Oyetola assumes office as Minister, Marine and Blue Economy
*Pledges Responsible Management and Utilisation of Marine Resources The newly appointed Minister of Marine and Blue Economy, Adegboyega Oyetola, has assumed office with a pledge to build a responsible management that will ensure efficient utilisation of the nation’s marine resources. Oyetola who made this known on assumption of duty at the Ministry in Abuja expressed happiness at the honour accorded by Mr President to champion and chart a course for the the growth of marine resources, urging the management team to support him to deliver on Ministerial mandate. Oyetola observed that regarding the size of Nigeria’s blue economy, it cannot but be a significant player in the sector which is estimated to be about a $3 trillion globally. Furthermore, he said the blue economy has the capacity to contribute immensely to revenue generation and provide jobs for the unemployed, hence the need to properly harness it. Speaking on fostering and facilitating trade by making our inland waterways navigable, Oyetola said: “We must come up with practicable ways of ensuring that our Inland rivers and waterways are properly utilised, both in terms of cargo shipment and passenger transportation and this can be done by embarking on a wholistic dredging campaign for most of our strategically important waterways so as to make them navigable for the passage of goods and people”. In her welcome speech, the Permanent Secretary, Federal Ministry of Marine and Blue Economy/Transportation, Dr. Magdalene Ajani, promised a smooth working relationship with the Minister, stating that together they can move the Marine and Blue Economy forward and make it more impactful to the economy of Nigeria. Speaking on efforts made thus far, the Permanent Secretary stated: “We have done a bit in terms of Blue Economy in the country before now. There is a Committee that is being Chaired by the former Vice President working on the Blue Economy and there is an expanded Committee that brings in everyone that is within the waters, so now that we have a stand alone Ministry, we hope and desire that it will impact alot to the economy of the country and move our nation forward”
World Bank puts Nigeria’s GDP at $477.4bn in 2022
A new report by the World Bank Group showed that Nigeria’s recorded an estimated Gross Domestic Product of $477.4 billion in 2022. The report showed that the country ranks 18th position on the continental ranking of countries by GDP per capita for 2022. The 2022 ranking showed that Nigeria notched one point up from the 19th position it ranked in the previous year when the GDP stood at $440.8 billion. According to the World Bank’s latest data, Nigeria recorded a 5.7 per cent increase in its GDP per capita, which rose to $2,184 in 2022, from the $2,066 reported in the preceding year. In terms of nominal GDP, the country’s economic performance demonstrated remarkable resilience, registering an 8.3% nominal year-over-year expansion in 2022, in spite of the whirlwinds across the global and regional economy. Broadly analyzed, the World Bank’s report showed that the African economy slowed to 3.8% in 2022, dipping the continent’s nominal GDP to an estimated $2.75 trillion. In addition, the report Indicated that the Sub-Saharan region recorded a slow growth rate of 3.6%, in contrast to 4.1% recorded in 2021, with a projected growth rate of 3.1% in 2023, due to what the bank attributed to sluggish global economic growth, high inflationary pressure, and tough financial conditions exacerbated by the high debt profiles of the countries in the continent. A further analysis of the report in terms of GDP per capita, which is a more accurate measure of productivity in an economy, the continent’s economy recorded an average of $2,705 in 2022, indicating a 6.6% increase compared to $2,538 recorded in the previous year. The report further covered the top 10 countries in Africa based on GDP per capita in 2022 with Seychelles topping the ranking table with an impressive GDP per capita standing at $15,875, followed by Mauritius, which recorded a 12.7% upswing in its GDP per capita, which climbed to $10,216; and Gabon which came third with 2.1% increase in its GDP per capita to $8,820 in 2022. Others are in order of ranking, Botswana which came fourth, boasting an average GDP per capita of $7,738; Equatorial Guinea with a GDP per capita of $7,053 in 2022, representing a 6% decline compared to $7,507 in 2021; the 6th position in ranking was South Africa at $6,776 GDP per capita; Libya at number 7th with $6,716 GDP per capita; Namibia ranked 8th with $4,911 GDP per capita; Egypt followed with $4,295; and Algeria came 10th with $4,274 GDP per capita in 2022.
