The Nation Newspaper

Tag: Prospects

  • Elections, personalities and prospects

    It  is  my  guess  that  the  gubernatorial and State Assembly elections  today  will  certainly show  how  Nigerians perceive the democracy they are participating in for  the 2019  presidential  and general  elections. If  the turn  out  is better  than  that of  the recent  2019  presidential  elections,  then  it shows  confidence in the  electoral  process  as well  as confidence in INEC.  If  the turn  out is poor then  it  is  a sign  not  only  of voter  fatigue,  but  of voter  apathy. Which  then  means something needs to be done to resuscitate voter  participation  to  sustain confidence in our  electoral  system  and revitalize our  democracy.

    Undoubtedly this time around it is not a two horse race as we saw in the presidential election.  Each  state    has  its unique amalgam  of  parties and  candidates being pushed  by incumbent governors, either    outgoing  or  seeking reelection  and  Federal legislators, both just  elected as  well  as those just  defeated, who  are  on the field,  in the state  capitals  rooting  for their political  parties  in the battle to take over  the state  houses and assemblies  in the 36  states  in Nigeria  today.

    In  many ways,  today’s  guber  and state assembly  elections will have  hangovers  and carry  overs  from the presidential  campaign and these  are  not  necessarily  that straight  forward    or    flowing normally, from  the performance the two major  parties  in the presidential  elections.  In  political  terms the political equations    may  not  be the same. Meaning 2  plus 2  may  be 5 as  in Synergy  and not  necessarily  4  as in Arithmetic. That  can be illustrated by the fact  that in states  where  the APC lost  the presidential  elections  party  stalwarts still  celebrated  the overall    victory  of  the president after  the elections massively.  In  today’s  election  there  are former  governors  who  have secured senate  seats in the last  elections and there  are  those who have lost.  Both  will  be very  active in todays’ election. A good example  will  be the Governor  of  Ogun state  who  has a senate  seat  in hand and that  of  Oyo  State  who  failed to secure a senate  seat. Both  will  be active in seeing  who  will  succeed them. Rivers  too  provide a unique  example where  the  ruling party  has  no candidate but  has of late  adopted  that  of  another party  in  what  is a do or  die  matter  for  the incumbent governor  and the Minister  of  Transport.

    In  a way  I expect  the turn  out  today    to be far  more  than that  of the presidential elections  because  of  the many  local or state political  squabbles involving  party  leaders  in the state  houses and  the  broken loyalties  of  incumbent  governors  to their  many  successors  in the state  capitals. Anyway  the die is cast  and today  the battle fields  are  the polling booths all  over Nigeria. The Games  have begun.

    Whilst  I  pray  for another peaceful  election  I  want  to highlight  the electoral  battles in some  states  because  of  some unique  and unusual  events  that  preceded  the emergence  of  the governorship  contestants in today’s  elections.  These  states are Kano, Rivers,  Lagos, Ogun,  and  Oyo  States.  The happenings  in these  states  reflect    the nature  and structure of power  acquisition and  distribution    in  Nigeria,  as  well  as its  challenges  and dynamics  in our peculiar  brand of participatory  democracy. I  will  use  the issues involved  to hazard  a guess  on the prospects  of the guber candidates  as well as their  parties  in today’s  elections.

    In  Kano,  a  regular  high  voter  turn- out state in Nigeria, it is  not  only  a straight  fight between  the APC  and PDP  but a proxy fight  between former  governor Kwankwanso  and his  successor Ganduje, who  is the incumbent  governor. But  Kwanwanso  has defected to the PDP  from  the APC  after  a brilliant  two  term tenure  after  which  he handed  power  to his trusted Deputy Governor.  But  now things  have changed since the days of the Kwakansiyya  and  the incumbent  governor  is ascendant  in Kano politics as the massive turn  out to elect  the president last  week has shown  in Kano. It  promises  to  be  a tough fight  today  in Kano  but  expect  the power of incumbency  to favor  APC  and  its candidates  a lot  in  Kano’s  volatile  politics  which  has changed  a lot  since  the  days  of  Aminu  Kano  and  the irrepressible  Abubakar  Rimi  of the  PRP  fame.

    In  Rivers  state  the stakes  are  high  but  again  the  APC  by proxy  and  PDP  are  locked  in a fierce battle  that  makes the prospect  of a peaceful  election quite  dim.  The security  forces must  be at their  best  and be prepared  to  be fair  and even handed  or else there  will  be great  violence.  That  is the bitter  truth.  This  is because  this is a stage  today  for  a fierce  show  of  power  between  federal  might  and state power  or incumbency  and  really  it is anybody’s  guess  as to  who  the winner  or  the loser  will  be. Really  it  is  going  to  be a close call  between  the  APC  by  proxy  and the PDP in  today’s guber  elections in  Rivers state.

    In  Lagos  state the  APC has  been  the party in power  for  long and the  obvious  party  of  choice  for  the  Lagos  electorate. But  today  is not  a straight  fight  between  the two  major parties namely APC  and PDP,  although  their  two  candidates Jide Sanwo Olu (APC) and Jimi  Agbaje    are  the best  known. There  are other  fringe parties    populated  by  defectors from    both APC and    PDP.  However. Sanwo  Olu  is  a time tested technocrat  who could or should  have been  governor  ages ago,  going by the brilliance  and dexterity  which  he outlined his  THEME  agenda  at the interactive section with members of the Yoruba  Tennis Club  last week. He  was  given  a challenge  by a member  of the Club, Ladi Kotun who  asked him what he would  do  for Lagos  Island  given  the fact that  the last  two Lagos governors catered  for  their  core areas  namely  BRF  for Suru  Lere  and Ambode  for  Epe. That  is  a core problem in this  election    and it  bothers    Lagosians immensely. It    is a problem  that  is  there  for  Jimi  Agbaje of the PDP to  exploit. Also  given  the fact  that an  Igbo  was  the running mate  of the loser in last week’s  presidential  election  has meant  that the Igbos  are  rooting for  Agbaje,  who  too is well known  having  contested twice  for  governorship  elections in the state  unsuccessfully  before.  The  issue  of  the rejection of incumbent  governor  Ambode for  a second term is another  grouse of some APC  supporters  and even  non partisan  residents of  the state.

