Business
Nigeria government releases oficial gazette on list of pioneer industries and products
The Nigerian Investment Promotion Commission (NIPC) recently announced the release of an official gazette (the Gazette) of the list of pioneer industries and products.
The Nigerian Investment Promotion Commission (NIPC) recently announced the release of an official gazette (the Gazette) of the list of pioneer industries and products. Although the Gazette was released in November 2018, it became effective in August 2017.
This appears to follow the approval by the Federal Executive Council (FEC), of the updated list of pioneer industries and products. The approval, which was granted in August 2017, saw the addition of 27 new industries to the pioneer list.
According to the Gazette, the list of pioneer industries stands at 99 from 71 in 2017. A review of the Gazette shows that this increase is not necessarily based on the inclusion of additional industries – the old 71 industries were further broken down to provide more clarity and streamlining. Further, the list of pioneer industries and products have been arranged by ‘sectors’ and ‘sub-sectors’, in line with the International Standard Industrial Classification of All Economic Activities.
We have provided below, the key considerations and matters arising from the Gazette:
- Removal of clinker and cement (as qualifying products) from 1 August 2020. The effective date of removal appears to be in line with the spirit of the “Application Guidelines for Pioneer Status Incentive”, which requires three years notice in cases where any product/industry is to be deleted from the list of pioneer products/industries. However, NIPC made the Gazette available to the public in November 2018, thereby effectively giving industry players and other interested parties only 1 year and 9 months’ notice period, which is less than the 3 years notice period required.
- The effective date of deletion of clinker and cement – 1 August 2020. It is uncertain whether:
- The date of deletion implies that pioneer incentives in respect of the production of clinker and cement cease on 1 August 2020, in which case any existing or ongoing incentive at that date will expire. If this is the case, one would expect that any application that had not been processed and granted as at 1 August 2017 would not be entertained. As such, the Gazette would appear to be having a retrospective effect as it was only made public in November of 2018; or
- The deletion date implies that pioneer applications in respect of clinker and cement may still be welcomed up until 1 August 2020, in which case pioneer incentives may be enjoyed up until 1 August 2023.
The issuance of the Gazette is seen as a welcome development, as it is expected to stimulate economic activities in the pioneer industries. This is also expected to extend to infant industries/sectors and help them grow, while also leading to an overall growth in the country’s economy.
On the growth of the economy, a major consideration of the Pioneer Status Incentive (PSI) regime is its exclusion of expansionary activities of existing companies solely because they have been in operation beyond 1 year, despite having huge potentials for stimulating economic growth. We urge the Federal Government, as part of the biennial review of the PSI regime, to re-evaluate this consideration.
Please click here to download the Gazette and here to access our earlier publication on the revised guidelines.
Business
It would be difficult to find loans to finance rail to Niger Republic – Cheta Nwanze
Finding loans to finance rail to the Niger Republic would be difficult, says Cheta Nwanze.
Cheta Nwanze, Lead Partner at socioeconomic research firm, SBM Intelligence, says that it would be difficult to find loan financiers for the proposed $1.9 billion rail project from Kano to Maradi in Niger republic.
Cheta, in an interview with Nairametrics on Friday, explained that it appears that Nigeria is more keen on the project than Niger Republic.
READ: Ghana blows hot over Nigeria’s $2 billion rail project that involves Amaechi
Back story: Nairametrics reported this week that the Federal Executive Council has approved the disbursement of $1.96 billion, for the railway line from Kano in Nigeria to Maradi in Niger Republic.
According to the report, the President is also expected to commission the Warri-Itakpe standard gauge rail line, running through Kogi, Edo, and Delta States.
“Nigeria is investing so much in this rail line, given that we are Niger’s 4th largest trading partner,” Cheta said.
READ: FG threatens to disconnect Togo, others from electricity over $16 million debt
He added that Niger, although being landlocked already, has an existing infrastructure for its imports and export services, which is much better utilized than Nigeria’s export infrastructure.
“The majority of their imports from France, China, and the USA come in via the port of Lome, precisely because the port in Lome works, and the rail link in Togo is much better than ours.
“Nigeria, on the other hand, has let its Apapa port to become a wreck, while transportation between Lagos and Kano/Jibia is a nightmare, if we’re being charitable with words.”
(READ MORE: Trade and Investments, a way out of Nigeria’s economic troubles – Fola Fagbule)
According to him, with the reality of the Apapa congestion and other factors, finding fund for such project, when debt to service ratio is high and amidst reduced oil revenue, will be difficult.
READ: Local refining; A panacea for Nigeria’s reliance on imported refined products
“With these realities in mind, I find it difficult to imagine who will extend such a loan to Nigeria, especially since, as far as all the information available to me indicates, Niger does not seem as keen on pushing this as Nigeria does,” he added.
However, the media aide to President Buhari, Garba Shehu, disclosed that the Federal Government is not constructing a rail line from Nigeria linking Kano-Dutse-Maradi into the Niger Republic, as it will only stop at the designated border point.
READ: NDDC Probe: Senate orders IMC to refund N4.9 billion illegal payments
Maradi is 55km from the Katsina border Town of Jibia.
