Category: Economy

Agreement
By Okeoghene Akubuike

Abuja, June 14, 2024 (NAN) Dr Doris Uzoka-Anite, Minister of Industry, Trade, and Investment (FMITI), says developing the African Caribbean Free Trade Agreement will require a multi-faceted approach. Inclusive

Uzoka-Anite said this at a Plenary Session: “Towards An Afri-Caribbean Free Trade Agreement: The Pathway to Self-Determination” at the ongoing 31st Afreximbank Annual Meetings (AAM2024) in Nassau, The Bahamas.

The meetings are being monitored by the News Agency of Nigeria (NAN).

Uzoka-Anite said the agreement would involve multi-stakeholders whose roles would need to be clearly defined.

“ The role of government, the private sector, international development communities, and civil society have to be defined. There has to be a multi-stakeholder engagement to address all the issues.

“When we have a focused and inclusive discussion, listening to diverse opinions and considering them in negotiations, we take the first step in breaking down barriers, because we are going to see a lot of barriers.

Uzoka-Anite said strong political will from the political leaders was also needed to achieve the development of the African-Caribbean Free Trade Agreement.

She mentioned that the African Continental Free Trade Area (AfCFTA) was successful because the African Union leaders backed it with their political will.

“We need to see the same thing happen between the African and Caribbean countries.”

The minister also said there was a need to clarify how the two regions would develop communication and infrastructure, citing no direct flights, and visa restrictions between the regions as a challenge.

She, however, said the partnership between the regions was supposed to address those challenges.

“Opening the trading routes and developing market access so that there is a free flow of goods either through the sea are things we should be looking at.

“So, we need to do seaports, airports, road networks infrastructure, and digital network infrastructure for communication to happen. All that infrastructure has to be developed.”

Uzoka-Anite said a strong policy framework needed to be in place by harmonising them to ensure their alignment, including the different agreements the two regions already had in place.

She emphasised the need to create incentives for private sector involvement in the agreement, as the sector would be the major driver of the agreement.

Uzoka-Anite said there was also the need to ensure the removal of tariff and non-tariff barriers to trade, however, not at the detriment of each country’s nationalistic objectives.

“Even though we are looking for global and economic integration within the regions, every country has their nationalistic objective and their duty to provide infrastructure, job creation and sustainable growth for their citizens.

“ Therefore, you do not want the free trade agreement to destroy what you are building. All this has to be considered,” she said

She said dispute resolution mechanisms have to be in place to ensure the agreement is enforced in an equitable, efficient, and transparent way “where everybody feels they are part of it.”

The minister said there was also the need to harmonise different standards even amongst the financial services.

“How do I bring the banking sector from Africa into the Caribbean? how do I ensure there is free movement of professionals with different licensing regimes, different qualifications, etc?

“ All these need to be considered in developing the free trade agreement itself.”

She said apart from the challenges, there were many opportunities to benefit from the economic, and regional integration that the African Caribbean free trade area would offer.

Uzoka-Anite said the creative sectors- fashion, music, film, technology, agriculture and tourism sectors; and cultural exchange, all had strong potential for growth.

“Even harvesting technology transfers between emerging areas like renewable energy and some industries. Now the Caribbean is discovering oil.

“We have a lot of skills and technology especially in Nigeria for example that we can transfer this knowledge, and lessons learnt between ourselves.

“When we put the opportunities and the benefits before our negotiating parties or before our countries and we understand that we are stronger together than separately, it begins to help us move in that direction.”

Albert Muchanga,  AU Commissioner for Economic Development,  Trade, Tourism, Industry and Minerals,  said it was necessary to build stakeholders ownership to achieve the trade agreement between the two regions. 

Christopher Edordu,  Former President,  Afreximbank,  suggested going slow to achieve positive results on the trade agreement.

Mrs Pamela Coke-Hamilton, Executive Director, International Trade Centre,  said the political will was needed to achieve the trade agreement between the two regions. 

“ Next is  to drill down to the specifics then get  the youths to feel it is worth it for them. If they don’t buy the idea there is no point.”

