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Tag: Non-oil sector

  • Non-oil sector boosts GDP by 1.93%

    The Bank of Industry (BoI) yesterday said the non-oil sector was primarily responsible for the annual Gross Domestic Product (GDP) growth rate of 1.93 per cent last year compared to 0.82 per cent achieved the previous year.

    The bank said the non-oil sector improved by two per cent, while the oil sector growth reduced to 1.14 per cent when compared to 2017 growth rates of 0.47 per cent and 4.69 per cent respectively.

    The Board Chairman, Aliyu Abdulrahman Dikko who spoke during the bank’s 59th Annual General Meeting (AGM) in Abuja, said the annual contribution of the manufacturing sector to real GDP last year improved slightly from 9.18 per cent in 2017 to 9.2 per cent as  the industry players still grapple with key issues.

    These issues include high interest rate on finance, inadequate infrastructure and persisting insecurity concerns.

    He added that the Presidential Enabling Business Environment Council (PEBEC) kicked off its Third National Action Plan geared towards minimising difficulties faced by Micro Small and Medium Enterprises (MSMEs) when accessing credit, paying taxes or moving goods across the country.

    “Additionally, the Corporate Affairs Commission (CAC) in collaboration with PEBEC, approved a special window of 90 days, which was extended to 180 days, to register businesses at a discounted fee of N5,000  as part of its business incentives strategy.

    “The Central Bank of Nigeria (CBN) continued to maintain its Monetary Policy Rate at 14 per cent in a bid to moderate inflationary pressures and to stabilise the microeconomic environment. The benchmark rate was last changed in July 2016, when it was hiked by 200 basis points.

    “The apex bank also maintained its strategy to enhance foreign exchange liquidity towards safeguarding the stability of the naira. In May 2018, it also reviewed its foreign exchange policy by ensuring same day over the counter, OTC access to foreign exchange by travelers,” the chairman said.

    He said last year, the group’s total asset grew by 49 per cent to N1.07trillion from N713.3billion in 2017, adding that  improvement was achieved in the group’s total equity which increased by 12.5 per cent year-on-year to N258.3billion from N241billion in the prior year.

    Profit before tax of the group for the year was N36.7billion. 39 per cent higher than N26.4billion which was achieved in the previous years. BoI also improved on its developmental impact by achieving 130 per cent growth on a year on year basis with respect to disbursement of new loans to N259.6billion last year while N112.5billion was disbursed the year before, stressing that N339.9 billion was disbursed specifically to MSMEs, while the rest was deployed to support large enterprises.

  • Non-oil sector grows Q3 GDP by 1.81%

    The non-oil sector of the economy continued its growth pattern in the third quarter (Q3) of this year, moving from 2.05 per cent recorded in Q2 to 2.32 per cent.

    According to the Q3 gross domestic product (GDP) report released by the National Bureau of Statistics (NBS), theGDP moved to 1.81 per cent from 1.50 per cent in the second quarter.

    The report read: “The nation’s Gross Domestic Product (GDP) grew by 1.81 per cent (year-on-year) in real terms in the third quarter of 2018. Compared to the third quarter of 2017 which recorded a growth of 1.17 per cent, there is an increase of 0.64 per cent points.

    “The second quarter of 2018 had a growth rate of 1.50 per cent showing a rise of 0.31 per cent points. Quarter on quarter, real GDP growth was 9.05 per cent.

    “In the quarter under review, aggregate GDP stood at N33,368,049.14 million in nominal terms. This performance is higher when compared to the third quarter of 2017 which recorded a GDP aggregate of N29,377,674.03 million thus, presenting a positive year on year nominal growth rate of 13.58 per cent.

    “This growth rate is higher relative to growth recorded in the third quarter of 2017 by 2.88 per cent points and higher than the proceeding quarter by 0.01 per cent points with growth rates of 10.70 per cent and 13.57 per cent respectively.”

    Commenting on the figures, FXTM research analyst, Lukman Otunuga, said the growth recorded in the non-oil sector is an indication that the country was on course in its quest to break away from oil reliance.

    He said: “With the non-oil sector growing by 2.32 per cent in real terms during Q3, Nigeria continues to showcase to the global arena that it remains on a quest to break away from oil reliance.

