The Nation Newspaper

Tag: policy

  • Maritime policy: Buhari leads security team to Malabo

    To achieve greater security of lives, resources and investments in all parts of Nigeria and its sub-region, President Muhammadu Buhari will travel to Malabo today for talks with President Obiang Nguema Mbasogo of Equatorial Guinea.

    The talks will centre on measures to protect the people and resources of the Niger Delta and Gulf of Guinea.

    The conclusion and signing of an agreement by Nigeria and Equatorial Guinea for the establishment of a combined maritime policing and security patrol committee on Tuesday is expected to be the major outcome of President Buhari’s talks with his host.

    A statement by the Special Adviser on Media and Publicity, Femi Adesina, said that President Buhari and President Mbasogo are also expected to discuss and agree on other collaborative measures to combat crimes such as piracy, crude oil theft, attacks on oil rigs, arms smuggling and human  trafficking in the Gulf of Guinea.

    Both leaders will also confer on the rescheduling of the joint summit of the Economic Community of West African States and the Economic Community of Central African States on additional cooperative measures to curb terrorism and violent extremism in West and Central Africa.

    The summit was to have been hosted by Equatorial Guinea last year but was postponed because of Nigeria’s general elections.

    Buhari will be accompanied by Minister of Defence Brig.-Gen. Mansur Dan-Ali (rtd.),  National Security Adviser Maj.-Gen. Babagana Monguno (rtd.) and other senior security officials.

    He is scheduled to return to Abuja on Tuesday.

  • Energy policy coming, says Fashola

    Energy policy coming, says Fashola

    Power Minister Babatunde Fashola has pledged to unveil his energy policy when next he addresses the media. The policy will holistically show the direction of the government in solving the problems of the power sector in the short and long terms. He has also mandated the distribution companies to significantly improve service delivery. EMEKA UGWUANYI reports.  The Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), has promised to make his energy policy public when next he briefs the media, and directed electricity distribution companies (DisCos) to significantly improve electricity supply and customer service delivery.

    Fashola said this during his second monthly meeting with operators in the electricity industry in Lagos. He said: “I will come to energy policy, much more later when I do my second press briefing. All of you in the media owe a bigger responsibility now to enlighten people. Everybody must know how power is produced, because the problem is still with us, gas, transmission, and the way the privatisation exercise was conducted. But I will not lament what has happened in the past, I will move with it.”

    He continued: “When we took over and assessed the situation, nobody was happy with it. This is a problem that has been here for 16 years if you it put mildly, and 100 years ago, if you put it really extremely. I have been here for less than hundred days, and I think we can solve this problem if you give us the tools that we need to do it. I think this problem can be solved and the day I feel it cannot be solved, I will tell you I don’t think it will work.”

    The minister said he reached an agreement with the DisCos to improve customer service delivery by strengthening the operations of their customer centres and providing dedicated phone numbers to ensure consumer complaints within their jurisdictions are promptly responded to.

    The meeting, which holds every month, is meant to identify, discuss and find practical solutions to issues facing the Nigerian Electricity Supply Industry. The Minister has set a goal of attaining at least 7,000megawatts (Mw) of electricity generation by end of this year. Although he has refused to make how to go about it public, but he has discussed with the operators.

    According to Fashola, the most important thing is for Nigerians to access power when they need it and not just mentioning megawatts. He said: “The simplest thing to do is to commit to megawatts, but even if I have 1,000Mw only on the grid, can people access it? As for megawatts, we now have over 5,000Mw, and we are calibrating there. I don’t want to discuss megawatts, but Nigerians will see incremental power output if everybody allows stability to stay. Once you shock this system, gas will hold on, generation companies (GenCos) will hold, contracts are stalled and debts will mount again. Because the person that takes gas will not return it, he must push it out, so people must understand how fragile this system even at the best of time can be.”

    Also at the stakeholders’ meeting, AES Power Plant, Egbin Power Plant and the Nigerian National Petroleum Corporation (NNPC), agreed to meet today to complete the ongoing negotiations with a view to supplying gas to AES power plant.

    The Transmission Company of Nigeria (TCN) addressed some interface issues, discussed ongoing plans to review and resolve them. The firm  identified 51 of them to be resolved, which affect supply in areas such as Alaoji, Sokoto, Ahoada, Damaturu, Gbarain, Calabar, Afikpo, Nsukka, Okigwe, Ihiala, Ayede, Ikeja, Ajah, Lekki, Kebbi, Jos, Kaduna, Kano, Makurdi, Kainji, Kafanchan, Otukpo, Hadejia, Wudil, Kumbotso, Bauchi, Gombe, Katsina, Daura, Abuja and Maiduguri.

