Author: Lucy Nwachukwu

Economy

By Lucy Ogalue

Abuja, June 30, 2024 (NAN) The Abuja Chamber of Commerce and Industry (ACCI), has urged the Federal Government and Labour Unions to prioritise the nation’s economic well-being by seeking amicable resolutions to disputes.

The President of ACCI, Emeka Obegolu, said this in an interview with the News Agency of Nigeria (NAN) in Abuja.

Obegolu was reacting to the recent strike embarked upon by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) as well as the effects  on businesses and the economy.

The NLC and TUC had on June 3, enjoined other affiliate unions on an indefinite strike.

The strike was prompted by the clamour for a new minimum wage for Nigerian workers, aimed at ameliorating effects of the country’s current economic realities attributed to harsh government policies.

The ACCI president expressed deep concern over any strike action, saying that it had detrimental effects on the economy, particularly small businesses.

“The ACCI encourages the need for constructive dialogue and negotiations to resolve disputes without resorting to strikes.

“We are urging all stakeholders to engage in open and effective communication to find sustainable solutions that protect our economy and the livelihood of millions of Nigerians.

“We understand that the ripple effects of strikes extend beyond immediate financial losses, it hinders supply chains, delays projects, and create an uncertain business environment.

“This uncertainty discourages investment and stifles economic growth, and we must stand against this,’’ Obegolu said.

According to him, strike actions pose significant challenges to economic stability and growth. They disrupt economic activities, leading to a loss of productivity, revenue, and business confidence.

The ACCI president said it mostly affected small businesses, which are our economy’s backbone. This resulted in severe financial strain and, in some cases, business closure.

He, therefore, expressed the Chamber’s readiness to facilitate discussions and provide necessary support to mitigate the adverse impacts on small businesses and the broader economy.

Similarly, an analyst, Gloria Uke, said the strike actions protesting against austerity measures and the government’s economic policies had adverse effects on the country’s economy.

Uke said while the workers demanded better wages and improved working conditions, businesses grappled with the sudden disruption to operations and supply chains.

According to her, this action is detrimental to businesses and economic growth and should be avoided as much as possible.

An economist, Thomas Geoffrey, said the strike’s impact transcended sectors, seeping into daily life and affecting everything from healthcare services to education.

Geoffrey said the strike affected the volume of foreign direct investment, increased unemployment, reduced consumer confidence, led to decreased spending, and stagnated the retail sector.

“We must, therefore, find a balance between our aspirations for better livelihoods and the need for economic stability,” Geoffrey said.

For Mr Ignatius Itodo, a businessman, strike action is an enemy of progress. It halts business activities and leads to poverty and hunger.

Itodo said the country’s hardship and suffering had caused most of his customers to buy goods on credit rather than pay for items purchased as they used to do.

He, however, drummed support for any measure that would ameliorate the sufferings of the poor masses and Nigerian workers.

Adamma Okoronkwo, a small business owner, who sells in one of the secretariat buildings, said her mini business always got caught in the crossfire during demonstrations.

Okoronkwo said her fabric shop, which was bustling with customers, was eerily quiet whenever workers were made to stay home for any reason.

She said, ” the sad implication is that it affects my available income, thus limiting my ability to adequately care for my family.

“ I do not have any other source of income except this one, so we depend on whatever profit I can make daily from this petty business.’’

Meanwhile, a taxi driver, Uche Okoro, said very few passengers were usually seen during strikes, as they affect their businesses, especially with the increased cost of petrol in the country. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

Standards
By Lucy Ogalue
Abuja, June 27, 2024 (NAN) Justice Monica Dongban-Mensem, President Court of Appeal, has urged the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) to intensify efforts to raise professional standards and enhance economic growth.

Dongban-Mensem said this when members of the association led by its President, Mr Chimezie Ihekweazu, SAN, visited her on Thursday in Abuja.

The News Agency of Nigeria (NAN) reports that BRIPAN is a group of professionals that provides solutions to underperforming businesses and supports business rescue and growth.

According to Dongban-Mensem, professional associations like BRIPAN are critical in aligning national practices with international standards.

She said there was a pressing need for Nigeria to improve its economic activities by adhering to global standards.

