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NSC: Transportation Sector Can Contribute 10% to Nigeria’s GDP

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Hassan Bello

The Executive Secretary of Nigerian Shippers’ Council (NSC), Hassan Bello has stated that the transportation industry can contribute about 10 per cent to the Nigeria’s gross domestic products (GDP) if the right policies are in place to drive the sector.

To achieve this, he said there must be massive investment in infrastructure and training for operators and regulators on new global trends in transportation services.

Bello stated this over the weekend when he received officials of the Nigerian Institute of Transport Technology (NITT) led by its Director General, Dr. Aminu Yusuf, who paid him a courtesy visit in his office.

He stressed that as Nigeria looks to export to diversify its economy, transportation and shipping are the key, adding that there must be processes put in place to achieve this.

He said the NSC is knowledge- driven hence there is need for the maritime sector to be driven by personnel in specialised knowledge.

Bello said: “So many mistakes have been made in the industry as a result of the huge knowledge gap. We cannot afford to make any mistakes this time that we have limited opportunity in the sector. Transportation is a significant aspect of the Nigerian economy. The time has come for the sector to mean something and contributes a huge portion of the nation’s GDP.

“There is need for investment to get the sector to be properly linked to the Nigerian economy. The shippers council is interested in developing policies that is aimed at growing the transportation sector. There is a gap in the industry today. The industry is knowledge driven hence the need for training and retraining.”

The NSC boss restated the council’s determination to partner the NITT for effective training and capacity building development of personnel.

While noting that capacity building is instrumental to the development of the maritime sector, Bello stressed that there is need to sign a Memorandum of Understanding (MOU) between the agency and the institution.

Bello commended the effort made so far by the institute on training stating that it has trained a large number of professionals in the transport sub sector of the economy.

He urged the institute to put in place awareness campaign programme to move the training outfit forward.

“The two institutions are knowledge driven, what we do is to get the required knowledge because it is the knowledge that drive the industry and so many mistakes has been made due to lack of knowledge and Nigeria will suffer for it”

“But now the choices we have for the industry are limited and we cannot afford to make such mistakes and therefore we have to patronise this fountain of knowledge called NITT,” he stressed.

Bello described the NITT programmes as innovative and modern saying that transport is a significant component to Nigeria economy.

On his part, the Director General, NIIT, Dr. Aminu Yusuf said the NITT has been able to put in place measures to pursue transport education development programme to set agenda for the overall development of the sector.

He, however, appealed to the NSC’s boss to look into the possibility of investing in the infrastructural development of the institute and jointly carry out research projects on transport and logistics.

Furthermore, he said the NIIT cannot improve on its own without the patronage of government agencies like the NSC adding that the NSC as an economic regulator must ensure that the right things are put in place to transform the transportation sector.

“We have also submitted proposal for a joint two day workshop with the NSC on the role of transport and logistics in international trade in Nigeria and this is in addition to the training proposal sent to your office for consideration”, he added.

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

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Minister Accuses Past NCDMB Leadership of Squandering $500m on Unproductive Projects

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Nigeria investment

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has accused the former executives of the Nigerian Content Development and Monitoring Board (NCDMB) of mismanaging a whopping $500 million on projects deemed unproductive.

Speaking at a dinner hosted by The Petroleum Club in Lagos, Lokpobiri minced no words as he shed light on what he described as egregious financial mismanagement within the organization.

Lokpobiri, during the interactive session, alleged that substantial sums were squandered on ventures that yielded little to no tangible results.

Among the projects cited was the infamous Brass modular refinery in Bayelsa State, for which a staggering $35 million was purportedly disbursed without any discernible progress.

Similarly, Lokpobiri raised concerns about a $20 million investment in a fertiliser factory, questioning its whereabouts and efficacy.

The minister’s accusations didn’t end there. He underscored what he termed the imprudent disbursement of funds, highlighting instances where significant amounts were released in lump sums against professional advice.

Lokpobiri stressed the need for a comprehensive review of these investments, lamenting the magnitude of the financial losses incurred.

Furthermore, Lokpobiri pointed fingers at the mismanagement of loans totaling approximately $350 million, which were intended to support investors.

According to him, a staggering 90% of these loans ended up as non-performing, exacerbating the financial hemorrhage experienced by the NCDMB.

Addressing the crisis between himself and the incumbent NCDMB boss, Felix Ogbe, Lokpobiri clarified that his intervention was grounded in the oversight responsibilities vested in him as the chairman of the council overseeing the NCDMB.

He stated the importance of due diligence in governance and reiterated his commitment to ensuring transparency and accountability within the organization.