    The NNPC also presented its plans of adding significant gas supplies for power generation. The operators said the power sector expects an addition of 220 million standard cubic feet per day (mmscf/d) by the end of first quarter of 2016, and 785 mmscf/d by the end of second quarter of 2016 cumulative.

    To solve the power sector liquidity issues, the Nigerian Bulk Electricity Trader (NBET) said there is need to develop a Power Sector Liquidity Bond to cover validated present and future liquidity gap until 2018 and the Central bank of Nigeria (CBN) committed to immediate resumption of disbursement of the balance of the N213 billion facility previously approved but suspended

    The Nigerian Electricity Management Services Agency (NEMSA) also emphasised the need to improve safety standards by DisCos and their contractors in order to reduce accidents and death. NEMSA underscored the health and safety issues of the sector and the need for improvement in responsiveness to health and safety issues. The operators agreed that NEMSA shall start to rank DisCos for safety compliance and accident reduction, as well as applying sanctions for non-compliance. It cited the case of the electrocuted University of Lagos student.

    On metering, the minister gave targets to the DisCos. Eko DisCo was mandated to install 90,000 by end of June and 150, 000 by December, while Ikeja DisCo is 120,000 and 220,000 within the same timeframe.

    Others are Kano DisCo 40,000 and 100,000; Yola DisCo 30,000    and  75,000; Jos DisCo 45,000 and 120,000; Benin DisCo                         18,000           and 36,000 having 200,000 cleared with Nigerian Electricity Regulatory Commission (NERC), and Port Harcourt DisCo 75,000 and 150,000, all within the same timeframe.

    NEMSA said it is also ready to test and certify over 70,000 additional meters that the Port Harcourt Electricity Distribution Company (PHEDC) is planning to install for customers.

  • Forex policy stifling ICT development, says Spectranet chief

    The foreign exchange (forex) policy of the Central Bank of Nigeria (CBN) has taken its toll on the information communications technology (ICT) sector.

    It has not only stifled efforts to expand capacity but has turned operators into debtors as they cannot get dollars to pay for equipment imported into the country, the Chief Executive Officer, Spectranet, David Venn said yesterday in Lagos.

    Speaking with ICT reporters in what the firm tagged: Town Hall Meeting, he lamented that the policy has put spanners in the wheel of the plans of entrepreneurs who depend on imported equipment such as Base Transceiver Stations (BTS) to offer high quality services to customers in the country.

    Spectranet is a firm that offers high speed internet services, using the latest technology which is 4G.

    He said the major challenge with the dollar drought is that the technology firm has the cash in naira but cannot get dollar to buy to pay for goods and services. According to him, international bandwidth requisite for the delivery of super fast broadband internet services and equipment are sourced from outside the country in dollars, lamenting that the forex squeeze has disorganised the capacity expansion plans of the firm.

  • Surveryors urge govt to involve experts in policy matters

    Participants at a public lecture by the Lagos Branch of the Nigerian Institution of Surveyors (NIS) have advocated the involvement of professionals in to end are policy formulation and execution sustainable growth and development.

    They spoke at the 11th Annual Surveyor Adekunle Kukoyi Memorial Lecture in Lagos, which had Landscape: Challenges and Responsibilities for African Future as its theme.

    Ambassador Oladapo Fafowora, who chaired the event, said: “It is my impression that professional associations are not accorded the desired attention; very often, they are not consulted on policy matters that affect them, or that are of direct interest to them,” noting that professional association should not be seen as adversaries, but rather as partners in progress.

    Following this path, Fafowora argued, will ensure that the country is moved further towards a corporate system of governance, in which the private sector, surveyors and other professional bodies, is taken seriously by the government and their views taken into account in policy formulation.

    NIS Chairman, Lagos Chapter, Mr. Gbenga Alara, extolled the legacies of the late surveyor, Adekunle Kukoyi, adding that the lecture series in his honour have significantly contributed to setting agenda for national development. Besides, the series is also aimed at stimulating thoughts and imaginations of Nigerians towards a better and saner country.

    Similarly, NIS National President Mr. Ben Omo-Akhigbe urged the practitioners to be diligent in their endeavours and strive to be leaders of people just like the late Kukoyi, who, he said, rejected government’s appointment to ensure that things were done professionally.

    “If Kukoyi wanted to satisfy personal interest, he wouldn’t have rejected the offer to be the surveyor-general of Lagos State,” Omo-Akhigbe said.

    The guest lecturer at the event, Prof Gabriel Ogunmola, who is also the Chancellor, Lead University, Ibadan Oyo State, said strong measures, including rebuilding of public institutions, should be introduced to address the challenge posed by corruption to Nigeria’s prosperity, stability and security.