“If we do not address these issues properly and act in accordance with national and international standards, our economy will never rise.

“No economic activity is too small to be captured by the vigilant eyes of the international community,” she said.

Dongban-Mensem underscored the importance of professional standards in gaining the international community’s confidence, which often views Nigeria with scepticism due to perceived laxity in professional conduct and training.

” They think we are not serious people, we compromise so many things, we do not care to train ourselves actively to bring our economic development up to international standards.

” So your association has a vital role in this,” she said.

The president commended BRIPAN for its sustained efforts since its establishment in 1994, saying that the association’s work was vital for economic stability.

She also commendwd BRIPAN for extending its activities beyond major cities like Lagos and addressing economic challenges nationwide.

“Your outreach to various groups and economic activities is essential for solving the problems that hinder our economic progress,” she said.

On the judiciary’s role in economic development, the president acknowledged the need for specialised training to handle complex commercial matters promptly.

Dongban-Mensem assured BRIPAN that the judiciary was willing to collaborate and learn from experts to improve the handling of cases that impact the economy.

“We are amenable to learning and improving our skills to address issues properly and promptly in the courts,” She said.

The president also urged BRIPAN to engage with the heads of courts to formulate policy statements that would guide future actions.

She said such policies would benefit the judiciary and the broader economic landscape.

“We are honoured to cooperate with you to ensure that your interests are addressed properly,” Dongban-Mensem said.

Earlier, the president of BRIPAN presented the direction of Insolvency practice for the Court of Appeal to its president.

While making the presentation, Ihekweazu called for enhanced collaboration with the court to raise professional standards to support Nigeria’s economic growth.

He acknowledged the vital role of adequate training for members and regulatory bodies in ensuring professional excellence and urged necessary reforms within Nigeria’s legal framework.

“One of BRIPAN’s key achievements has been training over 80 senior members of staff from the Corporate Affairs Commission (CAC? and the Legal Department of the Nigeria Deposit Insurance Corporation (NDIC).

“Additionally, the association is currently preparing to train 47 senior management staff from the Asset Management Corporation of Nigeria.

“These initiatives reflect BRIPAN’s commitment to equipping professionals with the skills needed to navigate the evolving landscape of insolvency practice,” he said.

The association president said BRIPAN was dedicated to fostering cooperation between the judiciary and professional bodies.

“Particularly in light of recent legislative changes that have expanded insolvency practices to include company administration,” he said.

Ihekweazu appealed that insolvency processes and proceedings before the court be given special status and accelerated hearing due to its extraordinary economic interest in our nation.

NAN reports that Mr Amala Umeike, Co-Chair of the Special Projects Committee, and Mr Okorie Kalu, second deputy vice-president, were present during the visit. (NAN) (www.nannews.ng)
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Edited by Ese E. Eniola Williams

US supports AfDB’s $117bn capital increase

Remittance

By Lucy Ogalue

Abuja, June 24, 2024(NAN)The Nigeria Export Processing Zones Authority (NEPZA), has said that the country’s Free Trade Zones generated N11.1 billion between 2020 and 2023.

Dr Olufemi Ogunyemi, Managing Director of NEPZA, said this in a statement by his Head of Corporate Communication, Martins Odeh, on Monday in Abuja.

Ogunyemi said the sum contradicted the earlier N11.11 trillion erroneously captured in the authority’s submission to the Senate Committee on Trade and Investments.

He described the initial quoted figure as a regrettable typographical mishap.

According to the managing director, the sum of N377.33 million was generated in 2020, while N3.11 billion accrued to the Federation Account in 2021 from the scheme.

Ogunyemi said the total remittances from the scheme in 2022 stood at N3.44 billion, while an impressive N4.17 billion came through in 2023.

“The management’s attention has been drawn to the news that it  remitted a whopping N11.11 trillion to the Federation Account as of October 2023.

” This information was a classical typography error, and it is regrettable.

“Let me emphatically state that the remittances from the Free Trade Zones from 2020 to 2023 stand at N11.1 billion only.

“We are, however, making good progress to take the scheme to that point where it can generate such huge revenue for the government,” he said.

Ogunyemi said in 2023, the Nigeria Customs Service (NCS) generated N59.38 billion, Immigration Services N828.7 million, and the Nigerian Ports Authority (NPA) garnered N8.738 billion from the free trade zones.

