September 13, 2024

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Economy/Business

TCN has capacity to transmit 6,000MW of electricity – MD

By Constance Athekame

The Transmission Company of Nigeria (TCN), says it has capacity to transmit 6,000 MWS of electricity to distribution load centres nationwide.

Mr Sule Abdulaziz, the Managing Director of TCN said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.

Abdulaziz said that in the last three years, TCN had upgraded several sub-stations.

He said that the company  had also built new sub-stations funded through its Internally Generated Revenue (IGR) and donor agencies.

The TCN boss said that the company had installed new transformers to ensure an increase in capacity.

“TCN has a comprehensive list of proposed projects, which are in batches, taking into cognisance those that require little investment to benefit the grid in the first batch for quick additional capacity.”

He said that the grid capacity was confirmed through an acceptable scientific method of capacity determination.

“The last grid simulation test carried out  revealed that it has a capacity of 8100 MWS. In March 2021,  TCN successfully wheeled 5,801 MWS from generating companies to distribution load centres nationwide.

“From then to date, we have continued to add more transformers, conduct transmission lines and build new transmission substations among others.

“All these we know have continued to further strengthen our grid capacity. So, yes, we can comfortably transmit 6,000 MWS and more before the end of this year,” he said.

He said TCN was a key stakeholder of the Nigerian Presidential Power Initiative (PPI) as undertaken by the Federal Government of Nigeria Power Company (FGNPC).

“This initiative aims to resolve existing challenges in the nation’s power sector and further expand the capacity of the transmission and distribution networks to achieve an operational capacity of 25,000 megawatts (MW).

“Through a series of projects spanning three phases, projects under this PPI initiative are currently ongoing and it is also adding to the capacity of the grid,” he said. (NAN)

Edited by Shuaib Sadiq/Ese E. Eniola Williams

Economy/Business

TCN to purchase spinning reserve for grid maintenance – MD

By Constance Athekame

The Transmission Company of Nigeria (TCN), says it plans to procure a spinning reserve to maintain the national grid frequency within specified limits.

The Managing Director of TCN, Mr Sule Abdulaziz said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Sunday.

He said that the spinning reserve would maintain the grid even after a system fault or disturbance.

NAN reports that a spinning reserve is the amount of unused capacity in online energy assets which can compensate for power shortages or frequency drops within a given period of time.

Abdulaziz said that the spinning reserve, however, required collaboration with critical stakeholders in the power value chain.

“We are equally working at installing Flexible Alternating Current Transmission System (FACTS) devices at critical nodes on the grid in order to maintain the grid voltage within the specified limits.

“Some nodes on the grid are susceptible to either high or low voltage problems. FACTS devices help to resolve these voltage problems which in turn will help to strengthen the Grid.

”The reliability of the grid is improved when there is redundancy, ” he said.

The managing director said that the company had proposed several projects in order to close the remaining loops on the network which were still radial, creating redundancy.

“These projects include the proposed second Jos-Gombe line, Makurdi- Jalingo and Yola-Maiduguri 330 Kilo Volt (kV) lines which will close the open loop in the Northeast.

“These redundancies will help to further strengthen the grid and help forestall its instability, improving reliability and stability, which will in turn make the grid more robust and less susceptible to faults that can lead to collapse,” he said..

Abdulaziz said that TCN was also implementing a robust maintenance schedule to regularly inspect and repair ageing infrastructure.

He said that the robust maintenance aimed to prevent sudden failure that may lead to grid collapse.

The TCN boss said that the company had continued to carry out regular upgrade of its  equipment to prevent technical failure that would reduce downtime; using advanced monitoring and control systems to detect and respond to issues promptly.

“We deployed the Generation Dip/Loss Detection System (GLDS) and the Internet of Things (IoT) which are significant steps in bolstering Grid stability and reliability.

“The GLDS plays a pivotal role in detecting, and responding to sudden drops or dips in power generation across the network.

“This is designed to empower the National Control Centre (NCC) in Osogbo, as it provides Grid controllers in NCC with advanced tools for real-time monitoring and analysis of grid performance, ’’ he said.

The managing director also said that TCN’s engineers had equally deployed an in-house designed Internet of Things (IoT) technology, in response to the challenge of limited visibility of power generators.h

“The IoT devices had been strategically deployed across power stations and some sub-stations to facilitate the collection of near real-time data including power generation levels and grid performance metrics.

