The Nation Newspaper

Tag: sector

  • ‘Non-oil sector drives jobs, wealth’

    ‘Non-oil sector drives jobs, wealth’

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

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

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

    The ex – NEPC Director spoke in Abeokuta, the Ogun State capital, at a forum/exhibition of artisanal products organised by the Council’s Abeokuta office.

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

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

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

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

  • Private sector employers shun 18% pension contribution rate

    Private sector employers are not complying with the upward review of the pension contribution rate as stipulated by the Pension Reform Act, 2014, The Nation investigation has revealed.

    The Act reviewed upwards the minimum rate of pension contribution from 15 per cent to 18 per cent of monthly emolument.

    Following the review, eight per cent will be contributed by the employee, while 10 per cent would be borne by the employer.

    This is expected to provide additional benefits to workers’ Retirement Savings Accounts and thereby enhance their monthly pension benefits at retirement.

    The Act was signed into law by the President on 1 July 2014. The Act does not specify a commencement date. The Interpretation of the  Act provides that where no date of commencement is contained in an Act, the commencement day shall be the day the Act is passed or signed into law. Unless a commencement date is inserted before the Act is gazetted, the commencement date will be 1 July 2014.

    But while few have adjusted their company policies and effected the new rate, the majority of employers have refused to comply relying on the fact that the Act did not specify an effective date.

    Guaranty Trust Bank Spokesperson, Mrs Lola Odedina, while responding to whether or not the bank has implemented this section of the Act,  confirmed that the bank has started remitting its employees contribution based on the new rate.

    Managing Director, AIICO Pension Managers Limited, Eguarekhide Longe told The Nation that most employers from the private sector have not complied with the law.

    According to him, the employers are relying on the directive from their umbrella body, the Nigeria Employers’ Consultative Association’s (NECA) directive that they should not effect the law.

    He however, wondered if NECA has such powers to stop the implementation of the law.

    The AIICO boss said there is nothing they can do as pension fund administrators to make them comply.

    He said: “The employers are hiding under labour union and constitution saying compliance date was not clear. But compliance starts from the day the bill was assented to by the President, Goodluck Jonathan.

    “I believe the regulatory authority, the National Pension Commission (PenCom) will enforce the law and apply sanctions where necessary.

    PenCom Head Research and Corporate Strategy, Dr Farouk Aminu said the law cannot change or be delayed.

    The employers must obey the law because we are definitely going to effect the law.

    Aminu noted that the Commission will embark on sensitisation programme on the new Act in all the six-geopolitical zones in the country.

    He said the programme is starting from Lagos State on Thursday November 30 and will go round the other zones.

    He said that by the time, the commission is done with the programme, it will begin to enforce the law and sanction those who may continue to disregard it.

  • ASUU, others to restructure Education sector

    ASUU, others to restructure Education sector

    Stakeholders in the Education sector, led by the Academic Staff Union of Universities (ASUU), will today converge on Abuja to review the nation’s Education system at a National Education Summit.

    It was learnt that the summit is aimed at restructuring the education system.

    A statement at the weekend by the Chairman Planning Committee and former ASUU President Dr Dipo Fashina stated that the five-day  education summit (27th-31st October) will hold at the Conference Hall, Top Rank Hotel, Utako District, Abuja

    With the theme “Towards a System of Education for Liberation in Nigeria”, the summit is being put together by the Academic Staff Union of Universities (ASUU), National Association of Academic Technologists (NAAT), Non-Academic Staff Union of Educational and Associated Institutions (NASU), Senior Staff Association of Nigerian Universities (SSANU) in collaboration with Federal and State Ministries of Education and Civil Society Groups.

    The former ASUU chief said for the country to be a stakeholder in the global system, it must restructure its educational system to promote development.

    Fashina in the release stated Prof Biodun Jeyifo of Havard University will be the chairman of the occasion while Minister of Education, Alhaji Ibrahim Shekarau is the special guest of honour.

    Fashina disclosed that the Summit will review the educational system with a view to restructuring it to liberate Nigerians.

    According to the former ASUU leader, the educational system is one sided, promoting the interests of the world’s powers, who colonised Africa, making the need to develop an educational system, which can serve the interests of Nigerians a necessity.

    He said: “The four main unions in tertiary institutions are organising a national education summit, the purpose of which is to look for what will be a liberating educational system in the country.

  • IFC delivers support for private sector

    IFC delivers support for private sector

    IFC, a member of the World Bank Group, have provided billions of dollars of new financing and  investment mobilisation and delivered wide-ranging advisory services in sub-Saharan Africa during its most recent fiscal year.

    IFC’s activities impacted 1.1 million farmers, provided $17 billion of financing to entrepreneurs, delivered health services to a million patients and improved quality of education for 117,000 students.

    In coordination with other World Bank Group institutions, IFC’s work in sub Saharan Africa supported agriculture and power, job creation, health, education and capital markets.

    IFC made new investments in 31 countries in sub-Saharan Africa during its 2014 fiscal year, totaling $4.6 billion. In partnership with MIGA, IFC mobilised an additional $343 million of financing for the private sector.

    IFC provided more than $4.0 million in new investments in the continent’s lowest income economies. New IFC commitments provide $800 million to countries affected by recent conflicts, including Cote d’Ivoire, Democratic Republic of Congo and Mali.

    Drawing on support from the World Bank Group, African governments enacted over 70 reforms to improve business regulation. Examples of t The impact of these reforms includes private sector cost savings of $25.5m in Ethiopia, thanks to more efficient imports and exports clearing procedures, an additional $106million in investment by new businesses in Rwanda generating 29 000 jobs, and levelled taxation between men and women in Cote d’Ivoire.

    The World Bank Group also supported the modernisation of the Uniform Act on Companies, which led to more than 20 reforms of the investment climate among the 17 member- countries of the Organisation for the Harmonisation of Business Law in Africa (OHADA).

  • Dean seeks private sector-driven accommodation

    The Pro-chancellor and Chairman of Council of the Osun State University, Prof Gabriel Olawoyin (SAN) has expressed the need for the institution to make provision for campus accommodation through private sector participation.

    Prof Olawoyin made the remark while responding to the requests from the Dean of the Faculty of Education, Prof A.B. Alhassan, during the Governing Council’s visit to the faculty.

    Alhassan decried the low level of private sector partnership with the school, urging the management to explore strategies adopted by other institution to woo private investor to build hostels on the campus.

    He said university hostels was necessary for security of lives and conducive learning.

    The dean also called for the deployment of experienced lecturers to the faculty to handle relevant courses, saying it would help the university in its quest to produce world-class graduates.

    He charged the management to provide subject-based laboratories on the campus to aid effective teaching.

    In his response, Prof Olawoyin promised that the requests of the faculty would be considered.

    Olawoyin in company of council members also visited the palace of the Ajalaye of Ipetu Ijesa, Oba Adekunle Baderin.

  • Food, drink sector vital for jobs, says NCAN boss

    SOME 50,000 new jobs could be created by the food and drink industry yearly, the President, National Cashew Association of Nigeria (NCAN), MrTola Faseru has said.

    He said the food sector reflected a strong supply chain which is far more likely to retain jobs and investment spent in the wider economy.

    The agri-food sector has a substantial GNP-generating effect, retaining profits unlike other sectors where profits are repatriated abroad.

    As the nation goes through a painful re-adjustment as a consequence of dependence on one export product, Faseru said the agri and food sector has a huge ‘trickle-down’ effect, creating and supporting local jobs and services, both directly and indirectly.

    He said the food and drink sector was deeply embedded in the economy, which means that an increased focus on food will drive growth in the wider economy as well as in the sector itself.

    Highlighting the need for public policy to be aligned with the needs of the sector, he underlined the need for a sustainable supply of cost-competitive raw materials.

    He said the economy is entering an era where food demand and supply will become much more dynamic.

    According to him, population was set to increase, adding that this will be accompanied by significant urbanisation and growth in the consuming classes.

    Food consumption, he continued, would remain a huge issue and particularly there will be a demand to agro product over time. He saidprioritising and supporting this growth potential must be a priority for government.

    He said the food sector is a multi-faceted one that should be supported from from artisan producers to commercial farmers, from a dynamic evolving restaurant sector to scale processors for export.

  • Credit to private sector hits N15.6tr

    Credit to private sector hits N15.6tr

    Banking credit to the private sector stood at N15.6 trillion at the end of the second quarter, the Central Bank of Nigeria (CBN) has said.