    He regretted that the humongous amount so far discovered in the arms purchase scandal involving the former National Security Adviser, Col. Sambo Dasuki (rtd) and other prominent Nigerians was a national shame.

  • Tomato paste importers seek review of forex policy

    Tomato paste importers seek review of forex policy

    Some importers have called on the Federal Government to review the Central Bank of Nigeria forex policy banning them from accessing foreign exchange from the official window just as indigenous producers are saying that the restriction is a welcome development in restoring agriculture as the main stay of the economy.

    Labour union officials in some of the local tomato processing companies have called on the presidency to prevail on CBN to review the forex policy listing of triple concentrate tomato paste among the 41 items banned from accessing foreign exchange from the official window by the Central Bank of Nigeria as the inability of the firms to import tomato concentrate which is the main raw materials used in their production process had drastically affected them.

    According to the President, National Union of Food, Beverage and Tobacco Employees, Lateef Oyelekan, the companies involved should be given the latitude to plan for backward integration as one of the downside of the policy is that it could lead to massive job losses, as an estimated 1000 jobs are likelyto be lost in the tomato process manufacturing sector.

    “The jobs of the workers are at stake unless the ban is reversed, and that the opportunity for backward integration would be lost by the affected companies.”

    According to him, the quantity of the produce being cultivated presently in the country is not enough for local consumption and the quality is not good enough to be processed into paste. However, Mr. Felix Aigoro, an Agricultural Expert with over 20 years experience in tomato farming, pointed out that Nigeria produces high quality tomato and is ranked the 2nd largest producer of tomato in Africa and 13th in the world with a total production estimated at 1million hectares of land producing 1.701 million tonnes per annum with average of 20-30 tons/hectare yet Nigeria remains the largest importer of tomato from China.

    In an interview with The Nation, the Agricultural expert on tomato adviced those clamoring for the review of the CBN forex policy to rather ask Government for greater aid and support towards granting low interest loans, infrastructures, steady energy and creating enough tomato processing plants.

    “It is estimated that between 35 per cent and 40 per cent of the total agricultural produce in the country is lost due to absence of non- provision of processing facilities. This has resulted in cycles of scarcity and plenty of fluctuations in prices”, regretted the tomato farmer.

    Decrying the unfortunate situation, the tomato farmer said that Nigeria imports 65,809 tonnes of processed tomato annually worth over N11.7 billion despite its massive local production adding that the trend may continue if adequate processing and storage mechanism is not developed and put in place.

    “Take for instance, a recent survey has revealed that most of the brands in the market are imported and the presence of local brands is scarcely noticeable’’, he said

    Speaking further, he said that although more than 200,000 Nigerian farmers grow tomato, not one of the more than 50 tomato paste brands for sale is made from their produce resulting in half rotting in the fields before reaching the market.

    “The market is assured for any entrepreneur who comes out with good quality brands because tomato products are in daily use, have high repeat sales tendency and a long cycle therefor establishing more tomato fruit processing plants in the country will go a long way towards utilizing the enormous quantities of fresh tomato that go waste for lack of processing and preservation especially during post harvest periods of plenty.

    Reacting to the statement that local production may not be enough to meet demand and the quality of the locally grown tomato may not be good enough to be processed into paste, Mr. Aigoro who has a 1st and 2nd degree in Agricultural science said that “Nigeria has the capacity to meet local demand and even for exportation and the quality of our tomato especially from the northern part of the country is top quality”.

    “We have seen a lot of improvement in the demand for our products especially our Life vegetable oil since the new CBN forex policy restricting importers of Vegetable oil from accessing foreign exchange through the official way” enthused Chris Chigbo, Executive Director of Chicason Group an indigenous company.

    Speaking, he noted that the restriction of imported finished products will greatly encourage local manufacturers who hitherto were finding it difficult competing in terms of price with most of the importers who were not even paying full duty on their products.

    “We are also happy with the increased tariff on imported lubricants. Before now, the market was filled with all brands of adulterated and substandard lubricants but with the increased tariff we now have some semblance of sanity in the lubricant market” said the Chicason, Director,manufacturers of A-Z oil.

    However he stated the need for a little review of the CBN forex policy on some raw materials which Nigerians are not yet producing enough to meet demand adding that restrictions on those materials will only make the manufacturers to source from parallel market which will  increase the price of the finished products.

    Also speaking on the policy, President of the Lagos Chamber of Commerce and Industry (LCCI), Remi Bello, while criticizing the policy, warned that most manufacturers might be forced to shut down and move their operations to neighbouring countries due to their inability to access foreign exchange for raw materials and other critical inputs.

