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Tag: GDP

  • We’ll boost Nigeria’s GDP via biotechnology – FG

    The Federal Government on Tuesday announced plans to improve the country’s Gross Domestic Products (GDP) via biotechnology (the use of biological processes in industrial production).

    Mr Abayomi Oguntade, the Director, Bio-resources Technology Department, in the Federal Ministry of Science and Technology, made this known in an interview with the newsmen in Abuja.

    Oguntade stated that government is making concerted efforts to ensure that biotechnology becomes instrumental to improving the GDP as a step toward achieving vision 20:2020.

    Early examples of biotechnology include the making of cheese, wine, and beer, while later developments include the production of vaccine and insulin.

    The director said that the use of biotechnology would boost food, crop, and animal production as well as, improve industry, health and the environment.

    “Biotechnology has applications in four major industrial areas, including health care, crop production and agriculture, non-food (industrial) uses of crops and other products (e.g. biodegradable plastics, vegetable oil, bio-fuels), and environmental uses.

    “Applications of biotechnology include direct use of organisms for the manufacture of organic products (examples include beer and milk products) and using naturally present bacteria by the mining industry in bio-leaching.

    “ Biotechnology is also used to recycle, treat waste, clean-up sites contaminated by industrial activities (bioremediation), and also to produce biological weapons,” he said.

    According to Oguntade, Nigeria can benefit immensely from the use of modern biotechnology just like countries such as South Africa, India, Kenya, Brazil and Burkina Faso have.

    He said that Nigeria designed a biotechnology policy in 2001 with the aim of promoting biotechnology activities and taking advantage of the benefits that would materialize from such activities.

  • ERGP: Nigeria can achieve GDP growth target in 2018 – Udoma

    The Minister of Budget and National Planning, Sen. Udoma Udo Udoma says the 4.8 per cent Gross Domestic Product (GDP) growth targeted in Economic Recovery and Growth Plan (ERGP) for 2018 is achievable.

    Udoma said this in a statement issued by his Media Adviser, Mr James Akpandem on Sunday in Abuja.

    The minister gave the assurance at the Consultative Forum with Civil Society Organisations (CSOs), Private Sector Operators (PSO) and other members of the public in Lagos.

    The aim of the forum was to present draft proposals for the Medium Term Fiscal Framework/Fiscal Strategy Paper (MTFF/FSP) 2018-2020 to the stakeholders for suggestions and inputs.

    The inputs from the stakeholders would be considered for inclusion in the final Medium Term Expenditure Framework (MTEF), which would serve as the basis for the 2018 Budget.

    Udoma said it may be very challenging to achieve the target GDP growth rate of 4.8 per cent set out in the ERGP for 2018.

    “It will be achieved if we are able to attract a high enough amount of private sector investment to drive economic growth.

    “It is for this reason that government is putting a lot of effort and emphasis on making it easier for business to be transacted in the country.

    “The good news is that there are presently many positive indicators in many sectors of the economy, which shows that we are moving in the right direction.

    “They are indicators that we are moving in right direction and that the strategies set out in the ERGP are the right strategies,’’ he said.

    The ERGP projects that Nigeria will make significant progress to achieve structural economic change with a more diversified and inclusive economy in five key areas by 2020.

    The key areas are stable macro-economic environment, achieve agriculture and food security, ensure energy sufficiency in power and petroleum products, and drive industrialisation focusing on Small and Medium Enterprises (SMEs) as well as improve transportation infrastructure.

    Udoma said all budgets prepared within the Plan period must be drawn from, and align with the provisions of the ERGP.

    Addressing concerns raised over the level of borrowing, the minister said that the issue was not so much of a debt problem, but more of a revenue problem.

    According to him, even with our present levels of borrowings, the country’s fiscal deficit is still well within the three per cent (3%) limit prescribed by the Fiscal Responsibility Act.

    Udoma said that government would continue to monitor the deficit level to ensure that it remains within the three per cent threshold.

    “If we have enough revenue coming in, we can easily offset the debts.

    “The problem is that we are not getting as much revenue as we require and therefore, have to borrow to make up the shortfall required to fund the necessary infrastructure that will help us make our economy grow.

    “That is why we have had to borrow, but our debt level is sustainable,’’ he said.

    The minister, however, told stakeholders that the government had been working hard to increase its non-oil revenues, adding that it was not still sufficient.

    For instance, he said the revenue from tax was very low considering the size of our economy and that it was about the lowest compared to other countries in Africa.

    “Our tax to GDP ratio is 6 per cen, whereas the average in Africa is about 16 per cent.

