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RMRDC Plans Business Clusters In 774 LGAs

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The Director General, Raw Materials Research and Development Council (RMRDC), Professor Peter Onwua1u, said lastThursday that the council would develop business clusters in the 774 Local Government Areas of the Federation.

Onwualu said this in an interview with newsmen in Abuja that the council had already started the process of technologically developing those clusters.

“If you look around the country, there are so many naturally existing clusters in Nigeria, like the furniture cluster in Abuja, the leather cluster in Kano, the shoe and bag cluster in Aba.

“Our idea is to look at these clusters, study them, find out their challenges and see how we can assist them to function better and make them produce competitively.

“The whole idea is to inject technology into existing clusters and see how we can solve the challenges they have, using technology and in some cases, establish new clusters,” he said.

Onwualu added that the council was looking at finding research centres with developed technologies and injecting such technologies into clusters that require them, thereby making them competitive.

He said that the council in 2010, began the mapping out of the clusters, which involved a scientific identification and analysis of the existing clusters.

The director general said that the RMRDC had conducted a baseline study in all the states of the federation to identify such clusters.

Onwualu said that the council had already conducted an international training programme in collaboration with the Swedish International Development Agency and Pan-African Competitive Forum with him as the Chairman.

He said that it was difficult to start the development in all council areas and as such, two clusters were selected from each geo-political zone for the training, which a total of 30 clusters were trained.

“The concept of the cluster programme is to see to the emergence of one viable technologically based cluster in every local government area; it is a tall order but it is part of our vision 20:2020.

“Canadian International Development Agency (CIDA) is now collaborating with us to inject technologies into these clusters and fund all projects on a 50-50 basis,” Onwualu said.

He said that the trainees were given templates and told to go back and analyse their problems, especially technologically based ones and come back with intended projects,

Onwualu added that the clusters had submitted their intended technologically-based projects and that the council was synthesising them for submission to CIDA.

He said that a pilot project had begun with the establishment of a technologically based Cashew processing cluster in Kogi, adding that four more would spring up in other states this year.

Onwualu added that one of the clusters to be developed was the organic fertiliser cluster in Enugu State and sheer butter processing plants in Kebbi State.

The director general said that the development of the clusters was going to be of economic importance to the country.

“When these clusters move into full production, they will begin to pay tax to the government.

“One of the aims of assisting them is to know exactly what they do and the quantity they produce with a view to accurately taxing them,” Onwualu said.

He said that the required technologies were not going to be totally imported as the council was partnering with some agencies in Nigeria, which could provide some of the technologies.

“We are already partnering with some agencies in Nigeria, which can have some of the technologies fabricated, it is when we cannot source them locally, that we will resort to importation,” Onwoalu said.

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Nigeria’s Revenue-To-GDP Ratio Lowest, Private Sector Choking – World Bank

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Nigeria’s revenue-to-Gross Domestic Product ratio, which fell to between five and six per cent last year, is the lowest in the world, the World Bank said on Monday.
The Country Director for Nigeria, World Bank, Dr Shubham Chaudhuri, said this during a panel session at a virtual public sector seminar with the theme ‘Nigeria in challenging times: imperatives for a cohesive national development agenda’ organised by the Lagos Business School.
Chaudhuri, who stressed the need for private investment for the country to realise its potential, said the private sector in the country ‘is struggling to breathe’.
“In Nigeria, I think the basic economic agenda is about diversification away from oil because oil has really been like resource curse for Nigeria on multiple dimensions,” he said.
He noted the aspiration of the President, Major General Muhammadu Buhari (retd.), to lift 100 million Nigerians out of poverty by the end of the decade.
He said, “Nigeria is a country with tremendous potential. If you look at the synopsis for this panel, it suggests that Nigeria is at a critical juncture – almost at the moment of crisis.
“Despite all of that, Nigeria is still the largest economy in Africa. So, just think about the potential that Nigeria has because of its natural resources, but more than that, because of its dynamism and all of its population. Nigerians are more entrepreneurial by nature.
“No country has become prosperous and realised its potential, eliminated poverty without doing two simple things: investing in its people, and unleashing the power of the private sector in creating jobs by investing and growing business. And then, of course, the basic function of the state is to provide security and law and order.”
According to Chaudhuri, to invest in people entails basic services, basic education, primary healthcare and nutrition, among others.
He said, “On this, Nigeria at the moment ranks sixth from the bottom in terms of the human capital index that we produce every year.
“So, obviously, there is a huge agenda in terms of investing in human capital. Nigeria spends more on PMS (premium motor spirit) subsidy than it does on primary healthcare in a year, and we know who the PMS subsidy is benefitting.”
He indicated that despite the country’s huge potential to attract private capital, the non-oil part of the economy ‘is not growing that robustly and certainly not generating revenues that the government needs’.
Chaudhuri said, “So, we see as priorities investments in human capital. But for that, one needs revenues. And there again, Nigeria unfortunately has the distinction of having about the lowest revenue-to-GDP ratio in the world.
 ”The standard rule of thumb is that for government to provide the basic services and law and order, it needs between 15 to 20 per cent of GDP as being revenue, and this will be both at the federal and state levels combined.
“In Nigeria, it was eight per cent in 2019. In 2020, in the middle of the Covid-19 crisis and with the fall in oil prices, that went down to about between five and six per cent.
“So, domestic revenue mobilisation is huge. And then the third is enabling the space for private investment. You have to fix the power problem. Power is like the oxygen of an economy. In Nigeria, the private sector is struggling to breathe.”

