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Non-Oil Exporters Decry Poor Implementation of EEG

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NEPC

The continued decline in the non-oil export is due to the poor implementation of the Export Expansion Grant scheme by the Federal Government, non-oil sector exporters have said.

According to them, Nigeria’s non-oil exports decreased from $3bn in 2013 to $1.6bn in 2015 as a result of the poor implementation of the EEG since 2010.

The Executive Secretary, Organised Private Sector Exporters Association, Mr. Jaiyeola Olarewaju, stated that the decreasing trend in non-oil export would persist in 2016, judging by the available information.

Olarewaju, who spoke to journalists in Abuja on Friday, said, “According to a comprehensive Impact Assessment Report prepared by the Nigerian Export Promotion Council and released in May 2016, the decline in non-oil export is chiefly attributed to the disruption in the implementation of the EEG scheme since 2010.

“Due to the non-acceptance of the Negotiable Duty Credit Certificate, an instrument through which the grant is disbursed, a backlog of N123bn of unutilised NDCC’s has piled up. The exporters were paralysed by the backlog and had no option but to scale down exports which bore a stark reflection on the country’s non-oil export performance since 2014.”

He stated that Nigeria’s non-oil export sector was still in its infancy and came into mainstream in the last 10 years due to the policies that were put in place that encouraged the sector to invest in agricultural supply chains, export processing factories and overseas marketing.

Nigeria’s export basket comprises agro-allied commodities such as cocoa, cashew, cotton, sesame seeds, rubber, finished leather, tobacco, textiles, processed marine products, footwear and plastics.

The EU is Nigeria’s largest trading partner, accounting for about 40 per cent of the market share, followed by Asia and ECOWAS, accounting for 25 per cent and 18 per cent, respectively.

Olarewaju stated that for the past two years, exporters in Nigeria had been sitting on a backlog of over N100bn worth of unutilised export certificates issued under the seal of the Federal Ministry of Finance.

He said, “These are sovereign instruments and the government should honour its financial commitments as per extant law. It is unfair that some exporters were issued the certificates for exports made till 2013 whereas many others who had submitted their applications remain outstanding for no fault of theirs.

“This is part of the backlog lying with NEPC. After all, government policy is not based on first come first served. By any principle of fairness and justice, all pending applications for the EEG on account of exports made till 2013 should be treated by the Federal Ministry of Finance.”

According to the executive secretary, most developing countries give incentives to boost their exports.

Olarewaju said, “China, the world’s largest exporter, increased the export tax rebates in 2015 to check decline in exports. India provides a package of incentives to its exporters through its five-year foreign trade policy. Nigerian manufacturers need the EEG to mitigate the negative impact of infrastructural and other cost disadvantages.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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SMEs

Microsoft Strengthens Partnership With AFDB, to Develop Youth Entrepreneurship Ecosystems in Africa

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American multinational technology corporation Microsoft has strengthened its partnership with the African Development Bank (AFDB) to provide support to Africa’s youth entrepreneurs under the bank’s Youth Entrepreneurship Investment Banks (YEIB) Initiative.

Through its African Transformation Office (ATO), Microsoft will partner with AFDB to develop entrepreneurship ecosystems in Africa through the creation of jobs and dramatically scaling impact in Africa through digital inclusion.

The partnership will see to the establishment and growth of national-level institutions, leveraging public-private collaboration model to ensure entrepreneurs get the required technical and financial support while building their capacity.

Microsoft reinforced its partnership with AFDB to develop Africa’s entrepreneurship ecosystem because it believes youth empowerment in the region will bolster solutions to unemployment if there is affordable access to finance, and quality business development services.

Commenting on its reinforced partnership with AFDB, General Manager of Microsoft Africa Regional Cluster, Wael Elkabbany said: “We believe much can be done to help foster youth entrepreneurship by collaborating with the African Development Bank, driving greater economic inclusion for this key segment of the population, and ultimately building a more prosperous society.”

”Already we’ve seen considerable success partnering together on initiatives such as Coding for Employment, which set out to create over 9 million jobs and reach 32 million youth and women across Africa in just 10 years.”

Also, the African Development Bank (AFDB) Vice President for Private Sector, Infrastructure and Industrialization Solomon Quaynor said “The strengthening of our partnership with Microsoft on the Youth Entrepreneurship Investment Banks (YEIB) is an important development in our journey towards harnessing Africa’s demographic dividend and facilitating the creation of millions of jobs for young Africans by 2025.