    “So we need to increase our revenues and government is working hard to increase revenues so as to be able to fund our expenditure without having to rely too heavily on borrowing,’’ the minister said.

     

     

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  • Nigeria lost $15bn of its GDP to road accidents in 2015 – WHO

    Nigeria lost $15bn of its GDP to road accidents in 2015 – WHO

    Nigeria lost a total of $15billion (about three percent) of its Gross Domestic Products to road accidents in 2015, the World Health Organisation, WHO, Global Road Safety report has said.

    Disclosing this at the just concluded “Establishment, Management and Operations of Truck Transit Parks”, British former Secretary for Transport and Aviation, Dr. Paul Clark said that Truck Parks can help in reducing accidents, giving an economic boost to the country and saving lives and life changing injuries.

    Clark also said that loss of cargoes during transit is an economic loss directly to the owners, but also to the economy as a whole.

    He explained that transport observers have pointed out that millions of Naira every year is lost through pilfering and attack on drivers where lorries are parked in unsecured locations.

    According to him, the situation is further s compounded by the wrong type of Lorries carrying cargoes, often with no latches thereby leading to containers falling off causing deaths and injuries.

    He opined that such actions should be considered illegal by law enforcement agencies.

    He said “Millions of Naira lost during transit whether by accident and/or lack of inadequate insurance policies or parked in unsecured locations can be reduced significantly by the provision of safe and secure parking locations especially helping to avoid armed robberies that are also a constant threat to the haulage industry.

    “According to the report, it was estimated that, ‘not less than 15,000 job opportunities will be created across 8 States’.

    It Transit Truck park facilities project are properly implemented, it would easily create more than 25,000 jobs.

    “If more States key in, the extrapolated figures for employment will be significantly larger.

    “Therefore, the economic case for the implementation of this project cannot be over emphasised.

    “But this initiative extends beyond Nigeria’s borders. This is not an isolated project in itself solving Nigeria road transport and truckers problems.

    “It is part of the African Union strategic agenda on trade facilitation within regions and an important element of ECOWAS priority project to fast track inter and intraregional trade through the free movement of people, goods, services and capital.

    It is worth noting that of the proposed 8Trans African Highways crisscrossing the African continent, 5 of them is linked with Nigeria”.

    The Trans African Highways, TAH2 includes Algiers-Kano-Lagos, TAH3 is the Tripoli-Ndjamina by Nigeria and the TAH5 is the Dakar-Kano by Nigeria and TAH7 runs across 15 African countries.

  • Etisalat Nigeria: Why subscribers need not panic

    Ongoing discussions to ensure the crisis rocking Etisalat Nigeria is yielding some positive results meaning subscribers on the Etisalat network need not panic, but there is more.

    In response to stakeholder enquiries regarding the current position on Etisalat Nigeria, the Nigerian Communications Commission (NCC) recently reinstates that subscribers on the network are assured of quality of service.

    In a press release signed by Director of Public Affairs, Mr. Tony Ojobo, the Commission noted that Etisalat and its creditors have successfully reached an amicable resolution of key issues pertaining to its indebtedness, and that a smooth transitional process is currently ongoing on mutually agreed terms.

    “The Commission is confident that the amicable resolutions reached by the parties will further strengthen Etisalat’s capacity to continue to provide services to its over 20 million customers and to fulfil its obligations to its other stakeholders as a going concern, regardless of any changes that the parties have agreed to Etisalat’s Ownership, its board and/or its executive management,” said Ojobo.

    The telecoms regulator assured that, empowered by the Nigerian Communications Act 2003, it will continue to work assiduously with all industry stakeholders to ensure that the Nigerian telecommunications industry remains capable of playing its critical role as a key driver of national socio-economic development.

    “NCC is mindful of the need to sustain the industry’s significant contribution to National GDP, employment and infrastructure roll-out at all times,” the Commission spokesman said.

    He said the Commission’s intervention in the Etisalat crisis was informed by these considerations, and that the Commission is pleased at the success of the ongoing process.

    NCC, however, acknowledged the pivotal role of the Central Bank of Nigeria (CBN) in resolving the matter in a manner that protects the interests of all stakeholders – especially the creditor banks and Etisalat’s over 20 million customers.

     

  • Invest more in agriculture, economist urges FG

    Dr Aminu Usman has advised the Federal Government to invest more in agriculture during the current rainy season and support farmers with inputs to boost food production.

    Usman, an economist at the Kaduna State University, gave the advice in an interview with the News Agency of Nigeria on Tuesday in Abuja.

    He said that agriculture should be given priority because of its huge employment capacity and the onset of the rainy season.

