By Kadiri Abdulrahman

The Debt Management Office (DMO) on Tuesday offered for subscription, Ijarah Sukuk valued at N150 billion.

According to a statement by the DMO, the Sukuk is issued by Federal Government of Nigeria (FGN) Roads Sukuk Company PLC,  on behalf of the Federal Government.

It said that the Sukuk were offered at N1,000 per unit, subject to a minimum subscription of N10,000 and in multiples of N1,000 thereafter.

“Rental payment is made half-yearly, and bullet repayment is done on the date of maturity.

“Proceeds will be used solely for the construction and rehabilitation of key road projects and bridges across the six geopolitical zones of the country,” the DMO said.

It added that the Ijarah Sukuk was backed by the full faith and credit of the Federal Government.

“It qualifies as securities in which trustees can invest under the Trustee Investment Act.

“Qualifies as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds among other investors.

“To be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange Limited, ” it said.

It added that the Ijarah Sukuk was classified as liquid asset by the Central Bank of Nigeria (CBN) and certified by the Financial Regulation Advisory Council of Experts of the CBN.

The News Agency of Nigeria (NAN) reports that the Sukuk is a Sharia-compliant instrument that represents the interests of the owner in an asset or pool of assets.

It ensures that every financial activity is backed by real economic activity, is usually linked to specific infrastructure projects.(NAN)(www.nannews.ng)

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Edited by Ifeyinwa Omowole

By Kadiri Abdulrahman

The Federation Account Allocation Committee (FAAC), has shared the sum of N1.1 trillion to the Federal Government, states and Local Government Councils (LGCs) for August.

This is contained in a communiqué issued by the FAAC at its September meeting.

The communiqué said that the N1.1 trillion total distributable revenue comprised statutory revenue of N357.398 billion, Value Added Tax (VAT) revenue of N 321.941 billion and Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion.

It also comprised Exchange Difference revenue of N229.568 billion and Augmentation of N177.092 billion.

The communiqué said total revenue of N1.48 trillion billion was available in the month of August 2023.

“Total deductions for cost of collection was N58.755 billion, total transfers and refunds was N254.046 billion and savings was N71 billion.

“Gross statutory revenue of N 891.934 billion was received for the month of August 2023. This was lower than the N1.1 trillion received in the month of July by N258.49 billion.

“The gross revenue available from VAT was N345.727 billion. This was higher than the N298.78 billion available in the month of July by N46.938 billion,’’ it said.

It said that from the N1.1 trillion total distributable revenue, the Federal Government received N431.245 billion, the state governments received N361.188 billion and the LGCs received N266.538 billion.

“A total sum of N26.473 billion, (13 per cent of mineral revenue) and N14.657 billion (13 per cent of savings from NNPCL), were shared to the relevant states as derivation revenue.

“From the N357.398 billion distributable statutory revenue, the Federal Government received N173.102 billion, the state governments received N87.800 billion and the LGCs received N67.690 billion.

:The Federal Government received N48.291 billion, the state governments received N160.971 billion and the LGCs received N112.679 billion from the N321.941 billion distributable VAT revenue,” it said.

The communiqué said the N14.102 billion EMTL was shared among the three tiers of government.

“The Federal Government received N2.115 billion, the state governments received N7.051 billion and the LGCs received N4.936 billion.

“The Federal Government received N114.445 billion from the N229.568 billion Exchange Difference revenue.

“The state governments received N58.048 billion, and the LGCs received N44.752 billion.

“The sum of N12.027 billion (13 per cent of mineral revenue) and N0.296 billion (13 per cent of savings from NNPCL) went to the relevant states as derivation revenue,’’ it said.

It said that from the N177.092 billion augmentation, the Federal Government received N93.292 billion, the state governments received N47.319 billion and the LGCs received N36.481 billion.

“In the month of August, VAT, Import and Excise Duties and EMTL increased considerably while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties recorded significant decreases.

“The balance in the Excess Crude Account (ECA) was 473.75 million dollars. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

By Olawunmi Ashafa, News Agency of Nigeria (NAN)

Since the attainment of independence 63 years ago, Nigeria has been battling with development issues, despite its natural endowment in human and material resources.

