Connect with us

Economy

FG Boosts Export with N20bn Claims Settlement Approval

Published

on

Trade - Investors King
  • FG Boosts Export with N20bn Claims Settlement Approval

Federal government efforts to diversify the economy to shoreup foreign exchange has received a boost with the approval of N20 billion for export claims settlement.

The Executive Director/Chief Executive Officer, Nigeria Export Promotion Council (NEPC), Olusegun Awolowo announced the approval at a stakeholders’ forum on the revised guidelines on the Export Expansion Grant (EEG) in Kano.

An initiative of the federal government, the Export Expansion Grant (EEG) was meant to encourage exporters of non-oil products, including agro-commodities, in order to cushion the effects of infrastructural deficiencies and reduce overall unit cost of production.

It was introduced through the Export Incentives and Miscellaneous Provisions Act, Cap 118 of 1986 to enhance the contributions of non-oil export to the national economy.

Awolowo, had at another forum recently said if the huge EEG claims of over N300 billion was not addressed, it would affect the efforts of the government to diversify the economy owing to the near absence of incentives to encourage exports.

Awolowo stated that the review of the scheme by the federal government was meant to boost the economy, as well as resuscitate ailing industries in the country.

According to him, the theme of the forum, ‘Improved EEG scheme for sustainable growth and development,’ was to review the scheme by an inter-ministerial committee set up to look at the underlying issues and proffer solutions to enable the reactivation of the scheme after its suspension in 2013.

“I am glad to also announce that the Federal Government has approved a budgetary provision for the settlement of the EEG claims, with initial provision of N20billion in the 2017 budget for the settlement of the current year’s export claims.

“This will eliminate complaints over revenue loss by utilising agencies, as well as the Export Credit Certificate, which replaces the Negotiable Duty Credit Certificate, which is expected to cover a wider scope than just settlement of taxes. Its usage will include purchase of government’s bonds, settlement of government loans, such as from the BoI, NEXIM AMCON, BoA etc.”

The President of Manufacturers Association of Nigeria (MAN), Mr Frank Jacobs, had recently called on the federal government to re-introduce EEG scheme to salvage the manufacturing sector.

He said that recipients of the export grant held an instrument called Negotiable Duty Credit Certificate (NDCC) which they used in the payment of import and excise duties. Jacobs said that the suspension of the NDCC had affected export of manufactured goods which had drastically reduced the volume of exports.

According to him, the inability of Nigerian exporters to meet delivery targets has destroyed the confidence built over the years by overseas importers of Nigerian products. Jacobs said that MAN had severally met with the Vice President and the Minister of Trade, Commerce and Investment on the need to re-introduce EEG scheme to boost the manufacturing sector.

He added: “The association also visited the Minister of Finance, Mrs. Kemi Adeosun and she assured that MAN “will be hearing from government soon but till now nothing has been done.”

“We have made it clear to the government to re-introduce EGG and pay the outstanding NDCC to save many companies that are folding up. Some have folded up already. The Vice President has promised us that something will come up soon but we do not know how soon it will be, if nothing is done fast many companies are still going to fold up; we are hoping that the government that soon do something positive with regard to the NDCC,” Jacobs said.

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.

Continue Reading
Comments

Economy

Nigerians Struggle as Sachet Water Prices Hit Record Highs Amidst Economic Hardship

Published

on

As economic challenges persist in Nigeria, citizens face yet another hurdle of soaring prices of sachet water, a vital source of drinking water for many.

Sachet water, colloquially known as ‘pure water,’ served as a convenient and inexpensive option for hydration, with prices starting at N5 in the early 2000s.

However, over the years, the cost has steadily climbed to as high as N50 per sachet.

This exponential increase has forced many Nigerians to seek alternative sources of water, including boreholes and wells, despite concerns about their safety.

Residents across the country, from Lokoja to Abuja, lament the financial strain caused by the inflated prices.

Marvelous Sanni, a resident of Lokoja, recounts how a bag of sachet water, once priced at N200, now sells for N400 to N500.

Families like hers have been compelled to turn to borehole water, raising questions about sanitation and health risks.

The situation is dire for households like that of Margret Danjuma in Abuja, who can no longer afford the daily consumption of sachet water.

