Business News
FG says $25 billion FDI helped boost nation’s economy after recession
The FG has disclosed that the $25 billion FDI injected by Nigerians in diaspora after the nation exited recession helped revived Nigeria’s economy.
The Federal Government has disclosed that the $25 billion Foreign Direct Investment (FDI) injected by Nigerians in diaspora after the nation exited recession in 2018 helped revived Nigeria’s economy.
Chairman, Nigerians in the Diaspora Commission, Abike Dabiri-Erewa, announced that the Nigerians had expressed their desires to inject their funds in over 200 businesses and projects across different sectors of the economy.
Some of the sectors of interest are agriculture, telecommunication, technology, real estate, health and education, among others.
[READ MORE: FG inks $3.9 billion deal with Chinese firm for construction projects]
She explained that over 300 investors would participate in the 2019 Nigeria Diaspora Investment Summit scheduled for November 6-7, 2019, at the Presidential Villa, Abuja. According to her, the summit tagged, ‘Leveraging diaspora investment for economic growth,’ is supported by the Nigeria Diaspora Alumni Network.
Other sponsors are Nigeria Investment Promotion Commission, Infrastructure Concession Regulatory Commission, Bank of Industry, Nigeria Export Promotion Council, Bauchi State Government, Keystone Bank, and Rwandair, among others.
She said, “The summit underscores the fact that Nigerians in the diaspora represent a game-changing leverage for the country as the economy exits recession and heads towards growth. They currently account for the highest net contribution to FDI inflows into the country with $25 billion remitted in 2018.
“This year’s summit could not have come at a better following the presentation of the national budget and fiscal plans for the year 2020, marking a return to the old January to December fiscal year.”
[READ ALSO: FG may withdraw licenses of Abuja, 7 other Discos in 60 days]
According to her, the summit organizers’ decision to prioritize investment in small businesses was informed by the government’s current emphasis on providing support for the small business sector, and agriculture.
She added that the summit would focus on agribusiness; education, training and skilled workforce development; healthcare services and awareness; entertainment, hospitality and tourism; infrastructure and real estate; manufacturing, and extractive industries and others.
Coronavirus
Sanwo-Olu gives incentives to businesses to prevent job loss
Babajide Sanwo-Olu noted that the state is Nigeria’s number one commercial centre and a massive job loss will not bode well for it’s economy
Lagos state governor, Babajide Sanwo-Olu, has promised that any business that employs a large number of people will receive incentives from the state government in order to prevent massive job loss in the state.
He noted that Lagos state is Nigeria’s number one commercial center and heavy job losses will not bode well for the economy of the state, and the country.
As the commercial centre of the country, we are offering incentives to businesses that employ large number of people to avoid job loss.
In our plan to re-open the economy, businesses will follow our Register-to-Open guidelines with protocols that workplaces must put in place. pic.twitter.com/zJgEWLMksK
— Babajide Sanwo-Olu (@jidesanwoolu) May 22, 2020
“We are having conversations with different sectors on the requirements they need to ensure they do not retrench their staff. What many of the companies want will affect the State’s IGR but we are willing to make the sacrifice to prevent the loss of livelihood of our citizens,” the governor stated.
The phased reopening of the economy
The governor explained in his tweet that all businesses were still required to follow the Register-to-open initiative, and put all facilities in place before they would be allowed to reopen.
(READ MORE: COVID-19: Best and worst case scenarios for the Nigerian economy)
According to him, the state will consider companies in the construction and manufacturing sector as top priority in the first stage of the reopening, while businesses in the entertainment and hospitality sector will be considered for reopening in the second phase, as the state tries to balance economic reactivation with COVID-19 management.
The re-opening will not be hastily done. The various sectors will be reset in a gradual manner. The construction and manufacturing sector will be accorded high priority while the entertainment and hospitality sectors will be considered in the second phase.
— Babajide Sanwo-Olu (@jidesanwoolu) May 22, 2020
“We are caught between managing hunger & sustaining an economy that is not only dependent on commercial activities in Lagos alone but also in other states.
“We are at the stage where we have to balance public health safety & the economy that affects the wellbeing of the people” Sanwo-Olu stated.
He urged Lagosians to support the government in breaking the cycle of transmission, by adhering to the guidelines from the authorities.
Around the World
Air Peace to evacuate stranded Indians from Lagos to Kerala
A list of the passengers to be attended to has already been given and the flight shall depart Lagos on May 30, 2020, to Cochin Airport, Kerala.
The management of Air Peace Nigeria has been contacted by the Indian High Commission in Nigeria to undertake the evacuation of stranded Indian nationals to Kerala, India. This was disclosed by the airline via its Twitter handle.
