The Nation Newspaper

Tag: Nigerian news

  • Edo govt, stakeholders partner to boost tourism

    The Edo State government and stakeholders in the state’s tourism sector have identified new channels and offerings to attract more tourists to the state, as part of strategies to expand the portfolio of its assets in the arts, culture and tourism sector to grow inbound tourist traffic.

    This was the outcome of a parley organised by the Ministry of Arts, Culture, Tourism and Diaspora Affairs, to mark the  World Tourism Day in Benin City, the state capital.

    Held at the Ogba Zoological Garden in Benin City, the stakeholders said the new offerings would include siting of clean markets for tourists, inclusion of tourism studies in school curricula, re-engineering of monuments to their original specification and promotion of community tourism.

    Commissioner for Arts, Culture, Tourism and Diaspora Affairs, who was represented by the Permanent Secretary in the ministry, Mrs. Dorcas Idehen, said the state government is reviving tourism sites in the state to provide means of livelihood for youths and women and also boost economic diversification. He urged youths to take advantage of reforms in the tourism industry to make money for themselves and their households.

    The commissioner stressed the need for preservation of Edo culture; its language, food and history through which more tourists can be attracted to the state.  He assured that adequate preparation is being put in place ahead of the hosting of the National Festival of Arts and Culture (NAFEST), during which jobs will be created and boost the state’s tourism potential.

    The Managing Director, Ogba Zoological Garden, Andy Ehanire, said tourism remains a veritable means of boosting job creation in Edo State, especially with the state’s rich cultural heritage, sites and monuments.

    Ehanire highlighted factors that would improve tourism development in the state to include siting of clean markets for tourists; inclusion of tourism studies in school curricula, and re-engineering of monuments to their original specification and promotion of community tourism.

    He noted that tourism offers a lot of opportunities for youths to be engaged as tour guides, travel agents, tour operators, among others.

  • Quest for economic emancipation continues

    As Nigeria celebrates her 59th year of independence, the state of the economy now and in the coming years has been of concern to government and observers. The Muhammadu Buhari administration’s second term will make or break the administration depending on the policies it churns out and how effectively it executes them, Assistant Editor, Nduka Chiejina reports.

    Determined to continue  the struggle to acheive total economic independence thropugh policy formulation and implementation, the executive arm of government submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the  National Assembly.

    The document set fiscal targets and strategically allocating resources to achieve developmental aspirations that are central to the planning and budgeting process.

    The MTEF and Fiscal Strategy Paper (FSP) provide information on the impacts of government’s economic and fiscal policies, economic and fiscal environment update, as well as budget policy/process.

    It is a tool required by law, to ensure and sustain the link between policy on one hand and planning/budgeting on the other, over the medium-term, on a three-year rolling basis.

    It is designed to translate economic plans into public expenditure programmes within a coherent multiyear macroeconomic and fiscal framework. It indicates fiscal targets and estimates revenues and expenditures, including government financial obligations.

    To restore the economy to the path of growth, the 2020-2022 MTEF/FSP will signal the direction of government priorities and programmes to accelerate growth.

    The MTEF/FSP will set out the key parameters and assumptions underlying fiscal policies, as well as the revenue and expenditure profile of the 2020 federal budget.

    According to Finance Minister , Mrs Zainab Ahmed, “the projections contained will be guided by budget realism.”

     

    Macro-economic performance

    The says the economy has gained some traction, having sustained eight consecutive quarters of gross domestic product (GDP) growth. “Annual growth has increased from 0.82per cent  in 2017 to 1.93 per cent in 2018 and 2.10per cent in 01 2019 (an upward revision from 2.01 per cent due to oil output revisions). However, the growth of 1.94per cent observed in 02 2019 indicates a decline by 0.16per cent points. The performance observed in 02 2019 follows an equally strong first quarter performance and was aided by stability in oil output” the document said.

    Nigeria signed the agreement establishing the African Continental Free Trade Area (AfCFTA), on  July 7, after extensive stakeholders’ consultations and impact/readiness studies. AfCFTA is expected to boost intra-African trade and engender the development of policies that promote African production. AfCFTA intends to cover goods and services and has complementary programmes for infrastructure, industrialisation, agriculture modernisation, small scale trade, as well as innovation, intellectual property, competition and investment.

     

    Monetary policy

    The Central Bank of Nigeria (CBN) reduced the Monetary Policy Rate (MPR) by 50 basis points to 13.5per cent in March 2019 after holding it steady at 14.0per cent for 20 months, but retained the Cash Reserve Ratio (CRR) at 22.50per cent and Liquidity Ratio at 30.00per cent. However, the MTEF document raised serious concerns that “in reality, the MPR has ceased to be a key determinant of market interest rates over the past three years. Average lending rates of Deposit Money Banks (DMBs) over the last three years have ranged from 15.33per cent to 31.05per cent” the document said.

     

    Fiscal policy

    Nigeria’s revenue base is broadly categorised into oil and non-oil. Oil revenue is primarily from crude oil receipts while non-oil earnings are from taxes generated.

    The document read: “Receipts from both sources have collectively accounted for about 65per cent of total receipts since 2015. In response to the economy lapsing into recession in 2016, government’s fiscal policy stance was to increase aggregate expenditure. Hence, there has been a rise in nominal budgetary expenditure in the past three years.”

    Making adjustments for inflation, output growth and currency depreciation, the document said “expenditure remains lower than its pre-recession level.” It expressed worries that the current fiscal position is ‘threatened by widening fiscal deficit’, which has forced the government to increasingly access the debt markets to meet its obligations.