Ogunyemi said NEPZA was gradually transforming the scheme into the country’s sustainable economic gateway while calling for more support to position it  for greater exploitation.

“NEPZA is the major driver of the Government’s initiative to diversify the Nigerian economy.

” With attractive investment packages and a focus on economy-driven sectors, NEPZA provides investment opportunities in different sectors across the country.

“At the moment, the scheme focuses on three critical investment areas, namely, Manufacturing 45 per cent, Services 30 per cent, and Oil and Gas with 11 per cent active investment exploitation,’’ Ogunyemi said.

The News Agency of Nigeria (NAN) reports that the scheme currently has 53 Free Trade Zones, harbouring 580 enterprises with a cumulative 30 billion dollars.

The authority collects 20 types of revenues,  ranging from 500,000 dollars declaration fees, 60,000 dollars annually as Operation License (OPL) and 300 to 500 dollars Registration fees in line with extant regulations on Internally Generated Revenue (IGR).

There are also 100 to 300  in Examination and Documentation fees per transaction, which occur on a daily basis. (NAN)(www.nannews.ng)
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Edited by Chioma Ugboma/Bashir Rabe Mani

X-raying the plights of small businesses in Nigeria

By Lucy Ogalue, News Agency of Nigeria (NAN)

Small businesses are crucial for ensuring the growth of a nation’s economy. In Nigeria, small businesses employ more than 80 per cent of the workforce, according to PricewaterhouseCoopers International Ltd. (PwC) Micro Small and Medium Enterprises (MSMEs) Survey.

In spite of this, small business owners are seen as among the most neglected; thus, their resilience and ingenuity are being tested daily by challenges and government reforms.

There is a mixture of hope and hardship for MSMEs in the country as the nation grapples with rising costs and regulatory changes.

The removal of fuel subsidies, a significant move aimed at reducing government expenditure and freeing up funds for critical infrastructure projects, has had immediate and far-reaching impacts on citizens and businesses.

While the policy’s long-term benefits are yet to be seen, the short-term consequences have been stark. Fuel prices skyrocketed almost overnight, leading to increased cost of transportation and production costs.

Small businesses, which often operate on razor-thin margins, were squeezed from all sides. For many, the only viable option is to close their doors, as they were unable to absorb the additional expenses.

Some small business owners, who narrated their ordeal to NAN, decried the difficulties they encountered in doing business in the country in the last one year.

An entrepreneur, Mr Cletus Faga, who shared his experience, said a hike in electricity tariffs compounded the woes of small business owners in the country.

He said: “reliable and affordable electricity is the lifeblood of countless enterprises, from small-scale manufacturers to retail shops.

“The higher tariffs have translated into increased operational costs, forcing most businesses to scale back operations or shut down entirely.

“For a country where small businesses are a critical component of the economy, these developments have been nothing short of devastating.’’

Another entrepreneur, Mr Isah Ibrahim, said power fluctuations were a nightmare for manufacturers.

“Every time the lights flicker, our machines grind to a halt, which means lost productivity.

“We have had orders delayed, deadlines missed, and customers left disappointed. Moreover, the damage to our equipment is a constant drain on our finances.

“The more downtime we have, the more money we lose, and the harder it becomes to stay afloat,” Ibrahim said.

Mr Smart Ekpeyoung, a businessman, said the broader macroeconomic landscape had added to the difficulties of business owners in the country.

According to him, Nigeria’s business environment has been characterised by soaring inflation, a scarcity of foreign exchange, and significant currency depreciation.

He said the value of the Naira has battered steadily, making imports more expensive and squeezing profit margins even further.

“For small businesses that rely on imported raw materials or products, the scarcity of foreign exchange has made it challenging to keep the shelves stocked and operations running smoothly.

“The high inflation rate has also taken a toll on consumers’ purchasing power, reducing demand for goods and services.

“Going by the importance of small businesses and their contributions to the economy, the government and relevant authorities must support them to drive the nation’s economy,’’ Ekpeyoung said.

As small businesses navigate these turbulent times, their expectations for the future are cautiously optimistic.