    According to the CBN Economic Report, the figure represents an increase of 2.8 per cent from the first quarter performance.

    It attributed the development to the three per cent rise in claims on the core private sector. Relative to the level at end-December, 2012, banking systems credit to the private sector rose by 3.6 per cent.

    The report said foreign exchange (FOREX) inflow into the country in the second quarter of the year was $9.44 billion, the CBN has said.

    In its quarterly Economic Report, the CBN said forex sales to authorised dealers stood at $10.77 billion, compared to $4.65 billion in the preceding quarter, adding that the development reflected the fall in banks’ foreign assets, which suppressed the growth in their domestic credit and other assets.

    According to the report, the money in circulation is N1.42 trillion, indicating a drop by 5.6 per cent. It dropped by 7.6 per cent at the end of the preceding quarter. The development was attributed, to the 9.3 per cent decline in currency outside the banks.

    It said total deposits at the CBN amounted to N6.1 trillion, indicating a decline of 10.2 per cent, compared to the decline of 8.3 per cent at the end of the preceding quarter. The development reflected, the 24.6 and 21.9 per cent fall in deposits of banks and Federal Government, respectively.

    Also, the government’s total expenditure for the period was put at N1.2 trillion. The report said at fiscal operations of the Federal Government resulted in an estimated deficit of 4.8 per cent of estimated nominal Gross Domestic Product (GDP) for the review period, compared with the quarterly budget deficit of 3.1 per cent of estimated GDP.

    It said Nigeria’s crude oil production, including condensates and natural gas liquids, was estimated at an average of 1.93 million barrels per day (mbd), or 175.63 million barrels for the quarter. Crude oil export stood at 1.48 mbd, or 134.68 million barrels for the quarter, while deliveries to the refineries for domestic consumption remained at 0.45 mbd, or 40.95 million barrels.

    Also, the average price of Nigeria’s reference crude, the Bonny Light, fell by 8.8 per cent below the level in the preceding quarter. The average exchange rate of the naira against the dollar at the Wholesale Dutch Auction System (WDAS) window, remained unchanged at N157.30 per dollar, but appreciated marginally by 0.03 when compared with the level in the corresponding period of 2012.

    CBN data indicated mixed developments in banks’ deposit and lending rates. The spread between the weighted average term deposit and maximum lending rates widened by 1.34 per cent in the preceding quarter. Also, the margin between the average savings deposit and the maximum lending rates, also widened by 0.43 percentage point, while the weighted average inter-bank call rate rose by 0.34 percentage point in the second quarter of 2013, reflecting the liquidity condition in the inter-bank funds market.

    The report said provisional data indicated that the value of money market assets outstanding for the quarter, increased by 5.9 per cent, in contrast to the decline of 0.6 per cent at the end of the preceding quarter. The development was attributed, largely, to the 5.6 per cent rise in Federal Government of Nigeria Bonds outstanding.

     

  • ‘Laws to grow investment in power sector needed’

    ‘Laws to grow investment in power sector needed’

    An energy law expert, Ayodele Oni, has called for new laws to create more incentives for investment in the “power value chain.”

    He said Nigeria also needs a few new regulations on “renewable” and on other engineering standards, cabling, among others.

    Oni, who holds an LL.M in Energy Law from the University of Calgary, Canada, is a Senior Associate at Lagos law firm Banwo & Ighodalo.

    He spoke at the presentation of his new book on the power sector: Nigerian Electric Power Sector: Policy, Law, Negotiation Strategy, Business.

    He said the problem with the energy sector, and the power subsector in particular, is not the dearth of laws, but the lack of enough action to attract private sector investments.

    According to him, if a sector of any economy is not profitable, private sector participants would not invest; and if the structure is not bankable, financiers such as banks would not provide finance to would-be investors.

    So, the problem, he said, is not the inadequacy of laws, but the structure of the market, lack of bankability and poor pricing. Other issues, he added, include the insufficiency of gas which is the fuel used by most power plants in Nigeria.

    “It is, therefore, my view that the challenge has not got much to do with the adequacy or otherwise of legislation, but other practical issues.

    “Indeed, it is the case that the Nigerian Electricity Regulatory Commission has been proactive and has been very actively issuing crucial regulations. As such, there is really no issue of inadequacy of laws or statutory instruments.