    “The resultant rise in debt has increased the federal government’s debt service obligations as a percentage of federal revenues to over 50per cent, thereby raising debt sustainability concerns. It is therefore imperative that government explores alternative means to raise substantially higher revenues to sustainably meet all its obligations” the document urged.

     

    Budget 2019 implementation

    The 2019 Budget Proposal was intended to place the economy on “the path of higher, inclusive, diversified and sustainable growth, in order to continue to lift significant numbers of our citizens out of poverty.” However, the performance of the key parameters driving the  budget year-to-May shows that GDP growth, opil production were below target, while oil price is running ahead of projection.

     

    Key performance parameters

     

    Oil revenue

    Gross oil and gas budget revenue is projected at N9,326.95 billion for 2019. Of this, N3,886.23 billion was expected as at end-May on prorata basis. However, only N2,162,30 billion was realised. This represents 81.5per cent performance. After deductions (including 13per cent derivation), net oil and gas revenue inflows to the Federation Account amounted to N1,432.07 billion. This represents a shortfall of N1,736.55 billion (or 22.8per cent of the prorata amount). Lower than projected oil production, as well as front-loaded costs by NNPC for federally funded projects, were largely responsible for the shortfall.

     

    Non-oil revenue

    The sum of N1,715.38 billion was generated as non-oil revenues as against N2,140.21 billion projected. This implies a collection performance of 80.1per cent. Of this, Corporate Tax and value added tax (VAT) collections were N666.74 billion and N604.98 billion, representing 75.7per cent and 70.9per cent collection performance respectively. Customs collection was N408.17 billion or 100.5per cent of the projection as at June.

     

    Federation,VAT distributable

    The cash available for distribution from the Federation Account was N2,964.83 billion, representing 57.5per cent of N5,156.56 billion expected .. Of this, the Federal Government received N1,562.37 billion while the states and local lovernments received N791.92 billion and N610.54  billion respectively. Federal, state and local governments received N87.17 billion, N290.56 billion and N203.39 billion respectively from the VAT Pool Account.

     

    Federal Govt revenue

    Federal Government’s actual revenues totaled N2,043.32 billion out of N3,499.24 billion projected as at June 2019. Out of this, oil revenue was N900.42 billion (49per cent of prorata budget) while non-oil taxes and independent revenues were N614.57 billion (87per cent of the prorata budget) and N217.84 billion (69per cent of the prorata budget) respectively.  Company Income Tax (CIT) and VAT collections were N349.11 billion and N81.36 billion respectively, representing 86per cent and 71 per cent of targets. Customs collections was N184.10 billion, of which N173.28 billion was from import duties, excise and fees, while N10.83 billion was from Special Levies.

    The shortfall in CIT collections is partly due to seasonal factors as most companies remit their income taxes during the second half of the year. The slow recovery in economic activities that drive consumption and the lingering security issues contributed to the underperformance of other non-oil revenue sources such as VAT. Non-oil revenue collections, especially income and consumption taxes, are expected to improve as the fiscal year progresses and economic activities increase, with improvements in tax collection efforts, and continuing implementation of policies to improve the environment for doing business in Nigeria.

     

    Expenditure

    Of the N4,458.48 billion budgeted spending by half-year 2019, N3,390.13 billion has been spent, that is, 76per cent. The spending was largely on recurrent expenditure, including N1,109.10 billion for debt service. “As at end of June 2019, no release has been made for capital expenditure as the Budget was only signed into law in June 2019.”

    Implementation of the capital budget will be expedited to ensure that critical priority projects are completed or substantially progressed.

     

    Non-oil revenue

    N1,715.38 billion was generated as non-oil revenues as against N2,140.21 billion projected. This implies a collection performance of 80.1 per cent. Of this, Corporate Tax and VAT collections were N666.74 billion and N604.98 billion, representing 75.7per cent and 70.9per cent collection performance respectively. Customs collection was N408.17 billion or 100.5per cent of the projection as at June 2019.

     

    MTEF 2020-2022

    For the medium term years of 2020-2022, the Gederal Government has set a benchmark oil price of $55 per barrel. This, the government said, “is very important to set the oil price benchmark below the forecasts in order to insulate the budget from the usual significant adverse effects of the price falling below the budget benchmark. More importantly, the approach would enable us to build fiscal buffers which can be used to respond effectively to negative oil price shocks in the medium term. Adequate buffers are useful in preventing pro-cyclical policies which would require significant expenditure reduction when oil prices are down, thereby impeding economic growth and development.”

     

    Non-oil revenue assumptions

    The assumptions underlying the non-oil revenue forecasts for the period 2020-2022 are based on estimates mainly determined using “anticipated growth in the relevant bases for different taxes, the effective tax ratio of collections, and the projected efficiency factor taking account of operational improvements in the operations of the various tax administrators.”

    The various measures to improve non-oil tax revenue in the medium term include stronger enforcement efforts against tax defaulters; implementation of the Integrated Tax Administration System project; full self-assessment regime for all taxpayers; increased deployment of new technology to improve revenue collection; and stepping up of anti-smuggling activities by the Nigeria Customs Service (NCS). Government the document revealed “intends to sustain the increase in contribution of tax revenue to the budget through continuous reforms to modernise and further improve tax administration.”

     

    Underlying bases

    The projections of import duties are based on the cost, insurance and freight (CIF) value of imports, applicable tariffs, and an efficiency factor. The nominal growth of the tax base was assumed to be driven by a tax elasticity in the medium term. The Nigeria Customs Service (NCS) is employing the use of technology to enhance efficiency in customs revenue collection.

