Cairo Meeting: We Seals $43.7bn Trade, Investment Deals —Afreximbank
Afreximbank says about 43.7 billion dollars worth of trade and investment deals were sealed at the just concluded Intra-African Trade Fair (IATF2023) held in Egypt. Kanayo Awani, Intra-African Trade Bank, Afreximbank Executive Vice-President, said this at the Post-Event Virtual News Conference held in Cairo, Egypt on Tuesday. Awani said the 43.7 billion dollars worth of trade and investment deals sealed was against the projected figure of 43 billion dollars which was set, describing the event as a success. She said the third edition of the IATF2023 attracted no fewer than 1,939 exhibitors, with 45 African countries represented. Awani said from the 45 African countries represented, 42 had pavilions, saying this was a remarkable achievement. She said that 16 non-African countries were represented at IATF2023, bringing the total number of countries to 61. “We did promise to come back and give you conclusive key indicators after doing the necessary audits. “In terms of participants of attendance both in-person/virtual, we ended up with 28,282. In terms of the number of exhibitors, I think we had announced 1,615 at the close of the trade fair but following our audit, it was 1,939. we had actually targeted 1,600.” She said that by their own estimation and standard set, the IATF2023 was a huge success because they exceeded many of their parameters. Awani said the trade fair was a platform used to connect buyers and sellers, saying we were aware that the contracts that were being negotiated had to be financed in one form or the other. “As Afreximbank, we ensured that financial institutions and non-banking financial institutions were part of the trade fair to provide the necessary financing and expand access to finance on the continent.” Awani said that the IATF2023 was a huge platform to access finance. “The IATF is not just a platform to grow intra-African trade but a platform for banks to grow access to finance.” The Afreximbank, working with the African Union and other strategic partners, inaugurated the Intra-African Trade Fair in 2018 as a key initiative to support the African Continental Free Trade Area (AfCFTA).
Nigeria’s Q3 GDP Grows 2.54% – NBS
In the third quarter of 2023, Nigeria’s Gross Domestic Product (GDP) grew by 2.54 per cent (year-on-year) in real terms. This growth rate is higher than the 2.25 per cent recorded in the third quarter of 2022 and higher than the second quarter 2023 growth of 2.51 per cent. In its Gross Domestic Report Q3 2023, released on Friday, the statistics bureau noted that Q3 performance was driven mainly by the Services sector, which recorded a growth of 3.99 per cent and contributed 52.70 per cent to the aggregate GDP. The agriculture sector grew by 1.30 per cent, from the growth of 1.34 per cent recorded in the third quarter of 2022. The growth of the industry sector was 0.46%, an improvement from -8.00% recorded in the third quarter of 2022. In terms of share of the GDP, agriculture, and the industry sectors contributed less to the aggregate GDP in the third quarter of 2023 compared to the third quarter of 2022. In the quarter under review, aggregate GDP stood at N60,658,600.37 million in nominal terms. This performance is higher when compared to the third quarter of 2022 which recorded aggregate GDP of N52,255,809.62 million, indicating a year-on-year nominal growth of 16.08%. The NBS noted that in real terms the oil sector growth was –0.85 per cent (year-on-year) in Q3 2023, indicating an increase of 21.83 percentage points relative to the rate recorded in the corresponding quarter of 2022 (-22.67%). Growth also increased by 12.58 percentage points when compared to Q2 2023 which was –13.43 per cent. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 12.47 per cent in Q3 2023. Nigeria recorded an average daily oil production of 1.45 million barrels per day (mbpd), higher than the daily average production of 1.20mbpd recorded in the same quarter of 2022 by 0.25mbpd and higher than the second quarter of 2023 production volume of 1.22 mbpd by 0.23mbpd. According to the NBS, “the sector contributed 5.48 per cent to the total real GDP in Q3 2023, down from the figure recorded in the corresponding period of 2022 and up from the preceding quarter, where it contributed 5.66 per cent and 5.34 per cent respectively.” The non-oil sector grew by 2.75 per cent in real terms during the period under review. This rate was lower by 1.52 percentage points compared to the rate recorded in the same quarter of 2022 and 0.84 percentage points lower than the second quarter of 2023. “The sector was driven in the third quarter of 2023 mainly by Information and Communication (Telecommunication); Financial and Insurance (Financial Institutions); Agriculture (Crop production); Trade; Construction; and Real Estate, accounting for positive GDP growth. In real terms, the non-oil sector contributed 94.52% to the nation’s GDP in the third quarter of 2023, higher than the share recorded in the third quarter of 2022 which was 94.34% and lower than the second quarter of 2023 recorded as 94.66%,” the report stated.