    According to him, the government needs to first address the issue of post-harvest wastage emanating from inadequate storage and the absence of processing facilities and the development of agro-allied industry. “No matter how bounteous the nation’s harvest is, such productivity will count for little if the produce cannot be stored.” he said.

    However the CBN Governor, Godwin Emefiele noted that as a result of the policy, the bank has been able to conserve some foreign currencies with a lot of progress made on local production of the 41 listed items.

    According to reports, Nigeria imports 65,809 tonnes of processed tomato annually worth over N11.7billion.

    The CBN Governor clarified that “the Apex bank did not ban total importation of the said items but only restricted access of foreign exchange from official markets to the importers of those items that we think we can produce competitively locally so as to improve our local industries due to the challenges we have, due to the fall in crude oil revenue.”

    Appealing for more patience and understanding, from Nigerians and the people affected, he said that the Government and some other stakeholders are convinced that these items can be produced locally adding that forex can only be made available to those importing essential raw materials and goods that cannot be produced within the country.

  • Experts make case for solid mineral policy

    Experts make case for solid mineral policy

    Nigeria is endowed with a variety of solid minerals. There are about 40  kinds of solid minerals of various categories waiting to be exploited, according to Nigerian Extractive Industries and Transparency Initiative (NEITI). With a robust  policy, experts say that the sector could contribute to Nigeria’s economic growth and development. Assistant Editor OKWY IROEGBU-CHIKEZIE writes.

    The solid minerals sector is acknowledged as a viable alternative to oil & gas sector for foreign exchange earnings. The commercial value of the nation’s solid minerals is estimated to run into trillions of dollars annually, with 70 per cent of it said to be buried in the bowels of Northern Nigeria alone.

    The Minister of Solid Minerals Development, Dr. Kayode Fayemi, admitted this much during his first meeting with media practitioners when he said the solid minerals sector, when properly structured, has the capacity to provide no fewer than a million direct jobs and contribute as much as the oil and gas sector into the national economy.

    According to recent report by the National Bureau of Statistics (NBS), the contribution of the solid minerals sector to the Nigerian economy, which stood at one per cent as at 2014, has the potential to increase to 10 per cent by 2020.  The report further stated that the sector is capable of creating millions of direct and indirect jobs.

    The NBS report stated specifically that 44 solid minerals are found in commercial quantity and are spread across the 36 States and the Federal Capital Territory (FCT), Abuja. Out of these, seven strategic solid minerals are currently prioritized and promoted for private sector participation and investment by the Federal Government. They are gold, coal, bitumen, limestone, iron ore, lead/zinc and barytes.

    To fully exploit the immense potential in the sector, experts say there is need for a solid minerals policy to ensure an orderly development of the country’s mineral resources. Such policy, they noted, would among others, provide clear rules for predictable behavior by the authorities, and a clearly prescribed pattern of developments with roles of the different actors clearly defined.

    Before now, previous administrat-ions had made it a priority to encourage investors to venture into the solid minerals sector in order to diversify the economy. This led to the introduction of the Nigerian Minerals and Mining Regulation 2011 to streamline procedures for granting licenses to investors (both local and foreign) and guarantee access to mining sites with minimal encumbrances.

    The regulation provided for the right to search for, or exploit minerals in Nigeria, and is obtained through any of the following mining titles: Reconnaissance Permit, Exploration License, Small Scale Mining License, Mining License, Quarrying License, and Water Policy.

    The legislation guarantees among other things, security of tenure through mining lease, transparent procedures for granting access to mining titles on a first come first serve basis by Federal Ministry of Solid Mineral Development.

    Others are a pledge to give internationally competitive mining incent-ives and also provide comprehensive geo-science data of mineral deposits and their locations in Nigeria.

    A comprehensive package of incentives have also been put in place to create a favourable environment for investment, some of which are deferred royalty payments, capital allowances of up to 95 per cent of qualifying capital expenditure, exemption from customs and import duties for plant, machinery and equipment for mining operations.

    In addition to three to five years’ tax holiday as applicable; and tax concessions, possible capitalisation of expenditure on exploration and surveys, there is expatriate quota and resident permit in respect of the approved expatriate personnel and personal remittance quota for expatriate personnel, free from any tax imposed by any enactment for the transfer of external currency out of Nigeria.

    In addition to the above fiscal incentives, the Nigeria Investment Promotion Council (NIPC) Act 16 of 1995 allows for 100 per cent ownership of investment, while the Foreign Exchange Miscellaneous Act 17 of 1995, guarantees 100 per cent repatriation of capital, profit and dividends through authorised means.

    Apart from the seven strategic solid minerals that have been prioritized and promoted for private sector participation and investment by the Federal Government, other solid minerals that are found in commercial quantity, making Nigeria haven for investment, include rock salt, gypsum (an important input for the production of cement), gemstones, kaolin, and tantalite.

