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Tag: Economic growth

Nigeria Customs Service to Reestablish Relations with Cameroon and Chad
By Daniel Edu
In an announcement made by Adewale Adeniyi, the acting Comptroller General of the Nigeria Customs Service, plans are underway to renew positive diplomatic ties with Cameroon and the southern region of Chad. Adeniyi shared this intention during a meeting in Abuja where he hosted Borno State Governor, Prof Babagana Zulum.
Adeniyi emphasized the Customs Service’s commitment to rejuvenating cross-border trade within the northeastern region. He also highlighted the organization’s eagerness to facilitate enhanced trade activities in Nigeria’s northeastern area. Adeniyi stated, “As we move forward, we seek your assistance in engaging with the communities along the Borno border, especially considering the diminished insurgency threat. We will build upon our existing strong relationships and leverage them to reestablish favorable relations with both Cameroon and the southern sector of Chad.”
The Customs head projected that these efforts would contribute to the economic growth of the region, generating employment opportunities for the local populace.
Adeniyi expressed gratitude for the longstanding partnership between the Nigeria Customs Service and the Borno State Government, particularly in matters of border security and humanitarian support. He also affirmed his unwavering commitment to aiding terrorism victims within the state.
The Comptroller General pledged his organization’s full support to collaborate with the military in formulating innovative strategies to restore robust cross-border trade networks in the region.
Governor Zulum lauded Adeniyi’s appointment as the Comptroller-General and extended commendation to the Nigeria Customs Service for its invaluable contributions to uplifting the living standards of displaced communities across Borno and the northeastern region. Zulum acknowledged the Customs Service’s distribution of essential supplies to victims of the Boko Haram insurgency, providing relief to those affected by hardship.
Zulum expressed a keen interest in partnering with the Customs Service to facilitate trans-border trade activities in the North-East, particularly within Borno State. With the gradual return of peace to the region, Zulum affirmed his readiness to collaborate with the Customs Service in facilitating the transportation of goods between Nigeria’s borders and those of Cameroon, Chad, and Niger.
August 19, 2023
Ensuring an Economic Productive Nigeria 2023
By Adefolarin A.Olamilekan
Last last, year 2023 is here with us. Glory to Almighty God for sparing our life into the New Year. Life is a gift that can’t be compared to no other.
That why with all the shackles and buckles that shaped the event’s of the foregoing year 2022, that thrown many Nigerian’s off balance.
Not forgetting global events that also rubb on us, talking off the unending Russian-Ukraine war.
We just have to remain optimistic that this New Year would be better, prosperous and progressive for us.
Nevertheless, 2023 is loaded with two significant national activities. First been an election year, and expected change of administration. Secondly, the year is for national population census.
An opportunity to know how many are we for proper development planning.
This two national events are sacrosanct and there both outcomes would go a long way to align, re-shape,direct and refocused the trajectory of our nation for a very long time.
Meanwhile, the aforementioned are imperatives to this piece title ‘Ensuring a Productive 2023’. Our task here is to encourage managers of our national affairs,elected and appointed politicians,civil and public servants. Outgoing in the next five months and incoming also. To consider this year a no failure to productivity across board.
A glimpse retrospective on our national affairs has shown a score card of a very unproductive and wastful nation off both her human finance, and natural material resources.
Hence, it time for us to retrace our steps and redirect our national asset for productivity.
Although, many holds the believe that our challenges are numerous. For us a positive views of challenges and opportunities in the new year and going forward. Is located in our national productivity.
What then do we mean by productivity?
Economist assert that
Productivity refers to the physical relationship between the quantity produced (output) and the quantity of resources used in the course of production (input).
They added further that “It is the ratio between the output of goods and services and the input of resources consumed in the process of production.”
In other words, productivity as to do with the level in which resource been an input produces wealth that is output through various production process.
Meanwhile, all the process take in cognisance, human labour, machine and equipment,time,energy power, and raw materials forms.
On the other hand, what do we mean by a productive 2023?
For instances at the macro level, productivity is a measure of performance of an economy of a country. Equally from a
national viewpoint productivity is the ratio of available goods and services to the potential resources of the country.
Here, productivity means an economic measure of outputs indicator and the efficiency of resources.This would afford a long term growth of the economy.
Interestingly, productivity means that national resources are utilized to the optimum, while minimizing wastage. Leading to reduction in cost of production, and subsequently availability of quality products at lower and affordable price for citizens.