Several strategies by successive civilian and military administrations have met with limited successes.

Apparently, this position explains the recent gathering of stakeholders in Ilorin to brainstorm on the way forward to local production of the nation’s needs as against what some have described as present waste of foreign exchange on importation.

The forum was organised by one of the major stake-holding organisations in  Nigeria’s business platforms – the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

A former Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Amb. Ayoola Olukanni, was the guest lecturer at the SMEDAN retreat.

The retreat was organised for a stratum of the agency to diagnose the theme: ‘Enhancing the Institutional Capacity for Greater Impact on the Nigerian MSME Ecosystem’.

Olukanni, a diplomat with practical experiences around the world, did not mince word as he highlighted the reasons for Nigeria’s stunted growth since independence.

He noted that the topic for the discourse could not have been more relevant in the current economic landscape.

Before the discovery of crude oil in Oloibiri in the Niger Delta in the 1950s by Shell D’Arcy, after 50 years of unsuccessful exploration, the mainstay of the country’s economy was majorly agriculture showered with a few other natural resources that dotted various regions.

Apparently, due to the discovery of oil wells in the Delta area, the groundnut pyramid in Kano, coal deposit in Enugu and the natural endowments in Jos like columbite which dates back to the 1940s were sideline for the black gold.

The country has, however, continued to wallow in abject poverty despite development policy reforms in all sectors of human endeavour but which implementation have continued to draw down.

Experts recalled the woeful implementation of the Operation Feed the Nation, a strategy deployed by the Olusegun Obasanjo military regime in the 1970s to boost agriculture, while the situation was same for the Shehu Shagari administration’s Green Revolution that gulped several millions  of the nation’s hard- earned  revenue in the Second Republic.

However, few significant record of the Buhari-Idiagbon era can be remembered in terms of that regime’s economic policy and war against corruption and sharp practices, both in public and private lives of the Nigerian citizen.

The Ibrahim Babangida leadership flattened the economy with the embrace of the International Monetary Fund’s bait.

This finally brought the economy to comatose despite the oil windfall recorded during the eight-year rule, achieving very little results as a result of the high-grade corruption that characterised that regime.

However, a cursory look at the post-Babangida regime has  shown a bit of seriousness as though, the Sanni Abacha government attempted to fight corruption with the establishment of the ‘Failed Bank Tribunal’ , his economic policy was not significantly different from those of his predecessors.

Abacha had been accused of using the machinery and instrument of the State to fight his perceived  enemies by hauling them into Kirikiri Prisons and other detention camps across the country, all in the name of clearing the ‘haven of corruption’.

Despite the opportunities, the Obasanjo civilian administration initially showed a green light of seriousness on the part of a regime ready to re-jig the economy for posterity following the reliefs sought and granted by international monetary agencies, on debt forgiveness.

Again, corruption and financial indiscipline eventually eroded the debt pardon.

The Buhari civilian administration did not fare better than the Umaru Yar’Adua and Goodluck Jonathan’s, apparently due to lack of economic sense, though there is similarity to the running of public office in other African nations where the economy have been run aground like Nigeria’s.

Nigeria, like other developing nations have been faced with stunted growth and rising debt levels.

The World Bank has also counselled African governments to, without delay, focus on macro-economic stability, domestic revenue mobilisation, debt reduction, and productive investments to reduce poverty and boost shared prosperity from medium-to-long term rescue policies.

Giving credence to the position of the global bank, the African Development Bank (AfDB) headed by a Nigerian, Akinwumi Adesina, notes  that Africa presently faces  an annual Gross Domestic Product (GDP) shortfall that can  exceed 127.2 billion dollars by 2030.

According to AfDB, this is if current trends in climate finance flow into Africa continues, noting that the continent may lose as much as 12 per cent of GDP.

While statistics by the National Bureau of Statistics (NBS) shows  the importation of, at least, 10 items, including crude palm oil, vegetable products, animal products, meat, vegetable fats and oil, steel products, plastics, clothes and textiles from various countries worth N18.12 trillion between 2016 and 2022 that drains the country’s foreign reserves.

