Business News
Why Maritime sector slows nation’s GDP
The Group Managing Director, SIFAX Group, Adekunle Oyinloye, has rated the 2019 performance of Maritime low.
The Group Managing Director, SIFAX Group, Adekunle Oyinloye, has rated the 2019 performance of Maritime low. According to Oyinloye, Maritime should be a major contributor to Nigeria’s Gross Domestic Product but it is being held down by several challenges.
Oyinloye said Nigeria’s major economic activity should come from maritime but lack of quality infrastructure is preventing operators from optimising their activities and their return on investments.
“In fact, maritime is expected ordinarily to be a major contributor to our Gross Domestic Product. So whatever happens in that sector is key to any economy. Two, if you see the role maritime plays in countries like Singapore and a number of other such maritime nation, it’s very important. Now assessing the maritime or logistics sector in Nigeria, a whole lot of challenges are affecting its optimal performance.
“If you come from the area of seaports, the infrastructure there has minimised the ability of the operators to optimise their activities and their return on investments, and invariably also to contribute significantly to the GDP.
“If you look at the airport, because of our stagnant investment in that area too, it has also made the activities there sub-optimal. You now go to the road, the road infrastructure is probably even worse. The logistics sector has really suffered, and I don’t think our appraisal will actually give us a pass mark,” Oyinloye said in a Punch report.
[READ MORE: Sifax acquires $20 million German mobile harbour cranes)
While speaking on challenges, Oyinloye identified road as the major headache of operators in the maritime. He explained that operators encountered bad road and traffic congestion not only in Lagos but also in other states in Nigeria.
“If the roads are good, you know the sky is wide enough for all sort of birds to fly. So I won’t even see the tank farm on its’ own as constituting to the challenge of the logistics sector. For me, if the roads are good, the access roads to the port in particular, in and out, people can drive in and drive out like we used to have in those days, it would not have been a problem if the tank farms operate. They will operate at their own terms.”
He further stated that, “You want to have a number of cargoes out of the seaport and the gridlock that we are currently facing in Apapa is not making things easy. Now if you push and push cargoes to the other ports outside Lagos, the roads and the quality of the road to get to areas like Port Harcourt, to come back to the Mid-West and to where ever they are going, is still a challenge. That’s what I see. We still need to holistically focus on how to make things work.”
Oyinloye supports new budget cycle: According to him, the January to December cycle recently adopted by President Muhammadu Buhari will help businesses plan better rather than the previous cycle which leaves businesses in an uncertain position.
[READ ALSO: Maritime Industry expenses to gulp N939.5 billion by 2023)
“The first thing any business enterprise wants to see is that they can plan, when you have a predictable cycle, you can plan better.
“December you know you are winding down the year, so your finances too you’re closing it and in January you are starting the year. So the return of the budget cycle to January – December is a welcome development, it allows people to plan, I think the novel thing that have come with the budget for this year is the Finance Bill.
“That will also give some parameters to plan properly. You know what the government will support and will not support in the course of the year and you can plan better. I think it is a welcome development.”
Business
AGF launches Committee on Financial Transparency Guidelines and Open Treasury Portal
This initiative will provide the public with financial information of all MDAs.
Office of the Accountant-General of the Federation has launched a Committee on Federal Government Financial Transparency Guidelines and Open Treasury Portal to enable Transparency on economic governance policy.
Speaking during the launch today in Abuja, the Accountant-General of the Federation, Ahmed Idris, FCNA, said the committee would provide the public with financial information of all MDAs to promote accountability and anti-corruption campaign.
The AGF said that the Honourable Minister of Finance and National Planning (HMFBNP) had in July 2018, presented a memo to the Federal Executive Council (FEC) for the approval to establish the Financial Transparency Guidelines and Open Treasury Portal.
“The approved Transparency Policy provides for Transparency requirements, thresholds and responsibilities as part of Government Policy on accountability in line with Freedom of Information Act 2014.
“The HMFBNP, then constituted the composition of the Quality Assurance and Compliance Committee which membership were drawn from MDAs,” he said.
Idris said that the Committee would implement transparent governance and improve the FG’s whistleblowing programme, which would help Nigerians report financial crimes in the MDAs.
He disclosed that the operations of the committee would be accounted through the Office of the Accountant-General of the Federation which will offer its secretariat services to the committee, and enable the committee request information and clarification.