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CBN Stops Sale Of Forex To BDCs

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The Central Bank of Nigeria (CBN) as announced immediate discontinuation of sale of Foreign Exchange (forex) to Bureau de Change (BDC) operators in the country.
Mr Godwin Emefiele, the CBN Governor , made this announcement yesterday, while presenting a communique from the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja.
Emefiele said that the decision was informed by the unwholesome business practices of the BDCs, which he said had continued to put enormous pressure on the Naira.
He  said ,  henceforth,  the apex bank would sell forex to deserving Nigerians through the commercial banks.
“ The BDCs were regulated to sell a maximum of 5000  dollars per day,  but CBN observed that they have since been flouting that regulation and selling millions of dollars per day.
“The CBN also observed that the BDCs aid illicit financial flows and other financial  crimes.  The bank has thus, decided to discontinue the sale of forex to the BDCs with immediate effect.
“We shall, henceforth,  channel all forex allocation through the commercial banks,” he said.
He urged the commercial banks to ensure that every deserving customer got their forex demand,  adding that any bank found circumventing  the new system would be sanctioned.
“Once a customer presents all required documentation to purchase forex, the commercial banks should ensure they get the forex.
“Any customer that is denied should contact the CBN on 0700385526 or through the email- cbd@cbn.gov.ng “ he said.
The Tide source reports that stakeholders have been calling on the CBN and its MPC to take urgent steps to halt unending depreciation of the Naira.
Recently,  a past President of the Chartered Institute of Bankers of Nigeria (CIBN),  Mr Okechukwu Unegbu,  urged the MPC to focus on policy decisions that would curb rising inflation and stabilise the Naira.

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RSG To Privatise Songhai, Fish Farms

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There are strong indications that the Rivers State Government has concluded plans to privatise the moribund Songhai Farm in Tai and Fish Farm in Buguma.
The State Chairman of the Peoples Democratic Party (PDP), Amb. Desmond Akawor, gave this indication while appearing in a phone-in radio programme organised by Silverbird Communications in Port Harcourt at the weekend.
He explained that the previous administration in the state failed to put in place a sustainability programme for these farms, hence they went moribund.
In order to reverse the situation, he said that the present administration was now contemplating a rehabilitation scheme to be driven by a privatisation policy to enable those investments come on stream.
He said the scheme had reached an advanced stage and is to executed by the State Ministry of Agriculture.
On the issue of job creation, Akawor said the administration of Chief Nyesom Wike was using the various construction projects around the state to empower the youths.
He explained that the government had floated a special scholarship scheme in Law and Medical Sciences to create opportunities for young people in various professions.
He called on the opposition to desist from de-marketing the state through propaganda as it’s capable of scaring investors away from the state.
Akawor insisted that the Wike led administration has provided an enabling environment for businesses to thrive through infrastructure and improved security.

By: Kevin Nengia

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