    “With economic growth expected to gain momentum next year on the back of increasing government spending ahead of the presidential elections, Nigeria’s outlook remains encouraging. OPEC’s (Organisation of Petroleum Exporting Countries) deal to cut oil production by 1.2 million barrels a day is seen offering near-term support to oil – a scenario that will most likely support Nigeria’s government revenues and the naira exchange.”

    In October, the World Bank reduced its growth projection for Nigeria to 1.9 per cent from 2.1 per cent saying that the clash between farmers and herdsmen will affect economic recovery.

     

    “In Nigeria, declining oil production and contraction in the agriculture sector partially offset a rebound in the services sector and dampened non-oil growth, all of which affected economic recovery,” the Bretton Wood institution said.

  • NEPC, Chamber woo American investors to non-oil sector

    THE Nigeria Export Promotion Council (NEPC) has initiated a partnership with the Nigeria-American Chamber of Commerce (NACC) to generate American investment in the non-oil sector.

    Speaking at a meeting with NACC management in Lagos, NEPC Chief Executive Officer, Mr. Segun Awolowo said the initiative was designed to leverage Nigeria’s Diaspora market to broaden export windows for local industries.

    He said the collaboration would facilitate engagement opportunities between American and Nigerian industries under the African Growth Opportunity Act (AGOA), thereby encouraging expansion of production capacities, especially in the agriculture and textile industries.

    Awolowo said: “It is for us to leverage on NACC on how to increase trade in the U.S. and we are looking at the AGOA African Growth Opportunity Act which Nigeria has not been very high on. We want the chamber to help us facilitate more business to business meetings particularly from American companies and get them to invest in Nigerian industries so that we can increase production of our goods for export.

    “We are also looking at working with them on our programme called the Nigeria Diasporas Export Programme which leverages Nigerians in the Diaspora. We have used the Diasporas mainly as a point of remittance but we have to look at them as an economy in every nation in which they reside because they eat and buy clothes. So why can’t it be Nigerian ones, so there is a lot to do with the chamber increasing non-oil trade.

    “Our mission is to make sure that AGOA is private sector driven and work very closely with government to make sure that the AGOA strategy is signed and then we can activate and get clusters of exporters to harness then and earn foreign exchange for the country.”

  • Non-oil sector hits 90.3% in Q1 1.9% GDP growth

    OIL’S contribution to Nigeria’s Gross Domestic Product (GDP) remains below 10 per cent in Q1 figures released yesterday by the National Bureau of Statistics(NBS) in Abuja.

    According to the NBS, the nation’s GDP grew by 1.95 per cent year-on-year- in real terms in the first quarter of 2018.

    Although the nation recorded some growth in the oil sector during the period, the contribution formed only 9.61 per cent of the total, with the non- oil sector accounting for the rest.

    This is despite an increase in the daily oil production to an average of 2.0 million barrels per day (mbpd), higher than the 1.95 mbpd in the fourth quarter of 2017.

    The report stated that real growth of the oil sector was 14.77 per cent (year-on-year) in first quarter of 2018. This represents an increase of 30.37 per cent points relative to the rate recorded in the corresponding quarter of 2017. Quarter-on-Quarter, the oil sector grew by 13.24 per cent in first quarter, 2018, the NBS said.

    This is up from 8.53 per cent in the first quarter and 7.35 per cent in the fourth quarter of  2017.

    In comparison, non-oil sector grew by 0.76 per cent in real terms.

    This is higher by 0.04 per cent point compared to the rate recorded same quarter of 2017 and 0.70 per cent point lower than the fourth quarter of 2017.

    The sector’s growth  was driven mainly by agriculture (crop production),  financial institutions and insurance, manufacturing, transportation and storage as well as information and communication.

    In real terms, the non-oil sector contributed 90.39 per cent to the GDP, lower than 91.47 per cent recorded in the first quarter of 2017 and 92.65 per cent recorded in the fourth quarter of 2017.

    Overall, GDP grew by 1.95% (year-on-year) in real terms in the first quarter of 2018.

    The bureau stated that the figure shows a stronger growth, compared with the first quarter of 2017, which recorded a growth of –0.91 per cent, indicating an increase of 2.87 per cent points.