Albert Ramidin, Minister of Foreign Affairs, Suriname,  said the discussion on the agreement between the two regions would require political ownership and commitment.

“I believe we need as soon as possible a document outlining the scope of this endeavor,  present it to the African and Caribbean leaders, receive their mandate with a timeline and roadmap to execute and the rest will follow.”

Dr Didadus Jules,  Director-General,  Organisation of Eastern Caribbean States, said all the sectors should be brought to the table, especially the private sector and the youth economy.

“The youths  have the greatest appetite for innovation.  Also Open up the means of communicating for  people, so that  exchange can happen.”(NAN)(www.nannews.ng)

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Edited by Vivian Ihechu

Transport

By Safia Abdulrahman

Abuja, June 14, 2024 (NAN) Many residents of the Federal Capital Territory (FCT), have continued to decry the increasing hike in transport fares.

According to the residents, who spoke to the News Agency of Nigeria (NAN) on Friday in Abuja, the hike in transport fares has also led to the high cost of commodities and services.

The residents said that as a result of this development, their finances could no longer cater for their other needs such as electricity and water bills, health and especially feeding among others.

NAN recalls that since the removal of fuel subsidy by the Federal government on May 29, 2023, transport fares were increased astronomically.

This had also led to fewer commercial vehicles plying the roads.

They urged the Federal Government to intervene by providing buses that were highly subsidised, saying this would go a long way in cushioning the effect of the high transport fares.

Miss Aisha Bajini, a corps member, said it had become difficult for her to get to her place of primary assignment due to the high transport fare.

“It has not been easy for me to go to work since we started experiencing high transport fares.

“To worsen the situation, anytime I come out, I spend most of my time on the road looking for vehicles, because before the vehicle gets to where I am it is already filled with passengers.

She said the situation had affected her so much that she paid twice the transport fare to get to work when she eventually found a vehicle.

“This has now made me to be trekking halfway from home to reduce the transport fare, and I end up being exhausted by the time I get to my place of work,’’ she said.

Miss Princess Uye, a private sector worker said that with the high transportation fare, it was costing her more to get to the office.

According to her, I used to pay N300 to N400 from Nyanya to Julius Berger Junction but now I am paying N700 in a day. Where are we going in this country?

Miss Treasure Umar, a civil servant and many others also corroborated what Bajini and Uye said.

“If it is not that it is boring to stay at home, I would have stopped going to work because I am not gaining anything at the end of the month.

“I am just making money to spend on transport and not for anything else that can help me move forward in life.”

Umar, who appealed to the government to intervene, said the situation was becoming unbearable for the younger generation who had finished their education without tangible means of livelihood.

“Last Tuesday, I had to trek home after I came down at my bus stop which is far away from my house because the money I had on me was spent on just transport and I had nothing left.

“Is this how we are going to survive in Nigeria, is this how we are going to fight poverty in the country if the little we have cannot sustain us?”

Similarly, Mr Petter Edache, said he now pays N900 from Dei-Dei to Berger as against N200 he used to pay.

Edache said commercial motorcyclists operating within his area were now charging between N200 and N300 to different destinations as against N100.

He pleaded that the situation be addressed as it was not easy for both government and private sector workers let alone Nigerians who were not working.

Mr Shuaybu Bulama, a commercial driver, attributed the high cost of transport to the removal of subsidy.

“Fuel is now very expensive, we have no other choice but to increase transport fares,’’ he said. (NAN)(www.nannews.ng)

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Edited by Okeoghene Akubuike/Ese E. Eniola Williams

Fund

By Lucy Ogalue

Abuja, June 14, 2024 (NAN) The African Development Bank (AfDB) President, Akinwumi Adesina, says conflict of interest is hindering implementation of the bank’s anti-corruption fund.

Adesina, in an interview, said the bank established an anti-corruption fund of about 55 million dollars seven years ago, which had yet to be tapped into.

“The point is, we have the funds. However, when implementing that fund, we found that there were conflicts of interest on how the fund was set up.

“As president of the bank, I will not mingle with the bank’s funds.