Idris added that the Committee would report to the Accountant General and the Minister of Finance, Zainab Ahmed monthly, citing that the Committee would work transparently “without fear or favour”.
Economy & Politics
FG meets group to access AfCFTA’s $650 billion market
AfCFTA is aligned to the ministry’s twin national objectives of industrialization and export based diversification.
The Ministry of Industry, Trade and Investment has met with executives of the Nigerian Agribusiness Group (NABG) on the implementation of the African Continental Free Trade Area (AfCFTA) and access the continent’s market worth $659 billion, in mostly manufacturing goods and services.
This was disclosed by the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo during the meeting on Monday.
The minister emphasized on the importance of AfCFTA, as it is aligned to the ministry’s twin national objectives of industrialization and export based diversification. It provides us with a preferential access to African market worth over $650bn, in mostly manufactured goods .
Back story: Nairametrics had reported when Aissata Koffi Yameogo, ECOWAS’ Programmes Officer in charge of implementing AfCFTA rules of origin in the continent, said that the implementation will expand market for the manufacturing industry to 1.3 billion West African citizens, without additional duties and fees.
“It will build production capacity in the region and develop the value chain, and increased export to other African states” she added.
The benefits would also encourage member states to specialise in the production of a certain good where they have a comparative advantage, thus enhancing the quality and quantity of local production and creating more jobs.
He said, “This would improve our competitiveness and the perception of our products and services in the African market. Intra-African trade in Agro products and services will develop our local value chain, create jobs and increase our GDP.”
Today, the Honourable Minister @NiyiAdebayo_ , had a meeting with executives of the Nigerian Agribusiness Group(NABG), on the implementation of the African Continental Free Trade Area (AfCFTA) Agreement. pic.twitter.com/GOhVzLVJb2
— FMITI Nigeria (@TradeInvestNG) August 10, 2020
According to International Monetary Fund (IMF), the elimination of tariffs could boost trade in Africa by 15-25% in the medium term, and once fully implemented, is expected to cover all 55 African countries, with a combined GDP of about US$2.2 trillion.
Business
FG to Commission Nigerian Content Development Tower this week
The NCDMB was launched to enable the implementation of the oil gas industry’s content development.
President Muhammadu Buhari will virtually commission the 17-story Nigerian Content Tower of the Nigerian Content Development Development and Monitoring Board (NCDB) in Yenagoa on Thursday.
The building would come with its own 10 Megawatt gas-fired power plant and a 1000 seater conference hall also in the Swali area of the Bayelsa State capital.
“President Buhari will also commission the NCDMB Independent Power Plant constructed in partnership with the Nigerian Agip Oil Company (NAOC).
“This power plant will provide uninterrupted electricity to the NCDMB structures, the Nigerian Oil and Gas Park being developed by the Board at Emeyal 1 Bayelsa State and select structures in the state,” the agency said.
This power plant will provide uninterrupted electricity to the NCDMB structures, the Nigerian Oil and Gas Park being developed by the Board at Emeyal 1 Bayelsa State and select structures in the state.#NCDMB
— NCDMB (@OfficialNCDMB) August 10, 2020
The agency also announced that the Power Plant of the tower was constructed by the Nigerian Agip Oil Company (NAOC) and will ensure 24/7 electricity to the tower and also to “ the Nigerian Oil and Gas Park being developed by the Board at Emeyal 1 Bayelsa State and select structures in the state”.
Executive Secretary of NCDMB, Engr. Simbi Kesiye Wabote said that some parts of the virtual launch would be held in Yenagoa, which would be attended by the Minister of State for Petroleum resources, Timipre Sylva, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari and the Governor of Bayelsa State, Senator Douye Diri.
Construction of the tower began in 2015 and was constructed by Megastar Technical & Construction an indigenous engineering company, the agency announced that construction of the tower provided over 250 direct and indirect jobs.
Founded in 2010 by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, the NCDMB, was launched to enable the implementation of the oil gas industry’s content development which includes, approving Nigerian content plans for operators, growing the Nigerian Content Development Fund, maintain and operate the Joint Qualification System (NOGICJQS) in conjunction with industry stakeholders, ensure compliance by operators through sourcing of local goods and employment and many others.
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