Revive idle wells to meet revenue shortfall, expert urges FG
Industry expert, Dr Victor Ekpenyong has urged the Federal Government to revive idle oil wells to boost oil production in order to meet revenue shortfalls. Ekpenyong, who is the Chief Executive of Kenyon International West Africa Limited, said this during an interactive session with journalists in Yenagoa, Bayelsa State. Kenyon International is a Well Control Services firm. Ekpenyong noted that vandalism and oil theft have hampered the country’s oil production and kept the nation from harnessing its full production capacity. He explained that oil production was being limited by breach of pipelines that evacuate crude from oilfields to export terminals. He noted that with the rebound of the Forcados Export Terminal which has been out of service, there will be an increase of export capacity by at least 350,000 barrels per day (bpd) when scheduled repairs on the export trunkline is completed in the next one week. Ekpenyong commended the Nigerian National Petroleum Company Limited (NNPCL) for ongoing repairs on major oil export pipelines, noting that upon conclusion of repair schedules, export capacity would rise significantly. He said that there was the need to revive idle assets to boost oil production to meet the Organisation of Petroleum Exporting Countries (OPEC) quota of 1.8 million bpd quota for Nigeria. Ekpenyong noted that there was existing production capacity to meet the shortfall in production from a little over one million bpd current output. “Reports available from NNPCL have it that repairs on Trans Forcados Export Trunkline is almost concluded and the Forcados Export Terminal will be up again and it has capacity to handle up to 400,000 bpd of oil export. “The sections of the Trans Niger Delta Pipeline (TNP), which feed the Bonny Crude Export Terminal, are also scheduled to be ready as well, so we need to revamp the idle wells to produce enough to meet our OPEC quota and earn more revenue,” Ekpenyong said. He noted that the country is yet to produce more and leverage the supply cuts occasioned by the Russian-Ukrainian crisis which has pushed up international crude oil prices. He noted that proposed divestment by the government from oil assets in non producing oil reserves would provide opportunities for investors to enter into partnerships with the government to increase oil production. “The efforts being made by the government to increase local refining is very massive. I learnt that the rehabilitation work at the Port Harcourt refinery has gone far for the President to promise that the plant will be back in December. “There is also ongoing work in Warri Refinery and these will increase local production of refined petroleum products and reduce imports and subsequent pressure on the naira at the foreign exchange market,” Ekpenyong said. He said that NNPCL remained the dominant importer of refined petroleum products saying the $3 billion facility being put in place by the government would enable more private sector players to augment the supply deficit.
Difficult but necessary reforms needed to ramp up tax revenue – JTB
For Nigeria to attain optimum tax revenue collection capacity across the Federal, States and Local Government tax authorities, the country must make hard but necessary reforms that would yield long term benefits. This was the position stated by the Chairman of the Joint Tax Board (JTB), Mr. Muhammad Nami, who is also the Executive Chairman of the Federal Inland Revenue Service (FIRS) at the 153rd Meeting of the Board which held today in Abuja with the theme: “Harmonization and codification of taxes at the National and Sub-national levels: Key to achieving a tax friendly environment in Nigeria.” Nami, while delivering his address to the Board stated that for progress to be made in taxation, tax authorities must continue to explore and adopt measures and innovative initiatives that will lead to the optimisation of tax revenue for all levels of government. “As the new administration’s attempt to address the many socioeconomic challenges facing the nation on many fronts, it becomes imperative for all the levers of State to shake-off any lethargic antecedents and focus on the goal of a national resurgence. “The unique and privileged offices we occupy as drivers of the nation’s tax administration processes presents us with a rare opportunity to take hard, but necessary decisions that are expected to yield long term