“And we said, no, we cannot do that. We need to find a way to give that to third parties. The money is there, and the money is going to third parties.

“And just so you know, the AfDB was ranked in 2023 as the most transparent institution in the world,’’ he said.

Adesina restated that the bank had an independent anti-corruption unit that sanctions companies with non-competitive behaviour.

According to him, corruption is not unique to Africa, and there is no doubt about the need for improved governance, transparency, and accountability anywhere in the world.

He said to curb the challenge of corruption, the bank established a programme called SEGA, which centred on economic governance in Africa.

“It has to do with public financial management. It has to do with debt management. It has to do with reducing illicit capital flows.

“Now, I agree with you. Today, we have illicit capital flows out of Africa, which amounts to about 89 billion dollars annually. Sometimes, it is like pouring water into a basket, It needs to be able to hold it.

“But this much I will say, even as I agree with all of that, corruption is not unique to Africa,’’ he said. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

Climate

By Lucy Ogalue

Abuja, June 14, 2024 (NAN) Dr Akinwumi Adesina, president of the African Development Bank (AfDB), says Africa loses between seven billion dollars and 15 billion dollars annually due to climate change.

The President of the bank, Dr Akinwumi Adesina said this during an interview with the British Broadcasting Corporation (BBC), which was monitored by the News Agency of Nigeria (NAN).

According to him, this is in spite contributing only three per cent of global emissions.

Adesina said that Africa was at the forefront of climate change’s impacts, which had devastating effects on agriculture and economies.

“In response, the AfDBank has inaugurated ambitious initiatives to build resilience and adapt to a changing climate.

“The AfDB has committed to doubling its climate finance to 25 billion dollars by 2030, focusing on the African Adaptation Acceleration Programme.

“This programme aims to deploy 25 billion dollars for climate adaptation, making it the largest globally.

“Additionally, the AfDB has created a climate action window with an initial investment of 429 million dollars, expected to grow to 13 billion dollars,’’ he said.

Adesina said this window supports vulnerable countries with crop insurance, land restoration, and climate information services.

He said Innovative financial mechanisms played a crucial role in supporting these climate adaptation initiatives.

Adesina said the bank had begun using partial credit guarantees, which enabled countries like Benin, Senegal, and Cote d’Ivoire to raise significant capital at lower interest rates.

“For example, Benin raised 400 million dollars from Chinese investors using a 195 million dollar partial credit guarantee.

“The AfDB also facilitated Egypt’s Panda Bond issuance, allowing the country to secure 500 million dollars from Chinese markets.

“These financial innovations reduce the cost of borrowing for African countries and encourage long-term investments in climate resilience.

“In spite of the challenges posed by climate change, Africa is leading the charge in innovative solutions and sustainable development,’’ he said.

The AfDB boss, therefore, said that the global financial architecture was not serving Africa’s interests very well, thus requiring change.

On Special Drawing Rights (SDRs), he said the bank was championing the course on the need for Africa to take those SDRs and use them better. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

By Lucy Ogalue
Abuja, June 14, 2024 (NAN) The African Development Bank (AfDB) President, Dr Akinwumi Adesina  says there is great potential and opportunities in Africa.

According to him, this is evident in its economic growth.

Adesina said this in an interview with the British Broadcasting Corporation (BBC), which was monitored by the News Agency of Nigeria (NAN).

The AfDB President said Africa’s Gross Domestic Product (GDP) growth rates had continued to outpace the global average, with projections showing positive trends.

“Take a look at the African Economic Outlook we had from the African Development Bank. The GDP growth rate in 2023 was 3.1 per cent.

“This year, its 3.7 per cent, and in 2925, its going to be 4.3 per cent.

“Now, why is that important? It is well above the global average.”

The AfDB boss acknowledged the challenge of fast-rising populations but remained optimistic about Africa’s potential.

“You still have 10 out of the 20 fastest-growing economies in the world being in Africa.

“Africa still needs to grow a double-digit, though, for probably another 10, 20 years before we see a lot of millions of people taken out of poverty,” he said.

Regarding misconceptions about investing in Africa, Adesina said “Africa is not as risky as people say.”

