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  • N1.6bn Debt: AMCON Seizes Rainoil Assets, Others Accounts

    N1.6bn Debt: AMCON Seizes Rainoil Assets, Others Accounts

    A Federal High Court in Lagos has ordered the freezing of bank accounts and shares belonging to downstream oil and gas company, Rainoil Limited, and 13 others over N1.6bn debt.

     

    The 13 others affected include David Ogwu, Anthony Ezeh, Clara Rotzler, Vincent Otiono, Vincent Sankey, Victoria Alo, Preye Ogriki, Treasure Afolanyan, Chief Nwagwu, Peter Ololo, Gordons Ejikeme, Joe Idudu and Falcon Securities Ltd.

     

    The Asset Management Company of Nigeria said this in a statement titled, ‘AMCON Seize Assets of Deap Capital Directors over N1.6bn Debt’ on Wednesday, adding that the order to seize the assets was given by Justice C.J. Aneke

     

    AMCON said following the order, it took effective possession of the seven properties as listed by the court through its Debt Recovery Agent – Etonye & Etonye.

     

    The properties include Plots 14, 15, 16 and 17 in Block 1B, Isolo-Ishaga Area, Mushin, Lagos State; Mile 3 Old Isheri Road, Ikeja, Lagos State; Plot 13, Block 65 Magodo Residential Scheme, Lagos State; No. 73, Femi Kila Street, Okota, Isolo, Lagos State; Plot 22, Block 91, Lekki Peninsula Residential Scheme, Lekki Area, Lagos; and Government Land Allocation, Lekki Peninsula Scheme II.

     

    The statement reads partly, “The court also ordered the freezing of the bank accounts and shares of the company’s directors namely; David Ogwu, Anthony Ezeh, Clara Rotzler, Vincent Otiono, Vincent Sankey, Victoria Alo, Hon. Preye Ogriki, Treasure Afolanyan, Chief Nwagwu, Peter Ololo, Gordons Ejikeme, Joe Idudu, Falcon Securities Limited and Rainoil Limited.”

     

    AMCON spokesperson, Jude Nwauzor confirmed that all the property as listed by the court order had been taken over by AMCON.

     

    Recall that AMCON, which is a debt recovery agency of the Federal Government, in July 2020, seized properties belonging to the chief promoter of the company, Mr Emmanuel Ugboh, after offering him concessions and exploring all avenues to resolve the debt harmoniously to no avail.

     

    However, due to the lack of adequate collateral, AMCON had to commence asset tracing on the company’s directors, an exercise, which revealed the seven properties the corporation seized.

     

    AMCON purchased the Non-Performing Loan of Deap Capital Management & Trust Plc. during the first phase of Eligible Bank Assets purchases from Zenith Bank and FCMB in 2011

     

    When contacted, Rainoil Limited denied any involvement in the ongoing asset recovery case between AMCON and the directors of Deap Capital Management and Trust Plc.

     

    “There was neither order of the Federal High Court to freeze any accounts of the company nor was the company listed in the court ruling. We urge the general public to disregard the news in circulation,” it said in a statement.

  • Businesses Groan As Diesel Price Soars To N250/Litre

    Businesses Groan As Diesel Price Soars To N250/Litre

    This is not the best of times for most firms who depend largely on Automotive Gas Oil, also known as diesel to power their generating sets as its price has risen to a high of N250 per litre.

     

    Visits to some filling stations in Lagos show that price of the product had been increased to N250 per litre, while many others sold it at between N220-N245.

     

    Northwest Petroleum along the Oshodi-Apapa road increased the pump price of diesel to N250 per litre; AP (Ardova Plc), along Airport road, Ikeja, N248; and Oando, along Acme Road, N240.

     

    The National Bureau of Statistics, in its AGO price report on Tuesday, said the average price paid by consumers for diesel increased by 0.22 per cent to N224.86 per litre in January 2021 from to N224.37 in December 2020.

     

    It said states with the highest average price of diesel were Adamawa (N268.33), Zamfara (N262.78) and Kebbi (N257.50).