Transportation Minister Hails Maiden Lagos-Ibadan Freight Train Service
Minister of Transportation, Sen. Said Alkali, has said that the maiden trip of the Lagos-Ibadan freight train service marks a significant milestone in the country’s railway projects. He said in a statement issued in Abuja on Sunday, that the success of the operation also reinforced the federal government’s dedication to providing a robust transportation network to cater for Nigeria’s growing population. The maiden freight train departed from Apapa Port in Lagos on Thursday and headed to Ibadan, ladened with 30 units of 40-feet containers. Alkali stated that the successful operation of the container freight train reflected the meticulous planning, relentless efforts, and diligent execution by the Ministry of Transportation and its partners. He added that it served as a testament to the ministry’s unwavering commitment at realising the eight-point agenda of President Bola Tinubu’s administration, which prioritised the development of modern and efficient transportation system. The transportation minister noted that the Lagos-Ibadan railway project, a crucial component of Nigeria’s transportation infrastructure, held immense potential to revolutionise the movement of goods and people. He noted also that the completion of the rail project signified a major step in enhancing connectivity, boosting trade, and stimulating economic growth. Alkali expressed satisfaction with Thursday’s successful launch of the container freight train, hailing it as a significant achievement for the nation. “As the Lagos-Ibadan railway continues to expand its operations, it is expected to play a pivotal role in alleviating congestion on roads, reducing travel time, and facilitating seamless movement of goods across the country. “The successful initiation of the container freight train service signifies a promising future for the railway project, further solidifying its position as a vital backbone of Nigeria’s transportation infrastructure,’’ Alkali stressed.
Nigeria, France Sign Pact To Support Young Entrepreneurs, Boost Employment
The Federal Government on Friday signed an agreement with France on the Digital and Creative Enterprise (I-DISE) programme aimed at promoting employment opportunities in Nigeria. Minister of Foreign Affairs, Yusuf Tuggar and the Minister for Europe and Foreign Affairs of the Republic of France, Catherine Colonnade signed the bilateral agreement at the Ministry of Foreign Affairs in Abuja on behalf of both countries. The agreement was also witnessed by Bosun Tijani the Minister of Communications who represented the Vice President of Nigeria, Kashim Shettima. Tuggar said the I-DICE programme is an initiative of the Federal Government of Nigeria, spearheaded by the Office of the Vice President and aimed at promoting entrepreneurship and innovation in the digital technology and creative industry sectors. According to the minister, with a focus on job creation, the programme is set to significantly impact young Nigerians, by assisting them to create sustainable employment opportunities, develop high value-added industries and contribute to the development of the Nigerian economy. He said the programme would train two million young people, whilst encouraging them to structure their own ecosystem, through access to financing for the creation of innovative businesses and start-ups. Tuggar said the programme is being financed by the French Development Agency (AFD), the African Development Bank (AfDB), the Islamic Development Bank (ISDB) & the Bank of Industry (BOI). He said of the 600 million dollar value of I-DICE, the AFD is contributing 100 million euros (equivalent to $116 million). He added that the programme would also receive funding and support from the private sector and institutional investors adding that the Bank of Industry, as the Implementing Agency, will coordinate the day-to-day activities of the project. Colonnade thanked all the partners and co-financers including the l’Agence Française de Développement, bien sûr. She said the purpose of this ambitious programme is to support young entrepreneurs and innovators. She added that the programme will promote the employability of Nigerian youth, enable Nigeria to boost the capacities of its very promising digital technology and creative industries and help thousands of young Nigerian entrepreneurs to unleash their talents. “Those digital technology and creative industries have indeed enormous potential to create jobs and spur economic growth in Nigeria. “We are very pleased that the French Agency for Development is stepping into these sectors, enabling us to scale up significantly our actions through the I-DICE programme,’’ she said. According to her, the programme is expected to include nearly two million youth in the training sessions of which 40 per cent would be women. “The programme will create more than 65,000 start-ups, 150,000 direct jobs in the technology and creative industries sectors and approximately 1.3 million indirect jobs.’’ Speaking on behalf of the vice president, Tijani said Shettima champions youth development and the Nigerian government’s efforts to boost the employability of young people by focusing on promising careers in the digital, cultural and creative industries. “As part of our efforts to stimulate the growth of the Nigerian economy and mainstream the application of technology in critical sectors, we welcome the support of the French government as they collaborate with us to leapfrog technological advancements for the benefit of our startup ecosystem. “This funding from the AFD for the I-DICE programme is a testament to France’s historical commitment to the growth of startups which is evidenced by its position as a leading startup destination in Europe”.
Capital Markets Can Bridge Africa’s Infrastructure Deficit – Shettima
The Vice President Kashim Shettima has said that the infrastructural deficit in the West African sub region is better tackled from inside and not through foreign borrowing alone, and that the job of the capital market in Nigeria and across the region is therefore cut out for it and this extends to Africa at large. Shettima stated this at the opening ceremony of the 3rd West Africa Capital Market Conference (WACMaC) with the theme: “Infrastructural Deficit and Sustainable Financing in an Integrated West African Capital Market” held Wednesday in Lagos. The Vice President, who was represented by Mr. Tope Fasua, Special Adviser to the President on Economic Affairs in the Office of the Vice President of the Federal Republic of Nigeria, said the centrality of capital market to Nigeria’s development trajectory especially to the evolution of corporate sector, industries and most importantly infrastructural development cannot be over emphasized. He added that it is a time of intense competition among nations and resources, and with advancement in technology, nations are able to reach nations with their products just as businesses have their fingers in billions of pockets the world over. In his opening remarks, Director General of the Securities and Exchange Commission and Chairman of West Africa Securities Regulators Association, WASRA, Mr. Lamido Yuguda stated that the Conference (WACMaC) was conceived as a platform to address crucial issues related to the orderly growth and development of regional and continental capital markets and jointly hosted by WASRA, the Economic Community of West African States (ECOWAS), the West Africa Capital Market Integration Council (WACMIC), and the West African Monetary Institute (WAMI). Yuguda said, “In 2010, the establishment of the West African Capital Market Integration Council (WACMIC) marked the inception of our collaborative effort to create a seamless and unified capital market within West Africa. Five years later, the formation of the West Africa Securities Regulators Association (WASRA) further solidified this commitment to harmonizing the regulatory environment for financial securities issuance and trading. “WACMIC and WASRA bring together the securities exchanges, central securities depositories and commissions of the sub-region, comprising Cape Verde, Ghana, Nigeria, and the Union Economique et Monétaire Ouest Africaine (UEMOA), with Morocco as an observer member. Our mission, as outlined in the ECOWAS Commission Treaty, is to facilitate the issuance and trading of financial securities across the region,” he said. In an address, Executive Governor of Lagos State Mr. Babajide Sanwo-Olu said the co-operation between the various bodies fortifies the bedrock of the W/African region fostering a collaborative spirit among member states. Sanwo-Olu said governments are actively aware of the imperatives of addressing infrastructure deficit and sustainable financing in the region. He said the theme of the conference is especially apt for the moment as across the sub region, modern infrastructure such as roads, rails, ports, fibre optics connectivity power etc. are largely inadequate. “These perennial inadequacies have hindered the economic growth of our various nations and economic development of our people. It behoves therefore on us to deliberate on ideas, financial strategies that can bridge these infrastructural gaps, enhancing the quality of life of our people and propelling our economy to greater heights,” the governor added.
