Business
Experts Applaud N9.9trn Allocation For Maritime, Blue Economy Infrastructure
Experts have declared that the creation of the Marine and Blue Economy Ministry and the allocatiohn of N9.99 trillion for capital expenditure and infrastructure development in the 2024 Budget will be major drivers of growth in fiscal 2024.
According to them, Nigeria’s large population of 223.8 million, comprising mostly youth of an average age of 17.2 years and the sixth largest populace in the world presents a positive outlook for the nation’s economy since a youthful and vibrant population is capable of buying and consuming anything.
Speaking at FirstBank of Nigeria’s “Economic Outlook 2024: Current Realities and Prospects”, the pundits argued that President Bola Ahmed Tinubu’s policy thrust in critical sectors as captured in the 2024 budget point to a positive outlook for the nation’s economy in 2024.
Chief Executive Officer of Biodun Adedipe and Associates (BAA Consult), Dr. Biodun Adedipe, who presented the keynote address at the summit, said the creation of the Ministry of Marine and Blue Economy and allocation of N9.99 trillion for capital expenditure (infrastructure development) represent a positive outlook for the nation’s economy.
He said the way President Tibunu has handled national issues since assuming office shows that he listens to people’s opinions and that given that disposition, Nigerians should continue to speak up for the government of the day to take more proactive steps in moving the nation forward.
“The President knows the value of money in a sustainable economy and he is poised to look for the money in all the critical sectors and one of his strategies is to appoint experienced and competent people into such key sectors to deliver on his administration’s mandate.
“Another area of strength is the Federal Government’s focus on capital expenditure last seen in the 1980s”, he said.
51.96 percent in 2020 and 53.96 percent in June 2023, up from 47.84 percent in 2015 and deepening internet penetration at 45.57 percent in August 2023, rising from 31.48 percent in December 2018.
“The nation’s teledensity at 116.6 percent in December 2022 and 115.63 percent in August 2023, a drop from 123.48 percent in December 2018 (91 percent in March 2019) and Internet users for which Nigeria ranks 11th globally are also good pointers to a better and resilient economy projected to grow at 3.5 percent this year
“On exchange and interest rates, the Federal Government benchmarked the budget assumption at N800/$; significant utterance N650-N750/$, while JP Morgan pegged it at N850/$.
“The Monetary Policy Rate (MPR) of 18.75 percent is expected to be raised to reduce negative interest rate by closing the domestic inflationary gap of 26.72 percent and respond to rate differentials with dollar interest of 4.58 percent yield on 10-year treasury bonds and inflation of 3.7 percent”, he said.
He further explained that money supply and imports have maintained a relentless uptick on inflation rate, while local oil refining, revived manufacturing and focused export promotion will support stability to the Naira exchange rate, just as improvement in infrastructure would begin to positively impact the cost of doing business.
Adedipe, who urged the Federal Government to create a friendlier business environment for more businesses to thrive, noted that Switzerland, Japan, Germany and other countries have been making enquiries on investment opportunities in the Nigerian economy in 2024 and beyond.
He stressed that the government should strive to attract and retain manufacturers, adding that big manufacturing companies such as GSK, P&G and Nestle, exiting in recent times, was not about Nigeria, but they were doing so to align with their global business strategies.
“Most of the companies exiting Nigeria are still producing and shipping to countries from which they exit, but still export from. It is global shift of international trade post-COVID 19 pandemic. But essentially, China, India and Lebanon are dominant countries in terms of trade with Nigeria”, he added.
Speaking during the panel session, Founder of FactBox Company and Leadership-By-Data, Babajide Ogunsanwo, who said security remains crucial to agriculture and food production, lamented that across the 45 sectors of the economy, crop production was growing at only 1.65 percent, while post-harvest losses in the country was still high at 60 percent.
He said the Federal Government should leverage the country’s youthful population and ensure availability and affordability of food by engaging in all-year faming, as well as provide facilities for improved processing, storage and preservation of farm produce with a view to attaining a sustained agricultural production and entire food chain.
Nkpemenyie Mcdomimic, Lagos
The Nigerian Communications Satellite Limited (NIGCOMSAT), the country’s satellite operator, has called for immediate promolgation of policy action that will enable the country to harness the potentials of Artificial Intelligence (AI).
NIGCOMSAT, also warned that Nigeria risks missing out on Africa’s projected $1.2trillion share of the global AI economy by 2030.
Managing Director of NIGCOMSAT, Nkechi Egerton-Idehen, disclosed this in a statement issued at the weekend following her participation in the Meeting of the National Council for Communications, Innovation, and Digital Economy.
“Artificial intelligence is reshaping industries, economies, and societies worldwide, with projections that it will contribute up to $15.7trillion to the global economy by 2030. Africa stands to gain $1.2trillion of this if the right policies and innovations are in place”, Idehen said, citing a PricewaterhouseCoopers report.