    So  it is understandable  that  Sanwo  Olu  himself  at the YTC event  called  on voters  to  come  and vote today  and not  take victory  for granted. It  is a wise  call and the major  insurance for  his  election  today  given  the  rumblings  going  on in some quarters to  do  an  Otedola  for  the APC in  today’s election and  give Agbaje  a  very  rare  opportunity  to  govern Lagos  state. All  the same I  expect  the APC  to  weather  the storm  and    lead    its well  groomed    and  grounded candidate    to  a vote  that will  to allow  the  electorate  to reap  the benefit  of continuity in power  of  the APC  leadership in the state.

    Ogun  state  is a very  unique  battle  ground  today. Governor Amosun  is a lesson  in  party  defiance but  a successful  one  so far. He  has defied  his party in  campaigning for  a governorship candidate  from another party.  He  won a senate  seat  himself  and for his party. For  Amosun  you can  say a bird in hand is worth  two in the bush.

    Which  is not something you  can  say  to the Oyo State  governor  who  lost  his senate  seat  and the presidential election  for the APC.  If  Amosun’s  candidate  wins  today  and defeats  the APC  candidate  and others, then  you can  call  Amosun the Jagaba of Ogun  politics  and  a real  rival  to  the original Jagaba  of  the  South west  based  in  Lagos.  If  his  candidate loses then  the  APC  must  celebrate  a famous  victory  and  task Amosun  for  rebellion but  must  be cautious  to  apply  justice with  mercy in  dealing with  a powerful  rebel. As  for the Governor of Oyo  who  lost his  senate  bid,  Biola  Ajimobi, he should  know  now  that the Ibadans  cherish  their  traditional  line of succession  mightily  and do  not forgive  any  governor  who tampers  with  it. The  governor  should leave them  in  Ibadan  with their  Mapo  politics  and like an  old friend of  mine that  he is, just come back  to  Lago. Once  again  long  live  the  Federal Republic  of  Nigeria.

  • Herdsmen: Prospects amid governance failures

    The ongoing carnage and destruction of valuable properties in various parts of Nigeria occasioned by unending attacks unleashed by suspected herdsmen on innocent citizens calls for a more robust approach to governance in the country. Although the conflict between crop farmers and herdsmen in Nigeria which started largely due to dwindling natural resources is not new, it was however allowed to persist and fester by the indolence, indifference, and negligence on the part of successive governments, and made even worse by the present administration. It was reported that between 2013 and the end of January, about 2000 lives were lost in farmers/herdsmen clashes in Benue State alone. According to reports by Amnesty International, 549 people were killed across 14 states of Nigeria in 2017, while in the month of January alone, about 168 were killed. In all these, thousands sustained various degrees of injury, some have been maimed for life, tens of thousands have been displaced, properties worth billions of naira have been lost, and livelihoods and economies disrupted. The enormity of these losses can better be imagined than quantified or described. Even more worrisome is the fact that not only have the killings continued unabated, but we now have a largely polarised citizenry and a full blown security problem of crises proportions in our hands which is capable of threatening our very existence as a nation.

    At the heart of the matter is a combination of mediocre management of governance issues on one hand, and the unwillingness on the part of a group in the society to embrace progressive and innovative change on the other. Statements credited to officials of Miyetti Allah Cattle Breeders Association of Nigeria, (whose membership is predominantly Fulani) following the new year killings in Benue State clearly betrayed the driving force behind the genocidal aggression of the herders in various parts of the country as business and cultural interest. The national president of the group, Alhaji Bello Abdulahi Badejo, was reported in several leading national dailies to have blamed the killings in Benue State on the state’s anti-open grazing law which, according to him “…is clearly against the cultural interest and business nature of a Fulani man…who is more concerned about the survival of his cattle.” He was further quoted to have said that: “A Fulani man will always want to be on the move, to look for greener pastures and water for his animals anywhere and everywhere, as guaranteed by the constitution. But when you look at the law in Benue, it is clearly dissonant to our interest and survival as Fulani people…”

    No doubt, this is the crux of the matter; a feeling of insecurity.

    Much as I sympathise with the group on their fears of threat to the survival of their people, it may be useful to caution here that resorting to killing, maiming, and destruction of farms and properties belonging to others and expecting them to be cowed to submission is hardly a reasonable and acceptable way to survive in the 21st century. People ought not to allow their insecurities to get the better of them. More worrisome is the fact that in the face of the continued killings, officials of Miyetti Allah have neither shown sympathy for the dead and their families, nor remorse for the heinous crimes committed by people who are obviously pursuing the interests of their organisation. Rather, they are reported to be dishing out threats and conditions and insisting that those conditions must be met if peace is to return to the land. These include the repeal of the Benue anti-open grazing law, and the provision of or restoration of grazing routes. The threat was extended to neighbouring Taraba State where similar legislation was passed.

    Given the challenges thrown up by population growth, ever increasing demand for land for various developmental purposes, environmental and land degradation, as well as climate change, nomadic method of livestock farming is neither sustainable nor practicable in present day Nigeria. It is therefore time for our Fulani brothers to be persuaded to embrace change and adopt new and modern methods of livestock farming. Culture is not static but rather dynamic, and evolves as changing times and civilisations demand.

    Understandably, change can be quite challenging for most human beings, but we must note that it is inevitable. Writers have identified two types of change. The first is the expected change which is usually the type we planned for and have had time to think about and prepare for. And the second is the unexpected change which is the type usually forced upon us by events, circumstances or natural phenomena. The unexpected natural change is a part of life because no condition is permanent and nothing in this material world lasts forever.

    In its handling of the current herdsmen imbroglio, the present administration at the centre has often been contradictory, wobbling and muddling, and has failed to demonstrate creativity, resourcefulness, and leadership in its approach. In early 2016, Audu Ogbeh, the Minister of Agriculture announced the intention of the federal government to import grass from Brazil as part of its efforts to improve the business of cattle production in the country, even while there was still a raging controversy over the “grazing reserve” bill at the National Assembly.  While that episode lasted, the minister flirted with the idea of keeping animals in paddocks and feedlots. His objective was to replace nomadic cattle rearing with modern intensive system of keeping livestock, having acknowledged the fact that cattle bred by nomadic method do not grow and perform optimally. In this respect, Ogbeh was spot on (though not with grass importation). With appropriate legislations and policy actions, this would have kept herdsmen and their cattle away from other people’s crop farms and private properties, which is the major trigger in the violent conflicts.

    In my opinion the challenge before us may appear daunting but it is not all gloom. Rather, it presents us a window of enormous opportunities to launch into greater heights in an agricultural subsector that has been largely ignored for too long. There are huge business opportunities inherent in the grazing livestock value chain which we have so far failed to tap into because we have not been able to embrace modernisation in cattle rearing. These range from commercial growing of pastures, production of various feeds (fodder), to numerous other opportunities that exist not only in the production, processing and marketing of beef and beef products, but also in the larger, more viable and lucrative area of dairy products such as milk, yoghurt, butter, cheese, etc. We can only optimally avail ourselves of the opportunities if we outlaw roaming of grazing animals and breed them in confined environments.

