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FG to establish Infrastructure company for critical investments in projects

Buhari has approved the establishment of an Infrastructure Company, wholly focused on critical infrastructural investments in Nigeria.

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FG to establish Infrastructure company for critical investments in projects, Survival Fund: FG changes website due to operational challenges, FG orders Nigerians with bank accounts to fill, submit Self-Certification forms, Buhari orders payment of stranded NDDC scholarship students, commision gives reason for delay, President Buhari Democracy Day speech

President Muhammadu Buhari has approved the establishment of an infrastructure company that will be wholly focused on critical infrastructural investments in the country.

This disclosure was made through a tweet post by the Presidency on their official Twitter handle on Tuesday, November 17, 2020.

READ: Banks guaranteed N3.6 billion loans to farmers under the ACGSF – CBN

According to the statement, the infrastructure company is expected to raise funds for this responsibility from the Central Bank of Nigeria (CBN), the Nigeria Sovereign Investment Authority (NSIA), Pension Funds, as well as local and foreign private sector development financiers.

The Presidency in the tweet post said, “President Buhari has approved the establishment of an Infrastructure Company, wholly focused on critical infrastructural investments in Nigeria. This Infrastructure company will raise funding from Central bank of Nigeria, Nigeria Sovereign Investment Authority, Pension funds, and local and foreign private sector development financiers.”

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READ: Availability of unsecured credit to households dips in Q3 2020 – CBN

The president pointed out that the initiative will bridge the infrastructure deficit and is also implementing innovative financial strategies to pull in private sector investment.

He further disclosed that the company which was recently approved will become a world-class infrastructure development vehicle wholly focused on making critical infrastructure investments in Nigeria.

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READ: Covid-19: N3.5 trillion disbursed as stimulus package for the Nigerian economy

This initiative by the Federal Government is coming at a time where there is a huge infrastructure deficit in the country, some of which are ongoing. Some of the sectors where this infrastructure deficit exists include, transportation, aviation, amongst others

READ: CBN promises to sustain FX restrictions on import of food items that can be produced locally

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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ASUU says union has not yet agreed to call off strike

ASUU has denied media reports that the union agreed to call off its 8-month old strike action.

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ASUU gives conditions to call off its nationwide strike action

The Academic Staff Union of Universities (ASUU) has denied media reports that the union agreed to call off its 8-month old strike action.

There was a bit of relief when news emerged that the strike action has been called off, after the latest meeting between ASUU top echelons and the Federal Government negotiation team, led by the Minister of Labour and Employment, Senator Chris Ngige, on Friday.

According to a report from Vanguard, the ASUU President, Prof. Biodun Ogunyemi, said he is not aware of any agreement to call off the strike. However, he noted that it was agreed at the meeting that the union would convey government’s message to their various organs and then report back to the government.

Ogunyemi said, “I am not aware of that. All I know is that we had a meeting and we are going to report to our members. But, I don’t know about suspension of the strike.”

It was also reported that ASUU reached an agreement with the Federal Government after the latter increased its offer for Earned Allowances and funding for the revitalization of public universities from N65 billion to N70 billion.

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However, ASUU in a tweet insisted that the funding should be implemented before the union suspends its strike action.

What you should know

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Nairametrics earlier reported that ASUU had called off its 8-month-long strike. It said that the union took the decision after it agreed to accept government’s total payment of N70 billion and that the payment of their outstanding salaries must not be done through the Integrated Personnel Payroll and Information System (IPPIS).

ASUU embarked on strike in March 2020, following its disagreement with the Federal Government over the funding of the universities and implementation of the IPPIS, which according to the union, negates the autonomy policy for the universities.

ASUU, however, has its own developed and preferred payment platform, University Transparency and Accountability Solution (UTAS), which the government said it is looking into.

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Export of our products in West African sub-region now less competitive – MAN

President of the Manufacturers Association of Nigeria has lamented the less competitive nature of made-in-Nigeria products.

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Dangote group, CBN unification of exchange rate a welcome development-MAN

The export of made-in-Nigeria products in the West African sub-region has become less competitive according to the President, Manufacturers Association of Nigeria (MAN), Mansur Ahmed. He made this remark in a statement seen by Nairametrics.

According to Ahmed, MAN members are losing market share daily to other African countries due to the closure of the border, as the sub-region has now become less competitive.