     

    “States with the lowest average price of diesel were Osun (N194.60), Anambra (N195.83) and Enugu (N198.24),” the NBS added.

     

    Crude oil price accounts for a large chunk of the final cost of petroleum products, and the deregulation of the downstream oil sector by the Federal Government means that the pump prices of the products will reflect changes in the international oil market.

     

    The international oil benchmark, Brent crude, has risen by more than 25 per cent this year from the $51.22 per barrel at which it closed last year. It rose to $65.25 per barrel as of 6:30pm Nigerian time on Tuesday.

     

    Diesel is mostly used by businesses to power their generators amid a lack of reliable power supply from the national grid.

     

    The President, Association of Small Business Owners of Nigeria, Mr Femi Egbesola, lamented that the recent increase in the price of diesel was taking a heavy toll on businesses, especially Small and Medium Enterprises.

     

    “The cost of diesel and raw material is giving us a nightmare. The price of diesel has been skyrocketing in a way that creates fear in particularly manufacturers,” he told our correspondent on Tuesday.

     

    According to him, it is difficult for businesses to factor all the increase in diesel price in their final product prices.

     

    Egbesola said, “That is why a lot of companies are downsizing and are making sure that they only produce products that they are so sure will sell in the market.

     

    “Many companies have reduced their product lines significantly just to be able to cope. And that is not good for us because by the time this goes on, unemployment will increase. I believe government should be able to do something about this.”

     

    He said although the downstream petroleum sector had been deregulated, there should be checks and balances.

     

    Egbesola said many small businesses’ savings had been eroded already because ‘we keep spending our savings to make sure we don’t close shop’.

     

    He said, “If things continue this way, there is no way we are not going to close shop. We are still struggling with the recent increase in electricity tariff.

     

    “Many small businesses still depend so much on diesel generators because there is no alternative power supply. It is only the big players that have the facilities to use gas. And we cannot use solar installation because it is very expensive.”

     

    Nigeria, Africa’s largest oil producer, relies largely on importation for petrol and other refined products as its refineries have remained in a state of disrepair for many years.

  • Telecoms Sector, Others Take Nigeria out of Recession as Sector Boosts GDP by 12.45% -Danbatta

    Telecoms Sector, Others Take Nigeria out of Recession as Sector Boosts GDP by 12.45% -Danbatta

    The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Professor Umaru Danbatta, has reiterated that the nation’s telecommunications industry is one of the sectors whose performance lifted the country out of recession in the fourth quarter of 2020, contributing 12.45 percent to the country’s Gross Domestic Product (GDP).

     

    According to the latest data released by the National Bureau of Statistics (NBS), telecommunications & Information Services under Information and Communication grew by 17.64 per cent in Q4 2020 from 17.36 per cent in Q3 2020 and 10.26 per cent in Q4 2019.

     

    In the latest NBS report, agriculture, industries, and services sector, under which telecommunications is categorised, contributed 26.95 per cent, 18.77 per cent, and 54.28 per cent respectively. This is a pointer to the fact that telecommunications, trade, services and crop production are the main drivers of Nigeria’s exit from recession.

     

    In specific terms, NBS report showed that largest sub-sectors in Q4 2020 are crop production at 3.68 per cent, crude petroleum and natural gas at 8.2 percent, trade at 14.9 per cent, telecommunications & information services at 12.45 per cent, and real estate at 5.7 per cent, the report says.

     

    In a statement signed by NCC’s Director, Public Affairs, Dr. Ikechukwu Adinde, the telecommunications sector has, in the last five years been a major driver of the digital economy agenda of the Federal Government, as it has continued to provide the needed digital sinews that support the economy, especially during the COVID-19 pandemic and its attendant restriction period.

     

    “Since the outbreak of the pandemic, government institutions, businesses and individuals have relied heavily on telecoms services to carry out their daily operations and official routines. In response to the increased demand, the Commission put a number of regulatory measures in place to ensure seamless access by Nigerians to telecommunication services and protect against any adverse impact on the quality of service enjoyed by consumers.