    The Service will continue the roll-out of the Nigeria Integrated Customs Information System (NCIS II) trade portal across the country for declaration, processing, licencing and exemptions and manifest submission. This solution the document said “will merge the different stand-alone systems and block all loopholes identified in the current system. To further eliminate revenue leakages in the calculation of customs duty, insurance will be automated to complement the automation of Form M (Cost) and Manifest (Freight).”

    In addition, excise trade will be automated using blockchain technology. This will bring greater transparency and accountability across complex business networks, enabling real time tracking of assets. In the medium term, the NCS will introduce frameworks for effectively recovering duties, taxes and appropriate fees from transactions conducted over electronic networks such as the internet. Also, non-intrusive inspection technology equipment (scanners) will be procured and deployed to critical ports to ensure national security and trade facilitation.

    To further increase port efficiency, tighten border controls to check smuggling and reduce revenue leakages, the Single Window Project will be implemented.

    Companies Income Tax (CIT) projection in the medium term is based on the estimated nominal GDP, companies’ profitability ratio, and an efficiency factor. In addition, improved collection efficiency arising from increased efforts at broadening and strengthening the tax net, taxpayer engagement/enlightenment and enhanced use of technology, are expected to enhance CIT collection performance.

     

     

     

    The Federal Inland Revenue Service (FIRS) is placing lien on about 3,000 non-compliant tax payers’ bank accounts with turnover of N1 billion and above. This is to be drilled down to companies below the N1 billion turnover threshold.

    FIRS will also leverage e-solutions such as e-registration, e-filing, e-Tax payment, e-TCC, e-Receipt, e-Stamp duty and FIRS-GIFMIS integration. These initiatives are expected to significantly reduce the incidence of tax evasion thereby increasing the tax collectible. Overall, this is expected to result in a reduction in the adjustment factor for the CIT base and improvement in collection performance in the medium term.

    VAT collection projection is based on estimated total nominal consumption of vatable items and collection efficiency. Nominal consumption is projected at N122.75 trillion in 2020 from estimated N119.28 trillion in 2019. The VAT projections over the medium-term are based on a rate of 7.5per cent. This will be effected through the Finance Bill which will accompany the 2020 Budget Proposal.

    The document assured that “the proposed increase in VAT rate will not adversely affect the poor as the VAT Act already exempts goods that are consumed by the poor. The list can be expanded if there is need to do so. Efforts will be geared towards enhancing VAT collections by broadening VAT coverage and improving collection efficiency. This will be achieved through continuous nationwide VAT registration and monitoring, as well as the use of technology for auto-collect platforms in more sectors of the economy.”

    In addition, the solution to deduct and remit VAT and Withholding Tax (WHT) from State government contract payments is to be deployed to all the 36 states. VAT collection efficiency is expected to increase from the present average of 21per cent of the projected nominal consumption to at least 25per cent in 2020, 30per cent in 2021 and 35per cent in 2022. The FIRS will also tap into the Central Bank’s financial inclusion initiative for the informal sector by investing in infrastructure to bring them into the tax net.

      Independent revenue

     

    Government-Owned Enterprises (GOEs) are still bedeviled by revenue leakages and weak accountability. Hence, additional measures will be introduced to ensure that they operate in a more fiscally responsible manner. GOEs will be required to observe maximum cost-to-income ratios and substantially improve remittances in the medium term, under a new performance management framework.

     

    Macro-economic revenue projections

     

    From the share of the Federation Account and VAT as well as other revenues, the aggregate revenue available to fund the 2020 budget is projected at N7.17 trillion (2.4 per cent or N170.41 billion more than the 2019 Budget of N6.99 trillion). 34.2per cent of this is projected to come from oil sources while the balance is to be earned from non-oil sources. When the retained revenues of the ten major GOEs are considered the aggregate FGN revenue is projected at N7.72 trillion.

    In the medium term, government will continue to engage with stakeholders in the Niger Delta to ensure conducive environment for oil production, distribution and export. In addition, pipeline security will be further enhanced to attract new investments. Oil revenues will be used to further diversify the production and revenue base of the economy.

     Expenditure framework

    The expenditure budget is estimated at N9.12 trillion (this includes grants and donor funding of N36.39 billion). This is slightly higher than the 2019 of N8.92 trillion. Interest payments on debt is estimated at N2.45 trillion and while provision for Sinking Fund to retire maturing bonds to local contractors is N296 billion. The provisions for personnel cost and pension costs are estimated at N2.67 trillion and N536.72 billion respectively. In addition, N40.17 billion (representing one per cent of the consolidated revenue fund) has been earmarked for the Basic Health Care Provision Fund (BHCPF), N22.73 billion for GAVI/Routine Immunisation in the service-wide votes (SWV), and N89.44 billion for the power sector reform programme.

    With these provisions, only the sum of N1.01 trillion (exclusive of capital in statutory transfers) is available as amount for Ministries, Department and Agencies (MDAs) capital expenditure. With the inclusion of capital in statutory transfers, capital supplementation, and grant and donor funded projects, as well as Multi-lateral I Bi-Iateral project-tied loans of N328.13 billion, the capital expenditure amounts to N2.17 trillion.

     

    Aggregate expenditure

     

    With the inclusion of the planned expenditure of the top 10 GOEs of N553.14 billion, the proposed aggregate expenditure rises to an estimate of N10.00 trillion. With the inclusion of the GOEs capital estimated at N 188.23 billion, aggregate capital expenditure (inclusive of capital in statutory transfers) is estimated at N2.17 trillion. This represents 22per cent of the aggregate projected Federal Government expenditure in 2020, which falls short of the 30per cent target in the Economic Recovery and Growth Plan (ERGP). This is the consequence of the slower growth in revenues than the rate of growth in non-discretionary recurrent expenditures, specifically debt service and personnel costs.

