Category: Economy

Multinationals exodus: CIoD wants FG address underlying issues

Issues

By Rukayat Moisemhe

Lagos, June 26, 2024 (NAN) The Chartered Institute of Directors (CIoD) has advised  the Federal  Government to do more to attract foreign investments and retain  multinational companies.

The Director-General of CIoD, Mr Bamidele Alimi,  gave the advice in the institute’s position paper  on the exodus of multinationals from Nigeria.

The paper was made available to the News Agency of Nigeria (NAN) in Lagos on Tuesday.

Alimi said that the Federal Government should adequately address the issues making multinational companies to exit Nigeria.

He said that Nigeria recorded a significant exodus of multinationals over the past decade.

According to him, the exodus raises concerns about Nigeria’s business climate.

NAN reports that Procter and Gamble, GlaxoSmithKline and  Kimberly-Clark are among the multinational companies which have left Nigeria.

The CIoD director-general said: “Obtaining foreign exchange is a significant hurdle for multinational companies, and the volatility in the exchange rate creates untold hardship for businesses.

“Lack of an easily accessible liquid forex market, where companies can easily buy and sell foreign currency at market rates, significantly hinders their operations.

“The depreciation of the Naira against major currencies like the US dollar further compounds  foreign exchange problems.”

Alimi said that unreliable power supply also posed a challenge, as frequent outages disrupted production, increased reliance on expensive generators, and raised operational costs.

He urged the government to adequately address infrastructural impediments, bureaucracy bottlenecks and security challenge.

Alimi said that a stable and predictable business environment  with access to foreign exchange, reliable power supply, efficient infrastructure and improved security would retain multinationals and attract new ones.

According to him, this will  lead to increased investment, job creation and economic growth.

He stressed the need to reduce dependency on oil by diversifying the economy through improved investments in agriculture, manufacturing, technology and services.

He said that initiatives that would support small and medium-sized enterprises  and innovation would drive the diversification.

Alimi advised that the Central Bank of Nigeria  should adopt more flexible foreign exchange policies that would give businesses  easy access to foreign currencies.

Alimi said that the government should collaborate with the private sector to create a more business-friendly regulatory framework, simplifying processes and reducing bureaucratic bottlenecks.

“The Presidential Fiscal Policy Reform and Tax Committee should consider incentives to reduce the cost of doing business.

“This could include tax breaks, subsidies for critical inputs, and support for technology adoption to improve efficiency,” he said.

Alimi said that  business registration processes should be simplified.

He added that there should be  improved access to credit, protection of minority investors and effective enforcement of contracts.

The CIoD director-general emphasised  promotion of partnerships between multinationals and local businesses to enhance local capacity and ensure more sustainable investments.

“Lastly, government should actively engage in public relations campaigns to rebuild confidence among foreign investors.” (NAN)(www.nannews.ng)

ARM/KOO/IGO
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Edited by Kevin Okunzuwa/Ijeoma Popoola

Kogi Govt. tasks youths on accountability, transparency

Task

By Thompson Yamput

Lokoja, June 25, 2024 (NAN) Kogi State Government on Tuesday tasked youths on accountability, transparency in all their dealings, so as to be responsible future leaders of the country.

The Commissioner for Youths and Sports, Mr Monday Anyebe, gave the charge while declaring open, a two-day Youth Social Accountability Lab Training for Young Changemakers in Lokoja.

The News Agency of Nigeria (NAN) reports that the training was organised by Youth Development and Empowerment Initiative (LYDEI).

NAN also reports that LYDEI is under the auspices of the Youth Upright Accountability Project (YUA-P), with support from LEAP Africa and Nigeria Youth Futures Fund.

Anyebe said that the state government was committed to fostering a culture of accountability, transparency, and civic engagement among the youths.

“As youths, accountability and transparency are so fundamental to your socio-political engagement, in all facets of life and the society.

“Gov. Usman Ododo’s administration has taken due recognition of the fact that development of the state remained intrinsically linked to the engagement and empowerment of the young people.

“It is based on this that the youth ministry is actively seeking to cultivate a vibrant youth sector in Kogi, and promote collaboration among youth organisations, foster collective action and building a network of young changemakers across the state.

