Connect with us

Economy

Nigeria-China Trade Relationship Favours China – Agbakoba

Published

on

Institute of Chartered Shipbrokers
  • Nigeria-China Trade Relationship Favours China – Agbakoba

A former President of the Nigerian Bar Association, Dr Olisa Agbakoba (SAN), has said the trade relationship between Nigeria and China is skewed in favour of China, with Nigeria getting nearly nothing.

He argued that the bilateral relationship favoured China more because the Asian country had found in Nigeria a large market to keep pushing its manufactured products; while Nigeria on the other hand remained a consuming country, depending on imports.

He spoke in Lagos on Thursday at the 2018 annual conference of the Nigerian Institute of Chartered Arbitrators. The theme of the conference was ‘Enforcement of arbitral awards and economic growth in West Africa’.

He said, “The trade between Nigeria and China is so skewed in favour of China and we’re getting nothing; we’re import-dependent; everything is imported. If everything continues to be imported, where is our hope? We import toothpicks from China.

“I was listening to the DG of NAFDAC today (Thursday) talking about drugs; we import everything. This has just got to change.”

To address the problem, Agbakoba however called for caution, citing the Zambian example, where China had taken over the Africa country on account of default on a loan repayment.

He said, “The other day, I saw in Zambia, the head of Zambian police decorating a Chinese policeman who had taken over the Zambian police because Zambia defaulted on a loan. So, there are wider implications.”

Agbakoba lamented that despite a large pool of competent arbitrators in Nigeria, a lot of high-value disputes involving companies operating in Nigeria were still being taken abroad to be resolved by foreigners.

To reverse this trend, he said there must be a deliberate national policy by the government to encourage the local arbitration community.

One way the government can support Nigerian arbitrators, according to him, is to design a policy insisting that multinationals doing business in Nigeria must put a clause in their contracts stipulating that all arising disputes must be resolved in Nigeria.

“When (former Lagos State Governor, Babatunde) Fashola was in office and I was the NBA president, I approached him and there were some policy initiatives by Fashola, to the effect that all the trades and transactions within Lagos State had embedded in them an arbitration clause making Lagos the venue and that created jobs.

“We can’t sit down here and be training as arbitrators and becoming fellows and we don’t have jobs. The key thing in arbitration is to have work to do,” Agbakoba said.

The 2nd Vice-President of NICArb, Prof. Fabian Ajogwu (SAN), also expressed concern that Nigeria-origin disputes were being taken abroad for resolution “to the detriment of jobs and wealth creation in Nigeria.”

He blamed the trend on “the consumption attitude” of Nigerians and the speed with which Nigerian courts set aside arbitral awards.

The conference had in attendance the Presiding Justice, Court of Appeal, Lagos Division, Justice Mohammed Garba, who represented the appeal court President, Justice Zainab Bulkachuwa.

The President, National Industrial Court, Justice Babatunde Adejumo; and Mr Muniru Liadi, who represented the President of the Nigerian Bar Association, Mr Paul Usoro (SAN), attended the event.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

ICPC Says Nigeria Loses $10bn to Illicit Financial Flows 

Published

on

Naira Dollar Exchange Rate

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) says Nigeria accounts for 20 per cent or 10 billion dollars (N3.8 trillion) of the estimated 50 billion dollars that Africa loses to Illicit Financial Flows (IFFs).

Chairman of ICPC, Prof. Bolaji Owasanoye, said this during a virtual meeting to review a report on IFFs in relation to tax, Mrs Azuka Ogugua, spokesperson for ICPC, said in a statement released in Abuja on Friday.

The ICPC Chairman said, “the African Union Illicit Financial Flow Report estimated that Africa is losing nearly 50 billion dollars through profit shifting by multinational corporations and about 20 per cent of this figure is from Nigeria alone.”

The ICPC boss explained that taxes played “very strategic role in the nation’s political economy.”

He said the objective of the meeting was to improve on the awareness on IFFs, especially in the areas of taxation.

The ICPC boss added that the meeting would give participants the opportunity to openly discuss how to effectively use the instrumentality of taxation to curb IFFs through risk-based approach.

“Risk-based approach, that is: monitoring and audit; due process in tax collection; structured tax amnesty framework skewed in public interest; data privacy; timely resolution of audits and payment of tax refunds and intelligence sharing among revenue generating, regulatory and law enforcement agencies,” he said.

Owasanoye also stated that for the contemporary tax man to remain relevant, he must build his capacity in areas of technology management, solution architects and an astute relationship manager.

The Executive Chairman of Federal Inland Revenue Service (FIRS) Mr Muhammad Nani, expressed concerns that IFFs posed a serious threat to the Nigerian economy as the act robbed the nation of resources that were needed for development.

Nani declared that tackling IFFs would expand the country’s tax base and improve revenue generation, which was required for development.

He consequently pushed for policy reforms that would make it difficult for “capital flights” from occurring so that the country would be placed on the path of growth.

Other discussants at the event identified weak regulatory framework, opacity of financial system and lack of capacity amongst others as some of the factors that fuelled IFFs.