    Against this background, what is required is an entrepreneurial model which encourages crop farmers to go into the commercial cultivation of forage crops which are known to be highly nutritious and adapted to different climatic conditions, including hot and arid conditions. In other words, growing grass and legumes for sale to livestock farmers can be made to become a profitable business. This strategy will not only provide high quality food for our grazing animals, but also help to beat back the advancing desert as well as rebuild and restore waste lands, thus making them fruitful fields again. Several varieties of nutritious grasses and legumes which are tolerant to drought are now being successfully grown in parts of Africa and have gained popularity in recent times. They include alfalfa, brachiaria, foxtail, and several others. Alfalfa for example, often referred to as “the queen of forage” is a perennial legume that is high in minerals, vitamins, and protein, and can be harvested every 35 days. It is one of the most nutritious crops that can be utilized in any forage.

    Going forward, government and security agencies must first demonstrate willingness and capacity to arrest the gradual drift into anarchy, apprehend the rampaging killers and bring them to justice. At the same time, deliberate and concerted efforts should be made to calm frayed nerves and allay the fears of all concerned parties especially crop farming communities and cattle farmers. Government policies and actions must be seen to be just and fair to all, and must be of the greatest benefit to the greatest number of citizens, so as to build friendship and goodwill amongst groups.

    Then the federal government must synergise with various state governments to formulate and implement relevant legislations and policies that will effectively insulate crop farms from grazing animals by confining the latter in suitable locations where they can be properly fed and receive adequate care and veterinary services. Also, the governments should deploy livestock extension services to the cattle farmers and train herders on modern livestock farming methods. Furthermore government must be prepared to invest massively in irrigation projects or alternatively, create the enabling environment for the private sector to do so profitably, particularly in the northern parts of the country. Lastly it may be pertinent here to emphasise the need for the federal and state governments to collaboratively fashion out a more robust approach to land use management in the country.

     

    • Igunbor, writes from Watford, United Kingdom.

  • Prospects of China-Africa cooperation in 2018

    This would be the third year, since after the historic second summit of the heads of state and government of the Forum on China-Africa cooperation (FOCAC), which held in Johannesburg, South Africa in 2015. At the summit, Chinese leader, President Xi Jinping outlined 10 cooperation plans which would essentially drive the China-Africa cooperation in the three year period before the next FOCAC ministerial meeting which holds this year. Identifying infrastructure, industrialization and agricultural modernization among other 10 as the main focus of China’s support for Africa in the three-year period, President Xi Jinping provided a funding support of USD60 billion. Since that historic summit, most of the funding have been disbursed and key infrastructure projects, industrial parks and free trade zones, with quantum leap in agricultural modernization have been accomplished in different parts of Africa. However, the good news is that steady momentum of the Sino-Africa cooperation would experience a quantum leap as China positions more strategically as a major power to assume more responsibilities on the global scene.

    With the successful convocation and conclusion of the 19th National Congress of the Communist Party of China last October, China’s national development has transited to a new era, with implications for China’s broad and deeper involvement in world affairs and China-Africa cooperation gaining more momentum.

    Summing the experience of China’s national development and the wider global outlook since the 18th national congress of the party in 2012, a resolution of the 19th national congress of the party on the report of the 18th Central Committee, held that “on the basis of an analysis of the developments in the international and domestic environments and a review of the party’s work and the historic change over the past five years, the congress forms the major political judgment that socialism with Chinese characteristics has entered a new era.” The congress further elaborates on the party’s historic mission in the new era and establishes the historical position of Xi Jinping Thought on Socialism with Chinese characteristics for a new era.”

    These conclusions of the epochal 19th national congress of the CPC was not lightly arrived and not the largely vacuous rhetoric of any political gathering. They derived from thorough going and scientific interrogation of China’s and international realities at a key historic juncture and the outcome is the strategic framework and road-map that would guide the work and activities of the government and party in the next five years. The discerning feature of China’s global engagement would certainly be guided by her dutiful commitment to build a community with a shared future for mankind. The practical framework of China’s bold vision to build a community with shared future for mankind has already been outlined in the Belt and Road strategy of international cooperation, which has entered crucial stage of execution and implementation.

    Africa and Nigeria in particular is strategically placed to integrate to the thorough-going process of global connectivity through overland, maritime and digital infrastructures, which are the defining and dynamic paradigm of the Belt and Road international cooperation. The Belt and Road international cooperation is underpinned by real actions and concrete projects that have produced over 270 specific results under 76 broad categories across five key areas. According to Chinese foreign minister, Mr. Wang Yi, “the Belt and Road has become the most popular international public goods in today’s world. Its success lies in the fact that by focus on the dual deficits in development and governance and the dual challenges of anaemic global cooperation and lack of drive in global cooperation, the Belt and Road initiative has responded to the shared desire for accelerated development, and sought to pool the economic factors and developmental resources form wider areas following an approach of pursuing shared benefits through consultation and collaboration.”

    In a recent exchange of congratulatory messages with South Africa’s president, Jacob Zuma on the 20th anniversary of the establishment of diplomatic relation between China South Africa, Chinese leader, President Xi Jinping said that the two countries have achieved tremendous success in their bilateral cooperation. He further noted that the Forum on China-Africa Cooperation (FOCAC) which the two countries co-chaired its historic summit in 2015 have left indelible mark in the annals of cooperation between two sides. According to President Xi Jinping, the 2018 summit of FOCAC would hold in Beijing, China, this year in September. The Beijing venue of this year’s FOCAC summit is in line with president Zuma’s suggestion and meets the aspiration of other African leaders.

    Also speaking at a symposium on international developments and China’s diplomacy in 2017 in Beijing last December, Foreign Minister Wang Yi said that “Another significant event on China’s diplomatic agenda for 2018, will be hosting the Forum on China-Africa cooperation.”

    According to him, the forum will discuss plans for future development with our African brothers and sisters and roll out new cooperation measures and explore new growth areas, to lift our cooperation to a new level. In particular to meet the aspirations of African countries, we will work to further synergize the Belt and Road initiative with Agenda 2063, making the Belt and Road cooperation a new, strong driver for China-Africa all-dimensional cooperation.”