“That is why we are delighted to support the Youth Upright Accountability Project (YUA-P), being implemented by the Youth Development and Empowerment Initiative (LYDEI),” he said.

Anyebe explained that the training was a crucial step at ensuring that the youths were not just passive beneficiaries of government programmes but active participants in shaping policies and holding leaders accountable.

In his remarks, Asema Haruna, member representing Adavi Constituency at the State House of Assembly, commended organisers of the training and urged the youths to be committed to doing things right.

Haruna urged the youths to always critically plan towards attaining meaningful positions, to enable them lead.

According to him, the State Assembly will always give priority to issues that concern youths, their lives and ambitions.

Earlier in his welcome address, the Executive Director, LYDEI, Mr Aminu Okwutepa, said that the Youth Social Accountability Lab Training for Young Changemakers was a call for action and a beacon of hope.

Okwutepa said that the training was designed to equip the young changemakers with the skills and knowledge needed for active participation in governance processes.

He said that it was important to cultivate a culture of accountability and transparency among the youths, as these were essential for fostering ethical governance.

Dr Funmilayo Oyefusi, a Consultant and Lead Facilitator for the training, said that the training would build the capacity of the youths to know how to be socially accountable and hold leaders to account.

Oyefusi urged the youths to set manageable goals for themselves and as innovative leaders, improve on themselves, be willing to adapt to changes, not to be scared of failure and be persistent.

“The training is about how youths can be strategic leaders in their own right, how they need to lead themselves first before leading others.

“How they can make others to be accountable; and also how to become an innovative leader,” he said.

In his goodwill message, Seidu Ademu, Chairman of Kogi State Council of the Nigeria Union of Journalists (NUJ), said that LYDEI shared common mandate with the Union in holding leaders accountable.

Ademu, therefore, urged the youths to, like the journalists, hold duty bearers accountable till the right things were done for the growth and development of the nation. (NAN)(www.nannews.ng)

TYC/FON/AMM

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Edited by Florence Onuegbu and Abiemwense Moru

Seafarers

By Aisha Cole
Lagos, June 25, 2024(NAN) Nigerian Maritime Administration and Safety Agency (NIMASA) says it plans to replace foreign seafarers operating within Nigeria’s cabotage waters with indigenous seafarers.

The Director General of NIMASA, Dr Dayo Mobereola, made this disclosure on Tuesday during the 2024 Seafarers Day celebration in Lagos.

Mobereola said that this would be through the introduction of the New Cabotage Compliance Strategy on Manning.

The News Agency of Nigeria (NAN) reports that the International Maritime Organisation (IMO) has set the 2024 theme as “Navigating the Future: Safety First”.

Mobereola acknowledged the challenges facing seafarers to include threats from war zones, piracy, exposure to health risks, and the lack of basic rights such as insurance and compensation.

According to him, June 25 is set dedicated to acknowledging, honouring the contributions and sacrifices of seafarers worldwide.

He emphasised that seafarers were the backbone of global trade, ensuring that over 80 per cent of the world’s trade reached its destination in espite of challenges faced onboard vessels.

Mobereola said, “This is a call to action for all stakeholders, including the government, ship owners, and NIMASA, to address these issues and prioritise seafarer welfare.

“I wish to state that the agency’s human capacity-building initiatives have resulted in the training and retraining of Nigerian seafarers to acquire the required skills in line with industry needs.

“We have prioritised training programmes and courses to enable seafarers to acquire advanced certificates that will enhance their employment opportunities.

“There are opportunities for Nigerian-trained seafarers in the Cabotage Regime, the Liquefied Natural Gas and Brass LNG Projects, expansion of the NLNG trains, and the Olokola Gas Project, to mention but a few.

“We need to do more to showcase the importance of seafaring and attract our youth.  including females, to consider a career in seafaring. We should aim at well-trained and educated officers capable of ensuring the safe operation of vessels.”

He highlighted that Nigeria had a young population capable of competing with other countries whose seafarers contribute significantly to their Gross Domestic Product (GDP).

He explained that NIMASA was investing in training and capacity-building programmes to enhance seafarers’ skills, welfare and employment opportunities.