     

    Experts speak

    Experts have advised on the need to have added value to the numerous minerals in the country. They noted that most of the minerals are sold in raw form without any value addition, depriving the nation of the much needed foreign exchange. They argue that to derive more revenue from the products and create more employment opportunities, there has to be value addition.

    The Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) declared that the solid minerals sector has greater capacity to generate revenue than oil Its President, Dr. Abdul Bello, said Nigeria has large solid mineral deposits in most of the 36 states of the federation. He, however, lamented that the sector had been largely neglected in the wake of the oil boom.

    Dr. Bello said in view of declining revenue from oil, government now has no option than to diversify the economy by focusing on the solid minerals sector.

    KADCCIMA Second Deputy President, Hajiya Muheeba Dankaka, agrees with him. She said the reduction in global crude oil prices is not expected to cease, at least in the short run. While noting that this has necessitated the need to diversify the economy, she said one key sector that offers great potential in achieving this is the solid minerals sector.

    Dankaka and other stakeholders however, pointed out that an industry such as the solid minerals sector that has the potential to be a major cash cow unfortunately lacks adequate regulation and a proper structure.

    They asked government to address the lack of synergy between state Ministries of Mines and the Federal Ministry of Mines and Steel and to create a relationship between mining host communities and the ministry.

    They canvassed the removal of mining from the Federal exclusive list to allow states regulate mining activities in their domain.

    They also  asked that strict adherence to laws guiding environmental pollution and degradation in mining communities should be instituted while ensuring that Environmental Impact Assessment (EIA) is carried out before mining licenses are given to artisanal miners. Government’s efforts

    Dr. Fayemi said the main focus of his ministry is to reposition mining activities in the country and ensure that the sector contributes immensely to economic growth within a decade.

    He said opportunities abound in the solid minerals sector to actualise the current administration’s vision of using the sector to diversify the economy and create jobs.

    According to the minister, any current holder of mining licence who failed to use it would forfeit such from March when the ministry would start enforcing the ‘use it or lose it’ doctrine as enshrined in the Nigerian Minerals and Mining Act.

    While unveiling the roadmap, which the ministry intends to achieve in the short, medium and long term, the Minister pointed out that the country’s solid minerals sector currently makes up about 0.34 per cent of gross domestic product (GDP), which translates to about N400 billion in value to the economy.

    Dr. Fayemi, a former Governor of Ekiti State, said: “While this is a significant role, it is smaller than the true potentials of the sector. In fact, what has been happening is that the sector has been operating sharply below capacity, with many mining operations manned by small scale miners as opposed to large scale players.”

    He, however, said when properly structured, the sector has the capacity to provide no fewer than a million direct jobs and contribute as much as the oil and gas sector into the national economy.

    Although the minister noted the global decline in prices of mining products, he said the good news is that Nigeria has a great deal of domestic demand for industrial minerals and metal. “So we will focus on working with other Ministries, Department and Agencies (MDAs) to ensure the demand is met by Nigerian miners and processors,” he added.

    To achieve the ministry’s set goals, Fayemi said certain steps would be taken in the short term, including undertaking an external audit of revenue receipts in the solid minerals sector for the past years.

    He said the ministry would focus on jobs creation, block all leakages to shore up its revenue generation; build an industry that would support the country’s industrialisation and become sustainable, transparent and environmental friendly.

    “We also want to build an industry that integrates states, communities and existing miners into mining ecosystem. If we deliver on this vision, then we can build a mining sector that Nigerians can be proud of in 30 years or more from now. This sector should deliver double digit growth over the next decade with important direct and indirect economic impacts on households,” he stated.

    The Minister also said the ministry would enter into strategic partnership with the banks to develop interest in the sector and assist investors as well as the National Assembly for legislation and other ministries, National Security Adviser (NSA) and the Nigerian Custom Service (NCS) among others.

  • CBN’s forex policy raises production capacity for manufacturers

    Local manufacturers are pleased with the Central Bank of Nigeria’s (CBN’s) forex policy, saying it has raised  production capacity and enhanced their operations.

    Two leading local manufacturers in the packaging industry, acknowledged that the impact of the CBN policy on forex  has more than doubled their productive capacities, helping them to meet increased demand for their products.

    Deputy Managing Director, Tempo Paper Pulp & Packaging Limited, Nassos Sidirofagis, said since the policy’s implementation started, his firm has  increased its production capacity from 50 per cent to 70 per cent.

    He said this raised their export volume and foreign exchange earnings for their firms and the economy.