    Compared to the preceding quarter, there was a decline of -0.16% points from 2.11%, NBS said.

    Quarter on quarter, real GDP growth was -13.40% as  oil production estimates for the third and fourth quarters of 2017 have been revised and oil GDP for those quarters have been adjusted.

    According to NBS figures, aggregate GDP for the first quarter stood at N28.4 trillion in nominal terms.

    ”This performance is higher when compared to the first quarter of 2017 which recorded a nominal GDP aggregate of N26.028 trillion, thus -presenting a positive year- on-year nominal growth rate of 9.36%. This rate of growth is however lower relative to growth recorded in Q1 2017 by -7.70% points at 17.06% but higher than the proceeding quarter by 2.14% points at 7.22%.

  • ‘Non-oil sector can’t take Nigeria far for now’

    ‘Non-oil sector can’t take Nigeria far for now’

    To many watchers of the economy, the non-oil sector should be the next money spinner, following the oil price slump. But, Nigeria Employers Consultative Association (NECA) Director-General Mr. Segun Oshinowo cautions that revenue from the sector cannot be used for importation, but only to fix infrastructure. He tells TOBA AGBOOLA that Nigerians should brace for hard times because of the economic downturn.

    We are already moving towards the third quarter, what  are your expectations in the economy?

    The reality is that things are really tough out there and it may not get better unless there is a miracle. Our economy is in shambles and that is the truth about it. The biggest threat to our economy is the issue of generating enough revenue. This is because our economy is highly dependent on crude oil; we can only hope that price of crude oil will experience a miracle of an upward surge. Anything short of that is going to be tough for the country because everything shall point to our foreign reserves.

    I do have some measure of sympathy for the government of the day. It inherited an economy that has gone into depression, and more unfortunately at a time when the price of crude oil has been declining. The decline in our foreign exchange reserve, which has necessitated quite a number of administrative measures by the Central Bank of Nigeria (CBN), has been sending businesses and enterprises to their early graves. The unfortunate thing is that the full impact of that is not known to the public yet, but the truth is that quite a number of businesses are beginning to close shops or scaling down their operations. What that means in effect is that more Nigerians will fall below the poverty line because when a company closes shop or scales down operation, while its assets like machineries might still be there, it cannot keep the human assets.

    Now that the budget has been signed, how realistic do you think the goals of the budget are?

    The budget is anchored on the fact that from January to December, crude oil will sell as $38 per barrel. That is the assumption. To the best of our knowledge, crude oil did not sell for that price in January, neither in February, though the price has increased slightly in recent times. What it means is that government revenue projection is going to be affected. So, the only thing for us is to hope for a miracle for the better part of the year. Now, there is another assumption which will affect the revenue generation of the government. The assumption is that government will be able to sell 2.2 million barrels per day. We know that there has been some challenges in the Niger Delta and the question again is that will that not affect our ability to produce 2.2 million barrels per day. Now, if that will be a threat, then you have double jeopardy  that will undermine your ability to attain your revenue target. Again, when you look at other assumption that is attached to the budget, which says it will be able to keep inflation under 10 per cent. That looks very faulty. Forget the fact that government said it will not thinker with the exchange rate of the naira to the dollar. The  truth about it is that most of those going to import are not going to get the exchange rate from the official channels. They are going to get from other sources which are going to be higher than the official rate. There is going to be inflation much higher than what government projected. To me, some of these assumptions may not work since two of the assumptions actually depend on the critical aspect of the budget, which is revenue. The truth is that we will have a deficit that is much higher than what we have in the budget.

    On the other side, when you look at the expenditure profile of government, the government has informed Nigerians that its priority this year will be to tackle unemployment, insecurity and improve infrastructure. Now, let us look at the infrastructure which include road networking and power. Government said in one year, it will improve on these and that accounts for why about N1.3 trillion was set aside for it in the budget. But the truth is that there is higher infrastructural deficit in this economy and the provision in the budget is just 30 per cent of the total expenditure. We don’t think that government will be able to effectively address this. With just 30 per cent to address infrastructure, it won’t take us any where, but it is a step in the right direction.

    How do you expect government to address this?

    We believe government should structure and rationalise its system in such a way that there will be significant reduction from the oil expenditure which then will be channeled to improve capital expenditure.

