Economy

BOI Outlines Path to Achieving $1 Trillion Nigerian Economy by 2026

Published

3 days ago

September 30, 2024

The Bank of Industry (BOI) has outlined steps Nigeria must take to realize its ambition of achieving a $1 trillion economy by 2026.

This was disclosed by the bank’s Divisional Head of Services, Isa Omagu, on Saturday at the 2024 annual conference of the Finance Correspondents Association of Nigeria in Lagos.

At the conference, themed Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and the Real Sector, Omagu said it is important Nigeria prioritize enhancing its production capacity.

“The economy relies on both the monetary and fiscal sides; we need both to work together. While the monetary side is trying to stabilize prices, which is its primary mandate, we also need the fiscal side, particularly governance, to come in,” Omagu said.

“We are not producing enough, and we cannot continue consuming imported goods while expecting the economy to be robust.”

He further called for continued investment in agriculture, infrastructure, and services, stating that these sectors will drive production.

According to Omagu, this approach will reduce import dependency and ease the pressure on foreign exchange.

“If we continue to invest in agriculture, infrastructure, and services to a reasonable extent, this will drive production, reduce imports, and alleviate the pressure on our forex,” he noted.

Omagu stressed that boosting production capacity is essential for achieving a $1 trillion economy.

“There’s no way to achieve a $1 trillion economy without focusing on boosting our production capacity,” he said.

He also highlighted several funding initiatives aimed at supporting small and medium enterprises (SMEs) and large enterprises.

“There is a N200 billion integration fund and a N50 billion grant for SMEs in rural areas. So far, we have disbursed up to 98 percent of the money, with N50,000 allocated per beneficiary. Additionally, there’s N5 billion for SMEs, available as a long-term loan at a single-digit interest rate, designed to help SMEs access crucial funding for their businesses,” he explained.

Omagu also revealed a fund for one million start-ups and large enterprises involved in production, which he said will promote job creation and increase exports.

“There is a fund for one million SMEs and another for large enterprises in manufacturing. These funds are offered at a single-digit interest rate, repayable over seven years, enabling businesses to acquire the necessary equipment for production.”

He concluded by expressing optimism that these initiatives would reduce import dependency, grow employment, and help Nigeria produce for export, thereby increasing non-oil foreign exchange inflows into the country.

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Piracy and Illegal Fishing Threaten Nigeria’s $2.5tn Ocean Economy, Maritime Experts Warn

Bassey Marshall

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Economy

High Cost of Living: FG Removes VAT on Diesel, Cooking Gas

Published

1 hour ago

October 3, 2024

Ugwoke Ogbodo

The Federal Government said it has removed Value Added Tax (VAT) on diesel and cooking gas, among others as part of measures to cushion the harsh economic realities in the country.

Unveiling two major fiscal incentives, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said VAT was modified to reduce the hardship citizens battle.

Edun, in a statement by the Director, Information and Public Relations at the Ministry of Finance, Mohammed Manga, said the incentives are aimed at transforming Nigeria’s oil and gas sector.

He identified the incentives as value-added tax (VAT) modification order 2024 and notice of tax incentives for deep offshore oil and gas production, in accordance with the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order 2024.

Explaining the incentives further, the Minister stated that the VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

According to him, the measures are designed to lower the cost of living, reinforce energy security, and boost the nation’s transition to cleaner energy sources.

In addition, he said the Notice of Tax Incentives for Deep Offshore Oil & Gas Production provides new tax reliefs for deep offshore projects, adding that the initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.

The minister maintained that the reforms are part of a broader series of investment-driven policy initiatives championed by President Tinubu, in line with Policy Directives 40-42.

He said the policies are pointers to the Federal Government’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.

Edun assured that the initiatives would ensure Nigeria’s firm track to reclaim its position as a leader in the global oil and gas market.

According to him, these fiscal incentives demonstrate President Tinubu’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.

Economy

Farmers Warn of Looming Food Crisis in Nigeria, Urge Government Action

Published

1 day ago

October 2, 2024

Bassey Marshall

The All Farmers Association of Nigeria (AFAN) has identified flooding, insecurity, low mechanization, and difficulty in accessing credit as some of the factors responsible for the country’s food shortage.

The farmers warned that Nigeria could face severe food shortages if the government fails to address these challenges.

This was disclosed in a statement by the National President of AFAN, Kabir Ibrahim, on Monday.

Ibrahim called on the Federal Government to intervene urgently to prevent the country from slipping into a worse situation.

He revealed that measures such as food importation, support for smallholder farmers, and the distribution of palliatives and agricultural inputs should be implemented.

He urged the government to adopt seamless agribusiness practices, particularly through the African Continental Free Trade Area (AfCFTA).

Ibrahim also encouraged the government to offer incentives and affordable credit to small and large-scale agribusiness farmers, noting that this would boost food production and distribution.

However, Ibrahim pointed out that palliatives and mass importation are only temporary measures.

He urged the government to consider long-term solutions, especially sustainable agribusiness practices that support smallholder farmers.

He said, “Various efforts such as the importation of some food items for a given period in defined quantities, support to smallholder farmers or small-scale producers, and distribution of palliatives and agricultural inputs are works in progress.

“These should be implemented transparently and dispassionately for them to impact the food system by immediately bringing down prices.

“The most probable respite can come by encouraging seamless agribusiness practices through AfCFTA and other available windows.

“The engine room of food production in Nigeria still revolves around the smallholder farmers, who should be encouraged to scale up by enabling them to get real value for their produce, among a myriad of other incentives.”

Economy

Piracy and Illegal Fishing Threaten Nigeria’s $2.5tn Ocean Economy, Maritime Experts Warn

Published

3 days ago

September 30, 2024

Bassey Marshall

Maritime stakeholders have identified piracy, illegal fishing, interstate disputes, and transnational crime as some of the factors hindering the country from achieving the $2.5tn ocean economy.

Speaking at the 2024 International Maritime Organisation World Maritime Day held in Lagos State, the Chairman of the Commission on the Limits of the Continental Shelf, Prof Larry Awosika, echoed the need for the Nigerian government to tackle these issues.

The stakeholders also outlined other challenges that demand urgent attention, particularly the smuggling of arms and narcotics.

Awosika further warned that failure to tackle these issues, which he described as security threats, could affect investment in marine exploration and tourism.

According to him, ensuring safe, secure, energy-efficient, and low-carbon maritime transport in the country is essential for the sustainable exploitation of marine resources in the country.

“Unsustainable maritime practices, including security and environmental degradation, pose significant threats to marine-based industries,” he stated.

He urged the Federal Government to prioritise safety at sea through new investments in infrastructure, science, data, and technology.

Also speaking at the event, the Minister of Marine and Blue Economy, Adegboyega Oyetola, represented by the Permanent Secretary of the ministry, Olufemi Oloruntola, called on the Federal Government to invest in upgrading facilities and building capacity to keep Nigeria competitive in global seaborne trade.

He emphasised the importance of the support of the private sector which according to him, will help elevate the country’s maritime industry.

“To ensure both shipping safety and operational efficiency, the government must invest in upgrading facilities and building capacity to keep Nigeria competitive in global seaborne trade,” Oyetola stated.

“Achieving world-class standards would require continued support from the private sector, whose collaboration is crucial in providing the resources and state-of-the-art facilities necessary to elevate Nigeria’s maritime industry,” the minister said.