    The dynamism of the Belt and Road international cooperation initiative, when mainstreamed to the existing mechanism of China-Africa cooperation, especially the multilateral framework of the Forum on China-Africa cooperation (FOCAC), would produce a profound insight to the new era of China-Africa relation which can be glimpsed with considerable degree of sure-footedness. The decisive impact of the 10 cooperation plans outlined by President Xi Jinping in 2015 at the second summit of FOCAC has transformed the state of infrastructure in Africa in the past three years and 2018, marking the start of new cooperation arrangements to be blended to the momentum of the Belt and Road international cooperation strategy, would certainly turn into a major game-changer in addressing Africa’s infrastructure’s deficits.

    At his new year address to Nigerians, President Muhammadu Buhari outlined a framework of strategic infrastructure networks to aid Nigeria’s economic recovery and drive the process of sustainable and inclusive economic development. The road and rail networks that he identified across the country, including key power infrastructure would in his own words, “spearhead the recovery and lead millions back to employment.”  Among the key power infrastructure projects, he mentioned the “landmark project, which Mambilla Hydroelectric power project, which has been on the drawing board for 40 years but now the engineering, procurement and construction contract for 3,050 MW project has been agreed with a Chinese joint venture company with a financing commitment from the government of China, with completion targeted for 2023.”

    Identifying key and strategic infrastructures, the decisive instrument to put Nigeria’s economy on the path of sustainable development is very important and to identify and locate the critical international support for it, is even more urgent and compelling. The China’s initiated Belt and Road international cooperation strategy is well placed to support the challenge of filling Nigeria’s infrastructure deficit. The Chinese ambassador to Nigeria, Dr Zhou Pingian has in several fora and platforms reiterated the commitment of his country to support Nigeria in building the requisite capacity for sustainable and inclusive development.

    Nigeria should properly hedge its bet to the global public good of the Belt and Road process; integrate it to her national agenda to overcome her infrastructure deficit, using its open, consultative and collaborative mechanisms to advance her economic reconfiguration and stable growth.

    China-Africa cooperation, especially in 2018, promises major and strategic inputs to Africa’s efforts to overcome the structural gridlock of infrastructure deficit in key areas of transport networks, energy, industry and agricultural modernization that would create and facilitate the enabling environment to drive an sustainable and inclusive development.

     

    • Onunaiju is of Centre for China Studies, Utako, Abuja.
  • Real sector: Brighter prospects after a turbulent year

    Real sector: Brighter prospects after a turbulent year

    The outgoing year was challenging for operators and stakeholders in the real sector, which comprises manufacturing and agriculture. The harsh operating environment caused by the dearth of infrastructure and faulty fiscal and monetary policies literarily forced the sector on its knees. The good news, however, is that some strategic policy responses by the Federal Government have set the stage for the sector’s dramatic turnaround in the coming year. Assistant Editor CHIKODI OKEREOCHA evaluates the critical events that shaped the sector this year and some of the signals that a new dawn is in the offing.

    The outgoing year is a mixed bag of blessings for the real sector. It will probably go down as the most challenging year for the real sector, which comprises manufacturing and agriculture.

    The sector was, perhaps, worst hit by the crisis triggered by the economy’s relapse into a debilitating recession following the crash in oil prices at the international market. For instance, the result of declining Foreign Exchange (forex) inflow caused by the sharp drop in oil prices and the activities of militants in the Niger Delta region was devastating.

    For one, many real sector operators, especially manufacturers, were unable to source forex to import critical raw materials that were not available. Consequently, manufacturing capacities stagnated. Many manufacturers recorded huge financial losses. Those who could not weather the storm were either forced to shut or relocate to neighbouring West African countries. Those who managed to remain afloat trimmed their workforce; others slashed their workers’pay as part of a cost-cutting measure.

    Manufacturers were also faced with high-lending rate, high cost of power generation and declining household consumption. Inflation and interest rates rose to as high as 18.3 per cent and 14 per cent.  The exchange rate of the naira to the dollar was no less disturbing. At some point, it stood at N310/$1 at the official market and N475/$1 at the parallel market. At such exchange rate, it was almost impossible for manufacturers to sustain production, as inventory of raw materials dried up without sustainable means of sourcing forex for replenishment.

    That was not all. The year, like the previous ones, was also signposted by the government’s policy inconsistencies, lack of supportive infrastructure particularly electricity supply and efficient road and rail networks, among others. While the lack of stable electricity supply hampered the growth of the Small and Medium Enterprises (SMEs), which further exacerbated the troubles of the manufacturing sector, the sudden scarcity and high cost of petroleum products towards the end of the year added to the sector’s litany of woes.

    Expectedly, these challenges undermined the sector’s capacity to grow and contribute significantly to the nation’s Gross Domestic Product (GDP); particularly for the manufacturing sector,  widely acknowledged as the engine of growth, wealth creation and sustainable platform for employment and development, it was a serious blow on the Federal Government’s economic diversification agenda.

     

    A new dawn beckons

    Although 2017 was challenging for most real sector operators, it was also perhaps, the most promising year. Indications to this emerged in the second quarter when the economy exited its worst recession in history, recording a positive growth rate of 0.5 per cent year-on-year (y/y). The recovery was in part due to a sharp recovery in the oil sector, driven by an improvement in oil prices and production volumes.

    In addition, the non-oil sector recorded a positive growth for the second consecutive quarter, spurred by ongoing recovery in the manufacturing sector due to improved Foreign Exchange (FX) liquidity. Asides the improvement in real GDP, the performance across several other macro-indicators suggest that the economy was on track for a broad-based recovery.

    Apart from recording positive growth in first quarter of last year, hitting 1.36 per cent, against -2.54 per cent it recorded in fourth quarter of the year, the manufacturing sector’s capacity utilisation also significantly increased. Describing this as “heart-warming,” Manufacturers Association of Nigeria (MAN) President Dr. Frank Udemba Jacobs attributed the growth recovery to better policy adjustments, particularly in forex management.

    Jacobs added that this was followed by MAN’s various meetings and presentations to the Federal Government. He, however, noted that in line with the recovery momentum in the manufacturing sector, there was the need for more credible measures that would help sustain and strengthen the sector’s recovery. He expressed optimism that the government’s policies and guidelines aimed at addressing the challenges facing manufacturers will improve the operating environment in due course.

     

    ‘Executive Order’ to the rescue

    One of the policies Jacobs referred to was the signing of three executive orders by Vice President Yemi Osinbajo aimed at compelling a systemic change in the way businesses are conducted, thereby eliminating the hurdles in the way of a bigger and more productive private sector.