In his keynote speech, the Minister of Marine and Blue Economy, Gboyega Oyetola, represented by the agency’s Director of Safety and Security, Mr Babatunde Bombata promised to organise more training for seafarers.

Oyetola assured support to NIMASA in achieving their mandate in line with President Bola Tinubu’s administration.

In her goodwill message, the President of the Women’s International Shipping and Trading Association (WISTA), Nigeria, Dr Odunayo Ani, appreciated Nigerian seafarers’ contributions to sustaining global trade.

She emphasised that adherence to safety protocols is crucial in seafaring and praised the efforts of marine engineers, ship captains, and everyone involved in this discipline.

Dignitaries present at the celebration included the Executive Secretary of the Nigerian Shippers Council, Pius Akutah, the Managing Director of the Nigerian Ports Authority, Mohammed Bello-Koko, President of Women in Shipping Africa (WIMAFRICA) Mrs Rollens Macfoy.

Others include President-General of the Maritime Workers Union of Nigeria, Adewale Adeyanju, President of the Ship Owners Association of Nigeria (SOAN), Mr Sonny Eja, President of the Nigerian Shipowners Association (NISA), Shola Adewumi, and Regional Director of Africa Mission to Seafarers, Cedric Rautenbach. (NAN)(www.nannews.ng)

AIC/AWA

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Edited by Olawunmi Ashafa

Bayelsa Govt mulls floating airline -Official

Airline

By Shedrack Frank

Amassoma (Bayelsa), June 25, 2024 (NAN) The newly appointed Managing Director, Bayelsa International Airport, AVM Nelson Calmday, rtd, has said that plans were on by the state government to float an airline.

Calmday said this on Tuesday in Amassoma, Bayelsa during his maiden meeting with top management staff, regulatory bodies and service providers of the airport.

The new MD said the state government had given a charge that the airport, henceforth, operate as a viable business entity.

According to him, in terms of service delivery, the airport can hardly be rated high, considering that six years after, only one operator-The United Nigeria Airline, makes two regular landings in Yenagoa weekly.

His words: “We need to collectively do better because the Governor, Duoye Diri, desires that this facility henceforth operates as a viable business entity due to a Bayelsa Air Carrier coming soon.

“I am not unaware of the challenges associated with becoming a Base Station, some of which include the establishment of a modest hangar for minor aircraft maintenance.

“Sufficient BFI’s for aviation fuel, provision of serviceable fire tenders and Crash Ambulances as well as Apron Hooks for mooring parked aircraft, to mention a few.

“Besides these however, the crux of the matter is in the structure, training and discipline of available manpower. It’s my priority that training becomes a norm,” Calmday said.

He said that unethical staff behaviour, such as absenteeism, disregard for employment and deployment rules, loitering and any other misconduct would no longer be tolerated.

At the maiden meeting was the Manager of the Bayelsa International Airport, Elizabeth Akpama. (NAN)(www.nannews.ng)

FS/JI

Edited by Joe Idika

Tinubu pledges to strengthen organised private sector, rebuild economy

Economy

By Joan Nwagwu

Abuja, June 25, 2024(NAN) President Bola Tinubu has pledged to strengthen the Organised Private Sector(OPS) and rebuild the country’s economy.

Tinubu made the pledge at the third edition of the Nigeria Employers Summit ,organised  by the Nigeria Employers’ Consultative Association (NECA) ,on Tuesday in Abuja.

The two- day  summit has the theme, “Economic Renaissance:Harnessing Government Reforms and Private Sector Agility”.

Tinubu ,represented by Mrs Nkeiruka Onyejeocha, Minister of State for Labour and Employment ,said the summit was timely.

According to him, government, since its inception, has rolled out several reforms aimed at rebuilding the economy and impacting organised businesses.

“It is without a doubt that this administration is committed to strengthening the private sector and rebuilding our economy.

“In our quest for economic renaissance and national renewal, we have had to embark on various reforms to navigate our nation back from the path of economic ruin.

“These reforms are not only necessary, but also very important if we are to preserve our national wealth and lay a solid foundation for our national development.

“This administration will continue to do all that is necessary to ensure the sustainability of businesses, attract foreign direct investment and make our nation the pride of Africa as it used to be,”he said.