What then is the task for us in ensuring a Productive 2023.
We are expecting a new administration at the centre and congress of new and old legislators. For us Law and order, stability of Government, harmony between States, etc. are essential for a productive 2023. Elimination of all forms of inefficient would helps to improve national productivity. Critically, this would come through the competences and attitudes of managers of our national affairs occupying official positions. In the management of all national assets and resources that includes government policies and programs. That are significant to productivity output from government agencies practice as it impacts transportation, communication power, fiscal and monetary policies ( taxes, loan borrowing,debt, interest rate, foreign exchange,) influence national productivity at large.
This made productivity to be synonymous for progress. Arguably, the resources of a country are not always enough.
The benefits of a productive 2023
Generally, productivity is essential for improving living standards and for the prosperity of a nation. In addition productivity leads to economic growth and social progress.
It ensures workers earn better wages and working conditions, and creation of more employment opportunities. Productivity improves the exports and foreign exchange reserves of a country. Hence, productivity is the key to elimination of balance of trade deficits. It is through productivity that various value chain in sector such as agriculture are link and integrated into industrialization.
According to John W. Kendrick, “the chief means where by human kind can raise itself out of poverty to a condition of relative material influence is by increasing productivity”.
Succinctly, at macroeconomic level, productivity improves a country’s living standards because more goods and services are produced. And inflation and interest rates are stabilize, and gross domestic product (GDP) increase.
Consequently, at the microeconomic level, national productivity increase citizen’s real income and improve their ability to purchase goods and services.
At the same time afford them opportunity to enjoy leisure activities, access better housing and education, and contribute to social and environmental programs. And a medium to reduce mass poverty and inequality.
However, the governments earn more revenue through the widen tax net as a result of tax payments (which can be used to fund social and environmental programs).
In conclusion, for us we are optimistic about 2023 becoming a productive year. And this would come with a visionary and bold leadership as against stunted, feeble and passive chuavanist we had.
January 1, 2023
Nigeria records 3.11% Economic Growth in Q1’22 – NBS
The National Bureau of Statistics, NBS, said that Nigeria’s economy grew by 3.11%, year on year, YoY, in the first quarter of the year (Q1’22) from 0.51% recorded in the corresponding period in 2021 (Q1’21).
The NBS stated this in the Nigerian Gross Domestic Product Report (Q1 2022) released this morning.
The statement reads: “Gross Domestic Product (GDP) grew by 3.11% (year-on-year) in real terms in the first quarter of 2022, showing a sustained positive growth for six consecutive quarters since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020.
“The first quarter 2022 growth rate further represents an improvement in economic performance. The observed trend since Q4 2020 is an indication of a gradual economic stability.
“The Q1 2022 growth rate was higher than the 0.51% growth rate recorded in Q1 2021 by 2.60% points and lower than 3.98% recorded in Q4 2021 by 0.88% points. Nevertheless, quarter-on-quarter, real GDP grew at -14.66% in Q1 2022 compared to Q4 2021, reflecting a lower economic activity than the preceding quarter.
In the quarter under review, aggregate GDP stood at N45,317,823.33 million in nominal terms.
“This performance is higher when compared to the first quarter of 2021 which recorded aggregate GDP of N40,014,482.74 million, indicating a year-on-year nominal growth rate of 13.25%. The nominal GDP growth rate in Q1 2022 was higher relative to the 12.25% growth recorded in the first quarter of 2021 and higher compared to the 13.11% growth recorded in the preceding quarter.”
May 23, 2022
IMF ‘Doom Loop’ Warning – Fate of Economic Growth
By Adefolarin A Olamilekan
Global economic eventa in recent times is in a twist of fate. Especially as both developed and developing economies are upper-most in recovery from the unpleasant economic impact of Corona virus. Hence, we can not forget in a hurry the global economic projection that follows post covid-19 pandemic.
Nevertheless, just as the world was getting set to overcome the economic shock of the pandemic era.The Ukrainian- Russian war explode with it own consequences,both in human casualties and resources calamities. State Actors and non state actors have all lend there voices either for or against.
Conversly, what is generally peceives as the fall out of the Ukrainian – Russian war presently. The world cannot ignore is it impact on global economy,specifically on energy – crude oil,gas,coal and wheat food chain supply.
