By Okeoghene Akubuike

The Bureau of Public Enterprises (BPE) has reiterated its commitment to optimise the Federal Government’s assets through private sector investment.

Alex Okoh, Director-General, BPE, said this at a media event in Abuja.

Okoh said there was a need for the Federal Government to rely less on borrowing and look to private sector investments to fund the nation’s fiscal plans.

He said the message of economic liberalisation was resonating more with the current administration.

Okoh said the environment and the reception of the ideology of privatisation were making more sense and gaining more ground under the present administration than the previous ones.

The director-general said the present government was free market-oriented and private sector-oriented, thereby showing encouragement for the private sector to play a more dominant role in the economy.

He said this was against previously keeping everything within government, even when inefficiently managed.

“The president has been engaging the international investment community with the same message that Nigeria is open for business.

“The signal we are sending is that we have the opportunities for foreign direct investments to locate opportunities within the sector.

“For us, it is the way to go. We cannot borrow ourselves out of this problem because the more you borrow the deeper you dig the hole.

“Our position has always been that we need to optimise the assets the Federal Government has and to rely less on borrowing to fund our fiscal plan.

“That is the role we will continue to play and more aggressively in 2024.”

Okoh said the size of Nigeria’s infrastructure stock to Gross Domestic Product (GDP) was about 35 per cent, describing it as low for the size of the country/economy.

He said other African countries considered to be ranked below Nigeria had a higher infrastructure stock to GDP compared to Nigeria.

The director-general said Ghana’s infrastructure stock to GDP was 45 per cent, while South Africa was about 70 per cent, and Egypt was close to 68 per cent.

“So imagine if we can raise the level of the infrastructure stock, we can imagine the multiplier effect and impact on Nigeria’s GDP.

“So we need to rethink how we want to grow this economy and create prosperity for the citizens.”

Okoh called on the media to help in properly framing the narrative of economic liberalisation and opening the economy for private sector participation.

According to him, “we are not just dashing assets that are considered national patrimony to people anyhow.

“We reason through each privatisation and strategy we are adopting before we go ahead to take those decisions. More goes into the assets optimisation mandate of the bureau.

“There is a lot of efficiency brought into the management of these assets as a result of privatisation, commercialisation and concessioning of those assets rather than keeping them under the inefficient management of government.”

Okoh said the best business of the government was to provide an enabling environment for businesses to thrive under the drive of the private sector. (NAN)(www.nannnews.ng)

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Edited by Idris Abdulrahman

By Lucy Ogalue

The Federal Government says Nigeria is open, safe, willing, and ready for more Foreign Direct Investments (FDIs) and partnerships to engender wealth and national growth.

Chief Executive Officer of the Nigerian Investment Promotion Commission (NIPC), Aisha Rimi, said this at a Private Dialogue with delegations from Germany and Europe organised in Abuja on Monday.

“Nigeria is open, with about 200 million people and a vibrant and hardworking youth. The government is very keen to diversify the economy.

“The government has decided to look inward in mining, agriculture, infrastructure development, and construction, among others.

“The opportunities are enormous. We have stable democracy and liberal investment laws, and although we have some sticky points, that is where NIPC comes in.

“We have convening power to bring all the agencies together to address investors’ challenges. To those already here, we assist them to ensure retention,” she said.

Also speaking, the Minister of Foreign Affairs, Amb. Yussuf Tuggar, represented by Amb. Bolaji Akinremi, said Nigeria needed investment to create enough jobs for the teeming Nigerian youths.

“Hence, the Federal Government of Nigeria is fully committed to diversifying Nigeria’s economy by encouraging investments in all sectors.

“President Bola Tinubu is passionate about this. Thus, it explains his recent meeting with some Heads of Government to ensure this feat is achieved immediately.

“Government has therefore institutionalised some policies aimed at fast-tracking FDI into Nigeria.

“I, therefore, assure you that your investments in Nigeria are safe. The country has enough market, while minerals and human resources abound in Nigeria,” he said.

The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, commended the efforts of NIPC and development partners in driving President Tinubu’s renewed hope agenda.

Uzoka-Anite, represented by the Director of Industrial Development, John Opaluwa, said Nigeria needed the collaborative hands of key experts to drive the economy.

According to her, the Nigeria Industrial Revolution Plan is the country’s roadmap to industrialisation. It aims to build industrial capacity and improve competitiveness in identified sectors.

While reiterating efforts aimed at bettering the lives of citizens, Uzoka-Anite said there was no doubt that Nigeria needed the collaborative hands of key experts to grow.