The NIGCOMSAT MD underscored the transformative potential of AI in agriculture, highlighting its applicability in Benue State, widely regarded as Nigeria’s “food basket.”
According to her, machine learning tools could revolutionize agricultural practices by improving pest detection and optimizing planting schedules using satellite imagery.
“AI offers us the chance to not only flourish economically but also to achieve food security. However, we must ask ourselves if we are prepared to manage this technology responsibly”, she added.
Idehen also noted that internet access remains a significant barrier to AI adoption in Nigeria.
“For AI tools to be effective, basic digital infrastructure is essential. Addressing this gap must be a priority.
“AI is happening. We have the opportunity to manage this technology revolution responsibly, both in Africa and globally, through innovation and governance”, she said.
In August 2024, the Federal Ministry of Communications, Innovation, and Digital Economy released a draft National Artificial Intelligence Strategy, aiming to position Nigeria as a global leader in AI.
Corlins Walter
The Chairman of Emohua Local Government Council, Chief David Omereji, has said the council has so far spent over N1 billion for the electrification of communities in the area.
Omereji said this while addressing staff of the council at the council headquarters recently.
He said the move was part of his administration’s resolve to ensure peace and development of the LGA.
According to him, the Council spent about N29 million on monthly basis for the maintenance of the Emohua Local Vigilante group known as OSPAC, with each member being paid a stipend of N100, 000 monthly.
He diaclosed that 11 out of the 14 wards are currently enjoying electricity, while efforts are on to light-up the remaining ones.
“I also want to use this opportunity to inform the political class for purposes of records and for the understanding of the people that the Council under my watch have done more than enough”, he said .
The Emolga boss explained that all that have been achieved were through the personal effort of the Council, without support from anybody as rumoured in some quarters.
Omereji further reaveled that a number of other projects, including roads, fencing of schools, hospitals, courts premises, and reconstruction of some abandoned buildings at the Council Headquarters are being undertaken by his administration.
He enjoined the people of the area to support his administration’s drive to bring purposeful development to the LGA.
The Emohua Council boss, who reiterated his hatred for noise making, stated that his works would speak for him, and solicited the support of staff of the council and the entire people of the area.
He noted the fact that some people may not be happy with his achievements, saying that he would remain focused, while advising critics of his government to do so constructively with facts and figures.
King Onunwor
The Movement for the Survival of the Ogoni People (MOSOP) has raised some ethical questions over a Financial and Technical Services Agreement (FTSA) between Sahara Energy and West African Gas Limited (WAGL), an affiliate of the Nigerian National Petroleum Company (NNPC).
MOSOP said the agreement was not done in good faith, not in the interest of the Nigerian people, and did not follow due process.
Foremost Ogoni born activist and MOSOP leader, Fegalo Nsuke, who made this known in Abuja, weekend, described the Sahara-WAGL deal as fraudulent, deceptive and an insult on the intelligence and integrity of the Nigerian nation.
Nsuke called on President Bola Ahmed Tinubu to cancel that FTSA between Sahara Energy and WAGL, noting that the agreement is fraught with irregularities and deceptive.
“What Sahara and the NNPC did in the FTSA between Sahara and WAGL is shameful and depicts high level corruption in public service of our country.
“WAGL is an affiliate of Sahara and the NNPC. How then can Sahara go into an agreement with its own affiliate? It’s as good as going into an agreement with itself. This is deceptive and fraudulent”, Nsuke said.
He continued that “Sahara Energy is certainly not a company the Ogoni people want on their soil and we are calling on Mr. President, Bola Ahmed Tinubu, to terminate any deal between the NNPC and Sahara Energy over OML 11, and to allow for an inclusive arrangement that considers a fair treatment of the Ogoni people in the distribution of revenues from natural resource extraction on Ogoni soil.
“The last Ogoni Congress has been unequivocal on the Ogoni demand for justice and has given a clear path to resolve the three decade old conflict between all critical parties.
“It will be good to explore this path to peace and development for Ogoni and for our country”.
Nsuke accused Sahara Energy and the NNPC of frustrating the progress made by MOSOP to achieve a permanent solution to the Ogoni problem.
He urged a presidential intervention with deep consideration for a fair treatment of the Ogoni people in order to permanently address the problem.
He noted that Sahara Energy should give up on the Ogoni area to allow for an engagement in the interest of the country and the people.
Recall that MOSOP and Sagara Energy have recently been engaged in a row in what MOSOP describes as an unholy relationship between Sahara Energy and the NNPC over OML 11.
MOSOP expressly rejected Sahara Energy and called for a fair treatment of the Ogoni people in natural resource extraction in Ogoni.
It noted that Ogoni people, led by MOSOP, paid the sacrifice to take the oil from Shell, hence “the position of MOSOP must be taken into consideration in decisions relating to resumption of oil production in Ogoni”.