Dangote, the president of the pan-African conglomerate, the Dangote Group, lamented on the current status of the Nation’s economy. He said this while delivering a paper on Promotion of Local Manufacturing and Poverty Reduction In Nigeria: The Private Sector Experience and Policy Options. Nigeria's foremost entrepreneur lamented: “It is a curious paradox that Nigeria, Africa’s largest oil producer, and the largest economy on the continent, also has one of the highest levels of poverty. It is estimated that more than 100 million out of a population of 187 million Nigerians, live below the poverty line.”
Quoting a United Nations (UN) report, Dangote said youth unemployment rose to 42 percent in 2016 with many graduates combing the streets in major cities such as Lagos, Kano, Abuja and Port Harcourt in search of often-elusive white-collar jobs while for some who are employed, their situation can best be described as that of under-employment, as they are underutilised and poorly paid.
This development, he posited, no doubt, has serious security implications, as evidenced by the high rate of social ills plaguing the nation.
“The spate of kidnappings, intermittent vandalism of petroleum pipelines in the Niger Delta, and the protracted insurgency in the North East, are all fuelled, to a large extent, by the high level of endemic poverty in the country.” Today, Nigeria is currently facing economic recession occasioned by fall in global oil prices. Militant activities in the Niger Delta, which have reduced oil production by a third, and the increasingly weak national currency, the Naira, have also affected the economy drastically.
“High food and fuel prices, a squeeze on foreign aid, and falling diaspora remittances have also worsened our precarious economic situation. Distinguished participants, we do need to think out of the box, to get out of the woods.”
However, to move out of the current economic quagmire fast, Dangote canvassed for the removal by government, some of the barriers that hinder the growth of the non-oil sector.
One of the ways according to him is for the Government to create an enabling environment that will encourage both local and foreign investors to set up businesses by granting tax holidays, improving the state of infrastructure in the country, and providing more access to credit facilities.
“The Central Bank of Nigeria (CBN) should also step up its interventions in the area of improving funding for small and medium scale enterprises (SMEs). All these will create jobs and raise the standard of living of the people.”
Dangote explained that unemployment arose basically because job opportunities were not being created fast enough to match the ever-increasing work force attributing this to the effects of many years of de-industrialisation in the country.
Further advising on the way out of recession, Dangote recalled his days as the Chairman of the National Committee on Job Creation, which was set up in 2010 to address the unemployment situation in Nigeria, saying together with his committee members, they identified to identify priority areas for job creation.
“Some of these areas include micro, small and medium scale enterprises (MSMEs), agriculture and agro-allied industries, manufacturing, entertainment and vocational skills. I believe we can create new opportunities for MSMEs by linking them up with larger enterprises, through industry clusters.
“Since a large number of employers in the MSMEs sector are informal family-owned businesses, they can be trained to become more proficient through various capacity building initiatives”, he stated.
I believe we can create new opportunities for MSMEs by linking them up with larger enterprises, through industry clusters.
President Muhammadu Buhari has disclosed that the federal government is planning to launch a $10 billion infrastructural investment programme in the Niger Delta.
He made this known on Thursday in Abuja during the unveiling of the Seven Big Wins roadmap, a short to medium term strategy framework to grow countryâ€™s oil and gas sector.
president said he would be holding a crucial meeting with leaders from the
region next week Tuesday to dialogue on a number issues as part of efforts to end the agitations from the oil-rich region.
The region has been a hotbed of crises for some time, particularly from armed groups led by the Niger Delta Avengers pushing for more share of the oil resources from the area.
Although the massive drop in global crude oil prices plays a significant role in the crisis, attacks on oil facilities by militant groups have worsened the situation, resulting in cut by almost half of the countryâ€™s crude oil output and exports.
From an average of over 2.1 million barrels production capacity a few years ago, oil production has since been run down to less than 1.1 million barrels, with the critical export facilities, including the Forcados export terminal constantly shut down due to incessant sabotage.
The president said the government was fed up with the situation and was committed to reverse the trend, by ensuring security in the region.
â€œOur target is zero militancy by middle of 2017, and an incident reduction in the region by 90 percent by 2018.
â€œWhatever shutdown experienced by middle of next year, we expect it to be production stoppages and not militancy issues. We must resolve current militancy problems and bring back oil production to 2.2 million barrels per day.â€
He said government was also looking at the amnesty programme, which is winding up in about one year, particularly in the areas of coastal patrol, Niger Delta paramilitary type organizations, to absorb some of the trained hands from the programme as well as funding for those who want to start up their own businesses.