    Government says it is now focusing more on the non-oil sector. Do you think that is the answer?

    Yes, it is but this is coming too late. This is something the previous governments should have started long ago. Given our current situation, non-oil sector will not take us far. Agreed that the non-oil sector will generate revenue to address the recurrent expenditure,  we are not going to use naira revenue to import. Even, our non oil products will not start producing overnight. Our only saving grace is to hope for upward turn of the crude oil price.

    Government seems to have embarked on aggressive revenue generation. What is your take on this?

    As I have said, you will not use your naira to import. You don’t spend naira abroad.  So, aggressive action, either through Treasury Single Account (TSA) or any other means, to generate more naira is not really helpful. But as I said, it will solve for instance salary payment to some extent. But when it comes to capital expenditure which is very significant, you cannot use naira to finance it.

    There is panic in the job sector. More employers said they will disengage more workers. What is NECA’s position on this?

    If the revenue of an organisation is affected and you don’t want to incur salary arrears, the best option is to disengage. For instance, I disagree with the position of the Labour and Productivity Minister, Dr Chris Ngige, on his directive to private sector employers, especially the banks, oil and gas companies, not to sack their workers. Even in the face of dwindling oil prices in the international market and massive loss of profits by the companies, how do you expect them to cope? The reality is that retrenchment is not a palatable option for any business. No employer will take pleasure in declaring redundancy, employees that it has invested in developing over the years. An employers’ expectation from the Minister of Labour and Productivity is that he will work hand-in-hand with other government ministries in the creation of the desired enabling environment that will ensure business sustainability, competitiveness and job creation.

    Given current precarious situation, what is the policy option for the government?

    We are looking for policy options that will ensure unfettered access to foreign exchange by the private sector, not policies that will further constrain the narrow fiscal space. After assessing government’s current policy options, one can conclude that we are not on the right track. Given the situation of things, we can’t expect tangible and meaningful outcomes now, but we should be able to have hope in terms of policy options such that if there is no respite in the short-term, we can hope for respite in the medium and / or long-term. We want policy options that will show clearly that in the next two years, we will start seeing improvement in our infrastructure, in our road and rail networks. We are looking for policy options that will be consistent and ensure that government means business in terms of diversification of this economy away from outright dependence on revenue from the sale of crude oil. It should be noted that in a crisis situation such as our economy is in presently, there are two broad types of policies that must be embraced. These are policies that must be embraced and allowed to stand the test of time. An example of that is the case of importation of rice into a country that has all that is required to plant rice. Must we continue to use our hard earned foreign exchange which is diminishing to import the product which we can produce locally?

    The issue of fuel subsidy presents another good case of policy option. Do we have the fiscal space to continue to sustain that policy? The answer is No! While we might not be able to build up the domestic capacity to be self-sustaining as far as petroleum products are concerned, we should be able to block the leakages and make Nigerians pay the economic price for petrol. That decision has been taken and we hope that such policy decision will be allowed to remain. But there are other policies which we need to examine almost on a weekly basis to determine if these policies are giving the desired results, especially where the outcomes are more in the short term than in the long term. If in the short term they are not giving the result expected, then they can be tinkered with. I think that informed the decision of CBN on the reversal of domiciliary account. In that context, I won’t see it as policy sommesault, it is simply wisdom. I think what the CBN did was to tweak the policy to ensure that it gets the maximum results from there and I don’t think there is anything wrong in that.

  • CBN: prospects of non-oil sector high

    CBN: prospects of non-oil sector high

    The opportunities present in agricultural, solid minerals and the creative industry sectors of the economy have made the prospects of non-oil economy great, Central Bank of Nigeria (CBN) Governor, Godwin Emefiele has said.

    Speaking yesterday at the maiden edition of the New Telegraph Economic Summit on the theme: ‘Returning Nigeria to the Boom Days: Prospect of a Non-Oil Economy’, he said the country is endowed with abundant arable land capable of supporting all-year-round production of a wide variety of both cash and food crops, livestock and forestry.