Experts, including Olukanni, were quick to advise the Bola Tinubu led-administration to evolve what they termed systemic economic recovery agenda, to bail the country out of the doldrums.

To Nigerians, it is now more than ever before that the government should evolve strategies for economic growth and development to eradicate poverty through wealth creation for increased fiscal stability.

Olukanni noted  that the issue under focus ‘’underscores the pivotal role that Micro, Small, and Medium Enterprises (MSMEs) play in fostering economic growth, creating employment opportunities, and driving innovation.

Noting that the ‘’theme also acknowledges the essential role that SMEDAN, as a leading agency, plays in promoting and supporting the growth of these enterprises’’.

Olukanni asked the participants to embrace the retreat as a catalyst for transformation agenda driven by a shared commitment to elevating the Nigerian MSME ecosystem.

‘’Let us harness the power of collaboration, innovation, and inclusive growth to shape a future where Nigerian entrepreneurs thrive, jobs are created, and economic prosperity is shared by all.

‘’As we explore pathways to enhance institutional capacity, may we remember that our efforts ripple beyond these walls, influencing the lives of countless entrepreneurs, families, and communities’’, he further charged.

While acknowledging the prime position of the sub-sector, the guest lecturer noted that with over 40 million MSMEs contribution to employment and which account for about 50 per cent of the country’s GDP, the platform equally served as the backbone of the country’s economic configuration.

He said: ‘’Their ability to adapt quickly to market changes, drive local innovation, and foster entrepreneurship makes them a critical force in shaping our nation’s economic future’’.

As direct pathways to enhanced capacity, Olukanni said it was essential to consider actionable corridors that can amplify SMEDAN’s institutional capacity for a greater impact on the Nigerian MSME ecosystem that can serve as guiding principles as the country navigate the complexities of the evolving economic landscape.

They include “Holistic Capacity Building” that will incorporate technical skills that fosters a culture of continuous learning, adaptability, and innovation.

Collaborative partnerships with government agencies, private sector players, academia, and international agencies to leverage expertise, resources and networking for knowledge exchange and cross-sectorial initiatives.

Other areas are partnerships with government agencies, the private sector and the academia while international organisations can leverage expertise, resources, and networks to create a multiplier effect to strengthen SMEDAN’s impact.

Equally, SMEDAN can explore innovative financing models, including venture capital, impact investment, and crowd-funding platforms by connecting MSMEs with funding sources tailored to their needs, the agency can address the financing gap and drive sustainable growth while women and youth empowerment should be embraced for national growth and development.

According to Olukanni, the potential of MSMEs should extend beyond national boundaries by fostering the growth of MSMEs across states and local governments, establishing MSME councils, facilitating ease of doing business, and promoting regional hubs of entrepreneurship for economic growth.

He further explained that interaction with international organisations, tapping into global best practices, and participating in cross-border initiatives could expose SMEDAN to new ideas, technologies, and opportunities that can be translated into local impact.

Asking SMEDAN to adopt robust monitoring and evaluation mechanisms to assess the outcomes of its initiatives.

According to him, by measuring progress, identifying success stories, and learning from challenges, SMEDAN can refine its strategies and optimise its interventions for the growth and development of national economy. (NANFeatures)

Edited by Folasade Adeniran

****If used, please credit the writer and News Agency of Nigeria****

By Ismail Abdulaziz

President Bola Tinubu said that the Federal Government has been taking the paths to economic greatness since his administration assumed office in May.

Tinubu stated this in an address on the occasion of the nation’s 63rd Independence Anniversary on Sunday in Abuja.

He said that the actualisation of these objectives would be pursued without fear or hatred but for the good of all Nigerians irrespective of religion, culture or class.

‘’At my inauguration, I made important promises about how I would govern this great nation. Among those promises, were pledges to reshape and modernize our economy and to secure the lives, liberty and property of the people.

‘’I said that bold reforms were necessary to place our nation on the path of prosperity and growth. On that occasion, I announced the end of the fuel subsidy.

‘’I am attuned to the hardships that have come. I have a heart that feels and eyes that see. I wish to explain to you why we must endure this trying moment.