     

    “The steady growth of the telecoms sector over the years with its pervasive positive impact on all other sectors of the economy in terms of increased automation of processes and digital transformation in service delivery has been remarkable. The growth trend since 2015 has reawakened hope that the economic diversification dreams of the country may finally be a reality as the sector continues to energize significant economic activities in the services sector of the economy.

     

    “Through effective regulatory regime emplaced by the Commission, under the leadership of its Executive Vice Chairman (EVC), Prof. Umar Garba Danbatta, telecoms investment grew from about $38 billion in 2015 to over $70 billion currently.”

     

    According to NCC, broadband penetration also increased from 6 per cent in 2015 to 45.02 per cent at December, 2020, indicating that 85.9 million Nigerians are now connected on 3G and 4G networks which provide enhanced high-speed Internet that has continued to boost efficiency and increase productivity across the economic spectrum.

     

    Recent statistics also indicate that between 2015 and December, 2020, active voice subscriptions have increased from 151 million to 204.6 million, with teledensity standing at 107.18 per cent. Basic active internet subscriptions grew from 90 million to 154.3 million during the period.

     

    The Commission is committed to its culture of quality regulation of the telecommunications industry that ensures a stable and robust sector which drives the digital economy agenda of the Federal Government and ultimately leads in the growth of the country’s GDP.

     

  • Atiku Glad With FG’s Decision to Privatise Refineries, Other Assets

    Atiku Glad With FG’s Decision to Privatise Refineries, Other Assets

    Former Vice President Atiku Abubakar has backed the decision by the Federal Government to privatise some of its assets.

     

    The assets include the country’s refineries, the International Conference Centre in Abuja, Yola Electricity Distribution Company, Zungeru Hydro Power, Tafawa Belewa Square, among others.

     

    A total of N493.4bn is expected to be earned from the sale of the assets which were classified under energy assets, industries and communication department, as well as development institutions and natural resources.

     

    In a statement titled ‘Privatisation of Refineries and Other Assets: Better Late Than Never,’ Atiku called for transparency in the process of privatising the assets.

     

    He expressed delight that the privatisation of public assets which he once championed and was scorned for by the All Progressives Congress-led administration is now being embraced by the same administration.

     

    He said, “For decades, I have championed the privatisation of our economy and full deregulation of our oil and gas sector, amongst other sectors, for greater service delivery and efficiency.

     

    “As chairman of the National Council on Privatisation, I advanced these policies which saw our economy achieve 6% GDP growth and created jobs for the masses of our people and amass the national wealth that enabled us exit the debt trap, and secure our financial independence.

     

    “Even though my ideas were scorned by the All Progressives Congress-led Federal Government over the years, I am nevertheless most fulfilled that an administration that once failed to see the wisdom in these sound economic policies, is now facing reality and has now embraced reason, by announcing the privatisation of our refineries and other assets, which have not always prospered under public management.

    “It is always better late than never. And I commend the Federal Government for coming on board. I urge that the privatisation process be as transparent as possible, as that is the only way to ensure that Nigeria reaps the greatest economic benefits from this policy.

     

    “It was never about me. My interest has always been the peace, prosperity and progress of Nigeria, and I am happy to share these ideas, and others, with the government of the day, for the betterment of our nation and its people.”

  • Again, Nigeria Exits Recession

    Again, Nigeria Exits Recession

    Nigeria’s Gross Domestic Product (GDP) grew by 0.11% (year-on-year) in real terms in the fourth quarter of 2020, representing the first positive quarterly growth in the last three quarters.

     

    This is contained in the Nigerian Gross Domestic Product report, published by the National Bureau of Statistics (NBS).

     

    According to the report, the growth was largely driven by positive growth recorded in the information and communication sector (15.9%) and agriculture (3.42%).

     

    Highlights

    The oil sector plunged by 19.76% (year-on-year) in real terms as against a contraction of 13.89% recorded in Q3 2020.