The discussants emphasised the need for capacity building of relevant stakeholders as one of the ways to stamp out illicit financial flows.

They commended ICPC for leveraging its corruption prevention mandate to open a new vista in IFFs discourse in Nigeria. (NAN)

Continue Reading

Economy

African Development Bank, Egypt Signs Agreements Worth €109 Million to Transform Sewage Coverage in Rural Areas

Published

on

AfDB

The African Development Bank Group has signed financing agreements of €109 million with the Government of Egypt to improve sanitation infrastructure and services for rural communities in Luxor Governorate in Egypt’s Upper Nile region.

The financing consists of a €108 million loan from the Bank, and a grant of €1 million from the Rural Water Supply and Sanitation Initiative (RWSSI) – an Africa-wide initiative hosted by the African Development Bank.

The funding, provided in a challenging global context, will help meet the Egyptian government’s financing requirements in the light of the COVID-19 pandemic, and support a sound water and sanitation infrastructure base, a key enabler for the country’s inclusive development.

The Integrated Rural Sanitation in Upper Egypt-Luxor (IRSUE-Luxor) project is set to boost sewage coverage in the region from 6% to 55%, improving the quality of life of citizens, including women and children, who are most affected by poor sanitation.

“Promoting efficient, equitable and sustainable economic development through integrated water resources management is a priority for the Government of Egypt. The IRSUE-Luxor initiative unlocks the socio-economic development potential for inclusive and green growth,” said Rania Al-Mashat, Minister of International Cooperation, who signed the agreements on behalf of the Egyptian government.

About 22,000 households (240,000 inhabitants) will benefit from on-site and off-site facilities, through an integrated system of sewerage networks, sludge treatment and wastewater treatment plants.

IRSUE-Luxor contributes to the National Rural Sanitation Program established by the Ministry of Housing, Utilities and Urban Communities, which aims to expand nationwide access to sanitation services from 34% currently to 60% in 2030.

The project also complements the national Haya Karima (Decent Life) initiative that aims to help rural communities across Egypt access essential infrastructure services to improve their living conditions and livelihoods.

Furthermore, the project includes a staff training component to strengthen performance within the Luxor Water and Wastewater Company.

“This intervention is not just about infrastructure development. An essential part of the project is supporting ongoing sector reforms,” said Malinne Blomberg, the Bank’s Deputy Director General for North Africa.

One of several initiatives supported by the African Development Bank in Egypt to optimize the use of the country’s water resources, IRSUE-Luxor will enable about 30,000 cubic meters of treated wastewater per day to be discharged into drainage and irrigation canals and re-used to enhance agricultural output.

The initiative is in line with the Bank’s water sector policy, which promotes efficient, equitable and sustainable development through integrated water resources management. In addition, the operation supports tariff regulation to achieve full cost recovery, which is one of the basic principles of the Bank’s water sector policy.

The partnership between Egypt and the African Development Bank Group dates back more than half a century. More than 100 operations have been deployed, mobilizing more than $6 billion across multiple strategic sectors.

Continue Reading

Economy

Manufacturing Firms Borrowed N570bn from Banks in 2020 – CBN

Published

on

Steel Manufacture At Evraz Plc West-Siberian Metallurgical Plant

Manufacturing firms borrowed a total of N570bn from Nigerian banks last year amid the economic fallout of the COVID-19 pandemic.

Banks’ credit to the manufacturing sector rose to N3.19tn as of December 2020 from N2.62tn at the end of 2019, according to the sectoral analysis of banks’ credit by the Central Bank of Nigeria.

The sector received the second biggest share of the credit from the banks after the oil and gas sector, which got N5.18tn as of December.

“The manufacturing sector, which is the engine of sustainable growth, is still struggling with the debilitating impact of the pandemic and is yet to recuperate,” the Director-General, Manufacturers Association of Nigeria, Mr Segun Ajayi-Kadir, said in January.

MAN, in a January report, revealed that most manufacturers said commercial banks’ lending rates were discouraging productivity in the sector.

The report said 71 per cent of Chief Executive Officers interviewed “disagreed that the rate at which commercial banks lend to manufacturers encourages productivity in the sector.”

It said the cost of borrowing in the country remained at double digits even amidst the reforms meant to culminate in lower rates to engender the country’s economic recovery process.

The report said, “Special single digit loans offered by development banks are still hard to leverage as conditionalities to assess the loans through commercial banks are often overwhelming and laden with additional charges that will eventually make the interest rate double digit.

“Seven per cent of respondents were, however, of the opinion that the rate at which commercial banks lend to manufacturers encourages productivity in the sector while the remaining 22 per cent were not sure of the impact of the rate of lending on productivity in the manufacturing sector.”

The report showed that 64 per cent of respondent disagreed that the size of commercial bank loan to manufacturing sector had encouraged manufacturing productivity.

It said the very high presence of the government in the money market, particularly through the sale of treasury bills, had been crowding out the private sector from the market.

Continue Reading

Trending