Connect with us

Business

AfDB invests $10.9 billion in Nigeria

The Director-General of the West Africa Region, African Development Bank (AfDB), Lamin Barrow, says the banks’s cumulative financing approvals in Nigeria stand at 10.9 billion dollars.

Barrow said this at the Second Interactive Session and Workshop on Developing Bankable Business Proposals/Business Plans for Youths in Agriculture on Monday in Abuja.

The News Agency of Nigeria (NAN) reports that the event is being held as part of the activities to celebrate the bank’s 60th anniversary with stakeholders.

“Over the last 60 years, the Bank has grown into a trusted partner and the continent’s premier development financial institution.

“Our cooperation with Nigeria has expanded over the years, especially considering that Nigeria is the largest shareholder.

“Since it started operations in the country, cumulative financing approvals has reached 10.9 billion dollars and our portfolio currently stands at 4.9 billion dollars supporting projects in the public and private sectors,” he said.

Barrow said the AfDB’s President, Dr Akinwumi Adesina, upon assumption of office eight years ago, prioritised the High 5–of Power, Feed, Industrialise, Integrate and Improve the quality of life for the people of Africa.

He said these were the accelerators for achieving the SDGs and the targets in the African Union’s Agenda 2063.

According to him, the projects and programmes supported during this period have impacted over 400 million people.

He said: “This Interactive Session provides an opportunity to discuss ways of addressing the many challenges faced by youths and women in Agro-business, including access to finance.

“We applaud the Federal Government of Nigeria in spearheading various initiatives and programmes to increase production and productivity in the sector.

“And its efforts to create job opportunities for the youths and women, and combat food insecurity in the wake of the high food inflation currently witnessed in Nigeria.”

According to him, the workshop will enhance the knowledge and skills of participants in preparing bankable proposals to unlock financial support for their enterprises.

Meanwhile, Mrs Marie-Laure Akin-Olugbade, AfDB’s Vice-President, Regional Development, Integration and Business Delivery Complex, during her keynote presentation, identified agriculture as a business.

“We are here to reimagine Africa’s future. A future powered by agriculture that backs the perception of agriculture as a low-income, low-status occupation that attracts only 21.5 per cent of youth.

“Where Women, comprising 50.8 per cent of Africa’s population, continue to face systemic challenges including gender-based discrimination, marginalisation, violence, and unequal access to education, land, resources, opportunity and a voice.

“Africa is home to 65 per cent of the world’s remaining arable land enough to feed 9.5 billion people in the world. Agriculture is a business,” she said.

According to the vice president, growth in the agricultural sector is two to four times more effective in reducing poverty than growth in other sectors.

She said by 2030, Africa’s food and agriculture market is projected to be valued at 1 trillion dollars.

“These numbers alone demonstrate the central importance of agriculture as a cornerstone of Africa’s economy and a solution to the continent’s and the world’s food insecurity.

“The question, therefore, is not whether Africa can feed itself, it is how quickly we can make it happen,” she said.

While reiterating AfDB’s efforts towards food security, Akin-Olugbade said the bank was collaborating with partners to allow private agribusinesses to establish industries that processed and add value to agricultural commodities.

“So, to our policymakers, I say this: The time for bold action is now. Every policy should ask: Are we going beyond empowering to invest in our youths?

“How does this support our women farmers? How does this move us closer to food sovereignty?

“To the youths and women: You are not just the future of Africa’s agriculture. You are its present. Your innovation, resilience, and determination are the seeds from which a new African agricultural revolution will grow,” she said.

The vice president said that by working together and focusing on these transformative initiatives, we would unlock the full potential of Africa’s agriculture.

She then expressed AfDB’s commitment to nurture the growth, and ensure that Africa’s future in agriculture is bright and prosperous for all.

NAN reports that the event was attended by government officials, partners, women and youths in agriculture and stakeholders in the agricultural value chain.

Business

1 out of 4 Nigerians want to migrate-NBS

The National Bureau of Statistics (NBS) says one out of four individuals between ages 15 years and above would like to leave their communities permanently or at least temporarily.

The NBS said this in its General Household Survey-Panel (GHS-Panel) Wave 5  2023/2024 unveiled in Abuja on Thursday.

The report showed that more men aged 15 years and above wanted to leave their communities, representing 31. 2 per cent compared to women at 19.3 per cent.

It said that among age groups, 34.5 per cent of people between 20 and 30 years of age would like to migrate.

“This was followed by those between ages 15 and 18 at 26.9 per cent and those between ages 31 and 64 at 25 per cent.

“Among people ages 65 and above, only 6.5 per cent said that they would like to leave their communities.”

The report said that among those who would like to migrate, 35.3 per cent would like to move to Abuja and 26.6 per cent would like to relocate to another country.

The report revealed that those in the Southern zones predominantly reported that they would like to relocate to another country, while individuals in the Northern zones preferred to move to Abuja or another state.

The NBS said that nationally, 45.4 per cent of households had at least one former household member who had relocated within and outside the country.