The deputy Head of EU Delegation in Nigeria, Mr Richard Young has disclosed that an average of 83 Nigerians cross illegally from Nigeria to Europe, daily, via the Mediterranean. He said this at a media workshop in Abuja. This was according to the data by the European Union shows.
The daily figure was extrapolated from the 22,500 illegal Nigerian migrants that the EU said crossed the Mediterranean Sea to Europe between January and September this year.
This figure in the first 9 months of 2016 is against the 23,000 who crossed in the whole of 2015.
Mr. Young expressed concern that the number of Nigerians taking dangerous adventure through Mediterranean to Europe within nine months in 2016 was higher than those who did same throughout 2015.
According to him, there has been huge increase in migrants crossing border without the right travel document to Europe from all over the world.
â€œIn 2014, the number of people traveling irregularly into Europe clinched 280,000 people; in 2015 it rose to 1.8 million in 2015.
â€œFrom January to September 2016, the number is about 420,000; we are expecting that the number will rise to 800,000 before the end of the year.
President of National Labour Congress, NLC, Mr. Ayuba Wabba, yesterday, appealed President Munammadu Buhari to consider increment in minimum wages from N18, 000, saying â€œthis is the logic used by United State to address recession.â€
Mr Wabba, who made the appeal in an interview with Vanguard after presenting N400, 000 Cheque to wife of late Vanguard deputy photo-editor, Mr. Tunji Oyeleru at the Airport Hotel, Ikeja, argued that the economy cannot return to its former state unless the citizens have purchasing power.
The NLC president said â€œThe state of the countryâ€™s economy requires that we increase minimum wage. We need to empower the people to buy and sell. If the economy is at standstill and people cannot buy, the economy cannot grow.Read More
Chief Audu Ogbeh, the minister of agriculture has said that the Federal Government will spend N30 billion to develop the biggest agro-industrial hub in West Africa.
The statement was made on Tuesday when he visited the 15,000 hectares of land to be used for the hub in Kwali Area Council, Federal Capital Territory.
He clarified that the first phase of the project would focus on improving road network in the area, construction of lakes and dams, soil testing, to enable farmers to know where to grow what.
According to him, some of the money to be used in the development of the agro hub will come from support funds.
The minister said that no fewer than 3,000 youths would be engaged in the project which is expected to boost agricultural production.
He listed some agricultural produce to be grown and processed in the farm, to include vegetables for local consumption and exports, rice, soya beans, shea butter.
“A time is coming when this business of cattle roaming around will stop and we will not allow anybody move life cows.
“We are looking at spending between 10 to 30 billion naira within the next 3 to 4 years for this massive project; we want young people to subscribe to this project,’’ the minister said.Read More
Mrs Sola David-Borha, the Chief Executive Officer, Stanbic IBTC Holdings Plc was at the 2016 Stanbic IBTC Leadership forum held in lagos recently. Mrs David-Borha discussed agriculture extensively and stated that agriculture involved very high risks even as the Federal Government is looking towards diversification through the sector. " Despite negative growth in several sectors of the economy, agriculture was the only sector that grew by 4.5 per cent, stating that with renewed focus, the sector is capable of helping the Nigerian economy wriggle out of recession.
She further noted that "what the comercial banks, central banks, together with the state government have been able to do, is to come together and under the Nigerian incentive Risk Base sharing model, share the risk associated with agriculture, so that 100 per cent of the risk is not one party like the bank. When the risk is shared, it is easier for the banks to lend agriculture and since the module has been put in place, the amount of bank lending agriculture sector has increased and continues to increase. The key is sharing the risk.
For instance she said, CBN would guarantee to take part of the risk in addition that the apex bank also provided single digit intrest rate lending agriculture, which is also important because borrowiibg at 18-20 per cent from mutual financing is diffcult. We intend to continue to support the agricultural sector because it is critical for the economic growth of this country. The three sectors we are focusing on is agriculture, oil and gas.Tthese three sectors we beleive, are critical to our eceonomy.
We all know that agriculture is capable of creating millions of jobs across the entire value chain, drive export and much needed foreign exchange. i think the real challenge for us is unlocking opportunities that exist and making everything that we have been talking about a reality so that agroculture will be contributing to GDP across all its value chain. It is not for the fainthearted, but requires capital, patience, commitment to see it through, adding that the new drive into agriculture will go a long way in supporting federal government towards the drive to economic diversification.Read More
There are some people who are expert savers. They seem to always have enough money for that rainy day.
But putting cash aside remains a challenge for many of us, even though we all know that calamities happen – puppies get sick, jobs get lost, hurricanes damage homes. And maybe, just maybe, we’d like to retire someday.