    He said the policy has helped manufacturers to realise the urgent need to expand because of increasing demand for their products.

    Sidirofagis said the company planned to start an expansion project due to expected increase in demand within this year and next.  “We have since developed capacity to also attract foreign investors, who we believe are exploring investment opportunities in our organisation. Therefore, on all sides this is a win-win situation for Nigeria and local manufacturers”, he said.

    On mitigating challenges facing local manufacturer’s capability to expand, he noted that government should focus more on manufacturers so that the local economy will not experience what Greece experience.

    For him, the CBN should continue to implement the policy for the next two or more years, to facilitate full development of local capacity to attract investors.

    Also speaking, Group Operation Manager of SREN Chemicals Limited, Oluwasesan Taiwo-Tijani, said his firm has benefitted from the CBN foreign exchange policy. He explained that the policy has forced several companies who are import-driven to patronise SREN Chemicals and hence, raised their transaction volume and profitability.

    “This impacted on our sales with our productive capacity increased by 30 per cent,” he said.  Taiwo-Tijani urged the Federal Government to retain the policy so as to sustain local content development and to turn Nigeria into an export dependent country.

    He urged the CBN and Federal Government to mitigate challenges facing local manufacturer’s capability to expand so as to enhance the economic development f the country.

  • Assessing Nigeria’s afro-centric foreign policy

    No country is an island on its own.  Although some countries have vast resources, they still require a form of relationship with other to aid the fulfilment of their own national interests. The notion of independence and sovereignty truly exists, but no state can exist in complete seclusion from all other states. Every politically independent nation is an actor in the global arena and arrays certain measures of power and influence in order to achieve interests favourable to its citizens, promote the cachet of the country and also aid growth and development in the country. National interests continue to remain a major determinant of a nation’s foreign engagement. I always like to make reference to the definition of K.J Holsti who defined foreign policy as the conscious behaviour of a nation state towards the external environment. Foreign policy refers to those goals, objectives and aspirations a country seeks to achieve in another country while expecting the promotion of its own national interest would be the resultant effect of the achievement of those goals and also the strategies put in place to achieve those goals.

    Upon independence in 1960, Nigeria began her external relations as a sovereign state with her emergence as the 99th member of the United Nations. The Nigerian foreign policy has gone through different processes of transformation right from independence. Nigeria since 1960 has shown a sign of being a pillar that can support other African countries. Nigerian foreign policy from Tafawa Balewa’s administration (1960-1966) has expressed some basic directions and focus: principle of non-alignment, principle of non-intervention, Africa as the centrepiece, policy of good relationship with other states, inter alia. Nigeria was very keen about ending colonialism and racism on the African continent. Even with the limited resources and unlimited wants in Nigeria, Nigeria was very influential in anti-apartheid and decolonization struggles in Africa. Right from independence, Nigerian foreign policy has been experiencing changes, and not a total replacement of the foreign policy. Nigeria has always shown a great commitment to dealing with African states in her foreign policy. Nigeria has always been treating issues concerning Africa with keen interest. Nigeria has been showing her concern for issues of African interest and development. Nigeria is being referred to as the giant and the big brother of Africa. The Murtala/Obasanjo government is often regarded as the golden era of Nigerian foreign policy. During these administrations, daring decisions were taken to fast track the independence of Zimbabwe, Angola and Namibia. The obnoxious apartheid regime in South Africa was seriously frowned against. On February 8, 2007, Nigeria initiated Co-prosperity Alliance Zone (COPAZ) with Togo and Republic of Benin which was aimed at promoting economic cooperation and friendship and reducing marginalization in Africa. Ghana was later co-opted. Nigeria also hosted the second black Festival of Arts and Culture (FESTAC) which was an Afro-centric project that expressed Nigeria’s Afro-centric Foreign policy stand. Nigeria was a key actor in the formation of the Organization of African Unity (OAU) in 1963 that later became the African Union (AU) in 2002 and the Economic Community of West African States (ECOWAS) in 1975. Nigeria is one of the major contributors to the Africa Union and ECOWAS. The role of Nigeria in peace-keeping operations in Africa cannot be over-emphasized. Good examples are the peace-keeping missions in Liberia and Sierra Leone. More often than not, when countries talk about foreign policy, the first thing that they focus on is their domestic interest. In Nigeria however, when speaking of our foreign policy, we speak about our national interests and African interests.