“The IoT has enabled the expansion of visibility of power generating stations from 6 to 27, this has helped TCN significantly improve its ability to monitor grid load and identify potential issues before they escalate.

“TCN is equally using the Free Governor Mode of Operation (FGMO), which automatically adjusts generation in response to frequency changes, ensuring stability, reliability, and reduced transmission losses.

“Even though this has its challenges in terms of full compliance by the generating stations, it has also contributed to further strengthen the Grid,‘’ he said.

Abdulaziz said that the company’s research and development department   was championing studies for the development of energy storage systems, which could provide backup power during peak demand periods.

He said: “The Federal Government, through the Ministry of Power, is also working hard to ensure incorporation of renewable energy sources such as Solar and Wind which would reduce the strain on the grid.

The move, he said would decentralised  energy production through Mini-grids and Off-grid solutions, (NAN)

Edited by Shuaib Sadiq/Ese E. Eniola Williams

Economy/Business

Exploitative pricing: FCCPC gives 1-month moratorium to traders to crash prices

Pricing

By Ginika Okoye

The Federal Competition and Consumer Protection Commission (FCCPC), has given a one month moratorium to traders and other market stakeholders involved in exploitative pricing to crash the prices of goods.

The newly appointed Executive Vice Chairman of the FCCPC, Mr Tunji Bello, said this at a one-day stakeholders engagement on exploitative pricing in Abuja.

According to Bello, the Commission will begin enforcement after the moratorium.

He said that the meeting was to address the growing trend of unreasonable pricing of consumer goods and services and the unwholesome practice of market associations.

Bello gave a description of the Commission’s finding that a fruit blender known as Ninja was being sold at a popular supermarket in Texas for 89 dollars (N140,000.00) but the same product was displayed for N944,999.00 in a supermarket in Victoria Island, Lagos.

Bello wondered the basis for the arbitrary hike in the price of the blender compared to the Texas, United States of America.

He said the unwholesome practices including price fixing was threatening the stability of the economy.

”Under Section 155, violators, whether individuals or corporate entities, face severe penalties including substantial fines and imprisonment if found guilty by the court..

”This is intended to deter all parties involved in such illicit activities.

”However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation.

”It is in this spirit that we are giving a moratorium of one month (September) before the Commission will start firm enforcement, ” he said.

Bello said the government was aware of most of the problems raised by the market stakeholders.

”We have heard and you have genuine issues and the government has the responsibility to address the problems but generally, let us talk to ourselves too.

”There are also gang ups to exploit consumers by traders,” he said.

Some of the market stakeholders who spoke at the engagement said that high cost of transportation, insecurity, multiple taxation among others were reasons for the continuous increase in prices of goods and services.

Mr Ifeanyi Okonkwo, the Chairman, National Association of Nigerian Traders, FCT Chapter, said that charges on imported goods at the Ports also contributed to the hike in prices.

Okonkwo appealed to the Commission to set up a taskforce and involve the association in its enforcement.

Mr Emmanuel Odugwu from Kugbo Spare Parts market, said the initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000 but now, it costs over one million naira to transport the same.

Ms Kemi Ashiri, the Liaison Manager, Flour Mills, said that fines by regulators needed to be harmonised for businesses to thrive.

Ikenna Ubaka, who spoke on behalf of supermarket owners, alleged that banks’ interest rates to them were over 30 per cent, rent increment and hike in prices by distribution/ supply chains were reasons for the high cost of goods.

Ubaka also alleged that electricity distribution companies were charging supermarkets exorbitantly.

Mr Solomon Ukeme, who represented the Master Bakers Association, said that rapid increment of major ingredients like flour, sugar and butter contributed to the high cost of confectioneries.

He said that a bag of flour formerly sold for N34,000 was now being sold for N74,000.

He said that multiple taxation was also the major cause of the high cost of bread.

The News Agency of Nigeria (NAN) reports that various market associations also attended the engagement. (NAN)

Edited by Ese E. Eniola Williams

Economy/Business

Nigeria’s non-oil records 6.26% growth, hits $2.7 bn – NEPC

By Lucy Ogalue

The Nigerian Export Promotion Council (NEPC) says Nigeria’s non-oil export sector recorded impressive growth in the first half of 2024, generating 2.7 billion dollars in revenue.