Nigeria, Angola Strengthen Bilateral Economic Ties
Nigeria and Angola, in an effort to enhance economic growth and promote bilateral trade, have strengthened their cooperation. This was revealed during the inaugural Angola-Nigeria Business Forum held in Abuja recently. Speaking during the business forum in Abuja, the Secretary of State for International Cooperation and Angolan Communities, Domingos Lopes, who represented the Minister of External Relations, Angola, His Excellency Téte Antonio, stated that Angola will invest more in strengthening economic and commercial relationship with Nigeria in other to gain vast experience in the diversification of economic production. Angola’s Ambassador, Mr. Jose Bamoquina Zau, highlighted the determination to bring a significant number of Angolan investors to Nigeria, fostering strong partnerships in various sectors, including manufacturing, mining, oil and gas, commerce, tourism, and education. Nigeria’s Minister of Information and National Orientation, Alhaji Mohammed Idris, affirmed Nigeria’s eagerness to support Angola’s domestic and foreign aspirations, expecting reciprocity. An 8-man Angola-Nigeria Business Council was inaugurated during the event. During her vote of thanks, the president of the Angola-Nigeria Business Council, Fifi Ejindu, said the council was established to serve as a driver for economic cooperation between the two countries, with the private sector of both nations taking the lead. She said, “We will continue in the council to seek opportunities for investment and support entrepreneurship on a global level. So, the job has just begun, but I assure you that we are very committed to this cause.”
Solid Minerals Will Be Nigeria’s Biggest Revenue Earner –Alake
The Minister of Solid Minerals Development, Oladele Alake, has said the administration of Bola Ahmed Tinubu is committed to ensuring that the solid mineral sector becomes the biggest revenue generation hub of the country. He said for the present administration to achieve its vision of economic rejuvenation, all hands must be on deck. Alake said, “We have recognised the fortunes of the oil sector, and we are determined to ensure that the solid minerals sector is the Noah’s ark that would take us out of the deluge of economic challenges that Nigeria currently faces.” Speaking during the 22 Annual General Meeting and International Conference of The Nigerian Society of Mining Engineers in Kaduna, Minister Alake enjoined all the stakeholders to be patriotic, saying that the president is determined to take the nation out of the wood. Alake stated that the seven point agenda of the present administration is geared towards promoting the public private company that will galvanise financial and physical access of government in the sector. “It is now that our country needs patriotic and scientific contributions more than any other time, where all hands must be on deck to realise the vision of the Tinubu led administration, aiming at making solid minerals the biggest revenue generation hub among all sectors in the economic structure of Nigeria. “I wish to enjoin your society to be seen and heard in this historic process of rejuvenation and resurgence of the sector that will mature hitherto; our doors are open to ideas and proposals, and we shall re-evaluate all of them and shall reflect with our professional alacrity,” the minister said. Meanwhile, the Nigerian Society of Engineers said that Public Private Partnership (PPP) concession will make the private sector concessionaire responsible for full delivery of specified production and infrastructure services. “Government should intensify efforts in providing an enabling environment to attract investors into the mining sector for PPP agreement especially as it concerns fully explored strategic mineral deposits,” the Society advised. In its communiqué issued at the end of the AGM, the society tasked the federal government on Public Private Partnership, while also urging government and private investors to ensure due diligence before consummating any form of agreement. According to the communiqué, “the government should make deliberate efforts in implementing established roadmaps to fast- track the development of the minerals industry.” In the communiqué jointly signed by the President and Secretary General of the Society, Eng. Benson Jatau and Engineer Tony Ojile, enjoined the government to embrace PPP in its bids for industrial development in order to attract private expertise for service delivery enhancement. The duo however, called on the ministry of solid minerals development to as a matter of urgency resolve the challenge of state interference with the ministry statutory regulatory functions, as otherwise will erode the authority of the minister and also has the tendency of driving away private mining investors.