According to the report, half of those former household members are females.

The report said that marriage was the main reason why former household members had relocated at 28.2 per cent, followed by those who had gone to live with relatives or friends at 21.2 per cent.

“This was followed by those who went to look for/start a new job or business at 14.6 per cent .

It showed that urban households were less likely to have a former household member who had migrated, with a reported share of 37 per cent compared to 49.3 per cent of rural area households.

The News Agency of Nigeria (NAN) reports that the GHS-Panel is  Nigeria’s nationally representative longitudinal household survey which began in 2010 and had implemented five waves of the survey.

The panel nature of the data enables tracking household-level changes in critical areas of welfare, work, and socio-economic outcomes over time, yielding insights for policy. 

Continue Reading

Business

FG, World Bank to provide jobs for 10 million youths in 5 years

The Federal Government says it will collaborate with the World Bank to provide decent jobs directly or indirectly to no fewer than 10 million youths within the next five years.

Mr Ayodele Olawande, Minister of Youth Development, communicated this when he hosted the World Bank team lead by Mr Maheshwor Shrestha, World Bank Economist, on Thursday in Abuja.

Olawande said that the forum would enable him to update the team on the various activities and engagements of the ministry in the past months.

“The focus of the ministry has been to achieve the establishment of a strong coordinated mechanism for all youth intervention focused on economic inclusion and we want data to inform all we do.

”Provide decent jobs directly or indirectly for at least, 10 million youths within the next five years and ensure that every youth is proficient in at least, two income generating skills.

“Expand our credit support funds by 50 million dollars to reach more young people, including businesses led by going women, people with disabilities and young people in rural areas.’’

The minister said that the current reality showed that 60 million youths were in the labour bracket and an additional 5.5 million would join the labour market every year.

He said that almost 58 per cent of Nigeria’s informal workforce was young people.

“Despite these data, we see these opportunities for the development of the country if harnessed effectively,” he said.

Olawande said that the challenges hinged on deficient skills for job market, relevant vocational training and lack of access to capital and funds safety with infrastructural deficit.

In his speech, Shrestha said that no fewer than 60 million youths in Nigeria were underage at the moment.

According to him, it means that Nigeria needs to create enough opportunities for a huge pool of youths that are already there and who will be joining the way.

He said that every year, 5 and a half million would reach paid working age.

Shrestha said that only seven per cent of the youths were engaged in paid jobs.

“And even those are not permanent jobs; there are still informal jobs.

“So, if we look at overall, 93 per cent of the youths are working in an informal sector.’’

According to him, the bank is figuring out how to improve safety net support towards such people.

“What we are doing now is to think about how the framework applies at the state level.

“So, I think we are starting to work with the Governors’ Board of Secretaries to see how this approach applies at the state levels,” he said.

Continue Reading

Business

Dangote Refinery Launches Fuel Export to West Africa

Dangote Refinery Launches Fuel Export to West Africa

The Dangote Petroleum Refinery has commenced exporting refined petroleum products to nearby West African nations, signaling to traders that the refinery’s operations might soon disrupt regional fuel markets.

According to a Tuesday report by Bloomberg, citing data from Vortexa, Kpler, Precise Intelligence, a port report, and a ship-tracking platform, a tanker has transported a shipment of gasoline from the Dangote Petroleum Refinery to waters near Togo, a neighboring West African country.

The report mentioned that the vessel CL Jane Austen recently loaded over 300,000 barrels at the refinery and headed westward.

It is worth noting that last month, Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, revealed that Ghana is exploring the option of purchasing petroleum products from the Dangote Refinery. This move aims to reduce reliance on costlier imports from Europe, which currently cost the nation around $400 million monthly.

The head of the NPA in Ghana, speaking at the OTL Africa Downstream Oil Conference in Lagos, stated that sourcing imports from Nigeria instead of Europe would lower the cost of other goods and services by eliminating freight charges.

“If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices,” Hamid said.

In the same vein, The PUNCH reported exclusively two weeks ago that the refinery was prepared to start exporting fuel to South Africa, Angola, and Namibia.

The statement also mentioned that four additional African nations – Niger Republic, Chad, Burkina Faso, and the Central African Republic – have begun discussions with the refinery.

A reliable source, who shared this information exclusively with one of our reporters, revealed that the management of the refinery, with a capacity of 650,000 barrels per day, is in the final stages of negotiations with these countries to begin fuel shipments.

“I can confirm to you that talks are actually at the advanced stage with Ghana, Angola, Namibia, and South Africa, while the initial discussion is coming up with Niger, Chad, Burkina Faso, and the Central African Republic,” the source said.

The report also mentioned that the shipment of petroleum products is currently drifting near the coast of Lome, a well-known location for ship-to-ship transfers.

It remains unclear where the cargo of the CL Jane Austen will eventually be delivered.

While it is located off the coast of Togo, this area is frequently used for ship-to-ship transfers, suggesting the fuel could eventually be transported to another destination.