benefits and add immense value to our collective prosperity as a nation. “In recent years, especially since the dawn of our current democratic dispensation, the importance of taxation has continued to be reiterated and reinforced by all, and the critical role that tax-revenue plays in funding government and governance cannot be over-emphasized. “However, as we continue to make progress in our unique model of taxation, it is appropriate that we continue to explore and adopt measures and innovative initiatives that will lead to the optimization of tax revenue for all the levels of government, in more efficient, more effective, more inclusive, and more sustainable ways. “It is only by achieving this, that our efforts as tax administrators can trigger the manner of activity required in the productive sectors of our economy, towards achieving the immense economic potentials that we are capable of,” Mr. Nami said. The Chairman of the Joint Tax Board further assured Executive Chairmen of State Revenue Authorities present that given the thrust of the current administration’s tax policy direction, the country was on the pathway to eradicating multiplicity of taxes as a core of its overall economic regeneration objectives. Chairman, Presidential Fiscal Policy & Tax Reforms Committee, Mr. Taiwo Oyedele, while delivering a presentation on the theme of the meeting highlighted that multiple taxation was causing low tax morale in the country, as well as discouraging investments, while creating room for corruption and making doing business difficult. The Presidential Fiscal Policy and Tax Reforms Committee Chairman further noted that the solution to the country’s revenue challenges is not to introduce more taxes, but to focus on the few taxes that are high yielding, noting that with these, tax authorities would be able to collect far more than is currently being collected. Oyedele stated that for the government to raise more revenue, it needed to get to a point where the total number of taxes collected at the Federal, State and Local government levels would be at a single digit. “We also need to clarify on taxing rights. We need to integrate tax collection functions—that is, all revenues that are to be collected must be collected by a single revenue agency. Government must also do well to fund our tax agencies well. We also need to harmonise revenue administration and simplify our approach to tax compliance,” Oyedele said. He further advocated for the country’s tax authorities to use more technology, review the country’s constitution and tax laws, as well revisit Nigeria’s concept of fiscal federalism.
Nigeria’s equities bounces back, gains N41bn
Transactions on the floor of the Nigerian Exchange (NGX) on Wednesday closed on a positive note, appreciating by N41 billion. The market capitalisation of listed equity appreciated by 0.12 percent to N34.973 trillion from N34.932 trillion reported the previous day. The NGX All Share Index also increased 75.16 basis points to 64267.36 points from 64192.20 points traded the previous day. A review of the investment showed that Nascon, Chams Plc, and Abbey Building Society led the gainers’ table in percentage terms, gaining 10 percent to close at N35.75 per share, N0.99 and N1.21 per share respectively. Skyways Aviation Handling followed with a gain of 9.96 percent to close at N28.15 per share, and Dangote Sugar Refinery added 9.93 percent to close at N32.65 per unit. On the other hand, Thomas Way and TIP topped the losers’ chart with a drop of 10 percent each to close at N1.17 and N0.72 per share respectively. UPL trailed with a loss of 9.78 percent to close at N2.49 per unit, Omatek fell by 9.76 percent to close at N0.37 per share, JohnHolt was down by 9.44 percent to close at N1.63 per share. Volume of trades declined by 431.313 million, representing 56.60 percent as investors traded 330.784 million shares valued at N4.269 billion in 6251 deals against 762.097 million shares worth N7.710 billion in 7935 deals. Trading activities on the shares of Transnational Corporation of Nigeria (Transcorp) led market activities with 58.829 million shares worth N209.186 million, FBNHoldings followed with an account of 27.951 million shares cost N502.759 million, Ecobank Transnational Incorporate traded 21.303 million shares cost N330.246 million, AccessCorp exchanged 20.697 million shares cost N34.178 million while Chams Plc traded 16.964 million shares valued at N16.135 million.