There is a strong desire for more robust government support, particularly in financial aid and policies that reduce business costs.

Access to affordable credit remains a critical need, as does the stability of key economic indicators such as inflation and foreign exchange rates.

To improve the ease of doing business, small business operators are seeking a stable and affordable energy supply, reduced electricity tariffs to lower operational costs, and reduced dependency on expensive generators.

According to Nguamo Ganga, access to finance is another critical area that should be tackled because we need easier access to affordable loans and credit facilities to grow and expand.

She said: inncreased support from microfinance institutions, providing small-scale loans tailored to our needs will also be beneficial.

“Additionally, we need better access to foreign exchange to purchase raw materials and equipment from abroad, along with stability in exchange rates to plan and budget effectively.’’

Ganga said regulatory simplification was also essential to reduce bureaucratic delays, especially in business registration processes, and consistent regulatory policies to avoid frequent changes that can disrupt operations.

She called for tax reforms and incentives to help alleviate financial burdens and ensure businesses’ easy compliance.

“Infrastructure development plays a crucial role in easing business operations. Improved transport infrastructure and better road networks can significantly reduce logistics costs.

“Ensuring access to essential utilities like water and telecommunications at affordable rates is equally important.

“Support for digital transformation is another priority. Small businesses will benefit from digital literacy programmes to adopt new tools and technologies, along with support to establish and grow their online presence through e-commerce,” Ganga said.

Similarly, Mr Amos Abayol, a businessman, also called for more government support to the MSMEs subsector in terms of favourable policies to ensure a conducive environment for businesses to thrive.

“Government should ensure policies that specifically target the needs of small businesses, ensure wider domestic and international markets, and provide incentives for export activities to boost competitiveness.

“Training and capacity building are crucial for sustainable growth. Small businesses need programmes to build entrepreneurial skills and business management capabilities.

“Providing technical assistance and advisory services can also help improve their operations.

“If these changes are implemented, they can significantly enhance the business environment for small enterprises in Nigeria, enabling them to overcome current challenges and thrive in the long term,’’ Abayol said.

Amid these challenges and optimism for a more conducive business environment, the regulatory environment has also undergone some rapid changes and reiterated commitment to the growth of small businesses.

As part of efforts to promote small businesses, the Corporate Affairs Commission (CAC) has spearheaded a digitisation drive, streamlining business registration processes to create a more business-friendly environment.

The Business Facilitation Act (BFA) 2023 of the CAC has emerged as a significant force in shaping Nigeria’s corporate landscape, thereby, creating glimmers of hope.

The CAC’s digitisation efforts and the implementation of the BFA are expected to simplify bureaucratic processes, potentially reducing the time and cost associated with starting and running a business in Nigeria.

Moreover, the growing emphasis on sustainability and Environmental, Social, and Governance (ESG) criteria is gaining traction, thereby, offering new avenues for investment and growth.

The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, described MSMEs as the lifeblood of our nation’s economy.

According to her, they are engines that power our growth and innovation; thus, our duty (government) is to provide them with the necessary support and assistance to flourish.

Similarly, the ministry’s Permanent Secretary, Amb. Nura Rimi emphasised MSMEs’ important roles in ensuring job creation and national development.

Rimi restated the deliberate effort by the President Bola Tinubu-led administration and stakeholders to provide an environment that enables MSMEs to thrive sustainably.

For Charles Odii, the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the agency is determined to remove all obstacles to the growth of MSMEs in Nigeria.

While speaking on SMEDAN’s GROW Nigerian Strategy, Odii said Small and Medium Enterprises (SMEs) are central to Tinubu’s mission to eradicate poverty and ensure prosperity to all Nigerians.

“We are not only going to protect them from inflationary pressures but also empower them to drive down such trends.

“We will work with sister government agencies to streamline regulations and optimise them for growth and productivity.

“We will remove obstacles that hinder formalisation and growth, and with the GROW Nigerian strategy, SMEs will get affordable financing opportunities, access to markets and support, ’’ Odii said.

Meanwhile, financial expert Mary Ugochukwu reiterated that MSMEs worldwide are the missing link to creating inclusive, dynamic, and prosperous societies.

“There is no denying that MSMEs worldwide are the missing link to creating inclusive, dynamic, and prosperous societies.