     

    Fiscal Deficit and Deficit Financing

    Given the projected revenue and planned expenditure, the fiscal deficit is estimated at N1.95 trillion, about N33.61 billion (or 1.8per cent) more than the estimate of N1.92 trillion in 2019. This level of deficit is 1.37per cent of GDP – well below the threshold (three per cent of GDP) stipulated in the Fiscal Responsibility Act (FRA), 2007. In order to present a more comprehensive picture of the FGN’s fiscal operations, the revenues and expenditures of the top 10 GOEs as well as expenditures financed from project-tied loans will -be captured in the FGN’s budget. Accordingly, the aggregate fiscal deficit for 2020 will be N2.28 trillion, which is 1.59% of GDP. The deficit will largely be financed by new borrowings estimated at N1.70 trillion while about N252.08 billion will be derived from Privatization Proceeds, and N328.13 billion are loans secured for specific development projects.

    In 2020-2022, Government will continue its fiscal strategy of directing resources to most productive and growth-enhancing sectors including Security, Infrastructure (including Power and Transportation), Agriculture, Manufacturing, Housing and Construction, Education, Health and Water Resources. This is with the aim of reducing the current infrastructure gap, creating employment opportunities and enhancing growth performance. Government will also leverage private capital to supplement capital allocations from the Budget.

     

  • Ikeji Aro: Homecoming for Aros

    Its origin dates back to 912 AD in the ancient town of Arochukwu, the ancestral home of all Aros at home and the Diaspora.

    The month-long New Yam festival tagged Ikeji Aro came to its climax on the Eke Ekpe when different cultural troupes and masquerades from 19 villages that make up Arochukwu town performed and competed for prizes.

    Mazi Ogbonnaya Okoro, the Eze Aro of Arochukwu Kingdom, represented by the triumvirate of Okennachi, Eze Ibom isi and Eze Agwu,  the traditional rulers of the 19 villages, the President-General, Nzuko Arochukwu World-wide, Mazi George Okoronkwo Ezumah, and his executive members  and several prominent sons and daughters of the ancient kingdom, including other kith and kin from Arochukwu in the Diaspora were all in attendance.

    They led the entire community, guests and tourists in a procession into Amaikpe, the ancestral square where Aros gathered for major events to celebrate Eke Ekpe, the highest activity of the three-week long new yam festival.

    Ikeji festival is celebrated annually to mark the end of the year.

    It is observed in over 350 Arochukwu outpost communities, culminating in the grand finale at the ancestral home, Arochukwu, Abia State. The Aro monarch releases the calendar following the indigenous lunar calendar that coincides with the month of September, but at times spills over to October. This year’s festival started on September 4, and ended on September 26. Ekekpe is the climax of the festival featuring all the villages, Aro diaspora, Aro allies displaying masquerades and dances. It is a season dedicated to showcasing Aro’s rich cultural heritage, renewing of ancient covenant that unite Arochukwu kingdom and thanksgiving to God for a successful year.

    This year’s edition attracted Aro kith and kin from Umuakali-Naze, Owerri, Imo State who are residing overseas. For some of them, it was their first visit to Arochukwu, their ancestral home. The largest Aro outpost community, Arondizuogu also from Imo State stormed the occasion with three thriller masquerades which threw the entire venue into spontaneous ecstasy.

    An interesting aspect of this year’s edition was celebrated with some modern touch as the current leadership of Nzuko Arochukwu that came into office three years ago re-branded the Ikeji festival thus attracting corporate sponsorship by local and international brands such as MTN, Airtel, Nigerian Breweries, SHOBAZ as well as collaboration with the youth, budding entrepreneurs such as The Rare Gem, Emmy Entertainments & Events, among others.

    This fourth edition is building on the successes achieved in the last three years and will serve as a home-coming event for Umuaro in various places.

    The yearly cultural festival presented a unique opportunity to celebrate Arochukwu tradition and culture in its pure and original form. It is also a platform for infinite entertainment, commerce and tourism as it features huge home coming, rare masquerades, traditional dances and  cultural displays.

    Arochukwu indigenes who could not make it home, especially those overseas, watched the event online. It was beamed globally

    According to Chairman, Ikeji Organising Committee, Dr Azubike Okoro, this year’s event, aside from expanding the commercial frontiers which presented bigger opportunities for businesses, featured other innovations.

    “For example, given the significant role of youths as agents of development, we worked in concert with the umbrella body of Arochukwu youths/students (NASS), to ensure the attainment of the goals of active participation of their members by providing a platform to showcase their talents and creative energies aimed at the advancement and growth of the kingdom.

    Tagged Arochukwu Got Talent, it took place on Eke Ekpe evening, after the parade of colours in the afternoon,” Okoro  stated.

     

  • How snacks making changed my life

    Adeshina Temitope, a 300-level student of Home Economics Education of Adeniran Ogunsanya College of Education, Lagos State, is also into snacks business, DANIEL ESSIET reports

    Like many entrepreneurs, Adeshina Temitope knew she was cut out for business.

    Her words: “I thought of something to add to my income while teaching since I have the skills before gaining admission into higher institution. I found out that it is better for me to start something, that with time, hardwork and patience, it will grow bigger.”

    She started with snacks with a leap of faith. Raising capital, however, proved challenging. She was able to raise N8, 000.

    Since then, the business has grown with the net worth hitting N70,000.

    The business is helping her pay fees and earning a living.  She said: “I thank God because the business has been helping me, because I don’t worry about textbooks, practicals, school levies, though my parents support me.

    “I don’t really have  workers, but I have roommates that are very supportive; so, it makes the work easier.”

    For her, confidence and courage were keys to her survival.