He ,however, said that the current challenges were surmountable and that the government would do its best to surmount them.

“I want to assure you that this administration is doing all that is necessary to cushion the pains and make life better for all citizens.

“With our Renewed Hope 8-Points Agenda, I want to assure you of our continuous commitment to rebuild our nation and make it reclaim its pride of place, not only in Africa but also in the world.

“We will continue with various bold and strategic measures ,where necessary, to address the deep-rooted structural deficiencies and systemic challenges that have plagued the economy over the years.

“Despite our country’s complexities and some citizens’ resistance to change, we will remain resolute in our commitment to steering the nation toward stability and prosperity,”he said.

He commended NECA for its many contributions to the promotion of enterprise sustainability and competitiveness and indeed, national growth.

“We will continue to partner and collaborate with like-minded organisations that are focused on national development to drive our economy towards growth and sustainable development,”he added.

Speaking, Mr Taiwo Adeniyi, President of NECA ,said the theme of the summit aimed to deepen collaboration and create pathways towards maximising ongoing government reforms by leveraging the capacity and potential of private sector employers.

“We believe this will expedite the achievement of the 8-point “Renewed Hope” agenda of Mr President towards promoting predictable national development, and fostering inclusive growth.

“Since the beginning of this administration, government has embarked on an ambitious agenda of reforms aimed at revitalizing our economy.

“These reforms span various sectors, including agriculture, manufacturing, energy, and digital technology.

“It also includes significant measures such as the removal of fuel subsidy, the Forex unification policy, and ongoing omnibus monetary and fiscal reforms among others,”he said.

Adeniyi said the summit  served as a platform for dialogue, critical thinking, collaboration, and a call to action for every stakeholder.

He also said the summit was an opportunity to share insights, best practices, and innovative solutions that could drive our economic renaissance.

“We, therefore, call for government’s commitment towards  implementing the action points that will emerge from this summit’s discussions.

“We do not want this to be a mere talk shop, but a summit that fosters an improved socio-economic environment allowing businesses, irrespective of size and sector, to thrive,”he said.(NAN)(www.nannews.ng)
JAN/BHB

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Edited by Buhari Bolaji

Revenue
By Thompson Yamput
Lokoja, June 25, 2024 (NAN) The Kogi State Internal Revenue Service says the state’s Internally Generated Revenue (IGR) profile has risen from N6 billion in 2016 to N23.5  billion per annum.

Alhaji Sule Enehe, the chairman of the service, announced this in a stakeholders interactive session held in Lokoja on Tuesday.

Enehe explained that when he came on board as chairman in 2016, the revenue of the state was just about N6 billion per annum.

“But today, within eight years, the revenue profile has leaped to N 23. 5 billion annually helping the state government at providing the desired social amenities to the people.

“the service had in the last eights years transitioned to digital systems for efficient tax processes with a tax guide to simplify tax payments.

“This tax guide can enable tax players to make payments in the comfort of their homes.

“These feats are attributed to the collective efforts and contributions of every stakeholder involved, highlighting the importance of teamwork and community support in achieving financial growth,” he said.

The chairman said that the state government “is judiciously utilising the  monies being generated from tax in touching the lives of residents in the state.

“It is obvious the government has provided infrastructure in area of Health, Agriculture, education and Road projects”.

Enehe said that the stakeholders interactive meeting was aimed at collecting feedback from businesses regarding challenges being faced, with the goal of conveying the information to the state government.

The chairman further said that the meeting was also intended to help in the design of policies that would foster a more business-friendly environment, showcase how state funds are utilised.

Dr Olubunmi Ajayi, Director, Ministries, Departments and Agencies (MDAs) and Other Revenues, urged tax payers not to pay cash to revenue officials.

“Your not paying cash to tax officials will greatly help in eradicating all forms of illegality within the system.

“Our taxpayers remain our valued assets in generating the necessary funds for social and economic development of the state, as they perform their civic responsibility in paying their tax obligations,” he said.

