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FG seeking FDI to develop Special Economic Zones – Trade Minister

The Minister of Trade said that the FG is seeking to increase development into Nigeria’s SEZ with the aid of FDI.

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The Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo stated that the Federal Government seeks to increase development into Nigeria’s Special Economic Zones (SEZ) with the aid of Foreign Direct Investments.

The Minister disclosed this at the Nigerian in Diaspora Commission (NiDCOM) virtual lecture which held on Friday with the Theme: “Post-COVID-19 Economic Resurgence: Targeting Diaspora Investment”

READ: Most Nigerian banks may fail stress tests if economic downturn persists

What you should know 

Nairametrics reported in September that the Minister stated that Nigeria is actively working to attract more foreign direct investments into key industries to meet the demands of the African Continental Free Trade Area (AfCFTA).

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Mr. Adebayo urged stakeholders in the Diaspora at Friday’s event to take advantage of opportunities to invest in Nigerian Special Economic Zones to boost economic productivity.

READ: Nigeria needs to spend $3 trillion in over 30 years to bridge infrastructural gap – Moody’s Report

He added that the Special Economic Zones will be located in Lekki, Enyimba, Funtua, Ibom, Calabar, Bauchi, Kwara, Kano, Benue, Gombe and Ekiti. With investments in sectors including cotton, textiles and garment industry, and backward integration programme to expand local production of sugar, cassava and oil palm processing.

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The Minister added that the SEZ’s have the potential to boost local car assembly production to 480,000 per annum.

READ: AfDB rewards winners of AgriPitch competition with $120,000

He revealed that Nigeria’s trade ministry has plans to establish one agro-processing zone in all regions.

“This is a major lever for promoting wealth creation for a majority of our workforce who are farmers.

“This ministry has accelerated plans to establish at least one agro-processing zone in each senatorial district in Nigeria,” he said.

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READ: Nigeria’s inflation rate jumps to 12.82%, highest in 27 months

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He also added that the pandemic affected foreign investor confidence in Nigeria as supply chains of goods and services were heavily disrupted in Nigeria.

“Commercial activities and movement of goods and services within the country were severely constrained; culminating in job losses and downsizing by various businesses; which may affect their Investment and encourage capital flight if not addressed critically.

READ: Reps to support total reforms in aviation industry through legislation – Speaker

“Also, this impact has been significantly felt across various sectors such as the agribusiness, healthcare, manufacturing, entertainment, tourism and hospitality, transportation and retail sectors amongst others.

“Of course, individuals, households, Micro, Small and Medium Enterprises (MSMEs) and large corporations have not been spared from the effect of the crisis,” he said.

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Nigeria’s inflation rate to moderate by first half of next year

The CBN has assured Nigerians that the country’s inflation rate will begin to moderate by the first half of 2021.

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The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has said that Nigeria’s inflation rate which stood as high as 14.2% in October is expected to begin to moderate by the first half of next year.

This is as the Federal Government had introduced a number of measures to help stabilize the economy, increase productivity and ensure recovery from the devastating impact of the coronavirus pandemic.

This disclosure was made by Emefiele during his presentation at the 55th Annual Bankers Dinner organized by the Chartered Institute of Bankers in Lagos on Friday.

The CBN Governor pointed out that inflationary pressure persisted during the year due to several factors which include disruption to global and domestic supply chains due to Covid-19, increase in the VAT rate, increase in petroleum prices, electricity price adjustments and farmer-herder clashes.

It also includes exchange rate adjustment and flooding that occurred in many parts of our farm belt areas.

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Emefiele in his statement said, ‘’Inflation in October 2020 stood at 14.2%. we, however, expect inflation to begin to moderate by the first half of 2021 as efforts are being made to enable significant cultivation and production of key staple items during the dry season.’

It can be recalled that at the 26th Nigerian Economic Summit, the Minister for Finance, Budget and National Planning, Zainab Ahmed, also said that the country is expected to exit from recession by the first quarter of 2021 with the Federal Government working towards reversing the declining economic trend in the country.

What you should know

The National Bureau of Statistics (NBS) had announced that the country had entered its second recession in 5 years in the third quarter of this year, as the Gross Domestic Product (GDP) fell for the second consecutive quarter.

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According to figures released by the Nigeria Bureau of Statistics (NBS), cumulative Gross Domestic Product (GDP) for the first nine months of 2020, therefore, stood at -2.48%, just as it recorded a -6.10% in the second quarter.

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Business

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.

READ: Finance Bill: No plans to increase tax — FG

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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