Chiefly, the United Nations for instance,specfically caution that the war would escalate “world food crisis”
This has left the entire global community to wakeup and set in motion how best to keep world food supply and distribution intact. However,the humanitarian crisis erupting from the war is an headache the world is grappling with.
Interesting, the foregoing is to help us appreciate the title and focus of this piece.Dissecting the recent warning and forcast from the International Monetary Fund (IMF) on global economic.
Humbly we can say, the IMF in twin seccesive report, that first upgrades Nigeria’s economic growth forecast to 3.4%.This was revealed in the Washington based Britton-Wood Institution ‘World Economic Outlook: War Sets Back the Global Recovery, report.
Second, was a warning coming from the neolibral lender in a report, titled “Emerging-Market Banks’ Government Debt Holdings Pose Financial Stability Risks”.
In the first report, the IMF was concerned with the global economic projection,that it streamline to reveal the institution thinking about Sub-Sahara African economics growth, before religiously predicting that of African largest economy. The global economy according to the Washington-based lender, is projected to slow from an estimated 6.1 per cent in 2021 to 3.6 per cent in 2022 and 2023. This recent updated is a departure from its January 2022 World Economy Outook forecasted before the ongoing war between Ukraine and Russia.
On the Sub-Saharan African region it projected 4.5 per cent in 2021, 3.8 per cent in 2022, and 4.0 per cent in 2023.
Given the projection above, individual nation like Nigeria is not isolated from global economic event.
In retrospect the IMF earlier in this year report, predicted a growth rate of 2.7 per cent for Nigeria in 2022. However, the latest update projection that is adjust due to active rising oil prices of which Brunt crude stand at $106.86/barrel. Draw attention and call for a watch.
Unfailingly, also IMF disclose a 3.1 per cent growth projection for the nation in 2023, down from 3.4 per cent in 2022 and 3.6 per cent in 2021.
All of this aforemention national forecast on economic projection in clear terms is to help in evaluating what need to be done. On trending challenges the economy is contending with on daily basis.
On the second report,the IMF strongly said there is a possibility of “doom loop” for Nigeria and other emerging economies.In the report “Emerging-Market Banks’ Government Debt Holdings Pose Financial Stability Risks”. Sadly, a ”doom loop’ is equally refers to as ‘diabolic loop’ and the popular ‘vicious circle’.This terms from economic paradigm connotes an upward or downward harmful economic impact.
According to IMF, “large holdings of sovereign debt expose banks to losses if government finances come under pressure and the market value of government debt declines,” Meanwhile,the Washinton lender disclose that there is a reason to worry about this connection between banks and governments. This was pointed out in the report as ‘doom loop’.Suggesting a negative spiral that can occur when “banks hold sovereign bonds and governments with weak public finances bail out such banks”.
Appreciably, we can understand this about Nigeria’s bank credit to the government. In recent time as taking a surging flight upward. Because as at Febuary 2022 it stand at N14.9 trillion , an upsurge from the N14.2 recorded in January 2022.
Curiously, this specifically maybe the leadoff to IMF warning about the danger of our hugely domestic borrowing and threats to economic stability.
Although in what look like a sabotages according to IMF is that holding government bond through credit “curtail lending to companies and households, weighing on economic activity.“
Thus, this could be a danger for a dependent market economy like ours. A situation where government have been told to hand over the economy to the private sector.
Moreso, if we consider the popular view of IMF. With it baggage of “fundamentalist idealogy of market forces and getting the right prices’. Instructively, the economy cannot rightly be private sector driven alone. Because to get the best of any economy,argaubly rquired public sector participation. Unfortunately, there are arguments and counter arguement on this seriously. Nonetheless,the fear over
credit to the government is believe to be counter productive.That sharply undermine investor confidence in the economy, as well as a demarket commercial banks status. For instance. banks with less capital holding government bonds in their portfolios.
may be drone into the risk, if governments default.
Regreattably, the ability of emerging-market governments to repay debts through up. One critical question that beg for answer.Why are emerging economies like Nigeria are so in debted to domestic banks and financial institutions?
The answer to the above questions require deep thinking. Because economist and the likes of IMF have told us there is nothing wrong in borrowing. Nevertheless, we have seen with our own eyes, that borrowing in itself stand to jeopadize and put pressure on the economy. Reason be that it is not going to be free from condition resulting, from global financial uncertaities,interest rate spiral and weak local currency.