     

    The non-oil sector on the other hand grew by 1.69% in real terms, an improvement compared to the contraction of 2.51% recorded in Q3 2020. It however was slower than 2.26% recorded in the corresponding period of 2019.

    The service sector contributed 54.28% to the GDP in Q4 2020, followed by agriculture, which contributed 26.95%, and industries with 18.77%.

     

    Non-oil accounted for 94.13% while the oil sector accounted for 5.87% of the total GDP for Q4 2020.

     

    Oil sector

    The oil sector contracted by 19.76% (year-on-year) in Q4 2020, a downturn compared to a similar contraction of 13.89% recorded in the previous quarter (Q3 2020).

     

    It also represents a decline of 26.12% points when compared to a positive growth of 6.36% recorded in the corresponding period of 2019.

     

    The sector’s contribution to Nigeria’s GDP also reduced to 5.87% in Q4 2020 from 8.73% recorded in Q3 2020 and 7.32% in Q4 2019.

     

    In Q4 2020, average daily oil production of 1.56 million barrels per day (mbpd) was recorded, representing a 6.59% and 22% declines when compared to 1.67mbpd and 2mbpd recorded in Q3 2020 and Q4 2019 respectively.

    The decline in the oil sector activity can be attributed to the crash in global crude oil prices, which was triggered by the oil price war between Saudi Arabia and Russia.

     

    Non-oil Sector

    The non-oil sector grew by 1.69% in real terms in Q4 2020, slower than the 2.26% recorded in the corresponding quarter of 2019, but better than the 2.51% negative growth rate recorded in the preceding quarter.

     

    Growth in the sector was largely driven by Information and Communication (Telecommunications & Broadcasting).

     

    Other drivers were Agriculture (Crop Production), Real Estate, Manufacturing (Food, Beverage & Tobacco), Mining and Quarrying (Quarrying and other Minerals), and Construction.

     

    In real terms, the Non-Oil sector contributed 94.13% to the nation’s GDP in the fourth quarter of 2020, higher than the share recorded in the fourth quarter of 2019 (92.68%) and the third quarter of 2020 (91.27%).

     

    Key sectors’ performance

    The agricultural sector, in the fourth quarter of 2020, grew by 3.42% (year-on-year) in real terms, an increase by 1.11% points from the corresponding period of 2019, and an increase of 2.03% points from the preceding quarter which recorded a growth rate of 1.39%.

     

    The sector also contributed 26.95% to the overall GDP in real terms in Q4 2020, higher than the contribution in Q4 2019 but lower than Q3 2020 which stood at 26.09% and 30.77% respectively.

     

    Real GDP growth in the manufacturing sector in the quarter under review stood at –1.51% (year on year), lower than the corresponding period of 2019 and the preceding quarter by 2.75% points and 0.01% points respectively.

     

    The real contribution to GDP in Q4 2020 was 8.60%, lower than the 8.74% recorded in the fourth quarter of 2019 and 8.93% recorded in Q3 2020.

     

    In real terms, the Trade sector contracted by 3.2% (year-on-year) in the fourth quarter of 2020, which was 2.62% points lower than the rate recorded in Q4 2019, and 8.92% points higher than in the preceding quarter.

     

    Trade’s contribution to GDP was 15.46%, which is lower than the 15.99% it represented in the corresponding period of 2019, but higher than the 13.88% recorded in the previous quarter.

     

    Information and communication recorded a growth rate of 14.95% in real terms, an increase of 6.45% points over the corresponding period of 2019.

     

    The sector contributed 15.06% to aggregate real GDP in Q4 2020, higher than the same quarter of the previous year in which it represented 13.12% and higher than the preceding quarter, in which it represented 13.47%.

     

    What this means

    The positive growth in real GDP indicates that the Nigerian economy has recovered from the pandemic-induced recession which disrupted economic activities in most part of 2020. The country will look to post capitalise on this to boost the economy further in subsequent quarters.

  • How Banks Are Turning Female Marketers To Sexual Slaves – Senator

    How Banks Are Turning Female Marketers To Sexual Slaves – Senator

    The Senate, on Thursday, considered a bill seeking to stop employers in the private and public sectors from engaging employable Nigerian graduates as casual workers.