    He said: “By its geographical location along the coast of the Atlantic Ocean, and myriads of water-ways, it has huge potentials for fish production to meet domestic need and surplus for exports in a global fish market valued at $144.0 billion in 2014. In the solid minerals sub-sector, there are at least 44 known mineral assets notably gold, iron ore, bauxite, bitumen, lead, zinc, tin and coal, which have been identified for commercial exploration. Solid minerals contributed an estimated N400 billion to the economy in 2015.”

    He said Nigeria’s creative industry driven by Nollywood, produces about 50 movies per week, second only to India’s Bollywood and ahead of Hollywood, and currently provides employment for over one million people.

    This makes it Nigeria’s largest employer after agriculture. In 2013, the creative industry contributed 1.4 per cent to Gross Domestic Product and was rated the third most valuable film industry in the world, generating revenue of N1.72 trillion.

    Emefiele said the task of returning the non-oil economy to its glory days is possible but would require the creative energies of all stakeholders, government at all levels, the private sector, the press and indeed, the citizenry.

    Minister of Solid Minerals Development, Kayode Fayemi said Nigeria has remained a mono product economy, with crude oil contributing 80 per cent to foreign exchange earnings. He said now is the right time to diversify the country’s economy base, adding that mining and agriculture are expected to drive solid minerals sector.

    Fayemi said there is no law stopping state governments from being involved in the inning sector. “The state governments can develop Special Purpose Vehicles to drive the mining sector. Nigeria still remains a Greenfield in mining.

  • NEPC eyes $100b from non-oil sector

    NEPC eyes $100b from non-oil sector

    The Nigerian Export Promotion Council (NEPC) yesterday said it is targeting $100 billion foreign exchange (forex) earnings from the non-oil sector of the economy in 12 years.

    Its Executive Director/CEO, Olusegun Awolowo who spoke at international trade seminar organised by Zenith Bank in Lagos, with Exporting for Growth: Opportunities in Non-oil Export as its theme stressed the need to diversify the economy from oil by growing the non-oil export segment from $8 billion in 2019; $25 billion in 2025, and eventually between $70 to $100 billion between the next 12 and 15 years.

    Awolowo, however, said as part of strategy to boost the sector, NEPC has implemented rigorous screening criteria to map out the most promising non-oil export sectors for Nigeria which would be reviewed periodically.

  • Non-oil sector key to economic revolution

    Non-oil sector key to economic revolution

    At a time like this when the country is facing the challenges of dwindling foreign exchange earnings and depleting foreign reserves, there is need for concerted efforts to develop the nations numerous commodities with a view to diversifying the economy.

    Thankfully, presently the non-oil sector holds the key to an economic revolution that would catapult the nation into an economic super power. Given the potentials of the sector to turn the economy around through diversification of the nation’s revenue base from oil to non-oil coupled with its capacity to provide the need for the economic planners to formulate policies that would help stimulate robust activities in the sector

    Before now Nigeria economy has been run solely on oil, practically all government at all level depend on proceeds from oil. The Ministry of Trade and Investment has clearly articulates the industrialisation roadmap of the nation in the Nigerian Strategic Export Products, NSEP, to replace oil.

    Experts have called on agencies of government and commercial banks to deepen their support for Small Medium Enterprises SMEs, through the provision of affordable funding in order to boost non-oil export activities in the sub sector. They requested that NEPC should be present in all 36 states of Nigeria to drive the promotion of non-oil exports effectively while sourcing alternative funding to enhance its operation.

    Recently, nine Nigeria firms had an impressive outing in Las Vegas, United States, where made in Nigeria fashion accessories were showcased. The accessories which enthralled lots of visitors as Nigeria products had neat and impressive finishing. Among participants in the fair is Morin-O Ltd, Monrin Obayewa who is into leather works such as bags, Purse, wallet and Puffs.

    Obayewa has lots of praises for the NEPC, for the opportunity she has so far in showcasing her products outside the shores of Nigeria, in an exclusive interview with The Nation, Obayewa said she sources her leather materials from tanneries in Northern Nigeria of Kano particularly, she is not using one tannery alone she spreads round by moving from one tannery to the other so she could get the best, so far she has achieved a lot by doing just that, and it has worked for her tremendously.

    The Morin O Company is all out to promote made in Nigeria, all her products carry ‘proudly Nigeria’. She said NEPC should keep doing what they are doing, stating that it shows they have significant interest beyond just taking artisans to fares.