“The initiative places much-needed focus on youth entrepreneurship, which is key to achieving our ambitious employment targets.”

This partnership seeks to support the establishment of national-level institutions through a public-private collaboration model to scale up technical and financial support for youth entrepreneurs to build their capacity.

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Merger and Acquisition

Shell to Acquire Nigerian Solar Energy Provider, Daystar Power

Subject to regulatory approval, Shell Petroleum Development Company is set to acquire Daystar Power.

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Shell

Subject to regulatory approval, Shell Petroleum Development Company is set to acquire Daystar Power.

Daystar Power, which is one of the leading providers of hybrid solar power solutions to commercial and industrial (C&I) hubs in West Africa, announced the potential acquisition in a press release. 

According to the energy provider, the acquisition will help Daystar Power to continue its growth in West Africa while expanding its presence to other African countries in East and Southern Africa. 

The Lagos-based company has a target to increase its installed solar capacity to 400MW by 2025. 

Daystar Power currently has an installed solar capacity of 32 Megawatts (MW).

This could make Daystar Power to become one of Africa’s leading providers of solar power solutions for commercial and industrial businesses.

The Chief Executive Officer of Daystar, Jasper Graf von Hardenberg disclosed that Daystar Power needed more capital to expand operations to meet the rising demand for solar energy and the choice of Shell as the new parent company comes at the right time. 

Jasper further stated that Shell’s strong balance sheet and long history in Africa will help to take Daystar to a new height.

On the other hand, Shell’s Executive Vice-President, Renewable Generation, Thomas Brostrøm noted that the deal will be Shell’s first power acquisition in Africa. 

He noted further that the deal is a fundamental step for Shell in growing its presence in the emerging power market. 

“We have had a long and established presence in West Africa and with Daystar Power, we are taking our first steps into the renewable power space,” he said.

“Daystar Power has a loyal customer base and a promising growth outlook, and by combining our efforts and expertise, I believe we can make a real difference in the energy transition, for West Africa and beyond.” Shell’s Executive Vice-President concluded.

Investors King learnt that Daystar Power currently has a presence in Nigeria, Ghana, Senegal and Togo. The company also received $20 million in funding last year to boost its operations.

 

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ASUS Committed to Deepen Market Shares in Nigeria

ASUS has disclosed plans to increase its market shares in Nigeria which is currently at 16 percent

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Multinational computer hardware and consumer electronics company ASUS has disclosed plans to increase its market shares in Nigeria which is currently at 16 percent.

The electronics company had earlier disclosed that it will continue to create innovative technologies for everyone to enjoy in Nigeria as it targets a 40 percent activation rate.

The country manager for ASUS English-speaking Africa Simplice Zaongo disclosed that ASUS is driven by innovation and commitment to quality products that include notebooks, netbooks, motherboards, graphics cards, etc as it intends to deepen the market.

He said, “I must admit, when we compare ourselves with top competitors in the market, we still manage to achieve the number three position in the consumer industry in Nigeria, according to the IDC 2022.

“Besides being the No.1 consumer notebook brand in Asia-Pacific and East Europe, ASUS gaming notebooks account for the highest market share, No.1 worldwide.

“Our market share is 16 percent, while our activation share is 17 percent.” This means that when we push into the market, there is acceptability. That’s how we interpret it.

“But when we go back over the years, we noticed that market share was below 10 percent activation. We tried to analyze what the problem was.”

While responding to how ASUS intends to go beyond its 16 percent market share to its target of 40 percent, Simplice stated three strategies the company intends to use which are; brand awareness, affordability, and public enlightenment.

According to him, the primary goal for the next quarter is to reach a 40 percent activation rate.

“To achieve our goals, we have decided to strategically deploy three options. So, the first step is to create awareness. The second one is to educate customers. And the third one is to make our laptop affordable. We think it works for us”, he added.

It should be recalled that in February 2019, Investors King reported that ASUS plans to expand its operations in East Africa.

Last week, the electronics company introduced the ASUS Zenbook 14X OLED (UX3402) and Zenbook 17-Fold (UX9702) to the Media.

The company has three distributors in Nigeria, namely Coscharis Technologies, Mitsumi Distribution, and TD Africa, as well as five service centers in Lagos, Abuja, and Port Harcourt.

 

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