Resorting to purchasing water from boreholes, Danjuma reflects the broader struggle faced by many Nigerians in securing clean and affordable drinking water amidst economic turmoil.

Local businesses, too, feel the pinch, with some restaurants discontinuing the provision of water to customers or resorting to unconventional methods like selling water in nylon bags.

The Association of Pure Water Producers attributes the price surge to rising production costs, including the cost of materials and treatment.

Experts and consumer protection agencies express concern over the unjustifiable price hikes, attributing them to greed and cartel-like behavior within the industry.

Calls for government intervention to regulate prices and ensure affordability resonate amid the growing hardship faced by Nigerians nationwide.

Continue Reading

Economy

Port Harcourt Refinery Receives Over 450,000 Barrels of Oil – Mele Kyari

Published

on

NNPC - Investors King

The Nigerian National Petroleum Corporation Limited (NNPC) has announced a significant milestone in the rehabilitation of the Port Harcourt refinery, with over 450,000 barrels of oil already stocked into the facility.

Mele Kyari, the Group Managing Director of NNPC, disclosed this development during a press briefing after appearing before a Senate Ad-hoc Committee investigating the various Turn Around Maintenance projects of the country’s refineries.

Kyari’s revelation underscores the progress made in the rehabilitation efforts of the Port Harcourt refinery, which has been undergoing mechanical works alongside the Warri and Kaduna refineries.

The influx of crude oil into the Port Harcourt facility signals a crucial step towards its operational revival, following years of underperformance and neglect.

Addressing the Senate committee, Kyari reiterated NNPC’s commitment to fulfilling its promises regarding the refinery rehabilitation projects.

He emphasized the importance of regulatory compliance testing before commencing operations, assuring stakeholders that the Port Harcourt refinery is poised to restart operations within the next two weeks.

The news of the refinery receiving a substantial volume of oil injects optimism into the Nigerian energy sector, highlighting the potential for increased domestic refining capacity and reduced dependence on imported petroleum products.

It also aligns with the government’s broader agenda of revitalizing the country’s oil and gas industry to drive economic growth and self-sufficiency.

As the Port Harcourt refinery gears up for a potential restart, attention now turns to the forthcoming regulatory compliance tests and operational readiness assessments.

The successful revival of the refinery holds the promise of not only bolstering Nigeria’s energy security but also stimulating broader economic development and job creation initiatives.

Continue Reading

Economy

CBN Governor Transfers N100bn Worth of Fertilisers to Agriculture Ministry for Food Security Enhancement

Published

on

fertilizer - Investors King

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, handed over N100 billion worth of fertilisers to the Federal Ministry of Agriculture and Food Security.

The ceremonial handover took place at the ministry’s headquarters in Abuja, where the Minister of Agriculture and Food Security, Abubakar Kyari, received the substantial contribution.

During the handing over ceremony, Governor Cardoso emphasized the CBN’s commitment to maintaining price stability, identifying the cost of food as a critical component of inflation.

He noted that addressing food inflation is pivotal due to the significant portion of household expenditure allocated to food and non-alcoholic beverages in Nigeria.

Despite the implementation of various measures by the CBN to curb inflation, the inflationary pressures remain largely driven by escalating food prices.

Cardoso acknowledged the challenges posed by transient inflationary pressures but expressed optimism about substantial alleviation by the third quarter of 2024.

The collaboration between the CBN and the Ministry of Agriculture aims to mitigate the surge in food prices by enhancing food productivity and security.

In alignment with its strategic shift, the CBN veered away from direct quasi-fiscal interventions and transitioned towards leveraging conventional monetary policy tools to execute monetary policies.

As part of this strategy, the CBN announced the allocation of 2.15 million bags of fertiliser valued at over N100 billion to support the Ministry of Agriculture in its efforts to enhance food productivity and security.

Minister Kyari praised the CBN for providing fertilisers, emphasizing their significance as the majority cost value in agricultural production inputs.

He highlighted the challenges faced by the agriculture sector due to various factors, including the COVID-19 pandemic, flooding, climate change, and the naira redesign policy.

However, Kyari expressed optimism about mitigating these challenges and reiterated the importance of fertilisers in agricultural production.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending