Connect with us

Business

Justifying N500bn Manufacturers’ Lifeline

Published

on

The way he came to power was everything but smooth and so he is trying his best to impress on the people that he is equal to the task which the leadership of a complex  country like Nigeria has placed on his shoulders. Hence, the changing of the old order seems to be the major challenge of the Jonathan administration which has so far not spared any stone in its attempt to turn around the fortunes of the common man in Nigeria for good.

It is in pursuit of this challenge that the administration moved to make petroleum products available to ease transportation problems facing the people, a development which has drastically reduced the expletives the common  man throws on governments before  this administration. Thus, towards reducing the tedium of doing business in Nigeria the federal government recently released the whopping sum of N500 billion to the manufacturing sector to enable major players reactivate moribund  and ailing industries to boost the economy. Unveilling the package recently, the Vice President, Arc. Namadi Sambo noted that of the amount, N100 billion is allocated to the textile industry in response to the demands of investors in the sector for financial aid. Already, he said, N40 billion out of the allocation to the textile industry had been disbursed to some investors in the sub-sector.

Mindful of the potentials which the manufacturing sector has in boosting the nations  Gross Domestic Product (GDP) and accelerate the diversification of  the economy grossly dependent on crude oil export, this plan to revive the manufacturing sector by injecting much  needed funds is highly commendable.

However, in view of the high rate of youth unemployment which a robust manufacturing sector could help in redressing, it is hoped that the disbursement of the  N500 billion bail-out fund would not be politicised if it must achieve the objective it is set to meet.

This fear was expressed at the 49th annual general meeting  of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA held in Abuja, not too long ago. At that forum, NACCIMA lamented the dwinding  fortunes of the nation’s industrial sector. Reviewing the economy, stakeholders decried the drop in industrial capacity to an average of  36 per cent in May 2009. In his articulation of NACCIMA view, its president, Dr Simon Chukwuemeka Okolo blamed the decline in industrial capacity utilisation to the poor operating environment especially very low credit access by operators and infrastructural decay. Okolo observed the initial N70 billion Textile Fund and the N200 billion Special Agric Fund which were aimed at developing the real sector were yet to show desired positive impact on the economy.

“Therefore, government should as a matter of urgency address the current character of credit allocation which shows high degree of disconnection of the financial system from the real sector of the economy,” Okolo observed.

In fact, Okolo advocated the setting up of sector specific development banks like in other countries to restore the real sector as the driving force of the economy and the need to engage the private  sector through the Public Private Partnership (PPP) approach by putting in place the appropriate machinery and strategic framework to develop the real sector to enable it drive the economy cannot be over-emphasised.

All said, government’s gesture towards the manufacturing sector and the textile industry in particular is aimed at employment generation for Nigerians. For instance, the textile industry in its hey days in the 1980’s had over 70 firms which together employed over 500,000 workers. Today, the industry, a mere shadow of its original self has no more than 20 firms still in operation with just over 20,000 employees, hence the interest of government in revamping the textile industry which is a major employer of labour.

Besides, Okolo who is also a member of the Presidential Advisory Council (PAC) urged the Federal Government to endeavour to diversify the revenue base of the country through serious encouragement of non-oil exports in the country, stressing that unemployment has continued to soar in the country with dwindling revenue inducing budgetary constraints for the federal government. He then urged the federal government to improve the country’s investment climate to encourage development of industries that will boost production of goods for local consumption and ease the unemployment situation in the country. It follows that the totality of federal government policies must be aimed at boosting local industries which in turn would address the unemployment problem in the country.

Clearly, the glut in the labour market has rubbed off negatively on even the few that are employed. This is why in its ranking of living condition around the world, the United States based Newsweek Magazine judged Nigeria to be second to the worst. The analysis examined factors such as education, healthcare, quality of life, economic dynamism, political environment, the proportion of employed people in the population and industrial output. That  government is sensitive to these issues could be gleamed from the ongoing revolution in the manufacturing and power sectors. The solution to the inadequacy of power and energy is considered extremely necessary  as the epileptic power outage in most  parts of the country has not only created untold hardship for the citizenry but has led to low capacity utilisation of manufacturers as well as reduced productivity of the real sector operators who depend on private provision of alternative sources of electricity through power generators,    thereby making the cost of doing business in the country very high. The task to release the country from the vice grip of retrogressive elements has come  and the Jonathan/Sambo government needs all the support it could muster to drive the economy. With a buoyant ceremony and near full employment for youths the scourge of militancy in the Niger Delta region and the uprising by youths in the Boko Haram sect would be a thing of the past.