The Executive Director of NEPC, Nonye Ayeni, said this while presenting a progress report on Nigeria’s non-oil export performance on Wednesday in Abuja.

Ayeni said that the figure showed a 6.26 per cent increase when compared to the 2.539 billion dollars earned in the same period in 2023.

According to her, the significant uptick in export revenue highlights the country’s ongoing efforts to diversify its economy away from oil dependence.

Ayeni attributed the growth to several key factors like the successful transition of government in May 2023, and the policy strides under President Bola Tinubu’s Renewed Hope Agenda.

She also credited the NEPC’s “Operation Double Your Exports” initiative, which focused on partnerships, advocacy, capacity building, and export intervention programmes.

“In just six months, we have seen tangible results from our concerted efforts to expand Nigeria’s non-oil export base.

“The increase in both the volume and value of exported products is a testament to the effectiveness of these policies and initiatives,” she said.

On product diversification and market reach, the NEPC boss revealed that a total of 211 different products were exported from Nigeria during this period.

She said that this showed a shift from traditional agricultural commodities to more semi-processed and manufactured goods.

According to her, leading the charge was cocoa beans, which constituted 23.18 per cent of the total non-oil exports, followed by urea/fertiliser and sesame seeds at 13.78 and 11.04 per cent.

She said that there was growing prominence of newer export products such as fresh vegetables, citrus peel, and sorghum, which are gaining traction in the global market.

“These emerging products, though still developing in market share, reflect the diversification and broadening of Nigeria’s export portfolio,” she said.

On top exporting companies and financial institutions, the NEPC boss said  that  among the top 20 exporting companies, Indorama-Eleme Fertiliser and Chemical Limited led with 198.8 million dollars in exports.

She said that Starlink Global and Ideal Limited followed closely with 184.7 million dollars, while Outspan Nigeria Limited exported 177.75 million dollars worth of cocoa.

“Other notable contributors included Dangote Fertiliser Limited and Metal Recycling Industries Limited.

“In terms of financial support, Zenith Bank Plc dominated the non-oil export transactions, handling 43.09 per cent of the total Non-Oil Export Proceeds (NXPs).

“It was followed by First Bank Nigeria Plc and Fidelity Bank, which accounted for 6.56 per cent and 6.38 cent,” she said.

She urged more financial institutions to leverage the opportunities in the non-oil export sector, particularly in light of the African Continental Free Trade Area (AfCFTA).

According to her, this is to enhance exporters’ capacity and access to international markets.

She said that Nigeria’s non-oil products were being exported to 122 countries across Africa, the Americas, Asia, Europe, and Oceania.

“The top three importing countries are the Netherlands, Malaysia, and Brazil.

“Interestingly, Ghana is the only African country to make it into the top 15 global importers of Nigerian products, occupying the 14th position.

“Within the African continent, 14 ECOWAS member countries imported Nigerian products worth 156.117 million dollars, amounting to 5.79 per cent of the total export value.

“The majority of these exports, 95.08 per cent, were routed through Nigeria’s seaports, with the remainder distributed via international airports and land borders,” she said.

She expressed the council’s commitment to working with critical stakeholders to stimulate export growth.

“I am optimistic that with the several export intervention programmes and projects, we have started and are ongoing.

“The sector is positioned to contribute immensely to the country’s Gross Domestic Product (GDP), increase the country’s foreign exchange earnings and, thereby, ensure sustainable economic growth,” she  said.(NAN)

Edited by Kadiri Abdulrahman

Economy/Business

GDP growth: Tinubu assures stronger economic performance

 

 

By Salif Atojoko

President Bola Tinubu has welcomed the latest report of the National Bureau of Statistics (NBS) on the state of the economy.

The report had indicated that the country’s Gross National Product (GDP) posted another growth.

According to NBS, the real GDP grew by 3.2 per cent year on year in Q2, higher than the 2.51 per cent recorded in the same period of 2023.

A statement by Mr Bayo Onanuga, Special Adviser to the President on Information and Strategy, said the latest report affirmed that the economy was on the right trajectory and, indeed, on the path to recovery.

