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Business

CBN Governor discloses why Nigeria must stop dependence on crude oil

Godwin Emefiele, the CBN Governor has reiterated the reason why Nigeria must cease dependence on crude oil earnings.

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CBN health intervention fund gets new interest rate by March 2012, Nigerian banks’ non-performing loans drop significantly by 41% in 2019, External reserves decline by over 8% in 3 months, Nigeria’s external reserves increase by $1.36 billion in 13 days

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has insisted that Nigeria needs to stop its heavy dependence on crude oil earnings for public revenue and foreign exchange.

This disclosure was made by Emefiele, on Saturday, December 5, 2020, while speaking at the prize presentation ceremony to mark the end of the 2020 CBN Governor’s Golf Cup tournament at the IBB International Golf and Country Club, Abuja.

READ: Naira gains big at black market as CBN targets $2 billion monthly from IMTO

According to a report from News Agency of Nigeria (NAN), the CBN Governor, who was represented by Mr. Edward Adamu, Deputy Governor, Corporate Services, at the apex bank, explained that it is important for the country to harness its other economic potentials to enhance its growth and facilitate the early exit of the economy from the current recession.

READ: FIRS rakes in N4.178 trillion revenue, achieves 98.6% of revenue target

He disclosed that the CBN decided to go into sponsoring numerous sporting events in the country including golf, because sports cannot be left behind while deploying available tools to ensure the development of the country since it attracts foreign exchange.

READ: CBN issues subtle warning explaining how domiciliary accounts should be used

He said, “The Bank’s consistency in promoting the game of golf and other sports in the country has had a remarkable impact on youths and sportsmen and women generally. In particular, the sponsored events have continued to provide platforms for Nigerians to express themselves and launch into the international sporting sphere. At the CBN, we are committed to sustaining people-centred policies.’’

READ: Emefiele tells economists to stop “overdramatizing” analysis that can create Panic

What you should know

  • Economic experts and International Financial organizations like the World Bank and the International Monetary Fund (IMF) have stressed on the need for the country to diversify it sources of revenue and have been critical of its over-dependence on crude oil for its foreign exchange earnings.
  • They argued that this was not sustainable as mono-product economies would not be able to withstand the shock that will be associated with any downturn on such products as is being experienced during this coronavirus period.
  • Diversification and harnessing of other economic potentials will reduce risks associated with being a mono-product economy and lead to growth.
  • It can be recalled that the NBS announced that the country had entered into 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.

READ: Ecobank Transnational Inc. records 11% increase in interest income for Q3 2020

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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Business

Lagos seals 35 building sites after visits to Magodo, Ogudu, Eti-Osa, others

This enforcement of its physical planning laws is being carried out by LASBCA and the LASPPPA on behalf of the state government.

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Sanwo-Olu announces Lekki/Ikoyi toll gate to fully go cashless

The Lagos State Government has commenced the massive enforcement of its physical planning laws to prevent building collapse and illegal developments, as it sealed 35 building sites for various contraventions.

This exercise is being carried out by the Lagos State Building Control Agency (LASBCA) and Lagos State Physical Planning Permit Authority (LASPPPA) on behalf of the state government, with the team visiting several construction sites and buildings in Eti-Osa, Magodo, Ogudu, Gbagada Phase II and several other Local Government Areas.

According to a report from the News Agency of Nigeria (NAN), this disclosure was contained in a statement issued by Mr Gbadeyan Abdulraheem, Spokesman for LASBCA, on Tuesday, March 2, 2021.

He said the enforcement was to prevent haphazard construction from preliminary stages and to stop distressed buildings from causing havoc.

Abdulraheem said the enforcement team was led by Mr Gbolahan Oki, the General Manager of LABSCA. He added that LASBCA sealed a distressed building at No. 33 Oko Baba Street, Ebute Metta and dispersed children using the building as a school.

Oki said 35 sites were sealed for various contraventions including illegal demolition, construction without permit and failure to obtain necessary authorisation from LASBCA and LASPPPA.

Oki said, “The enforcement drive will be a continuous exercise.’’

The general manager appealed to Lagos residents to follow proper channels in processing their construction works and obtaining necessary permits from the state government.

He said the Governor Babajide Sanwo-Olu administration was committed to ensuring that buildings in Lagos state were designed, constructed and maintained to high standards of safety so as to avoid loss of lives and property, through the existing building regulatory system.

Oki said LASPPPA’s role was to ascertain and validate the approvals obtained by the various construction sites visited, as well as monitor layouts and development schemes.

He added that LABSCA, on the other hand, was for the identification of distressed and non-conforming buildings and inspection/certification of various stages of building construction works.

What you should know

  • The Lagos State Government has for several months been on an enforcement drive of the state’s physical planning laws, so as to restore order and prevent the distortion of the ecosystem of the entire state and preserve the environment.
  • This has led to the demolition of illegal structures that either did not get approval or did not conform to the approved building plan or physical planning laws in such areas as Lekki Phase 1, Ikoyi, Magodo, Ogudu GRA, Ajao Estate, Ikeja and so on.

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Business

Nigeria signs pact with Morocco’s OCP Group to aid fertilizer production

The pact is expected to utilize Nigerian gas and Moroccan phosphate to produce 750,000 tons of ammonia and one million tons of phosphate fertilizers.

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Nigeria has signed a pact with OCP Africa to aid the second phase of the Nigerian Presidential Fertilizer Initiative in Morocco. The pact was signed by the Nigerian delegation led by the Minister of State for Petroleum, Timipre Sylva and officials of Nigeria Sovereign Investment Authority (NSIA).

This was disclosed in a statement issued by NSIA and seen by Nairametrics on Tuesday.

This is expected to utilize Nigerian gas and Moroccan phosphate to produce 750,000 tons of ammonia and one million tons of phosphate fertilizers annually by 2025.

To achieve the 750,000 tons target, a number of agreements were signed between OCP Africa, the Fertilizer Producers and Suppliers Association of Nigeria, and the NSIA in order to commit to the second phase of the Nigerian Presidential Fertilizer Initiative.

Similarly, a Shareholders’ Agreement was also signed between OCP Africa and the NSIA for the creation of the Joint Venture Company. This agreement would oversee the development of a versatile industrial platform that will produce ammonia and fertilizers in Nigeria.

It stated, “a Memorandum of Understanding between OCP Africa, the Nigerian National Petroleum Corporation, and NSIA was sealed. The objective of this pact is to evaluate the opportunity of an equity investment by the NNPC in the JVC and for its support on gas.”

What you should know

  • The business visit is a follow up to the industrial project which was officially launched in June 2018 following the success of the first phase of the Presidential Fertilizer Initiative supported by OCP.
  • Through these agreements, the OCP Group has confirmed its commitment to the development of sustainable and inclusive agriculture in Nigeria.
  • The project was first announced during the official visit to Morocco of President Muhammadu Buhari and it is aimed at developing a versatile industrial platform in Nigeria.
  • Recall that in 2016, OCP Group first partnered with the Fertilizer Producers and Suppliers Association of Nigeria under the Presidential Fertilizer Initiative, supported by the Nigerian Sovereign Investment Authority.
  • This collaboration stretched across the entire agricultural value chain, from the introduction of customized fertilizers adapted to local soils and crops to improving the availability of fertilizers in the local market at competitive prices.
  • The partnership also included farmer support initiatives, supply chain development projects along with the strengthening of a close distribution system.
  • These joint efforts have led to the renovation of 13 blending units and packaging for fertilizers and installation by private operators of more than 14 new factories.

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