    She aims to eliminate the dilemma between eating well and eating fast. All items are prepared  each morning.

    She is passionate about food and even more passionate about people. She doesn’t only make snacks and cakes more accessible, but also ensures that the ingredients are carefully sourced.

    She has been a major inspiration for youths. Her advice for young people struggling to figure out their life purpose: “It takes focus and intention to listen to your heart and figure out what makes you thrive. Once you’ve figured out that part, it’s simply having the courage to take. My advice to any young entrepreneur is to be determined; when you are determined your goals will be easier to accomplish as determination leads to success,’’ he said.

    The biggest challenge she faced was getting retail buyers to move beyond their initial disbelief that anything good could come from street food vendors.

    She has other challenges. “My failure has been on the quality of the snacks, at a point I decided to reduce the quality to gain more profits but customers noticed and complained. I learnt that you don’t compromise on the quality rather you improve on it that is, quality but not quantity.”

    The business has had pressure on her too. “What sacrifice have you had to make to be a successful entrepreneur?

    Am currently schooling, during the holiday that am supposed to go home, I always stay back to run my business because I believe my punctuality and consistence will help my business grow.”

    Her passion, network of people, professionalism and her ability to pivot were keys to her success.

    She has such amazing people to fall back on — family, friends, people in the industry. She asked tonnes of questions and loves learning from people.

    In 10 years, she sees her self having a big outlet with different sections such as   snacks, cake, cocktail and other things.

     

  • Transcorp retains positive rating

    Transcorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Nigeria Plc (Transcorp) and owner of the Transcorp Hilton, Abuja and Transcorp Hotels, Calabar, has retained its national scale ratings at A-(NG) and A2(NG) in the long-term and short-term, with the outlook accorded as stable.

    Concurrently, the national scale ratings accorded to the following Issuances affirmed Series 1 N10 billion Fixed Rate Bond: A-(NG), Stable Outlook; Series 2 N9.8 billion Fixed Rate Bond: A-(NG), Stable Outlook.

    According to GCR, the rating reflects Transcorp Hotels ability to maintain its market position as a leading brand in Nigeria’s hospitality industry, supported by the major renovation and facilities upgrade at Transcorp Hilton Abuja (‘THA’) and the subsequent improvement in pricing and occupancy rate. The available support to Transcorp Hotels as a member of Transnational Corporation of Nigeria Plc (“Transcorp”), and the partnership with Hilton Worldwide Limited (“Hilton”) is considered positive rating.

    In the report released in August, this year, it stated:  “Following the upgrade at THA and the accompanying repricing of the hotel facilities in fiscal year 2018, revenue improved across all service lines, with rooms and food and beverages rising 26 per cent and 28 per cent. Per management, the company is  exploring other opportunities and add-on services that could be offered to boost earnings going forward.’’

     

     

  • Why banks are helping startups

    First City Monument Bank (FCMB) is partnering incubators in search of startups across the country with innovative e-solutions to address challenges, DANIEL ESSIET reports

    Banks across Africa are investing in programmes to boost scalable companies that use technology to innovate in the production of consumer goods or provide corporate services in education, logistics, energy, fintech, agriculture or healthcare.

    They provide seed investment to early stage companies that improve and facilitate access of essential goods and services to the underserved, effectively promoting inclusive growth.

    First City Monument Bank (FCMB) Managing Director, Adam Nuru said the bank is determined to contribute to building an enabling ecosystem for innovative businesses.

    Speaking in Lagos during the demo  and pitch day of  the Agritech Incubation Programme  organised by FCMB, conjunction with Wennovation Hub, Nuru said start-ups are important drivers of innovation. To scale and spread new technologies and services, they need an integrated ecosystem that provides access to markets and finance.

    According to him, agriculture is one of the biggest industries that needs the most optimisation at every level to reduce negative impacts.

    Nuru said the bank is ready to contribute assets and expert networks to help some of early-stage innovators get to the next level.

    He said challenges in the space were many, but that it was heartening to see the passion and ability of the young startups who are working towards accomplishing their goals.

    Crop IT Managing Partner Femi Afolabi said the emergence of startups using  emerging deep technologies, such as artificial intelligence, will have the greatest potential to drive and profit in agribusiness.

    He said the economy needs startups that could influence system-level change, such as improving food supply chain and solutions supporting profitable agriculture.

    The initiative, grounded in the agricultural firm’s innovation partnership approach, would support the expansion of high-impact and digitally-enabled services to farmers and extension officers across Nigeria over the next three years.

    He said Crop IT’s mission is to employ technical know-how to increase smallholder income and productivity by 50 percent reaching at least 40 percent women across Nigeria.

    The Chairman, Farmcrowdy, Onyeka Akumah,  said agriculture is witnessing a transition to tech-driven growth across the value-chain, such as supply chain management, e-commerce-based B2B and B2C models, processing technologies and equipment, storage and logistics, food safety, packaging, and distribution and retail.

    According to collaborations, linkages and partnerships, among key stakeholders, would help develop scalable future-ready solutions, he said.

    He said agri-tech is thriving and future innovations are likely to  address the issues that the farming industry faces.

    The Divisional Head Agribusiness of FCMB, Mr. Kudzai Gumunyu, said startups can transform the agri economy by linking farmers to the markets, adding value to the agri produce, reducing wastages and developing efficient supply chains.

    According to him, startups were  playing a pivotal role in accomplishing this transformation in the sector.  He added that innovative technologies and business models were being tested for aggregation, logistics, processing, new products development and market linkages.

    He said the bank is focused on supporting start-ups to connect with the farming community and boost innovation, make a real positive impact, driving productivity and improving profitability.