“Invariably, Nigeria and even the continent suffer from marginalisation as reflected by the difficulties they face in accessing finance, markets and opportunities for growth in general.

“I am urging the government at all levels to invest and support the MSMEs sub-sector to ensure growth and development of the country,’’ Ugochukwu said. (NANFeatures)

**** If used please credit the writer and the News Agency of Nigeria (NAN)

Abuja Chamber expresses concern over rising food prices

Prices

By Lucy Ogalue

Abuja, June 22, 2024 (NAN) The Abuja Chamber of Commerce and Industry (ACCI), has expressed deep concern over the persistent rise in commodity prices.

The ACCI President, Emeka Obegolu, in a statement, said the daily price increments were adversely affecting small-scale business owners and escalating poverty levels.

“The surge in prices of essential food items such as rice, beans, cassava flour, tomatoes, pepper, onions, and others has aggravated the plight of the average citizen.

“It is rendering basic meals increasingly unaffordable for many households,” he said.

According to Obegolu, official National Bureau of Statistics (NBS) records indicated a staggering 35.41 per cent food inflation rate in May 2023.

He said that on-ground observations suggest that the actual food inflation rate exceeded 50 per cent, highlighting the severity of the situation and its dire impact on livelihoods.

Obegolu said the chamber provided support services in training and advocacy to help local businesses navigate challenges and seize opportunities in the food sector to impact its members.

He said that the distressing situation made necessities such as food, housing, and healthcare increasingly unattainable, pushing numerous households to the brink of poverty and extreme deprivation.

Obegolu, the Organised Private Sector leader in the FCT and environs, emphasised the urgent need for government intervention to address the escalating food crisis.

He said that failure to act promptly could lead to malnutrition and further aggravate the nation’s socio-economic challenges.

“Food is a fundamental necessity of life, and its affordability directly impacts the well-being of citizens.

“The escalating food inflation crisis threatens food security and exacerbates poverty.

“The government must take decisive action to mitigate this crisis and alleviate the populace’s suffering,” he said.

The ACCI President said the economic situation also adversely affected the business community, particularly farmers and agricultural product sellers.

He, therefore, called for urgent measures to stabilise food prices, enhance food security, and alleviate Nigerians’ economic burden.

The ACCI president said this would foster sustainable socio-economic development within the country.

Obegolu quoted the Chief Executive Officer of Araba Technology, Amb. Segun Olugbile, as urging the ACCI to initiate business actions against the food crisis and hunger in the FCT.

According to Olugbike, the food crisis is becoming a severe issue due to multifaceted challenges affecting farmers and herders, climate change and the current high inflation.

He said the ACCI was at a critical juncture as the FCT was facing an escalating food crisis and hunger emergency, due to challenges impacting food production and supply chains.

“With an estimated 24.7 million individuals affected by food and nutrition insecurity across 26 states, including the FCT, urgent action is imperative.

“The ACCI can play a pivotal role through collaboration with government and stakeholders to avert a worsening crisis and bolster regional food security.”(NAN)(www.nannews.ng)

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Edited by Abiemwense Moru

Development

By Lucy Ogalue

Abuja, June 21, 2024 (NAN)  The Economic Commission for Africa says the Regional Forum of Intergovernmental Organisations (IGOs) of West Africa will strengthen partnership for sustainable development in the region.

 ECA, in a statement on its website, said its Sub-Regional Office for West Africa (UNECA-SRO-WA), in partnership with the Ministry of Economy, Planning and Development of Côte d’Ivoire organised the event.

The theme of the meeting is “Strengthening the synergy of actions to accelerate regional integration and sustainable development in West Africa in a context of multiple challenge”.

“The objective of this Regional Forum is primarily to strengthen the partnership for sustainable development between the entities of the United Nations system represented by the ECA.

“And the Office of the Resident Coordinator of the Ivory Coast on the one hand, and West African IGOs on the other,’’ ECA said.

Mr Phillipe Lasmel, Director-General, Development Cooperation, Ministry of Economy, Planning and Development, expressed concern that countries in the sub-region may not meet the 2030 Sustainable Development Goals (SDGs targets.

He said this was in spite of the economic progress made by these countries.