‘’Those who sought to perpetuate the fuel subsidy and broken foreign exchange policies are people who would build their family mansion in the middle of a swamp.

‘’I am different. I am not a man to erect our national home on a foundation of mud. To endure, our home must be constructed on safe and pleasant ground.’’

He said that the support and patience of all Nigerians was paramount in the success of the economic reforms that would lead to the reality of Nigeria of our dream.

He said that the Augean stable at the Central Bank of Nigeria was being cleaned while tax reform and other fiscal policies are being designed to attract Foreign Direct Investment.

‘’I pledged a thorough housecleaning of the den of malfeasance the CBN had become. That housecleaning is well underway. A new leadership for the Central Bank has been constituted.

‘’Also, my special investigator will soon present his findings on past lapses and how to prevent similar reoccurrences.

‘’Henceforth, monetary policy shall be for the benefit of all and not the exclusive province of the powerful and wealthy.

‘’I have inaugurated a Committee on Tax Reforms to improve the efficiency of tax administration in the country and address fiscal policies that are unfair or hinder the business environment and slow our growth.

‘’To boost employment and urban incomes, we are providing investment funding for enterprises with great potential. Similarly, we are increasing investment in micro, small and medium-sized enterprises.

‘’Commencing this month, the social safety net is being extended through the expansion of cash transfer programmes to an additional 15 million vulnerable households,’’ he said.

Tinubu said that all citizens are welcomed to join hands toward a better country, adding that ‘’we can do it. We must do it. We shall do it’’. (NAN)(www.nannews.ng)

Edited by Sadiya Hamza

By Rukayat Moisemhe

The Enugu State Government said it will be collaborating with the Indonesian Government to foster mutual prosperity, capital flows and diversification of Indonesian industries into the state.

Prof. Chidiebere Onyia, Secretary to the State Government (SSG), made this known on Friday at the Nigeria Indonesia Trade and Investment (NIITF) news conference in Lagos.

The News Agency of Nigeria (NAN), reports that the conference has the theme “Rediscovering Business Potential in Nigeria”.

Onyia said that the move would also spur trade activities between both countries, as well as help them to explore the myriad of investment opportunities in the state across key sectors such as energy, power and transport.

He noted that Enugu State, in Nigeria’s historical context, played a pivotal role in catalysing economic growth by serving the energy needs of the nation and beyond.

He added that its abundant mineral resources, fertile lands with rich plantations supporting production of the best cashew, sorghum, rice, cassava, and other agricultural species placed the state as a vantage investment destination.

The SSG noted that the state’s breath-taking natural landscapes presented viable investment opportunities in eco-tourism, while its predominantly youthful population provided a wealth of human capital.

“Enugu is blessed with untapped natural gas reserves and our vast natural gas reserves have imposed a responsibility on the state to drive the Nigerian green economy transition.

“I am happy to announce that Enugu is one of the first states to attract investment in CNG-powered buses and the state has the potential to be a leader in the clean industries of tomorrow.

“Enugu State is a vital trade and investment gateway into the southeast region as it boasts of a multi-modal transport infrastructure to support trade activities between the South-Eastern region, Northern Nigeria, as well as the rest of Africa,” he said.

Onyia also said that the state’s economic transformation plan underscored a three-pronged strategy of boosting sector productivity, reforming key state institutions, and creating cross-cutting social sector programmes and services.

He revealed that the state’s vision under the Peter Mbah led administration was to make Enugu one of the top three revenue-generating states and to attain a zero per cent poverty headcount rate.

He added that the administration was committed to ensuring peace and security to grow the state’s economy exponentially from a 4.4 billion dollars Gross Domestic Product (GDP) to a 30 billion dollars GDP economy in the next 8 years.

“Our mission is to make Enugu the preferred destination for investment, business, tourism and living in Nigeria.

“Enugu State will become Nigeria’s most remarkable success story driven by industrialisation and structural economic transformation, responsible public financial management, robust growth in trade and investment, and sustainable and inclusive infrastructural development,” he said.

The SSG pledged that the newly signed state electricity act by Gov Peter Mbah would be beneficial to Micro, Small and Medium Enterprises (MSME), and further foster business competitiveness and expand the ecosystem across the state.