    The Executive Director, CEO, Olusegun Awolowo who was represented by Special Adviser Technical NEPC, Morine Idozu said the Export Promotion Council is working round the clock to ensure diversification of the economy. She maintained that a lot of leather seen world- wide comes from Nigeria.

    Recent development in the international economic and political scene has provided a wakeup call on the need for a game changer for Nigeria. It is time to galvanise a new initiative to reduce our over dependence on oil and diversify the economy. Since reaching its peak in June 2014, the price of crude oil has fallen roughly by 60%.

    There has been a steady growth in non-oil exports with the country raking in $2.970billion in 2013, a 15.9% increase over $2.561bn in 2012 with agriculture dominating in 2014 by contributing $1.465b and 53.99% of non-oil exports. All this gains are being threatened by the re-curing issue of rejects of Nigerian exported agricultural commodities and food items.

  • BoI and the creative non-oil sector

    OF the government banks saddled with the mandate of developing the non-oil sector of the Nigerian economy, one appears not only dedicated, but proactive in its drive, especially for the film industry. The bank, it appears is fast clipping the lips of filmmakers whose slogan have always been self-eulogising, dwelling on how Nollywood had evolved without government support.

    The seeming ‘playfulness’ of some filmmakers notwithstanding, the near absence of accountable structures aside – irrespective of the failed Project Nollywood, which put Ecobank in serious debt in the mid-2000, Bank of Industry (BoI) appears to have a positive answer to some of challenges of doing business with Nollywood. And rather than being cowed by the bitter experiences of past sponsors, it has developed its own model of ‘rescue and survive’.

    The bank’s creation of an Entertainment Desk, to me, marked the beginning of the seriousness it has shown the Nigerian motion picture industry. And from indications, the consistency that the bank has shown through single digit interest rates on loans for the development of cinema chain, huge budget-exportable films, auditable distribution companies and production studio services are evidences of its ‘from start to finish’ film business financial  management.

    This slow and steady race, as it endures, could be said to be part of the mission to wean Nigeria from its over-dependence on oil.

    Recently, figures released by the Central Bank of Nigeria indicated that the estimated aggregate output in the fourth quarter of 2012 measured by gross domestic product at 1990 basic prices grew by 7.1 per cent, compared with 6.9 per cent recorded in the preceding quarter.

    While real non-oil GDP was estimated to have grown by 8.2 per cent and accounted for 87.4 per cent of the total GDP in the review quarter, real oil GDP, comprising crude petroleum and natural gas was estimated to have declined by 0.17 per cent, compared with the growth of 16.7 per cent in the preceding quarter and accounted for 12.6 per cent of the total real GDP.

    I am particularly thrilled by the efforts of the Bank in support of the establishment of cinema houses across the country. This, in the wisdom of film pundits is the most realistic measure of recouping investment (relatively), in the face of piracy that presently bedevils the creative industry. The rationale is that, the more cinema houses we have in Nigeria, the more the people who get to see the movies first-hand, and the less the people who would desire pirated copies to assuage their thirst.

    Penultimate Friday, a new film house, Viva Cinema, was opened in Ilorin, Kwara State, courtesy of BoI’s ‘Nollyfund’ initiative. In the scheme, an initial of N1.0billion was earmarked, with a single obligor limit of N50million for individual loans.

    The Viva Cinema, Ilorin, is the second to be established by Viva Entertainment Company in recent time, having initially opened a branch in Ibadan, Oyo State.

    This is aside support given to Kene Mkparu, owner of Filmhouse Cinema, who continues to blaze the trail with his fast-expanding cinema chain, having presence in Apapa, Surulere, Kano, Asaba, Ibadan, Port Harcourt and Calabar among other cities in the country.

    On the other hand, the “BOI NollyFund”, I understand, also makes provision for Nigeria’s leading movie producers to receive financial support to produce international quality films and screen them through various platforms of movie distribution available both in Nigeria and internationally.

    It will be recalled that the Bank had in the past, financed the production of Half of A Yellow Sun, an adaptation of Ngozi Adichie’s book, and Flower Girl by Michelle Bello. It is said to also have a stake in the digitization of Silverbird Cinemas, Filmhouse, Viva Cinemas, Ozone Cinemas and G-media among others.