“It is therefore urgent to mobilise around all the levers capable of reversing this trend. In this regard, regional integration constitutes.

“An essential lever for achieving the objectives of sustainable development and better responding to the aspirations for well-being of African populations,”Lasmel said.

Representing the Director of ECA Sub-Regional Office for West Africa, Amadou Diouf, he said the sub-region needed concerted efforts from all stakeholders to achieve complete integration and sustainable development, as well as Agenda 2063.

According to Diouf, it is necessary to adopt an approach that allows for strengthening the synergy of interventions around four axes of convergence.

“These include development of rivers and basins for water management and access to energy; and information and data generation.

“Others are financing facilities, promotion of a single currency, integrated payment systems, and strengthening of the macroeconomic framework; and  multisectoral and community interventions,’’ Diouf said.

The Government of Côte d’Ivoire, through the Ministry of Economy, Planning and Development, inaugurated the annual meeting of the Regional Forum of Intergovernmental Organisations (IGOs) of West Africa in Abidjan.(NAN)(www.nannews.ng)

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Edited by Bashir Rabe Mani

Report
By Lucy
Abuja, June 20, 2024 (NAN) The Nigeria Extractive Industries Transparency Initiative (NEITI), is engaging with stakeholders to review and validate the 2023 Annual Progress Report (APR) of Nigeria’s extractive industries.

Dr Orji Ogbonnaya Orji, the Executive Secretary of NEITI, said this at a Stakeholder’s Consultation/Validation Meeting on Thursday in Abuja.

The News Agency of Nigeria (NAN) reports that the meeting was centred on the 2023 Annual Progress Report (APR) of the Nigeria Extractive Industries, which covers the oil, gas, and mining sectors.

Orji, represented by a Director in NEITI, Mrs Jane Onwumere, said that  stakeholders engagement in the Extractive Industries Transparency Initiative (EITI) process was important.

“The global EITI requirement of 1.5 under its 2023 standard mandates all implementing countries, including Nigeria, to document their review of the impacts and outcomes of the EITI implementation in an APR.

“This can also be done through other means as may be agreed by Multi-Stakeholders Group (MSG).

“It requires that all stakeholders, companies, government and civil society involved in the EITI process, including those not on the MSG, should participate in reviewing the impact of EITI implementation.

“They are required to also provide feedback and have their views reflected in the annual progress report.”

Orji said the programme, therefore, aimed to reflect the stakeholders’ views in the 2023 APR of the NEI in line with the requirements of the global EITI.

He said the event served as an opportunity to evaluate and celebrate the progress, milestones, and achievements recorded in Nigeria’s extractive sectors in the year under review.

Orji called on stakeholders to share their contributions to the sector to enable NEITI to report and celebrate them through the instrumentality of the global EITI.

According to him, the APR is not solely the business of the NEITI Secretariat but a collective effort by all parties working towards achieving EITI objectives in Nigeria.

“While we acknowledge that there are still many issues to be addressed in the sectors, we must document, report, and celebrate our efforts and progress.

“Addressing those issues will build trust, earn citizens/investors’ confidence, and attract the desired investment into our extractive sectors and economy.”

Also speaking, a former member of the EITI International Board, Mrs Faith Nwadishi, decried the regular dissolution of the board by successive governments.

Nwadishi said,” the fact that each time a new government comes into office, it dissolves the EITI Board in the country is a concern.

“This is because it can lead to the country’s suspension from the international body, but we are lucky that the Board was eventually put together.

“I am sure that if the NEITI Board had not been put together, the EITI International Board meeting happening right now in Geneva would have been a serious concern.

“We had a similar issue in 2016. Therefore, we must understand the role of the Board.”

Nwadishi, while commenting on the draft report, also observed that not many Civil Society reports had been captured in the APR.

She urged them to send their reports, saying it was why it is a country work plan comprising inputs of all stakeholders, civil societies, government, and companies.

NAN reports that the meeting brought together a diverse group of stakeholders, including representatives from companies, government agencies, civil society organisations, and other entities involved in the EITI process.

The participants contributed and expressed their concerns, which the NEITI pledged to address accordingly. (NAN) (www.nannews.ng)
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Edited by Ese E. Eniola Williams