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READ: AfCFTA: Nigeria’s borders to remain closed till we can trust our neighbours- Trade Negotiator

He said,

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Major manufacturers of beverages, polypropylene bags, tobacco, cement, toiletries, and cosmetics industries were losing markets they had worked very hard to secure in the West and Central African region.

“These manufacturers were hoping to leverage their market share to secure a strong position in the African Continental Free Trade Area, which kicks off in January 2021.

READ: Nigerians pay heavy price as laptop scarcity bites harder

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“Since the closure, the association has conducted a research with its members, the outcome is that some sectors had considerable increase in their productivity, while some sectors recorded sharp decline.”

He emphasized that the export group of the association clearly suffered huge losses due to logistics issues occasioned by the closure, as it takes an average of 8 weeks for the carriers to ship and truck goods within countries in the same region vis-à-vis trucking through the land border, which takes an average of 7 to 10 days.

READ: Afreximbank’s African commodity index dips by 1% q-o-q in Q3 2020

The increased traffic through our seaport as a result of the closure has increased the perennial congestion at the Apapa and Tin Can Island Ports, leading to greater challenges for exporters and increased demurrage cost, as well as other port levies,” he added.

READ: Coalition of African lawmakers seeks debt relief for African states

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What it means

Nigeria’s President Buhari recently signed the Africa Continental Free Trade Agreement exposing local Nigerian manufacturers to the regional competition.

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  • Whilst border closures impact positively on local markets due to restrictions on imports, it is unhealthy for local businesses looking to export across borders to regional African countries.

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AfCFTA: African Customs Officials to draft free trade continental guidelines

Customs officials from around Africa gave a nod to the adoption of continental guidelines to facilitate the free flow of cross-border trade.

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Q1 2020, AfCFTA, African Continental Free Trade Area, Africa Free Trade Agreement, Business new, Nairametrics news

The African Continental Free Trade Area (AfCFTA) got closer to actualization on Saturday as Customs officials in the continent agreed to draft continental guidelines to enable the movement of goods, services and people for the agreement.

This was disclosed by the UN Economic Commission for Africa on Saturday evening.

“Liberalization of 90% of tariff lines will affect customs revenues. About 85% of import come from outside Africa, leaving about 15% from the continent, but the agreement is an opportunity for Nigeria to boost exports and production,”  the Customs Service disclosed at the AfCFTA Sensitization Seminar.

READ: Export of our products in West African sub-region now less competitive – MAN

The joint adoption of a continental customs guidelines comes a few weeks before the AfCFTA kicks off in January 2021.

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The meeting organized by the African Union Commission (AUC) virtually was attended by Customs Chiefs in Africa, who agreed to implement measures to facilitate cross-border trading challenges heightened by the covid-19 pandemic.

READ: African free trade will boost development of manufacturing in Nigeria – NEPC

The Director of Regional Integration and Trade, UN Economic Commission for Africa, Stephen Karingi, disclosed that the guidelines were drafted to boost coordination and implementations of a common customs guideline covering areas including transport and infrastructure and others.

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“The aim is to have the continental guidelines in place early next year to reinforce start of trading under the AfCFTA,” he said.

READ: AfCFTA: Improving guidance on standards can make Nigeria a beneficiary – Trade Minister

The guidelines cover a number of new sub-sections to respond to specific gaps in existing rules, including the regulation of small-scale cross-border trade and cross-border trade by fishermen, gender considerations, and treatment of essential workers, including transport and humanitarian workers.

“Once in force, the continental guidelines are expected to ensure a harmonized approach to support smooth and safe trade amid the pandemic, including transit trade between RECs,” said Hussein Hassan, AUC’s Acting Director for Trade and Industry.

READ: Covid-19: First world nations oppose waiving intellectual rights for vaccine development

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What you should know 

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The African Continental Free Trade Area (AfCFTA) is one of the  biggest free-trade agreements in the world right now with a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion

The Federal Government announced that it has ratified Nigeria’s membership to the African Continental Free Trade Area (AfCFTA), ahead of the December 5, 2020 deadline. The agreement goes into effect from the 1st of January 2021.

Nairametrics reported in September that the Nigerian Customs said the facilitation of trade requirements ranging from Pre-Arrival processes to Electronic Payments of duties would be important for the AfCFTA implementation for Nigeria.

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