    The Chief Executive, Crop2Cash Limited, Mr. Michael Ogundare, said his organisation is working to use technology to enable banks lend to farmers using verifiable data approach.

    Wennovation hub partnered FCMB to fund two agri-tech startups that emerged winners to realise their dreams of business expansion. This happened during the agri-tech incubation programme/demo day, which called for startups with ideas in agri-finance/insurance, procurement and supply chain management, and other agric-ICT areas. It was a culmination of over seven weeks of  hard work, collaboration, expertise, and passion.

    Ten selected startups out of 320 applications from across the country, made the finale.

    They, firms that battled for the grand prize of N1.25million, include Agrieasy, Farm Chain, Mr Farm, CsComtron, Farm Aid, Agro Barn, Osfield Hire, Agroco, Farm Bank and Ozidi.

    At the end, Agro Barn, led by Oscar Obiora Udebuana, won.

    Agro Barn is an agritech company that turns information into insights for rural farmers.

    Udebuana said the firm will ensure food sustainability.

    Last year, Crop2cash won the grand prize.

    The FCMB-Wennovation Hub AgriTech incubation programme seeks to guide early stage entrepreneurs.

     

  • China’s leap from the pit in 70 years

    Nigeria and China coincidentally have the same National Day – October 1

    When China’s Communist Party struggles with the ruling Kuomingtan Party ended in 1949, a new People’s Republic of China was adopted on October 1 of the year.  Today, China People’s Republic  is 70. There have been 70 years of moving from the valley to the spur through thorns and spikes.

    Evaluating China’s history through education is as interesting as its general odyssey.

    As Nigeria celebrates 59 with its own peculiar education development history, China seems to have gone through a more tasking but fruitful education development that had few years of interruption when, between 1966 and 1970, the university system seemed abrogated during the Cultural Revolution and rejuvenated in 1970 with full revival in 1977 after Deng Xiaoping  came to power. The entrance examinations for higher school admissions for three straight years had a backlog of over 18 million people whose education had been interrupted or denied. That gave back hope of higher education to over 848,000 new scholars who returned the country to university education.

    In the past 40 years China has had a very rapid and consistent educational development as fast as the unprecedented pace of its economy.

    From 227 higher institutions in 1949 to a rapid growth to 841 in 1958 and to 1,289 in 1960 and an eventual crash to 407 in 1965 and to zero between 1966 and 1970 when the Cultural Revolution forced a closure of all – that was the odd history before it re-incepted.

    As the new era for reforms came, school enrolment also increased. For instance, middle school graduates that went to high school increased from 40.6% in 1990 to 90% in 2011. China’s school age population today is 28% of the population or 392m, a growth of 20% from 1.4% in 1978 when reforms started. The percentage of primary school graduates that enrolled in secondary likewise, rose from 32% in 1962 to 86% in 1978 and 98.3% in 2011.

    Most of the upping in education rate started in 1986 when the government passed the free basic education law that guarantees free first nine years of education to every Chinese child and that covers primary and junior secondary education. This is ingeniously graded according to regional education development. In the minority ethnic groups such the Ningxia Hui Autonomous Region, the free education duration is 12 years covering the entire primary and secondary education. Still in more backward regions like the Tibet and some other minority groups within it, the free basic education stretches to 15 years. The policies that have been implemented with precision have worked the wonders of awesome lift in mass and quality education.

    The 1986 compulsory education law has created the possibility of above 99 percent of the school-age children receiving universal nine-year basic education, according to the Ministry of Education sources.

    In June, 10.31 million students took the National Higher Education Entrance Examination (Gao Kao), as investment in education accounts for about 4% of total GDP.

    China today operates the world’s largest education system and this is exemplified in the data: “In April 2019, the Ministry of Education announced that 492,185 international students in 1,004 schools were studying in China in 2018. That has been a significant steady increase over the years.

    China has increased the proportion of its college-age population in higher education to over 20 percent now from 1.4 percent in 1978. This in raw figure translates to 28% or 392m students’ population from what it was in 1978.

    According to the statistics of 2017, the net enrolment rate of primary school age children was above 99%. In the same year, there were altogether 176,718 primary schools with an enrolment of 101.6m students and there were total of 77,018 secondary education schools with an enrolment of 84.25m students.

    In the same period “there were 2,631 Higher Education Institutions (HEIs), among which 1,243 were universities, 265 were independent colleges and 1,388 were higher vocational colleges. There were also 282 higher education institutions for adults. In 2017, the total enrolment of undergraduates in the regular HEIs was 27,535,869; 2,639,561 postgraduate students and 5,441,429 students in adult higher education institutions,” according to chinaeducationcenter.com

    In 1993, as market reforms deepened, the government issued a Program for Education Reform that allowed the establishment of private universities.

    Under this policy, some new colleges were founded by non-government entities, which symbolized a major change in the Chinese higher education structure. College enrolment experienced an unprecedented growth. According to 2007 Ministry of Education statistics, “in 1990, less than 4% of the 18-22 age group was enrolled as students in higher education institutions compared to 22% in 2005.”

    Likewise, on 29 August, 1998, the Higher Education Law was passed and implemented from January, 1999, the first of its kind in China’s education history.

    By the end of 1998, 84 national training bases of talents from basic disciplines of science, 51 for basic disciplines of arts, 45 for engineering disciplines and 13 for economics had been set up. The bases attracted lots of outstanding high school graduates, thus the quality of students was improved obviously and the initiative of the teachers increased unprecedented, as chinaeducationcenter.com reported.

    “In recent years, taking full advantage of their talents, knowledge, science and technology, the HEIs emphasized the practical research and development in the light of economic construction and made great effort to serve the central task of economic construction while at the same time strengthening basic research. The HEIs have taken part in the construction of science parks, establishing high-tech enterprises run with industries, teaching and research together to turn the scientific and research fruits into real productivity for the society.