    To ensure that only commercially viable scripts with good storylines benefit from the scheme, BoI set up a NollyFund Implementation Advisory Group made up of, not just cinema management experts, film producers, national film distributors, production and post-production experts, but also journalists and film critics.

    The producer is expected to sign up a reputable distributor who would issue a Minimum Guarantee and provide a cash deposit of 5% of the loan amount.  A Minimum Guarantee is a cash advance payable to the producer by the distributor in exchange for the exclusive rights to distribute a film in contractually stipulated media in agreed sales territory. This, I am sure, is similar to the internationally accepted loan structures for movie production and will definitely provide a great boost to Nigeria’s Nollywood.

    Interestingly, BoI has already accredited some reputable distributors, including G-Media, FilmOne Distribution Company, Silverbird Distribution Company and Genesis Deluxe Distribution Company for the project. Also joined in the scheme are studio operators such as Fans Connect Online Nigeria Limited, aka Afrinolly, Kingsley Ogoro Productions Limited and 4Screams International Nigeria Limited.

    I believe that every filmmaker worth their game should apply for this fund. A notable Yoruba actress and producer asked me if the scheme was still on, and I said yes. I told her to visit www.boinigeria.com/nollyfund for more information on the product features, the procedure for submission of applications, documentation requirements, pricing, amongst other relevant information.

    Many countries of the world recognise that the private sector has the capacity to drive economic growth given the right conditions. I recall that at an empowerment summit for small and growing business, former Minister of Trade and Investment, Olusegun Aganga mandated the Bank of Industry and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)  to create five million jobs within the next two years (2013 and 2014). There is no gain saying that the movie industry has been classified among the sectors with high capacity for employment across all age brackets.

    Therefore, if the giant strides already taken by BoI are anything to go by, I can only share in the bank’s genuine interest for the creative non-oil sector, and tell it to all.

  • NIPC, NEPC partner on non-oil sector

    The Nigerian Investment Promotion Commission (NIPC), in partnership with Nigerian Export Promotion Council (NEPC), are working towards the process of diversifying the economy through the development of the non-oil sector.

    To this end, the Executive Secretary, NIPC, Saratu Umar, her NEPC counterpart,  Segun Awolowo, have signed a Memorandum of Understanding (MoU) as part of efforts aimed at establishing a framework of collaboration with other agencies.

    The MoU is also aimed at promoting and facilitating domestic and foreign investments in specific areas identified by NEPC for development of the export sector.

    Umar,  said her agency would ensure inter-agency collaboration in a way and manner that will promotes the realisation of the respective mandates of the two institutions.

    “This enhanced inter- agency collaboration is part of NIPC’s current strategy of effectively actualising its mandate which includes encouraging, promoting and coordinating all investments in the economy,  coordinating and monitoring all investment promotion activities, as well as being the liaison between investors and Ministries, Departments and Agencies, institutional lenders and other authorities concerned,” she said.

    Umar explained that the investment coordination framework, developed by the NIPC, will see the Commission entering into partnership with some key agencies in the investment ecosystem for seemless coordination, as well as greater support to investors.

    “This initiative forms part of NIPC’s ongoing Corporate Transformation into a gold standard of excellence on the African continent and a world- class investment promotion agency, comparable to any in the world, that will effectively deliver on its mandate and bring Investment to the forefront of national socio-economic development.

    “This partnership could not have come at a better time than now, when the Nation is experiencing dwindling fortunes in the oil sector, and the current situation demands the diversification of the economy through the development of the non-oil sectors of the economy.”

     

    Speaking, the Executive Director/CEO of NEPC, Mr. Olusegun Awolowo noted that the partnerships between the two agencies which would provide a platform for synergy is targeted at easing the process of exports as well as attracting investments in the sector, stating that now more than ever, it is critical for both agencies to fast track the diversification of the economy in line with the Nigerian Industrial Revolution Plan, NIRP, identifying 13 National Strategic Export Products (NESPs) that will replace oil while it will be supported by two key NEPC initiatives – the One State One Product (OSOP) and Nigerian Diaspora Export Programme (NDEX).