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Reactions as Dangote Asks Northern Govs to Combat Extreme Poverty

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Aliko Dangote - Investors King
  • Reactions as Dangote Asks Northern Govs to Combat Extreme Poverty

Africa’s richest man and President of the Dangote Group, Aliko Dangote, on Wednesday expressed concern about the high rate of poverty in the North, saying northern governors should wake up to address the problem.

Dangote stated this when he delivered a keynote address at the 4th edition of Kaduna Economic and Investment summit (KADInvest 4.0).

He noted that 60 per cent of northerners lived in extreme poverty, saying it was unacceptable for a people with vast arable land for agriculture to live in poverty.

The billionaire urged the governors to wake up and pull the region out of its current economic woes.

He said, “The North must focus on harnessing its massive agricultural potential in terms of both production and processing. No region with high such agricultural potential should be this poor.

“We have what it takes to turn around our fortunes and I pray all the 19 governors of the northern states will wake up and follow the footsteps of the Kaduna State Government.

“Given the vast arable land and conducive condition, I think in the next 10 years, agriculture can generate more revenue and prosperity than oil that we have now if we have the right commitment.”

He also told governments in the region to identify their areas of comparative advantage, adding that the provision of information and data on what was available in various states was equally necessary.

According to him, efforts should be made to encourage local investors because “they will attract foreign investors.”

Dangote said, “While the overall social economic consideration in the country is a cause for concern, the regional indicators are very alarming. In the north-western and north-eastern parts of Nigeria, more than 60 per cent of the population lives in extreme poverty.

“It is instructive to know that the 19 northern states, which account for over 54 per cent of the country’s population and 70 per cent of its landmass, collectively generated only 21 per cent of the total sub-national internally generated revenue in 2017.

“Northern Nigeria will continue to fall behind if the respective state governments do not move to close the development gap and that is why we are always saying that the biggest challenge we have and what we are always praying for is to have 10 governors like Mallam Nasir El-Rufai in the North.”

Yakasai, Balarabe Musa back Dangote

Meanwhile, elder statesman, Alhaji Tanko Yakasai, and a former governor of old Kaduna State, Alhaji Balarabe Musa, supported Dangote’s position.

In separate telephone interviews with one of our correspondents, in Abuja, on Wednesday, both men expressed displeasure with the way northern governors were administering their states.

Yakasai said, “We still have arable land and a growing population of young, energetic but jobless people roaming the streets but our governors are not providing the right kind of leadership to turn this population into a useful force in our farms.

“What is required of the Federal Government are the right policies as well as provision of power and other infrastructure because the governors own all the land in Nigeria and land is key to agriculture. Dangote is absolutely right.”

Also, Musa said, “I agree with Aliko Dangote, our governors are part and parcel of our problem especially in the area of corruption. These governors are engaged in massive stealing, corruption and waste of public resources.

“The North certainly has no business with poverty but we are certainly not making progress with the kind of leadership we have both at the federal level and in the various northern states today.”

At the event, President Muhammadu Buhari said the Federal Government would accord priority to economic recovery.

Buhari noted that the implementation of the economic recovery and growth plan would no doubt create sustainable jobs and prosperity for Nigerians.

Earlier in his remarks, El-Rufai assured the people of the state of his administration’s willingness to implement the suggestions made at the last edition of the KADinvest, especially the state development plan, the tax consolidation and the development of a digital land registry.

El-Rufai also announced that the state had attracted over $500m investments in four years in spite of the challenges confronting it.

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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Dry Cleaners Set to Tap into $165 Billion Global Cleaning Industry

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The Fabric Professionals and Dry Cleaners Association of Nigeria (FPDA) is gearing up to host the “Clean Show Africa 2024” conference.

This conference aims to expose over 25,000 dry cleaners to the vast opportunities present in the global cleaning and hygiene industry, valued at a staggering $165 billion.

Scheduled to take place on May 28–29, 2024, in Lagos, the event is themed “Positioning Africa’s fabric and hygiene industry for excellence.”

It comes at a crucial time when Nigeria’s dry cleaning industry is experiencing steady growth, with projections indicating a 6.4% annual increase over the next decade.

According to Enibikun Adebayo, Chairman of FPDA, Nigeria’s dry cleaning industry was valued at $8.4 million in 2019.

However, this figure is expected to rise significantly, presenting a ripe opportunity for stakeholders to tap into.

Adebayo emphasized the importance of collaboration within the industry to fully leverage its potential.

“A year ago, we launched FPDA of Nigeria. We are also using the platform to educate our members to be better professionals,” stated Adebayo, highlighting the association’s commitment to enhancing professionalism and standards within the sector.

The conference will shine a spotlight on women in the dry cleaning business, recognizing their pivotal role in driving the industry forward. Reports have shown that dry cleaning businesses are often better managed by women, and the event aims to provide them with the necessary support and resources to thrive.