The News Agency of Nigeria (NAN) reports that the theme of the session is “Continuous Engagement for Effective Tax Administration”.(NAN(www.nannews.ng)
TYC/KAY
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Edited by Kayode Olaitan

The Director-General of the DMO,  Patience Oniha

Debt

By Kadiri Abdulrahman

Abuja, June 25, 2024 (NAN) The Debt Management Office, says the rise in Nigeria’s public debt stock from N97.34 trillion in December, 2023 to N121.67 trillion in March is partly due to exchange rate fluctuations.

The Director-General of DMO, Patience Oniha, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

She was clarifying misconceptions about the recently released update of the country’s total debt profile.

She said that the securitisation of N4.90 trillion as part of the securitisation of the N7.3 trillion Ways and Means Advances approved by the National Assembly was also responsible for the N24.33 trillion increase in the debt stock.

According to her, there is also the interest rate, as well as new borrowing of N2.81 trillion as part of the N6.06 trillion provided in the 2024 budget.

She, however, emphasised that the debt stock included the domestic and external debt stock of the thirty-six states and the Federal Capital Territory (FCT).

“The total public debt as at March 31, showed that the total public debt in Naira terms stood at N121.67 trillion compared to N97.34 trillion as at December 31, 2023.

“While detailed information was provided on the data such as the split between external and domestic debt as well as the fact that the debt stock includes the domestic and external debt stock of the 36 states and the FCT, it has become imperative to provide some explanations.

“It is important to recognise the fact that Nigeria has undergone some major reforms which have impacted economic indices such as the dollar/Naira exchange rate and interest rates.

“These two, in particular affect the debt stock and debt service,” she said.

Oniha said that the increase in Naira Terms of N24.33 trillion between the fourth quarter of 2023, and first quarter of 2024, did not strictly represent new borrowing.

She said that the total external debt stock was relatively flat at 42.50 billion dollars and 42.12 billion dollars in the fourth quarter of 2023, and first quarter of 2024 respectively.

“The Naira values were significantly different at N38.22 trillion and N56.02 trillion respectively, representing a difference of N17.8 trillion.

“This explains the perceived sharp increase of N24.33 trillion in the total debt stock in the first quarter of 2024.

“The difference in the exchange rate for the two periods also explains why in dollar terms, the total debt stock actually declined in the first quarter of 2024 to 91.46 billion dollars,” Oniha said.

She said that the debt report was somewhat an improvement from the past, before President Bola Tinubu government.

According to her, if you discount FX impact, the debt is moderate and within normal limit.

She urged the Federal Government to prioritise fiscal retrenchment, while assuring that the various measures to attract foreign exchange inflows would increase external reserves and support the Naira exchange rate. (NAN)(www.nannews.ng)

KAE/EEE
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Edited by Ese E. Eniola Williams

Nigeria’s all-commodity group import index increases by 0.51%- NBS

Commodity

By Okeoghene Akubuike

Abuja, June 25, 2024 (NAN) The National Bureau of Statistics (NBS), has said the All-commodity group import index on average increased by 0.51 per cent in the first quarter(Q1) of 2024.

This is according to the NBS Commodity Price Indices and Terms of Trade for Q1 of 2024 released, in Abuja on Tuesday.

The report said the increase could be attributed to the changes in import prices mainly in the price of “Vehicles, aircraft and parts thereof; vessels, among others.”

“Others are mineral products; articles of stone, plaster, cement, asbestos, mica, ceramic; papermaking material; paper and paper-board articles.”

The NBS said the All-commodity group export price index on average also increased by 0.39 per cent points in Q1 2024.
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It said the increase was majorly attributed to an increase in the prices of mineral products; and products of the chemical and allied industries.

“Others are plastic, rubber and articles thereof; and wood and articles of wood, wood charcoal and articles.”

The report said the All Products Terms Of Trade (TOT) index on average decreased by 0.12 per cent points.

The TOT represents the ratio between a country’s export prices and its import prices.

The NBS said the All-region group export index increased by 0.39 per cent mainly due to positive changes in the prices of exports to all economic regions.

The report said the All-region group import index increased by 0.51 per cent points due to increases in import prices from all regions.

It said the All-region terms of trade on average decreased by 0.12 per cent.

The report said the major export destinations of Nigeria in Q1 2024 were France, Spain, The Netherlands, India and The United States of America. (NAN) (www.nannews.ng)

OKE/AMM

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 Edited by Abiemwense Moru