    The executive orders, signed at the State House, Abuja, sought to facilitate the ease of doing business in the country to save time and cost, promote transparency and efficiency in the business environment as well as promote Made-in-Nigeria products and services by supporting local contents in public procurement by the Federal Government.

    It also sought to enthrone a regime of timely submission of yearly budgetary estimates by all statutory and non-statutory agencies, including companies owned by the Federal Government. The objective of the initiative was to stimulate a rebound of an economy severely battered by recession and also fast-track Nigeria’s transition to a non-oil economy.

    The stipulation of sanctions and punitive measures meant to address violations of the executive orders was seen by some private sector operators as indication that a new dawn is, perhaps, in the offing. This is so, particularly, for manufacturers many of who believe that the aspect that encourages the ‘Made-in-Nigeria’ or ‘Buy Nigeria campaign’ by supporting local contents in public procurement by the Federal Government was necessary to revitalise the sector and boost its competitiveness.

    Under the new order, at least 40 per cent of government procurement spending will be on made-in-Nigeria goods and services. As the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, explained, all Ministries, Departments or Agencies (MDAs) shall give preference to local manufacturers of goods and services in their procurements.

    The immediate past president of Lagos Chamber of Commerce & Industry (LCCI), Mrs. Nike Akande, said that the three main pillars of the executive orders have been key focus areas of LCCI’s advocacy campaign over the last few years. She expressed optimism that the executive orders will impact the ease of doing business, fast-track budgetary administration as well as promote made in Nigeria products.

    She, therefore, urged the government to ensure that stipulated timelines were adhered to by all the parties affected by the orders. She asked for continued consultations and engagement with the business community and the bureaucracy in building understanding and buy-in of all stakeholders.

     

    EGRP also

    Last April, the Federal Government launched the Economic Recovery and Growth Plan (ERGP) 2017-2020, which lists 24 programmes made up of 60 strategies and 369 key activities.

    The medium-term economic plan, which was launched by President Buhari, charts a course for the  economy over the next four years (2017–2020).

    The vision of the ERGP was to restore growth, invest in Nigerians, and to build a globally competitive economy. The plan aims to achieve these by focusing on five execution priorities namely, stabilising the macroeconomic environment and achieving agriculture and food security.

    Others are ensuring energy efficiency (especially in power and petroleum products), improving transportation infrastructure and driving industrialisation primarily through SMEs.

    The ERGP will return Nigeria’s economy to sustainable, inclusive and diversified growth, and to transform Nigeria from an import-dependent to a producing economy; a country that grows what it eats and consumes what it produces.

     

    Alignment of monetary, fiscal and trade policies

    The Federal Government also made progress with the alignment of monetary, fiscal and trade policies. For instance, the Central Bank of Nigeria (CBN’s) FX regime reforms led to increased stability in the FX market and increasing appetite for Nigerian stocks by foreign portfolio investors.

    Some of the reforms that gladdened the real sector operators included the creation in April 2017 of a new FX window for investors and exporters. The new window attracted $1.4 billion in its first four weeks of operation, according to CBN’s data.

    There was also the revision of the list of 41 items excluded from the CBN’s FX window, in line with the request from MAN as well as the introduction of a new, tariff-driven tomato policy to support domestic producers and production.

     

    Ease of Doing Business, MSME clinic, others

    The establishment of the Presidential Enabling Business Environment Council (PEBEC) also raised hopes of operators of a significant boost in the performance of the real sector.

    PEBEC’s mandate is to improve the Ease of Doing Business (EODB) in the country. As Jacobs stated, “The performance score card of PEBEC indicates that its seven points objectives set in line with the World Bank Indices of EODB have been achieved.”

    The MAN boss observed, for instance, that there has been visible improvement in the ease of company registration, which is now being facilitated through a web portal. Also, trade facilitation constraints have been removed. He also noted the implementation of some aspects of the single windows ports operations, among others.

    He, however, said MAN will continue to encourage investors to take advantage of these initiatives while imploring government to extend the improvements to other areas that affect the Ease of Doing Business not currently captured in PEBEC framework to improve Nigeria’s competitiveness.

    Other policy interventions that may have signalled a new dawn for the sector include the launch of the Micro, Small and Medium Enterprise (MSME) Clinic, the inauguration of the Nigerian Industrial Policy and Competitive Advisory Council, which has the mandate to drive Nigeria’s industrial agenda of which MAN is a strong member.

     

    Reduced interest rate for manufacturers

    The Federal Government as part of its commitment to supporting and encouraging local manufacturing industries, towards the end of the year, unveiled plans to begin the implementation of the reduction of interest rate for local manufacturers from the first quarter of next year.

    The move, the government said, was aimed at tackling the issue of rising interest rate in the sector. It also followed the inauguration of the National Industrial Policy and Competitive Advisory Council by Vice President Osinbajo for the purpose of devising and supervising policies that will speed up Nigeria’s industrialisation.

    The Minister of State for Industry, Trade and Investment, Hajia Aisha Abubakar, who made the plan known in Ota, Ogun State, said under the industrial council, sub-committees charged with tackle financing issues have made their presentations and interventions have been proposed that can be used to soften and ensure interest rates are reduced to encourage local industries.

    “Everybody is talking about the interest rate and that funds that are coming are not good for the industry; it doesn’t work that way. There is a plan that we are trying to unfold definitely to see what we can do quickly to speed up the industrialisation process. By first quarter of 2018, definitely there will be something put down to tackle the issue of financing, hopefully first quarter of next year for implementation,” she said.

    Heart-warming as these policies are for operators, the consensus is that their capacity to translate to a significant boost to the real sector will depend largely on the government’s political will and, of course, the collaboration of stakeholders.

  • Business overview: Prospects of events sector

    Business overview: Prospects of events sector

    A survey on the event industry took this writer to Remi Olowude Street in Lekki; nearby there is a multi-million naira edifice.  There are well-furnished suites similitudes of a 5-star hotel, marquees having central air conditioning systems, professional performance stage with concert lights installed, immense watts-driven sound system, and LED projection screens.

    This is not an hotel, it is an event centre. Records showed that the facility, known as Glitz Event Centre, hosted 1,612 hours of events and about 90,500 guests within its first year of existence, from October 2016 to October 2017. This is the events and meetings (E&M) sector and these numbers mean millions of naira annually.