    “The government should ensure adequate supply of fertilisers and other critical inputs to ensure massive food production.

    “This will eventually bring down the consumer prices of food commodities, which is the major source of inflation in the country,’’ he said.

    Besides, Usman said that increased investment in agriculture would boost Nigeria’s Gross Domestic Product (GDP) and aid efforts to bring the country out of recession.

    The recent GDP released by the National Bureau of Statistics stated that the nation’s GDP contracted by -0.52 per cent (year-on-year) in real terms in the first quarter of 2017.

    The bureau stated that it represented the fifth consecutive quarter of contraction since first quarter of 2016.

    “Looking at the figures, one thing that comes to mind is that we are still in recession but there is likelihood that we will soon be out of it,’’ Usman said.

    The don, however, said that the modest progress recorded was in the relative stability in the crude oil price and suspension of the criminal disruption of the oil production in the Niger Delta area.

    Usman urged the Federal Government to continue to engage the Niger Delta militants in serious negotiations so as to sustain the peace in the area and boost the country’s economic growth.

    “The government should continue to engage the group to stop the destructive activities since the country has no influence on the international crude oil prices.

    “It then means that the focus should be on domestic economic policies that will ensure continuous growth in all the other sectors of the economy.

    “For instance, the GDP report shows that oil contributes only a paltry 8.90 per cent to the GDP, as against the non-oil sector’s contribution of 91.10 per cent,’’ he said.

    According to him, the GDP report is commendable and encouraging but a lot needs to be done to translate this improvement to improved living conditions of the citizens.

    Usman said that the actions and utterances of the people indicated that they were feeling the pains of the recession now more than ever.

    “This, in effect, means the modest growth recorded did not translate into an improvement of the living conditions of the people.

    “Statistics alone cannot change the quality of life but good and sustainable people-oriented policies will,’’ he added.

  • Finance Minister speaks on Buhari’s revised roadmap to economic recovery

    Finance Minister speaks on Buhari’s revised roadmap to economic recovery

    Nigeria’s Finance Minister has for the umpteenth time spoken on the economic recovery roadmap of the President Muhammadu Buhari administration.

    Minister Kemi Adeosun, speaking at The Platform May Day event tagged “The Nigerian Economy: How Oil Prices and Production Swings Determine the Fate of a Nation,” said past administrations have done the country more harms than good, and that the present administration is doing all it can to bring the economy back on track.

    “We are now suffering the effects of what happened years back,” she said, stressing that what happened is that “Nigeria missed a lot of opportunities” and became a very “unproductive economy” over time.

    She recalled that once a former Central Bank of Nigeria governor raised alarm that government money was missing, but was harassed, and today we are where we are.

    The Minister however expressed optimism that the Economic and Financial Crimes Commission will send looters to prison.

    “I am optimistic EFCC will convict some looters in the nearest future,” she hoped, adding: “It is important to send a message”.

    Speaking further, the Finance Minister said “We’ve already started moving out of recession,” adding: “The past is gone but now everyone’s eyes is watching”.

    What is happening now is that we are “Laying the ground work” for the economy to work efficiently, Adeosun said.

    Among what the government is doing to recover the economy from recession, Adeosun said is to: broaden tax base, improve tax to GDP ratio, block leakages and improve compliance.

    She said the Buhari’s administration also aims at improving customs collection, reducing overhead, allocating 30% of the budget to capital projects, increasing allocation to critical sectors, utilising debt for SME support and foregoing revenue to provide tax incentives for investors in start-up.

    Adeosun said, going forward, Nigeria will begin to experience better economic growth.

    “The type of growth we are moving into is fundamental, and it is hinged on entrepreneurship.

    “What will happen is economic resilience through diversification,” said the Minister.

    She said government is poised to do the right thing, saying “We are poised to make the change sustainable”.

    Resounding the words of Vice President Yemi Osinbajo, Adeosun said, conclusively that the right time for Nigeria to make it is now.

  • World Bank: Nigeria’ll rebound from RECESSION, grow at a 1.0 percent pace

    A new World Bank (WB) report has forecast Nigeria will rebound from recession and grown at a 1.0 percent pace in 2017.

    The World Bank report said sub-Saharan Africa economy is expected to pick up modestly to 2.9 percent in 2017 as the region continues to adjust to lower commodity prices.

    However, growth in South Africa and oil exporters is anticipated to be weaker, according to the WB’s January Global Economic Prospects report released on Wednesday. Growth in economies that are not natural-resource intensive should remain robust.

    “On a per capita basis, regional GDP contracted by an estimated 1.1 percent. South Africa and oil exporters, which contribute two-thirds of regional output, accounted for most of the slowdown, while activity in non-resource intensive economies generally remained robust,” the lender said.