Business
Canada invites another 4,200 Express Entry candidates for permanent residency
Canada has invited 4,200 immigration candidates to apply for permanent residency.
As countries around the world commence relaxation of ban on international travels, the Canadian government has issued another round of invitation to 4,200 Express Entry Candidates, to apply for its permanent residency.
Canada held its 163rd Express Entry draw, inviting 4,200 immigration candidates to apply for permanent residence on September 16, being the second draw this month, with a comprehensive ranking system (CRS) score of 472. This is three points less than the previous draw held earlier in the month.
This draw matches the 4,200 ITAs issued in an Express Entry round on September 2, which ties it for the second-biggest draw ever. The biggest draw issued 4,500 ITAs on February 19, 2020. The large number of invitations being issued by Canada is a strong indication that it remains committed to welcoming high levels of immigrants in 2021 and beyond.
READ: Jobberman launches ‘Best Match’ product to get employers the right candidates, faster
The recent round of draw brings the total number of invitations issued this year to 74,150; a new record for this date, indicating an 86.4% success rate.
IRCC used its tie-break rule in this draw. The timestamp used was March 9, 2020, at 13:03:40 UTC. This means that all candidates with a CRS score above 472, as well as those candidates with scores of 472 who entered their profile in the Express Entry pool before the selected date and time, received an ITA in this invitation round.
This rule is used to rank candidates, who have the same CRS score. A candidate’s CRS score remains the primary factor in selecting candidates to be invited to apply for permanent residence. Factors that can affect the cut-off CRS score include the size of the draw (larger draws can produce a lower minimum CRS score), and the time between draws (shorter periods between draws can help to lower the CRS score).
READ: 13.9 million Nigerian youth are unemployed – NBS
How it works
Express Entry, is the application system that manages the pool of candidates for Canada’s three main economic immigration classes — the Federal Skilled Worker Program (FSWP), the Federal Skilled Trades Program (FSTP), and the Canadian Experience Class (CEC). The highest-ranked candidates in the Express Entry pool are issued ITAs in regular invitation rounds.
A set number of the highest-ranked candidates are invited to apply for Canadian permanent residence, through regular draws from the pool. These invitation rounds typically take place every two weeks, and the vast majority involve candidates from all three Express Entry-managed categories.
Eligible candidates for each program are issued a score under Express Entry’s CRS, which awards points for factors such as age, education, skilled work experience, and proficiency in English or French.
While a job offer is not required in order to be eligible under the Express Entry system, the CRS does award additional points to candidates who have one. It is worth noting that the Government of Canada has a processing standard of six months for permanent residence applications, filed through the Express Entry system.
Nigerians trooping to Canada
According to the report, Nigeria was the fifth highest country, that migrated into Canada in the month of July 2020, behind India, China, Philippines, and Pakistan. This is an indication, that Nigerians are taking every opportunity possible to move into other countries of the world, perceived to give better opportunities in terms of education, career growth, sufficient earnings, amongst others.
A recent report published by CEOWorld Magazine, reveals that Canada is the third world’s best country to start a career in 2020, which is why many people around the world would troop in numbers, seeking to migrate to the country, while Nigeria on the other hand ranks bottom four, with the likes of Libya, Syria, and Yemen.
Business
Lagos State government seals warehouse repackaging expired curry powder
Following an anonymous tip, LASCOPA has sealed off a warehouse where expired curry powder was being packaged.
The Lagos State Consumer Protection Agency (LASCOPA), under the aegis of the Lagos State Government, has sealed a warehouse for repackaging unwholesome and expired curry powder.
This disclosure was made this morning in a press release to the general public, which was seen by Nairametrics, via the official website of Lagos State Government.
READ: Lagos seals 22 other buildings in Banana Island, Ikoyi axis over permits
Acting on an anonymous tip-off from a member of the public, the Special Monitoring Team of LASCOPA, led by its General Manager, Mrs. Kemi Olugbode, paid an unscheduled assessment visit to the warehouse, to verify the claim. The tip turned out to be genuine.
This decision is in line with the State Government’s core mandate of protecting consumers from unwholesome products. The warehouse which was sealed by LASCOPA, for repackaging unwholesome and expired curry powder with the name Chinchilli and Ducross for sale, was said to be owned by Canvest Nigeria Limited. The warehouse is located at Plot 4, Cocoa Industrial Road, Ogba, Ikeja.
The General Manager, speaking after the exercise, said the enforcement team discovered thousands of expired products stored in cartons, while some were found in sacks that were ready to be repackaged for sale in the market.
(READ MORE: Lagos to remove illegal structures obstructing Lekki Regional Road project)
The Head of LASCOPA, emphasized that the staffs of the company involved in the fraudulent operation have been arrested. Olugbode disclosed that the property will remain sealed until the government commences prosecution of the owners of the warehouse, and all those involved in the illicit activity are apprehended.
Mrs. Olugbode, also encouraged members of the public to support the present administration’s determination to rid Lagos of all illegal activities, by reporting those who are engaged in unwholesome activities that are detrimental to the health of residents.
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