    Glitters and Owanbe, as we have come to know the events business, is another industry that is showing prospects as much as agriculture does. However, the meetings and events industry is either under-reported or not at all. The industry provides jobs for over one million Nigerians within allied-businesses such as event planning, cakes and confectioneries, event photography and video coverage, food and beverage, event decorations, and make up.

    Omawumi Eyekpimi, a blogger with mrpepe.com, puts the estimated cost of an affordable wedding at N1,590,600. However, the cost of planning a wedding can go as high as N200 million depending on the number of guests, and expectations of the couple.

    “Charges are based on event type, number of hours, the day of the week, and other specifications of the client”, explained Adetola Juyitan, managing director of Glitz Event Centre.

    Averagely, it takes N5 million to put a wedding together in Lagos.

    Research agencies have always bundled the events and meetings (E&M) sector with hospitality and tourism and also with entertainment. This has not helped to track growth and recognise the immense potential of the booming informal sector.

    Besides hotels, the meetings and events sector boasts of $25 billion in terms of investment, according to an event booking site, ogavenue.com. This accounts for the thousands of event centres across the nation. Also not reported is the foray of the event centres into the core of hospitality – rooms for lodging guests after events. Most importantly, analysts have to evaluate the quota of events and meeting to the GDP.

    Experts estimated that about 20,000 events happen in Lagos annually. This comprises entertainment shows, corporate events, conferences, annual general meetings, religious meetings, weddings, and other forms of celebration in and out of the formal sector. The volume of events implies that the industry generates about N100 billion annually in Lagos only. This sector also needs to get the support of government and the banks. If properly invested in, it can employ a substantial number of our unemployed youths, and also drive the economy towards growth.

  • Electricity: Challenges and prospects

    With a population surpassing 170 million, Nigeria targets an ambitious 20,000MW of electricity generation by the year 2020 and to rank among the top 20 economies in the world. Nigeria’s current available generation capacity, estimated at approximately 6,000 MW, is inadequate to meet the unsuppressed demand estimated at approximately 15,000 MW.  According to World Bank Report, only about 55% of the population currently have access to electricity; and for that segment of the population, only 30% of its needs are currently met. Meeting the generation targets set for 2020 requires substantial private-sector investment in the supply chain, including gas to power infrastructure, generation, transmission and distribution networks. Most of these are now private-sector-operated (except the transmission system).

    Purpose of Privatisation

    The purpose of the privatisation was to ensure increased electricity supply in the country, through enabling and preservation of efficient industry and market structures, while also ensuring the optimal utilisation of resources for the provision of electricity services. The reform also sought the maximisation of access to electricity services, by promoting and facilitating consumer connections to distribution systems in both rural and urban areas.

    The reform, however, provided that the prices charged by licensees are fair to consumers and are sufficient to allow the licensees to finance their activities and to allow for reasonable earnings for efficient operation. The reform also made adequate considerations for safety of lives and equipment as well as protection of consumer rights.

    Concept of Electricity Pricing in Nigeria

    The privatization programme was premise on the provision of a cost reflective tariff – as relates to every business endeavour, having the right pricing is an essential requirement for success. Balancing between a cost reflective tariff and an affordable tariff is one of the biggest challenges facing the Nigeria Electricity Supply Industry (NESI).

    Multi Year Tariff Order (MYTO) is the methodology used to set wholesale and retail prices in the NESI. It is a unified way to determine total industry revenue requirement in a building block approach; total cost associated with generation – total cost associated with transmission – total cost associated with distribution as well as regulatory charges.

    Nigeria Electricity Regulatory Commission (NERC), being the regulator for the industry has the mandate to approve tariffs. In an effort to make electricity tariffs more affordable, NERC adopted sculpting of the tariff such that Discos are required to under-recover now (by charging less than the cost reflective tariff) and are allowed to recover in the future. This model, while bringing temporary ease on the retail tariff, comes with attendant challenge of how to manage the huge shortfall resulting from the sculpted tariff.

    The sculpted average tariff for Kaduna Electric in 2016 was N30/KWH while the actual cost reflective tariff was N48/KWH. This was approved based on economic indicators (inflation, exchange rate, gas prices) prevalent in 2015 and the resulting shortfall from the sculpted tariff in 2016 amounts to more than N25 Billion.

    The MYTO model also requires bi-annual review of these economic variables which has not been done since January 2016. By the time the exchange rate variable is adjusted in the model, the average cost reflective tariff for Kaduna Electric will be around N74/KWH.

    Cost-Reflectivity vs. Affordability

    The crucial role energy plays in the development of the economy cannot be over emphasised. Industries in this part of the country can only thrive with reliable and affordable access to electricity. While this is much desired by all, the current structure does not fully support the realisation of this objective.

    Charging a cost reflective tariff of more than N70/KWH at this period of economic recession is not only irrational but detrimental to the growth of the economy. Therefore, Kaduna Electric fully supports a fair and affordable tariff that will support growth and development within our franchise states. It is however important to note that as privately run company, decisions are guided based on its business case that does not jeopardise the interest of all major stakeholders.

    The government has the overall mandate and authority to steer the course of economic direction in this country and she has a critical role to play in ensuring that this balance is achieved.

    The Role of Government

    Government interventions are necessary to moderate prices and make electricity more reliable and accessible. Government intervention can come through a combination of all or some of the following; by subsidizing the price of gas to thermal power plants, bearing the burden of exchange rate shock on the retail tariff, taking up responsibility of tariff shock due to low generation capacity as a result of security issues, support the Gencos and Discos to access cheap finance through international, regional or local developmental initiatives among others.

    Conclusion

    A clear link has been established between electricity consumption and economic growth. With an annual population growth rate of around 3% and an unemployment rate of nearly 15%, Nigeria is in pressing need of boosting its productive activities to curb crime and reduce poverty levels.

    Manufacturing and other SMEs are the key drivers of economic growth, which is mainly challenged by reliable and affordable electricity supply.

    For the reform in the electricity sector to be achieved, all stakeholders – Discos, Gencos, Government, all categories of consumers – must holistically work, and in some cases make difficult sacrifice towards the success of the industry.

    As a Disco, we are committed to improving the quality and reliability of electricity supply within our franchise states. Significant investments have already been made in acquisition, studies, foundational ICT systems, working tools, metering, safety systems, replacement of existing systems, expansion of grid, maintenance of existing systems, working towards providing alternative payment channels through web, POS, ATMs, mobile etc. Further investments is being put in place to close the metering gap, have a robust Customer Relationship Management Systems, advanced Distribution or Operations Management Systems, as well as new infrastructure and grid expansion.

