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N20b Export Grant Inadequate, says MAN



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  • N20b Export Grant Inadequate, says MAN

The Manufacturers Association of Nigeria (MAN) has decried the N20 billion provision in the 2017 budget for the payment of backlog of Export Expansion Grant (EEG).

Its President, Dr. Udemba Jacobs, said it was grossly inadequate and should be increased in view of the huge outstanding payment that runs up to N230 billion.

Supporting its reintroduction after years of inaction, he said the scheme, when in operation contributed to the economy as evidenced by the 197 per cent increase in Nigeria’s non-oil export from $1billion in 2006 to $2.97billion in 2013, including visible industrial expansion, and market penetration of made-in-Nigeria goods.

Jacobs said the association is of the view that the 10-year stipulated for the recovery of the Promissory Note was too long a time and should be reduced.

He said the scheme also created jobs for about 11 million persons in the non-oil sector but, regretted that things changed within one year of the suspension of the scheme, resulting in the decline of Nigeria’s non-oil export by eight per cent from $2.97billion in 2013 to $2.71billion a year later.

While commending the Federal Government for lifting the suspension placed the scheme after nearly three years with slight modifications, he lamented that non-oil exports have not been able to make the desired significant impact due to the several challenges facing non-oil exporters.

On the challenges, he said manufacturers are facing enormous cost in doing business in addition to having a high level competition in the international market,from countries that tend to support exporters with incentives.

Others are loss of preferential market access to the European Union (EU) and the nature and components of export productsThe MAN chief lamented that Nigeria has the highest financial and energy costs when compared with her competitors such as India, Pakistan, China, Indonesia, Europe, Kenya, and others.

He said the Negotiable Duty Credit Certificate (NDCC) shall henceforth be settled by issuing Negotiable Export Credit Certificate (NECC) to the beneficiaries, valid for two years and is only transferable once.

He added that beneficiaries would be able to use the certificates to settle all Federal Government taxes such as company income tax, Value Added Tax (VAT) and With Holding Tax (WHT).

He also said in the modified guideline, the EEG payment rate was reduced to 15 per cent maximum from 30 per cent before the suspension of the scheme.

According to him, eligible new EEG applications in the year would be paid with NECC while the applications before 2017 and outstanding NDCC would be paid via a 10 year maturity Promissory Note.

He said: “The EEG Scheme is a veritable vehicle that has proven to be a strategic stimulant for non-oil export oriented activities that are required to trigger significant growth in non-oil export through meaningful diversification. The lifting of suspension on EEG by the government is timely, a step in the right direction towards restoring significant growth in non-oil sector. It is, however, expedient that the government considers and effectively implements the following critical measures to guarantee sustainable growth in the sector.”

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


Africa’s Richest Man, Aliko Dangote Ready to Sell Refinery to Nigerian Government



Dangote refinery

Aliko Dangote, Africa’s wealthiest entrepreneur, has announced his willingness to sell his multibillion-dollar oil refinery to Nigeria’s state-owned energy company, NNPC Limited.

This decision comes amid a growing dispute with key partners and regulatory authorities.

The $19 billion refinery, which began operations last year, is a significant development for Nigeria, aiming to reduce the country’s reliance on imported fuel.

However, challenges in sourcing crude and ongoing disputes have hindered its full potential.

Dangote expressed frustration over allegations of monopolistic practices, stating that these accusations are unfounded.

“If they want to label me a monopolist, I am ready to let NNPC take over. It’s in the best interest of the country,” he said in a recent interview.

The refinery has faced difficulties with supply agreements, particularly with international crude producers demanding high premiums.

NNPC, initially a supportive partner, has delivered only a fraction of the crude needed since last year. This has forced Dangote to seek alternative suppliers from countries like Brazil and the US.

Despite the challenges, Dangote remains committed to contributing to Nigeria’s economy. “I’ve always believed in investing at home.

This refinery can resolve our fuel crisis,” he stated, urging other wealthy Nigerians to invest domestically rather than abroad.

Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority accused Dangote’s refinery of producing substandard diesel.

In response, Dangote invited regulators and lawmakers to verify the quality of his products, which he claims surpass imported alternatives in purity.

Amidst these challenges, Dangote has halted plans to enter Nigeria’s steel industry, citing concerns over monopoly accusations.

“We need to focus on what’s best for the economy,” he explained, emphasizing the importance of fair competition and innovation.

As Nigeria navigates these complex issues, the potential sale of Dangote’s refinery to NNPC could reshape the nation’s energy landscape and secure its energy independence.

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Dangote Shelves Steel Project to Prevent Monopoly Allegations



Aliko Dangote - Investors King

Aliko Dangote, chairman of Dangote Industries Limited, announced the company’s decision to halt plans to enter Nigeria’s steel industry.

The decision comes just two months after the conglomerate had initially unveiled its intentions to invest in the sector as part of efforts to expand the economy.

Addressing journalists at his refinery in Lagos, Dangote explained that the board’s decision was driven by concerns over potential accusations of creating a monopoly.

“We have decided against pursuing the steel business to avoid being labeled a monopoly,” Dangote stated.

He explained that the company’s operations focus on adding value by transforming local raw materials into finished products.

The industrialist dismissed claims that his group enjoys monopolistic advantages, pointing out that their business practices have always fostered a competitive environment.

“When we entered the cement market, Lafarge was the only player, yet no one accused them of being a monopoly,” he stated.

Dangote further encouraged other Nigerian investors to explore opportunities in the steel industry, suggesting that there are ample resources and space for new entrants.

“There are many Nigerians with the financial capacity to invest. They should seize this opportunity to contribute to our nation’s growth,” he urged.

The billionaire’s call to action extended to Nigerians living abroad, inviting them to invest in their homeland.

“Bring your resources back from Dubai and other parts of the world and invest in Nigeria,” he said, reinforcing his commitment to seeing the country’s economy thrive through diverse contributions.

This decision marks a strategic shift for Dangote Industries, focusing on dispelling monopoly myths and promoting a collaborative business landscape.

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Goya Foods Takes Legal Action to Assert ‘Goya Olive Oil’ Trademark Ownership



Goya Foods

“Goya Olive Oil” trademark in Nigeria, Goya Foods Incorporated has initiated legal proceedings against the Registrar of Trademarks under the Federal Ministry of Trade and Investment.

The case, numbered FHC/ABJ/CS/883/2023, was brought before the Federal High Court in Abuja.

Goya Foods, a prominent producer and distributor of foods and beverages across the United States, Spanish-speaking countries, and Nigeria, seeks to enforce a longstanding consent judgment issued by the court in December 2006.

The judgment directed the Registrar to rectify the Trademarks Register to reflect Goya Foods Incorporated as the rightful owner of the “Goya Olive Oil” trademark, without any further formalities.

The lawsuit, exclusively revealed to sources, underscores Goya Foods’ determination to safeguard its intellectual property against alleged infringements.

According to court documents, Goya Foods obtained the consent judgment against Chikason Industries Limited, which was accused of marketing “Goya Olive Oil” in Nigeria, thus infringing on Goya Foods’ registered trademark.

Legal counsel for Goya Foods, Ade Adedeji, SAN, emphasized the necessity of rectifying the Trademarks Register to protect their trademark interests effectively.

Despite appeals to the Registrar, the requested rectification has not been implemented, prompting Goya Foods to escalate the matter through legal channels.

The case has been adjourned to September 27, 2024, for further proceedings, highlighting the complexity and significance of trademark disputes in the global marketplace.

Goya Foods remains committed to upholding its brand integrity and securing its proprietary interests amidst the evolving landscape of international trademark law.

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