“As the President said in his Aug. 4 national broadcast, our economy is recovering. Sooner than later, Nigerians will begin to feel, see, and enjoy the impact of his administration’s economic re-engineering efforts.

“We want to reiterate that this government will continue to work assiduously to rekindle Nigerians’ hope and confidence. President Tinubu is working to build a solid and resilient economy.

“President Tinubu wants Nigerians to retain their faith in the government and not allow themselves to be swayed by naysayers intent on aborting and undermining the current reforms for their selfish ends,” said Onanuga.

According to the NBS report, the growth rate in Q2 is higher than the 2.5 per cent recorded in Q2 2023 and higher than the 2.98 per cent growth in Q1 2024.

The GDP’s performance in the second quarter of 2024 was driven by the service sector, which recorded a growth of 3.79 per cent and contributed 58.76 per cent to the aggregate output.

The agriculture sector grew by 1.41 per cent in contrast to the 1.50 per cent recorded in the second quarter of 2023.

The industrial sector’s growth was 3.53 per cent, up from the -1.94 per cent recorded in the second quarter of 2023.

The NBS also reported that crude production grew to 1.41 million barrels per day, compared with 1.22 million barrels a year earlier.

In terms of share of the GDP, the industry and services sectors contributed more to the aggregate GDP in the second quarter of 2024 compared to the corresponding quarter of 2023.

“We are confident that with the policies we have put in place, we expect oil production to rise to about two million barrels very soon.

“In the quarter under review, aggregate GDP at basic price stood at N60,930,000.58 in nominal terms.

“This performance is higher than the second quarter of 2023, which recorded an aggregate GDP of N52,103,927.13 million, indicating a 16.94 per cent year-on-year nominal growth,” Onanuga said. (NAN)

Edited by Ephraim Sheyin

Economy/Business

NSC, AfCFTA partner to boost intra-African trade

By Gabriel Agbeja

The Nigerian Shippers’ Council (NSC) has announced plans to partner with the African Continental Free Trade Area (AfCFTA) to enhance intra-African trade.

Mr Pius Akutah, NSC Chief Executive Officer, made this known during a courtesy visit to the National AfCFTA Coordinator, Mr Olusegun Awolowo, in Abuja.

The two institutions aim to improve maritime connectivity via the Sea Link Project, a strategic initiative to boost intra-African trade.

“The council is also collaborating with the Nigerian Export-Import Bank (NEXIM) to develop a sea link between members of the Joint Development Zone (JDZ), comprising Nigeria, Equatorial Guinea, and Sao Tome and Principe.

“The Sea Link Project will establish a maritime shipping line providing cabotage, passenger services, and goods haulage among JDZ countries.

“The project, which follows a successful comprehensive technical and economic feasibility study, aims to reduce cargo movement costs and increase maritime and trade activities among JDZ countries.

“Upon completion, the project will ensure duty payment only on goods delivered to ports of final destination.

“It will improve maritime services frequency between Nigeria and Sao Tome & Principe, enhancing commerce in the Gulf of Guinea,”he said.

According to him, the project will also improve private sector initiatives by providing efficient sea transport services, giving exporters and importers a competitive edge.

He also said it would eliminate the need for cargo trans-shipment in Europe for intra-African trade, increasing trade volume and transportation efficiency in the sub-region to boost economic growth and development for Nigeria.

Earlier, AfCFTA National Coordinator, Mr Olusegun Awolowo, expressed willingness to collaborate with NSC on the sea link project due to its importance and benefits for the region.

He proposed exploring opportunities for collaboration in services trade to enhance Nigeria’s export capabilities.

Awolowo suggested establishing an AfCFTA desk at major ports to serve as a resource centre for traders, providing guidance on AfCFTA protocols, documentation, and compliance requirements.

He also proposed intensifying port sensitisation and awareness campaigns on AfCFTA.

Awolowo expressed optimism about future collaboration to achieve the shared goal of maximising AfCFTA’s benefits for Nigeria.

He acknowledged the creation of a dedicated expert line aimed at enhancing trade facilitation and canvassed for continued efforts to further streamline port operations to reduce bottlenecks hindering trade efficiency.

