Business
LCCI, Shareholders Want More Support For Diversified Export
For Nigeria to become a major player in the African Continental Free Trade Agreement (AfCFTA) initiative, and globally, there is a need for government to focus more on promoting the non-oil sector and create targeted funding for selected export-oriented sectors such as agriculture, manufacturing, creative arts and entertainment.
The Director-General of Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, said this would enable the country to enhance its competitiveness and rev up Nigeria’s share of global and Africa trade currently put at just 0.26 per cent and 19 per cent.
Speaking on the theme: ‘African Continental Free Trade Agreement: Matters Arising’, at the 2022 yearly symposium of the Issuers and Investors Alternative Dispute Resolution Initiative (IIADRI) held in Lagos recently, Almona bemoaned Nigeria and Africa’s low contribution to global trade, despite the continent’s trade prospects.
However, she expressed hope that leveraging AfCFTA initiative would enable Nigerian manufacturers to tap into the global market, increasing industrialisation and boosting economic growth.
Represented by the Assistant Director, Research and Advocacy, LCCI, Sunny Michael, she said UNCTAD’s Global Trade update showed that world trade in goods remained strong, while trade in services had returned to its pre-COVID-19 levels in 2021.
She, therefore, insisted that Nigeria and other African countries must step up the game to play a more active role in global and regional value chains.
According to her, governments at all levels should support producers in the areas of capacity building and technical assistance to improve the quality of products for export, as well as ensure that the country’s products can easily access other markets.
“We need a conducive regulatory environment for export and manufacturing. Government should consider establishing agro-industrial parks strictly focused on the production of goods meant for export.
“Corporate strategies also matter; we must have a strategy for supply chain and explore resources for our own benefit. It is cheaper and more sustainable,” she said.
Also speaking at the event, Executive Secretary, Nigerian Investment Promotion Council (NIPC), Emeka Offor, urged shareholders to ensure that operators of listed firms restrategise to benefit from the AfCFTA and boost their investment.
According to him, there is a need for Nigerian firms, especially quoted companies to identify and tackle issues that would pose a threat to the realisation of the benefits of the AfCFTA in Nigeria before the full take-off of the initiative.
He stated that information through intelligence gathering is very critical to keeping operators ahead of trends to enable them to reposition appropriately and benefit from the programme.
Offor said international trade has its own uncertainties and risks, and that that the more Nigerian business operators understand the market, the more they take advantage of the unlimited demand and innovation along the supply chain.
Business
FG’s N1,350 FUEL DISCOUNT: Drivers lament low impact on Transportation
Some Commercial drivers in Port Harcourt have said that the Federal Government’s N1,350 fuel discount is yet to reduce their daily operating cost.
A cross session of commercial drivers who spoke to The Tide correspondents in Port Harcourt said they are yet to feel the impact of the government discount, adding that most filling stations in the city are even selling above the pump price
A driver Jude Ogbo who operates the mile 1 Rumuokoro axis of Port Harcourt said plies the discount has not reflected in his daily fuel expenses.
“Since the discount was announced, many filling stations still sell at the old price. When you go there, you discover they sell you two litres at the price of one. For now, we have not seen any reduction,”_ he said.
Another commercial driver, Comrade Ishmael Uzeho who operates within the Port Harcourt metropolis, said the discount is not being implemented across the country.
“How has the discount affected us? I will say it has not. Many stations are not working. Only NNPC is working and that is just one person in the whole country. If government really wants to help, let the fuel price go down properly,”_ he said.
Uzeho added that if the price of fuel goes down, transport fares will also go down. He noted that his route fare has remained at N500.
On his part, Mr. Moses Dapa, Supervisor at Sam Jaja Foundation Transport Company, said the company has not increased its fares despite the high cost of fuel.
“We are still running normal price. We charge N2,000 and N5,000 depending on the destination. We will not increase our price. I don’t know about other parks, but for Sam Jaja, we are maintaining normal price,”_ Dapa said.
He appealed to passengers to understand that drivers are not using high fuel price as an excuse to charge excessive fares.
Other drivers who spoke said the federal government should monitor the NNPCL retail stations to ensure that the directive is implemented.
Recalled that The Federal Government in abid to reduce transportation cost in the country had announced a 30-day margin discount at NNPC Retail stations across the country from October 1 to 31,
However investigation revealed that the policy is yet to affect transportation cost in the country.
By; Stephens Sopakriba and Saint Davies
Business
Nigeria Has gas potential to navigate energy crisis – Group
In a press statement released to The Tide’s source on Friday in Abuja, the group said Nigeria had a significant resource advantage due to its vast natural gas reserves.
“At a time when global energy markets face unprecedented volatility and rising operational costs, Nigeria stands on a massive resource advantage with its vast natural gas reserves,” the group said.
Highlighting this potential, Alfa Designs urged the nation to move past complaints over energy costs and aggressively embrace Compressed Natural Gas (CNG) as a sustainable engine for economic growth.
While federal policy adjustments have sought to cushion the impact of global energy shocks, industry experts emphasised that long-term relief hinges on a rapid, nationwide transition to gas.
“Transitioning away from expensive traditional petroleum products promises to ease the financial burden on ordinary citizens.
“It will also reposition Nigeria as an attractive industrial hub capable of drawing foreign direct investment and driving job creation,” it said.
To demonstrate the practical feasibility of this transition, the group said it recently partnered with a global Original Equipment Manufacturer (OEM) to lower the entry barriers for commercial drivers.
“By negotiating directly with the manufacturer, we reduced the total cost of acquiring and installing a CNG conversion kit for commercial tricycles (commonly known as Keke NAPEP) from up to N700,000 down to under N450,000.”
The group said this shift offers dramatic immediate financial benefits for local operators, with petrol currently selling at roughly N1,390 per liter.
It said that, in comparison, at a CNG equivalent price of about N98 per liter, a daily commercial driver using 10 liters of fuel reduces its daily energy expenditure from N13,900 to N3,980.
“This represents a daily net savings of N9,920, or more than 71 per cent.
“Over a standard 26-day working month, drivers save over N257,000, allowing them to fully recover the cost of the CNG conversion in less than 46 operational days.”
The company further stated that when scaled nationally, the economic implications are monumental.
“Nigeria consumes approximately 50 million liters of gasoline daily, costing roughly N69.5 billion per day.
“A nationwide 71 per cent reduction in fuel expenditure would generate daily national energy savings of N49.6 billion.
“On an annualised basis, this shift equates to approximately N18.1 trillion, or $13.5 billion, kept within the domestic economy.”
The group added that those recurring national savings would offer a vital mechanism to help address Nigeria’s estimated $2.3 trillion infrastructure deficit.
It said reinvesting those funds into the economy helps eliminate the 30 to 40 per cent operational overhead currently consumed by imported fossil fuels.
“The resulting boost to corporate margins expands the national tax base, generates reliable user-fee revenues to make major transit projects bankable, and creates a self-sustaining financial cycle,” it said.
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