The Fintech Revolution: Transforming MSMEs and Financial Inclusion in Nigeria
Fintech has emerged as a transformative force in Nigeria, reshaping the financial landscape and ushering in an era of unprecedented financial inclusion. Among its many impacts, perhaps the most noteworthy is its role in fostering the growth of Micro, Small, and Medium-sized Enterprises (MSMEs), which are the backbone of the Nigerian economy. Fintech has undeniably improved financial access and penetration across Nigeria. By introducing innovative solutions like mobile banking, digital wallets, and agent banking, it has reached underserved populations that traditional banking services could not. Not only has this expanded access, but it has also brought down transaction costs, making financial services more affordable for all. One of the remarkable achievements of fintech in Nigeria is the transformation of payment systems. The proliferation of mobile money platforms and digital payment solutions has revolutionized the way transactions are conducted. Nigerians can now seamlessly make payments, transfer funds, and settle bills through their mobile devices. This has significantly contributed to the adoption of cashless transactions, reducing the risks associated with physical cash. However, the real success story of fintech in Nigeria lies in its impact on MSMEs. These enterprises, often struggling to access traditional financial services, have reaped unparalleled benefits from the fintech revolution. Fintech platforms have bridged the financing gap that has historically plagued MSMEs. Through peer-to-peer lending and crowdfunding, they can secure much-needed capital for their businesses. This has not only injected much-needed funds into these enterprises but has also fueled entrepreneurship and innovation. Beyond financing, fintech has streamlined MSME operations. Tools such as accounting software, digital marketing platforms, and supply chain management systems empower these enterprises to operate more efficiently and compete effectively with larger players. Moreover, e-commerce platforms, enabled by fintech, have expanded their reach, allowing MSMEs to tap into a broader customer base. Risk management is another critical aspect where fintech has made substantial contributions. Fintech solutions offer valuable risk assessment tools, enabling MSMEs to make informed credit decisions. This is essential for ensuring the long-term sustainability of these enterprises. However, while the impact of fintech in Nigeria is undeniable, it is essential to address the challenges that come with this rapid transformation. Fintech regulation in Nigeria is still evolving, requiring a delicate balance between promoting innovation and providing effective oversight. The rapid growth of fintech adoption has also given rise to escalating concerns about cybersecurity. Robust measures are required to protect financial data and services from cyber threats. Furthermore, addressing financial literacy gaps remains a critical challenge. Not all segments of the population possess the necessary skills to fully utilize fintech services, emphasizing the need for comprehensive educational initiatives. Overall, the impact of fintech in Nigeria extends beyond improved financial penetration; it is reshaping the fortunes of MSMEs, introducing a new era of financial accessibility, efficiency, and innovation. As the fintech ecosystem in Nigeria continues to mature, its contribution to economic growth and development is poised to become even more profound. Nevertheless, addressing regulatory, cybersecurity, and educational challenges will be instrumental in sustaining and maximizing these benefits. The revolution has the potential to propel Nigeria into a new era of economic prosperity, and it’s imperative that stakeholders work together to overcome the associated challenges and ensure the continued success of this dynamic industry.