    Our customers across all categories – Industrial, Commercial, MDAs and residential – have a responsibility to behave ethically and pay their electricity bills regularly and timely to enable us meet our market obligation and serve our customers well.

    The government even has a bigger role to play in ensuring stability of the industry. The liquidity challenge currently faced must be addressed and issues currently affect the industry that are macroeconomic in nature such as FX risk, security challenge affecting generation capacity, impact of inflation must be owned and addressed by government to make electricity supply more affordable and reliable.

    The synergy amongst these different stakeholders is necessary for electricity sector to become the catalyst of economic growth in Nigeria.

     

    • Yusuf Hamisu Abubakar, OON, is Chairman, Kaduna Electricity Distribution Plc
  • Prospects in hybrid crops

    Prospects in hybrid crops

    The increasing revenue from hybrid crops, such as watermelon, is attracting young entrepreneurs to farming. DANIEL ESSIET reports.

    Jasper Chidera Ezirim is a graduate of economics. He had his career plan mapped out. After school, he went into international trade. Like many youngsters, he had little interest in farming. He wanted to go into a lucrative industry. In places like Owerri, the Imo State capital, where the population prefers trading, lack of suitable and affordable technologies and inadequate financial services for small-scale farmers lead to low agricultural productivity. This makes the sector unattractive to youngsters.

    Along the line, his business failed and he was jobless for some time. To keep himself busy, he decided to plant cucumber on a small piece of land around his house. The harvest within three months was amazing. He realised that profitable farming could be the answer to unemployment as it provides year-round income. Ezirim started his agribusiness formally in 2011. He is now growing watermelon and cucumber in Owerri.

    He earns up to N250,000 in three months from one acre of watermelon, as demand for the vegetable keeps rising. He also grows cucumber, which earns him between N150,000 and 250,000 in gross incomes  in three months. This is far higher than what other crops will fetch him. He is full of joy whenever he harvests his watermelon because his hybrid variety helps him to get more tonnes per acre. Besides, it is bigger and weighs heavily on scales.Today, he is a successful watermelon farmer and business owner. He chose farming over white-collar job, because he realised farmers could earn a good income. He is following in the footsteps of his parents, who were also farmers.

    From the returns he has recorded so far, cucumber is one crop every young farmer should cultivate to make more money, while avoiding competition with other vegetable dealers. This is because the demand for cucumber and watermelon is high in urban areas as Nigerians with health interest   believe the crops possess incredible nutritional benefits.

    Unlike other crops that are fortified with nutritional elements to boost the fight against malnutrition, cucumber and watermelon have a major advantage of containing many nutrients that it does not need to be fortified. This makes it a more cost-effective option, not to mention a healthier one.

    Experts said regular consumption of cucumber helps to keep the skin well-toned, regulates blood pressure and contributes to the proper structure of connective tissues in the body, including those in the muscles, bones, ligaments, cartilage, and tendons, while watermelon, described as one of the most powerful, body-healing fruit, has the  capability to boost immune support, speed wound healing and prevent cell damage.

    With these crops, he said a farm venture can produce over 300 per cent Return on Investment (RoI) annually. The major problem, according to him, is not doing it well, because one can use minimum input to get maximum output.

    He said that, from his experience, making millions as a farmer is easy and can be done in a short time, stressing that all that is needed is, at least, a hectare of land and any of the good vegetables.

    The Managing Director and Chief Executive of Fastlane Farms, Jerry Obamwonyi, is one of the young people who has joined the bandwagon. His farm is in Edo State.

    Before he embarked on watermelon farming, he surveyed growing areas. What he saw convinced him that the returns from the crop would be better. He said his earnings from the first yields of the crop were impressive. Today, he is happy to concentrate on the crop that has helped to transform his life. Obamwonyi said: “Watermelon agribusiness can be very lucrative within a short period of time. One can start off with as little as between N30,000 to N60,000 and be sure to make between N300,000  – N700,000 or more from an hectare.

    “Whoever wants to generate quick wealth from producing watermelon should try getting the knowledge or training from an experienced farmer who’s into the business.”

    He saw other farmers growing crops and did not understand why they don’t grow such crops. He has been able to produce watermelon without using any crude implement like cutlass or hoe, from planting to harvesting. He utilises chemicals even during weeding.

    It takes him approximately 70 to 90 days for planting and harvesting watermelon, depending on the viability of the hybrid seeds used.

    His common  watermelon varieties include sugar baby, sangria, jubilee and orangeglo and golden midget. They are available in most local agro-related shops nationwide. And the price depends on location. The price may have gone up with inflation. Generally, 500grs hybrid watermelon seeds for planting cost between M4,000 and N7,000. For him, the most critical part of the agribusiness is caring for watermelon. This involves getting rid of weeds with pesticides, insecticides and deploying fertiliser.

    This is vital since these things must be given at various developmental stages in the 70 to 90 days production cycle.

    He said the treatments, including fertilizers and insecticides, fungicides, and pesticides must be given not only to prevent or control pests and diseases but to also enhance foliar growth to boost production.

    The other young farmer making money from farming is Chief Executive, Natural Nutrient Limited, Adeniyi Sola Bunmi. Based in Ogun State, Adeniyi said the influx of young professionals into farming and agribusiness has begun to change a long-held view of agriculture as the nation’s most impoverished and antiquated sector. He is at the forefront of profitable farming systems, giving farmers the tools they need to thrive.

    He has established a business from Morin-ga and is making money processing its roots, leaves, seeds, oil, and flowers, after undergone training.

    After processing in his factory, the various products are supplied to buyers and distributors in and outside the country. He has a successful business supplying Moringa products.

    According to him, young farmers are now involved in the cultivation of vegetable crops, such as  tomato, chilli, onion,  cowpea, green peas and other leafy vegetables with increased yields.

    He highlighted the critical role of new plant varieties and high quality seeds in sustainable agriculture.

    According to him, research institutes are working on the development of better varieties/hybrids and technologies. The varieties, he  explained, are resistant to multiple diseases and pests, give higher yield and better quality produce suitable for long distance markets and for export.

    He said his organisation was promoting an initiative to steer young people towards agriculture with quick returns.

    Adeniji said agriculture and agro-industry were the nation’s fastest-growing sector. His goal is to change the perception among youths that farming is for the poor.

    Chief Executive, Agro Info Tech, Mr Oluwa Ayo Okediji, believes young people are not attracted to agriculture because there have not been many farming success stories.

    He said youths exploring opportunities in the agricultural sector face a number of challenges which include access to land, finance and markets.