“While the shipment is tiny in the context of the global gasoline market, it signals the ramp-up of Dangote’s production and the potential to export significant volumes of gasoline beyond Nigeria, which could upend regional markets.”

The refinery sent its initial shipment of gasoline by sea to the commercial center of Lagos last month.

It is still uncertain if a significant portion of Dangote’s gasoline production will be exported.

In the previous month, the Federal Government lifted the state-owned oil company’s exclusive right to purchase fuel from the plant for domestic consumption, while still permitting the ongoing importation of fuel from Europe and the US, as per the regulatory framework.

The report states that a representative from Dangote did not reply to a request for comment.

Continue Reading

Business

Naira depreciates again by 2.3% against dollar at official market 

The Naira on Monday depreciated at the official market trading at N1,690.37 against the dollar.

Data from the official trading platform of the FMDQ Exchange, revealed that the Naira lost N38.12.

This represents a 2.3 per cent loss when compared to the previous trading date on Friday, November 15th when it exchanged at N1,652.25 a dollar.

Also, the total daily turnover reduced to $173.14 million dollars on Monday down from $296.63 million dollars recorded on Friday.

At the Investor’s and Exporter’s (I&E) window, the Naira traded between N1,699.00 and N1,633.52 against the dollar.

Continue Reading

Business

CBN to Nigerians: Beware of fraudulent contracts, project funding claims

The Central Bank of Nigeria (CBN) has alerted Nigerians of the activities of
fraudsters purporting to be in receipt of award letters of contracts related to construction
works.

According to a statement by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Ali, the fraudsters also usually lay claims to procession of special financial interventions on behalf of the CBN.

She said that it was false, as such individuals were solely motivated by the desire to defraud unsuspecting Nigerians.

“Any such assertions are fraudulent and should be
disregarded.

“The CBN hereby reiterates that, in line with the focus of its current management, it has discontinued direct development interventions and special projects funding,” she said.

She further said that the apex bank had not authorised public notices for such interventions on social media platforms or any other news outlet.

“The CBN remains committed to its core mandate of ensuring monetary and price stability, and a sound and efficient financial system in Nigeria.

“We, therefore, encourage the public to remain vigilant and promptly report any suspicious
activities or publications to the relevant law enforcement agencies,” she said.

Continue Reading

Business

Nigeria will be in trouble if states collect VAT – Tinubu’s tax team

Tinubu approves bridge reconstruction

Nigeria’s economy would be headed for trouble if states are allowed to collect Value Added Tax (VAT), Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele warned on Monday.

Recalling previous efforts of some states to challenge the legality of the federal government collecting VAT, Oyedele expressed concerns that allowing states to collect VAT could lead to a chaotic tax system that would harm the economy.

He stated this while briefing members of the House of Representatives on the Tax Reform Bills before the National Assembly.

VAT has been a contentious issue for years between the federal government and the states. Some states have previously challenged the legality of the federal government collecting VAT.

The Federal High Court in Port Harcourt, Rivers State, in 2021 issued an order restraining the Federal Inland Revenue Service (FIRS) from collecting value-added tax (VAT) and personal income tax (PIT) in Rivers State.

Rivers State argued that the FG’s powers to tax were limited to stamp duties and the taxation of incomes, profits, and capital gains, stressing that the power to administer VAT must be delegated to a state agency.

But while providing clarification on the contentious derivation-based model for Value Added Tax (VAT) distribution proposed in the new tax bill, Oyedele said states should stop being under the illusion that they would make more money when they collect VAT.

Part of the proposal in the new bill changes the sharing formula of VAT, reducing the federal government’s share from 15 percent to 10 percent.

However, the proposed legislation includes a caveat that the allocation among states will consider the derivation principle, a proposal that was rejected by the Northern Governors Forum.

Currently, under Section 40 of the VAT Act, VAT revenue is allocated 15 per cent to the Federal Government, 50 per cent to the States and FCT, and 35 per cent to Local Governments.

Oyedele recalled that VAT was introduced in Nigeria in 1993 by the VAT Act No. 102 of 1993 as a replacement of the sales tax.

He said that despite the states’ government collecting sales tax at that time, there was no meaningful progress.

Oyedele explained: “Some states believe that if they can make VAT a state thing, they will make a lot of money. We all know that states like Rivers state went to court. Lagos state has been to court so many times, and Lagos has a VAT law. Rivers too has a VAT law. When I read those VAT laws, my heart broke. Those VAT laws are worse than when we introduced VAT in 1993.

“In 1986, the military introduced sales tax. Sales tax was collected by states. Five years later in 1991, no progress. They were struggling. Then the military set up a committee and that committee considered and said VAT is a better consumption tax for Nigeria but can’t work as state tax, it has to be collected centrally.

“So if there is any state that is under the illusion that they will start doing VAT at the state level, they will lose more than half of what they are getting now. When states start collecting VAT, all of us will be in trouble”.

Continue Reading
Advertisement

Trending