Nigeria’s FDI drops to $469m in 2022 – AfDB
The African Development Bank (AfDB) has said that foreign direct investment inflows into Nigeria fell to $469 million in 2022 from about $8.8 billion in 2011. Describing it as the lowest in a decade, AfDB’s Director General, Nigeria Country Department, Mr. Lamin Barrow, noted in Abuja that Nigeria’s private sector is hamstrung by policy inconsistencies and implicit taxation. According to him, “many private sector firms in Nigeria are overburdened byimplicit taxes; they provide their own electricity, sink boreholes to get access to water, and repair roads in their towns and neighborhoods.” Speaking on “Trade and Non-Oil: Changing the Narratives for Rapid National Development” at the 2023 Nigeria Employers’ Summit, Barrow said closer collaboration and dialogue between the Federal Government and the private sector is critical to policy making and position Nigeria as an ideal investment destination. The AfDB chief said that a vibrant and competitive private sector can accelerate diversification of the economy and boost exports. Over the years, successive administrations have mouthed economic diversification without matching it with action. He said that the unification of the exchange ratemanagement system and the removal of fuel subsidies, has shown that the government was ready to engage in bold reforms that will transform the country into an economic powerhouse. “If the Federal Government implements bold strategies to take advantage of investment and market access opportunities. Rising labor costs and technological upgrading in countries such as China, India, and Brazil offer an excellent opportunity to developing economies, including Nigeria, to attract FDI and diversify their exports,” he said. Barrow further said that trade offers a great opportunity to further diversify the Nigerian economy. According to him, with the coming into force of the African Continental Free Trade Area, Africa is becoming more integrated, with a larger market for exports from Nigeria. “Developing regional infrastructure and putting in place the requisite trade policies are a necessary condition for tapping opportunities in the regional and international markets. “A good starting point is the effective utilization of Trade Agreements to which Nigeria is currently a signatory. However, Nigeria’s trade policies should prioritize the promotion of value-added exports. “The significance of the non-oil exports in driving inclusive growth, sustainable development job creation, especially for the women and youth, cannot be overemphasized,” Barrow explained.
Development Bank builds capacity of 1,000 MSMEs
In continuation of its capacity development training programmes for Micro, Small and Medium Enterprises (MSMEs) in Nigeria, the Development Bank of Nigeria (DBN) has organised a one-day training for over 1,000 small businesses across six states in the North-East and North-West. The MSMEs were spread across Gombe, Maiduguri, Adamawa, Katsina, Sokoto and Kebbi states. The capacity training programme, which was conducted in each of the locations, had facilitators with experts in business management for small and medium-scale enterprises. A statement from DBN stated that the training focused on optimisation and development of skills, aimed at further strengthening the capacity of the beneficiaries to scale up their businesses. It also said the key objective of the training programme across locations, was to help the owners of the businesses develop their capacity and gain better knowledge of how they could access the DBN funding through the participating financial intermediaries (PFI). The Managing Director/CEO, Development Bank of Nigeria, Dr. Tony Okpanachi, commended the facilitators for bringing their expertise and experience to bear and expressed the optimism that the training would have a lasting impact on the participants and their businesses. He affirmed that the training was in line with the Bank’s unwavering commitment to strengthening the capacity of MSMEs in the country so that they can continue to contribute more to the economic growth and development of the country. Okpanachi said: “The strategic role of MSMEs as enablers of socio-economic development cannot be over-emphasised. A larger percentage of businesses in Nigeria are in the informal sector dominated by MSMEs. The MSMEs sector is a significant pillar of Nigerian economic growth; they make up 97 percent of businesses, generate six million jobs and contribute 50 per cent of the national GDP. “Small businesses are value-creators and they create wealth for individuals. At DBN, we are passionately committed to seeing MSMEs increase their capacity for growth and expansion, and being more sustainable so that together, we can continue to build a stronger economy for the benefit of all Nigerians.” The Development Bank of Nigeria through its numerous capacity training platforms has enriched the knowledge and capacity of MSMEs owners in the country through regular highly-enriching training initiatives and retooling, thereby positioning them for sustainable growth and expansion. One of the platforms is the annual DBN Entrepreneurship Training Programme (DBNETP) currently in its 5th Cycle and has benefitted over 2000 MSMEs across Nigeria who have been trained digitally and physically, leveraging partnerships and the DBN Learning Management System (LMS).
Consumer shopping, hospitality, boost UK economy
The UK economy bounced back in April after it was boosted by stronger consumer spending in shopping and hospitality. UK gross domestic product (GDP) increased by 0.2 percent for the month after a 0.3 percent fall in March, the Office for National Statistics (ONS) revealed. The latest figure was in line with forecasts for the month from economists. ONS director of economic statistics Darren Morgan said: “GDP bounced back after a weak March. “Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month’s strikes. “These were partially offset by falls in health, which was affected by the junior doctors’ strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry. “House-builders and estate agents also had a poor month.”