period of last year.

  • NACCIMA decries high interest rate

    NACCIMA decries high interest rate

    The Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has decried the high interest rate, which hovers between 17 and 28 per cent, noting that it is a major challenge to the business community. The Association argued that this may continue as long as the Central Bank of Nigeria (CBN) retains the Monetary Policy rate (MPR) at 13 per cent.

    Speaking with The Nation in his office in Lagos, on the state of the economy, NACCIMA President Mr. Bassey Edem asked the Federal Government to revisit and also consider the need to bring down interest rate to a single digit. He argued that if this is achieved the lending rate of banks will automatically be forced down. He said the effort by the government to stimulate the real sector of the economy may be in futility if the current trend in lending rate continues.

    Edem called the attention of the government to the fact that manufacturers are faced with infrastructural and operational challenges, which have limited operations and by extension the growth of businesses. He noted that the ability of manufacturers, entrepreneurs and indeed, the real sector to access funds for operations may be hampered if the trend continues.

    The NACCIMA chief said although, the chamber appreciates CBN’s effort at salvaging the country’s foreign reserve through the introduction of several management policies, some of them however, affected the free flow of international trade and restricted transactional leverages. He therefore, asked the CBN to put in motion action plans that will rejuvenate the economy to prevent it from going into recession.

    He said, for instance, that the apex bank needs to review the foreign exchange policy on imported goods vis-à-vis the commitment that had been made before the commencement of the CBN policy on the 41 prohibited items.

    The NACCIMA President however, maintained that the state of the economy as at the end of September 2015 did not leave much to cheer.

    According to him, the economy has been tottering due to the fact that major policies expected to drive the economy are yet to improve to meet the expectation of the business community.

    He reiterated the organised private sectors’ call on the federal and state governments to explore the provision of alternative energy sources for power generation such as solar, coal, and hydro to overcome the challenges of power supply in order to achieve the 20,000 megawatt target. He stressed that no meaningful progress can be made in the efforts to diversify the economy if the supply of stable power is not achieved.

  • NACCIMA launches e-certificate

    The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has launched the electronic or e-Certificate of Origin designed to tackle the ban imposed on products from Nigeria and other countries by the European Union (EU).

    Its NACCIMA, Mr. Bassey Edem, said the e-Certify, as the product is called, will help ensure credibility and further authenticate every Nigeria products, be it natural or manufactured in to ensure a new growth segment for the Nigeria economy.

    He said the e-Certify is geared towards supporting product traceability, ease of doing business and accountability for all export originating from Nigeria.

    On how the process works, Edem said henceforth, all registered and unregistered members of NACCIMA in the private sector, especially corporate entities engaged in export business will have a single source of e-certification to guarantee speed, efficiency and record keeping. This, he said, will further enhance the country’s visibility as product origin can be easily verified and traced.

    Its National Vice President, Mr. Billy Harry, said the new NACCIMA e-Certify will collate new export statistics, assist the Nigeria customs and excise to function more efficiently by this additional electronic tool that will guarantee swift and flawless confirmation of export products from Nigeria through the portal.

    He said: “It is NACCIMA’s responsibility, by the International Chamber of Commerce (ICC) to ensure that all Certificate of Origin are traceable, accountable and transparent to ensure product acceptability by the terms of export agreed at the G77 and D8 countries for all export products emanating from Nigeria.

    “These were endorsed and agreed to by the Federal Government through the Federal Ministry of Industry, Trade and Investment in 1987 and 2014.

    “The Nigeria Export Promotion Council (NPC) and Nigeria Investment Promotion Council (NIPC) respectively will have a much more effective platform to get accurate data on export as the electronic portal of NACCIMA e-Certify will be accessible to confirm and authenticate certificate of origin from Nigeria.”

    Harry said going forward, all certificates of origin will be accompanied with declaration of value addition and products made in Nigeria for export under the preferential or standard export procedure, adding that this will be archived securely and can be accessed by respective agencies related to exportation and importation into Nigeria.

    According to him, all regional, state and city chambers of commerce will input all certificate of origin applications and documentation in a centrally processed portal for easy archiving, collation and reporting of information to relevant agencies and authorities.

    “It will therefore be an invaluable source of record and information to measure balance of trade between the G77 and D8 countries that are signatory to preferential and standard export procedures with Nigeria,” he said.