Awolowo thanked the NSC for their invaluable support during the inauguration of the Guide Trade Initiative (GTI) under AfCFTA, describing their effort as instrumental to the event’s success. (NAN)(www.nannews.ng)

==========

Edited by Abiemwense Moru

Economy/Business

Experts seek stakeholders commitments to energy security

By Rukayat Moisemhe
Stakeholders in the energy sector have called for more commitment from government and players across the energy value chain to drive energy security.

They gave the advice at the 2024 Nigerian-British Chamber of Commerce (NBCC) energy group event on Thursday in Lagos.

The News Agency of Nigeria (NAN) reports that the theme of the event is “Securing Nigeria’s Energy Future: The Way Forward”.

They said that this would help to reshape the industrial sector and create a vibrant energy future for the country.

Mrs Olu Verheijen, Special Adviser, Energy, to President Bola Tinubu, reiterated the need to find solutions to the country’s energy insecurity, particularly with Nigeria as a top 10 gas reserve holder.

She said that in evaluating the country’s performance over a decade, 76 per cent of Nigeria’s gas reserve was undeveloped.

She noted that the Tinubu administration had taken steps via the presidential directives to make the country’s energy environment more attractive for investments.

According to her, government is ready to improve regulatory certainty to make Nigeria a top three destination for investments in oil and gas.

“There have been presidential directives to clarify the role of regulators to attract investment in upstream and midstream sectors and to focus on fiscal incentives to drive energy transition to gas among others.

“We have issued fiscal incentives and have attracted over $500 million and have started paying our gas debts.

“The President also launched an initiative to bridge the metering gap, we have grown our grid capacity by having a commercial viable value chain and designed targeted subsidies to protect the poor.

“In seeking energy abundance for Nigerians, we are committed to working with stakeholders to deliver prosperity to Nigerians,” she said.

Mr Ray Atelly, President, NBCC, noted that in a world where energy shaped the very foundation of societies, a focus on energy had taken the centre stage like never before.

Atelly stated that the event’s theme resonated deeply with the current need of Nigeria given that the country’s energy sector was characterised by a substantial gap between demand and supply.

According to him, the global shift toward sustainability underscores the urgency for Nigeria to diversify its energy sources, particularly toward renewables like solar, wind, and hydropower.

“As we confront environmental challenges and endeavour to meet the energy needs of a growing population, this transition opens up a world of possibilities.

“Our discussions throughout the day will delve into maximising oil and gas resources, renewable energy adoption strategy, energy access – affordability and availability, and stakeholder role and engagement,” he said.

Mr Nnamdi Anowi, General Manager, Production, Nigerian LNG (NLNG), said it was essential for Nigeria to align strategies with both current realities and future aspirations in a rapidly evolving global energy landscape.

Anowi noted that the country’s journey toward energy security was faced with numerous challenges ranging from infrastructure constraints to the need for technological innovation and regulatory support.

He stated that these challenges also presented opportunities to forge stronger collaborations, adopt groundbreaking solutions, and champion policies that would fortify the energy sector.

“At Nigeria LNG Ltd., we recognise that energy is not just a commodity but a critical driver of economic growth and national development.

“We must design the future of energy for Nigeria, ensuring that it is secure, accessible, and modern in a world that is transitioning to cleaner energy.

“We must embark on this journey to grow our energy for the future sustainably and responsibly, while at the same time maintaining energy security.

“We cannot achieve this desire without requisite commitments from the government through policy and legislation to guide the framework and guarantee investments.

“Government at all levels must play their part toward securing energy for our future,” he said.

Mr Raph Gbobo, Managing Director, Shell Nigeria Gas, noted that in energy transition, gas was the fastest growing fossil fuel with a very broad industrial application.

Gbobo said measures to drive energy security in the immediate term included enforcing discipline and transparency in the gas transportation network operation and implementing gas balancing.

He stressed the need to enforce contractual terms across the gas value chain, implement network code, and eliminate gas to power debts.

He said in the medium term, the energy sector must transition to cost reflective pricing, install and maintain the right meters, upgrade of existing transportation infrastructure, promote willing-buyer/willing-seller marketplace.

“It is critical to complete ongoing gas pipelines and network interconnectivity and set globally competitive fiscals for gas.

