Business
Nigeria, Yet To Access $150m Iran Credit – Envoy
Nigeria is yet to access a 150-million-dollar credit facility offered by the Iran Export Development Bank, the country’s ambassador in Iran, Alhaji Cika Abubakar, said last Wednesday in Abuja.
Iran offered the credit facility to Nigeria to enhance trading between the two countries.
Speaking at a seminar on trade opportunities between the Islamic Republic of Iran and Nigeria, Abubakar said that the credit facility was offered at 5 per cent interest rate, adding that it was the least among the credits granted to other countries.
“The Iran Export Development Bank gave 150 million dollars; I was there almost about three years ago when I negotiated with them.
“The first time when they approved that150 million dollars, I was even saying no, if you can give some African countries 100 billion dollars like Senegal, 150 million dollars is too small for Nigeria
“I approached some banks in Nigeria, about eight banks, after receiving their applications. I gave some about 30 to 50 million dollars.
“But to date, since we sent a letter foro-the approval of their applications, we have never received any acknowledgement that they have received the money and that they are ready to utilise it,” he said. The ambassador recalled that the two countries had enjoyed diplomatic relations dating back to some 37 years, and said that Nigerian businessmen had a lot to trade with Iran to help grow the economy.
He noted that Iran had a high level of trading with many countries and that there were areas in which Nigeria should emulate the country.
“The volume of trade between India and Iran is about 15 billion dollars, between Iran and Turkey is almost 13 billion dollars, the trade between Iran and Brazil is two billion dollars and between Iran and South Africa is about two billion dollars; so why less with Nigeria,” he queried.
He said that Iran produced about between 65mw and 70mw of electricity mainly for use by industries.
Abubakar urged the Iranian government to create avenues for Nigerians to benefit from its education, health and engineering sectors to enable Nigerians to benefit in those areas.
In his remarks, Mr Hussein Abdullahi, the Iran ambassador in Nigeria said that there was the need to correct the negative perception of his country.
He said that though Nigeria had had diplomatic relations with Iran for about 37 years, citizens of both countries were yet to tap on potential existing between the two countries.
He noted that both counties were members of some international organisations like the OIC and OPEC among others, adding that there was need for them to explore trade opportunities that would be beneficial to their economies.
He noted that diplomatic relations between the two countries suffered a little setback after some arms were shipped into Lagos by some Iranian suspects.
Abubakar said also that the seminar would “be a regular one between Iran and Nigerian businessmen. We will try to ensure that it takes place annually in capitals of both cities.”
He urged government of both countries to play effective role in ensuring the improvement of their diplomatic relations.
Also, Mr Ignatius Adaji, President, Nigeria-Iran Business Council noted that trade volume between Nigeria and Iran was low.
“Statistics show our export to Iran is in the region of just N75 million, which is ever poor; so they are not trading with us as much as we want to do.
Business
Debt Servicing Hindering Nigeria’s Dev – IMF
The International Monetary Fund (IMF) has opened up on Nigeria’s socio/economic development issues, saying that the country allocates the majority of its revenue to debt servicing, leaving limited funds for critical development projects.
Disclosing this while speaking during the Fiscal Monitor press briefing at the IMF/World Bank Annual Meetings in Washington DC, David Furceri, Division Chief of the IMF’s Fiscal Affairs Department, emphasised the need for Nigeria to adopt more effective revenue mobilisation strategies to ease this financial burden.
Furceri noted that Nigeria’s debt service-to-revenue ratio stands at around 60 per cent, significantly constraining the government’s ability to invest in social and economic programmes.
Although the debt service-to-GDP ratio has declined from nearly 100 per cent to 60 per cent, he stressed that the country must further reduce the share of its revenue allocated to debt repayments by focusing on broadening its tax base.
He said, “There is a need to grow the revenue-to-GDP ratio. For a country Like Nigeria, the Debt Service-to-Revenue is about 60 per cent. What that means is that a larger part of the revenue of the country goes into debt servicing.
“What we recommend for countries like Nigeria, if they can improve their revenue mobilisation, they will be able to reduce the portion of the revenue that goes into debt servicing.