Continue Reading

Business

Lokpobiri Condemns Abandoned Refinery Project in N’Delta … Vows Revival

Published

on

Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has condemned the long-standing abandonment of the Brass Modern Refinery project in Bayelsa State, saying it’s “unacceptable”.
Lokpobiri, who stated his concerns over the abandoned project during an inspection visit to Brass Local Government Area, emphasized the need to revitalise the project.
He also toured the Ewa-Ama Road project leading to the Brass Petroleum Products Terminal, and reaffirmed the Federal Government’s commitment to fast-tracking critical oil and gas infrastructure in the Niger Delta.
“It is unacceptable that such a strategic project has been left in this state for so long”, Lokpobiri declared, adding that “the Federal Government remains committed to ensuring that critical oil and gas infrastructure, like the Brass Refinery, is completed to create jobs and drive economic growth in the region”.
A statement issued yesterday by the Special Assistant on Media and Communication to the Minister, Nneamaka Okafor, assured that the administration is determined to deliver on these projects within President Bola Tinubu’s first two years in office.
Accompanied by the Chief Executive Officer of the Nigerian Midstream & Downstream Petroleum Regulatory Authority, Farouk Ahmed, Lokpobiri stressed that the completion of these projects aligns with Tinubu’s mandate to boost Nigeria’s oil and gas sector.
Beyond infrastructure concerns, Lokpobiri engaged with host community representatives, commending their patience and peaceful disposition despite the setbacks.
He said, “I sincerely commend the people of Brass for their patience and cooperation. Your support is invaluable, and I assure you that we will work tirelessly today to address these issues and bring this project to completion”.
A community representative, who welcomed the minister’s visit, described it as a step toward rebuilding trust in the government’s commitment to the region.
“We appreciate Senator Lokpobiri’s visit and his assurance that this project will receive due attention. We are hopeful that his intervention will lead to tangible progress”, the representative said.
Lokpobiri further urged the community to sustain the peace, emphasising that stability is crucial for attracting investment and fostering regional development.
He reiterated the government’s dedication to creating economic opportunities that would benefit Brass and the broader Niger Delta region.
Continue Reading