“In the long term, the Federal Government should support investment in gas infrastructure and offer fiscal incentives to incentivise distribution infrastructure investments,” he said. (NAN)

Edited by Dorcas Jonah/Chinyere Joel-Nwokeoma

Economy/Business

FG issues first $500m local bond, says economy improving

By Kadiri Abdulrahman

The Federal Government, through the Debt Management Office, on Wednesday announced plans to issue N500 million dollars local bonds to boost dollar liquidity.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said this on Thursday in Lagos at an investor meeting for the bond issuance.

Edun assured Nigerians that the economy was on the trajectory of growth, adding that dollar funding was critical for the exchange rate to stabilise .

According to him, in terms of investments and stabilising the economy, it is important to have adequate foreign exchange.

He said that though there had been improvements in the flow of foreign exchange into the economy, the dollar denominated bond would further boost FX liquidity.

He said that this transaction was aimed at improving the external reserves and supporting the exchange rates, which were critical elements of stabilising the economy and preparing it for investment and growth.

“The flow of dollars has improved into the economy from portfolio investors, from foreign direct investment and from multilateral mobilisations, which have bought into the government’s macroeconomic reforms.

“This transaction plays an important role in this process because we have a domestic issuance of dollar bonds aimed at further improving the inflow of dollars.

“The more the foreign exchange, the higher the foreign reserves, the stronger would be the exchange rate. That gives a chance for inflation to come down.

“The lower the inflation, the lower the exchange rate,” he said.

Edun said that the economic reforms started by President Bola Tinubu were already yielding fruits.

According to him, the economy is showing signs of recovery. Output is growing, the exchange rate is stabilising.

“Government revenues and government expenditures are totally revamped, rejigged and technology has been put in place to ensure that what belongs to the government is collected diligently.

“There are efforts to ensure that government expenditure is carried out in a way that engenders public trust, visibility, transparency and accountability,” he said.

He also said that the all important trade balances were now positive and growing.

Mr Gbadebo Adenrele, the Managing Director – Investment Banking, United Capital Plc, the lead advisors for the transaction, said that the target for the transaction was 500 million dollars.

According to Adenrele, the transaction will be for a period of five years.

He said that the proceeds would be for key sector investments to be determined by the government.

“This is the first issuance that would be done in dollars. Coupon payment is semi-annually while the bullet repayment would be after five years.

“The proceeds will be invested in some key economic sectors to be approved by the president, subject to appropriation by the National Assembly.

“The minimum subscription is 10,000 dollars, with subsequent subscriptions of 1,000 dollars thereafter.

“It is backed by the full faith and credit of the Federal Government of Nigeria,” he said.

He said that the offer was open to Nigerians who resided within and outside the country, as well as institutional investors.

The Director-General of DMO,  Patience Oniha.

The Director-General of DMO, Patience Oniha, said that the offer of dollar denominated local bonds would make history for the financial market and for Nigeria as a whole.

Oniha said: “Over the years, we have seen the domestic financial market transform.

“This is due to the efforts of several stakeholders in collaboration with the Federal Government.”

She encouraged Nigerians to take advantage of the opportunity and invest in the dollar denominated FGN bond, adding that it was safe and secure. (NAN)

Edited by Ese E. Eniola Williams

Comptroller General of Customs (CGC), Comptroller Adewale Adeniyi,
Economy/Business

Tariff Removal: FG sets duty rate guidelines for staple foods

 

By Martha Agas

The Federal Government has unveiled guidelines for the implementation of the “Zero Per cent Duty Rate and Value Added Tax” exemption on certain basic food items.

The announcement is contained in a statement issued by the Spokesperson of the Nigeria Customs Service (NCS), Abdullahi Maiwada, in Abuja.

Maiwada said that President Bola Tinubu approved the guidelines through Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.

The News Agency of Nigeria (NAN) reports that on July 8, the Minister of Agriculture and Food Security, Abubakar Kyari, announced the suspension of duties, tariffs, and taxes on certain imported food items.

The food items included maize, husked brown rice, wheat, and cowpeas.

According to Maiwada, the policy is effective from July 15, and will remain in place until Dec. 31.

He listed the guidelines, which include that only companies incorporated in Nigeria and operational for at least five years were eligible to participate in the zero-duty importation of the staples.

“The company must have filed annual returns and financial statements and paid taxes and statutory payroll obligations for the past five years.

