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Business

AfCFTA: Promoting non-oil revenue will maximize agreement for Nigeria – NESG

NESG says promoting non-oil exports will become imperative if Nigeria is to benefit maximally from AfCFTA.

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Q1 2020, AfCFTA, African Continental Free Trade Area, Africa Free Trade Agreement, Business new, Nairametrics news, AfCFTA: Promoting Non -Oil revenue will maximize agreement for Nigeria - NESG

The Nigeria Economic Summit Group (NESG) has stated that the Federal Government needs to prioritize the promotion of non-oil revenue to maximize the African Continental Free Trade Area (AfCFTA) agreement.

The NESG also added that the Nigerian economy would rebound by 7.5% by 2025.

This was disclosed by the Chairman of the group, Mr. Asue Igohdalo,  during the virtual launch of the NESG report titled  “NESG Macro-Economic outlook 2021,” on Wednesday.

The NESG boss warned that Nigeria cannot approach the agreement casually as doing so will lead to job losses and called for a focus on the non-oil economy.

READ: AfCFTA committee says infrastructure deficit will not inhibit Nigeria’s participation

“Nigeria is at a crossroads and cannot afford the business-as-usual approach which will only lead to further job losses, pull millions of citizens into poverty and worsen an already fragile economy,” he said.

“Promoting non-oil exports will become an imperative if Nigeria is to benefit maximally from AfCFTA.

“Unlike developed countries where economic performance was adversely affected by lockdowns rather than commodity prices, the recovery of the Nigerian economy will hinge not only on easing lockdowns but also on the performance and the health of the global oil market” he added.

READ: FG outlines steps to be taken by businesses to export to AfCFTA countries

Igohdalo added that Nigeria’s economy needs a high, robust, and sustained growth that will deliver a significant reduction in unemployment and poverty.

The NESG said it expects Nigeria’s economy to bounce back by 7.5% by 2025 and expects the Nigerian economy to exit recession with a growth rate of 2.9 %.

“We anticipate that the economy will become strong and resilient in 2025 by posting a 7.5 %  growth.

READ: CBN urges banks to ‘support’ media, aviation industries to avert growing job losses

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“Premised on the assumptions of the rapid increase in the oil price (above 50 dollars per annum) and domestic crude oil production, as well as rapid increase in government capital expenditure, we expect the Nigerian economy to exit recession with a growth rate of 2.9%.

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The NESG Chairman said that Nigeria must prioritize investment for a post Covid recovery which is an important component of aggregate demand and will play a crucial role.

“Nonetheless, the size of the sectors receiving these investments matter.

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“We, therefore, propose a theory of change that highlights four key priority areas that are important in attracting significant investments and, in turn, improving Nigeria’s socio-economic outcomes over the short term to medium term.

“These priority areas are macroeconomic stability, policy and regulatory consistency, sector reforms, and human capital development,” he said.

READ: AfCFTA: Members to complete free trade tariff by July

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What you should know

  • The FG has announced plans to place some of Nigeria’s non-oil economic assets at the forefront of the AfCFTA. Nairametrics reported last month that the Nigeria Commodity Exchange (NCX) is well-positioned to take advantage of the African Continental Free Trade Agreement (AfCFTA), through the implementations of several measures to ensure smooth export operations of Nigerian Commodities including the establishment of a  network of 20 warehouses across major production areas in the six geo-political zones of the country for efficient receipt and storage of agro-commodities to be traded on the exchange.

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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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