In response to Lokpobiri’s accusations, the immediate past Executive Secretary of the NCDMB, Simbi Wabote, vehemently refuted the allegations, asserting that they lacked substantiation.

Wabote defended the integrity of the Nigerian Content Intervention Fund, hailing it as a pivotal initiative with an impressive 96% payback rate.

Wabote also defended the NCDMB’s investment decisions, citing instances of successful ventures such as the equity investment in Waltersmith’s modular refinery, which has shown promising returns.

He attributed challenges faced by certain projects to external factors and legal disputes, maintaining the organization’s commitment to prudent financial management.

As the allegations continue to reverberate across the industry, stakeholders await the outcome of the government’s review, which could potentially reshape the trajectory of the NCDMB and its approach to investment and governance.

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SEC Brings N2.36tn in Funds Under Custody with New Guidelines

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security and exchange commission

The Securities and Exchange Commission (SEC) has successfully brought about N2.36 trillion in discretionary and non-discretionary funds under custody.

This achievement follows the implementation of updated guidelines for Collective Investment Schemes (CIS) in Nigeria.

Last December, the SEC proposed amendments to address grievances within the Collective Investment Scheme segment of the capital market.

These amendments sought to enhance investor safeguards and address concerns raised by market participants.

In a notice published on its website titled ‘Exposure Of New And Sundry Amendments To The Rules And Regulations Of The Commission,’ the SEC outlined the new regulatory changes.

Among these changes was the requirement for all CIS funds, including those in discretionary and non-discretionary windows, to be placed under custody.

This move was aimed at strengthening investor protection and mitigating risks associated with fund management.

Dr. Okey Umeano, the Chief Economist at SEC, provided insights into the impact of these regulatory updates during a media briefing after the first-quarter Capital Market Committee meeting.

He highlighted that prior to the regulatory amendments, only funds designated as Collective Investment Schemes were subject to custody.

However, with the new guidelines in place, all funds, regardless of their discretionary or non-discretionary nature, are now required to be custodied.

Umeano revealed that the SEC conducted inspections to ensure compliance with the new regulations, resulting in N2.36 trillion of discretionary and non-discretionary funds being brought under custody.

This move underscores the SEC’s commitment to safeguarding investor interests and fostering trust in the capital market ecosystem.

Former SEC Director-General, Lamido Yuguda, emphasized the importance of segregating asset management and custody functions to mitigate risks.

He noted that while the separation of these functions was standard practice for public CIS products, it was not uniformly applied to bilateral arrangements.

However, with the implementation of the new rules, all investment management activities, whether in public CIS or bilateral spaces, are mandated to be in custody.

Yuguda stressed that the objective of these regulatory changes is to improve trust, protect investors’ assets, and bolster market confidence.

By ensuring that investment management activities are segregated, with custody handled by duly licensed custodians, the SEC aims to create a more resilient and transparent capital market environment.

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Lagos State Government Set to Demolish $200 Million Landmark Beach Resort

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Landmark Beach

The Lagos State Government has issued a demolition warning to the proprietor of the $200 million Landmark Beach Resort, a renowned tourist destination in the region.

The resort nestled along the picturesque coastline faces imminent destruction to make way for the construction of a 700-kilometer coastal road linking Lagos with Calabar.

Paul Onwuanibe, the 58-year-old owner of the Landmark Beach Resort, revealed that he received a notice in late March instructing him to vacate the premises within seven days to facilitate the impending demolition.

The resort, which spans a vast expanse of land and hosts over 80 businesses, is a hub of economic activity, sustaining over 4,000 jobs directly. Also, it contributes more than N2 billion in taxes annually.

The news of the resort’s potential demolition has sparked concerns among investors and stakeholders in the tourism sector. Onwuanibe expressed dismay at the government’s decision, highlighting the substantial investments made in developing the resort’s infrastructure.

He explained that the planned demolition would not only lead to significant financial losses but also jeopardize the livelihoods of thousands of employees and businesses associated with the resort.

The Landmark Beach Resort is a popular tourist destination, attracting approximately one million visitors annually, both local and international. Its unique amenities, including a mini-golf course, beach soccer field, and volleyball and basketball courts, make it a favorite among tourists seeking leisure and recreation.

The prospect of the resort’s demolition has triggered widespread panic among international and domestic investors associated with the Landmark Group. Many are now considering withdrawing their investments, citing concerns about the viability of the business without its flagship beach resort.

The Lagos State Government’s decision to proceed with the demolition is part of its broader plan to construct the Lagos-Calabar coastal highway, a 700-kilometer roadway connecting Lagos to Calabar.

The government had earlier announced its intention to remove all “illegal” constructions along the planned route of the highway, including the Landmark Beach Resort.

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