     

    The Prohibition of Casualisation Bill 2020 was sponsored by Senator Ayo Akinyelure.

     

    Akinyelure said casualisation of Nigerian graduates in the Nigerian labour market had become a subject of great concern.

     

    He said more workers continued to groan under this immoral strategy of cutting cost by employers rendering them inferior to their counterpart in other countries of the world.

     

    He said,  “Statistics from the Nigeria Labour Congress shows that many workers in the telecommunications, oil and gas sectors are engaged as casual labourers by employers of labours.

     

    “Other sectors with thousands of casual labourers include mining, steel, banking and insurance.”

     

    Akinyelure while citing the banking industry as a hub for casualisation, blamed banks for turning female marketers into harlots and sexual slaves in a desperate attempt by them to keep their jobs and meet unrealistic deposit targets.

     

    He said, ‘In the banking and insurance industry, for instance, many young graduates particularly females are employed as marketers and given unrealistic customer deposit targets running into millions.

     

    “They are hired and fired at will when such unrealistic targets are not met.

     

    “The female among them who are desperate in keeping their jobs turn to harlotry and sex slavery.

     

    “They, move from one office to the other looking for invisible customers who have large funds to enable them meet their targets.

     

    “It is high time this evil and devilish act is stopped.”

     

    Senator Biodun Olujimi said, “Our girls have been turned into what we cannot imagine.

     

    “Most of them have been asked to look for funds, and when they come to us, I always tell them, I do not even have the funds to eat; how can I have funds to keep with you in the bank?

     

    “They will never be promoted if they don’t bring in such funds, and this is a banking industry that is privately owned, yes, but has made so much profit, and from the profit they could at least take the few that they can manage properly, rather than take a lot that they will be giving pittance.”

     

    The lawmaker harped on the need to have a legal framework to ensure that casualisation did not exist.

     

    The Senate President, Ahmad Lawan, in his remark charged the Committee on Employment, Labour and Productivity to strike a balance in the bill to ensure that casual workers in the country were not made victims of layoffs.

     

    After scaling second reading, the bill was referred to the Committee on Employment, Labour and Productivity to report back within four weeks.

     

  • No Plans to Hike Petrol Pump Price in February, NNPC Assures Nigerians

    No Plans to Hike Petrol Pump Price in February, NNPC Assures Nigerians

    The Nigerian National Petroleum Corporation (NNPC) has assured organised labour and Nigerians that there is no plan to increase the price of Premium Motor Spirit (PMS) otherwise known as petrol in the month of February.

     

    This follows the reported rumour of plans to increase the price of petrol due to the continuous increase in the global price of crude oil and the reported hoarding of the product by some depot owners and marketers.

     

    The assurance was contained in a statement issued by the NNPC and signed by the Group General Manager, Group Public Affairs Division, Dr Kennie Obateru, on Thursday in Abuja.

     

    Obateru, in the statement, said, “In spite of the rise in the price of crude oil in the international market, NNPC has ruled out any increment in the ex-depot price of PMS in February 2021.’’

     

    Obateru explained that the decision was to allow ongoing engagements with organised labour and other stakeholders on an acceptable framework that would not expose the ordinary Nigerian to any hardship.

     

    While giving assurances that the corporation had enough stockpile of petrol to keep the nation well supplied for about 40 days, he urged petroleum products marketers not to engage in the hoarding of PMS in order not to create artificial scarcity and unnecessary hardship for Nigerians.

     

    Obateru also called on relevant regulatory authorities to step up monitoring of the activities of marketers with a view to sanctioning those involved in products hoarding or arbitrary increase of pump price.

     

    Note:

    Recall that the Minister of State for Petroleum Resources, Chief Timipre Sylva, had in March 2020 announced the deregulation of the downstream sector of the oil industry and the subsequent removal of the petrol subsidy.

     

    He said that subsequently, the prices of petroleum products would be determined by prevailing market forces.

