Business
Justifying N500bn Manufacturers’ Lifeline
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.
The Nigerian Content Development and Monitoring Board (NCDMB), in partnership with a firm, Sweetcrude Ltd., has announced detailed selection criteria for the inaugural “Champions of Nigerian Content Awards”, designed to honor outstanding contributions to local content development in Nigeria’s oil and gas sector.
The Tide learnt that the event, scheduled to hold 21st May, 2025, at the NCDMB’S content tower headquarters in Yenagoa, capital of Bayelsa State, will recognize individuals and organizations that have demonstrated exceptional commitment to advancing Nigerian Content in 2024.
The Tide further gathered that the ceremony will coincide with the Nigerian Oil and Gas Opportunity Fair (NOGOF), which promises to spotlighting industry excellence and contributions to national economic transformation.
A statement by the Board’s Directorate of Corporate Communications and Zonal Coordination says the event has 12 Award Categories, which include, “Nigerian Content Icon of the Year”, “Nigerian Content Lifetime Achievement Award”, “Nigerian Content International Upstream Operator of the year”, and the “Nigerian Content Independent Upstream Operator of the year”.
Others are, “Nigerian Content Midstream Operator of the year”, “Nigerian Content Downstream Operator of the year”, “Nigerian Content International Service Company of the year”, Nigerian Content Indigenous Service Company of the year”, and the “Nigerian Content Innovator of the year”.
Also included are, “Nigerian Content Financial Services Provider of the year”, “Nigerian Content Media Organization of the year”, and “Women in Leadership Award for Promoting Gender Equality and Empowerment”.
According to the NCDMB, the criteria for oil and gas operators will include key and empirical benchmarks such as Production output for crude oil and gas volumes, Compliance with Nigerian Content Plans (NCPs) and Nigerian Content Compliance Certificates (NCCCs).
Other criteria are adherence to NOGICD Act reporting requirements, such as submission of Nigerian Content Performance Reports and Employment & Training Plans.
The Board’s statement added that similar criteria will apply to financial institutions, media organizations, and individuals, ensuring a transparent and merit-based selection process.
“Winners for the Nigerian Content Icon of the Year, Innovator of the Year, and Women in Leadership Award will also be selected based on measurable performance indicators.
“The Advisory Committee of Industry Titans will Oversee the process to uphold the prestige of awards. The Committee consist of distinguished experts set up to oversee nominations and validate winners”, the NCDMB said.
Members of the committee, according to the Board, include: Pioneer Executive Secretary of the NCDMB, Dr. Ernest Nwapa; Secretary-General, African Petroleum Producers Organization, Dr. Omar Farouk; and former Zonal Operations Controller, DPR, Mr. Woke Akinyosoye.
The Statement quoted the Executive Secretary, NCDMB, Engr. Felix Omatsola Ogbe, as emphasizing that the awards aim to becoming the oil and gas sector’s equivalent of the Oscars, celebrating genuine impact rather than mere participation.
“This recognition is reserved for those who have gone beyond compliance to drive tangible growth in Nigerian Content.
“With a focus on credibility, compliance, and measurable impact, the Champions of Nigerian Content Awards is poised to set a new standard for excellence in Nigeria’s energy sector”, the NCDMB Executive Scribe said.
By: Ariwera Ibibo-Howells, Yenagoa
Nigeria’s apex Banking institution, Central Bank of Nigeria (CBN), has declared that Federal Government’s debt servicing increased to N696billion in January 2025.
The CBN’s recently published Economic Report revealed a precarious fiscal position, which worsened in January 2025 as debt servicing obligations exceeded total retained revenue by a wide margin.
According to the report, the Federal Government’s debt servicing obligations for the month stood at N696.27bn, while total retained revenue amounted to only N483.47bn, indicating that debt service alone consumed about 144 per cent of all government earnings.
This development highlights the growing debt burden and dwindling fiscal space facing Africa’s largest economy.
According to the report, despite slight improvements in some revenue categories, the retained earnings were grossly inadequate to cover obligatory debt repayments, exposing the government’s continued reliance on borrowing to meet basic obligations.
The report further revealed that retained revenue in January 2025 only recorded a marginal 0.89 per cent increase when compared with the N479.21bn generated in the corresponding month of 2024.
”FGN retained revenue declined in the review period, owing largely to lower receipts from Federal Government Independent Revenue and FGN’s share of exchange gain.
“At N0.48tn, provisional FGN retained revenue was 69.19 and 70.40 per cent below the levels recorded in the preceding period and monthly target, respectively”, it revealed.
While this points to stagnation rather than growth, the marginal rise was wiped out by the overwhelming debt service obligations.
The retained revenue components showed that the Federation Account contributed N167.69bn, while the VAT Pool Account delivered N90.73bn.
By: Corlins Walter
The Federal Government has announced plans to commence the payment of the outstanding N35,000 wage award arrears owed workers in the Federal Civil Service.
A statement issued by the Office of the Accountant-General of the Federation (AGF), which was signed by the Director of Press and Public Relations, Bawa Mokwa, said the outstanding arrears will be paid in instalments, with workers set to receive N35,000 per month for five months.
It clarified that the first tranche of the wage award arrears would be released immediately after the April salary payment.
“The wage award arrears was not paid with the April 2025 salary; it will come immediately after the salary is paid”, the statement read.
The Federal Government had earlier disbursed wage awards to federal workers for five months as part of efforts to cushion the impact of economic reforms. However, five months’ arrears remained unpaid.
The AGF office further reiterated the government’s commitment to fully implementing all policies and agreements relating to staff remuneration and welfare, noting that such efforts were geared towards enhancing productivity and operational efficiency across ministries, departments, and agencies.
The N35,000 wage award was introduced in 2023 as a palliative measure to support workers following the removal of the petrol subsidy and other economic adjustments.
In January this year, the Federal Government assured workers that it would clear the arrears of the N35,000 wage award, just as it also said the government had resumed the payment of the wage award.
The government also reiterated its commitment to addressing issues in the National Minimum Wage agreement reached with the Organised Labour in 2023.
The Minister of Labour and Employment, Nkeiruka Onyejeocha, had disclosed the government’s commitment towards implementing agreements with trade unions during separate meetings with the leadership of the Trade Union Congress and Congress of University Academics, in Abuja.
The Nigeria Labour Congress had criticised the Federal Government over the delay in the payment of the minimum wage for certain workers in the federal civil service.
Also, the Federal Government had earlier blamed the delay in payment on the prolonged approval of the 2025 budget.
By: Corlins Walter