    For example, with its own advantage of talents and technology, the Fourder Group run by Peking University not only revolutionized the printing industry, but also occupied 90% of Chinese newspapers’ market. The Group has thus integrated industry, teaching and research into reality,” said chinaeducationcenter.com

    Within the past 20 years, China forged educational cooperation and exchanges with 154 countries, sent 300,000 students to over 100 countries to study. Her 1,800 teachers and experts taught abroad just as it employed 40,000 foreign teachers and experts. Three years after in April 2019, “the Ministry of Education announced that a total of 492,185 international students were studying in China in 2018, enrolled in over 1,004 higher institutions and on a steady increase.”

    These countries include her counterpart African states on the platform of the Forum on China Africa Cooperation (FOCAC) under which in 2015 at the Johannesburg Summit, President Xi Jinping promised China would train up to a 10,000 Africans within three years. These trainings come as short courses for experts and as degree courses for students at the undergraduate and post graduate levels, including courses on Chinese culture and language. After 58 Nigerians left on scholarship in August 2019, the number of Nigerians studying in China on government bills was about 6,200.

    On March 31, 2016, a short documentary on the educational system in China aired on CCTV News channel on the inroad of international schools in the country, especially Shanghai. The narrator said that while the schools come with international or foreign curriculum, the China education system insists they must include the basic subjects every child must learn in Chinese schools and they are the history of China and its geography. So, while China meets and blends with the world, it has never destroyed its core identity, which is the best for self-preservation.

    The practical reforms have paid off with three top Chinese universities – Tsinghua, Peking and Zhejiang rated among world top 70. And Tsinghua is today known as the Stanford University in Asia because of its penchant in producing the best ICT experts that drive the Chinese tech reforms.

    China has increased the proportion of its college-age population in higher education while at the same time improving the quality of education through a major effort at school curriculum reform. It has also sustained a consistent teacher development system as teaching has historically been and remains a highly respected profession.

     

    • Emewu, journalist, wrote from the Afri-China Media Centre, Lagos.

  • Amazons making a living from shoemaking

    Inspired by her love for shoes, some women are building successful shoe businesses, thereby creating employment opportunities for other youths, Daniel ESSIET reports

    Temilade Adegbite makes shoes. She founded Right Legs out of passion.

    She wears big sizes, thus getting her designs and size was difficult. She was not alone. She thought it would be better to create designs that those in her shoes could benefit from.

    Her goal was to cater for those customers in need of big size footwear and support kids who want to wear good sandals or shoes to  school.

    Right Legs produces quality, classy and bespoke footwear that incorporates Africa themed designs which appeal to the international marketplace.

    Nkiru Emodi is another lady making waves in the shoe making industry. The Chief Executive of HOT Wears discovered her talent when she could not get a job after school.

    A 2010 graduate of Accounting of the University of Benin, Edo State, could not get a job.

    Following her love for quality shoes, she decided to turn her passion into business to make money. All she did was to develop her talent with a different approach and concept.

    She sees it as a talent. At first it was difficult.Today, the business has blossomed. She is producing good shoes and sandals. Now, people see her as a role model. She marries the craftsmanship of custom repair with good customer service.

  • NATA gets Life Grand Patron

    Nigeria Automobile Technicians Association (NATA) Ejigbo Branch has appointed the Chairman of Ejigbo Local Council Development Area of Lagos State, Monsurudeen Bello as the Life Grand Patron.

    The appointment, NATA said, is in recognition of Bello’s selfless service to the people of Ejigbo, and his contributions towards the progress of the association.

    Bello, popularly called OBE, was honoured during the inauguration of the executive of the association.

    A plaque was presented to him by NATA’s state Deputy Chairman Olusegun Aikhomo Mayegun.

    Mayegun said the honour was also an appreciation of the council boss for bringing an end to the misunderstanding between members of the association.

    OBE, who was represented by the Vice Chairman, who doubles as Supervisor for Health, Dr Olatunde Olusunmade, thanked the association for honouring him.

    Olusunmade said the administration’s giant strides can be felt in areas of infrastructural development.

    “At the moment, Kashimawo Alimi Street beside NNPC bus stop is being rehabilitated. The project would be completed before the end of the year. This would reduce traffic gridlock at Jakande Gate. Dauda Ilo Road in Ejigbo and Junction Road in Oke-Afa are also under rehabilitation, while Adebayo Oyelana has been rehabilitated and in good condition,” he said.

    Olusunmade urged NATA members and residents of the council to support OBE for another term.

     

  • Non-violence Day: Eliminating country-wide conflicts

    As Nigeria joins the rest of the world today to observe this year’s International Non-violence Day, CHINAKA OKORO writes that the government should step up its efforts to ensure that Nigerians are saved from the convoluting violence that have continued to give them psychological, social, economic and political trauma.

    When the United Nations General Assembly voted to establish October 2 to be observed as the International Day of Non-Violence on June 15, 2007, one would think it had Nigeria in mind.   The resolution by the General Assembly urged all member states to commemorate the day in “an appropriate manner and disseminate the message of non-violence, including through education and public awareness.”

    Attaining political independence from Britain in 1960, Nigeria cut the picture of a country ready to lead the African continent in terms of political, social and economic fortune. Peace, unity equity and security are also not unimpeded in Nigeria’s prospect of greatness.

    But few years into nationhood, the country began a dangerous slip to infamy.

    Serious violence erupted in most parts of the country which nearly swept it under, as it resulted in a civil war.