     

    With the increase in the oil price to about $65 per barrel, oil marketers and other stakeholders have insisted that the current petrol price is not sustainable unless the Federal Government would return back to the subsidy regime, which has no provision in the 2021 budget.

     

    The ex-depot price is the price at which oil marketers buy products from the depot and the price determines the price at which they sell to motorists at their various petrol stations.

     

  • WTO DG: Lagos NIPR Congratulates Okonjo-Iweala, Says Her Appointment Is For The Good Of The World

    WTO DG: Lagos NIPR Congratulates Okonjo-Iweala, Says Her Appointment Is For The Good Of The World

    The Lagos State Chapter of the Nigerian Institute of Public Relations (NIPR) has commended and celebrated the decision of the Board of the World Trade Organisation appointing Nigeria’s Dr. Ngozi Okonjo-Iweala as its Director General.

     

    In celebrating her appointment, the Chapter said it is pleased that a person of impeccable character with an impressive career trajectory will pilot the affairs of global trade from March 1, 2021.

     

    Speaking on the heels of the news of her appointment, an elated Chairman of the Lagos NIPR, Segun Mcmedal said, “We feel a personal sense of victory at the Institute that the best candidate emerged. Recall that at the early stage of the race, Dr. Okonjo-Iweala had mentioned that she didn’t have the resources to hire a PR firm to handle her aspiration to the exalted office.

     

    “Following this, she received a lot of PR support on the account of her impeccable record and achievements in the academics and public service which has earned her immense goodwill. A lot of Nigerians joined the fray in promoting one of our own. In essence, many people became her publicists and strategists. It was a clear case of earned PR.”

     

    He added that, “Dr. Okonjo-Iweala has once again put Nigeria on the world stage as has become her norm. She is the best candidate for the job. The Nigerian Institute of Public Relations have waited for this moment with bated breath because of the many hurdles she had to surmount before reaching the finish line. Her appointment is for the good of the world as she brings a wealth of experience, network and goodwill to the office’.

     

    Dr. Okonjo-Iweala begins her tenure as the DG of the World Trade Organisation on March 1, 2021 as the first African, first female and first Nigerian to attain the feat. It is a good example of shattering the glass ceiling. It is a celebration of the can-do spirit and victory for all persons of good will.

     

    As she joins the league of other Nigerians who are positively projecting Nigeria’s image on the global scene, the Institute wishes her outstanding success in her new role and stand ready to assist whenever it is called upon.

     

    The Lagos NIPR promotes gender equality and women empowerment as seen in the annual Strong Tender & Empowered Women’s Summit (STEWS): a high-profile talk-shop articulating and aggregating a collective voice to build momentum for gender equality, women empowerment, and effective implementation of the new Sustainable Development Goals.

  • Marketers Raise Petrol Price To N170 As Depots Suffer Shortage

    Marketers Raise Petrol Price To N170 As Depots Suffer Shortage

    Fuel marketers have started adjusting their petrol pump prices amid the supply shortage facing private depots in Apapa.

     

    Investigations showed that some filling stations in Lagos and Ogun states increased the pump price of petrol to N170 per litre on Tuesday from N162 per litre.

     

    Some of the stations were Capital Oil and Gas, Fatgbems and Amo Oil, all along the Lagos-Ibadan Expressway. Another station, Enyo Retail, adjusted its pump price to N165 per litre from N162.

     

    The National Operation Controller, Independent Petroleum Marketers Association of Nigeria, Mr Mike Osatuyi, told our correspondent that members of his association had to increase the pump price because they bought the product at N160-N161 from depot owners.

     

    Last Thursday, there were reports that IPMAN members disrupted loading of petroleum products at private depots in Apapa on Wednesday as well as Ibadan, Ejigbo and Mosimi depots belonging to the Nigerian National Petroleum Corporation.

     

    They picketed the facilities to protest their inability to get products due to a new payment method introduced by the Petroleum Products Marketing Company, a subsidiary of the NNPC.

