The Nation Newspaper

Tag: Non-oil sector

  • ‘Wealth can be created through enhanced non-oil sector’

    ‘Wealth can be created through enhanced non-oil sector’

    Former Director of Product and Market Development, National Export Promotion Council (NEPC), Mrs. Omowunmi Osibo, has urged state and federal government to help the nation’s artisans and operators of small and medium scale enterprises to succeed and expand in their trades.

    According to her, this will create more wealth and jobs for the citizens. Osibo also noted that unless the nation’s leaders demonstrate the “political will” to nurture the non – oil sector of the economy, the solutions to graduate unemployment in the country may remain forlorn.

    She said there is the need for a paradigm shift in the country from the oil economy to the non – oil sector, developing it to the height of viability through “policies and political will” so that more jobs and wealth could be created for the unemployed.

    The ex – NEPC Director spoke in Abeokuta, the Ogun state capital, at a forum/exhibition of Artisanal Products organised by the Nigerian Export Promotion Council, Abeokuta office.

    Osibo said: “the current unemployment level is as a result of thousands graduating annually (without jobs) which makes it more imperative that a change must be made. It is time for Nigeria to make a change with policies and political will that would truly grow the non-oil sector.”

    According to her, the provision of support and advocacy for small scale sub-sector including artisans through innovative policies such as establishment of industrial parks and clusters would also go a long way towards achieving this common objective.

    Also, the Ogun State urged the artisans in the state that to take advantage of the State Government and Bank of Industry N1bn revolving industrial development fund to expand their businesses to enhance productivity and profitability.

    The Commissioner for Commerce and industry, Bimbo Ashiru, who was represented at the event by Mr. Kayode Ogunti, equally advised the artisans to produce high quality products that can compete with global standards.

  • NEXIM grants N5b intervention fund to non-oil sector

    NEXIM grants N5b intervention fund to non-oil sector

    The Nigerian Export and Import Bank (NEXIM) said it provided N5billion intervention to some key sectors of the economy over the past four years.

    Its Managing Director, Mr Robert Orya, made this known to the News Agency of Nigeria (NAN) in Abuja.

    He said the bank created wealth and alleviated poverty in the last four years, adding that it generated 24,000 jobs.

    He reiterated the determination of the bank to ensure that it attracted N51.2 billion yearly.

    Giving a breakdown, he said the bank gave N35.6 billion intervention to non-oil sector and guaranteed $27.3 million (about N4.3 billion) to beneficiaries in the sectors.

    “If you convert these two amounts of money, it would be around N39.9 billion and that has created a lot of jobs for Nigeria.

    “This is capable of generating an estimated foreign exchange of $320.12 million  annually,” he said.

    He continued: “We decide to choose manufacturing, agro-processes, solid minerals and services, which include tourism, transportation and entertainment industry.

    “Due to paucity of funds, the bank decides to choose four strategic sectors that we know can generate employment and alleviate poverty,’’ he said.

    He said the best way to develop the economy was to give the necessary fillip to the Small and Medium Enterprises’ (SMEs) sectors.

    “In view of this, the bank has put in place structures to enhance the growth of SMEs in the country.

    “From day one, I said if we want to move our economy forward considering its structure, the emphasis should be on the development of SMEs,” he said.

    Orya said one of the things the bank did was to set up business development services to assist SMEs that had good idea, but did not know how to put them in a bankable form.

    He said over 90 per cent of the intervention made was for the SMEs because that was where small jobs could be created.

    He said it was the SMEs that could make meaningful impact on rural dwellers and make them less dependent.

    According to him, the bank focuses mainly on SMEs that have element of export; NEXIM Bank is focused on export-oriented SMEs.

  • Industries drive govt’s N179.5b non-oil sector earnings, says CBN

    Industries drive govt’s N179.5b non-oil sector earnings, says CBN

    Driven largely by receipts from the industrial sector, the Federal Government earned N179.5billion ($1,136.33million) revenue from the non-oil sector in the first quarter of 2013, the Central Bank of Nigeria (CBN) has said.

    This was contained in the banking watchdog’s Economic Report for the First Quarter of the year.

    The report noted that the $1,136.33million, which represented an increase of 15.1 and 9.3 per cent over the preceding and corresponding quarter in 2012, respectively, was driven largely by receipts from the industrial sector and manufactured goods.

    According to the Report: “Total non-oil export earnings by Nigerian exporters stood at US$1,136.33million at the end of the review period. This indicated an increase of 15.1 and 9.3 per cent above the levels in the preceding quarter and the corresponding quarter of 2012.

    “The development was attributed, largely, to the 66.9 and 70.3 per cent rise in receipts from the industrial sector and manufactured products, respectively.”