“The Federal government is steadfast in formulating and presenting policies and projects that will create an enabling environment to stimulate domestic investment.

“It is also committed to attracting FDI in all sectors of the economy and making Nigeria a preferred investment destination in Africa and the World,” she said.

For her part, Ms Victoria Akai, the Director-General of the Abuja Chamber of Commerce and Industry (ACCI), expressed delight at the presence of the investors.

“The summit represents a significant milestone in fostering international collaboration and strengthening business ties between Germany, Europe, and Nigeria.

“It provides a unique platform for exchanging ideas, exploring investment opportunities, and forging partnerships that lead to economic growth and development, which Nigeria needs.

“Your participation is a testament to the importance of fostering mutually beneficial relationships between our nations,” Akai said.

She urged the participants to actively engage in fruitful discussions and explore avenues for collaboration to pave the way for inclusive development.

Meanwhile, Michael Schmidt of the United Nations Industrial Development Organisation (UNIDO) and the Head of the German/European Union delegation said the essence of the meeting was to drive trade in Nigeria.

He said the meeting was very important because it united governments, key decision-makers, the private sector, and UNIDO partners.

“It is a long-term process to increase exports; the market is not saturated, Nigeria’s main challenge is to fulfill the local market’s need, and there is a lot of positive development,” he said.

Schmidt urged the Nigerian government to keep the country open and be infrastructure efficient so it is easy to move in and out to make the business process easier.” (NAN)(www.nannewa.ng)

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Edited by Isaac Aregbesola

By Obinna Unaeze

The Debt Management Office (DMO) on Thursday called on residents of Niger State to invest in the Federal Government of Nigeria (FGN) securities in order to secure their future financially.

Patience Oniha, Director-General, DMO, made the call on Thursday in Minna during a one day public awareness programme organised by the DMO and CSL Stockbrokers Group.

Oniha, who was represented by Ms Elizabeth Ekpeyong, Head, Strategy Programme Department, DMO, assured the investing public that there was no risk of losing their investments in FGN securities.

She said that the measure would increase the wealth of any investor and also secure it, as the financial investment was backed by the law.

“Investing in Federal Government securities and bonds will increase you financially, and it is the best way to invest your money.

“You are not going to lose anything as long as the federal government is concerned,” she said.

She said that such investment would also help the federal government raise more funds to attract more foreign investors into the country.

Oniha advised the public to invest in the government securities and bonds facilities, as they serve as lifetime financial security for the future.

Mr Abiodun Fagbulu, Managing Director, CSL Stockbrokers Limited, explained that the federal government securities were financial instruments issued by the DMO on behalf of the government.

Fagbulu, who was represented by Mrs Foluke Samuel, Lead Sales, Northern Region of CSL, assured that the facilities were safe because the federal government was serving as the insurance cover for any investor.

“FGN securities are backed by law, so when you invest, you get a steady flow of income,” he said.

He said that the facilities included the Nigeria treasury bills, FGN bonds, FGN savings bonds, the Sovereign Sukuk and FGN green bonds.

Reacting, Mr Anthony Akuh, a business man and participant, said that he had no knowledge of the securities and bonds but for the opportunity of the awareness programme.

Akuh commended the DMO and CSL for bringing the awareness programme to Minna.

“I will approach a stockbroker immediately for possible investment,” he said.

The News Agency of Nigeria (NAN) reports that the programme which was inaugurated in Lagos in March 2022, rounded up its 2023 outing in Minna.

It had also been held in Enugu, Ibadan, Kano, Yola, Umuahia, Gombe, Osogbo, Port Harcourt, Benin, Uyo, Asaba, Maiduguri, Abeokuta and Makurdi. (NAN)(www.nannews.ng)

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Edited by Abdulrahman Kadiri and Emmanuel Afonne

By Rukayat Moisemhe

The Lagos Chamber of Commerce and Industry (LCCI) has charged its 117 graduating entrepreneurs to use their technical knowledge and resilience to build strong communities and contribute to the sustainable development of Nigeria.

LCCI President, Dr Michael Olawale-Cole, gave the charge on Tuesday in Lagos at the 10th edition of LCCI Entrepreneurship Mentoring Programme (EMP) and graduation.

The News Agency of Nigeria (NAN) reports that the programme, a Corporate Social Responsibility (CSR) initiative which started in 2013 empowers Micro, Small and Medium Enterprises (MSMEs) through workshops, exhibitions, business tours and mentoring.