The airline explained that a list of passengers that would be attended to have been released and it has started reaching out to the Indians on Saturday.
It stated, “A list of the passengers to be attended to has already been given to us and we have commenced reaching out to them. The flight shall depart Lagos on May 30, 2020, to Cochin Airport, Kerala.”
The flight is not free anyway. According to the airline, payments are expected immediately and they are Economy is $1.300 and Business class is tag $1,700. “You are equally allowed to pay in Naira at N460/$,” it added.
PUBLIC NOTICE (23-05-2020) pic.twitter.com/bn0xNxnRmO
— Air Peace (@flyairpeace) May 23, 2020
However, some Indians in Nigeria has reacted with mixed feelings to the development on Twitter. While some were ready to join the flight back home, others called for the refund of ticket fare booked a week ago.
READ ALSO: Hope rises as Emefiele set to meet MTN, 4 banks today.
For instance, Jayant Khamesra requested for the refund ticket fare of N568, 100, which he paid for a flight from Lagos to Delhi.
He said, “Please refund ticket fare P47812 LAGOS to DELHI. No show by Air Peace and it is been 1 week now, there has been no refund or confirmation of the same. Reference ALHN79 amount N568,100. I am sure a good world-class carrier like Air Peace won’t delay refunds purposely. Please act fast.
Pls refund ticket fare P47812 LAGOS to DELHI – NO SHOW by AirPeace and it’s been 1 week now —- there has been no refund or confirmation of the same. Reference ALHN79 Amount 568100 NGN. Am sure a good world class carrier like AIRPEACE won’t delay refunds purposely. Pls act fast
— Jayant Khamesra (@JKhamesra) May 23, 2020
Coronavirus
The World’s Economy may not survive without a vaccine
Industries like tourism and travel with social distancing rules in place will only scramble for the little they can get while sports stadiums, entertainment hot-spots, etc., will remain closed.
As parts of the world restart economic activities, it is becoming clear that the worst plunge in modern history would need a vaccine or cure before things can revert to normal.
In response to the exogenous shock that is the Covid-19 pandemic, leaders, researchers, analysts, and experts have sought methods, options, – anything to reduce the negative impact of what many now regard as the worst slump since the 1930s. So far, different parts of the world have put systems and structures in place to allow a level of economic activity to continue as it became increasingly clear that full social welfare was simply unsustainable. This is, however, not without the existence of relevant restrictions like temperature checks, social distancing rules, and the latest fashion accessories – masks and gloves.
READ ALSO: Nigerian economy going into recession, might contract by -8.9% – Finance Minister
While this is an admittedly better development than the enforced total lockdown – at least for the economy, this too has its limitations. Economic activities have taken on a sluggish growth pace and while production might continue, global demand remains hamstrung. Industries like tourism and travel with social distancing rules in place will only scramble for the little they can get. Sports stadiums, entertainment hot-spots, etc., will remain closed. Even with the increased dependence of delivery services, restaurants will struggle to make what they used to before. Jobs have been cut and even more will. In essence, the partial reopening of the economy isn’t also sustainable. Yet, it is impossible to ignore the virus itself especially given the risks of a resurgence of the virus in already treated patients and the increasing cases in many parts of the world.
Data obtained from Bloomberg revealed that people infected around the world reached 5 million with a death toll of over 330,000. With the pandemic still on our tails, finding a vaccine is our best bet – and nothing else might be able to beat that. Stephen Jen, CEO of Eurizon SLJ Capital – hedge fund and advisory firm in London told Bloomberg News that there’s some sort of bounty on the virus globally.
READ MORE: Osinbajo sets up committee on reopening of Nigerian economy, suspends loan deductions for states
In his words, “I don’t see how it is wiser for investors to bet on the virus than to bet on science, technology, and unlimited political and financial capital in the world to contain and defeat the virus.”
Also, the shares of American drug maker based in Massachusetts, Moderna Inc., hit a record high early in the week, as a result of its early data from a small trial of the company’s Covid-19 vaccine. It, however, gave up some of those gains days after stock traders scrutinized the early nature of the vaccine data.
Bloomberg Economics predicts that the restriction and shutdown of businesses triggered a plunge in economic activities of about 30% and their findings found that the first steps to relax controls will have a good impact on activity than later ones. Yet, our optimism is palpable. Anita Zaidi, Director of Vaccine Development and Surveillance at the Bill & Melinda Gates Foundation have advised that the process of creating an effective immunity could take years, and even then it will have to solve the issue of logistics that is making the vaccine readily available globally.
Today, the world waits in hope that this too passes like many of its predecessors. While it will indeed pass, there still is no saying how long it will take before life reverts to a new but sustainable normal.