“Companies importing husked brown rice, grain sorghum, or millet need to own a milling plant with capacity of at least 100 tonnes per day, operated for at least four years, and have enough farmland for cultivation.

“Those importing maize, wheat, or beans must be agricultural companies with sufficient farmland or feed mills/agro-processing companies with an out-grower network for cultivation,” he said.

The NCS official said that the Federal Ministry of Finance would periodically provide the service with a list of importers and their approved quotas to facilitate the importation of the staples within the policy’s framework.

He said that the policy required that at least 75 per cent of imported items be sold through recognised commodity exchanges, with all transactions and storage recorded.

“ Companies must keep comprehensive records of all related activities, which the government can request for compliance verification.

“If a company fails to meet its obligations under the import authorisation, it will lose all waivers and must pay the applicable VAT, levies, and import duties.

“This penalty also applies if the company exports the imported items in their original or processed form outside Nigeria,” he said.

He said that the policy was a temporary measure aimed at addressing the current economic hardships.

He added that it does not undermine the long-term strategies put in place to safeguard local farmers and protect manufacturers.

According to the spokesperson, the previous duty rate and levy for husked rice was 30 per cent, beans 20 per cent, wheat 20 per cent, while millet, maize and grain sorghum were five per cent.(NAN)(www.nannews.ng)

Edited by Kadiri Abdulrahman

Economy/Business

SMEDAN, NIPOST offer 15% logistics discount to small businesses

By Lucy Ogalue

The Small and Medium Enterprises Development Agency (SMEDAN), has partnered with the Nigerian Postal Service (NIPOST), to offer a special 15 per cent discount on logistics services to small businesses.

The Director-General of SMEDAN, Mr Charles Odii, said this while signing a Memorandum of Understanding (MOU) with the Postmaster General of NIPOST, Mrs Tola Odeyemi, on Wednesday in Abuja.

Odii said that the partnership would improve business conditions, expand sales, and lower operational costs for Small and Medium Enterprises (SMEs) in Nigeria.

He described the collaboration as a direct response to feedback from SMEs regarding the high cost of logistics and its negative impact on sales.

“We are signing, today, 15 per cent. Maybe in another three months the postmaster can make it 50 per cent or review it better.

“This is the best time for this partnership, and in another three months, we are hoping that we can come back here and review what we have done.

“We will articulate clearly how much we helped small businesses in Nigeria save through our monitoring and evaluation department, and then we can continue to see how we can better this partnership.

“The discount offer will commence on Monday, August 26, and will be available to SMEs registered with SMEDAN in two ways: online pickups and walk-ins,” Odii said.

According to him, the feedback received by the agency through its engagements with SMEs revealed that, in some cases, the cost of delivery exceeds the cost of items.

The director-general said this discouraged sales and limited commercial opportunities for SMEs in their immediate environment.

He said the partnership would leverage NIPOST’s national presence and infrastructure and its ongoing reform and modernisation efforts under the leadership of the Postmaster General of the agency.

Odii urged small business owners that are not registered with the agency to do well to register so as to benefit from the initiative and other initiatives of SMEDAN.

On her part, the Postmaster General said the partnership was long overdue and would contribute to the achievement of inclusive economic growth.

Odeyemi acknowledged that MSMEs, which represent over 90 per cent of businesses in the country and contribute half of the gross domestic product, serve as the backbone of the economy.

“So, we are here to partner with you, to partner with your mandates for small and medium enterprises in Nigeria to come on board our platform, as it is a platform for inclusive economic growth.

“I know that this partnership is one for the ages, one that will spur Nigeria’s economic growth.

“Any MSME that is registered with SMEDAN gets access to a 15 per cent discount, and it runs as long as Nigeria runs.

“Although 15 per cent discount might not look much, you have to realise that NIPOST prices are already socially oriented,” she said.

The postmaster said that through the partnership, both agencies would  utilise their offices and stations nationwide to initiate, process, and fast-track deliveries.

“It will ensure that small businesses can move goods to remote parts of the country efficiently, timely, and affordably.

“To ensure a seamless and positive experience for SMEs, both agencies will maintain a dedicated customer support unit to respond to complaints and address any issues that may arise.

“This unit will provide prompt assistance, ensuring that SMEs can focus on growing their businesses without logistical hurdles,” she said (NAN)

Edited by Peter Amine

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