According to him, Africa has demographic advantage, with a projected population of 2.5 billion by 2050.

“And its vast agricultural potential, with 65 per cent of the world’s uncultivated arable land located on the continent.

“Perception is not reality. Data matters. Moody’s Analytics did a 14-year assessment of the cumulative risk of losses on infrastructure around the world.

“They found that the risk of loss in Africa was 1.6 per cent or 1.9 per cent, Latin America was roughly 12 per cent, and North America was 10 per cent.

”If you take a look at Western Asia, 4.5 per cent. So, that means that Africa is not as risky as people say. That said, you do have market risk, political risk, and financial risk.

“And that is what we do as multilateral development banks: de-risk those investments. But if you take a look at it in terms of risk-return analysis, Africa is still the place to be,’’ Adesina said.

The AfDB president restated the bank’s commitment to de-risking investments in Africa and ensuring sustainable growth on the continent. (NAN) (www.nannews.ng)
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Edited by Ese E. Eniola Williams

Trade Mission
By Rukayat Moisemhe
Lagos, June 13, 2024 (NAN) The Nigerian-British Chamber of Commerce (NBCC) has stated the need for Nigerian and British businesses to leverage their strengths and explore new frontiers at the forthcoming trade mission in the United Kingdom.
Mr Ray Atelly, President, NBCC, said this at a news conference on Thursday in Lagos.
Atelly said the 2024 NBCC Trade Mission slated for June 24 to 28 has the theme: “Unveiling Untapped Opportunities Across the UK and Nigeria.”
He said the advice was crucial to navigate the complexities of a post-Brexit and post-pandemic global economy.
He noted that the trade mission was critical, particularly at this time when the Nigerian economy needed a rebirth especially via influx of foreign direct investments.
He said Nigeria’s dynamic economy, rich in resources and entrepreneurial spirit, presented a wealth of investment opportunities for UK businesses, particularly as Nigerian banks need capital to meet the new capital threshold set by the apex bank.
Atelly added that the UK, with its advanced infrastructure, diverse market, and robust legal framework, offered numerous opportunities for Nigerian businesses seeking to expand their footprint internationally.
“It is certainly not just a window but a big door of opportunities thrown open to investors all over the world, the United Kingdom particularly.
“The Central Bank of Nigeria Governor, Olayemi Cardoso, has agreed to feature in the trade mission and he will be delivering a paper on his programme for the banks (recapitalisation of Nigerian banks).
“It is, therefore, an opportunity for the financial institutions in Nigeria to join us on this mission to explore possibilities beyond borders,” he said.
He also stated the need to explore and unveil untapped opportunities that exist within both economies.
Atelly said on the Nigerian front, opportunities existed in the transportation, educational and technology areas while for Nigeria in the UK, opportunities were in housing, food exports and culinary delights.
He stressed that Nigeria must expend efforts such as this to replace businesses that were being lost, noting that the net gain was in the country’s favour.
He pledged that the NBCC would continue to be at the forefront of fostering strong bilateral trade relations between Nigeria and the United Kingdom.
“This trade mission is a testament to our commitment to deepening economic ties, promoting business opportunities, and enhancing mutual growth and development,” he said.
The Director General, NBCC, Mrs Ebere Njoku, said the trade mission would high the vast and often underused opportunities in Nigeria’s key sectors such as agriculture, technology, manufacturing, and energy.
Njoku said the knowledge exchange in best practices between business leaders would foster innovation and collaboration between Nigerian and British business leaders.
“The UK-Nigeria relationship is built on a foundation of shared history and mutual interests.
“This trade mission is not just about business; it is about building bridges, fostering understanding, and creating a future where both nations can thrive together.
“As Nigeria navigates challenging economic conditions due to the decline in global oil prices, it has become imperative for us to diversify our economy and reduce our dependence on crude oil.
“The NBCC Trade Mission stands as a beacon of opportunity, aimed at attracting foreign investments to Nigeria with a focus on our non-oil sectors,” she said.(NAN)
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Edited by Chinyere Joel-Nwokeoma