It all takes savings. Yet many of us are woefully unprepared. In a 2015 Federal Reserve Board survey, 47% of respondents said they could not or would need to borrow or sell something to cover an unexpected $400 bill. That’s a scary statistic, and it poses the question: What can we do to strengthen our abilities to save? What do successful savers do?
Here are few habits these individuals typically have that you could implement.
1. They Make Saving 15% to 20% a Priority in Their Budget
This means, even if they have cook more homemade meals, stay in some nights to watch movies with friends, or walk instead of paying for gas and carfare, they carve out where they can save and stick to it.
“You should be saving 15% to 20% of your gross income,” Jay Hochheiser, certified financial planner and president and owner of Hochheiser & Deutch, said. “Every salary check, every draw check, every time you get paid you should be putting aside and saving 15-20% of the gross amount you were paid before taxes and other deductions were taken out.”
2. They Pay Themselves First
Hochheiser said he often sees his clients ignoring one of the most basic fundamental rules to saving: they aren’t paying themselves first. It can seem heartless to tuck money into savings that could be spent to help someone else, but in order to save effectively, you need to stick to your savings plan. Have 15% to 20% automatically pushed into a separate account each month by setting it at your bank, then pretend the money doesn’t exist. You’ll likely need it sooner than you think: 49% of Americans surveyed retired earlier than they ever expected to due to job losses, illnesses or caregiving responsibilities, according to a retirement confidence survey from the Employee Benefit Research Institute.
3. They Track Their Expenses
Do you really know where your money is going? Make a list of the frequent bills you need to pay monthly, annually, and sporadically, then track everything you’re spending on each month, according to Tracy Layden, a certified aging-in-place specialist and marketing manager at Alert-1, a medical alert company.
“Go through your charges and think about if you really need the thing you bought. Is there any way to spend less on that item? Small, regular charges (such as your daily coffee) can add up. Try making your coffee at home instead,” Layden said. And keep an eye out for sneaky recurring charges for services you no longer use, she said.
Then make a list of your financial goals so you know what you’re saving for. Make them specific, quarterly and yearly.
“Just the act of writing them down will increase the likelihood you’ll achieve them,” Layden said. “Put them in your wallet and display them by your desk so you always have them in mind.”
An added bonus is that you’ll soon have money to pay all of your bills on time, which gives you a better credit score and works to your advantage when you need a loan or want a mortgage to buy your dream home. (You can keep track of two of your credit scores for free, updated every two weeks, on Credit.com.)
4. They Make Automatic Increases to Their Savings
Sometimes, it lessens the squeeze if you slowly tighten your belt.
“We know we need to save a lot of money for retirement; but knowing that very fact can make it even harder to get started,” Lauren Zangardi Haynes, a certified financial planner at Evolution Advisers, said.
Rather than diving in and getting started, many of us do nothing and hope the problem will magically go away. Start saving a small amount now and set a reminder on your phone every two to three months to increase your savings by a small amount until you reach your savings target, she said.
“For example, sign up for your 401K and put 2% of your pay in the account. In two months, sign into your 401K account and increase your contributions by 1% of your pay,” Zangardi Haynes said. “Keep this up until you reach your goal, for example, putting 12% of your pay into your 401K.”
Also save your unexpected money such as tax refunds, credit card rewards and reimbursements, and bank half of your raise, she said.
5. They Change Their Mindset
Successful savers stop pining for all the things they can’t buy, and focus on why they are saving.
“Acknowledge your thoughts on what you may be missing out on and then turn your thoughts to what you are gaining by having more savings,” Zangardi Haynes said. “Are you saving for a special vacation? A dream home? Financial freedom? These are all worthy goals and you should be proud of your progress.”Read More
British Pound banknotes at a money exchange shop. The pound plunged more than six percent to a fresh 31-year low against the dollar on October 7, 2016, its latest slump after Britain firmed up details on the timing of its exit from the European Union.(AFP)
The London stock market rose at the open on Friday, buoyed by a “flash crash” in the beleaguered British pound, but Frankfurt and Paris held steady before key US data.
In initial trade, the British capital’s benchmark FTSE 100 index of top blue-chip companies rose climbed 0.7 percent to 7,047.29 points, as the crashing currency boosted the outlook for exporters.
In the eurozone, meanwhile, Frankfurt’s DAX 30 slid 0.2 percent to 10,549.69 points and the Paris CAC 40 was flat at 4,480.10 points compared with the close on Thursday, ahead of key US non-farm payrolls data.
In earlier Asian trading hours, the pound faced a “flash crash” on a computer-generated sell-off in the beleaguered currency, as tough talk from French President Francois Hollande underscored the perils for Brexit-bound Britain.
Sterling fell off a cliff to strike a 31-year low at $1.1841 before rebounding sharply. The euro also hit a seven-year-high 94.15 pence, before easing slightly.