Hopefully, to remedy the situation from ‘doom loop’ days. toward impactful economic growth is our take. That is, the Nigerian state in all sense of urgency must seek legislative input to enforce the economic diversification agenda. Secondly, governent at all levels must seek alternative to borrowing from domestic or foreign sources.
They should priorites their development project with available funds and ensure accountability as well as prudency.
Lastly, the CBN and DMO must ensure strict adherence to monetary rules guidelines. Especially to curtail excess and unwarrant bonds and credits to government.That could lead to bank stress, domestic shocks and unanticipated financial consequences. We believe the CBN using the monetary policy can normalize any negative impact of domestic debt on local banks and financial institutions.
April 25, 2022
Nigeria Economic Growth Must Outpace Its Population Growth – FG
The federal government has disclosed that it is targeting the attainment of economic growth rate that would be faster than the country’s population growth rate in order to enable the economy to recover fully from the effects of COVID-19 pandemic and eradicate poverty.
This was disclosed yesterday in Lagos by the Vice President, Yemi Osinbajo, during the ‘2021 LCCI Presidential Policy Dialogue’ which was meant to create the platform for Nigeria to lead the discussion on integrating African economies into the global market. The dialogue was organised by the Lagos Chamber of Commerce and Industry (LCCI).
Osinbajo said: “We need a growth rate that is faster than our current population growth so that at least there will be enough to go round.
“There is need for Nigeria to achieve high and sustained economic growth in order to create opportunities for our people. And to overcome poverty, we must promote productivity and value addition and move away from the spell of managing limited resources to producing and creating more in a competitive and sustainable manner.”
He noted that the federal government forestalled the disaster that the COVID-19 would have wrecked the Nigerian economy with the launching of the economic stimulus plan of N2.3 trillion in 2020 and has gone beyond this with the recent introduction of a mid-term economic plan for 2021. to 2025.
“It is clear to us that if we must achieve accelerated growth then we must opt for a new strategic direction and policy orientation. It is with this objective in mind that the Federal Executive Council recently signed up on the new medium term national development plan, from 2021 to 2025.
“The strategic objectives of the plan include establishing a strong foundation for a diversified economy that would invest in critical infrastructure and enabling human capital development.
“The implementation of the plan will be sustained by fiscal and monetary measures, including the review of subsidy regime and a better functioning foreign exchange market.
“The cornerstone of this strategy is boosting productivity, focusing on value addition as guiding principle for all sections such as agriculture, manufacturing, tourism etc.
“Our aim is to focus on resource enrichment and value addition and of course the development of the local industry so that we can create wealth all around the mineral and agricultural value chain,” he said.
Osinbajo added that the first and foremost goal of the 2021 to 2025 development plan is job creation, therefore, “all policies and programs are viewed from the lens of the jobs, both direct and indirect, it would create. This could also influence the incentives that could be given to sectors in the economy. Sectors that will create jobs are those to be supported and given the right kind of incentives.
“The focus must be on value addition whose implementation will help to create good paying jobs.”
The Lagos State Governor, Mr. Babajide Sanwo-Olu, who was represented at the policy dialogue by the Lagos State Commissioner for Economic Planning and Budget, Mr. Sam Egube, said that the current season the country found itself would not allow Nigeria to continue to do things traditionally and still hope to get a different result.
The governor said: “Natural resources are not enough to bring our desired national transformation. Nigeria must engage the collective mental attitude of our people to transform our natural resources and its potentials into reality. It is a choice that we have to make by pulling up our bootstraps and synergies as a team that is willing to earn its position among the global committee of nations.”
Speaking in the same vein, The Group Chairman of Nigeria Exchange Group, Mr. Abimbola Ogunbanjo, stated the need for clearly defined policies and the necessity to paying attention to technology in order to leverage on digitalisation,
He said: “Public policy making is foundational and essential to economic growth and development as the productivity of the private sector is linked to prevailing policies.
“We recognise the importance of policies in shaping the fortunes of private industries. Secondly, it is clear to us that technology will be the driver of advancement for years to come.”
The President of the LCCI, Mrs. Toki Mabogunje, urged the government to focus on building a thriving and sustainable economy that would enhance “social inclusion, poverty reduction and enlarging agricultural output for food security.”
November 27, 2021
2.9% economic growth projection achievable in spite IMF’s position– BMO
The Buhari Media Organisation (BMO) says the 2.9 per cent economic growth projection by the Federal Government for 2020 is achievable in spite of downward projection by the International Monetary Fund (IMF).