Olawale-Cole said the LCCI over the years had made great strides to sustain the programme as CSR and had graduated about 600 successful mentees in different sectors and were contributing immensely to the nation’s economy.

He noted that in spite of the nation’s economic challenges including tough financing conditions, high inflation, weak currency, declining household purchasing power, among others, there were still numerous opportunities for businesses and individuals to explore.

“Looking at the future, one of your key responsibilities is to not only practice your new skills, but also to be role models to other youth who may follow in your footsteps.

“To our dear graduands, I offer my heartfelt congratulations on this special day. Your hard work, determination, and perseverance have paid off, and you have earned lifelong knowledge and skills.

“As you graduate today and embark on the next phase of your journey, I encourage you to embrace new challenges and meet them with strength and courage.

“Remember that the skills and knowledge you have gained at LCCI are valuable assets that will serve you well in all areas of your life and I urge you to use the knowledge and skills you have gained to make a lasting positive impact on the people around you,” he said.

Mrs Mojisola Bakare, Vice President, LCCI, urged the graduating entrepreneurs to take advantage of the opportunities the LCCI platform had presented to do great things and contribute to the country’s economy through the MSMEs.

She charged them to continue to recreate themselves to maintain relevance and sustainability.

“You must be innovative and continually thirst for knowledge and ensure you use social media to enhance your business and lives, and also look for businesses and people you can support,” she said.

Chief Financial Officer, Providus Bank, Mr Deoye Ojuroye, restated the bank’s commitment to supporting MSMEs via its products meticulously crafted to support their growth at every stage of life.

Ojuroye, represented by Dr Abosede Yinka-Ogundimu, Divisional Head, Institutional Banking, Providus Bank, tasked MSMEs to embrace innovation in their operations to enhance business growth.

He urged the graduating entrepreneurs to leverage the invaluable knowledge gained and pursue excellence in their various entrepreneurial endeavours. (NAN)(www.nannews.ng)

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Edited by Olawunmi Ashafa

By Kadiri Abdulrahman

A Professor of Capital Market at the Nasarawa State University, Keffi, Uche Uwaleke, says the 2024 budget as proposed by President Bola Tinubu is promising.

Uwaleke, also President of the Association of Capital Market Academics of Nigeria, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

He, however, said that the distortionnary impact of the Foreign Exchange (fx) regime was a major challenge to the budget.

The News Agency of Nigeria (NAN) reports that Tinubu had on Wednesday presented the 2024 Appropriation Bill of N27.5 trillion, christened the “Budget of Renewed Hope” to a joint session of the National Assembly.

According to Uwaleke, overall, the 2024 budget proposals hold a lot of promise for the economy if well implemented.

“A major snag, however, stems from the likely distortionary impact of the new fx regime.

“A Naira float in the face of weak supply and strong demand with its attendant fx market volatility introduces uncertainty in budget implementation.

“This is why I consider the N750 to the dollar rate used for the 2024 budget as a tall order.

“It is most likely the exchange rate will be the major cause of wide variances in the 2024 budget on account of Nigerian Autonomous Foreign Exchange Market (NAFEM) operations,” he said.

Uwaleke said that a volatile and high exchange rate would increase the cost of servicing external debt and further widen the budget deficit.

“This is particularly so in respect of the dollar-denominated component of the budget, much of which can be found in the over three trillion Naira proposed defence spending as well as in recurrent debt expenditure.

“In my view, a well implemented and corrupt-free dual, not multiple, exchange rate regime helps to bring certainty in government procurements and short term planning in general,” he said.

He said that one tier of the dual rates should be official, including for debt service, and the other tier for other transactions.

According to Uwaleke, a related issue has to do with the mode of financing the over nine trillion Naira deficit and its likely impact on cost of capital for firms and the stock market.

“In previous budgets, the amount voted for new borrowings were split fairly equally between domestic and foreign sources.

“This time around domestic borrowing is taking up a huge chunk at about 78 per cent, N6.1 trillion out of N7.8 trillion, provisioned for new borrowings

“This can have the effect of crowding out the private sector, hiking interest rates, increasing cost of funds, and depressing the equities market as investors migrate to fixed income securities.

“The outcome will be a further weakening of the productive sector,” he said.

He advised the Federal Government to explore more opportunities for concessional project-tied loans from multilateral and bilateral sources.

He said that this would help to boost fx reserves and stabilise the exchange rate.

“With respect to borrowing domestically, its important that emphasis should be placed on the use of the right instruments such as infrastructure bonds as opposed to Federal Government of Nigeria (FGN) bonds that are inflationary prone,” he said. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams