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Group advocates for more Nigeria-Vietnam trade in oil and gas, other key sectors 

The ACCI has weighed in on the Nigeria-Vietnam partnership, seeking for more economic cooperation between the two countries. 

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Group advocates for more Nigeria-Vietnam trade in oil and gas, other key sectors , ACCI set to explore $3 trillion Halal economy

The Abuja Chamber of Commerce and Industry (ACCI) has weighed in on the Nigeria and Vietnam partnership seeking more economic cooperation between the two countries.

According to the President of the ACCI, Adetokunbo Kayode, the need to address the trade deficit between the countries by exploring the potential in key sectors of their economies cannot be overemphasized.

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[READ MORE: Vietnam visit threatens Nigerian cocoa exporters]

Areas which Kayode said needed improved economic cooperation include oil and gas, transportation, maritime, mining, construction, power, agriculture, cement, engineering, telecommunications and education.

Speaking on the trade volume between the two countries, he said it was about $303.8 with Nigeria’s export to Vietnam put at about $232.65 million in 2017. The export, he said, was mainly in raw materials, especially cashew nuts.

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Kayode further said that Nigeria’s imports from Vietnam were worth $71.18 million made up of mobile phones, electronics, textiles, plastic, chemicals and machine parts.

“Nigeria and Vietnam must devise more areas of economic cooperation in important sectors such as oil and gas, maritime, mining, construction, power, agriculture, cement, transportation, engineering, telecommunications and education.

 “This is in order to add maximal value to our economies on a win-win basis and to ensure mutual prosperity.

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 “The ACCI with the Organised Private Sector is prepared to partner with the investors in all the identified sectors. We have identified critical sectors such as wood processing, footwear, cashew farming/processing, cotton farming/processing; cocoa farming/processing, textile mills, garment industries, motor/tricycle manufacturing and assembly, trucks assembly, tourism, culture, manufacturing and agriculture.”

Kayode’s call is in line with what Vietnam’s Deputy Minister of Industry and Trade, Dang Hoang An said. He said the trade relations between both countries would begin to see improvement stating that the Nigeria population of 200 million, accounts for a huge chunk of the market size in West Africa.

[READ ALSO: Nigeria suffers rejection of 37,000 cashews by Vietnamese buyers]

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Nairametrics recently reported that Nigeria and Vietnam signed a Memorandum of Understanding (MOU) on waiver of visa requirements to encourage business trade. This agreement on visa waiver came amidst Vietnam’s plea that Nigeria should open its borders for Vietnamese rice, leather shoes, textiles, and other products.

Patricia

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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Economy & Politics

Nigeria only hit 56% of its target revenue in first five of months of 2020 

Nigeria’s earnings in the period were N1.48 trillion which is 56% off its main target.

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Zainab Ahmed, Pres. Buhari to review Finance Bill, tax reform yearly to finance budget 

Nigeria’s Minister of Finance, Zainab Ahmed revealed that Nigeria was only able to meet 56% of its target revenue from January to May as the global oil price crash affected government revenue due to the COVID-19 pandemic. 

Nigeria’s earningin the period were N1.48 trillion which is 56% off its main target, crude oil revenues accounted for half of Nigeria’s revenues, while non-oil revenues made up the rest in the first 5 months of the year. 

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On Friday, President Muhammadu Buhari signed the new 2020 revised budget of N10.8 trillion with the crude oil benchmark reduced from $57 per barrels in the earlier budget to $25 in the new budget.

The Minister said the budget had to be revised because of the effects of the COVID-19 pandemic on Nigeria’s economy. She added that Nigeria’s crude oil production would be an average of 1.86 million barrels per day next year and rise to 2.09 million the following year. 

 “Although Nigeria’s total production capacity is 2.5 million barrels per day, current crude production is about 1.4 million barrels per day — in compliance with the Organization of the Petroleum Exporting Countries’ production quota – and an additional 300,000 barrels per day of condensates, totaling about 1.7 million barrels per day,” she said. 

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Coronavirus

African Union begins COVID-19 vaccine trial group

CONCVACT plans to capture more than ten late-stage vaccine trials at the earliest.