SFTAS: Gombe State Attracts N26bn World Bank Grants In 4 Years – Commissioner
Gombe State received N26 billion as grants on its achievements under the performance-based grant component of the World Bank-assisted States Fiscal Transparency, Accountability and Sustainability (SFTAS) programme in four years. The Commissioner for Finance and Economic Development, Mr Muhammad Magaji, made this known in Gombe shortly after the inaugural State Executive Council meeting. Magaji said that the grants were attracted as a result of the Fiscal Transparency, Accountability and Sustainability (SFTAS) programme reforms implemented in the state. “The various reforms initiated by the Gov. Inuwa Yahaya made the state transparent enough to attract such grants. “The grant has helped the state government execute a good number of projects from infrastructure to improved healthcare amongst others which had impacted positively on the lives of the people of the state. “We were able to implement the SFTAS reforms and earned over N26 billion for Gombe State in grants. “The grant is between 2019 and 2023, that’s the first administration of Gov. Yahaya and it had helped in executing good projects for the benefits of the people,” he said. This, he said, means Gombe state is more transparent, accountable and whatever we are doing is out in the public for people to see and we are not hiding any skeleton. “We have initiated reforms and abided by them. Our account books are there for everyone to see according to the national chart of accounts. “We publish our annual accounts for the state government. Our budgets are in order and also published on time and regularly for everyone to see.” He also added that the state government had adopted the SFTAS requirements that ensured that the state cleared up its arrears while paying contractors on time. The commissioner said the reforms had essentially helped the state government to continue to move forward in the transparency index. “We were also able to reform a lot of areas in governance and we achieved a lot making Gombe the first in ease of doing business, ranking Gombe in the transparency index from 36 to number seven. Magaji said that the state government going forward would concentrate efforts at driving in more investments that would lead to establishment of industries and creation of jobs for youths in the state. The SFTAS programme is a hybrid with two components of activities that support Nigerian states to achieve the key result areas of the programme. These are a performance-based financing component for state governments, which will be implemented as a PforR; and a technical assistance (TA) component for states and selected national-level institutions, which will be implemented as an investment project financing (IPF). The programme also supports the full and sustained implementation of a strategic subset of reforms from the FSP and the open government partnership (OGP) commitments that are implemented at the state-level. The programme also provides performance-based financing on an annual basis to states which have been verified through the annual performance assessments (APA) as having: (1) complied with the annual eligibility criteria; and (2) achieved the annual disbursement linked results.
Blue Economy Can Provide 350m Jobs If Harnessed Properly —NIMASA DG
The Director-General, Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Bashir Jamoh has posited that Nigeria’s blue economy has the capacity to offer 350 million jobs if adequately harnessed. Jamoh, who was represented by the Acting Coordinator of NIMASA, Abuja Office, Hajia Rakiya Lamai, said during the NIMASA Special Day at the 18th Abuja International Trade Fair, Abuja. According to him, Nigeria’s vast under-utilised blue economy offers huge opportunities for growth and development to overcome its present economic challenge. “The blue economy has enormous potential as it offers the country the opportunities of 350 million new jobs if adequately harnessed. “Ocean resources like fishes, shrimps and other sea foods have not been satisfactorily harnessed, just as ship repairs are done in neighbouring countries and in faraway Turkey because the facilities are lacking locally. “With a combination of modern technology, relevant laws and support from the Federal Government, relevant agencies and stakeholders, disbursement of CVFF Funds, NIMASA is working to fulfill its mandate of regulating operations in the maritime industry,” he said. He said NIMASA was intensifying efforts to secure the Nigerian maritime environment and develop indigenous capacity for shipping expansion to provide value addition for sustainable growth and development of the Nigerian economy. Jamoh further said waterways expansion would be a much better incentive than tax waivers as it would encourage more Foreign Direct Investment (FDI) and private sector involvement in the maritime transport business. According to the NIMASA boss, moving toward waterways expansion will boost Port services and encourage the much-needed development in the industry. “While we await a cohesive policy to fully kick into gear, we must all become ‘Blue Ambassadors’ (Advocates for the Blue Economy). “The Blue Economy is every Nigerian’s Economy; the Media, Civil Society and other non-state actors, all have a role to play in galvanizing greater national awareness and participation. “We must rethink our waters, we need a total rethink from a ceremonial view; events such as Argungu Fishing Festival as well as others which must be redesigned and repackaged from the standpoint of the blue economy,” he said. He said efforts ought to be doubled to banish sea blindness amongst Nigerians and make seaward and sea-related activities more mainstream and attractive. He added that a Public Private Partnership (PPP) ought to be harnessed for maritime cluster development.