“It is important to broaden the tax base in order to have more revenue and especially in Nigeria to put in place a system and mechanism that is transparent and efficient to assist the government in collecting more revenue”.
He called for the implementation of a transparent and efficient tax collection system, urging the government to improve its fiscal operations to generate more income.
Also, the IMF’s Fiscal Monitor Report released last Thursday highlighted projections that Nigeria’s debt-to-GDP ratio, currently at 50.7 per cent, is expected to drop to 49.6 per cent by 2025.
It noted that the country’s public debt includes overdrafts from the Central Bank of Nigeria and liabilities from the Asset Management Corporation of Nigeria.
“The overdrafts and government deposits at the Central Bank of Nigeria almost cancel each other out, and the Asset Management Corporation of Nigeria debt is roughly halved”, the report noted.
Business
SON To Simplify SMEs Certification Process
The Standards Organisation of Nigeria (SON) has revealed plans to support Small and Medium Enterprises (SMEs) across the country by simplifying access to certification and standards, in line with global best practices.
According to the agency, its initiative at the forefront of this drive is the Mandatory Conformity Assessment Programme, designed to assist local manufacturers in maintaining quality and safety standards, a key requirement for gaining consumer trust and penetrating international markets.
Acting Regional Director for SON in Lagos, Theresa Ojomo, disclosed this during the annual Walk for Standards event held in Lagos to mark World Standards Day.
She stated SON’s role in facilitating the growth of small businesses through programmes tailored to their needs.
“We have brought it down to the very small micro-organisations, encouraging them that they can imbibe standards”, she said.
She noted that businesses operating with minimal infrastructure could ensure quality in their production processes with SON’s support.
Ojomo explained that SON had made the process of adhering to standards more affordable and less burdensome for SMEs.
“We have brought in schemes that are very low in the economy because they always complained that it’s costly to have standards and quality.
“SON conducts only one inspection per year for micro-enterprises to ease the compliance process. The government and SON are ensuring that as small as the unit is, you can imbibe standards”, she remarked.
The Head of Codex, Nutrition and Tobacco Monitoring at SON, Yunusa Mohammed, reiterated that the organisation was committed to ensuring that consumers get value for their money by enforcing quality and safety standards.
“The ultimate aim for developing standards is to ensure quality and safety. Without testing the product to the requirements of the product standard, there is no way you can give that assurance”, he said.
Mohammed noted that SON had invested in state-of-the-art laboratories across the country to further support SMEs by offering testing services that help small businesses certify their products for both local and international markets.
Business
Group Partners Police Against Piracy In Nigeria’s Waterways
Active Marine Surveillance Coast Guard limited, a private security agency, has stated its preparedness to assist the police and other security agencies to check piracy along the nation’s waterways.
Director General of the Security outfit, Commander Godwin Amare, said this during the passing out parade of over 150 members of the Coast Guard in Port Harcourt.
He said apart from checking piracy, Active Marine Surveillance Coast Guard limited also provides security at jetties across the state and check pollution along the waterways, as well as mount security surveillance across the country.
Amare, however, said his security outfit needs the support of the state and federal governments in the discharge of its functions..
He said with government support, the problem of insecurity will be reduced in the states.
Amare also stressed the need for the government to engage the outfit in the provision of security in the state, adding that by doing so, government will also be creating employment opportunities for the people.
According to him, it’s men can also be engaged in the provision of security at strategic locations across the state.
He used the occasion to commend the Deputy Director General of the outfit, Captain Dain Elekima Joyfull, as well as Captain Emberra Michael Niyikpen, and Pastor Anthony Afakwa, for their support.
Speaking, the Rivers State Commissioner of Police, Cp Mustafa Bala, who was represented at the occasion by SP Luka, urged the newly passed out officers of the Civilian joint taskforce and Active Marine Coast Guard limited to be professional in the conduct of their duties.
He also pledged to provide them with the necessary support.
Also speaking, the Rivers State Commandant of the Civilian Joint Taskforce, Commander Richard Akpobari, said his group is prepared to support the security agencies to curb criminalities in the state.
According to him, the situation aims to reduce the burden of providing security in the state.
By: John Bibor
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