    With the war over in 1970 after 36-month hostilities, Nigerians were hopeful that absolute peace and unity that will lead to equity and justice have come to reign. But that was not to be.

    Unbridled violence and vices became the order of the day. Robbery seemingly became an alternative source of livelihood. Kingpins such as the famous Anini and Oyenusi were terrors to behold. As if that was not enough, other kinds of depravities manifested.

    Any commentary on violence in Nigeria that doesn’t take into cognisance political aspect of the issue is surely ineffective.

    The pages of Nigeria’s political history are fraught with crises. From the First Republic, the issue of violence is overwrought. For instance, the 1983 general elections in Nigeria was one of the worst in terms of wide spread violence. Lives and properties were lost.

    Till date, violence has been a major characteristic of our elections. Again, there are some offshoots of political violence which have kept the entire country down.

    Currently, the country is overwhelmed by the activities of the Boko Haram insurgents, which security expert say could run the nation under if urgent measures are not taken. The insurgents have been a great source of violence against Nigerians. The group has in its custody many Nigerians who they abducted from their (Nigerians) homes, even as they set their ancestral home environments ablaze.

    Another form of violence that Nigerians are experiencing is that of kidnapping. Many Nigerians- wealthy or related to a wealthy people- have been kidnapped and their families or relations have parted with large sums of money before the kidnapped regained their freedoms.

    This has inflicted dangerous violence on Nigerians.

    Robbery is another form of violence which Nigerians have to contend with. People are in perpetual fear of losing their lives and belongings to men of the underworld.

    As if those forms of violence are not enough, Nigerians are now witnessing banditry in almost every state so much so that governments have begun to play the role of the defeated by negotiating for the release of those indigenous to the states in question.

    What of the herders’/farmers’ clashes in almost all the states? This recent form of violence has affected not only the well-being of the communities affected, but has also affected food production as farmers could no longer go to their farms for fear of being killed by the herders.

    Experts maintain that limiting violence to those experienced physically would lead to the appreciation of the danger associated with violence.

    They are of the view that there other forms of violence that what we experienced physically. Others may include psychological, social, economic, cultural and work place violence. The effects of these forms of violence, it is said, are more dangerous than the physical forms.

    A leading scholar on non-violent resistance Professor Gene Sharp uses the following definition in his publication The Politics of Nonviolent Action:

    “Nonviolent action is a technique by which people who reject passivity and submission, and who see struggle as essential, can wage their conflict without violence. Nonviolent action is not an attempt to avoid or ignore conflict. It is one response to the problem of how to act effectively in politics, especially how to wield powers effectively.”

    There are three main categories of non-violence action, namely protest and persuasion, including marches and vigils; non-co-operation; and non-violent intervention, such as blockades and occupations.

    A survey carried out concerning Nigeria situation as it concerned violence and its aftermath by the United Nations Special Rapporteur Agnes Callamard painted a very gloomy situation.

    She said after presenting a preliminary statement at the end of her 12-day mission:

    “The overall situation that I encountered in Nigeria gives rise to extreme concern, with issues such as poverty and climate change adding to the crisis.  She pointed out that if ignored, the ripple effects of unaccountability on such a large scale had the potential to destabilise the sub-region if not the whole continent.

    “Nigeria is confronting nation-wide, regional and global pressures, such as population explosion, an increased number of people living in absolute poverty, climate change and desertification, and increasing proliferation of weapons”, she elaborated. “These are re-enforcing localised systems and country-wide patterns of violence, many of which are seemingly spinning out of control”.

    Ms. Callamard highlighted many areas of concern, including armed conflict against the Boko Haram terrorist group in the Northeast; insecurity and violence in the Northwest; the conflict in the central area known as the Middle Belt and parts of the Northwest and South, between nomadic herdsmen and indigenous farming communities.

    In the circumstances, the UN Secretary-General, António Guterres, in his message on this year’s International Day of Non-Violence, Mr. Guterres called on the world to follow the “enduring vision and wisdom of Mahatma Gandhi whose birthday the day is commemorating.

    “As Secretary-General of the United Nations, I can only hope that all those that have political responsibility in the world are able to be worthy of Mahatma Gandhi and to understand that they should reach their objectives through dialogue, through non-violence, through a strong commitment to truth and too the well-being of their peoples.”

    Continuing, he said: “At a time of protracted conflicts and complex challenges, Gandhi’s philosophy of non-violence remains an inspiration. At the United Nations, a world free of violence – and the resolution of differences through non-violent means – is at the core of our work.

    “At a time of protracted conflicts and complex challenges, Gandhi’s philosophy of non-violence remains an inspiration. At the United Nations, a world free of violence — and the resolution of differences through non-violent means — is at the core of our work.

    At a time when inequality is on the rise and a fair globalisation is an imperative, we also recall Gandhi’s commitment to social justice.

    And in a period when the world is striving to achieve the Sustainable Development Goals, ensure gender equality and leave no one behind, Gandhi’s commitment to human dignity can light our path.

    Gandhi once said: “Non-violence is the greatest force at the disposal of mankind.” The Charter of the United Nations echoes that spirit, with its call in Chapter VI for the use, “first of all”, of negotiation, mediation, arbitration, judicial settlement and other peaceful ways to address threats to peace.

    The principle of non-violence—also known as non-violent resistance—rejects the use of physical violence in order to achieve social or political change. Often described as “the politics of ordinary people”, this form of social struggle has been adopted by mass populations all over the world in campaigns for social justice.

    As Nigeria joins the world today to observe this all-important day, it is hoped that the government should step up its efforts to ensure that Nigerians are saved from the unbridled levels and forms of violence that have continued to give them psychological, social, economic and political trauma and cultural dislocation.