Foreign companies listed in London have seen their shares rocket by the pound’s tumble as it boosts their earnings when they are converted into sterling.
“The pound had a rollercoaster ride overnight,” said City Index analyst Kathleen Brooks.
“The driver of this massacre: apparently algorithms reacting to comments … from French President Francois Hollande about the UK’s potential hard Brexit.”
Hollande sent one of the strongest warnings yet that Britain will have to pay a heavy price for leaving the EU, adding to deep concern in financial markets
Manufacturers and other private sector operators have revealed a gloomy picture of how the foreign exchange restriction placed on 41 items by the CBN had affected operations in the business sector.
They said that since the restriction order was placed last year, about 272 firms had been forced out of business, 50 of which were manufacturing companies.
While some affected manufacturers have relocated to few neighbouring countries, the Manufacturers Association of Nigeria (MAN), said at least 222 small-scale businesses have closed shops, leading to as much as 180,000 job losses.
As a result of the negative impact of the policy on the operations of manufacturers, stakeholders in the economy including MAN, the National Association of Small and Medium Enterprises and the Lagos Chamber of Commerce and Industry, have all insisted that the policy must be reviewed.
They spoke at the launch of a report on manufacturing sector by NOI Polls Limited, in collaboration with the Centre for the Studies of Economies of Africa.
The Director, Economics and Statistics, MAN, Mr. Ambrose Oruche, lamented the unavailability of productive inputs, stating that this was the major challenge confronting manufacturers.
He attributed the problem largely to the ban by the CBN on certain items from acessing the official window of the forex market, adding that the current operating environment was too harsh for many manufacturers to continue to operate.
He wondered why the CBN and the Federal Government kept coming out with what he described as conflicting polices, noting that this was affecting the growth of the manufacturing sector.
He said, “Presently, about 50 manufacturers have closed shop, while some have downsized. Some manufacturers are still producing due to their love for this country. Government’s policy on cement should have been adopted in this case.
“In the case of cement, Nigeria used to be a net importer of cement, but the government set up a policy over a five-year period, which made it possible that today, we are a net exporter of the commodity.”
Oruche said the fact that the economy was technically in recession should have made the CBN to redirect its policies towards stimulating the economy rather than tightening money supply.
He also listed high interest rates, poor power supply, policy inconsistency, poor patronage of locally manufactured products, poor supporting infrastructure, among others, as the challenges confronting manufacturers.
In his remarks, the Director, Research and Advocacy, LCCI, Mr. Vincent Nwani, said the CBN announced the ban on the 41 items without consulting other stakeholders in the sector.
He said, “We did press releases; we did stakeholders engagement; we engaged with the CBN at all levels, at least three times; we met the directors twice up to the CBN governor on this same matter of the 41 items- giving them examples of product-by-product.
“There must be an urgent review of the CBN’s policy on the restriction of access to foreign exchange placed on 41 items, as about 16 of the total items on the list serve as critical raw materials for intermediate goods produced in Nigeria, especially as the country lacks the capacity for optimal production of the items.”
For instance, he said that the ban on oil palm alone had led to a loss of about 100,000 jobs over the last couple of months, while the ban on glass and glassware resulted in 80,000 job losses mainly in the pharmaceutical industry.
Nwani said many companies in the pharmaceutical sector now found it difficult to package products.
He said, “Local production of oil palm is put at about 600 metric tonnes annually, but the total demand in the country is put at about 1.8 million metric tonnes.
“Today, Presco Oil has orders of up to December 2017 to fill, it is presently hard pressed with demands. Listing oil palms among the restricted items meant that we have a shortfall of about 1.2 million metric tonnes.
“Some of the items placed on the restriction list by the CBN should be reinstated until the country develops the capacity to produce them locally. Some of the items need a period of between three and seven years for the country to develop self-sufficiency in their production.”
Nwani said, currently, about $10bn of manufacturers’ funds were stuck in foreign countries because the owners had no confidence in the economy.
He said, “We have about $10bn stuck in one country or the other earned by our members. Some of them are not manufacturers; some are agriculturists or merchants of different products.”
Meanwhile, the President of MAN, Dr. Frank Jacobs, has lauded the recent directive of the CBN that 60 per cent of foreign exchange allocation should go to the manufacturing sector. The association is also confident that with such powers, manufacturers may determine exchange rate in the country.
Jacobs said at a media briefing in Lagos on Tuesday that the directive would revive the sector and reflate the economy.
He said, “MAN commends the Federal Government and the CBN on this directive. It is a welcome development and will give fillip to efforts of government aimed at reflating the economy.”Read More