    Nigeria has been an influential actor in Africa; all the good things Nigeria has done in favour of Africa stand as investments. However, when one invests, one would expect a return on investment. This is hardly the case with Nigeria when speaking of her Afro-centric foreign policy. I would like to begin with the xenophobic attacks in South Africa in 2015. Various Nigerians were displaced as a result of this attack. Some Nigerian businesses and shops in Johannesburg and Durban were burnt and looted. Hundreds of Nigerians were displaced in Jeppes town near Johannesburg. Nigeria had to recall her High Commissioner from Johannesburg. This was a painful occurrence as Nigeria is a country with African interest at heart and that was what the country got back. South Africans cannot pretend to forget the key roles Nigeria played in anti- apartheid movements in South Africa. Nigeria was the chairman of the United Nations Special Committee against Apartheid for over 20 years. The committee was responsible for the international campaign against apartheid. The first world conference for action against apartheid was hosted in 1977 in Lagos, Nigeria. Some Nigerians have also been maltreated in Gabon and Equatorial Guinea. When the Organization of African Unity was created, it took a whole decade before a Nigerian leader was accorded the honour of serving as the chairman of the OAU. The first three leaders were from Ethiopia, Egypt and Ghana respectively. Nigeria, the largest African shareholder was out-manoeuvred over the presidency of the African Development Bank in 1995 and 2005. Another basic example is the recent cash crunch that hit ECOWAS. Nigeria has been one of the major financiers of the organization, and Nigeria has remained committed to the strategy of economic integration at the regional level. Nigeria has various current and impending issues to deal with, most countries of ECOWAS failed in their payment obligations and the organization began to dwindle and they left the financing of the organization to majorly Nigeria, Ivory Coast and Ghana with Nigeria being the largest contributor. In the past, Ghana adopted some stringent over-taxation economic policies that were meant to limit the economic presence of Nigerian businessmen in the country in an indirect manner. It is pertinent to mention in 2009 during the election of Nigeria as a non-permanent member of the United Nations Security Council, which would be for two years, from the beginning of 2010 to the end of 2011, Sierra Leone, Togo and Liberia voted for themselves even though they were not candidates, neither were they listed for the election. They stood against the candidature of Nigeria indirectly. It would have cost them nothing to vote for Nigeria. Sierra Leone and Liberia are countries Nigeria has helped most especially in peace support operations, so where is the return on investment here?

    Rather from this illustration, we can point out a great loss on investment.

    In conclusion, one can like to regard the Afro-centric foreign policy of Nigeria as being mundane as some or most of these countries hardly express their gratitude towards the effort Nigeria is making. The returns from the sacrifices made cannot be compared. Despite Nigeria’s commitment to ensure good relations with African states, some of these states have continued to behave in such a manner that is offensive to Nigeria’s interests. As a result, there has been a continuous polarization in views about the continued relevance of Nigeria’s Afro-centric foreign policy. Nigeria is not really being appreciated although the gains these African states enjoy make them acknowledge Nigeria’s leadership role. It is as if Nigeria is being used by these countries just to get what they want.

    • Iyiola, is a student of International Relations, Landmark University Omu-Aran Kwara State.
  • Senate urges CBN to relax strict forex policy

    Senate urges CBN to relax strict forex policy

    • “Small businesses facing difficulty, says Saraki

    The Senate has urged the Central Bank of Nigeria (CBN) to relax its strict Foreign Exchange policy, saying it is doing more harm than good.

    Senate President Bukola Saraki, at a meeting with the Managing Director of the International Monetary Fund (IMF) Christine Lagarde, said small businesses especially were suffering unnecessarily.

    He asked the apex bank to introduce a more flexible foreign exchange regime and reduce the restrictions on the autonomous market, which does not allow business men to bring in foreign exchange or utilise what they have in their accounts.

    The Senate President  equally canvassed a similar view at a private meeting with CBN Governor Godwin Emefiele, imploring him to consider the effects of the present forex regime on small businesses, which are dying  following decreasing crude oil revenue.

    Saraki urged the IMF chief to support the CBN to bring in low interest loans to SMEs, adding that “we need to encourage entrepreneurs and make most of our new graduates job creators rather than job seekers. This is an area where we need the financial support and technical assistance of the IMF.”

    He explained that his office has received numerous complaints from small businesses complaining that they are being threatened by the huge bottlenecks involved in doing business.

    “As legislators, we play an important role in making our people understand IMF’s advice, policy trade-offs, consultations and other engagements, so that ownership, transparency and accountability are brought to bear on economic policy choices.

    “The Nigerian legislature strongly believes that having a collaborative working relationship with the Executive Branch of government brings development closer to the people.

    “Since the advent of the new administration, we have worked closely to stabilise the economy and steady the fiscal environment. This, we have indeed demonstrated by the speedy passage of the Medium Term Expenditure Frame Work (MTEF) and recently in the postponement of our recess in order to receive President Muhammadu Buhari to present the 2016 Appropriation Bill.