    The report says growth in South Africa is expected to edge up to a 1.1 percent pace this year and output will be held back by tight fiscal policy and high unemployment that is weighing on consumer spending.

    According to the WB, Nigeria is forecast to rebound from recession and grow at a 1.0 percent pace, as an anticipated modest improvement in oil prices, coupled with an increase in oil production, boost domestic revenues.

    Angola is projected to expand at a moderate 1.2 percent pace as high inflation and tight policy continue to weigh on consumption and investment.

    The WB said growth in the Sub-Saharan Africa region is estimated to have slowed to a 1.5 percent rate in 2016, the weakest pace in over two decades, as commodity exporting economies adjusted to low prices.

    The region’s two largest oil exporters — Angola, where growth slowed to a 0.4 percent rate, and Nigeria, which contracted by 1.7 percent — faced severe economic and financial strains.

    “Other oil exporters were also hit hard by low oil prices, with Chad contracting by 3.5 percent and Equatorial Guinea shrinking by 5.7 percent,” it said.

    According to the report, metals exporters struggled with low prices as well. Growth slowed to 2.7 percent in the Democratic Republic of Congo and to 3.6 percent in Mozambique, where a surge in government debt weighed on investor sentiment.

    The post-Ebola recovery in Guinea accelerated to 5.2 percent. Liberia picked up to 2.5 percent, and Sierra Leone, which expanded by 3.9 percent, was hampered by low prices for iron ore.

    Many agricultural exporters, such as Cote d’Ivoire, which expanded by 7.8 percent, and Ethiopia, which grew by 8.4 percent, registered strong output on the back of infrastructure investment.

    In other mineral and energy exporters, the outlook is generally favorable as Ghana is forecast to surge to 7.5 percent growth pace as improving fiscal and external positions help boost investor confidence.

    “Progress in developing Mozambique’s energy sector will help spur investment in that country’s natural gas production and contribute to an accelerated 5.2 percent growth rate. The post-Ebola recovery is anticipated to help Guinea grow by 4.6 percent, Liberia by 5.8 percent, and Sierra Leone by 6.9 percent,” the report says.

    It says large infrastructure investment programs will continue to support robust growth among agricultural exporters, with Cote d’Ivoire and Ethiopia growing at or above 8 percent.

    However, the report warns that political fragility will exert a drag on growth in countries such as Burundi and The Gambia.

    Among commodity importers, Cabo Verde is expected to grow at a 3.3 percent rate, Mauritius to rise moderately to 3.5 percent, and Seychelles to slow to a 3.5 percent clip as uncertainty in Europe weighs on tourism, investment, and trade flows.

    Lesotho, which is forecast to grow at a 3.7 percent pace, and Swaziland, which should exit recession and resume growing at a 1.9 percent rate, are anticipated to benefit from regional trade and infrastructure investment.

    The Bank warns that heightened policy uncertainty in the United States and Europe could lead to financial market volatility and higher borrowing costs or cut off capital flows to emerging and frontier markets.

    “A reversal of flows to the region would hit heavily traded currencies, like the South African rand, hard. A sharper-than-expected slowdown in China could weigh on demand for export commodities and undermine prices,” the report says.

  • Nigerian Senate envisages 7.55 million additional employments

    Nigerian Senate President, Bukola Saraki, has said Nigeria is set to benefit from additional 7.55 million employments in the coming years.

    The Senate President made this revelation in his speech addressing the Senate on resumption of duties in Abuja today.

    TheNewsGuru Senate House correspondence quotes the Senate President Saraki as saying that new National Assembly Business Environment Roundtable (NASSBER) research findings reveal that economic reform bills, dubbed Priority Bills, will have an output impact equivalent to an average of 6.87% of GDP over a 5-year period on the economy.

    “The average annual growth in jobs is estimated at approximately 7.55 million additional employments as well as an average of 16.42% reduction in Nigeria’s poverty rate,” Saraki said, adding that over the projected 5-year period the Priority Bills would engender the addition of an average N3.76 Trillion to National incomes.

    “National Disposable Income was N85.62 trillion in 2014, equivalent to 4.39% of 2014 figures,” said Saraki.

    Senate President Bukola Saraki said that the NASSBER statistics make the delivery of the Priority Bills imperative and that the statistics confirm evidently that the Senate has gotten priorities right so far.

    “It is hoped that as we begin to turn our focus now towards the passage of the 2017 budget, these bills will be implemented simultaneously with the budget to enable us exit the recession quickly,” Saraki said.