  • Economy in doldrums, says NACCIMA

    Economy in doldrums, says NACCIMA

    Nigerian Association of Chambers  of Commerce, Industry, Mines and Agriculture (NACCIMA) has said the economy has performed below expectations.

    It blamed the parlous state of the economy on the absence of policy thrust of the current administration.

    Its President,  Chief Bassey Edem who spoke yesterday in Lagos to reporters on the  State of the Economy, urged the government to show leadership in  policy direction to drive the economy.

    He said: “While we appreciate the enormity of the task inherited by the new administration and its effort in ensuring that the economy is re-engineered to meet up with the yearnings of the business community, it is important to note that what an average Nigerian desire at the moment is for the ‘Change’ they voted for to be translated into significant positive impact on the real sector and the economy in general.”

    On macro-economic indicators, Edem lamented the decline of the external reserves  to $30.63 billion from $31.20 billion while interest rate remained at double digit of between 17 per cent and 28 per cent as against a single digit rate expected by business operators.

    He said this remains a major challenge to the business community and predicted that it may continue as long as the Central Bank of Nigeria (CBN) retains its policies.

    He advised government to revisit and also consider the need to bring down the rate to a single digit, which will automatically force down the lending rates.

    According to him, capacity utilisation in the real sector continued to hover around 45 per cent showing huge unutilised capacities. However, he maintained the real sector is still grappling with infrastructure deficit such as insufficient power and energy supply that could make it assume its position as the engine of economic growth.

  • NACCIMA gets new DG

    NACCIMA gets new DG

    The Nigeria Chambers OF Commerce, Industry, Mines and Agriculture, NACCIMA has appointed Mr Emmanuel Cobham as Director-General.

    Cobham has varied experience which he garnered at senior levels in the state, national and international organisations.

    He was a Correspondent on the Network Service of NTA, served four Military Administrators and  Governor of Cross River State as Chief Press Secretary and Director of Press Affairs from 1992 to 1999.

    He worked briefly at the African Union Commission (AU) as Legal Officer in the Security Arrangements and Ceasefire Commission, one of the three Commissions during the Seventh Round of the Talks on the future of Darfur in Abuja, thus putting him in a good stead to appreciate the workings of International organisations.

    He served as Executive Secretary, Manufacturers Association of Nigeria (MAN) Cross River/Akwa Ibom states Branch, and lately, Executive Secretary of the Calabar Chamber of Commerce, Industry, Mines and Agriculture before assuming duties as the DG.

    Cobham attended Apapa Baptist Primary School, Lagos; Gaskiya College, Cardoso, Lagos; Community Secondary School, Ugep; University of Lagos, (UNILAG); University of Calabar, (UNICAL); Imo State University (IMSU); Television College, Jos and the Nigerian Institute of Journalism, Lagos.

    He holds a Certificate in Entrepreneurship Development from the Central Bank Entrepreneurship Development Center Calabar.

    Cobham served as a Senior Reporter, Newscaster and Correspondent Anchor, Nigerian Television Authority, Channel 9, Calabar, and NTA Network Center, Lagos, 1984 to 1991. He served as  Chief Press Secretary to the Governor of Cross River State, from 1992 to 1993; Director of Press Affairs to four other Military Governors/Administrators of Cross River State, between 1993 and 1999.

     

    He was a Director of Information, Cross River Civil Service Commission,  Director, News and Current Affairs, Cross River Broadcasting Corporation between 1999-2003, Legal Officer, African Union Commission, AU Mediation on the Inter-Sudanese Peace Talks on Dafur, Sudan, 2005-2006; Special Assistant to Chairman, Ceasefire and Security Arrangements Commission, A.U Abuja;  Litigation Officer, Messes Tochukwu Onwugbufor (SAN) & Associates, Abuja 2007. He practised as a lawyer between 2007 and 2010.

  • NACCIMA to govt: Explore alternative energy sources

    The Nigeria Association of   Chambers of Commerce Industry Mines and Power (NACCIMA), has urged the Federal Government to demonstrate the political will to implement its policy on alternative energy sources.

    It said this is an important step for government to achiev stable power supply in the country to stimulate economic activities.

    Its President, Alhaji Mohammed Badru Abubakar  said in view of the critical role that power plays in the development of the national economy, government must work  closely with the generating companies  and distribution companies to achieve the desired energy requirement of the country. He said: “All stakeholders in the power sector should collaborate to improve on the current output, which hovers between 3,200megawatts (Mw) and 3,500Mw.”