    “The purpose of our Legislative Agenda is to enable us focus our lawmaking in areas that will help create jobs, expand our infrastructure base and make our economy work for the benefit and happiness of the majority of our people.

    “Pivotal to the attainment of this overarching objective is the state of the Nigerian business environment. In collaboration with major stakeholders, the 8th Senate is presently signing a memorandum of understanding on Enhancing Nigerian Advocacy for Better Business Environment Project, a National Assembly business and investment roundtable initiative, with developmental organisations,” the Senate President said.

    He urged the CBN to ensure that in reacting to recent developments in the economy, it does not devalue the naira for the mere sake of devaluation.

  • Unscrupulous businessmen hijack auto policy

    Unscrupulous businessmen hijack auto policy

    The Federal Government’s hope of riding on the crest of the automotive policy to achieve its strategic objective of encouraging local manufacturing of vehicles and halting the estimated $6.7 billion sunk into the importation of vehicles yearly has come under serious threat. Some phony auto dealers/firms may have hijacked the policy with the intention of benefitting from the government’s zero tariff to companies genuinely assembling cars locally. CHIKODI OKEREOCHA reports.

    When the Federal Government introduced the New Auto Industry Development Plan (NAIDP) around 2013, not a few operators and stakeholders lauded the policy as a lofty initiative.Their expectation was that the policy would promote the local assembly and production of vehicles, and increased employment opportunities for Nigerians. It was also hoped that the policy would conserve scarce foreign exchange, accelerate technological development of the local economy, standardise and rationalise the automotive industry, among other positive spin-offs.

    The former Minister of Industry, Trade & Investment, Dr. Olusegun Aganga, articulated the collective hope and aspirations of Nigerians that the policy would  turn around the fortunes of the auto industry and, by extension, the economy. He said the policy would halt the huge capital flight expended on the importation of vehicles into the country. He said, for instance, that Nigeria spends on the average, $3billion to import new cars and another $3.7billion to import fairly used cars and parts.

    Aganga, who warned that the figure would continue to grow if nothing significant was done, added that it is only Nigeria and Bangladesh that do not have auto policies. He said Nigeria cannot afford to be neutral on the issue because it is a big employer of labour. The auto sector, according to him, accounts for about nine million jobs globally and accounts for five per cent of manufacturing.

    However, two years down the line, the policy is yet to meet its strategic objectives. Rather than do so, the policy has been hijacked by some unscrupulous businessmen in the auto industry.

    These unpatriotic and phony vehicle manufacturers, The Nation learnt, are benefitting from the zero tariff given by government to companies who are genuinely assembling cars locally. Their modus operandi is simple: Rather than implementing the auto policy, the phoney local vehicle manufacturers and assemblers allegedly go abroad to purchase fully built cars, pay an extra cost to partially dismember these cars and then ship them into the country as knocked down components of the cars for assembly in-country.

    A reliable industry source, who spoke to The Nation after extracting a commitment not to be named, said the unscrupulous vehicle manufacturers have found a way of hiding their activities under the immunity provided by the Federal Government for genuine companies that are effectively implementing the policy. The source,  a member of a group in the auto industry, lamented that the manufacturers are reaping the country off in the process. “The government is losing billions of naira for nothing. These people are actually not assembling cars in Nigeria,” he said.

    According to him, setting up an actual assembly plant requires enormous investments, which some of the manufacturers are not prepared to commit themselves to. “What do you think they are doing? Try to enter their so-called assembly plants, you will see that they will not allow you because what they are doing is go abroad, buy fully built cars, take off the side mirrors, the bumper, head and rear lights and so on. They ship these parts into the country, avoid paying any tariffs, then couple these removed parts at their so-called assembly plants, sell to Nigerians and smile to the bank,” the source said.

    Continuing, he said the international partners of the affected manufacturers have even refused to sell completely knocked down (CKD) parts to them for fear that they may compromise the standards of their cars, a development that would rub off negatively on the image of their brands.

    According to him, the businessmen are merely denying Nigeria of tariff revenue that should have accrued to government. It also means that government hope of riding on the strength of the policy to create jobs locally may not be realised.

    Asked whether this is not just a phase in the process of getting these companies to eventually begin to assemble actual CKDs in Nigeria, the source said it was nothing but another way of depleting the country’s badly-needed revenue for individual benefit.

    The quest to make profits at the detriment of government, he said, was why so many companies and groups applied for licences to become auto manufacturers. The avalanche of applications, at a point, forced government to stop accepting applications.

     Experts in the auto industry said to run a profitable vehicle assembly plant, there had to be a given number of cars to be produced and sold annually. But with several companies claiming to be assembling cars locally, there was no way each of them could achieve that threshold production and remain sustainable.