    “At the moment, a committee is currently updating the engineering and equipment standards regulations made pursuant to the repealed NEPA Act and Electricity Act respectively,” Oni said.

    He believes it is unnecessary to undertake any comprehensive law reform in the power sector, as that had been done in 2005.

    “We already have regulations for the protection of consumers and the challenge is largely that of enforcement. Issues like disconnection of power (de-energisation) of consumers have regulations dealing with them. There is no doubt, however, that we need to strengthen those regulations. We do not need full scale laws a little bit,” Oni said.

    On how he thinks Nigeria’s perennial power problem be solved, Oni said the government needs the political will to do so, adding that the strategy of paying lip service to issues relating to electric power should stop.

    He said: “The government should continuously provide an enabling socio-economic environment to encourage private sector investments in the sector. Apart from that, the government has made promises to the core investors in the PHCN companies being privatised; it should keep its promises.

    “Furthermore, gas supply issues should be properly dealt with so that there is sufficient gas to fire the power plants. The government should work with the management contractors to develop a robust national grid that can wheel larger volumes of electric power whilst developing a super grid and smart grid solutions.

    “Finally, pricing issues should be continually reviewed and the right people should always be given the opportunity to be at the places of authority such as, at the NERC and the Ministry of Power so that the best decisions in terms of policy and regulation are taken. We should not allow such delicate positions to be occupied by people who are merely politicians,” Oni said.

    A partner at the Banwo & Ighodalo, Mr Asue Ighodalo, who unveiled the book, praised Oni for “doing something that is truly wonderful.” He said the book has “a lot of fathers” in public officials who laid the foundations for the power sector reform.

    “There was a major gap in this sector. Ayodele has bridged that gap with this book. He is a great lawyer and a great mind. He showed that the mathematical skills needed to be a lawyer is in him. His tenacity, focus, analytical capacity and understanding of the sector is unparalleled. Where he finds the time to write, I don’t know,” Ighodalo said.

    The reviewer, Dolapo Kukoyi, described the book as elaborate and well-researched.

    “The language is simple, clear and easy to understand. The reader can appreciate both the scientific and technical sides. I recommend it to anyone who wants to know what the power sector is all about. I think it is timely. Thank you Oni for taking that initiative,” Kukoyi said.

  • ‘New road map for sector coming’

    The Chairman, Pension Fund Operators Association of Nigeria (PENOP), Mr Dave Uduanu, said the group has reviewed the developments in the industry from inception and has charted a new road map for the sector.

    He said the regulator was taking all steps necessary to ensure that state governments key into the Contributory Pension Scheme, adding that PenCom released the guidelines so that state governments that want to access the pension fund by way of issuance of bonds would not only participate in the scheme, but be committed in remitting the monthly contributions of their workers to contributory pension scheme.

    For this reason, he said, the regulator had introduced more stringent requirements to ensure that the states would not stop contribute after accessing the fund.

    “What we try to do is to equate pension payment with salaries and, therefore, put in place a mechanism to ensure that at the end of every month, paying pension would no longer be discretionary.

    The idea, Uduanu added, was to make pension rank at par with salaries, noting that a greater percentage of the pension funds was allocated to the bond market, especially the Federal Government bonds.

    The Pension Fund Administrators, he added, were working with the government to find ways through instruments, mechanisms and the money market to expose the funds to the real sector.

     

     

    He said the PFAs were speaking with the regulator, the government and International Finance Corporations interested in growing the economy.

    According to him, the more the real sector grows, the more employment will be created and the more the pension business will grow.

  • Govt to support research on leather sector

    The Federal Government has pledged to continue to support activities on leather research and production in the country to enable the sector become one of the highest revenue earners for the country.

    The Minister of Science and Technology, Professor Ita Okon Bassey, made this known during the commissioning of some projects at the Nigerian Institute of Leather and Science Technology (NILEST), in Zaria.

    “The entire ministry of science and technology is aware of the efforts of NILEST in the area of manpower and infrastructural development and will continue to support these efforts until research and development in leather and leather products technology takes its rightful place so as to position it as one of the highest income generating sectors of the Nigerian economy,” Okon said.

    The Director General, NILEST, Dr Isuwa. Adamu, said the institute is capable of assisting the government in its efforts to fight unemployment through the teaching of necessary skills in footwear and leather goods production.