Ruth Okunnuga, Managing Director of Wasche Paint Nigeria, expressed the need to revolutionize Nigeria’s dry cleaning and laundry industry, emphasizing the lack of proper structure and investment.

She stressed the importance of data collection for effective planning and growth within the sector.

Joseph Oru, Managing Director of Zenith Exhibition, highlighted the conference’s objective of engaging the Federal Government to establish training institutions for dry cleaners. Such institutions would play a crucial role in equipping professionals with the skills and knowledge needed to meet global standards.

As Nigeria’s dry cleaning industry prepares to tap into the vast opportunities offered by the global cleaning market, the Clean Show Africa 2024 conference stands as a pivotal platform for collaboration, innovation, and growth within the sector.

With a focus on excellence and professionalism, stakeholders aim to position Nigeria as a key player in the dynamic and lucrative cleaning and hygiene industry.

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Nigeria-Taiwan Commerce Falls to $500m in 2023

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The Chief of Mission to the Taiwanese Government in Nigeria, Andy Liu, has said that the trade relations between Nigeria and Taiwan drop to $500 million in 2023 from $1 billion in 2021.

Liu made these comments during the 2024 Taiwan Business Forum held in Lagos.

According to Liu, Nigeria’s status as a net exporter of agricultural products, particularly sesame seeds has historically fueled the trade between the two nations.

However, the peak in trade experienced in 2021, buoyed by increased demand for Nigerian agricultural goods, notably declined in subsequent years.

“The highest peak of trade reached about $1 billion in 2021. It was the peak of COVID-19, with Nigerians enjoying surplus trading with Taiwan. We imported more of Nigeria’s agricultural products, such as sesame, aside from oil-related products. In 2021, we had a huge demand for agricultural products for our food processing industries,” Liu stated.

However, the trade dynamics shifted in the following years, leading to a significant decline in trade volume.

Liu attributed this decline to a normalization of demand following the peak in 2021, resulting in a reduction in trade value to $500 million by 2023.

Despite this decrease, Liu remained optimistic about the future trajectory of trade relations between the two countries.

“We might see some level of increase in the near future,” Liu enthused, highlighting Nigeria’s continued significance as a destination for Taiwanese businesses.

In addition to discussing trade volume, Liu addressed the issue of counterfeiting and piracy, which has affected Taiwanese products globally.

He said the Taiwanese government is working to combat this challenge by showcasing the quality of Taiwanese products and providing after-sale services.

“We have been having our delegates visit the world to prove that we are victims of piracy, but we are going to use the platform to show that we have good and quality products to let the world know who the true providers of these quality goods are,” Liu affirmed.

The President of Globe Industries Corporation, David Hwang, echoed concerns about counterfeit products, attributing the decline in profit margins to the influx of counterfeit goods from China.

Hwang emphasized the need for partnerships to address this issue and foster mutually beneficial trade relations.

Responding to the developments, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Sola Obadimu, commended the Taiwanese focus on African businesses and the quality of their products.

He pledged NACCIMA’s continued collaboration with Taiwanese companies to drive business growth for both nations.

As Nigeria and Taiwan navigate the challenges posed by fluctuating trade volumes and counterfeit goods, stakeholders remain committed to fostering resilient and mutually beneficial economic ties.

The 2024 Taiwan Business Forum served as a platform for dialogue and collaboration, laying the groundwork for future cooperation between the two nations.

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Nigeria Advances Plans for Regional Maritime Development Bank

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Nigeria is making significant strides in bolstering its maritime sector with the advancement of plans for the establishment of a Regional Maritime Development Bank (RMDB).

This initiative, spearheaded by the Federal Government, is poised to inject vitality into the region’s maritime industry and stimulate economic growth across West and Central Africa.

The Director of the Maritime Safety and Security Department in the Ministry of Marine and Blue Economy, Babatunde Bombata, revealed the latest developments during a stakeholders meeting in Lagos organized by the ministry.

He said the RMDB would play a pivotal role in fostering robust maritime infrastructure, facilitating vessel acquisition, and promoting human capacity development, among other strategic objectives.

With an envisaged capital base of $1 billion, RMDB is set to become a pivotal financial institution in the region.

Nigeria, which will host the bank’s headquarters, is slated to have the highest share of 12 percent among the member states of the Maritime Organization of West and Central Africa (MOWCA).

This underscores Nigeria’s commitment to driving maritime excellence and fostering regional cooperation.

The bank’s establishment reflects a collaborative effort between the public and private sectors, with MOWCA states holding a 51 percent shareholding and institutional investors owning the remaining 49 percent.

This hybrid model ensures a balanced governance structure that prioritizes the interests of all stakeholders while fostering transparency and accountability.

In addition to providing vital funding for port infrastructure, vessel acquisition, and human capacity development, the RMDB will serve as a catalyst for indigenous shipowners, enabling them to access financing at favorable terms.

By empowering local stakeholders, the bank aims to stimulate economic activity, create employment opportunities, and enhance the competitiveness of the region’s maritime sector on the global stage.

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