- Nigeria Needs N4.5tn Annually for Infrastructure — Report
Nigeria requires $15bn (N4.59tn at N306 to a dollar) worth of investments annually for 15 years in order to adequately develop its infrastructure nationwide, the Financial Derivatives Company, an economic and financial research firm, has said.
In its latest bi-monthly Economic and Business report for February 2018, the FDC stated that the underinvestment in infrastructure in Nigeria over the years had widened the infrastructural gap across the country.
The report obtained in Abuja on Friday, however, stated that the Federal Government’s limited access to foreign credit and revenue constraints had made it difficult for the country to source for funds to meet its infrastructural needs.
It said, “Nigeria’s underinvestment in infrastructure has left it with a core stock of infrastructure of just 20 per cent to 25 per cent of Gross Domestic Product, compared to an average of 70 per cent of the GDP for more advanced middle-income countries of similar size.
“Bridging this gap will require investing about $15bn annually for the next 15 years. Given the government’s limited access to international debt, revenue constraints and competing priorities, the major question is where will funding be sourced?”
The report stated that the crippling infrastructure deficit in Nigeria was one of the biggest challenges confronting the country.
This, according to the FDC, has significantly increased the cost of doing business in Nigeria, adding that it has hampered both international and local investments in Nigeria.
It said, “One of the biggest constraints to competitiveness, economic growth and diversification in Nigeria is the crippling infrastructure deficit, estimated at about $300bn (N30tn) by the African Development Bank.
“They estimate that the gross underinvestment in infrastructure over the years has left Nigeria with a core stock of infrastructure of just 20-25 per cent of the GDP, compared to 70 per cent for more advanced middle-income countries of similar size.
“This has driven the cost of doing business up significantly and impaired both foreign and domestic investment. The cheapest alternative to public power supply is at least three times more expensive. Businesses simply need adequate transportation systems (road, railway and port) to receive supplies and access markets for their goods.”
The FDC described the capital budgets of Nigeria in 2017 and 2018 as unimpressive, particularly when compared to the capital budget of a country like China.
It, however, noted that it was not feasible for Nigeria to attempt to follow the Chinese model in terms of capital budget, given the revenue profile in the African nation.
The report stated, “Nigeria spent N2.07tn (three per cent of the GDP) on capital expenditure in 2017 and plans to spend N2.43tn (3.5 per cent of the GDP) in 2018. This pales in significance to China, which spent an estimated 15 per cent of its GDP per year on infrastructure between 1980 and 2005.
“Attempting to follow the Chinese model will amount to spending N10tn ($33bn) per annum on infrastructure, 16 per cent higher than total expenditure proposed in the 2018 budget. This is simply not feasible given Nigeria’s current revenue profile and the huge burden of recurrent expenditure, much of which already goes into debt servicing.”
It added, “Borrowing specifically to address the infrastructure gap would only push the debt-to-GDP and debt-to-exports ratios – 11.1 per cent and 62.4 per cent, respectively – beyond sustainable levels.”
The Minister of Power, Works and Housing, Babatunde Fashola, on Thursday in Abuja confirmed that work had stalled on several road projects across the country due to funding constraints.
Dangote Sugar Refinery Postpones Board Meeting Amid Social Unrest
Dangote Sugar Refinery Has Postponed Board Meeting Scheduled for Today Amid Social Unrest
The management of Dangote Sugar Refinery Plc on Friday said they have decided to postpone the company’s board meeting scheduled to hold today October 23, 2020 to a date they will communicate soon.
The management said the decision was due to the ongoing precarious situation in the country, especially the attacks on various establishments since governor Sanwo-Olu imposed a 24-hour curfew on all parts of the state.
In a statement signed by the company secretary, Mrs. Temitope Hassan, Dangote Sugar Refinery said “Further to our announcement made on October 8, 2020, the Company wishes to notify the Exchange and the investing public that the meeting of the Board of Directors of the Company earlier scheduled to be held on Friday October 23, 2020 to consider the draft unaudited financial statement of the Company for the Q3 ended September 30, 2020 has been postponed in view of the current precarious situation in the country.
“The new date for the meeting will be communicated as soon as normalcy returns. The Closed Period which has already commenced will continue till 24 hours after the filling of the Results.
“No insider of the Company, including its Directors, Employees, Advisers and Consultants and their connected persons may deal directly or indirectly in the Shares of the Company during the Closed Period.
All Dangote Sugar Refinery Plc Insiders have been duly informed.”
Put a Total Ban on Importation of Tomato Paste, Dangote Tells FG
Dangote Calls for a Complete Ban on Importation of Tomato Paste
Dangote Tomato Processing company has called on the Federal Government to put a complete ban on importation of tomato paste into the country.
Abdulkarim Kaita, the Managing Director, Dangote Tomato Processing Plant situated in Kadawa, Kano State, made the call while flagging off the distribution of tomato seedlings to 5,000 farmers under the Central Bank of Nigeria’s Anchor Borrowers programme.
Kaita, who said the company was working with the CBN to provide tomato farmers with high yield seeds that would allow them to produce a minimum of 40 tons per hectare, said “We are appealing to the Federal Government to put a total ban on the importation of tomato like what it did to rice.”
Kaita said the call was important to deepen local production of tomato and ensure the country was self-sufficient in tomato production.
Speaking further, he said a complete ban of tomato past importation would lead to more investment in the industry and foster growth of processing plants, a move that would increase job creation opportunities for many people in the country.
“It is only by putting a total ban on tomato importation that the government can encourage farmers to grow the commodity for the country to be self-sufficient,” he said.
He added that “There are 12 major tomato producing states in the country which if fully cultivated, in the next one year Nigeria will be able to start exporting tomato.”
Livestock Feeds Appoints Adegboyega Adedeji as Substantive Managing Director
Adegboyega Adedeji is the Substantive Managing Director
Livestock Feeds Plc on Monday announced it has appointed Mr. Adegboyega Adedeji as the company’s substantive Managing Director, effective from 2nd October 2020.
In a statement released on the Nigerian Stock Exchange (NSE), the company said Mr. Adedeji was the Acting Managing Director of the Company before he was appointed as the Managing Director.
It added that Mr. Adedeji was “formerly the General Manager, Sales and Operations responsible for all sales activities and the strategic development of the Company’s markets, along with new products portfolio generation and development.”
He graduated from the famous Obafemi Awolowo University, Ile-Ife in 1996 and had his MBA from the University of Roehampton, UK in 2018.
He worked with Grand Cereals Limited as Regional Sales Manager before becoming their procurement manager. He moved to UACN Plc in 2007 as the Training Services Manager, a position held till September 2009 before he was transferred to UAC Restaurant.
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