A statement signed by its Chairman, Niyi Akinsiju and Secretary Cassidy Madueke in Abuja, said the IMF projection would be proven wrong.
It disclosed that IMF position was arrived at after concluding its Article IV consultation with Nigeria.
The BMO said the IMF downward growth projection for Nigeria from its initial 2.5 per cent to 2.0 per cent was off the mark.
“They factored in obvious indicators that speak to weaknesses in terms of earnings, revenues and global trends fueled by the Coronavirus epidemic, which may indirectly affect Nigeria because of its impact on crude oil price that has hit economies around the globe.
“It is a known fact that before President Buhari took over in 2015, Nigeria was a mono-economy with its budget mainly based on the price of crude oil at the international market.
“Nigeria is in the process of active diversification. We have over the past four years commenced the process of looking inward and that is slowly but gradually taking our economy away from being foreign dependent.
“The IMF may have forgotten that Nigeria is diversifying its economy, thanks to Buhari’s foresight that it would be suicidal to rely entirely on revenue from oil to generate funds to bankroll the developmental programmes of government.
“This informed his decision to tow the path of economic diversification with focus on the development of agriculture, solid minerals, science and technology, manufacturing and Information Communication Technology (ICT).’’
The organisation said the Central Bank of Nigeria (CBN) which was the monetary policy authority of the nation had also been proactive in this new thinking.
It disclosed that the apex bank had raised Loan-to-Deposit Ratio (LDR) of banks from 60 to 65 per cent, principally to create more funds for credit to existing or new businesses.
The organisation noted that the CBN’s LDR had ensured that more than two trillion Naira credit was created over the past six months, while businesses were being funded and capacity to produce had increased leading to rise in job creation.
The BMO said that this would of course impact positively on the country’s GDP.
According to the organisation, the Finance Act is also changing the economic environment, either in terms of growing new small and medium scale enterprises through tax exemption for companies that have less than N25 million annual turnover.
“That is huge and it enhances investment for development.
“Nigeria has shown progress, and considering the current policies’ deployments by the Federal Government, our GDP growth rate would increase and also improve our GDP to population growth ratio.
“A number of legacy projects like Lagos-Ibadan expressway, Kashimbila Dam and hydro power project, Dadin Kowa dam are scheduled to be concluded and commissioned before the end of 2020. Lagos-Ibadan rail line will be operational by the beginning of the second quarter of this year.
“All these will also have multiplier effects on the economy. We are moving away from being a foreign dependent economy by domesticating the capacity of our own economy which is important for growth.’’ (NAN)
February 21, 2020
Chamber of Commerce urges S’East govs to develop seaports for economic growth
The South East Chamber of Commerce, Industry, Mines and Agriculture (SECCIMA) has advocated greater synergy among the South-East governors to develop the seaports and enhance the economy of the zone.
Mr John Udeagbala, former President of SECCIMA, made the call at the investiture of Mr Humphrey Ngonadi as the new President of the chamber in Nnewi, Anambra.
Udeagbala said that the development of seaports would not only boost the economy of the area but would attract foreign investors.
“The ports in the region, if developed, would be utilised to import and export goods at affordable rates, rather than going through the stress of Lagos seaport,” he said.
Udeagbala further urged the Federal Government to create an enabling environment to promote business growth and economic development across the country.
“We appeal to the federal government to provide Independent Power Project to power the business clusters in the region as it has done in Ariaria Market in Aba.
“We want similar gesture to be extended to other main markets and business clusters in other states of the region.
“We also appeal to the federal government to ensure that South-East benefited from the on-going rail projects from Port Harcourt to the Northern region.
“And we also urge the federal government to develop the Enugu International Trade Fair Complex like it did in Lagos and Kaduna, ” he said.
Udeagbala congratulated Ngonadi on his election as the new president of the chamber and advised him to work with the southeast governors to fashion out viable economic policies that would accelerate development in the region.
He also urged the new leadership of the chamber to be the voice of the business community in the region.
Responding, Ngonadi promised to sustain the good legacies of the association by bringing the city chambers in the zone together to establish a stronger organised private sector.
He promised to work with NACCIMA, other bilateral chambers of commerce in the country and global business associations for the advancement of the activities of the chamber.
Ngonadi is the third president of the association. (NAN)
February 20, 2020