     

    “My members buying from DAPPMAN members are buying at N160-N161, and they will have to add their transportation costs to it. So, at what price do you want them to sell? Even that N170 is still very cheap,” Osatuyi said on Tuesday.

     

    He said the PPMC had told marketers to register under the new payment method, called ‘PPMC Customer Express’, before they could buy products from it.

     

     

    “Right now, PPMC has said that the era of ATP (Authority to Pay) has gone. It means that payment has to be made online. So, my members are now in the process of doing that, and without doing it, we cannot lift products,” he added.

     

    The NNPC, which has been the sole importer of petrol into the country in recent years, is still being relied upon by depots and marketers for the supply of the product despite the deregulation of the downstream petroleum sector.

     

    Our correspondent also gathered that many private depots in Apapa, Lagos, from where many marketers get petroleum products for distribution to other states, were running dry of petrol due to supply shortage.

     

    When contacted, the Group General Manager, Group Public Affairs Division of the Corporation, Dr Kennie Obateru, told our correspondent that there was no shortage of petrol supply from the NNPC.

     

    He said, “We have 1.7 billion litres of product as at today, which will give us about 40 days’ sufficiency. Even some more vessels are on the programme.

     

    “And we have not increased our ex-depot price; even though we know some of them (marketers) are sort of slowing down because they are expecting that we will react to the crude oil price increase. But for now, we haven’t done that.”

     

    One of the major private depots told marketers to stop payment for the petrol because of the supply shortage and the uncertainty over when it would get the product.

     

    A top official of a Lagos-based oil marketing company told our correspondent on condition of anonymity that there had been erratic supply of petrol to private depots in Apapa since last week.

  • How Nigeria Can Benefit From Okonjo-Iweala-Led WTO – LCCI

    How Nigeria Can Benefit From Okonjo-Iweala-Led WTO – LCCI

    The Lagos Chamber of Commerce and Industry has highlighted steps Nigeria needs to take in order to fully take advantage of the opportunities offered by the World Trade Organisation under the leadership of Dr Ngozi Okonjo-Iweala.

     

    The LCCI, in a statement on Monday, felicitated with Nigeria on the appointment of Okonjo-Iweala as the Director-General of WTO.

     

    The Director-General, LCCI, Dr Muda Yusuf, said, “While the emergence of Dr Okonjo-Iweala as the new WTO Director-General is very gratifying and calls for celebration, there is a need to manage expectations around the outcomes for the Nigerian economy, given the numerous productivity and competitiveness issues the country is grappling with.

     

    “Ultimately, these are the factors that would determine the benefits that would accrue to the economy from global trade.”

     

    According to him, Nigeria needs to build capacity for international competitiveness of its products and services so as to benefit from the WTO.

     

    He said, “Also imperative is the need to address trade facilitation issues, especially around port processes, ports infrastructures, international trade documentation, foreign exchange policies, trade policies and industrial policies. We need to promote local value addition and backward integration to strengthen competitiveness of our domestic industries.

     

    “We must undertake reforms of our tariff policy in accordance with the principles of comparative advantage, which would enable the country to optimise opportunities in the global trade arena and enhance the citizens’ welfare.”

     

    According to Yusuf, it is critical to develop an African Continental Free Trade Area strategy that would enable the country to leverage trade opportunities both continentally and globally.

     

    “There is a need to improve on our strategy in managing the coronavirus pandemic ranging from ensuring compliance to safety protocols to vaccine procurement and distribution,” he said.

     

    The LCCI DG said Okonjo-Iweala’s emergence came at a time when the global trading system was faced with numerous challenges, including supply chain disruptions precipitated by the coronavirus pandemic, rising protectionism and unilateralism, growing economic nationalism, and imposition of trade restrictions covering substantial amount of international trade, among others.

     

    “Africa has peculiar challenges in the global trade arena. The continent is deeply integrated into the global supply chain and this underscores the low participation level of African economies in international trade,” he said.

     

    According to him, it is very pertinent for African economies to build capacity within the continent in order to take advantage of the opportunities in global trade.