    The apex bank added: “A breakdown of the proceeds in the review quarter showed that industrial, manufactured, agricultural, minerals and food products earned US$634.2 million, US$322.6 million, US$89.9 million, US$67.9 million and US$21.7 million.

    “The shares of industrial, manufactured, agricultural and food products as well as mineral and transport in non-oil export proceeds were 55.8, 28.4, 7.9, 6.0 and1.9 per cent.”

    Commenting on the CBN Report in Abuja, yesterday, the National President, Nigerian Association of Small Scale Industrialists, Chief Chuku Wachuku, said the report underscored  the importance of the manufacturing sector as the pivot for the transformation of Nigeria’s economy.

    He said: “The CBN’s report which said that receipts from manufactured goods was responsible for the  significant increase recorded by the non-oil sector in the first quarter of 2013, is a very good development for not only the manufacturing sector in particular, but also for the economy in general.

    “The report underscores the importance of manufacturing as the major driver of job creation and wealth generation globally.”

    The Ministry of Industry, Trade and Investment recently kicked off the implementation of the Nigerian Industrial Revolution Plan, based on areas where the country currently has comparative and competitive advantage.

    This, according to the Minister, Mr Olusegun Aganga, is part of efforts aimed at diversifying the nation’s economy by increasing non-oil earnings and contribution to the country’s Gross Domestic Product.

    He said: “Nigeria has huge human and natural resources that are yet to be fully translated into wealth for our citizens. For decades, we have relied heavily on the oil and gas sector, which obviously has generated a lot of revenue for the Federal and state governments, but is less inclusive.

    “The good news is that today, we have started reversing that process by focusing more on diversifying the earnings base and deliberately positioning our industries as key drivers of growth. We have started seeing some results.”

    Aganga added that the Federal Government was committed to partnering the state, local governments and the Organised Private Sector on the provision of a sustainable enabling environment to fast-track the growth and development of the nation’s manufacturing sector in line with the goals of the NIRP.

    He said: “We are creating a sustainable enabling environment that is capable of attracting and retaining both domestic and foreign investments. Government’s driving force has been the need to meaningfully improve the welfare of the average Nigerian by designing and implementing policies and strategies that will lead to inclusive economic growth.”

  • Non-oil sector can sustain economy, says Army chief

    The Federal Government has been advised not to depend solely on oil export earnings, but to pay more attention to the non-oil sector to sustain the economy.

    Speaking during the breakfast briefing of the Institute of Directors of Nigeria (IOD) in Lagos, the Chief of Army Staff, Lt.-Gen. Azubuike Ihejirika, represented by the Chief of Accounting and Budget, Maj.- Gen. Abdullahi Muraina, blamed the lingering economic stagnation, rising poverty level and the decline of public institutions on poor economic management

    Speaking on the theme: The role of the Armed Forces in economic development, Ihejirika said the fluctuations in public expenditure has reflected both the over-reliance on oil earnings and weak fiscal discipline by previous governments, adding that unstable fiscal spending also tends to cause real exchange rate volatility.

    He said the fiscal expansions financed by oil revenues often result in domestic currency appreciation, creating what he described as Dutch-disease concerns and reducing competitiveness of the non-oil economy

    The Army chief saidlack of infrastructural development has hindered public investments, adding that this has slowed down private sector activities over the years.

    He blamed the poor condition of the power sector on the country’s infrastructural shortfall.

    Meanwhile, per capita power consumption in Nigeria has been estimated at 82 kilowatts (kw) compared with an average of 456kw in other sub-saharan African countries, and 3,793kw in South Africa.

    Ihejirika said Nigeria’s economic performance prior to economic reforms was generally poor, adding that between 1992 and 2002, the yearly GDP growth averaged about 2.25 per cent with an estimated population growth of 2.80 per cent per year.

    This implied a reduction in per capita GDP over the years, which he noted, has worsened the living conditions of most Nigerians. He said the inflation levels are high, averaging about 28.94 per cent per annum over the same period.

    He said human development indicators in Nigeria compare favourably with those of other least developed countries, but regretted that widespread corruption has destablised the effectiveness of various public expenditure programmes, he, however, expressed confidence over the attainment of macroeconomic stability which, he said, had provided a platform for improved growth performance in the recent time

    He observed that the growth rates have averaged about 7.1 per cent yearly for 2003 to 2006. This, he said, was a notable improvement on the performance over the decade before the reforms when yearly growth rate averaged about 2.3 per cent.

    The President of the institute, Thomas Awagu, who reiterated his commitment to advancing the economic development of the nation, said the institute would continue to establish contact among business leaders at the highest levels and partner withthe government for the creation and entrenchment of favourable business friendly policies in the country.