    Okediji said although access to land is fundamental to starting a farm, it is difficult for young people to access land. To change the situation, he said the sector needed policies that encourage access to land, credit and finance for youths.

    This, according to him, may entice more youths to agriculture and contribute to the economy and food security.

  • Niger Delta: Challenges, prospects and future

    Niger Delta: Challenges, prospects and future

    The Federal Government in 2008 created the Federal Ministry of Niger Delta Affairs to coordinate its efforts aimed at promoting infrastructural development, environment protection and youth empowerment in the region.

    The oil-rich region historically comprises Bayelsa, Delta and Rivers and they largely occupy the mangrove creeks around the River Niger tributaries towards the Atlantic Ocean coast line.

    But in 2000, Abia, Akwa-Ibom, Cross River, Edo, Imo and Ondo State became part of the region that has been the centre of international controversy over pollution and underdevelopment.

    In the light of this, from the onset of the establishment of the ministry, the Federal Government has insisted that the ministry is responsible for direct response to the myriad of challenges in the region.

    Concerned citizens, therefore, suggest that the ministry should urgently work towards the delivery of a virile development plan as prescribed by the Niger Delta Master Plan.

    They note that although the master plan has been applauded since its scripting in 2006, previous administrations have not met the expectations of the people in the region.

    They observe that amorphous militant groups, including the Niger Delta Avengers, have sprung up, destroying oil facilities because of the feelings among the people that their expectations have not been met.

    They also note that dreadful cult groups are rampart among the youth, posing a great threat to the peace and development of the region.

    They maintain that although Amnesty Programme and disarmament process on the militants, particularly among the members of the Movement for the Emancipation of the Niger Delta are commendable, they failed to address challenges of lack of empowerment and socio-economic underdevelopment of the region.

    This development, perhaps, informs the recent decision of the Federal Government to inaugurate the clean-up of Ogoniland as a lead up to tangible development of the region.

    The government expresses concern that the militants are creating worse environmental health disasters by the rate they destroy oil facilities in the region.

    Apart from this, Minister of Niger Delta Affairs Usani Usani, has assured the people in the region that the present administration of President Muhammadu Buhari will create an enduring partnership for the socio-economic and industrial development of the region.

    The minister said the ministry had not and would not abandon any of its ongoing projects in the nine oil producing states of the Niger Delta.

    Receiving the community leaders of the nine oil producing states who paid a courtesy visit on him recently in Abuja, the minister said that the ministry was eager to fast-track the development of the region.

    The minister said: “previous efforts created monsters that were bigger than the communities; the new efforts will cut down these monsters and cause them to submit to their communities.

    “Previous efforts were characterised by corruption and bribery of government officials, the new approach will bring all stakeholders into a transparent commitment to the development of the Niger Delta region.

    “Previous efforts paid more attention to mega projects like roads and huge buildings which were celebrated but not fully implemented, the new approach will pay considerable attention to projects that will truly empower the people by training, skill acquisition and ethical reorientation.’’

    The minister has also said that there were plans of the ministry to send 100 Niger Delta youths to abroad for training in various skills.

    He also said that the ministry had entered into many training agreements with various European and United Kingdom training institutions to train the youths in strategic areas.

    According to him, such partnerships involve Ministry of Niger Delta with S.T Georges and Ministry of Youth and Sports to train Niger Delta youths on a programme tagged “Train and Engage.’’

    He said the trainees would be absorbed and constructively engaged in existing oil and gas industries as soon as they finished their training.

    The minister said the Local Content Office of the Africa House in UK, Africa Business Forum and the Ministry of Niger Delta had also entered into a collaboration to engage Niger Delta youths on a special programme along the NVQ model design.

    He said the NVQ model “is designed to train the youths in oil and gas based on industry need basis.’’

    He also warned that the era of getting paid for what had not been done had gone, insisting that “those who take up jobs as contractors must deliver quality jobs to justify the tax payers money paid for such jobs.

    “Contractors who appear to have abandoned their projects are advised to go back to site to complete them.

    “If they have found themselves incompetent to deliver, government should be made to know on time in order to re-award the contract to a more competent company.’’

    The minister urged the people of the region against complicating the current environmental challenge of the region by engaging in vandalism of oil and gas pipelines which cause oil spillage and pollution.

    “The government will compel oil spilling organisations to do the necessary clean-up because the government is on the side of the people to checking oil spillage.

    “Already the Federal Government has taken the lead in this direction as it has inaugurated the clean-up of Ogoni-land,’’ he said.

    In spite of all these, observers insist that the plans and goals for the development of the region can only be possible or feasible in an atmosphere of peace.

    They note that it is necessary for all parties to maintain peace and work together for the rapid development of the region.

    “We can achieve much more under an atmosphere of peace and tranquility than in an environment of confusion and chaos,’’ they insist.

    • Makanjuola is of the News Agency of Nigeria (NAN)

     

  • ‘Africa’s business prospects positive’

    PricewaterhouseCoopers (PwC) Africa Business Agenda for 2016 released on Tuesday in Kigali, Rwanda, showed that, in spite of Africa’s economic challenges, business prospects remained positive.

    This is contained in a statement issued by PwC. The statement said Africa’s Chief Executive Officers (CEOs) are leveraging on technology and innovations in order to stimulate growth in a challenging global business environment.

    It stated that: “the African Business Agenda compiles results from 260 CEOs and includes insights from business and public sector leaders from 18 African countries. “CEOs in Africa are scaling-up their efforts to innovate and find new ways to do business on the continent in a move to stimulate growth in a challenging and uncertain global business environment,” the statement said.

    The statement quoted PwC’s CEO Africa’s Hein Boegman as saying that “the global financial and economic crisis has revealed Africa’s vulnerability to a number of external economic shocks. Notwithstanding a multitude of challenges, many of which are cyclical, we remain confident that Africa’s prospects remain positive.”

    It said just over a quarter of CEOs in Africa believed that global growth would improve in the next 12 months.

    It said African CEOs were less optimistic about global prospects a year ago, with 66 per cent of CEOs (Global: 73 per cent) thinking the economy would not improve in the next 12 months, while 92 per cent (Global: 73 per cent) were extremely concerned about exchange rate volatility.

    “Africa is a complex and diverse continent requiring layers of insight. Growth in Africa is taking place in individual markets and geographic regions, within industry sectors and influenced by demographic changes.

    “Notwithstanding the difficulties and challenges that lie ahead, many organisations in Africa have learnt to adapt and be agile to respond and overcome many of these challenges in order to achieve their organisational goals,’’ the statement added.

  • 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.