Business

FG Unveils Industrialisation Strategies In 2025  … To Conduct MSMEs Census

Published

on

Towards enhancing its industrial transformation and economic growth strategy, the Federal Ministry of Industry, Trade, and Investment (FMITI) is set to carry out a national census aimed at establishing a data-driven roadmap for empowering Micro, Small and Medium Enterprises (MSMEs) in 2025.
The Ministry revealed this in its 2025 outlook document, which listed the top priorities for the 2025, titled, “Accelerating Diversification to Rebuild Prosperity by Leveraging Industry, Trade & Investment”, signed by the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole and the Minister of State, Senator John Enoh.
The census, according to the document, is an essential step in conducting a nationwide census to establish a precise, data-driven roadmap for empowering MSMEs.
According to the document, “The ministry will conduct a nationwide census to establish a precise, data-driven roadmap for empowering Micro, Small, and Medium Enterprises (MSMEs) and a high-level task force focused on implementing industrial reforms and re-engineering the Nigeria Industrial Revolution Plan (NIRP), aiming to create a modernised blueprint for sustainable industrialisation”.
Oduwole defined 2025 as a critical year for the nation to diversify its economy, promising quantifiable results through strategic initiatives and policy changes.
According to her, the ministry will concentrate on three crucial areas – investment mobilisation, trade revenue growth, and economic diversification.
“As a ministry, we prioritize creating a dynamic, resilient, and sustainable economy by positioning the private sector for productivity and competitiveness and enabling businesses to take full advantage of the vast opportunities available in domestic, regional, and global markets.
“We have re-positioned ourselves to deliver empirically verifiable policies and reforms based on transparently laid down, which improved FMITI’s Performance significantly in the last quarter of 2024.
“We are building an economy that attracts abundant investment from across the world, fosters industrial transformation, and facilitates trade in exports to generate productive jobs for Nigerians across the country.
“In 2025, to accelerate diversification and rebuild prosperity, FMITI will deliver a more enabled environment through good regulation and development policies and the expansion of trade and investment across three broad areas: Economic diversification to accelerate through industrialisation, digitisation, creative arts, manufacturing and innovation; Trade revenue growth to boost export and foreign exchange earnings; and investment mobilisation aimed at increasing investment retention and attraction”, Oduwole stated.
The key priorities for the ministry in 2025, according to the document, are: “Unlocking the full potential of the automotive sector by accelerating local manufacturing and fostering world-class supply chains; Expanding value addition in agriculture to position Nigeria as a global powerhouse in agro-industrial production; and Revitalizing the Cotton, Textile, and Garments (CTG) ecosystem to enhance domestic production, drive exports, and create millions of jobs.
Others are, “Advancing Nigeria’s industrial self-sufficiency through strategic investments in pharmaceuticals, medical devices, and petrochemical industries; Conducting a nationwide census to establish a precise, data-driven roadmap for empowering Micro, Small, and Medium Enterprises (MSMEs); and setting up a high-level task force focused on implementing these industrial reforms and re-engineering the Nigeria Industrial Revolution Plan (NIRP), aiming to create a modernized blueprint for sustainable industrialisation”.
In his comment, Enoh said, “We will also drive the revitalisation of existing industries, ensuring they remain vibrant players in an increasingly competitive world”.
To make these goals a reality, he said the ministry will engage extensively with key stakeholders across sectors, fostering strategic partnerships, collaboration, and rigorous monitoring and evaluation of industrial projects.
Continue Reading

Business

Coy Strengthens Commitment To Nigeria’s Energy Future

Published

on

Genesis Energy Group, a provider of integrated power solutions, has strengthened its commitment to the future of Nigeria’s energy infrastructure after hosting Governor Dikko Radda of Katsina State on a landmark visit to its Lagos and Port Harcourt facilities.
According to a statement, the visit highlighted the growing collaboration between state governments and private sector players in addressing Nigeria’s persistent energy challenges.
Governor Radda toured Genesis Energy’s 84 MW off-grid power plant at the Port Harcourt Refinery, the largest licensed facility of its kind in Nigeria.
The statement noted that the facility plays a crucial role in providing a stable and efficient power supply to key industrial establishments, reinforcing Genesis Energy’s leadership in sustainable energy solutions.
Following the refinery visit, the Governor proceeded to its Lagos power plant on Banana Island, Ikoyi, which includes 2×7.5MVA and 15MVA Injection Substations operating at 33/11KV.
The company explained that the facility ensures an uninterrupted electricity supply to both commercial and residential areas, further establishing Genesis Energy as a trusted provider of reliable power solutions.
Commending the company’s technological capabilities and operational excellence, Governor Radda said, “I am highly impressed with what I have seen.
“The company has exhibited remarkable expertise in power generation, with its turbine system running at full capacity for over a decade. Their electricity distribution process and service efficiency demonstrate their ability to execute large-scale power projects in Nigeria”.
The visit also allowed discussions on potential partnerships between the Katsina State government and Genesis Energy to enhance energy access and industrial growth in the region. Governor Radda acknowledged the company’s capacity to contribute meaningfully to Nigeria’s energy transformation.
On his part, the Executive Vice President of Operations and Maintenance at Genesis Energy Group, Simon Shaibu, emphasised the company’s dedication to driving innovation and strategic partnerships in the energy sector.
He said, “At Genesis Energy, we firmly believe that collaboration is key to unlocking Nigeria’s vast energy potential. As we continue expanding and innovating, we remain committed to supporting industries, fostering economic growth, and shaping a more sustainable energy landscape.
“The company remains committed to advancing national energy objectives through strategic investments in sustainable power infrastructure, further positioning itself as a leader in the transformation of Nigeria’s energy landscape”.
Continue Reading

Trending