He added that bottlenecks inimical to investments growth and profitability within the state were being addressed to further de-risk the investment climate in the state.

Similarly, the Enugu State Commissioner for Trade, Investment and Industry, Mrs Adaora Chukwu, said that the state’s partnership with Indonesian government was based on the state governor’s initiative to move the state from 4.4 billion dollars to 30 billion dollars economy.

Chukwu explained that part of the ways to achieve the mandate was through strategic partnerships and collaboration with various international and local investors to harness the various investment opportunities in the state.

She said that the investment forum would help to open up newer opportunities for investors, business, trade, and export arrangement between both countries’ economies.

“The government has adopted a model which is the Integrated Sector Growth Strategy (ISGS) which implies that no sector is prioritised above another, with synergy and connections of every sector to the other.

“Efforts have been made to strengthen regulatory and legal framework to ensure the elimination of bottle necks to allow investors to come in.

“Nigeria hopefully will gain and attract investment, industries and capital in the partnership and for the Indonesian Government, it will be a mutual prosperity effort, with Enugu State giving expertise in some areas,” she said.

Mr Ishmael Balogun, President, Nigeria Indonesian Chamber of Commerce and Industry (NICCI), noted that investments between both countries have shored up to 4.6 billion dollars in 2022 from 2.6 billion in 2021.

Balogun noted that the potential to do more existed, hence the theme for the event in Indonesia.

According to him, the governor will be delivering the keynote address this year in line with his promise to raise the GDP of his state.

“We have a very robust line up of participants both from the public and private sectors from Nigeria and Indonesia.

“Areas of focus include but not limited to manufacturing, renewable energy, power generation, infrastructure development, health, agriculture, transportation, mining, digital economy and much more.

“This will be followed by a government to government, government to business and business to business round table discussions to further foster sustainable collaborations and fruitful partnerships.

“Finally, several Memorandum of Understanding (MOU) will be signed by the participants from Nigeria’s Public and Private sector participants and both nations can continue to grow in leaps and bounds,” he said. (NAN) (www.nannews.ng)

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Edited by Deborah Coker/Olawunmi Ashafa

By Ikenna Uwadileke

The Federal Government says it is putting in place a N75 billion intervention fund to support small businesses in response to the country’s current economic challenges.

The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, said this at the beginning of the 18th Abuja International Trade Fair (AITF) in Abuja.

The News Agency of Nigeria (NAN) reports that the trade fair is with the theme “Sustainable Financing and Taxation”.

Uzoka-Anite, represented by the Director of Commodity and Export in the ministry, Mr Kaura Irimiya, said the fund, which would be disbursed in March 2024 was to strengthen the manufacturing sector.

The minister said that the Federal Government would also provide small grants to micro businesses in each of the 774 Local Government Areas in the country.

According to her, the government has announced a plan to support small businesses and startups in Nigeria in response to the country’s current economic challenges.

“We intend to spend N75 billion by March 2024 to strengthen the manufacturing sector.

“We also intend to provide small grants to micro businesses in each to the 774 local governments of the federation.

“We have also earmarked a fund of N75 billion that will be used to support up to 100,000 start-ups and MSMEs at single digital interest rates repayable over 36 months.

“Last week, we launched the National Technology Export (NATEP) programme, in partnership with Microsoft.

“And earlier this year we launched the over $600 million Investment in Digital and Creative Enterprises (iDICE) program, in partnership with African Development Bank and other partners,’’ she said.

The minister emphasised that empowering MSMEs was key to empowering youths and women and enabling them to contribute to the nation’s economic development.

According to her, the growth of MSMEs has a positive impact on the economy as it enables individuals to support their families and add value.

In his message, the Minister of the Federal Capital Territory (FCT), Nyesom Wike expressed the administration’s readiness to collaborate with the private sector to reposition economic and business activities in the city.

Represented by the Mandate Secretary, Economic Planning in FCT, Mr Chinedu Elechi, Wike solicited the cooperation of the private sector, especially in the area of taxation toward boosting the FCT internally generated revenue.

Speaking earlier on the theme of the fair, the President of ACCI, Dr Al-Mujtaba Abubakar, said: “ AITF had served as a trusted global trade destination attracting over 500,000 consumers.’’