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coronavirus, COVID-19: Infections rise to 42 as 2 new cases are confirmed, COVID-19: Western diplomats warn of disease explosion, poor handling by government

The African Union Commission just recently facilitated a program called the new Africa Centres for Disease Control and Prevention (Africa CDC) Consortium for COVID-19 Vaccine Clinical Trial (CONCVACT).

The program is part of the Africa Joint Continental Strategy for stopping the deadly COVID-19 onslaught that has disrupted human activities. The goal is to prevent severe COVID-19 infections and deaths in African countries, reduce the economic damage caused by the pandemic, and help minimize the general disruption to everyday life.

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READ MORE: Covid-19: Pfizer, BioNTech’s vaccine ready before end of the year

Quick fact about COVID-19: Although for some individuals, the COVID-19 virus causes only mild illness, it can make other individuals seriously ill. The disease can be very fatal, especially among older individuals, and those with compromised immunities (such as diabetes, high blood pressure, or heart problems) appear to be more susceptible.

South Africa’s leader, Cyril Ramaphosa, said, “Success in developing and providing access to a safe vaccine requires an innovative and collaborative approach, with significant local manufacturing in Africa.

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“We need to support the contribution of African scientists and healthcare professionals. We need to act with urgency.”

CONCVACT plans to capture more than ten late-stage vaccine trials at the earliest, via collaborations with global vaccine developers, sponsors, and African businesses that enable clinical studies.

Explore Economic Research Data From Nairametrics on Nairalytics

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The African group also hopes to secure the safety and efficacy data of promising vaccine candidates for the African population in order to validate their launch after approval.

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Economy & Politics

2021 Budget: FG projects spending plan of N11.86 trillion and deficit of N5.16 trillion

This tops 2020 budgeted expenditure of N10.8 trillion.

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FG projects spending plan of N11.86 trillion and deficit of N5.16 trillion,IMF, International monetary fund, Zainab Ahmed, Nigeria's Minister of Finance, Budget and National Planning

The Federal Government is projecting to spend N11.86 trillion for 2021. This was disclosed by the Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed at a virtual presentation of the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) held on Friday.

According to the finance minister, the government is planning to spend N11.86 trillion against revenue of N6.98 trillion meaning the government will have to grapple with a fiscal deficit of  N5.16 trillion.

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Zainab Ahmed;

“The 2021-2023 MTEF&FSP is the pre-budget statement that provides the framework for the development of the 2021 budget. It is being framed against the backdrop of challenging global macroeconomic environment as well as domestic factors.

“We aim to keep the deficit within the three percent ceiling over the medium term and are therefore working on identifying new revenue sources and or cost of reduction.”

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The minister noted that the 2021-2023 draft had been prepared against the backdrop of heightened global economic uncertainty.

READ MORE: Lawmakers now closer to an agreement with stakeholders on free electricity supply

Earlier today President Buhari signed the revised 2020 national budget of N10.8 trillion, which was passed by the National Assembly in June. The National Assembly passed a revised budget of N10.8 trillion on the 11th of June after the Federal Executive Council (FEC) approved a revised budget of N10.523trillion in May. 2020 Budget is based on a revised oil benchmark of $25 per barrel as against $57 while crude production was reduced from 2.18 million to 1.94 million barrels per day  Budget deficit for 2020 is estimated at N5.365 trillion.

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As of March 2020, the FG was running a 52% shortfall in the first quarter of the year with actual revenue collected of N950 trillion compared to budgeted revenue  N1.96 trillion.

Explore Economic Research Data From Nairametrics on Nairalytics

What this means: Nigeria is facing an unprecedented revenue crisis exacerbated by the Covid-19 pandemic and the crash in oil prices. At N5.16 trillion, Nigeria’s projected budget deficit will be 43% of spending and about 3.6% of GDP if the budget is passed. A budget deficit means the government will have to borrow heavily next year to fund its expenditure programs.

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The government received a $3.4 billion funding from the IMF in April and expects another $3.5 billion from the World Bank in August 2020. The government also revealed it has no plans to access the commercial market for foreign debts as it takes advantage of lower interest rates in the domestic market.

Patricia
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