He said that the trade fair provided a platform for business relationships, trade opportunities and ideas.

“As a leading chamber of commerce and industry, we continuously strive to improve the quality of our trade events and this year we have added side attractions such as rewards, free jollof rice tasting and a fashion runway to enhance the fair’s appeal,” Abubakar said.

According to him, the trade fair is part of ACCI’s initiative to connect businesses and create a platform for policymakers to interact with the business community, recognising the vital role of small businesses in the national economy.

“We encourage everyone to participate in the 12-day event, engage in business networking and attend special days organised by government Agencies, Ministries and Parastatals, States, private sector and countries,” Abubakar added.. (NAN) 

Edited by Gregg Mmaduakolam/Bashir Rabe Mani

By Yetunde Fatungase

An expert in Economics, Dr Obindah Geshon, on Thursday in Abeokuta urged the Federal Government to look into extending the country’s rail network towards the border regions.

Geshon, in his lecture at the 38th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), said this would help the country’s economy.

”This will help to tackle some of the challenges bedeviling the manufacturing sector,” the Associate Professor of Energy and Sustainability Economics at the Department of Economics and Development Studies, Covenant University in Ota, said.

The News Agency of Nigeria (NAN) reports that the AGM has as its theme “Re-engineering Economic Pathways for the Growth and Advancement of the Real Sector- Current Realities and Future Prospects”.

Geshon pointed out that if rail transportation was extended to the border areas, the pressure of increase in price of petrol and diesel would not affect cost of manufactured goods.

He also urged government to support manufacturers with cheap credits, just as it should create an enabling environment which would “boost their confidence in an uncertain economy”.

“Government needs to look at transportation, particularly rail transportation, which should be extended to all states and the border countries around.

“If the rail transportation is in place, all of the pressure of increased price of PMS and diesel will not affect the cost of manufactured goods.

“Government also needs to address logistics at the ports  —- the pricing and the time frame,” the Associate Professor said.

Geshon however, tasked manufacturers on the need to source inputs locally, saying this is a sure pathway to growth.

He noted that the fluctuation of the foreign exchange is adversely affecting the value of the Naira.

”In view of this, there is no sense in sourcing raw materials in dollars to produce goods that would be sold in Naira.”

Geshon also urged them to invest in renewable energy, and not individually but collectively as a body.

In his submission, Gov. Dapo Abiodun of Ogun noted that energy which has continued to be the driving force of the manufacturing sector has been unavailable as it should be.

“Successive administrations have not been able to proffer lasting solutions to the challenges of energy availability,” he said.

Abiodun, who represented by the Secretary to the State Government (SSG), Mr Tokunbo Talabi, lamented that a sizeable number of manufacturing firms have folded up.

He said this was due to irregular power supply and high cost of petroleum products, resulting in a rising unemployment rate in the country.

“It was with that determination to change the narrative and redirect our economy for greater performance in the real sector that the present administration summoned the courage to address the age-long conundrum in the upstream sector of our oil industry.

”This is through the deregulation policy that has led to the removal of subsidy,” the governor said.

Earlier in his address, the Chairman of Ogun chapter of MAN, Mr George Onafowokan, said manufacturers were groaning under the weight of diverse taxes by federal, state and local government agencies.

“These are bodies who regulate the same manufacturing process, using same checklists.

“This often resulted in multiple charges and increase production costs for the manufacturers.”

He then pleaded with the regulatory agencies, especially in Ogun, to harmonise their lists of requirements and visits to manufacturing outfits.

Onafowokan said this would help reduce the financial burden imposed on them by such visits.

“It is our plea that regulatory agencies, especially within Ogun, will harmonise their lists of requirements to reduce the financial burden on manufacturers.

“The tax net should also be expanded to bring in more revenue for the government, rather than putting undue pressure on manufacturers in the state,” he said.

The Ogun MAN Chairman expressed hope that the recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms would lead to ending multiple and illegal taxation of manufacturers.

NAN reports that the committee was set up to review and harmonise major tax laws and revenue collection processes.(NAN)

Edited by Olawale Alabi